HomeMy WebLinkAboutOrdinance 25228-12-2021 ORDINANCE NO. 25228-12-2021
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE RISK MANAGEMENT FUND IN THE AMOUNT OF $1,706,710.00,
FROM REDUCING FUND BALANCE, FOR THE PURPOSE OF PURCHASING
COMMERCIAL PROPERTY INSURANCE; PROVIDING FOR A
SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF
PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH;AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2021-2022 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Risk
Management Fund in the amount of$1,706,710.00, from reducing fund balance, for the purpose of purchasing
commercial property insurance.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shallbe and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance 25073-09-2021 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
ofsaid prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY
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J iette S.Goodall(Dec 17,202115 CST)
Assistant City Attorney lannette S. Goodall
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ADOPTED AND EFFECTIVE: December 14,2021
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/14/21 M&C FILE NUMBER: M&C 21-0965
LOG NAME: 14FY2022 COMMERCIAL INSURANCE
SUBJECT
(ALL)Authorize Purchase from Hub International Rigg, Broker of Record of the City's Multiple-Layered Property Insurance, Boiler and Machinery
and Commercial Liability Insurance Policies, in an Amount Not to Exceed$6,650,000.00 and Adopt the Attached Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Risk Management Fund in the amount
of$1,706,710.00,from reducing fund balance,for the purpose of purchasing commercial property insurance.
2. Authorize the purchase of the City's Multiple-Layered Property Insurance, Boiler and Machinery and Commercial Liability Insurance Policies
from Hub International Rigg, Broker of Record,in an amount not to exceed the budgeted amount of$6,650,000.00 in accordance with the
Broker Agreement with Hub International Rigg,City Secretary Contract No.47080.
DISCUSSION:
On June 16,2015,the City Council approved (Mayor and Council Communication(M&C)C-27333)designating Hub International Rigg as the
City's broker of record (Broker).The Broker is authorized to provide consulting and brokerage services associated with the placement and
administration of the following insurance policies: property, boiler and machinery,liability insurance and other casualty policies as needed.
The commercial insurance renewal for Fiscal Year 2022 has a total estimated cost of$6,650,000.00,which is an increase in the estimated annual
amount of$2,659.331.00 across all policies. The increases are a result of unprecedented rate increases in the property insurance market, a more
complete inventory and appraisal of City properties resulting increases in the total insured value.
Property insurance:The City's all-risk commercial property insurance is provided through a layered structure,involving multiple insurers employing
a reinsurance quota share approach,which is a form of cost sharing.The multiple layer structure provides a$500,000,000.00 coverage limit with a
$250,000.00 deductible.The Fiscal Year2022 premium cost is$4,900,101.00.
Commercial general liability insurance:The City's commercial liability insurance policies will become due prior to the end of FY2022 at an
estimated cost of$1,749,899.00.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are available in the fund balance of the Risk Management Services Fund,and upon approval of the
above recommendations and adoption of the attached appropriation ordinance,funds will be available in the current operating budget,as
appropriated,of the Risk Financing Fund. Prior to any expenditure being incurred,the Risk Management Department has the responsibility to
validate the availability of funds.
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Nathan Gregory 7783
Additional Information Contact: Mark Barta 7790
Expedited