SR-101-003-02 (2)
Council Meeting: April 12, 2005 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Contract Amendment with Valley Oak Systems, Inc. for an
Upgraded Risk Management Information System
Introduction
This report recommends that the City Council authorize the City Manager to
negotiate and execute an amendment to Agreement 7482 (CCS) with Valley Oak
Systems, Inc. to upgrade the City’s risk management information software
system for amounts not to exceed $30,000 for software license fees and
$160,000 for extended maintenance fees for a period of five years. In total, the
cost of the amendment will not exceed $190,000 for a five-year period.
Background
In April 1999, the City Council approved the purchase of a liability software
application system to provide critical claims processing, financial analysis, safety
and budgeting information for the City’s self-insurance programs. In November
2000 the City Council approved the purchase of additional software modules in
order for City staff to administer workers’ compensation benefits and meet all
regulatory and financial record keeping requirements.
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The proposed second modification will enable the City to upgrade the risk
management information system to a browser-based product, increasing
functionality and system efficiency and reducing internal support requirements.
The cost for the software license will be a one-time increase of $30,000. In
addition, software maintenance will be $28,547 for the first year. Thereafter, the
maintenance cost will increase by a maximum of five percent annually over a
period of four years. Software maintenance fees are based on the browser-based
product, coupled with the number of user licenses issued, modules being used
and system interfaces.
Budget/Financial Impact
Funds totaling $30,000 for software license fees and $28,547 for the first year
software maintenance fees are to be charged to the following accounts:
59235.522090 (miscellaneous costs): $29,500,
56232.522090 (miscellaneous costs): $12,500,
57233.522090 (miscellaneous costs): $12,500,
58234.522090 (miscellaneous costs): $4,047.
The annual maintenance fee costs will be included in future year budgets. The
total costs for the five-year period will not exceed $160,000.
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Recommendation
It is recommended that the City Council authorize the City Manager to negotiate
and execute a contract amendment with Valley Oak Systems, Inc. in amounts not
to exceed $30,000 for software license fees and $160,000 for extended software
maintenance fees for a period of five years.
Prepared by: Tom Phillips, Risk Manager
Jory Wolf, Chief Information Officer
Reference Contract No. 7482 (CCS).
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