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AMENDMENT AND RENEWAL NO. 1 TO
.� FORT WORTH CITY SECRETARY CONTRACT NO. 43849
PROFESSIONAL SERVICES AGREEMENT FOR
INSURANCE BROKER AND CONSULTING SERVICES
This FIRST AMENDMENT AND RENEWAL TO FORT WORTH CITY
SECRETARY CONTRACT NO. 43849 ("Amendment") is made and entered into by and
between the City of Fort Worth (hereafter "City"), a home rule municipal corporation organized
under the laws of the State of Texas, acting by and through its duly authorized Assistant City
Manager, and MCGRIFF, SEIBELS & WILLIAMS OF TEXAS, INC. ( "BROKER"), a
Texas corporation acting by and through its duly authorized Executive Vice President. City and
Broker may be referred to herein individually as a "party" and collectively as the "parties."
WHEREAS, City and Broker have previously entered into a Professional Services
Agreement for Insurance Broker & Consulting Services, the same being Fort Worth City
Secretary Contract No. 43849 ("Contract"); and
WHEREAS, the City Council authorized an initial three (3) year agreement with two (2)
one-year renewal options in Mayor and Council Communication No. C-25831 ("M&C C-
25831"); and
WHEREAS, the Initial Term of the Contract expires on November 30, 2015; and
WHEREAS, the City and Broker now wish to exercise the first renewal option to extend
the term of the Contract through November 30, 2016, and
WHEREAS, the City and Broker wish to amend the Contract to incorporate an updated
Attachment A - Amended Fee Schedule reflecting an increase in actuarial services from
$10,000.00 to $12,500.00 and a decrease in Occupational Safety/Accident Prevention and
Workers' Comp. Loss Control Services from $22,500.00 to $20,000.00.
NOW, THEREFORE, City and Broker, acting herein by and through their duly
authorized representatives, enter into the following agreement to amend and renew the Contract:
1.
The term of the Contract is hereby renewed to extend the term to expire November 30,
2016, Renewal Term No. 1, unless terminated earlier in accordance with the Contract. After this
first renewal, this Contract may be renewed for up to one (1) additional one (1) year period
("Renewal Term") by a mutually signed, written agreement of the parties. This Renewal Term
shall not require an increase of Consultant's Fee under the Contract.
2.
Section 4.1, PAYMENT FOR SERVICES, shall be amended to include Attachment "A,"
Amended Fee Schedule, to this Amendment.
3.
All other provisions of the Contract which are not expressly amended herein shall remain
in full force and effect.
Signature Page to Follow
Amendment and Renewal No. 1 to CSC No.43849
Page 2 of 4
IN WITNESS WHcF, the p ies hereof have executed this Amendment of Contract No.
43849 on this the y of
CITY OF FORT WORTH: MCGRIFF, SEIBELS & WILLIAMS OF
TEXAS, INC.
By: By:
usa Alanis J hnny Fontenant
Assistant City Manager Executive Vice President
Date:
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RECOMMENDED F R A PROVAL:
By:
is erson
Human Resource Director
APPROVED AS TO FORM AND LEGALITY:
By:1011'j
Guillermo (Will) S. Trevino
Assistant City Attorney
CONTRACT AUTHORIZATION:
M&C: C-25831
Date: 9-18-2012
Amendment and Renewal No. 1 to CSC No.43849
Page 3 of 4
ATTACHMENT A-AMENDED FEE SCHEDULE
WORKERS' COMPENSATION BROKER AND CONSULTING SERVICES
Annual Fee—
Contract not to exceed
BROKER SERVICE PROVIDED Fee Structure Year amount
Insurance Placement Services (Ref. 1.1) Flat Fee Year 1 $24,000.00
(Including up to 250 Hours of Year 2 $24,000.00
Occupational Safety/Accident
Prevention and Workers' Comp. Loss Year 3 $24,000.00
Control Services) Year 4 $24,000.00
Year 5 $24,000.00
Actuarial Services (Ref. 1.2) Flat Fee Year 1 $10,000.00
Year 2 $10,000.00
Year 3 $10,000.00
Year 4 $12,500.00
Year 5 $12,500.00
Claims Auditing Services (Ref. 1.3) Flat Fee Year 1 $6,000.00
Year 2 $6,000.00
Year 3 $6,000.00
Year 4 $6,000.00
Year 5 $6,000.00
SUBTOTAL- BASE FEE PER CONTRACT YEAR 1 - 3 $40,000.00
SUBTOTAL- BASE FEE PER CONTRACT YEAR 4 .5 $42,500.00
Occupational Safety/Accident $90.00/hour Year 1 $22,500.00
Prevention and Workers' Comp. Loss Year 2 $22,500.00
Control Services In Excess of 250
Hours Per Contract Year(Max. of 250 Year 3 $22,500.00
Additional Hours)—(Ref. 1.4) Year 4 $20,000.00
Year 5 $20,000.00
Assist the City in preparing Request for Included in Fee for Year 1 Included
Proposals and evaluating proposals for Insurance Year 2 Included
Workers' Compensation and Placement Included
