ORDINANCE
WHEREAS, The City of Chicago is primarily self-insured, meaning that the City chooses to bear the risk for most liabilities itself rather than take out insurance through an insurance company; and
WHEREAS, In certain instances, however, it is financially sensible for the City to procure commercial insurance. One example is insurance to cover aviation-related activities, in light ofthe heightened risk associated with large-scale airfield and terminal projects and operations at Chicago's airports; and
WHEREAS, The City currently maintains a commercial insurance policy for workers' compensation claims payable from the Chicago Midway Airport Fund and the Chicago O'Hare Airport Fund; and
WHEREAS, An owner-controlled insurance program (OCIP) is a general liability and workers' compensation insurance policy held by a property owner during the construction or renovation of a property, which is typically designed to cover job site risks and protect against liability and loss arising from the construction project; and
WHEREAS, The Comptroller has determined that procuring an OCIP insurance policy for construction and operations at Chicago's airports is in the best interest ofthe City; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. Section 2-32-031 ofthe Municipal Code of Chicago is hereby amended by inserting the text underscored, and by deleting the text struck through, as follows:
2-32-031 Debt management policies; retention of rebate calculation agents, financial advisors, consultants, dissemination agents and qualified independent representatives.
(Omitted text is unaffected by this ordinance)
(g) In connection with the administration of workers' compensation claims payable, per the annual appropriation ordinance^ from the Chicago Midway Airport Fund and the Chicago O'Hare Airport Fund, and as needed to secure insurance agreements entered into by the Comptroller covering construction and operations at O'Hare International Airport and Chicago Midway International Airport, the Chief Financial Officer chief financial officer is authorized to obtain one or more and enter into any such letter letters of credit^ or line lines of credit, or tri-party trust agreements (collectively, for purposes ofthis subsection, "security instruments"), agreement as needed to secure agreements entered into and authorized by the Comptroller, provided Each such letter "of credit or line of credit security instrument, if applicable, shall bear interest at a rate or rates not to exceed seven percent (7%) per annum, and The sum total of all such security instruments shall not exceed an aggregate total of fifty fifteen million ($50,000,000) ($15,000,000) dollars. Terms exceeding these limits shall be approved by the City Council.
SECTION 2. This ordinance shall be in full force and effect following due passage and approval.