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Home My WebLink AboutA017 - Resolution approving contract renewal with Willis Towers Watson for property coverage agreement July 1, 2026 - June 30, 2027ITEM #:18 DATE:06-09-26 DEPT:HR SUBJECT:FY 2026/27 PROPERTY BROKERAGE AGREEMENT COUNCIL ACTION FORM BACKGROUND: The City utilizes the services of a broker to procure property insurance coverage for City facilities. The broker assists with marketing the needed coverages to various underwriters and handling claims. The City's property insurance needs differ across various City properties. The broker assists with obtaining coverage for more typical municipal properties, separate coverage for power production facilities, and coverage for special hazards such as properties susceptible to flooding. On June 25, 2024, the City Council awarded a contract to Willis Towers Watson (WTW) for property insurance brokerage services for FY 2024/25. The contract contained two optional one-year renewals. WTW’s proposal is to provide these services at $57,750 for the second optional renewal period from July 1, 2026 through June 30, 2027. The fee remains the same as the previous fiscal year. The adopted FY 2026/27 City budget contains $61,215 for this service. ALTERNATIVES: 1. Approve a renewal of the property brokerage agreement with WTW in the amount of $57,750 for the period of July 1, 2026, through June 30, 2027. 2. Do not approve the proposed agreement and direct City staff to find alternatives to provide property brokerage services. CITY MANAGER'S RECOMMENDED ACTION: Willis Towers Watson (WTW) has been the City's property insurance broker for many years. The firm provided the best response to the last RFP, conducted in 2024 for these services, and the proposed renewal contains a reasonable fee for the services. WTW continues to provide satisfactory services in finding the best property insurance rates. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above ATTACHMENT(S): WTW 2026 SOW.pdf 1 Page 1 of 5 2026-02-01 Statement of Work – Corporate Risk & Broking Services (Canada & US) 05/08/2026 Bill Walton City of Ames 515 Clark Avenue Ames, IA 50010 Subject: Statement of Work for Corporate Risk & Broking Services Dear Bill: This statement of work (“SOW”) will confirm the terms of the engagement of Willis Towers Watson Midwest, Inc. (“WTW”, “we” or “us”) by City of Ames (“Client” or “you”). I. Terms and Conditions of SOW: Client desires to procure and WTW is willing to provide the services listed in Attachment 1 (the “Services”). These Services will be provided subject to the Willis Towers Watson Brokerage Terms, Conditions & Disclosures available at: https://www.wtwco.com/-/media/WTW/notices/BTCD-CRB-NA-no-general- terms-June-2025.pdf (the “Brokerage Terms”). Copies of the Brokerage Terms are available upon request. II. Term and Termination: The term of this SOW will begin on 07/01/2026 and end on 07/01/2027. Either party may terminate this SOW upon 60 days prior written notice to the other party. III. Compensation You agree that our compensation for the Services will be a fee of $57,750, payable by you to us as invoiced. The fee is in addition to the premium you must pay for your policies. Information regarding other compensation we may receive related to your policies is described in the Brokerage Terms. Information regarding other compensation we may receive related to your policies is described in the Brokerage Terms. If WTW terminates this SOW before the end of the term, WTW will be deemed to have fully earned and be entitled to a pro-rata portion of the fee, calculated from the start of the current annual term through the date of termination. If Client terminates this SOW before the end of any annual term, WTW will be deemed to have fully earned and be entitled to a portion of the fee as set forth in the following schedule: During the first six months of the current annual term: 75% After six months of the current annual term: 100% IV. Additional Terms If you would like us to vary the Services under this SOW, or to perform additional services that are not included, please advise us. Also, if we believe certain services, you have asked us to carry out are not within the defined scope, we will promptly notify you. All out of scope services will be covered under a 2 Page 2 of 5 2026-02-01 Statement of Work – Corporate Risk & Broking Services (Canada & US) separate Statement of Work that will specify the additional services that we will perform and the additional compensation that we will receive. Please have an authorized representative of Client countersign below (and do the same in respect of the enclosed copies, returning a set of countersigned documents to me for our records). [Signature Page Follows] 3 Page 3 of 5 2026-02-01 Statement of Work – Corporate Risk & Broking Services (Canada & US) IN WITNESS WHEREOF, the parties have executed this SOW effective as of the ____ day of _________________, 20__. City of Ames By:____________________________ Willis Towers Watson Midwest, Inc. By:___________________________ Title:___________________________ Title:__________________________ Date:__________ Date:__________ Attachments: Attachment 1 - Scope of Services 4 Page 4 of 5 2026-02-01 Statement of Work – Corporate Risk & Broking Services (Canada & US) Attachment 1 Scope of Services Section 1: Policies/Coverages All Risk Property (Utilities) All Risk Property (Municipalities Excess Flood Coverage Section 2: Account Management Services A. General Services  Negotiate and place all coverages at your direction  Provide ongoing coverage analysis and critique of policy language  Document coverage notes and, when permitted by the insurer, binders and/or policies  Administer premium billings  Conduct premium audits  Administer surplus lines filings  Provide market security updates as available  Issue Certificates of Insurance  Provide general market intelligence B. Contractual Liability Services  Review all contracts as presented by you and advise on insurance requirements relating to such contracts C. Acquisition & Divestiture Services  At your request, we will review acquisition and divestiture agreements in relation to insurance and risk management requirements  Develop summary database of acquisitions & divestitures  Provide coverage analysis for acquisitions  Assist in developing historical Coverage Summaries for acquisitions D. Risk Services – Claim, Risk Control Service and Data Analytics Claim Reporting We will report to the carrier on your behalf the following claim types for which we are the broker of record at the time you report the claim to us: • All Risk Property (Utilities) • All Risk Property (Municipalities • Excess Flood Coverage 5 Page 5 of 5 2026-02-01 Statement of Work – Corporate Risk & Broking Services (Canada & US) This service includes • Confirming receipt of reported claim by carrier • Conducting coverage reviews of all new losses • Reporting losses on all appropriate policies • Reporting claims in accordance with any known reporting guidelines for client • Sending acknowledgment to client confirming new loss report Claim Advocacy We will act as your claim advocate for all claims reported to us under policies we placed for those lines of coverage where we are the current broker of record. This will include • Addressing issues concerning applicable coverage • Advising client on claims process expectations of carrier, policy coverage • Assisting client in determining if incident should be reported • Assisting with the development and maintenance of Special Service Instructions • Reviewing and assisting with coverage issues/rebuttals • Reviewing and assisting with response to reservation of rights • Helping expedite claim handling process • Providing general claims training telephonically • Negotiating reserves/settlements/salvage credits • Analyzing contractual indemnity issues Risk Control Advocacy • Hazard Identification & Risk Analysis • Carrier Compliance • Construction Safety • Risk Improvement • Facility Design • Fire Protection Engineering Claim Strategy reviews Telephonic or onsite reviews to determine appropriateness of claim strategy and course of action retrospectively and prospectively, including preparatory claim selection, organizing appropriate parties and all necessary follow up. Up to one in-person claim reviews will be conducted as part of the brokerage relationship inclusive of travel and expense. Additional reviews can be arranged in consultation with the WTW service team. 6