HomeMy WebLinkAboutOrdinance 25921-01-2023 ORDINANCE NO.25921-01-2023
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE RISK MANAGEMENT FUND IN THE AMOUNT OF
$750,000.00, FROM REDUCING FUND BALANCE, FOR THE PURPOSE OF
PURCHASING THE CITY'S MULTIPLE-LAYERED PROPERTY INSURANCE,
BOILER AND MACHINERY AND COMMERCIAL LIABILITY INSURANCE
POLICIES; 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 2022-2023 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$750,000.00,from reducing fund balance,for the purpose of purchasing
the City's Multiple-Layered Property Insurance,Boiler and Machinery and Commercial Liability Insurance
Policies.
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 shall
be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance 25773-09-2022 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 of
said prior ordinances and appropriations are hereby expressly repealed.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
Assistant City Attorney Jannette S. apOR
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ADOPTED AND EFFECTIVE:January 10,2023
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 01/10/23 MSC FILE NUMBER: M&C 23-0010
LOG NAME: 14FY2023 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$8,341,296.00,Adopt Appropriation Ordinance and Amend the Fiscal
Year 2023 Adopted Budget
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Risk Financing Fund in the amount of
$750,000.00,from available net position,for the purpose of purchasing commercial 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$8,341,296.00 in accordance with the
Broker Agreement with Hub International Rigg,City Secretary Contract No.47080;and
3. Amend the Fiscal Year 2023 Adopted Budget.
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,commercial liability insurance and other casualty policies as
needed.
The commercial insurance renewal for Fiscal Year(FY)2023 has a total estimated cost of$8,341,296.00,which is an increase in the estimated
annual amount of$1,691,296.00 across all policies. The increases are a result of unprecedented rate increases in the property insurance market
and,a more complete inventory and appraisal of City properties resulting in increases in the total insured values.
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
$10,000,000.00 wind and hail deductible and a$250,000.00 deductible for all other occurrences.The Fiscal Year 2023 premium cost is
$6,829,625.00.
Commercial General Liability Insurance:The City's commercial liability insurance policies will become due prior to the end of FY2023 at an
estimated cost of$1,511,671.00.
The action in this Mayor and Council Communication (M&C)will amend the Fiscal Year 2023 Adopted Budget as approved in connection with
Ordinance 25773-09-2022, Section 5. Internal Service Funds,as listed on page 22.
Fund/Department
FY2023 Adopted Budget Authority Budget Adjustment Revised FY2023 Budget
Budget Category
Risk Financing Fund
Revenues
Use of Money and Property $398,680.00 $398,680.00
Other Revenue $26,601,495.00 $26,601,495.00
Use of Fund Balance/Net Position $510,520.00 This M&C $750,000.00 $1,260,520.00
Total Revenues $27,510,695.00 $750,000.00 $28,260,695.00
Expenditures
Human Resources $27,506,493.00 $750,000.00 $28,256,493.00
Transfer to IT Refresh Capital $4,202.00 $4,202.00
Total Expenditures $27,510,695.00 $750,000.00 $28,260,695.00
Funding is available for appropriation from net position of the Human Resources Department's Risk Financing Fund. The beginning net position
balance is$34,341,769.79 and after use of net position the balance will be$33,591,769.79.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are available in net position of the Risk Financing 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 Human Resources Department has the responsibility to validate the
availability of funds.
Submitted for City Manager's Office-W. Jesica McEachern 5804
Originating Business Unit Head: Dianna Giordano 7783
Additional Information Contact: Mark Barta 7790
Expedited