STRATEGIC PRIORITY: Fiscally Sound
AGENDA DATE: August 27, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Risk Management
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
Authorize (1) the City’s contracted Owner Controlled Insurance Program (OCIP/ROCIP) broker of record, Marsh USA, LLC, to purchase the Kay Bailey Hutchison Convention Center Master Plan Renovation and Expansion Project insurance policies for commercial general and excess liability, workers’ compensation, contractor’s pollution liability, railroad protective liability, owners protective professional indemnity, and builders risk, and other lines of coverage as needed for the period August 27, 2025 to August 27, 2030; and (2) an increase in appropriations in an amount not to exceed $58,760,667 in the CCT 2025 Senior Lien Special Tax Revenue Notes Fund - Not to exceed $58,760,667 ($36,334,542 for OCIP insurance and $22,426,125 for Collateral and Retained Losses) - Financing: CCT 2025 Senior Lien Special Tax Revenue Notes Fund
Body
BACKGROUND
June 24, 2024, the City Manager was authorized to execute a service contract with Marsh USA, LLC, approved to form by the City Attorney for Owner-Controlled Insurance Program (OCIP/ROCIP) broker services. Broker services were to include feasibility analysis, conceptual design, marketing, placement and administration of the OCIP/ROCIP program.
These insurance policies will provide coverage for commercial general and excess liability, workers’ compensation, contractor’s pollution liability, railroad protective liability, owners protective professional indemnity, and builders risk, on behalf of the City of Dallas. These construction project specific policies are written on a term basis that will expire on August 13, 2030.
The insurance policies secured by Marsh USA, LLC will provide the Owner-Controlled Insurance Program covering the City, as project Owner-Sponsor, Kay Bailey Hutchison Convention Center Master Plan Renovation and Expansion Project (KBHCCD), the CMARs and their enrolled contractors and subcontractors at all tiers for the course of construction, for the following types of coverage:
• Commercial General and Excess Liability - coverage for bodily injury, personal injury and property damage to third parties when caused by construction project activities.
• Workers’ Compensation and Employer’s Liability - statutorily required coverage for workplace (construction project site), injuries, accidents, illness, or disease to employees of enrolled contractors and subcontractors at all tiers.
• Contractor’s Pollution Liability - environmental pollution coverage for clean-up costs and bodily injury and property-damage to third parties arising from a new pollution release or exacerbation of existing pollution conditions, when caused by construction activities.
• Railroad Protective Liability - coverage required in the City’s rail agreements with UP and Dart for accidents involving trains, railcars, or other railroad equipment and bodily injury and property damage to employees and other third parties.
• Builders Risk - coverage for direct physical loss or damage to the project during the course of construction, including equipment, building materials and supplies while in transit, stored at project sites, awaiting installation or being installed, business interruption, extra expense, delayed start up, terrorism, and debris removal.
• Owner’s Protective Professional Indemnity - indemnity policy covering the City of Dallas only for excess design liability above project-specific professional liability and design professionals’ practice policies.
The City's construction value for Component 1 of the project is approximately $3.3 - $3.5 billion. All coverage will be provided at guaranteed rates negotiated for the commercial insurance policies allowing the City to “roll-in” other KBHCCD Components as vertical construction starts.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The City Council was briefed on the “OCIP/ROCIP program” on April 19, 2023.
On April 24, 2024, the City Council authorized a service contract with Marsh USA, LLC, for owner-controlled insurance program (OCIP/ROCIP) broker of record and administration services by Resolution No. 24-0605.
The City Council was briefed by memorandum regarding this matter on August 22, 2025. <https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdallascityhall.com%2Fgovernment%2Fcitymanager%2FDocuments%2FFY24-25%2520Memos%2FUpcoming%2520Agenda%2520Item%2520OCIP.pdf&data=05%7C02%7Cvhee.anastacio%40dallas.gov%7Cb223f537213546cac70608dde1beacdf%7C2935709ec10c4809a302852d369f8700%7C0%7C0%7C638914931230672742%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=gFlsa1kG5qQts3LpXun5qfesGAKBSMm1r88%2F%2BJaRe2o%3D&reserved=0>
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
CCT 2025 Senior Lien Special Tax Revenue Notes Fund |
$35,901,002.00 |
$2,959,048.00 |
$19,900,617.00 |
*Note: Premium. Collateral and Retained losses are subject to final audit.
OWNER/EXECUTIVE
Marsh USA, LLC
Martin South, President and Chief Executive Officer