REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  June  20, 2017
CATEGORY:  Consent - Health and Human Services-5.

SUBJECT:

Agreement with Western Integrated Systems to Provide Kofax Transformation Module Software

Supervisorial District No. :  All

DEPARTMENT CONTACT:  TracyTedder, Branch Director, (530) 229-8419

STAFF REPORT APPROVED BY:  Tracy Tedder, Branch Director, HHSA Business & Support Services

RECOMMENDATION

Approve and authorize the Chairman to sign an agreement with Western Integrated Systems in an amount not to exceed $141,932 to provide automated document capture software for fiscal related documents for the period July 1, 2017 through June 30, 2022 with payments as follows: (1) $55,842, with one advance payment in the amount of $26,092, for the one-time purchase of fiscal document scanning software; (2) $20,000 for Fiscal Year (FY) 2017-18 and $10,000 for each FY 2018-19, 2019-20, 2020-21, and 2021-22 for additional department requested implementation services, as needed; and (3) $5,218 annual advance payments for software maintenance and upgrades.

SUMMARY

Kofax Transformation Module (KTM) software will streamline the process of scanning invoices by Health and Human Services Agency (HHSA) Accounts Payable staff by extracting selected data (i.e., invoice number, vendor number, etc.) from scanned invoice image files, potentially reducing manual key entry/errors and increasing filing efficiency using software components such as document review and validation to ensure the data extraction is accurate.

DISCUSSION

The HHSA’s relationship with Western Integrated Systems (WIS) began July 2007 when HHSA implemented an electronic document management system (EDMS), FileBound, along with Kofax Capture to improve the ability to store and retrieve Mental Health client records.  This agreement will allow HHSA to expand upon this existing technology by installing KTM for use in our Accounts Payable processes, thereby reducing the amount of time it takes for staff to sort, file, store, and retrieve Accounts Payable documents.  Once stored data is extracted from KTM, it can be electronically routed to appropriate systems and staff within HHSA for processing.  KTM will replace labor intensive document sorting, filing, and data entry processes and increase productivity by handling a document once, scanning it into the EDMS and preventing the document from being lost or misfiled.  The system can significantly reduce labor costs associated with maintaining file rooms and reduce and eventually eliminate the amount of square footage needed to store documents in file cabinets and storage boxes. KTM will be initially setup for use in HHSA and can be expanded to other County departments in the future.

At a future date, and in cooperation with the Auditor-Controller’s Office, HHSA will have an opportunity to test KTM’s ability to extract data from invoices, create a data entry file, assign cost centers and account numbers, compare costs encumbered on purchase orders to invoices received and finally import the file into our County financial system, ONESolution. The anticipated benefits of this collaboration include preventing re-keying errors, increasing data entry accuracy, improving invoice turnaround time for payment, and reducing labor costs.

The agreement would give the HHSA Director or Branch Directors authority to sign retroactive amendments in addition to signing prospective amendments that do not result in a substantial or functional change and do not cause an increase to the maximum amount payable under this agreement provided the amendment complies with Shasta County Administrative Policy 6-101 (Shasta County Contracts Manual).

ALTERNATIVES

The Board may choose not to approve the agreement or direct the department to renegotiate some and/or all of the agreement terms.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the agreement as to form. Risk Management and Information Technology have reviewed and approved the agreement. The recommendations have been reviewed by the Auditor-Controller and the County Administrative Office.

FINANCING

Financing for this agreement is included in HHSA’s Fiscal Year 2017-18 Recommended Budget. Funding to support the cost in subsequent years will be included in the respective years’ budget requests. There is no additional General Fund impact from the recommendation.