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Home My WebLink About063618-R1 - General - Contract - McGriff Insurance Services, LLCCSC No. 63618-R1 CITY OF FORT WORTH CONTRACT RENEWAL NOTICE May 14, 2026 McGriff Insurance Services, LLC Marsh & McLennan Companies, Inc Attn: Johnny Fontenot, Sr Executive Vice President 5080 Spectrum Drive, Suite 900 Addison TX 75001 Re: Contract Renewal Notice Contract No. CSC No. 63618 (the "Contract") Renewal Term No. 1: July 7, 2026 to July 6, 2027 The above referenced Contract with the City of Fort Worth expires on July 6, 2026 (the "Expiration Date"). Pursuant to the Contract, contract renewals are at the sole option of the City. This letter is to inform you that the City is exercising its right to renew the Contract for an additional one (1) year period, which will begin immediately after the Expiration Date. All other terms and conditions of the Contract remain unchanged. Please return this signed acknowledgement letter, along with a copy of your current insurance certificate, to the address set forth below, acknowledging receipt of the Contract Renewal Notice. Failure to provide a signed acknowledgment does not affect the renewal. Please log onto PeopleSoft Purchasing at http://fortworthtexas.Rov/purchasing to insure that your company information is correct and up-to-date. If you have any questions concerning this Contract Renewal Notice, please contact me at the telephone number listed below. Sincerely, Michelle Green Sr Admin Services Manager 817-392-2055 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Contract Renewal Pagel of 2 CSC No. ACCEPTED AND AGREED: CITY OF FORT WORTH BY: Jay Chapa Jun 2, 2026 13:18:28 CDT) Name: Jesus "Jay" Chapa Title: City Manager APPROVAL RECOMMENDED: By: Reginald Zeno (May 28, 2026 10:43:14 CDT) Name: Reginald Zeno Title: Chief Financial Officer ATTEST: nn TORT �0 as° �°o ,, oiyopAo 1 Ovo o=d adapn>BXPSoo- By: Name: Jannette Goodall Title: City Secretary Vendor: Marsh & McLennan Companies, Inc Marsh & McLennan Agency LLC Company ,To h n n 4&, o n�te n o�tBy: Johnny Fontenot 2026 08:39:50 CDT) Name: Johnny Fontenot Title: Sr Executive Vice President CONTRACT COMPLIANCE MANAGER: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. By: Name: Donnette Murphy Title: Property & Casualty Manager APPROVED AS TO FORM AND LEGALITY: By: Name: Title: Gavin Midgley Assistant City Attorney CONTRACT AUTHORIZATION: M&C: 25-0853 Date Approved: 9/16/2025 Form 1295 Certification No. n/a OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Contract Renewal Page 2 of 2 M&C Review Page 1 of 2 A CITY COUNCIL AGEND Create New From This M&C Official site of the City of Fort Worth, Texas FORT WORTI I `14�- REFERENCE **M&C 25- 1414FY2026 DATE: 9/16/2025 NO.: 0853 LOG NAME: COMMERCIAL INSURANCE CODE: G TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (ALL) Authorize Purchase of the City's Multiple -Layered Property Insurance, Boiler and Machinery Insurance, and Commercial Liability Insurance Policies from Marsh & McLennan Agency LLC, Broker of Record, in an Amount Up to $11,123,695.00 and Ratify a Payment of $523,000.00 for Cyber Insurance Coverage RECOMMENDATION: It is recommended that the City Council: 1. Authorize the purchase of the City's multiple -layered property insurance, boiler and machinery insurance, and commercial liability insurance policies from Marsh & McLennan Agency LLC, broker of record, in an amount up to $11,123,695.00 in accordance with the Broker Agreement with Marsh & McLennan Agency LLC, City Secretary Contract No. 63618; and 2. Ratify a payment of $523,000.00 (within the total amount above) made for cyber insurance coverage at a substantial savings. DISCUSSION: Following a Request for Proposals earlier this year, Marsh & McLennan Agency LLC was awarded a contract to become the City of Fort Worth's (City's) new commercial insurance broker of record (City Contract No. 63618). As the broker of record, Marsh & McLennan is authorized to offer consulting and brokerage services that are related to the placement and administration of the following insurance policies: property, boiler and machinery, commercial liability, and other casualty policies as required. Based on a recognized potential increase in costs resulting from the reconfiguration of the current program to accommodate multi -year coverage schemes for the sake of efficiency and long-term cost savings and the potential combination of current insurance policies with overlapping coverages, the aggregate, projected commercial insurance renewal for Fiscal Year (FY) 2026 is estimated to cost an amount up to $11,123,695.00. The rationale and basis in support of this projected cost is the consideration that additional initial premium cost may apply that is subject to overall market conditions as we revisit the procurement of new insurance policies. The planned approach to property insurance and commercial insurance coverages and the fiscal impact are further detailed