Title
Human Resources Department, Risk Management Division, recommending the Board consider the following:
1) Approve and authorize the Board Chair to execute retroactive Amendment II to perpetual Agreement 4527 with Ebix for insurance certificate collection and monitoring services to recognize PRISM and amend the rates per Exhibit A of the Master Services Agreement between Ebix and PRISM, effective January 1, 2023, with an estimated annual amount of $15,200; and
2) Authorize the Purchasing Agent to execute any necessary amendments relating to Agreement 4527, excluding term extensions and increases to compensation, contingent upon approval by County Counsel and Risk Management.
FUNDING: Risk Management - Risk Liability Fund.
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DISCUSSION / BACKGROUND
In accordance with Procurement Policy C-17, Section 2.4 Perpetual Agreements, departments must obtain authorization from the Board of Supervisors, initially, and on an annual basis, to utilize any contract that does not have a stated contract term and exceeds the Purchasing Agent authority. The Human Resources Department, Risk Management Division, has a Board approved contract with Ebix (Agreement 4527) which does not have a stated contract term.
EBIX establishes and maintains all systems and programs necessary to maintain an accurate and up to date database of information concerning insurance information for the County’s vendors.
In January 2020, Agreement 4527 was established between the County and Ebix for insurance certificate tracking. The contractual relationship between the County and Ebix allows for Ebix to invoice the County directly, removing the Excess Insurance Authority (EIA) from this process. Since El Dorado County is a member of the Joint Powers Authority (JPA), we receive the same pricing as offered the EIA. Agreement 4527 is a perpetual contract, however, we are obligated to the EIA for pricing. On February 14, 2023, Ebix provided the County with a new Master Services Agreement (MSA) reflecting new rates effective January 1, 2023. The new MSA between Ebix and PRISM (previously known as the CSAC EIA) was fully executed as of November 9, 2022, and requires the County to amend Agreement 4527 to recognize PRISM and include the updated rates provided.
Since the Agreement was established in 2020, the County has expended $13,721.31 in the first year, $16,259.99 in the second year, and $15,198.45 in the third year. Based on previous years’ totals, the estimated average annual amount totals $15,200. The annual total is estimated due to the as-needed nature of this services requested under this agreement.
The Annual Per Base Account Fee, Tracking of Standalone Additional Insured Endorsements, and Tracking of Standalone Ongoing and Completed Operations Endorsements fees in Exhibit A have increased by 8.9%. There are no changes to the remaining fees reflected in the current agreement.
Amendment II to the agreement recognizes PRISM and updates the rates per Exhibit A of the Master Services Agreement between Ebix and PRISM with an effective date retroactive to January 1, 2023.
ALTERNATIVES
The Board could choose to not approve the amendment and direct the Division to begin termination of this agreement. However, without this agreement in place, the Risk Management Division would not be able to accurately track insurance certificates for the County and would need to find another vendor to provide these services.
PRIOR BOARD ACTION
Item 12-1497 - On January 24, 2017, the Board approved the continuation of perpetual Agreement 237-S1611 with CSAC-EIA and authorized the Chair to execute Amendment I to Agreement 237-S1611 adjusting the fees to reflect the annual change in the Consumer Price Index effective January 1, 2017 per the terms of the original agreement, for an estimated cost of $17,250.
Item 19-1789 - On December 17, 2019, the Board authorized 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.
Item 22-0387 - On June 14, 2022, the Board approved and authorized Amendment I for the continuation of perpetual agreement 4527 with Ebix adding an additional $39,419 in compensation to the agreement for a revised not-to-exceed amount of $75,819.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Funding for the agreement is included in the Risk Management Liability Budget.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to obtain Board Chair signature on Amendment II to Agreement 4527 and forward to CAO Fiscal, attention Kelley Lawrie.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Joseph Carruesco, Director of Human Resources