SR 04-27-2021 3A
City Council Report
City Council Meeting: April 27, 2021
Agenda Item: 3.A
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management
Subject: Approval of Third Modification to Agreement with Origami Risk, Inc. for
Claims Management Software Subscription Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a third modification to agreement #10275 for an additional three years in the
amount of $362,400 with Origami Risk, Inc., an Illinois-based company, for claims
management software subscription services for the Finance Department. This will result
in an eight-year amended agreement with a new total amount not to exceed $953,753,
with future year funding contingent on Council budget approval.
Summary
In 2016, the City purchased an automated claims management system from Origami Risk, Inc.
(Origami). The system is necessary for staff to track, manage, and report on the City’s liability
and workers’ compensation claims in compliance with various laws and regulations. The
current agreement with Origami that includes an ongoing software subscription and
maintenance and support services is set to expire in May 2021. To continue using the existing
claims management system and receive critical technical support, a modification to extend the
term of the agreement by an additional three years is required. This third modification would
increase the contract by $362,400 resulting in an 8-year amended agreement in an amount not
to exceed $953,753. Origami is the only vendor qualified to provide support for its proprietary
claims management software system. As such, staff seeks authority to proceed with the
modification on a sole source basis under the exception to the competitive process set out in
Santa Monica Municipal Code Section 2.24.250 (b).
Discussion
The Finance Department oversees the City’s two Self-Insurance Programs. The Liability
Program provides funding to investigate, defend and pay all damages for general, auto and
transit liability claims, and lawsuits filed against the City. The Workers’ Compensation Program
funds all expenses associated with employee work-related injuries, including medical care and
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indemnity payments. Risk Management staff is responsible for processing all liability claims and
most workers’ compensation claims. Staff utilize a claims management system for routine tasks
such as issuing payments, tracking claim activity, updating reserves, and generating notices.
The system is also used to provide required workers’ compensation reporting to the California
Department of Industrial Relations and the Centers for Medicare and Medicaid Services. In
addition, a claims system generates data to track the overall financial and operational
performance of the Self-Insurance Programs.
On March 22, 2016 (Attachment A), Council approved an agreement with Origami for claims
management software subscription services after staff completed an extensive RFP process.
The implementation of the Origami claims management system was completed in January
2017. Since then, it has been a highly functioning and easy-to-use system, with several unique
features that have enabled staff to efficiently administer claims. The most valuable feature is
the portal for employees to submit injury reports online, which allows workers’ compensation
claims to be set-up faster, which in turn, has sped up authorization of initial medical care,
commencement of the investigation process, issuance of benefit payments, and return of injured
employees to work. The Origami system has other robust capabilities, such as automated
reporting, system generated emails, and integration with other systems. Lastly, the customer
service from Origami has been dependable.
The first and second modifications to the original agreement were executed in March 2018 and
July 2019, respectively. These modifications included additional system features and did not
require Council approval, as they did not impact the agreement’s previously authorized total
cost of $591,353.
The current agreement with Origami expires this May. A modification extending the agreement
is necessary to continue to receive regular system updates and support services. The Origami
software is a proprietary product and only Origami can provide these services for its software.
Engaging a new software maintenance and support company would necessitate purchasing a
new claims management system, which would be much more costly than maintaining the
current system and would involve significant disruption to Risk Management’s operations.
Past Council Actions
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Meeting Date Description
March 22, 2016
(attachment A)
Authorize agreement with Origami Risk, Inc. following RFP process
Financial Impacts and Budget Actions
The annual cost for each year under the proposed modification is $120,800, a four percent
increase from the last year of the original agreement. The agreement will continue to be funded
by the City’s Self-Insurance Funds, which are financed with contributions from all City
Departments. Staff seeks authority to approve funding from the General Liability/Auto, Transit,
and Workers’ Compensation Funds to increase the amount of the agreement with Origami Risk,
Inc. for claims management software subscription services. Funds are available in the adopted
FY 2020-21 budget. Future year funding is contingent on Council budget approval.
