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HomeMy WebLinkAbout05.C- Fire RESOLUTION (ID# 1453) DOC ID: 1453 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Agreement/Contract Amendment From: Michael Conrad M/CC Meeting Date: 12/19/2011 Prepared by: Norma Camarena, (909) 384- 5286 Dept: Fire Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Adopting Amendment Number One to Vendor Services Agreement Between the City of San Bernardino and Intermedix-Advanced Data Processing, Inc. Financial Impact: By awarding the bid to our current contractor, the City will continue to refine our collection process for our EMS/Paramedic Program. While we do not believe that we will realize additional large increases,we do project incremental increases of one-two percent per year, resulting in a potential increase of 5-10 percent over the full span of the contract. Collections are running at about$400,000 per year and with projected improvements could increase the collections by $20,000-40,000 over the term of the contract. Compensation to hntermedix-ADPI is a percentage not to exceed twenty-five percent(25%) of amounts collected on behalf of the City under the billing program. Funding for this contract cost is budgeted in the Fire Department's FY 2011-12 budget, account for other professional services (no. 001-200-5505-00000-0001). The City issued a routine purchase order, #304113,for services in the amount of$53,000 and will need to be increased to$100,000 for annual services with ADPI for FY 2011-12. It was estimated that approximately$100,000 of annual gross revenue will be paid for billing services. Should revenues exceed projections there will be a corresponding increase in the annual contract costs. Account Number: 001-200-5505-0000-0001 Budgeted Amount: $152,500 Balance as of December 13, 2011: $86,258.85 Balance after approval of item: $39,258.85 Please note this balance does not indicate available funding. It does not include non-encumbered reoccurring expenses or expenses incurred,but not yet processed. Motion: Adopt Resolution. Synopsis of Previous Council Action: 06/20/11 Resolution 2011-144 authorization to enter into an agreement and issuance of a purchase order to Intermedix/Advanced Data Processing, Inc. to provide billing Updated: 12/15/2011 by James F.Penman Packet Pg. 19 1453 services for fast responder, paramedic, and membership program fees from July ® 1,2011 through December 31,2011. 09/15/08 Resolution 2008-358 authorization to enter into an agreement with Advanced Data Processing, Inc. to provide EMS billing services for first responder, paramedic,and membership program fees. 07/07/08 Resolution 2008-275 amending the city's master fee schedule, resolution number 2008-149 adjusting the emergency medical services (EMS)user fees. 07/02/07 Resolution 2007-225 authorization to extend the agreement with Advance Data Processing Inc. to provide EMS billing services from July 1, 2007 through June 30, 2008. 05/15/06 Resolution 2006-147 Second reading of ordinance repealing Chapter 3.72 of the San Bernardino Municipal Code or resolution adopting revised EMS User Fee Program and authorizing execution of amendment to agreement with ADPI. 10/18/04 Resolution 2004-333 approving the billing service agreement with Advanced Data Processing West, Inc. for first responder, paramedic, and membership program fees. Backeround• The San Bernardino City Fire Department has provided Emergency Medical Services (EMS) at the Advanced Life Support (Paramedic) level to our residents and visitors since 1976. These services are over and above the tax-funded fimctions of the Fire Department. As such, the Fire Department bills for those First Responder Paramedic services in an attempt to cover the additional equipment, personnel, and training costs involved with providing our patients timely, high quality Paramedic service. Currently, the charge for these services is set at $200.00, a reduction from the initial charge of $250.00. We have a subscription program, to provide our residents the ability to prepay a much lower fee (currently $24) which covers out of pocket costs for themselves and their household members for the entire fiscal year for our Paramedic First Responder services. While the $24 subscription fee does not cover the costs for even a single response, the additional revenue from residents that elect to subscribe,but do not utilize our services somewhat compensates for it. We also have an exemption for low-income residents that qualify for the low income utility exemption program. Our fee structure is considerably less than the other cities in the area that charge for EMS/Paramedic response; their fees range between $300-350 for residents, $450 for non-residents, and$48 for a subscription. We are requesting the contract for billing services with Intermedix-ADPI be amended to the full term of the bid proposal, from July 1, 2011 through June 30, 2013, with three (3) one-year renewal options. This company has provided billing services for our EMS services under the current contract since 2008 and has demonstrated a commitment to providing good service with © continuous improvement in efficiency and customer service. The bid proposal was published Updated: 12/15/2011 by James F.Penman PacketPg. 