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A resolution to approve the First Amendment to the contract for purchase of insurance services approved by RS2021-1086 between The Metropolitan Government of Nashville and Davidson County, acting by and through the Finance Department and Arthur J. Gallagher Risk Management Services, Inc.
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WHEREAS, Metropolitan Code Section 4.40.030 provides that purchases of fire and extended coverage insurance must be approved by Resolution of Council; and,
WHEREAS, The Metropolitan Government of Nashville and Davidson County (“Metro”), acting by and through the Purchasing Division of the Finance Department previously entered into a contract to procure fire and extended coverage insurance services from Arthur J. Gallagher Risk Management Services, Inc., (“Gallagher”) for various insurers to provide insurance coverage for the Metropolitan Government approved by RS2021-1086; and,
WHEREAS, the parties wish to amend this contract by extending the term of the contract, revising the total contract value, removing the requirement to identify the project name, RFQ or Contract number on the ACORD document, and adding language related to the Boycott of Isreal, a copy of which amendment is attached hereto and incorporated herein; and,
WHEREAS, approval of the Contract is in the best interest of the Metropolitan Government.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the First Amendment to the contract between The Metropolitan Government of Nashville and Davidson County and Arthur J. Gallagher Risk Management Services, Inc., is hereby approved.
Section 2. That this Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution amends a contract for property and boiler insurance services from Arthur J. Gallagher Risk Management Services, Inc. originally approved in RS2021-1086. The contract covers property insurance for Metropolitan General Government, Metro Nashville Public Schools, the Metropolitan Transit Authority, Tennessee State Fair Board, Nashville Sports Authority, and the Metropolitan Hospital Authority. The contract additionally covers the boiler insurance program for the Metropolitan General Government, Metro Nashville Public Schools, Metro Transit Authority, Tennessee State Fair Board, and Nashville Sports Authority.
This amendment extends the contract to June 30, 2027, and adds $14,000,000 in value for a revised contract total of $44,000,000. The amendment removes the requirement to identify the project name, RFQ, or contract number within a certificate of insurance. The amendment also updates the pricing exhibit and adds language required by Tenn. Code Ann. § 12-4-119 prohibiting the contractor from engaging in a boycott of Israel for the duration of the contract.
Section 4.40.030 of the Metropolitan Code of Laws allows Council to approve plans for fire and extended coverage insurance by resolution.
Fiscal Note: This amendment increases the estimated contract value of contract 6496312 with Arthur J Gallagher Risk Management Services, Inc. by $14,000,000 for a revised contract amount of $44,000,000 to be paid from Fund 50109, Business Unit 06501000. However, actual expenses may be paid from various departments' funds and cost centers when purchase orders are issued.