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CSC NO. 1437 / -A l
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, PAYMIINT 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 WHERAOF, the p ies hereof have executed this Amendment of Contract No.
43849 on this the?Wh-day of �Me/ , 248+5. 90/r
CITY OF FORT WORTH:
By: 41
usa. Alanis
Assistant City Manager
Date: (7i'� TFORD
ATTEST:
By:
ary K
City Secre ary
RECOMMENDED FQR APPROVAL:
te.)
By:
t
is erson
Human Resource/ Director
APPROVED AS TO FORM AND LEGALITY:
B
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
MCGRIFF, SEIBELS & WILLIAMS OF
TEXAS, INC.
By:
JtohhnnY Fontenant
Executive Vice President
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 Year 3 $24,000.00
Prevention and Workers' Comp. Loss
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 I $6 000.00
SUBTOTAL - BASE FEE PER CONTRACT YEAR 1 - 3 1 $40,000.00
SUBTOTAL - BASE FEE PER CONTRACT YEAR 4.5 1 $42,500.00
Occupational Safety / Accident
Prevention and Workers' Comp. Loss
Control Services In Excess of 250
Hours Per Contract Year (Max. of 250
Additional Hours)— (Ref. 1.4)
$90.00/hour
Year 1
Year 2
Year 3
Year 4
Year 5
Assist the City in preparing Request for Included in Fee for Year 1
Proposals and evaluating proposals for Insurance Year 2
Workers Compensation and Placement
Occupational Health & Safety Programs Services, unless Year 3
and Services; Other Broker Services outside proposed Year 4
(Ref. 1.5) Scope of Services. Year 5
Value Added Services — Specify: I Zywave / Mywave
TOTAL FEES — NOT TO EXCEED AMOUNT
Amendment and Renewal No. I to CSC No. 43849
Page 4 of 4
$22,500.00
$22,500.00
$22,500.00
$20,000.00
$20,000.00
Included
Included
Included
Included
Included
No Charge
$62,500.00
M&C Review
CITY COUNCIL AGENDA
Page 1 of 2
Official site of the City of Fort Worth, Texas:
FORT WoRTII
COU6` CUL ACTION: : Appirov,- d on 9/18/2012,
DATE: 9/18/2012 REF
cCn
H61CIH 6`\jO.: **Cn25881 LOG F1A[.,7E: 14MCGRIFF2018
CONSENT PUBLICNO
HEARING:
SUBJECT: Authorize I=xecution of an Agreement with McGriff, Seibels & Williams of Texas, Inc., in the
Amount of $62,500.00 for the First Year, for Workers' Compensation I=xcess-Insurance
Broker and Consulting Services (ALL COUNCIL DISTRICTS)
C
TYP
•1 O
RATION :
It is recommended that the City Council authorize the City Manager to execute an Agreement with
IVIcGriff, 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 seer( authorization from the City Council
to enter into a new Agreement with IVICGriff, 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 compote 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:
RID TABULATION:
BROKER SERVICES TO RE PROVIDED
Workers' Compensation Excess Insurance Placement
Services
Workers' Compensation Actuarial Services
Claims Auditing Services
Accident Prevention/Loss Control Services:
First 250 hours included at no additional charge;
250 additional hours at $90.00 per hour.
TOTAL ANNUAL COST
P!OPOSERS
MCGRIFF, SEIBELS i
WILLIAMS OF TFXAS
$24,000.00
$10,000.00
$ 6,000.00
$22, 500.00
$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
claims auditing services and accident prevention and Toss 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 $621500.00
Submitted for City Manager's Office bv: Susan Alanis (8180)
Originating Department Head: Karen Marshall (7783)
Additional Information Contact: Ron Josselet (7766)
ATTACHMENTS
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