20 1453 locally and sent to the Chamber of Commerce and seven EMS Billing companies. Two responses were received, one from Intermedix-ADPI and one from an additional vendor. No responses were received from local vendors. Intermedix-ADPI's cost proposal did not increase from the current contract and is an all-inclusive bid; reflecting their knowledge of the City and their confidence in meeting the contract specifications. Additionally, Intermedix-ADPI has worked closely with the City over the past four years and together with the implementation of the Electronic Patient Care Report data collection program they have increased collections by over 60%. Entering into the contract for the full term provides a time frame in which to anticipate costs and changes in order to appropriately service the contract. Continuing with piecemeal extensions could lead to increased start-up and turn-over costs that would normally be amortized into a typical longer-term contract. Medical billing is significantly more complex with potential liabilities that do not occur with billing for standard City services (alarm response, water service, etc.). Federal regulations covering privacy and compliance with billing standards require unique and highly specialized expertise. In the future if the City wished to internally handle the medical billing function; the contract does have a thirty day opt-out clause that either party may exercise. City Attorney Review: Approved as to Form Supportina Documents: Reso 1453 (PDF) ADPI Agreement Amendment Number One (PDF) Updated: 12/15/2011 by James F.Penman Packet Pg. 21 WN 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 3 SAN BERNARDINO ADOPTING AMENDMENT NUMBER ONE TO THE 4 VENDOR SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND INTERMEDIX-ADVANCED DATA PROCESSING,INC. 5 0 WHEREAS, On June 20, 2011, the Mayor and Common Council adopted Resolution 6 NO. 2011-144 authorizing the City to enter into a Services Agreement with Intermedix- E c 8 Advanced Data Processing, Inc. ("ADPI") for first responder, paramedic, and membership c d E 9 program fees, for the term of July 1, 2011 through December 31, 2011; and, 10 a WHEREAS, the City of San Bernardino Fire Department has found that the use of 11 ADPI's services is beneficial to the City; and, o 12 WHEREAS, the Fire Department wishes to amend the agreement to extend the term E 13 Z through the end of Fiscal Year 2012/2013; d 14 E E 15 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE a 16 CITY OF SAN BERNARDINO AS FOLLOWS: ; 17 v SECTION 1. The City Manager is hereby authorized and directed to execute on 18 behalf of City Amendment Number One to the Services Agreement with Intermedix- 0 19 .0 d 20 Advanced Data Processing, Inc., extending the term of the Agreement through the end of of M N 21 Fiscal Year 2012/2013, with the option of three one-year extensions, a copy of which is 0 N 22 attached hereto, and incorporated herein by reference as though fully set forth at length; 23 SECTION 2. The Director of Finance or her designee is authorized to issue an annual E 24 25 purchase order to Intermedix-Advanced Data Processing, Inc. The annual purchase order is 26 for two years with the option of three one-year extensions. The Annual Purchase Order shall 27 incorporate by reference this Resolution and Bid Specification #F-11-15 and shall be in an 28 amount equal to 25%of net revenue collected. PacketPg.22 5.C.a RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 1 SAN BERNARDINO ADOPTING AMENDMENT NUMBER ONE TO THE 2 VENDOR SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND INTERMEDIX-ADVANCED DATA PROCESSING,INC. 3 4 SECTION 3. The authorization to execute the above referenced Agreement and a 5 ° Annual Purchase Order is rescinded if the parties to the Agreement fail to execute it within 6 d 7 thirty (30)days of the passage of this Resolution. c 8 c m E 9 10 //// o 11 � 0 12 M 13 3 14 E 15 E a 16 //// Cl) N 17 18 C 19 > d 20 LO M 21 O N 22 c 23 E r 24 25 26 27 © 28 Packet Pg. 23 5.C.a 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ADOPTING AMENDMENT NUMBER ONE TO THE 2 VENDOR SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO 3 AND INTERMEDIX-ADVANCED DATA PROCESSING,INC. 4 _ I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor a 5 a 6 and Common Council of the City of San Bernardino at a meeting s d E 7 thereof, held on the_day of 2011,by the following vote,to wit: c 8 c Council Members: AYES NAYS ABSTAIN ABSENT d E 9 v MARQUEZ a 10 0 11 JENKINS 0 12 BRINKER E 13 SHORETT z' c 14 KELLEY a 15 JOHNSON E 16 a MCCAMMACK M 17 18 0 19 Rachel G. Clark, CMC, City Clerk z 20 The foregoing resolution is hereby approved this day of 2011. 