Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: November 14, 2023
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute an agreement for National Flood Insurance Program excess flood
coverage for the City of Denton through the City’s broker of record, Lockton Companies, LLC; and
providing an effective date (File 8408 – awarded to The Hartford of Pittsburgh, PA, in the three (3) year
not-to-exceed amount of $176,954.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful
Leadership.
INFORMATION/BACKGROUND
The City of Denton purchases NFIP policies, which provide excess flood coverage of up to $500,000 for
City-owned properties that lie within a flood zone. The City’s primary property insurance covers flood
damage however, under the primary policy, each loss carries a deductible of $500,000. The NFIP policies
provide excess coverage that would cover up to $500,000 per loss, which buys down the primary deductible
from $500,000 to $1,250.
Given the complexities of this insurance product solicitation and given that Chapter 252.024 of the Texas
Local Government Code allows the City to utilize the services of our insurance broker of record, Lockton
Companies, LLC (Lockton), to assist with competitively procuring this coverage without going through the
Request for Proposal (RFP) process.
The annual renewal premium quoted from the City’s incumbent NFIP flood insurance carrier, THE
HARTFORD, was $30,062 for the 12/16/2023-2024 renewal. Despite four (4) additional city properties
being identified in the flood zone, the new premium represents only a 27% increase over the expiring policy,
which is below the current property market trend of 15%-25%. The coverage terms and conditions for the
renewal remain the same as in the expiring policy and include the addition of four (4) newly identified city
buildings within flood zones.
Policy Term
(Renews 12/31)
Estimated Premium and Estimated 3-year
Expenditure
Policy Term 2023/2024 $41,430
Policy Term 2024/2025 $52,616
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Policy Term 2025/2026 $66,822
Contingency (10% of Total) $16,086
Total $176,954
Due to the uncertainty of changes in flood zone realignments, potential flood losses, and other trends in the
flood insurance market, a conservative increase of 27% year over year was used in the above calculations
to ensure the City has adequate spending authority approved for future policy renewals for the 2024/25 and
2025/26 policy years.
RECOMMENDATION
Approve the purchase of National Flood Insurance Program excess flood coverage (NFIP) for the City of
Denton through the City’s broker of record, Lockton Companies, LLC, in a three (3) year not-to-exceed
amount of $176,954.
PRINCIPAL PLACE OF BUSINESS
Lockton Companies, LLC
Kansas City, MO
ESTIMATED SCHEDULE OF PROJECT
This is a three (3) year contract.
FISCAL INFORMATION
This policy is budgeted and funded from the Risk Retention Fund account 860002.6708. Requisition
#162501 has been entered into the Purchasing software system in the amount of $41,370. The budgeted
amount for this item is $176,954.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing
Exhibit 3: Comparison
Exhibit 4: Recommendation Letter
Exhibit 5: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Tiffany Harris, 940-349-7822.
Legal point of contact: Marcella Lunn at 940-349-8333.