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HomeMy WebLinkAboutStaff Report 2411-3837CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, December 16, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     17.Approval of Purchase Order C24193066 with Origami Risk LLC for Records Management Software Supporting the City’s Claims and Litigation for a Three-Year Term Not-To- Exceed Amount of $206,310; CEQA: Not a project City Council Staff Report From: City Attorney Report Type: CONSENT CALENDAR Lead Department: City Attorney Meeting Date: December 16, 2024 Report #:2411-3837 TITLE Approval of Purchase Order C24193066 with Origami Risk LLC for Records Management Software Supporting the City’s Claims and Litigation for a Three-Year Term Not-To-Exceed Amount of $206,310; CEQA: Not a project RECOMMENDATION Staff recommends that City Council approve and authorize the City Manager or their designee to execute Purchase Order C24193066 with Origami Risk LLC to procure Origami Risk software through December 16, 2027, in an amount Not-To-Exceed $206,310. BACKGROUND The City Attorney's Office is responsible for processing and investigating all claims and handling litigation brought against or by the City. Since 1973, the City Attorney’s Office has utilized CYCOM Data Systems Inc.’s Claims and Litigation module (“Citylaw”) to manage documents, calendars, and other records relating to claims and litigation matters. Reliable and efficient information management is critical for processing and reporting relating to claims and litigation matters. CYCOM has an annual maintenance fee of $5,116 but the system is antiquated and has become unreliable and inefficient due to frequent crashing and errors. A new state-of-the-art claims management system (CMS) is critically needed to maintain the integrity of essential records, and will increase efficiency by allowing us to streamline processes, run detailed reports, improve accuracy, and facilitate annual audits. ANALYSIS On review of industry offerings, staff determined that software from Origami Risk, LLC meets office needs and provides best value. After assessing the Office's needs through interviews of key personnel, the City Attorney’s Office conferred with surrounding jurisdictions, researched the market and various systems online, and received demonstrations of system capabilities from several potential vendors. Origami Risk LLC is a privately held company led and wholly owned by an experienced management team. Founded in 2009, Origami Risk provides records management software that serves as an alternative to the legacy technology used by other suppliers. Origami Risk connects data, automates workflows, provides access to analytics and insights, and improves collaboration and communication. With over 190 government contracts, Origami provides a full-featured CMS platform for most major coverages, including but not limited to General Liability, Property, Auto, Auto Physical Damage, etc., providing comprehensive functionality including claims management as well as incident intake, letter merge, and reporting. In 2016, the County of San Mateo entered into contract no. 17000-16-R074356 with Origami Risk for their claims management. In accordance with PAMC section 2.30.360(k), the City may use “another governmental or public agency's contract or substantially the same contract terms provided: (i) the agency uses a solicitation method substantially similar to the method required by this chapter; (ii) the contract is consistent with the requirements specified in this municipal code; and (iii) the Procurement Officer determines that the city will realize overall value to utilizing the other agency's contract or contract terms compared to the city performing its own solicitation.” Procurement staff has determined that the procurement of this software is exempt from the City’s competitive solicitation requirements as the County of San Mateo’s contract with Origami Risk meets the criteria under this section. FISCAL/RESOURCE IMPACT The Fiscal Year 2025 Operating Budget includes one-time funding of $100,000 for software acquisition and an initial estimate of $35,000 for recurring annual costs. Actual annual recurring costs will be $53,155 yearly. The Fiscal Year 2026 Operating Budget will include an adjustment to align with this cost. STAKEHOLDER ENGAGEMENT The services were coordinated with internal stakeholders and the service provider. ENVIRONMENTAL REVIEW The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3) because it can be seen that there is no possibility that the activity in question may have a significant effect on the environment. ATTACHMENTS Attachment A: Origami Agreement C24193066 APPROVED BY: Molly Stump, City Attorney Page 1 ORIGAMI RISK ORDER FORM #20245000 (C24193066) CONTACT INFORMATION Client: City of Palo Alto Bill To Contact: Address: 250 Hamilton Ave. Palo Alto, California 94301 Bill To Email: Primary Contact: Tricia Runyan Is purchase order (PO) required? ☐ Primary Contact Email: tricia.runyan@cityofpaloalto.org Upon entering into this Order Form, please send any Pos, vendor registration links or tax exemption certificates to finance@origamirisk.com SUBSCRIPTION DETAILS