SR 03-22-2016 3Q
City Council
Report
City Council Meeting: March 22, 2016
Agenda Item: 3.Q
To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management
Administration
Subject: Claims Management Software System
Recommended Action
Staff recommends that the City Council:
1) Award RFP# 36 to Origami Risk, Inc., an Illinois-based company, for a claims
2) Authorize the City Manager to negotiate and execute an Agreement with Origami
Risk, Inc., in an amount not to exceed $591,353 over a five-year period with
future funding contingent on Council budget approval; and
3) Authorize budget changes as outlined in the Financial Impacts & Budget Actions
section of this report.
Executive Summary
Finance Department is responsible for the
. In June 2015, staff solicited proposals
from software companies for a new claims management software system to support the
from five software firms, three of which were invited to provide on-site demonstrations of
As a result of this effort, staff recommends the City pursue
a five-year agreement with Origami Risk, Inc. (Origami) at a total cost of $591,353.
The agreement will be
funded by -Insurance Funds, which are financed with contributions from
all City Departments.
Background
The Risk Management Division of the Finance Department is responsible for managing
-Insurance Programs. Integral to this effort is a high functioning
VOS claims management
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(Attachment A), describes the CitApproximately two years
ago, however, Ventiv announced plans to introduce a new claims management system
and discontinue support of IVOS. This prompted staff to begin preparations for
purchasing a new claims management software system.
Discussion
Prior to releasing a Request for Proposal (RFP) for a new software system, staff
formally solicited information from software firms on the capabilities of current state-of-
the-art claims systems. A total of nine firms responded to the Request for Information
(RFI), of which five were invited to provide on-
capabilities. The information gained from this process was then used to prepare an
RFP for a new claims management system. The results of this process are detailed
below.
Origami provides the service through a cloud-based software subscription (rather than
selling a software license) and no new equipment will be necessary. Staff estimates it
will take six to nine months from agreement execution to implement the new system.
Once this occurs, the City will discontinue its agreement with Ventiv Technology.
Vendor/Consultant Selection
On June 15, 2015, the City issued an RFP for a claims management system. The RFP
Santa
Monica Daily Press in accordance with City Charter and Municipal Code provisions. A
total of 679 vendors were notified of the RFP; 15 downloaded the RFP; and five firms
responded.
Responses to the RFP were reviewed by a selection panel composed of staff from the
Finance, Information Systems, and Human Resources Departments. After an initial
review, the selection panel narrowed the field to three firms and invited each to provide
an in-depth, on-site demonstration of its
ties and ease of use. The firm also received high
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praise from existing users (staff conducted on-site visits to obtain feedback on system
pricing was the least costly of the top three firms interviewed.
Consequently, the selection panel recommended the City pursue a five-year agreement
with Origami in an amount not to exceed $591,353. This figure includes system
conversion costs and ongoing software subscription, system maintenance, and file
storage costs.
Financial Impacts and Budget Actions
FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Total
Installation 75,000 75,000 - - - 150,000
Ongoing Costs* - 102,680 102,680 105,854 109,139 420,353
Contingency** - - 7,000 7,000 7,000 21,000
$75,000 $177,680 $109,680 $112,854 $116,139 $591,353
Total
* Subscription, system maintenance, file storage costs
** For custom programming or additional file storage needs that may arise
The -
Compensation, and the remaining 50% split evenly between General Liability/Auto and
Transit.
To fund the first two years of the Agreement (FYs 2015-16 and 2016-17), staff is
requesting that funds of $250,000 previously budgeted in the CIP for this project be
moved to the operating budget for subscription payments as follows:
TOTAL
Account FY 15-16 Amt. FY 16-17 Amt.
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C569119.589000 ($62,500) n/a
C579119.589000 ($62,500) n/a
C599119.589000 ($125,000) n/a
($250,000) n/a ($250,000)
Remove from CIP
56232.533580 $18,750 43,750
57233.533580 $18,750 43,750
59235.533580 $37,500 87,500
$ 75,000 $ 175,000 $250,000
Add to Operating
($175,000) $175,000 $-0-
Net
Following the transfer above, adequate funding will be available in each of the Self
Insurance Funds operating budgets to finance the FY 2015-16 and FY 2016-17 contract
2017-19 Biennial Budget. Future year funding is dependent on Council budget
approval.
Prepared By:
David Bomberger, Workers' Compensation Administrator
Approved Forwarded to Council
Attachments:
A. May 27, 2015 Staff Report (Web link)
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Reference:
AgreementNo.
10275
(CCS)