COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Assessor-County Clerk-Recorder

DATE:

September 22, 2008

BOARD MEETING DATE:

October 7, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Warren Slocum, Assessor-County Clerk-Recorder

SUBJECT:

RFP Waiver and Agreement with SouthTech Systems, Inc. for Software Licensing & Maintenance Services

RECOMMENDATION:

Adopt a resolution:

(1)

Waiving the Request for Proposal process;

(2)

Authorizing the execution of an agreement with SouthTech Systems, Inc. to provide software licensing and maintenance services for the term of October 7, 2008 through June 30, 2011, in an amount not to exceed $263,250.00; and

(3)

Authorizing the Assessor-County Clerk-Recorder or his designee to execute contract amendments which modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government

Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

This agreement will complete another milestone in our long-term plan to increase efficiency and reduce costs by streamlining and automating business functions within the Clerk-Recorder Division.

Performance Measures:

Measure

FY 2007-08 Actual

FY 2008-09 Target

Number of documents recorded

172,415

175,000

Number of recorded documents indexed within two business days

100%

99%

BACKGROUND:

Your Board approved Resolution No. 069417 (5/20/08) adopting the State’s Social Security Number (SSN) Truncation Program to prevent identity theft. We must, by January 1, 2009, create a digital copy to serve as the public record of all documents recorded on or after January 1, 1980, and within the copy, to trim any SSN to its last four digits. The law offsets costs with a $1 recording fee, to be placed in a trust fund.

Each day, hundreds of documents, of many types and formats, are recorded. After being recorded, each is scanned, examined, and indexed, and we must complete these tasks within two business days. Accuracy and speed are crucial. Since 2002 and currently, the Clerk-Recorder has used SouthTech’s electronic document management system for recording and other business document streams.

DISCUSSION:

SouthTech’s truncation software (“Flex Index” and “ID Shield”) is an integrated enhancement of our current system, packaged with the fully integrated “Extract” application made by subcontractor, Extract Systems, LLC. Optical character recognition (OCR) technology searches the scanned image file of a recorded document for predefined word forms (such as an SSN), then indexes the document in a custom format and truncates each SSN. Extensive use by other counties and large title plants has proven the software efficient and accurate.

SouthTech has deep knowledge and experience with our processes, and holds the copyright on the processing system to which we are adding this enhancement. Waiving the Request for Proposals process will serve the County’s best interest by saving substantial start-up costs through recourse to this sole source provider.

The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits. This agreement has been reviewed and approved by County Counsel and Information Services.

County Counsel and Information Services have reviewed and approved this agreement.

FISCAL IMPACT:

There is no Net County Cost. The three-year contract will cost $263,250 and be paid across three fiscal years with funds accruing in the SSN Truncation Trust Fund established on July 1, 2008 from a $1 fee supplement for each document recorded.