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    12.    
City Council Regular
Meeting Date: 02/27/2018  

SUBJECT:
CERTIFICATE OF INSURANCE AND CONTRACT MANAGEMENT WEB BASED SOFTWARE

 
RECOMMENDATION:
  1. Authorize execution of an agreement with Exigis, LLC, for a three-year term, expiring February 28, 2021, with two (2) one-year renewal options in amount not-to-exceed $89,200 for Certificate of Insurance Management Services.
     
  2. Authorize a one-time budget appropriation to the Information Technology Division in the amount of $25,200 for implementation and first year of service provided by Exigis, LLC., for Fiscal Year 2017-18.
BACKGROUND/ANALYSIS:
The use of technology to streamline functions in the City Clerk's office continues to be a major goal of the department.  The current insurance management system, Fastrak, is no longer being supported by Fastrak; therefore, City staff has researched other insurance management options.  Insurance Management has become a monumental task in the City Clerk's Department, requiring hours of staff time to reconcile the insurance with the correct agreement, verify compliance of coverage, data entry, annual insurance renewals for non-compliant vendors, scanning and filing.  As the number of agreements the City processes continues to increase, the process to track insurance grows as well.  In addition, the City receives hundreds of insurance certificates from miscellaneous vendors that may or may not be conducting business with the City of Chino Hills.  The City is required by law to keep those insurance certificates on file for 10 years.  The task of maintaining miscellaneous insurance has grown in abundance, causing additional staff time and storage concerns. 

In September 2017, the City Manager decentralized contracts to be prepared and processed by individual departments.  Contracts are then sent to the City Clerk's Office for review, execution and insurance processing. The Contract Compliance Officer inputs the insurance data into Fastrak, which is an antiquated system with limited functions.  As part of the decentralization, the City Clerk's Department worked with the Information Technology Division to research companies who provide Certificate of Insurance Management.  Staff sought proposals from companies who provided outsourced services.  In recent months, demonstrations were held with two companies, Ebix and Exigis, LLC.  The management of insurance compliance for third party vendors is a very limited market and only two vendors were found who provided outsourced services.  

After reviewing the cost proposals, staff determined that Exigis was the most cost effective, user-friendly option, and will reduce the amount of staff time required to manage insurance compliance.  The cost for the first year is $25,200 and includes a one-time implementation fee of $9,200. The annual fee thereafter is $16,000 for services as outlined in the Statement of Services attached to the agreement. 
ENVIRONMENTAL (CEQA) REVIEW:
This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§21000, et seq.; "CEQA") and CEQA regulations (14 California Code Regulations §§15000, et seq.) because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.  Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCRF §15378(B)(4-5)).
FISCAL IMPACT:
An appropriation budget amendment in the amount of $25,200 will be funded within the Information Technology Fund which will be reimbursed by contributions from the General Fund. The recommended budget amendments will result in a total fiscal impact of $25,200 from the General Fund fund balance.  Future contract costs will be budgeted for in the appropriate fiscal year.
REVIEWED BY OTHERS:
The agenda item has been reviewed by the Finance Director and Assistant City Attorney.
Attachments
Agreement
Statement of Services

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