Exhibit 1 - Agenda Information Sheet - Amendment 1City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: March 16, 2021
SUBJECT:
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a first amendment to a contract between the City of Denton and Texas Series of
Lockton Companies, LLC, amending the contract approved by City Council on August 4, 2020, in the not-
to-exceed amount of $480,000.00; said first amendment for the cost of additional broker services; providing
for the expenditure of funds therefor; and providing an effective date (File 7365 – providing for an
additional first amendment expenditure amount not-to-exceed $75,000.00, with the total contract amount
not-to-exceed $555,000.00).
INFORMATION/BACKGROUND
A professional services agreement for property and causality insurance brokerage services was awarded to
Lockton on August 4, 2020. As the broker of record for the City, Lockton utilizes its access to markets all
over the world to assist the City with controlling the overall costs of the City’s risks through the
management of the City’s insurance portfolio.
During the original RFP process conducted in May 2020, the DEC was not specified as a property that the
Broker would be responsible for securing insurance coverage. As a result, the RFP response and proposal
submitted by Lockton did not include a proposed fee for the DEC property insurance coverage placement.
This oversight was not discovered until January 2021, when the City began working with Lockton on the
renewal process for the DEC property insurance coverage.
The City’s Risk, Purchasing, and Legal departments worked with Lockton to determine a specific fee to
be paid to Lockton as compensation for the placement of the DEC property insurance renewal for the
2021/2022 policy year.
At this time, the City would like to expand the services provided by Lockton to include brokerage
services for the renewal of the DEC property insurance coverage that expires on May 25, 2020.
This Amendment modifies the original agreement amount to provide an additional $75,000.00 for the
additional services with a revised aggregate not-to-exceed total of $555,000.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS):
On August 4, 2020, City Council approved a contract with Texas Series of Lockton Companies, LLC, in
the not-to-exceed amount of $480,000 (Ordinance 20-1463).
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
RECOMMENDATION
Award Amendment No. 1 with Texas Series of Lockton Companies, LLC, for the cost of additional broker
services, in the not-to-exceed amount $75,000, for a total amended contract amount of $555,000.
PRINCIPAL PLACE OF BUSINESS
Texas Series of Lockton Companies, LLC
Dallas, Texas
ESTIMATED SCHEDULE OF PROJECT
This contract expires August 3, 2023.
FISCAL INFORMATION
These services will be funded by Risk Retention Funds.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: LLC Members
Exhibit 4: LLC Name Change
Exhibit 5: Ordinance and Amendment 1
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Deby Skawinski, 940-349-7810.
Legal point of contact: Marcella Lunn at 940-349-8333.