Explanation
Background: This ordinance authorizes the Director of Finance and Management to amend the existing Contract for Insurance Brokerage And Risk Engineering Services (“Contract”) to reflect USI Insurance Services National Inc. as successor in interest to Wells Fargo Insurance Services USA, Inc., to amend the brokerage fee for the third and fourth renewal terms of the Contract, and to pay all costs associated with insurance premiums and brokerage services for the third renewal term. In addition, this ordinance authorizes the Director of Finance and Management to bind coverage for all City 2018-2019 insurance programs and expend up to $395,000.00 from the Department of Finance and Management 2018 Budget, up to $150,000.00 from the Department of Public Safety 2018 General Fund Budget, and to expend $349,695.51 from the Department of Utilities 2018 Budget for payment of brokerage and policy premiums associated with the City’s insurance programs. Finally, it authorizes the Director of Finance and Management to approve any necessary changes in the City’s insurance programs, such as additions of buildings, aircraft, vehicles, modification of coverage limits, and additions to type or lines of coverage during the 2018-2019 insurance year.
In 2015, the City entered into the Contract For Insurance Brokerage And Risk Engineering Services with Wells Fargo Insurance Services USA, Inc. pursuant to SA 005700, for a five year period, consisting of an initial one-year term and four automatic consecutive one-year terms with each automatic renewal subject to appropriation of necessary funds as authorized by Ordinance No. 0885-2015, passed on 04/22/2015. Wells Fargo Insurance Services USA, Inc. has been purchased by USI Insurance Services National Inc. (“USI”) and USI is the successor in interest to the City’s existing Contract For Insurance Brokerage And Risk Engineering. An amendment to the Contract is necessary to memorialize this change and to adjust the brokerage fee f...
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