Contract Modification Request
Agreement # Current Authorized
Amount
Modified
Request Amount Dept Account # Total Revised
Contract Amount
10275 $147,838 $90,600 72800002.529230 $238,438
10275 $147,838 $90,600 73800002.529230 $238,438
10275 $295,677 $181,200 74800002.529230 $476,877
Total $953,753
Prepared By: Oles Gordeev, Risk Manager
Approved
Forwarded to Council
Attachments:
A. 3.22.2016 Staff Report
B. Origami Oaks Initiatve Form
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City Council Report
City Council Meeting: March 22, 2016
Agenda Item: 3.Q
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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
management software subscription service to support the City’s Liability and
Workers’ Compensation Programs; 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
The City’s Finance Department is responsible for the internal management of the City’s
Liability and Workers’ Compensation Programs. In June 2015, staff solicited proposals from software companies for a new claims management software system to support the
City’s Liability and Workers’ Compensation Programs. This process yielded proposals
from five software firms, three of which were invited to provide on-site demonstrations of
their software’s capabilities. 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.
Origami’s software offers the greatest functionality, is competitively priced, and comes
highly recommended by the firm’s existing customer base. The agreement will be
funded by the City’s Self-Insurance Funds, which are financed with contributions from
all City Departments.
Background
The Risk Management Division of the Finance Department is responsible for managing
the City’s Self-Insurance Programs. Integral to this effort is a high functioning
automated claims system that supports staff’s efforts to efficiently track, manage, and
report on the City’s liability and workers’ compensation claims. For nearly two decades,
Risk Management has used Ventiv Technology’s (Ventiv) IVOS claims management
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Packet Pg. 18 Attachment: 3.22.2016 Staff Report (4510 : Approval of Third Modification to Agreement with Origami Risk, Inc)
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software for this purpose. Staff’s most recent report to Council, on May 27, 2015
(Attachment A), describes the City’s history with this software. Approximately 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-site demonstrations of their system’s
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
was posted on the City’s online bidding site, and notices were advertised in the 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 system’s capabilities. Origami’s proposal rose
to the top due to its software’s capabilities and ease of use. The firm also received high
3.A.a
Packet Pg. 19 Attachment: 3.22.2016 Staff Report (4510 : Approval of Third Modification to Agreement with Origami Risk, Inc)
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praise from existing users (staff conducted on-site visits to obtain feedback on system
performance and Origami’s responsiveness to service requests). Finally, Origami’s
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
The chart below summarizes the agreement’s cost by fiscal year:
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
Total $75,000 $177,680 $109,680 $112,854 $116,139 $591,353
* Subscription, system maintenance, file storage costs
** For custom programming or additional file storage needs that may arise
The General Liability/Auto (56), Transit (57), and Workers’ Compensation (59) Self-
Insurance Funds will share the costs for the agreement, with 50% covered by Workers’
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:
Account FY 15-16 Amt. FY 16-17 Amt. TOTAL
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Packet Pg. 20 Attachment: 3.22.2016 Staff Report (4510 : Approval of Third Modification to Agreement with Origami Risk, Inc)
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C569119.589000 ($62,500) n/a
C579119.589000 ($62,500) n/a
C599119.589000 ($125,000) n/a
Remove from CIP ($250,000) n/a ($250,000)
56232.533580 $18,750 43,750
57233.533580 $18,750 43,750
59235.533580 $37,500 87,500
Add to Operating $ 75,000 $ 175,000 $250,000
Net ($175,000) $175,000 $-0-
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
payments. Staff will request funding for the remaining contract years’ costs in the FY
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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Packet Pg. 21 Attachment: 3.22.2016 Staff Report (4510 : Approval of Third Modification to Agreement with Origami Risk, Inc)
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You mayobtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
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Packet Pg. 22 Attachment: Origami Oaks Initiatve Form (4510 : Approval of Third Modification to Agreement with Origami Risk, Inc)
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
Origami Risk LLC
Robert G. Petrie III, Stephen Fischer, William (Rick) Stearns, Earnest Bentley, Christopher
Bennett, Michael Farrell
Robert G. Petrie III, Stephen Fischer, Linus Concepcion, Timothy Cope
Michael Minea Corporate Counsel
legal@origamirisk.com (312) 546-6515
10/15/2020
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Packet Pg. 23 Attachment: Origami Oaks Initiatve Form (4510 : Approval of Third Modification to Agreement with Origami Risk, Inc)