HomeMy WebLinkAbout6/30/2004 - STAFF REPORTS (4) ju
DATE: June 04 —
TO: City Council
FROM: Director of Procurement & Contracting
INSURANCE/BOND MONITORING SERVICES
RECOMMENDATION:
It is recommended that City Council approve contracting with JenQuest, Inc, dba Insurance Data
Services for insurance and-bond monitoring services in an amount not to exceed $22,080 for a
one-year period.
SUMMARY:
This action would provide the City with insurance and bond monitoring services for city contracts
to mitigate the effects a proposed staff reduction in the City Clerk's Office.
BACKGROUND:
As part of contract administration procedures,the City collects evidence of insurance policies and
bonds, verifies their conformance to contract requirements and maintains original copies of such
evidence in the Office of the City Clerk. The effort required to perform these tasks is time
consuming and is magnified by the necessity of maintaining them across each policy's expiration
date.
City staff became aware that a numberof agencies,including Orlando International Airport and the
County of Los Angeles, have moved to contract this clerical task out in order to dedicate their staff
time to more productive activities.
The services to be provided by Insurance Data Services include:
establishing a City-specific tracking database;
programming the tracking system with City standards for insurance;
establishing a receiving portal for receipt of the City's insurance and bond documents;
receiving and imaging all incoming documents;
validation of documents against City requirements;
issuance of any required notices(such as pre-expiration notices,expired coverage notices)
continuous monitoring of all City accounts;
maintaining an automated image history/audit trail of all correspondence related to City
accounts;
providing contract pre-expiration notice to City;
providing unlimited access to City staff via the Internet; and
making accessible, via the Internet, a variety to reports.
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The cost of services to be provided consist of a set-up fee ranging from $3250 to $4440
(depending on the method which the City utilizes to transmit information about existing accounts)
and a tracking fee established on a unit price basis of$2.10 per account per month. The number
of accounts should remain relatively stable over time, as new accounts are balanced by expiring
accounts (accounts expire 6 months after the contract period for which they were established). It
is estimated that the City will have approximately 700 open account at any one time.
Funds are available for this purpose in the current fiscal year in the Department of Procurement
&Contracting's Contractual Services account(1330-43200). In the next fiscal year funding will be
provided from proposed staff reductions.
HAROLD E. GOOD
Director of Procurement& Contracting
-----AP—P-ROVED: ^/}
City Manager
Attachment: 1 Minute Order
REVIEWED BY DEPT. OF FINANCE
MINUTE ORDER NO. 7508
APPROVING CONTRACTING WITH JENQUEST,
INC., DBA, INSURANCE DATA SERVICES FOR
INSURANCE AND BOND MONITORING
SERVICES, IN AN AMOUNT NOT TO EXCEED
$22,080, FOR A ONE-YEAR PERIOD AND ONE-
TIME SET UP COSTS UP TO $4,440.
I HEREBY CERTIFY that this Minute Order, approving contracting with
Jenquest, Inc., dba, Insurance Data Services for insurance and bond
monitoring services, in an amount not to exceed $22,080, for a one-year period
and one-time set up costs up to $4,440, was adopted by the City Council of the
City of Palm Springs, California, in a meeting thereof held on the 30th day of
June, 2004.
PATRICIA A. SANDERS
City Clerk