Subscription Term: 36 Months Effective Date: The last day of signature by the parties hereto RECURRING SUBSCRIPTIONS – LICENSES Subscription Quantity / Functionality Purchased RMIS Functionality Selected Full User(s) 4 User(s) Claims Admin User(s) 2 Claims Admin User(s) Annual Total: $31,280.00 RECURRING SUBSCRIPTIONS – HOSTING Subscription Quantity / Functionality Purchased Hosting, Network & Storage Up to 1 GBs of Database Size Non-Searchable File Attachment Storage Includes 100 GBs of Non-Searchable file storage Annual Total: $8,625.00 RECURRING SUBSCRIPTIONS – DATA PROCESSING Subscription Quantity / Functionality Purchased Open Cities / Open Forms Import Integration Selected Annual Total: $5,750.00 RECURRING SUBSCRIPTIONS – Client Support Subscription Quantity / Functionality Purchased Client Support Tier Selected Client Support tier includes support resourcing based on up to 2 hours of Client Support services per month beginning on the Effective Date. Annual Total: $7,500.00 Page 2 Total Annual Fees: $53,155.00 BILLING DETAILS AND ADDITIONAL TERMS This Order Form is effective as of the Effective Date (as identified above) for the purchase of the subscription services listed above from Origami Risk LLC (“Origami”). Origami entered into a contract with the County of San Mateo, a political subdivision of the State of California (“San Mateo”) to provide and implement a risk management information system, dated February 9, 2016 (“San Mateo Contract” or “Agreement”). Origami and Client wish to enter into this Order Form for Origami to provide Client the licenses and services as set forth herein on the same terms and conditions as the San Mateo Contract, subject to the following modifications: 1. Any reference to San Mateo in the San Mateo Contract shall instead be deemed to refer to Client for the purposes of this Order Form. To the extent that this Order Form conflicts with any provision of the San Mateo Contract, the provisions of this Order Form shall govern. 2. To the extent the San Mateo Contract does not contemplate order forms, this Order Form will be deemed a Statement of Work for purposes of the San Mateo Contract. 3. The parties agree that this Order Form will apply to the services provided to the Client and the Statement of Work and Exhibit B “Pricing and Invoicing Schedule” of the San Mateo Contract shall be replaced in their entirety by this Order Form and the related implementation services of Statement of Work #20245000. For clarity, the Service Level Agreement shall continue to govern this Order Form. 4. The Term of the San Mateo Contract shall be extended through the duration of the term of this Order Form. 5. Upon mutual agreement in writing by both the Client and Origami, this Order Form may be extended or renewed (subject to further negotiation as required) after the initial three-year term set forth herein. Fees for the first year of recurring subscription fees and all one-time fees under this Order Form will be invoiced and due in accordance with the San Mateo Contract. Fees for ongoing contract years will be invoiced before or around each anniversary date with payment due in accordance with the San Mateo Contract. All fees are subject to applicable sales tax, which will appear separately on each invoice. All travel costs and expenses will be pre-approved by Client in writing and billed to Client as incurred. Service descriptions and service-specific terms and conditions are set forth at origamirisk.com/servicedescriptions, which are hereby incorporated by reference in the form available at such link as of the Effective Date. Additional professional services may be set forth in other Statements of Work as agreed between the parties. Page 3 ORDER FORM APPROVAL The undersigned agree to this Order Form. ORIGAMI RISK LLC CITY OF PALO ALTO By: __________________________________ By: __________________________________ Name: _______________________________ Name: _______________________________ (Print Name) (Print Name) Title: ________________________________ Date: ________________________________ Title: _________________________________ Date: ________________________________ APPROVED AS TO FORM: __________________________ City Attorney or designee Page 4 STATEMENT OF WORK #20245000 This Statement of Work (“SOW”) describes services to be performed by Origami Risk LLC (“Origami”) for City of Palo Alto (“Client”). Capitalized terms not defined herein shall have the meanings set forth in the San Mateo Contract. Origami entered into a contract with the County of San Mateo, a political subdivision of the State of California (“San Mateo”) to provide and implement a risk management information system, dated February 9, 2016 (“San Mateo Contract” or “Agreement”). Origami and Client wish to enter into this SOW for Origami to provide Client the services as set forth in this SOW on the same terms and conditions as the San Mateo Contract, subject to the following modifications: 1. Any reference to San Mateo in the San Mateo Contract shall instead be deemed to refer to Client for the purposes of this SOW. To the extent that this SOW conflicts with any provision of the San Mateo Contract, the provisions of this SOW shall govern. 