Title
[Contract] Worker’s Compensation Claims Management System Implementation
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FileID
File ID: 2025-01095
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to: 1) execute a professional service agreement with Origami Risk LLC to implement a Workers’ Compensation Claims Management System for an amount not-to-exceed $127,925; and 2) purchase a Software as Service (SaaS) subscription for the Citywide Workers’ Compensation system for an amount not-to-exceed $335,430 for three (3) years support and maintenance, with annual auto-renewals.
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Contact
Contact: Natalie Dempsey, Risk Manager, (916) 808-7260, ndempsey@cityofsacramento.org, Department of Human Resources; Mrudul Sadanandan, Assistant Director, (916) 808-7894, msadanandan@cityofsacramento.org; Cassy Vaioleti, Program Specialist, (916) 808-8047, cvaioleti@cityofsacramento.org; Darin Arcolino, Chief Information Officer, (916) 808-0403, darcolino@cityofsacramento.org; Information Technology Department.
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Professional Service Agreement
3-Software Agreement
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Description/Analysis
IssueDetail
Issue Detail: The Information Technology (IT) Department partnered with the Human Resource Department’s Risk Management Division to implement a cloud-based Worker’s Compensation Claim Management System to administer employee injury claims. The project includes configuration, implementation, and migration services to support work-related injury claims while ensuring compliance with regulatory business requirements.
An Invitation for Bid (RFB) (P24071011010) was utilized to solicit a cloud-based Worker’s Compensation system, implementation and migration services. Over 2,200 vendors were notified, and the City received eight (8) proposals. Following a comprehensive evaluation process, Origami Risk, LLC was selected as the top vendor.
Human Resources relies on an externally hosted, unsupported system to process and manage workers' compensation claims. Because the system is no longer supported, it poses significant risks, including potential system failure, data loss, and security vulnerabilities. Additionally, maintaining this outdated infrastructure requires substantial financial resources and City employee services for upkeep. Transitioning to a cloud-based solution would enhance security, ensure regulatory compliance, and provide greater cost-efficiency, scalability, and reliability.
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PolicyConsiderations
Policy Considerations: The requested action is in conformance with City Code Chapter 3.64 and in accordance with the goals, objectives, initiatives and operating principles of the City’s Digital Strategy.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The report concerns administrative activities that will not have a significant effect on the environment and is exempt from CEQA review [CEQA Guidelines Sections 15061(b)(3); 15378(b)(2)].
Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: In compliance with City and State policies and legal requirements, the City of Sacramento’s Workers’ Compensation Unit of the Human Resources Department, Risk Management Division is responsible for administering claims under its self-insured, self-administered Workers’ Compensation Program. The City currently relies on a legacy, unsupported system, which presents significant risks such as system failure, data loss, and security vulnerabilities, while also requiring extensive maintenance resources. Transitioning to a cloud-based SaaS system will significantly enhance claims handling by streamlining workflows, reducing processing time, and enabling real-time access to critical data. This move will also strengthen data security, ensure ongoing regulatory compliance, and boost overall operational efficiency. Implementing a cloud-based Worker’s Compensation Claims Management System would streamline the business process and improve the user and employee experience. The implementation will modernize the business processes by automating and integrating with other enterprise applications. In addition, the system will improve analytics and reporting to help management make data driven business decisions. To sustain and improve the delivery of these essential services, the implementation of a new Workers’ Compensation Claims Management System is critical.
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FinancialConsiderations
Financial Considerations: The proposed professional service agreement is for an amount not-to-exceed $127,925, and the purchase a SaaS subscription for the Citywide Woker’s Compensation system is for an amount not-to-exceed $335,430. Sufficient funding exists in the Human Resources Department operating budget, Risk Management Fund.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Origami is not an LBE.
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