21 0 0 22 Patrick J. Morris, Mayor 23 City of San Bernardino r 24 Approved as to form: 25 JAMES F. PENMAN, 26 City Attorney 27 �� << � . 28 v Packet Pg._24 S.C.b AMENDMENT NO. 1 TO SERVICES AGREEMENT o CITY OF SAN BERNARDINO ¢ INTERMEDIX-ADPI m THIS AMENDMENT NO. 1 TO THE SERVICES AGREEMENT BETWEEN d INTERMEDIX - Advanced Data Processing, Inc ("CONTRACTOR") and the CITY OF SAN BERNARDINO("CITY)"is entered into this day of . 20 c — d E WITNESSETH: v m a A. WHEREAS, CITY has need for billing services for first responder, paramedic, $ and membership program fees and, m c O B. WHEREAS, CONTRACTOR is competent, experienced and able to perform the billing services: and, E z z C. WHEREAS, CONTRACTOR provided the most advantageous and best r_ responsible proposal for the providing of such services; and, E E a c D. WHEREAS, parties entered into a Services Agreement for the E g provision of a billing services to the San Bernardino City Fire Department on July 1, 2011, which expires on December 31,2011 ("the Agreement"); and, Ln a E. WHEREAS, the parties wish to extend the term of the Agreement for an '- additional eighteen months, until the end of Fiscal Year 2012/2013; 0 An NOW THEREFORE,the parties hereto agree as follows: 1. Paragraph 3 of the Agreement is hereby amended to read as follows: O "3. TERM; TERMINATION. a E 3 "The term of this Agreement is two years, expiring at midnight on z June 30,2013. c 0 E "This Agreement may be terminated at any time on thirty(30) m days' written notice by either party. The terms of this Agreement ¢ shall remain in force unless mutually amended. The duration of this Agreement may be extended for three(3)additional one-year terms with the written consent of both parties." E E m 2. All other terms and conditions set forth in the Agreement shall remain unchanged. a 0 Signature page follows a c N E r A tr Packet Pg.25 5.C.b AMENDMENT NO. 1 TO SERVICES AGREEMENT o CITY OF SAN BERNARDINO ¢ INTERMEDIX-ADPI X d E d IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the day c and date first above shown. d E Date: Date: L rn a INTERMEDIX CORPORATION (ADPI) CITY OF SAN BERNARDINO S d 0 By: By: a Charles McNeely,City Manager E z z c Approved as to form: E James F. Pre m City Atto' a c E By, a i N v T C 0_ Ix I.L N r 0 L d E 7 Z C d E -o r m E a d E v m L rn a 0 c m E U U R ¢ Packet Pg. 26 RESOLUTION(ID# 1453) DOC ID: 1453 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION a Agreement/Contract Amendment o X From: Michael Conrad M/CC Meeting Date: 12/19/2011 d E Prepared by:Norma Camarena,(909)384- 5286 — c d E Dept: Fire Ward(s): All rn Subject: o Resolution of the Mayor and Common Council of the City of San Bernardino Adopting c Amendment Number One to Vendor Services Agreement Between the City of San Bernardino and Intermedix-Advanced Data Processing,Inc. a E Financial Impact: Z By awarding the bid to our current contractor,the City will continue to refine our collection d process for our EMS/Paramedic Program. While we do not believe that we will realize additional E large increases,we do project incremental increases of one-two percent per year,resulting in a d potential increase of 5-10 percent over the full span of the contract. Collections are running at ¢ about$400,000 per year and with projected improvements could increase the collections by $20,000-40,000 over the term of the contract. Compensation to Intermedix-ADPI is a percentage not to exceed twenty-five percent(25%)of amounts collected on behalf of the City under the billing program. Funding for this contract cost r 0 is budgeted in the Fire Department's FY 2011-12 budget,account for other professional services .N (no. 001-200-5505-00000-0001). The City issued a routine purchase order,4304113,for services in the amount of$53,000 and will need to be increased to $100,000 for annual services d c with ADPI for FY 2011-12. It was estimated that approximately$100,000 of annual gross o revenue will be paid for billing services. Should revenues exceed projections there will be a corresponding increase in the annual contract costs. E Z Z Account Number: 001-200-5505-0000-0001 Budgeted Amount: $152,500 c E Balance as of December 13,2011: $86,258.85 Balance after approval of item: $39,258.85 E c Please note this balance does not indicate available funding. It does not include non-encumbered reoccurring expenses or expenses incurred, but not yet processed. E d Motion: Adopt Resolution. rn a a Synopsis of Previous Council Action: a 06/20/11 Resolution 2011-144 authorization to enter into an agreement and issuance of a c v purchase order to Intermedix/Advanced Data