2. The parties agree that this Order Form will apply to the services provided to the Client and the Statement of Work and Exhibit B “Pricing and Invoicing Schedule” of the San Mateo Contract shall be replaced in their entirety by this SOW and the related licenses and services of Order Form #20245000 executed in connection herewith. OVERVIEW This SOW sets forth the Professional Services to conduct the implementation of the Service. The term of this SOW shall begin on the Effective Date of Order Form #20245000 and continue until Go-Live (as described below). This SOW does not include subscriptions to the Service. All subscriptions and associated fees are set forth in Order Form #20245000. IMPLEMENTATION Implementation Process Implementation is the process of configuring the Service for use by Client including system settings, supporting Client in loading data, initial user training, and other work identified in this section of the SOW. The implementation phase is completed (“Go-Live”) when Client is able to utilize the Service for the purposes contemplated by the implementation tasks set forth below in this SOW, referred to by Origami as being Live in the system. Once Origami moves Client from its staging environment to its live production environment, any additional use of Origami’s staging environment after Go- Live will incur additional hosting fees. Client’s provision of timely and accurate specifications, direction and feedback is essential to the implementation. Both parties understand that time is of the essence with regard to the implementation and agree to use reasonable and good faith efforts to promptly complete the implementation. Any voluntary project interruptions or stoppages ordered by Client outside of the project plan or any failures by Client to meet the obligations in the preceding sentence may result in the conversion of the implementation to a time and expense engagement, effective upon email notice from Origami to Client and billed monthly as incurred at Origami’s bundled hourly rate after crediting Client for any remaining unused portion of the fixed price. Origami provides fixed price implementations based on (i) reasonable estimates from Client to complete the deliverables as scoped in this SOW and (ii) Client’s continued and uninterrupted effort toward Go-Live. Based on conversations with the Client, Origami estimates that it will need to provide 694 hours of Professional Services for the implementation deliverables set forth in this SOW (including, without limitation, training and project management hours). If there are any changes to the scope of such deliverables, the parties will agree to meet and negotiate in good faith an amendment to this SOW to resolve any issues and to address any additional requirements. Page 5 Implementation Scope Origami will work with Client to perform the following implementation tasks: RMIS Configuration System Configuration Deliverable Scope Legal Contract and Invoice Management – Client Defined Entity Configure Legal Contract and Invoice Management Includes: ● Contract Management configuration to provide the ability to track outside counsel invoices and have associated legal expenses charged to the appropriate claim financials (invoice could be from more than one claim). Three Client Defined Entities for contracts, invoices and claim charge backs. Assumptions: Does not include loading of historical data into Origami. User Security Configure up to 5 user security roles. Workflow Configuration Provide up to 40 hours of Origami workflow configuration. This bucket of hours will also be used to configure variances to the Origami standards, to configure additional workflow not explicitly noted elsewhere, and to configure additional features and functionality. In the event that additional hours in excess of the hours allocated for this deliverable are needed to complete this deliverable, the parties will enter into a separate amendment or statement of work to purchase such additional hours. Dashboard Configuration Client will have access to the Origami standard dashboards. Provide up to 40 hours of assistance to configure default dashboards using standard Origami dashboard widgets or custom widgets via Origami’s standard Custom Widget Designer. In the event that additional hours in excess of the hours allocated for this deliverable are needed to complete this deliverable, the parties will enter into a separate amendment or statement of work to purchase such additional hours. Report Configuration Client will have access to Origami standard reports, as well as ad-hoc report tool and custom template builder. Provide up to 40 hours of assistance to configure standard Origami report templates and/or create custom template via Origami’s standard Custom Template Designer. Assumptions: ● Client will provide examples of existing reports they wish to have recreated in Origami. In the event that additional hours in excess of the hours allocated for this deliverable are needed to complete this deliverable, the parties will enter into a separate amendment or statement of work to purchase such additional hours. Mail Merge / Forms / Letters Includes up to 5 mail merges with up to 15 fields to map on