City of Columbus - File #: 0828-2008

• File #: 0828-2008
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 5/6/2008
• In control: Finance & Economic Development Committee
• On agenda: 7/7/2008
• Final action: 7/9/2008
• Title: To authorize the Director of Finance and Management to modify the property insurance and engineering services contract with Arthur J. Gallagher Risk Management Services, Inc. for the third and final one (1) year renewal of the contract commencing on August 1, 2008 and terminating on July 31, 2009, and to authorize the expenditure of $224,088; and to declare an emergency. ($224,088).

Date	Ver.	Action By	Action	Result
7/9/2008	1	CITY CLERK	Attest
7/8/2008	1	MAYOR	Signed
7/7/2008	1	Columbus City Council	Approved	Pass
7/7/2008	1	COUNCIL PRESIDENT	Signed
6/26/2008	1	Auditor Reviewer	Reviewed and Approved
6/26/2008	1	CITY AUDITOR	Reviewed and Approved
6/26/2008	1	Finance Reviewer	Sent for Approval
6/26/2008	1	CITY ATTORNEY	Reviewed and Approved
6/26/2008	1	Finance Reviewer	Sent to Clerk's Office for Council
6/25/2008	1	EBOCO Reviewer	Reviewed and Disapproved
6/25/2008	1	Finance Reviewer	Sent for Approval
6/25/2008	1	EBOCO Reviewer	Reviewed and Approved
6/25/2008	1	ODI DIRECTOR	Reviewed and Approved
6/25/2008	1	Finance Reviewer	Sent for Approval
6/24/2008	1	Finance Reviewer	Sent for Approval
6/23/2008	1	Finance Reviewer	Reviewed and Approved
6/23/2008	1	FINANCE DIRECTOR	Reviewed and Approved
6/23/2008	1	FINANCE DIRECTOR	Reviewed and Approved
6/20/2008	1	Finance Drafter	Sent for Approval
6/20/2008	1	Finance Reviewer	Reviewed and Approved

Explanation

Background: The Department of Human Resources, Employee Benefits / Risk Management, conducted a Request for Proposal (RFP) No. SA001701 in July of 2005 to obtain property insurance and loss control engineering services for select City properties. The City selected Arthur J. Gallagher Risk Management Services, Inc. to administer the property insurance policy, and pursuant to Ordinance No. 1137-2005, passed on 07/27/2005, entered into a contract with Arthur J. Gallagher Risk Management Services, Inc. for a one (1) year term commencing on 08/01/2005 and terminating on 07/31/2006. The contract provides for three (3) additional one (1) year renewal terms subject to annual appropriation of funds by City Council and the written agreement of both parties. The contract also allows for an annual 5% escalator clause.

In October 2007, the Department of Finance and Management Real Estate Management Office (REMO) assumed responsibility for the management of the City's casualty risk insurance. The City's current property coverage list was reviewed and a benchmark was established for determining what City properties should be included under the City's casualty insurance policy. All properties used in City operations supported by General Fund revenues were reviewed and selected for coverage based on the established benchmark. The building value and content value of each selected property was reviewed. A building value formula was applied to the building(s) for each property to establish the insured building value and building content formula was applied to establish the value for content insurance. In evaluating the City's risk exposure it was determined that coverage should be added at select locations to protect against loss of City vehicles stored/parked during evenings and weekends. Stored vehicle coverage was not provided as part of the City's 2007-2008 casualty loss policy. Analysis of the City's 2007-2008 policy indicated that the City's deduct...