Occupational Health & Safety Programs Services, unless Year 3
and Services; Other Broker Services outside proposed Year 4 Included
(Ref. 1.5) Scope of Services. Year 5 Included
Value Added Services—Specify: Zywave/Mywave No Char e
TOTAL FEES—NOT TO EXCEED AMOUNT $62,500.00
Amendment and Renewal No. 1 to CSC No.43849
Page 4 of 4
M&C Review Page 1 of 2
` Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FonWoRn
�M
COUNCIL ACTION: Approved on 9/18/2012
DATE: 9/18/2012 REFERENCE NO.: **C-25831 LOG NAME: 14MCGRIFF2013
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Execution of an Agreement with McGriff, Seibels &Williams of Texas, Inc., in the
Amount of$62,500.00 for the First Year, for Workers' Compensation Excess-Insurance
Broker and Consulting Services (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an Agreement with
McGriff, Seibels &Williams of Texas, Inc., for workers' compensation excess-insurance broker and
consulting services effective December 1, 2012, with an initial three-year term and two one-year
renewal options, at a cost in the amount of$62,500.00 for the first year.
DISCUSSION:
The purpose of this Mayor and Council Communication is to seek authorization from the City Council
to enter into a new Agreement with McGriff, Seibels &Williams of Texas, Inc. (McGriff), for broker
and consulting services associated with the City's workers' compensation program. In 2007, the City
of Fort Worth entered into its current contract with McGriff to assist the City in workers' compensation
claims audits, actuarial evaluations, RFP preparation and tabulations, providing safety and loss
control services and serving as the City's Broker of Record for excess workers' compensation
insurance coverage as needed. That contract is due to expire November 30, 2012.
Having worked with the same workers' compensation broker/consulant for the last ten years, Staff
determined it would be in the City's best interest to ensure that it was getting the best overall product
and price by going out to the market and giving all broker/consultants the opportunity to compete for
the City's business. Only one proposal response was received from the City's Request for Proposals
(RPF No. 12-0182). See Bid Tabulation below:
BID TABULATION:
PROPOSERS
MCGRIFF, SEIBELS &
BROKER SERVICES TO BE PROVIDED WILLIAMS OF TEXAS
Workers' Compensation Excess Insurance Placement
Services $24,000.00
Workers' Compensation Actuarial Services $10,000.00
Claims Auditing Services $ 6,000.00
Accident Prevention/Loss Control Services:
First 250 hours included at no additional charge;
250 additional hours at$90.00 per hour. $22,500.00
TOTAL ANNUAL COST $62,500.00
Staff recommends the contract be awarded to McGriff, Seibels & Williams of Texas, Inc., to provide
workers' compensation excess insurance placement services, workers' compensation actuarial and
claims auditing services and accident prevention and loss control services for an annual cost in the
amount of$62,500.00.
McGriff has placed the City's workers' compensation excess insurance coverage and has provided
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M&C Review Page 2 of 2
•the City with workers' compensation consulting services for the past ten years. McGriff will service the
City's account from their local office in Dallas.
The City's workers' compensation excess insurance coverage expires on December 31, 2012.
McGriff will obtain competitive bids in the insurance marketplace and will make recommendations to
the City to continue this coverage.
McGriff is in compliance with the City's Minority and Women Business Enterprise (M/WBE) ordinance
by committing to 10 percent M/WBE participation on this project.
AGREEMENT TERMS—The initial term of the broker contract will begin December 1, 2012 and
expire November 30, 2013.
RENEWAL OPTIONS-This Agreement may be renewed for two one-year terms at the City's option.
This action does not require specific City Council approval, provided that the City Council has
appropriated sufficient funds to satisfy obligations during the renewal term.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the Fiscal Year 2013
proposed operating budget, of the Workers' Compensation Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
FE73 539120 0147310 $62,500.00
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Karen Marshall (7783)
Additional Information Contact: Ron Josselet (7766)
ATTACHMENTS
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