City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: SEPTEMBER 5, 2023 FROM: INNOVATION AND TECHNOLOGY DEPARTMENT WARDS: ALL SUBJECT: THREE-YEAR EXTENSION TO THE SOFTWARE SUBSCRIPTION AGREEMENT WITH ORIGAMI RISK LLC, FOR THE RISK MANAGEMENT INFORMATION SYSTEM FOR THE TERM OF SEPTEMBER 8, 2023, THROUGH SEPTEMBER 7, 2026, IN THE AMOUNT OF $402,738 ISSUE:
Authorize a three-year extension to the Software Subscription Agreement with Origami Risk LLC, of Chicago, Illinois, for the Risk Management Information System for the term of September 8, 2023, through September 7, 2026, in the amount $402,738.
RECOMMENDATIONS:
That the City Council:
Authorize a three-year extension to the Software Subscription Agreement with Origami Risk LLC, of Chicago, Illinois, for the Risk Management Information System for the term of September 8, 2023, through September 7, 2026, in the amount $402,738; Authorize the City Manager, or his designee, to execute the Software Subscription Agreement Extension, including making minor and non-substantive changes; and Authorize the City Manager, or designee, to execute future ongoing annual license renewals subject to the availability of budgeted funds.
BACKGROUND:
The City of Riverside issued RFP 1533 for a Comprehensive Risk Management Information System (RMIS) on May 12, 2016. Origami Risk, LLC was selected as the highest rated bidder and City Council approved a three-year Master Software Subscription Agreement with Origami Risk, LLC on August 8, 2017 for a total not to exceed $332,490.
On January 7, 2020, City Council approved Addendum 1 to the Master Software Subscription Agreement with Origami Risk LLC, amending the scope of work to include a Certificate of Insurance Module with OCR technology, increasing the compensation by $43,010 for a total agreement amount of $343,170.
The current Master Software Subscription Agreement includes the following modules:
Third Party Claims Management streamlines third-party claims, by providing policy integration, financial and litigation management, centralized communications and effortless statistical reporting.
Certificate of Insurance provides automated tracking of certificates of insurance, sends reminders to all vendors and brokers before policy expiration dates and integrates with claims management.
Damage Claims supports subrogation efforts with record keeping, document storage, issuance of communication, etc.
High frequency users of all modules have the ability to work with Origami developers to further improve the functionality and benefit to both internal and external users.
DISCUSSION:
City staff are satisfied with the software performance and recommend extending the agreement term by an additional 3 years. The cost of the extension is as follows:
TERM
SUBSCRIPTION COST
FY 2023/2024
$134,246
FY 2024/2025
$134,246
FY 2025/2026
$134,246
3 YEAR TOTAL
$402,738
The cost of this three-year extension will add $402,738 to the previous $343,170 spent on the software licensing for a total amount of $745,908. However; as a standard practice, software agreements do not refer to previous terms when quoting prices or referencing total amounts.
Purchasing Resolution No. 23914, Article Six: Acquisition of Goods, Section 602 Exceptions states, “Competitive Procurement through the Informal Procurement and Formal Procurement process shall not be required in any of the following circumstances: …(r) When the Procurement is for the renewal of maintenance, license(s), support, or a similar need for existing technology systems, including hardware, and the items are procured from a vendor/reseller that was originally selected based on the City's procurement standards, provided that 1) the contractor has been used continuously since such selection and 2) if there are not any non-substantive changes to the Procurement and 3) when it is determined by the Manager to be in the best interests of the City to do so”.
The Purchasing Manager concurs that the recommended actions are in compliance with Purchasing Resolution 23914, Sections 602(r).
The Chief Innovation Officer concurs with staff’s recommendations and confirms that this item is in accordance with the City’s technology standards, guidelines and policies.
STRATEGIC PLAN ALIGNMENT:
This item aligns with Strategic Priority 5 - High Performing Government and Goal 5.2- Utilize technology, data, and process improvement strategies to increase efficiencies, guide decision making, and ensure services are accessible and distributed equitably throughout all geographic areas of the City.
The item aligns with each of the five cross-cutting threads as follows:
Community Trust – Staff builds community trust by effectively communicating to business owners and residents, the procedures for using this software to file third-party claims and or upload certificates of insurance.
Equity – The use of Origami software is available for all third parties who want to file a claim online.
Fiscal Responsibility – City staff negotiated pricing terms to best fit the needs of the City and that represent the satisfaction of the software’s use and capabilities.
Innovation – Through the introduction and use of Origami software, the city has been afforded the opportunity to customize the insurance and claims portals to meet the City’s unique needs and objectives.
Sustainability & Resiliency – The online Origami system allows documents and communications to be electronically available eliminating the use of paper copies.
FISCAL IMPACT:
The total fiscal impact of this action is $402,738. Sufficient funds are budgeted and available in the following accounts for FY 2023/24. Appropriations for future fiscal years will be included in the Department’s Budget submissions for those fiscal years to be presented to the City Council for approval.
Fund
Program
Account
Amount
General Fund
IT-Applications-Software Maintenance
2415000-424310
$116,372
General Liability Self-Insurance Fund
Software Purchase/Licensing
2320000-425700
$17,874
TOTAL COST FOR FY 2023/24:
$134,246
Prepared by: George Khalil, Chief Innovation Officer
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/City Treasurer
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Origami Risk Order Form
Origami Risk Software Extension ● Page 3