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7844 - Declaration of Emergency Executed Vendor: Corvus Insurance Agency, LLC. through Lockton Companies, LLC. Commodity/Service: Cyber network liability insurance coverage renewal Estimated expenditure for the above commodity or service: $ Due immediately: $108,352.95. Two-year not to exceed amount of $271,000 Initial all entries below that apply to the proposed purchase under the Purchasing Procedures as passed by City Council. (More than one entry may apply.) 1. _______ Emergency situations, including procurements necessary to protect the public health or safety or in response to a public calamity; 2. _______ A procurement is necessary because of unforeseen damage to public equipment, machinery, or other property; Brief Description/Justification for Exception: Given the complexities of this insurance product solicitation and given that Chapter 252.024 of the Texas Local Government Code provides that insurance products are exempt from the requirements of competitive bidding, the City utilized the services of our broker of record, Lockton Companies, LLC., to assist with procuring this coverage without going through the Request for Proposal (RFP) process. The cyber insurance market has been hardening at a fast pace and is now firmly in “hard-market” territory as rates surge far ahead of initial expectations, capacity contracts, and resistance among carriers to take on new business prevails. Due to the City’s recent claim for a potential data breach and the dramatic increase in ransomware and other cyber attacks across the nation over the past year, the market took longer to respond with proposals than was expected. The incumbent, Brit/Lloyd’s of London, non-renewed due to a change in appetite. As a result, a new carrier had to be located. Lockton solicited over 50 markets; five carriers considered the solicitation; however, Corvus Insurance Agency, LLC. (Corvus), was the only market that was able to provide a proposal due to the class of business. Staff recommends a three-year award for cyber network liability coverage with Corvus Insurance Agency, LLC. through the City’s broker of record, Lockton Companies, LLC., for a one (1) year amount of $108,352.95 and an estimated two (2) year not-to-exceed amount of $271,000, allowing for a renewal increase of 50% year over year. The 2020-21 cyber network liability coverage expires on September 30, 2021. Due to the urgency to bind coverage to prevent a lapse, coverage for the 2021-22 term year was bound on September 28, 2021, and will go into effect on October 1, 2021. Declaration of an Emergency File #: 7844 Requisition #: Date: September 28, 2021 DocuSign Envelope ID: 322C60E9-1CDD-417C-8C98-3F2F7CEA42F5 X Respectfully Submitted by, Reviewed by: Reviewed By: Deby Skawinski 9/28/2021 Dept. Director Date Purchasing Manager Date City Attorney Date Approved by: __________________________________ City Manager Date This form must be attached to a purchase requisition if the expenditure is under $50,000. This form must be attached to a completed Agenda Information Sheet if the expenditure exceeds $50,000. DocuSign Envelope ID: 322C60E9-1CDD-417C-8C98-3F2F7CEA42F5 10/6/2021 10/6/2021 10/6/2021 Certificate Of Completion Envelope Id: 322C60E91CDD417C8C983F2F7CEA42F5 Status: Completed Subject: Please DocuSign: Cyber Declaration of Emergency form 2021-22 DRAFT.docx Source Envelope: Document Pages: 2 Signatures: 3 Envelope Originator: Certificate Pages: 2 Initials: 0 Gabby Leeper AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-06:00) Central Time (US & Canada) 901B Texas Street Denton, TX 76209 Gabby.Leeper@cityofdenton.com IP Address: 198.49.140.104 Record Tracking Status: Original 10/6/2021 4:13:09 PM Holder: Gabby Leeper Gabby.Leeper@cityofdenton.com Location: DocuSign Signer Events Signature Timestamp Gabby Leeper gabby.leeper@cityofdenton.com Buyer City of Denton Security Level: Email, Account Authentication (None) Completed Using IP Address: 198.49.140.104 Sent: 10/6/2021 4:25:05 PM Viewed: 10/6/2021 4:25:15 PM Signed: 10/6/2021 4:26:47 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lori Hewell Lori.Hewell@cityofdenton.com Purchasing Manager City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.104 Sent: 10/6/2021 4:26:48 PM Viewed: 10/6/2021 5:15:16 PM Signed: 10/6/2021 5:15:26 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Marcella Lunn Marcella.Lunn@cityofdenton.com Catherine Clifton, Interim City Attorney City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 107.77.201.97 Signed using mobile Sent: 10/6/2021 5:15:27 PM Viewed: 10/6/2021 6:50:35 PM Signed: 10/6/2021 6:51:24 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sara Hensley Sara.Hensley@cityofdenton.com Interim City Manager City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 47.184.119.76 Sent: 10/6/2021 6:51:25 PM Viewed: 10/6/2021 7:11:18 PM Signed: 10/6/2021 7:11:28 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 10/6/2021 7:11:29 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/6/2021 4:25:05 PM Certified Delivered Security Checked 10/6/2021 7:11:18 PM Signing Complete Security Checked 10/6/2021 7:11:28 PM Completed Security Checked 10/6/2021 7:11:29 PM Payment Events Status Timestamps