SR-6-G (82)
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APR 2 7 1999
CMO RISK MGMT TP CT F \WP51\DOCUMENT\TP\RMIS
Council Meeting April 27, 1999 Santa MOnica, California
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Authorize the CIty Manager to Negotiate and Execute
a Contract with Valley Oak Systems, Inc to Purchase and Install a Risk
Management InformatIon System
INTRODUCTION
This report recommends that the City CouncIl authorize the City Manager to negotIate
and execute an agreement wIth Valley Oak Systems, Inc for the purchase and
Installation of a risk management Information system for the Risk Management DIvIsion
of the City Manager's Office In the total amount of $114,40000
BACKGROUND
The Risk Management DIvIsion's eXIsting liability software applicatIon system was
purchased In 1992 to prOVide critical claims processing, financial analYSIS, safety
analYSIS and budgeting for the City's self-Insurance programs The CIty'S workers'
compensation self-Insurance program IS currently supported by a customized legacy
program developed In the mid 19ao's Neither of these software applicatIons are year
2000 compliant and both employ outdated technologIes
A Request for Proposal to replace these systems WIth a Single Integrated system was
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prepared and sent to 12 vendors, 7 responses were received A selectIon committee of
Risk Management and Information Systems DIvISion staff and a software consulting
firm reviewed the proposals The evaluation was based upon specific cntena which
Included year 2000 compliance, general system reqUirements, functionality
requirements, reporting tool and system costs.
The selection committee recommended Valley Oak Systems, Inc to provide an
mtegrated system cntlcal to meeting eXlstmg and future needs of the Risk Management
DIvIsion
BUDGET/FINANCIAllMPACT
The total cost of the system IS $114,400 00 Fiscal year 1998-99 appropnatlOn authonty
of $76,000 00 IS available In the Capital Improvement Budget, account number
55-710-223-20099-8900-99003 An additional appropnatlon of $38,400 00 to the
Capital Improvement Project budget from the Workers' Compensation Fund operating
budget IS reqUired To effect thiS change, the follOWing technical budget adjustments
must be made
. Decrease account 59-700-235-00000-2201-00000 (Payment of Claims) by
$38,400 00
. Increase account 59-710-223-20099-8900-99003 (Computer Equipment
Replacement) by $38,400 00
. Increase account 55-710-223-20099-8900-99003 (Computer Equipment
Replacement) by $38,400 00
. Increase revenue account 55-110-223-00000-0594-10000 by $38,400 00
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RECOMMENDATION
It IS recommended that the CIty Council authorize the CIty Manager to negotIate and
execute an agreement In the amount of $114,40000 with Valley Oaks Systems, Inc for
the purchase and installation of a risk management mformatlon system
Prepared by Tom Phillips, Risk Manager
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