each. Assumptions: The fields required on the mail merge forms exist within Origami. Claim Form Configuration Configure Origami’s fields, codes, and forms for Claims: Up to 3 Claims forms for coverages: Property, General Liability, Auto Includes Origami’s best practice screen designs and will allow for a single round of changes on the specification(s) developed. Page 6 Single Sign On (SSO) Origami will assist Client with configuration of SSO between Origami and Client Active Directory using a SAML 2.0 compliant method. System / Needs Analysis Includes discovery and design discussions around overall system usage and deliverable-specific requirements. Integrations Deliverable Scope Open Cities/ Open Forms Import Deploy the Origami standard import process to perform bulk inserts and updates of data. Assumptions: ● Open Cities/Open Forms is the system of record. ● Client will provide the data file in delimited or fixed width format using Origami’s standard layout. ● File attachments will need to have an indexing element for linking Convert Legacy System [CityLaw] Deliverable Scope Prior System Conversion Origami will convert the legacy data from CityLaw and import into the Service. Legacy data will include: ● Claims ● Incidents ● Transactions (reserves and payments) ● Notes ● Tasks (for calendar views) ● Contacts ● Locations ● File Attachments Includes: ● Includes 1 test conversion and 1 live conversion. Assumptions: ● Client will provide Origami with a full backup of CityLaw database including system schema and field definitions documentation. If database is vendor-hosted, Client will coordinate data extract and transmission to Origami with vendor. This includes final data for go-live. ● Client will be required to extract files stored in database as physical files from binary to be imported into Origami. ● Xybion, NoSQL or Mongo databases must be exported to flat files. ● Client will be responsible for necessary data cleanup prior to submission of final go live database. Alternatively, Client may work with Origami to prepare cleanup scripts that can be repeated for final go-live database after transmission. Origami will not create new cleanup scripts or participate in data cleanup after go-live database is transmitted ● Client has knowledgeable resource(s) available to assist with mapping legacy data to Origami. ● File formats will remain the same between test and live conversion. Deployment Deliverable Scope Go-Live Support Provide go-live support for 30 calendar days following delivery of all the deliverables listed in this Implementation Scope section to address any issues in connection with the Implementation Scope described in this section. Assumptions: ● Issues/requests relating to expanded scope will be addressed using Client’s ongoing support hours. Page 7 Training Provide up to 24 hours of training to Client in year 1 of this SOW and provide additional training each subsequent year as needed. Time preparing for and conducting training are included in these hours. Professional Service hours will be eroded for training in future years. Training will be provided at Client offices or online at the Client’s request. Training can be provided in one session or several on mutual agreement between Client and Origami. Assumptions: ● Client will provide Origami with guidance about the employees to be trained and any training requirements or a preferred approach. ● If training is to be provided in Client office, Client will provide appropriate meeting space and internet access so Origami can perform the training and also provide for transportation and other expenses for Client employees who attend the training. In the event that additional hours in excess of the hours allocated for this deliverable are needed to complete this deliverable, the parties will enter into a separate amendment or statement of work to purchase such additional hours. Documentation Includes creation of client documentation that aligns with the design, configuration and workflows of deliverables outlined. Project Management Deliverable Scope Project Management Origami will designate a project manager to provide project management activities during the Implementation. Origami will follow a set of best practices and tools to manage the implementation project which includes the items listed below: Origami will: ● Schedule and lead initial kickoff call or meeting. ● Lead 30-minute status calls every two weeks throughout the term of the project (or as otherwise agreed upon by both Origami and the Client) with attendees which will be determined at project kickoff and as may be adjusted as needed throughout the duration of the project. ● Maintain a project schedule on a weekly basis with key deliverables and expected dates to drive design, configuration, and sign off of specifications and unit testing for each deliverable to ensure project stays in scope and on time. ● Provide a project dashboard and QRAID (Questions, Risks, Actions, Issues, Decisions) log to provide oversight on issues which may impact scope, resources or timeline. ● Coordinate all activity within Origami to complete Origami’s tasks on schedule and ensure project team’s collaboration and accountability. Client