REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 3 to the Agreement with EBIX, Inc., BPO Division (EBIX BPO) for Insurance Compliance Tracking Services
Report
BACKGROUND
In March 2012, Council authorized the City Manager to execute an agreement with EBIX BPO to provide insurance tracking and compliance services for a three-year period with two one-year renewal periods. Both renewal periods were exercised.
In March 2017 and March 2018, Council approved Amendments No. 1 and 2 to the Agreement to extend the term by one year each. The current term is due to expire on March 27, 2019.
DISCUSSION
EBIX BPO provides insurance tracking and compliance services to ensure that the City's vendors maintain compliance with the City's insurance requirements. EBIX BPO services include managing Certificates of Insurance, identifying and following up on any deficiencies in coverages, issuing renewal notices, and maintaining an on-line database that City staff can query and view insurance status.
As part of the FY 2018/19 Adopted Budget, the City Council authorized the addition of a Risk Manager. In January 2019, the City hired a Risk Manager, whose responsibility includes reviewing and implementing process improvements to the City's insurance and risk management practices. Amendment No. 3 to the Agreement will allow sufficient time for the Risk Manager to assess the City's existing processes and develop modified insurance assessment and compliance practices, as necessary.
EBIX BPO has agreed to maintain the current annual compensation amount of $48,000 during the two year Amendment term. This fee is an estimate based on annual usage. The term of the agreement will terminate on March 27, 2021. The current contract with EBIX BPO for services related to insurance tracking and compliance has a total not-to-exceed amount of $246,334. Amendment No. 3 increases compensation by $96,000 for a revised not-to-exceed maximum compensation amount of $342,334.
The Agreeme...
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