Exhibit 1 - Agenda Information Sheet - Amendment 2City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: January 4, 2022
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a second 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; amended by Amendment 1 approved by the City Council; said
second amendment for brokerage services for the placement of the DEC property coverage renewal for the
2021/2022 policy year and the 2022/2023 policy year; providing for the expenditure of funds therefor; and
providing an effective date (File 7365 – providing for an additional second amendment expenditure amount
not-to-exceed $152,250.00, with the total contract amount not-to-exceed $707,250.00).
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 (7365) process conducted in May 2020, the Denton Energy Center (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 only.
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 for the 2021/2022 and 2022/2023 policy years to
coincide with the expiration of the original contract with Lockton that expires on August 4, 2023.
This Second Amendment modifies the original agreement amount to provide an additional $152,250.00
($75,000.00 and $77,250.00 for the 2021/2022 and 2022/2023 renewal fees, respectively, allowing for a
3% increase) for the additional services with a revised aggregate not-to-exceed total of $707,250.00.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
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).
On March 16, 2021, City Council approved Amendment No. 1 with Texas Series of Lockton Companies,
LLC, in the not-to-exceed amount of $75,000 (Ordinance 21-426).
RECOMMENDATION
Award Amendment No. 2 with Texas Series of Lockton Companies, LLC, for brokerage services for the
placement of the DEC property coverage renewal for the 2021/2022 policy year and the 2022/2023 policy
year, in a not-to-exceed amount of $152,250, for a total amended contract amount of $707,250.
PRINCIPAL PLACE OF BUSINESS
Texas Series of Lockton Companies, LLC
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
This contract expires on August 4, 2023.
FISCAL INFORMATION
These services will be funded by the Risk Retention Fund.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Ordinance and Amendment 1
Exhibit 4: LLC Members
Exhibit 5: Ordinance and Amendment 2
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.