will: ● Participate in status calls and working meetings. ● Complete all Client assigned project tasks (e.g. discovery sessions, data gathering, unit testing, sign off) in accordance with the agreed upon timeline ● Coordinate all activity within Client’s organization to complete Client’s tasks on the project schedule. ● Coordinate all activity of Client’s 3rd party providers (data sources, brokers, TPAs, etc.) required to complete tasks on the project schedule Page 8 Client Roles and Responsibilities ● Client will designate, prior to the start of the implementation, a single point of contact who shall be responsible to coordinate and manage all activities required within Client’s organization to complete Client’s tasks on the project schedule and make decisions on behalf of Client. This single point of contact may be changed at any time upon Client’s notice to Origami. ● Client will designate, prior to the start of this engagement, at least one System Administrator (“Client SA”) who will be responsible for working with Origami to implement the Service and maintain the Service thereafter, and who will provide ongoing production support to Client’s users, both internal and external. More detailed responsibilities will be provided after project kickoff based on system requirements. Client SAs will be responsible for setting up and assigning security rights and maintaining user IDs for all users. Client SAs will have sufficient knowledge, skills and abilities to perform their identified project roles. ● Client will provide requested information within a reasonable timeframe as agreed upon by Client and Origami; if providing the requested information is not achievable or will take longer than preferred, Client will promptly inform Origami of the situation and alternative solutions will be determined. ● Client will help resolve project issues and assist with bringing issues to the attention of the appropriate persons within the organization, as required. ● Client will coordinate all activity of Client’s 3rd party providers required to complete tasks on the project schedule and Client will be primarily responsible for obtaining information and resolving any issues pertaining to third party products or services used by Client, if necessary. Client will be responsible for any charges levied by 3rd party providers. ● Client agrees generally to provide other reasonable assistance and cooperation to see that services are successfully completed (e.g., participate in status calls and working meetings, provide specifications, direction, and feedback as needed by Origami in a timely manner, etc.) ● For any deliverables that Origami provides to Client for approval, Client will confirm approval or provide necessary details on any requested remediation promptly. ● Client will be responsible for testing and quality assurance related to the implementation within the timeframe as agreed upon in the project schedule. Client will ensure that all configurations and customizations operate as intended (including functionality, usability and data access rights), and Origami shall not be responsible for any damages caused by any such configurations or customizations. ● Client will have final responsibility for decisions regarding all configurations and customizations (such as forms, dashboards, interfaces, reports, workflows and data flows), as agreed upon in the design documentation created by or for Client or Client’s users in the Service. ● Outside of the implementation scope set forth in this SOW, Client shall have the ability to configure additional default dashboards, fields, forms, user roles, distribution lists, reports and other features as needed by Client. ● Client will review and approve specifications provided by Origami and acknowledges that requests for substantial deviations from the specification are outside the scope of the project. ● Upon Origami’s completion of the deliverables set forth above, Client will provide written acknowledgment of Go-Live. ● At the conclusion of the implementation as set forth herein, Client agrees to use good faith efforts to respond to any Origami questionnaire or other request for feedback. PRICING AND INVOICE SCHEDULE Origami will invoice Client $46,845.00 for the Professional Services detailed in this SOW. Such payment shall be invoiced by Origami upon signature of this SOW by both parties and due in accordance with the terms of the Agreement. If needed, additional professional services can be purchased through a separate statement of work. All fees are subject to state sales tax, where applicable. All travel costs and expenses will be pre-approved by Client in writing and billed to Client as incurred. STATEMENT OF WORK APPROVAL The undersigned agree to this Statement of Work. ORIGAMI RISK LLC City of Palo Alto By:__________________________________ By:__________________________________ Name:_______________________________ Name:_______________________________ (Print Name) (Print Name) Title:________________________________ Date:________________________________ Title:_________________________________ Date:________________________________ APPROVED AS TO FORM: __________________________ City Attorney or designee