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HomeMy WebLinkAboutContract 43849-R2 CSC No. RENEWAL NO.2 TO FORT WORTH CITY SECRETARY CONTRACT NO. 43849 PROFESSIONAL SERVICES AGREEMENT FOR INSURANCE BROKER AND CONSULTING SERVICES This SECOND 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 OF TEXAS, INC., F/K/A 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 (Mayor and Council Communication No. C-25831); and WHEREAS, in 2015,the parties entered into an amendment and renewal (City Secretary Contract No. 43849-A1) to extend the agreement for a first Renewal Term and adopt a revised Attachment A, amending the structure of the fees but not the total annual compensation; and WHEREAS,the current Renewal Term expires on November 30, 2016; and WHEREAS, the City and Broker wish to renew and extend the term of the Contract, as amended,through November 30,2017. 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 Fort Worth City Secretary Contract 43849, as amended, is hereby renewed and extended for a second Renewal Term to expire November 30, 2017, unless terminated earlier in accordance with Section 13 of the Contract. 2. Total compensation during the second Renewal Term shall remain at an amount not to exceed $62,500, with allocation subject to Attachment A,which is attached hereto. 3. All other provisions of Fort Worth City Secretary Contract 43849, as amended, shall remain in full force and effect during the second Renewal Term unless expressly amended herein. Signature Page to Follow IN WITNESS WHEREOF,the parties hereof have executed this Amendment of Contract No. 43849 on this the Z-'X0ay of , 2016. CITY OF FORT WORTH: MCGRIFF, SEIBELS & WILLIAMS OF TEXAS,INC. By: By: 21stant n Alanis Jo nny Fontenot City Manager Executive Vice President Date: << ( -a- Date: 11/08/2016 ATTEST: FOP By: Mays r CitjScretary �© RECOMMEND D F APPROVAL: By: Bri Dickerso uman Resour es Director APPROVED AS TO FORM AND LEGALITY: By: Guille ill) S. Trevino Assistani<ity Attorney CONTRACT AUTHORIZATION: M&C: C-25831 Date: 9-18-2012 Renewal No.2 to CSC No.43849 Page 2 of 3 ATTACHMENT A- 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 Charge TOTAL FEES—NOT TO EXCEED AMOUNT $62,500.00 Renewal No.2 to CSC No.43849 Page 3 of 3 M&C Review Page 1 of 2 Official site of the City of Fort Worth,Texas ITY COUNCIL AGENDA FO ORTH 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 $62,600.00 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 http://apps.cfwnet.org/council_packet/mc_review.asp?ID=17251&councildate=9/18/2012 11/21/2016 M&C Review Page 2 of 2 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 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 http://apps.cfwnet.org/council_packet/mc review.asp?ID=17251&councildate=9/18/2012 11/21/2016