Title
Human Resources Department, Risk Management Division, recommending the Board:
1) Make findings that it is more economical and feasible to contract out for insurance certificate collection and monitoring services in accordance with Ordinance 3.12.030;
2) Approve and authorize the continuation of perpetual agreement 448 with CSAC Excess Insurance Authority, Inc. for the provision of CSAC-EIA’s contract with Ebix for insurance certificate collection and monitoring services for the term January 1, 2020 - December 31, 2023;
3) Approve the adjusted the fees to reflect the annual change in the Consumer Price Index as submitted by Ebix, Inc.; and
4) Authorize the Purchasing Agent to sign the new agreement 4527 with Ebix, Inc. for the term of January 1, 2020 - December 31, 2023 for a not to exceed amount of $36,400.
FUNDING: Risk Management - Risk Liability Fund.
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DISCUSSION / BACKGROUND
In accordance with Board Policy Number C-17, departments are required to obtain authorization from the Board of Supervisors to utilize any contract that does not have a stated contract term on an annual basis. The Human Resources Department, Risk Management Division, has a Board approved contract with CSAC Excess Insurance Authority Inc. (Contract 448) which does not have a stated contract term. In addition, the contractual relationship with the EIA has changed. While the County will continue to contract with CSAC EIA for pricing, the County will also enter into an agreement with Ebix directly for invoicing and payment purposes.
In the past, as a member of the CSAC EIA, El Dorado County was able to utilize the Ebix services listed in the service agreement between the EIA and Ebix. As such, the EIA would invoice the County directly on behalf of Ebix. The new contractual relationship between CSAC EIA and Ebix will allow for Ebix to invoice the County directly, removing the EIA from this process. In order to facilitate this change El Dorado County and Ebix must sign an agreement. While the pricing in the agreement will not change, the annual Consumer Price Index (CPI) increase will cap at 3% of the cost of total services or the actual CPI adjustment, whichever is lower. The estimated cost for the three year term is $36,400. The Human Resources Department, Risk Management Division is recommending the Board authorize the continued use of this agreement.
ALTERNATIVES
The Board could choose not to approve the agreement and Risk Management could find and use a different third party administrator for tail claims.
PRIOR BOARD ACTION
1/24/17 Legistar Item 12-1497 - Renewal of agreement with CSAC-EIA through Ebix
OTHER DEPARTMENT / AGENCY INVOLVEMENT
CAO, Procurement and Contracts
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board approve this item.
FINANCIAL IMPACT
Funding for the agreement is included in the Risk Management Liability budget for Fiscal Year 2019-20.
CLERK OF THE BOARD FOLLOW UP ACTIONS
None.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Tameka Usher