below. Property Insurance: The City's all-risk commercial property insurance, which covers a wide range of property and liability exposures, is currently provided through a layered structure that involves multiple insurers and employs a reinsurance quota share approach, which is a form of cost sharing, for the current policy coverage year spanning from December 01, 2024 to December 01, 2025. A $500,000,000.00 coverage limit is provided by the multiple -layer structure, with a $10,000,000.00 wind and hail deductible and $250,000.00 deductible for all other occurrences. In Fiscal Year 2025, the original estimated cost of procurement was $8,970,000.00. The actual cost of the Fiscal Year 2025 premium was $6,665,021.26, which was determined by market conditions and negotiation. Anticipating initial costs of a new coverage scheme in Fiscal Year 2026, we seek to duplicate funding up to $8,970,000.00. As we commence this new procurement cycle with the support of Marsh & http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33713&councildate=9/16/2025 9/22/2025 M&C Review Page 2 of 2 McLennan Agency LLC, we anticipate that the costs will be equivalent to or lower than those of previous years. A review of the current coverage scheme in consideration of cost savings and efficiency will necessitate the implementation of novel strategies to enhance the effectiveness of the existing program, which may encompass multi -year coverage options and renewals with new insurance companies. Costs may be affected by the initial first -year premium costs with new insurance underwriters, as we are in the process of revising a new coverage scheme that is further subject to overall market conditions and an expanding property asset portfolio. Commercial General Liability Insurance: The estimated cost of the City's commercial liability insurance policies at the conclusion of Fiscal Year 2024 was $2,153,695.00. However, the actual cost, which was determined by market conditions and negotiation, was $1,398,939.87. Anticipating initial costs of a new coverage scheme in Fiscal Year 2026, based on the aforementioned rationale as it applies to the Property insurance, the same considerations are made for the procurement of commercial general liability insurance. Accordingly, we seek to duplicate funding for the procurement of commercial general liability insurance as well - up to $2,153,695.00. Ratification - Included among the policies and total amounts described above is cyber insurance coverage. The Broker of Record obtained a quote for such coverage for $523,000.00, which was approximately $140,000.00 lower than the second -lowest quote. However, to obtain that pricing, payment had to be remitted in August. In order to take advantage of the substantial savings, staff proceeded with the payment, and approval of this M&C would formally ratify that expenditure. The Human Resources Department is allocated funding from the Risk Financing Fund. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation and adoption of the Fiscal Year 2026 Budget by the City Council, funds will be available in the Fiscal Year 2026 operating budget, as appropriated, in the Risk Financing Fund. Prior to an expenditure being incurred, the Human Resources Department has the responsibility to validate the availability of funds. Fund Department Account Project Program Activity Budget Reference # Amount ID I ID I I I Year I (Chartfield 21 FROM Fund �DepartmentAccount Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: ATTACHMENTS Dianna Giordano (7783) Holly Moyer (7847) 1414FY2026 COMMERCIAL INSURANCE fid table.xlsx (CFW Internal) http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33713&councildate=9/16/2025 9/22/2025 FORT WORTH. City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: McGriff Insurance Services, LLC Subject of the Agreement: 1 st Renewal for the City's Commercial Insurance Broker of Record and to provide related services M&C Approved by the Council? * Yes 0 No ❑ If so, the M&C must be attached to the contract. Is this an Amendment to an Existing contract? Yes ❑ No 0 If so, provide the original contract number and the amendment number. Is the Contract "Permanent"? *Yes ❑ No 0 If unsure, see backpage for permanent contract listing. Is this entire contract Confidential? *Yes ❑ No 0 If only specific information is Confidential, please list what information is Confidential and the page it is located. Effective Date: July 7, 2026 If different from the approval date. Expiration Date: July 6, 2027 If applicable. Is a 1295 Form required? * Yes ❑ No ED *If so, please ensure it is attached to the approving M&C or attached to the contract. Project Number: If applicable. *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes 0 No ❑ Contracts need to be routed for CSO processing in the followingorder: rder: 1. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is required and if the information is not provided, the contract will be returned to the department.