Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: March 19, 2024
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
ratifying the expenditure of funds by the City Manager for the emergency purchase of Emergency Medical
Services/Emergency Medical Technicians Professional Liability insurance coverage for the City of Denton,
through the City’s sole broker of record, Lockton Companies, LLC; and providing an effective date (File
8467 – awarded to Admiral Insurance Company, in the three (3) year not-to-exceed amount of
$112,155.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful
Leadership.
INFORMATION/BACKGROUND
The City of Denton purchases Emergency Medical Services (EMS) / Emergency Medical Technicians
(EMT) Professional Liability protection for the operation of the City’s ambulance service and the activities
of the City’s EMT. This policy covers potential liability due to the provision of professional ambulance
services by the EMTs and paramedics in the Fire Department. In addition to coverage for the typical liability
exposures associated with emergency medical care, this type of insurance also offers coverage for sexual
abuse and breaches of provisions of the Health Insurance Portability and Accountability Act (HIPAA). The
City’s current policy will expire on February 11, 2024.
Given the complexities of this insurance product solicitation as described in greater detail below, and given
that Chapter 252.024 of the Texas Local Government Code provides that the City can utilize the services
of a broker of record, the City elected to have our broker, Lockton, to assist with competitively procuring
this coverage.
State of the Market:
The Miscellaneous Medical industry aspect of ambulance services has become an extremely hard market
over the past year, resulting in renewals in the sphere of ambulance services going up significantly. The
incumbent, Admiral Insurance Company (Admiral), has presented a favorable renewal premium reflecting
a 14% increase from last year.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Policy Period Annual Premium
24/25 $32,298
25/26 37,143 This estimated premium includes the 15% YOY increase
25/26 42,714 This estimated premium includes the 15% YOY increase
Total Contract $112,155
Lockton worked alongside a wholesaler (CRC Insurance Services) to obtain renewal terms this year. CRC
approached 4 insurance carriers for renewal terms, including Admiral (incumbent), RSUI, CapSpecialty,
and TDC. Admiral was able to offer renewal terms directly in line with the expiring policy that includes a
$10,000 self-insured retention. The three other markets were unable to offer this deductible structure, and
the premium is substantially higher than Admiral.
In addition, the expiration date of this policy will be moved to 12/31/2024, in order to align with the City’s
other casualty policies.
To prevent a lapse in coverage, EMS/EMT Professional liability coverage renewals for the 2024/2025
coverage year must be bound by February 09, 2024, by Admiral Insurance, through the City’s broker of
record, Lockton, in the amount of $112,155.
Staff recommends the approval of expenditures for the purchase of EMT Professional liability coverage in
a one (1) year amount of $32,298, for an estimated three (3) year not-to-exceed amount of $112,155
including funding to accommodate a year-over-year price increase of 15% per year.
RECOMMENDATION
Award a contract with Admiral Insurance Company, for the emergency purchase of Emergency Medical
Services/Emergency Medical Technicians Professional Liability insurance coverage for the City of Denton
through the City’s broker of record, Texas Series of Lockton Companies, LLC, in a three (3) year not-to-
exceed amount of $112,155.
PRINCIPAL PLACE OF BUSINESS
Lockton Companies, LLC
Kansas City, MO
ESTIMATED SCHEDULE OF PROJECT
This is a three (3) year contract.
FISCAL INFORMATION
These services will be funded from Risk Retention Fund 860002.6709. Requisition #163850 has been
entered into the Purchasing software system in the amount of $32,298. The budgeted amount for this item
is $112,155.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Declaration of Emergency
Exhibit 3: Recommendation Letter
Exhibit 4: Comparison Summary
Exhibit 5: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Megan Gilbreath, 940-349-8357.
Legal point of contact: Marcella Lunn at 940-349-8333.