TITLE
AN ORDINANCE AUTHORIZING SUPPLEMENTAL APPROPRIATIONS; WAIVING SECOND READING - General Fund for Finance Contract Services
BODY
WHEREAS, the City transitioned its property and liability insurance coverage from Ohio Municipal Joint Self-Insured Pool (OMJSP) to the Central Ohio Risk Management Association (CORMA) pool in 2023; and
WHEREAS, on March 13, 2024, the City received notification that OMJSP is terminating operations effective April 1, 2024; and
WHEREAS, to protect OMJSP’s current and past members for known open and unknown potential claim liabilities, the pool has elected to purchase a unique reinsurance policy to transfer its liability losses to Great American Insurance Company; and
WHEREAS, the OMJSP’s assets are insufficient to cover 100 percent of the reinsurance policy cost of $2.2 million; and
WHEREAS, per the OMJSP’s participating agreement dealing with cessation activities, the City is now assessed $197,255 based on the amount of the City’s insured exposures, total losses incurred, and the length of time the City was a member of the pool; and
WHEREAS, the administration requests waiver of second reading in order to pay the invoice now due.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GAHANNA, COUNTY OF FRANKLIN, STATE OF OHIO:
Section 1. That funding in the amount of one hundred ninety-seven thousand two hundred fifty-five dollars ($197,255) is hereby supplementally appropriated from the unappropriated, unencumbered balance of the General Fund as follows:
101.06.250.5205 - Finance Contract Services: $197,255
Section 2. That the second reading is hereby waived.
Section 3. That this Ordinance shall be in full force and effect after passage by Council and on date of signature of approval by the Mayor.