Explanation
BACKGROUND: This ordinance authorizes the Public Safety Director to modify and extend a contract with NationAir Insurance for helicopter insurance for six months. The Division of Police advertised to receive bids for insurance for the six MD 500E helicopters on January 14, 2009. These bids were non-responsive. In order to maintain insurance coverage during the new bid process, the Division of Police needs to modify and extend the current contract with NationAir Insurance Agencies, Inc. for hull insurance. This extension is critical in order to protect the City's investment while new bids are reviewed and an award is made to the winning bidder. Extension of the contract term to August 1, 2009 will ensure that the insurance remains effective until new bids are received and reviewed.
Bid Information: A formal bid for helicopter insurance, SA003126 was opened January 14, 2009, and both bids were non-responsive. Therefore, in order to get better pricing, Real Estate Management has processed a Request for Proposal ("RFP") for insurance broker service for the City's Property and Casualty, Boiler and Machinery and Aviation Insurance programs.
Contract Compliance No: 43-1188120 Expires 02/05/2010
Emergency Designation: Emergency legislation is requested so that the contract for insurance can be extended to allow for payment of six additional months of insurance coverage with the current vendor, while the RFP for insurance services are processed and bids are reviewed. Current insurance expired February 8, 2009.
FISCAL IMPACT: This ordinance authorizes an expenditure of $70,751.00 from Law Enforcement Seizure Fund for six additional months of insurance for the Police helicopters. The Police Division spent $170,208.00 in 2006 for insurance, $160,317.00 in 2007 and $170,087.00 in 2008. Unlike previous years, this expense does not impact the General Fund, because funding is from the Law Enforcement Seizure Fund.
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