25K - AGMT - WORKERS COMP AND LIABILITY CLAIM SOFTWARE

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 16, 2014 TITLE: RENEWAL OF AGREEMENT WITH AON eSOLUTIONS INC. CITY MANAGE CLERK OF COUNCIL USE ONLY: mrU4041P ❑ As Recommended ❑ As Amended ❑ Ordinance on 1„ Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve and authorize the City Manager and Clerk of the Council to execute an agreement with AON eSolutions, Inc. for the software required for the management of the City's workers' compensation and liability claims in an amount not to exceed $55,000 subject to non - substantive changes approved by the City Manager and City Attorney. The agreement includes a provision for a one -year renewal option exercisable by the City Manager and City Attorney in an amount not to exceed $55,000, a total of $110,000 for a two -year period. DISCUSSION The City self- administers its workers' compensation and tort liability claims. Management of these claims requires the use of proprietary software for the processing of payments, claim monitoring and compliance with reporting requirements. The City has utilized AON eSolutions (formerly Valley Oak Systems, Inc.) since March 16, 1999. The agreement with Aon eSolutions expires September 20, 2014. This agreement extends terms of agreement and amendments to September 30, 2016. The agreement renewal reaffirms the amount of annual maintenance fees and the hourly rate of professional services, data conversion, custom development and training. Escrow agent changes are also reflected. The term may be extended for up to one additional one -year period in an amount not to exceed $55,000 annually. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #7 — Team Santa Ana, Objective #5 Promote the use of new technology to improve the delivery of services to staff and the community and 25K -1