Processing, Inc. to provide billing E m © a Updated: 12/15/2011 by Mayra Ochiqui Page I Packet Pg. 27 1453 ® services for first responder, paramedic, and membership program fees from July a 1,2011 through December 31,2011. ❑ X 09/15/08 Resolution 2008-358 authorization to enter into an agreement with Advanced v Data Processing, Inc, to provide EMS billing services for first responder, paramedic,and membership program fees. 07/07/08 Resolution 2008-275 amending the city's master fee schedule, resolution number d 2008-149 adjusting the emergency medical services (EMS)user fees. E E d rn 07/02/07 Resolution 2007-225 authorization to extend the agreement with Advance Data ¢ 0 Processing Inc. to provide EMS billing services from July 1, 2007 through June 30,2008. 0 05/15/06 Resolution 2006-147 Second reading of ordinance repealing Chapter 3.72 of the E San Bernardino Municipal Code or resolution adopting revised EMS User Fee Z Program and authorizing execution of amendment to agreement with ADPI. 0 W E 10/18/04 Resolution 2004-333 approving the billing service agreement with Advanced Data Processing West, Inc. for first responder, paramedic, and membership E program fees. ¢ M Backeround• v The San Bernardino City Fire Department has provided Emergency Medical Services (EMS) at the Advanced Life Support (Paramedic) level to our residents and visitors since 1976. These o services are over and above the tax-funded functions of the Fire Department. As such,the Fire Department bills for those First Responder Paramedic services in an attempt to cover the Ce additional equipment, personnel, and training costs involved with providing our patients timely, v high quality Paramedic service. 0 Currently, the charge for these services is set at $200.00, a reduction from the initial charge of s $250.00. We have a subscription program, to provide our residents the ability to prepay a much E lower fee (currently $24) which covers out of pocket costs for themselves and their household Z members for the entire fiscal year for our Paramedic First Responder services. While the $24 L subscription fee does not cover the costs for even a single response, the additional revenue from E r residents that elect to subscribe, but do not utilize our services somewhat compensates for it. We c also have an exemption for low-income residents that qualify for the low income utility ¢ exemption program. Our fee structure is considerably less than the other cities in the area that charge for EMS/Paramedic response; their fees range between $300-350 for residents, $450 for E non-residents,and$48 for a subscription. it We are requesting the contract for billing services with Intermedix-ADPI be amended to the full a term of the bid proposal, from July 1, 2011 through June 30, 2013, with three (3) one-year Q renewal options. This company has provided billing services for our EMS services under the current contract since 2008 and has demonstrated a commitment to providing good service with a) v continuous improvement in efficiency and customer service. The bid proposal was published L U W Updated: 12/152011 by Mayra Ochiqui Pace? Packet Pg. 28 S.C.b 1453 locally and sent to the Chamber of Commerce and seven EMS Billing companies. Two a responses were received, one from Intermedix-ADPI and one from an additional vendor. No 0 responses were received from local vendors. Intermedix-ADPI's cost proposal did not increase x from the current contract and is an all-inclusive bid; reflecting their knowledge of the City and d their confidence in meeting the contract specifications. Additionally, Intermedix-ADPI has E worked closely with the City over the past four years and together with the implementation of the Q1 Electronic Patient Care Report data collection program they have increased collections by over - 60%. r d E m Entering into the contract for the full term provides a time frame in which to anticipate costs and changes in order to appropriately service the contract. Continuing with piecemeal extensions Q could lead to increased start-up and turn-over costs that would normally be amortized into a typical longer-term contract. Medical billing is significantly more complex with potential liabilities that do not occur with billing for standard City services(alarm response, water service, etc.). Federal regulations covering privacy and compliance with billing standards require unique and highly specialized expertise. In the future if the City wished to internally handle the medical billing function;the contract does have a thirty day opt-out clause that either party may exercise. Z r N E City Attorney Review: r E Supporting Documents: a M RESOLUTION TEMPLATE 1 (DOC) � ADPI Agreement Amendment Number One (DOC) 0 N d d C O d E 7 2 C d £ a c m E c N E m m m a a 0 c m E r U t0 Q Updated: 12/15/2011 by Mayra Ochiqui Page 3 Packet Pg. 29