Exhibit 1 - Agenda Information Sheet - ExtensionCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: September 30, 2025
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract extension between the City of Denton and Gallagher
Bassett Services, Inc., for one (1) year, to continue third party administration services to manage workers’
compensation claims for employee injuries under the City’s self-funded workers’ compensation program;
and declaring an effective date (File 7553 – extending a contract with Gallagher Bassett Services, Inc., for
a one (1) year term).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful
Leadership.
INFORMATION/BACKGROUND
The City of Denton uses the specialized knowledge, experience, and computer systems of a third-party
administrator (TPA) to handle the City’s self-funded workers’ compensation claims, in accordance with the
Texas Workers’ Compensation Act. Additionally, because the City can, at times, find itself in an adversarial
position with the injured worker if a dispute arises during the adjusting and management of a claim, it is
beneficial for the City to use a TPA to provide a “buffer” between the parties. The TPA provides the direct
and ancillary services needed to properly manage a workers’ compensation claim, including impairment
benefit calculation and payment, medical bill reviews, claim investigations, case management, audits and
payments, appearance at Division of Workers’ Compensation hearings, among other required services
related to workers’ compensation cases.
The City’s Risk Management staff, with the assistance of Lockton Companies, LLC (Lockton), the City’s
property, casualty, and workers’ compensation consultant, is exploring alternate insurance carriers that offer
TPA services. To avoid a potential interruption or duplication of services if a new carrier is selected, a one-
year extension is requested. Upon completion of alternate carrier exploration, if options are not satisfactory,
Risk Management staff will go through the Request for Proposals (RFP) process in January 2026 to procure
a new five (5) year term with the City’s current TPA servicer.
Extending this contract will allow a continuation of workers’ compensation claim management while we
review options for alternate services as the needs of the City change.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 5, 2021, City Council approved a contract with Gallagher Bassett Services, Inc., in the not-to-
exceed amount of $770,000 (Ordinance 20-2559).
RECOMMENDATION
Award a contract extension with Gallagher Bassett Services, Inc., to continue third party administration
services to manage workers’ compensation claims for the employee injuries under the City’s self-funded
workers’ compensation program, in a one (1) year term.
PRINCIPAL PLACE OF BUSINESS
Gallagher Bassett Services, Inc.
Rolling Meadows, IL
ESTIMATED SCHEDULE OF PROJECT
This is a one (1) year extension.
FISCAL INFORMATION
These products and services will be funded through the Risk Management’s Workers’ Comp Administration
budget on an as-needed basis.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Cristin Schnack, 940-349-8374.
Legal point of contact: Marcella Lunn at 940-349-8333.