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~ITY.6F SAN BERNARDINO
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REQUEST FOR COUNCIL ACTION
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BARBARA PACHON,
DIRECTOR OF FINANCE
Subject:
EXECUTION OF CONTRACT WITH STAT
PHYSICIANS' SERVICES TO PROVIDE
BILLING SERVICES FOR THE COLLECTION
OF FEES FOR EMERGENCY TRANSPORTATION.
From:
Dept:
FINANCE
ORIGINAL
Date:
January 27, 1997
Synopsis of Previous Council action:
October 7, 1996 - Resolution 96-312 adopted authorizing the Fire Department to begin
operating a City-run emergency transportation service.
Recommended motion:
ADOPT RESOLUTION.
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Contact person: Barbara Pachon. Director of Finance
Phone:
x - 5242
Supporting data attached: STAFF REPORT. SUMMARY OF PROPOSALS
Ward:
Source:
$165.000
501 208 5505
FUNDING REQUIREMENTS:
Amount:
PROFESSIONAL SERVICES ~
Finance:~/~/0 y~
Council Notes: Fee is Daid as a Dercentaae of revenue actual Iv collected.
Res 97- 70
Agenda Item No.
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-CITY of SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
On October 7, 1996, the Mayor and Common Council adopted Resolution #96-312, authorizing the'
Fire Department to begin operating a City-run emergency transportation service. Staff has been
directed to have this service fully operational by May 1, 1997.
Currently the City contracts with a billing company for services related to first responder emergency
medical services. However, since emergency transportation is a substantially different venture than
first responder emergency medical services, and to ensure that the City is receiving the best price
and service available, the Finance Department requested proposals to provide emergency medical
and transport billing services.
Requests for proposals were mailed to eighteen prospective contractors. Additionally, a notice
requesting proposals was published in the local newspaper. Two of the eighteen proposals mailed
were returned by the post office marked "forwarding address expired." Six responses to the request
for proposal were received.
Finance staff, in conjunction with Jim Page of Emergency Care Information Center (ECIC), evaluated
the proposals submitted and rated them on a scale of 0-1 00. Compl iance with specifications, price
and experience were considered. Stat Physicians' Services, a San Bernardino-based and women-
owned company, received the highest over-all evaluation. Stat Physicians' Services is able to meet
the required specifications and has experienced staff. References were verified and staff visited the.
faci I ities of Stat Physicians' Services and found its operations to be satisfactory.
The fact that Stat has previous experience with the City of San Bernardino is an added benefit. Stat
currently provides the City with billing services for first responder/paramedic fees and has performed
this service to the City's satisfaction.
Stat Physicians' Services has priced its services at a commission rate of 1 % less than the rate it
currently charges to bill first responder/paramedic fees. Staff believes that this lower commission rate
combined with the fact that Stat Physicians' Services is a local organization, familiar with the City
of San Bernardino's paramedic program, will enhance emergency transport revenues.
Finance staff recommends that this resolution authorizing the execution of a three-year agreement
with Stat Physicians' Services to provide billing services for emergency medical and transport services
be adopted.
The Mayor and Council should note that the City Attorney's Office has expressed concern over the
term of the contract lasting three years instead of one. Finance staff recommends a three-year
contract for the following reasons:
The Request for Proposal that went out to prospective vendors specifically stated the
contract would be for a term of three years and pricing was based accordingly. The vendor
who does the billing will receive a percentage of revenues collected. The vendor who is
awarded the contract will have to invest in start-up costs and will not see a steady stream of
revenues for the first-half of the year. It is unfair to the vendor and inefficient to possibly
change vendors after only one year.
page 1 of 2
page 2 of 2
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The City is protected contractually in the following ways: 1.) the contract has a standard
termination clause that states the City may terminate the contract for any reason upon thirty
days written notice (this is standard for many contracts); 2.) at the City Attorney's direction,
staff added to the contract a paragraph relieving the City of any liability in the event the
Supreme Court rules that the City cannot operate an EMS transport (ambulance) service; 3.)
at the direction of the City Attorney's Office, the contract was re-written to state that after the
initial three-year period of the contract, the contract may only be renewed for up to two years
upon approval from the Mayor and Common Council.
Stat Physicians' Services has offered to sign an addendum to the contract releasing the City
from any liability or obligations. Stat is aware of the City Attorney's concerns and in an
effort to resolve this issue, is willing to sign an addendum to the agreement stating that in the
event the City decides to abandon the EMS transport business (for any reason), they will not
hold the City liable in any manner.
The City routinely issues contracts for multi-year periods and the standard termination
clause has been sufficient. In fact, the present contract with Stat Physician's Services is for <
a three-year period and contains the standard termination clause.
Finance recommends that the Mayor and Common Council authorize the execution of a three-year
agreement with Stat Physicians' Services to provide billing services for emergency medical and
transport services for the reasons outlined above.
