The URL can be used to link to this page

Home My WebLink AboutPR 24759: USE OF THE CO-OP OMNIA PARTNERS WITH MCGRIFF AS THE VENDOR TO ACQUIRE PROPERTY AND WINDSTORM INSURANCE FOR THE CITY OF PORT ARTHUR 41) �QXaS www.PortArthurTx.gov INTEROFFICE MEMORANDUM OFFICE OF THE CITY MANAGER Date: January 21,2026 To: The Honorable Mayor and City Council Through: Ron Burton,CPM,City Manager From: Dr.Albert Thigpen,Assistant City Manager-Administration Re: P.R.24759—A Resolution Authorizing the use of the co-op Omnia Partners with McGriff as the vendor to acquire property and windstorm insurance for the City of Port Arthur COMMENT Summary: It is recommended that the City Council of the City of Port Arthur adopt Proposed Resolution No.24759,which authorizes the use of Omnia Partners Co-op,McGriff as the vendor,to acquire property and windstorm insurance for the City of Port Arthur. Background: The City of Port Arthur is a first-tier coastal county under Texas law. This designation reflects the heightened exposure to windstorm-related risks faced by the City's buildings,equipment, and real property. Given these geographic realities,the City has a compelling need to secure reliable and cost-effective property and windstorm insurance coverage. The insurance market has undergone substantial change in recent years, driven by increased storm activity, reduced carrier capacity, and rising premiums. The City of Port Arthur has used a standard Request for Proposal (RFP) process to acquire property and windstorm insurance for several years. However, the evolution of procurement and the insurance industry has enabled the co-op process to obtain insurance.This process is recommended to determine whether it can yield cost reductions amid the ever-rising costs of property and windstorm insurance. Omnia Partners is a nationally recognized cooperative purchasing organization that has competitively solicited and awarded Contract No. 159337 for insurance brokerage and related services. McGriff is an approved vendor under that contract and is qualified to assist the City in procuring property and windstorm insurance.Utilization of this cooperative program imposes no cost on the City and preserves the City Council's authority to approve any final insurance placement. Budgetary: The use of the co-op Omnia Partners and the vendor McGriff is at no cost.Any insurance proposal will be separately presented to the City Council for approval and has been budgeted in the Fiscal Year 2025-2026 budget. Recommendation: It is recommended that the City Council of the City of Port Arthur adopt Proposed Resolution No.24759,which authorizes the use of Omnia Partners Co-op,McGriff as the vendor,to acquire property and windstorm insurance for the City of Port Arthur. Adoption of this resolution positions the City to respond strategically to evolving market conditions while maintaining fiscal oversight and compliance with procurement requirements. "Remember,we are here to serve the Citizens of Port Arthur" 444 461 Street X Port Arthur,Texas 77641-1089 X 409.983.8182 X FAX 409.983.8294 P.R. 24759 01/21/26 AU-TNR RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY OF PORT ARTHUR TO UTILIZE THE OMNIA PARTNERS COOPERATIVE PURCHASING PROGRAM WITH MCGRIFF AS VENDOR FOR THE PROCUREMENT OF PROPERTY AND WINDSTORM INSURANCE FOR THE CITY OF PORT ARTHUR,TEXAS WHEREAS, the City of Port Arthur, Texas, is a home-rule municipality located in Jefferson County, which is designated as a first-tier coastal county under Texas law; and WHEREAS, such designation reflects the elevated risk of windstorm-related damage associated with coastal regions; and WHEREAS, the City of Port Arthur is a full-service municipality providing a broad range of governmental services that require the ownership, operation, and maintenance of buildings, equipment, and real property; and WHEREAS, due to the City's geographic location, these municipal assets are subject not only to ordinary risks but also to heightened exposure to windstorm and storm-related damage; and WHEREAS, the City has a compelling governmental interest in mitigating these risks through the acquisition of comprehensive property and windstorm insurance coverage; and WHEREAS, recent storm activity and market conditions have significantly impacted the insurance industry, resulting in higher premiums, reduced carrier capacity, and evolving placement practices; and WHEREAS, Omnia Partners is a nationally recognized cooperative purchasing organization that has competitively awarded Contract No. 159337 for insurance brokerage and related services, attached hereto as Exhibit"A"; and WHEREAS, McGriff is an approved vendor under said Omnia Partners contract and is qualified to assist the City in procuring property and windstorm insurance attached hereto as Exhibit"B"; and WHEREAS, the City has historically utilized a traditional Request for Proposal process for insurance procurement but desires to evaluate the cooperative purchasing model as a means of achieving potential cost savings and improved market access amid rising insurance costs; and o-_.- ,:-,. _... .;cra.. c .P.^,:nP:cp.ye ."..:war..,nnr.-„m. ., .:tr. .. r. Freqw,- •.;., P.R. 24759 01/21/26 ATT-TNR WHEREAS, participation in Omnia Partners and McGriff carries no cost to the City, and any proposed insurance placement will be separately presented to the City Council for approval and has been budgeted for Fiscal Year 2025-2026. