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Item Number: I.2. CITY COUNCIL REPORT SUBJECT: First Amendment to Professional Services Agreement with Dearborn Life Insurance Company for Employee Life and Disability Insurance Benefits MEETING DATE: May 26, 2026 TO: Mayor and Council FROM: Wendy Jackson, Deputy City Manager/Employee Resources Director REVIEWED: Reyes Medrano, Jr., City Manager PURPOSE: he Employee Resources Department is requesting approval of the First Amendment to the Professional Services Agreement between the City of Tolleson and Dearborn Life Insurance Company for employee life and disability insurance benefits. The Amendment extends the Agreement term through July 1, 2027, and increases the compensation amount to support continuation of services. BACKGROUND: The City entered into a Professional Services Agreement with Dearborn Life Insurance Company on September 26, 2024, for the provision of employee life and disability insurance benefits. The Agreement established terms and conditions for providing insurance coverage to eligible City employees. The First Amendment modifies the Agreement by extending the term through July 1, 2027, and updating the compensation provisions. Dearborn Life Insurance Company has confirmed that renewal rates for the upcoming coverage period will remain unchanged through July 1, 2027. DISCUSSION: The First Amendment revises the Agreement term to continue services through July 1, 2027, unless otherwise terminated pursuant to the Agreement provisions. In addition, the Amendment replaces the compensation section to increase the total compensation amount from $150,000 to an amount not to exceed $225,000 for services provided under the Agreement. The renewal analysis provided by Dearborn Life Insurance Company indicates there will be no changes to the current insurance rates for life, accidental death and dismemberment (AD&D), short-term disability, and long- term disability coverage during the renewal period ending July 1, 2027. This continuation of rates assists the City in maintaining stable employee benefit costs while continuing comprehensive insurance coverage for employees. Approval of this Amendment will ensure uninterrupted employee insurance benefits and continued partnership with Dearborn Life Insurance Company. BUDGET IMPACT: Funding for employee insurance benefits is included in the Employee Resources Department budget. The Amendment establishes a compensation amount not to exceed $225,000 for the term of the Agreement. RECOMMENDATION: Staff recommends approval of the First Amendment to the Professional Services Agreement between the City of Tolleson and Dearborn Life Insurance Company for employee life and disability insurance benefits. ATTACHMENTS: 1. 05 26 26 ER - First Amendment to PSA - Dearborn Life Insurance Company - End Date 07 01 27