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1.That the facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby authorizes the City of Port Arthur to utilize the Omnia Partners cooperative purchasing program and to engage McGriff as the authorized vendor for purposes of procuring property and windstorm insurance for the City. Section 3. That McGriff shall perform its services in accordance with Omnia Partners Contract No. 159337 and shall use commercially reasonable efforts to secure appropriate property and windstorm insurance coverage for the City of Port Arthur, with coverage to be in place no later than May 1, 2026, subject to final approval by the City Council, as delineated in Exhibit"C". Section 4.That a copy of this Resolution be spread upon the minutes of the City Council. READ, ADOPTED AND APPROVED THIS day of 2026 at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:AYES:(Mayor) Councilmembers: NOES: Hon. Charlotte M. Moses Mayor ATTEST: Sherri Bellard,TRMC City Secretary P.R. 24759 01/21/26 NIT-TNR APPROVED AS TO FORM: —a. Roxann Cotroneo, Esq. City Attorney VED FOR ADMINI TION: aim, <41 ' eke/ Ron Burton,CPM City Manager EXHIBIT "A" 1 OMNIA® JPARTNERS RISK/INSURANCE MANAGEMENT SOLUTIONS Executive Summary Lead Agency: Region 14 Education Service Center Solicitation: RFP 25-S863 RFP Issued: February 4,2025 Pre-Proposal Date: N/A Response Due Date: March 13,2025 Proposals Received:#3 Awarded to: McGriff Contract#159337 and Alvarez&Marsal Contract#159338 Region 14 Education Service Center Department of Procurement issued RFP 25-5863 on February 4, 2025,to establish a national cooperative contract for Risk/Insurance Management Solutions. The solicitation included cooperative purchasing language in Sections I. Introduction and National Contract: It is the intention of Region 14 Education Service Center(herein "Region 14 ESC")to establish a contract for Risk/Insurance Management Solutions for use by Region 14 ESC and other public agencies supported under this contract. National Contract Region 14 ESC, as the Principal Procurement Agency, defined in Appendix B, has partnered with OMNIA Partners, Public Sector, Inc. ("OMNIA Partners")to make the resultant contract(also known as the"Master Agreement"in materials distributed by OMNIA Partners)from this solicitation available to other public agencies nationally, including state and local governmental entities,public and private primary,secondary and higher education entities,non-profit entities, and agencies for the public benefit("Public Agencies"), through OMNIA Partners' cooperative purchasing program. Region 14 ESC is acting as the contracting agency for any other Public Agency that elects to utilize the resulting Master Agreement. Use of the Master Agreement by any Public Agency is preceded by their registration with OMNIA Partners(a "Participating Public Agency")and by using the Master Agreement, any such Participating Public Agency agrees that it is registered with OMNIA Partners, whether pursuant to the terms of a Master Intergovernmental Cooperative Purchasing Agreement, a form of which is attached hereto in Appendix B, or as otherwise agreed to.Appendix B contains additional information about OMNIA Partners and the cooperative purchasing program. Notice of the solicitation was sent to potential offerors,as well as advertised in the following: • Region 14 ESC website • Honolulu Star-Advertiser, HI • OMNIA Partners website • The Herald-News—Will County(IL) • USA Today, nationwide • The Advocate—New Orleans, LA • Arizona Business Gazette,AZ • The New Jersey Herald, NJ • San Bernardino County Sun,CA • Albany Times Union, NY version May 13,2024 • Daily Journal of Commerce,OR • Abilene Reporter,TX or Houston • The State,SC Community Newspapers,TX • Deseret News, UT • Helena Independent Record, MT • Richmond Times-Dispatch,VA • Las Vegas Review-Journal • Seattle Daily Journal of Commerce,WA • Kennebec Journal, ME On March 13,2025 proposals were received from the following offerors: • Acuity Risk Consultants • Alvarez&Marsal Public Sector Services • McGriff The proposals were evaluated by an evaluation committee. Using the evaluation criteria established in the RFP, the committee elected to enter into negotiations with Alvarez& Marsal, McGriff and proceeding with contract award(s) upon successful completion of negotiations. Region 14 ESC,OMNIA Partners and Alvarez&Marsal, McGriff successfully negotiated a contract,and Region 14 ESC executed the agreement with a contract effective date of June 16,2025. Term: Initial three-year agreement from June 16,2025 through June 15,2028 with the option to renew for two (2)additional one-year periods through June 16,2030. Pricing/Discount:See price document under Official Signed Contract and Pricing with each supplier. Version May 13,2024 EXHIBIT "B" Docusign Envelope ID:59781481-4D5C-4DAB-89C7-032584AB77C6 `'147 Region XIV Education Service Center m 1850 Highway 351 \, Abilene, TX79601-47501 `,' 325-675-8600 sEno FAX 325-675-8659 May 20, 2025 Joseph R. Blasi Senior Executive Vice President McGriff,a Marsh & McLennan Agency LLC Company 10100 Katy Freeway, Suite 400 Houston,Texas 77043 Sent via email to:jblasi@mcgriff.com Re: Award of Contract#159337 Risk/Insurance Management Solutions Dear Mr. Blasi: Region 14 Education Service Center is happy to announce that McGriff,a Marsh&McLennan Agency i LLC Company has been awarded Contract#159337 based on the proposal submitted to Region 14 ESC in response to RFP 25-5863 Risk/Insurance Management Solutions. As stated in the RFP,Article VI. Signature Form, this contract award letter is the countersignature to McGriff, a Marsh & iMcLennan Agency LLC Company's response and provides Region 14's acceptance of the response and establishes the contract. The contract is effective June 16, 2025. The contract may be renewed in accordance with the contract terms and conditions. We look forward to a long and successful partnership. 111 If you have any questions or concerns, feel free to contact me at(325) 675-8600. Sincerely, ,—Signed by: Shall Jtfirthi Region 14, Chief Financial Officer Exhibit "C" Will be presented at or prior to the Port Arthur City Council meeting on January 27th, 2026.