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SUMMARY OF RFP'S SUBMITTED FOR
EMS/TRANSPORT BILLING SERVICES
Number of RFP's mailed:
Number of RFP's received:
18
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SUMMARY OF RFP EVALUATIONS
(100 points possible)
Stat Physicians' Services
(San Bernardino, CA)
88.40
Whitman Enterprises
(Sacramento, CA)
85.60
Medi-Collect
(San Bernardino, CA)
79.00
Phy Data
(San Bernardino, CA)
78.60
Empire Healthcare
(San Bernardino, CA)
66.80
Corey Financial
(Apple Valley, CA)
60.20
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AGREEMENT
THIS AGREEMENT is entered into this day of
1997 between by and between the CITY OF SAN BERNARDINO, a charter
City ("City") and a California Corporation doing business as STAT
Physicians' Services, hereinafter referred to as "Provider"
WITNESSETH:
WHEREAS, City did accept the proposal of the Provider,
NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
1. RECITALS
This Agreement is made and entered into with respect to the
following facts:
A. The City has implemented an emergency medical and
transportation program for its residents and the City
will bill those who use the service; and,
B. That Provider is qualified to provide such billing
services to the City; and, therefore, the City has
elected to engage the services of Provider upon the terms
and conditions hereinafter set forth.
2. SERVICES
Provider shall perform those services specified in that
certain proposal dated December 10, 1996, hereinafter called
"Proposal", a copy of which Proposal is on file in the Office
of the City Clerk and by this reference incorporated herein
and made a part hereof though fully set forth herein.
Performance of the work specified in said Proposal is made an
obligation of Provider under this Agreement, subject to any
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changes made subsequently upon that mutual written agreement
of the parties.
SCOPE
The services to be performed by Provider under this Agreement
shall include, but are not limited to, those services
specified in Proposal.
FEE
Compensation to Provider for the total services to be rendered
pursuant to this Agreement shall be in am amount of not to
exceed seven percent (7%) of amounts collected by Provider
under the billing program. Said amount shall be payable to
Provider by City within fifteen (15) days of receipt of
monthly invoice.
EXTRA SERVICES
No extra services shall be rendered by Provider under this
Agreement unless such extra services first have been
authorized in writing by the City.
PAYMENT BY CITY
Payment for all services rendered pursuant to this Agreement
shall be made in accordance with Paragraph 4 hereof.
CITY SUPERVISION
The Finance Director of the City of San Bernardino, or his/her
designee, shall have the right of general supervision of all
work performed by Provider and shall be the City's agent with
respect to obtaining Provider's compliance hereunder. No
payment for any services rendered under this Agreement shall
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be made without the prior approval of the Finance Director or
his/her designee.
TERM
The term of this Agreement shall be for three years,
commencing May 1, 1997 and continuing to and including April
30, 2000. Upon expiration of the term of this Agreement,
City, upon approval by the Mayor and Common Council, shall
have the right to extend the same for an additional two (2)
year period to and including April 30, 2002. Should City
elect to extend the term of this Agreement, City shall so
notify the Provider in writing thirty (30) days prior to April
30, 2000.
TERMINATION OF AGREEMENT
The City shall have the right to terminate this Agreement upon
giving a thirty (30) written notice of such termination to
Provider. In the event of such termination, the City
Administrator, or his/her designee, based upon termination,
shall determine the amount of fees to be paid to Provider, for
such finding by the City Administrator, or his/her designee,
and approved by the San Bernardino Mayor and Common council,
shall be final and conclusive as to the amount of such fee.
INDEPENDENT CONTRACTOR
Provider shall act as an independent contractor in the
performance of the services provided for in this Agreement and
shall furnish such services in Provider's own manner and
method and in no respect shall Provider be considered an agent
or employee of the City.
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NONASSIGNMENT
This Agreement is not assignable either in whole or in part by
Provider without the written consent of City.
INDEMNIFICATION
Provider hereby agrees to, and shall hold city, its elective
and appointive boards, officers, agents, and employees,
harmless from any liability for damage or .claims for damage,
for personal injury, including death, as well as from claims
for property damage which may arise from Provider's negligent
acts, errors or omissions under this Agreement. Provider
agrees to, and shall defend City and its elective and
appointive boards, officers, agents and employees form any
suits or actions at law or in equity for damages caused, or
alleged to have been caused, by reason of any of the aforesaid
negligent acts, errors or omissions.
EOUAL OPPORTUNITY CLAUSE
Provider shall not discriminate in its recruiting, hiring,
promotion, demotion or termination practices n the basis of
race, religious creed, color, national origin, ancestry, sex,
age or physical handicap in the performance of this Agreement
and shall comply with the provisions of the State Fair
Employment Practices Act as set forth in Part 4.5 of the
Division 2 of the California Labor Code, the Federal Civil
Rights Act of 1964, as set forth in Public Law 88-352, and all
amendments thereto; Executive Order 11246; and all
administrative rules and regulations issued pursuant to such
acts and order.
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UNAUTHORIZED ALIENS
Provider hereby promises and agrees to comply with all of the
provisions of the Federal Immigration and Nationality Act (8
USCA 1101, et weq.), as amended: and, in connection therewith,
shall not employ unauthorized aliens as defined therein.
Should Provider so employ such unauthorized aliens for the
performance of work andlor services covered by this contract,
and should the Federal Government impose sanctions against the
City for such use of unauthorized aliens, Provider hereby
agrees to, and shall, reimburse City for the cost of all such
sanctions imposed, together with any and all costs, including
attorney's fees, incurred by the City in connection therewith.
The costs, salary and expenses of the City Attorney and
members of his office in enforcing this contract on behalf of
the City shall be considered as "attorney's fees" for the
purposes of this paragraph.
JUDICIAL DECISIONS
This agreement shall be of no force and effect and no
liability anlor damages shall be assigned or assessed to
either party should City be limited, in whole or part, from
carrying out its obligations hereunder due to the decision of
the California Supreme Court in the case of County of San
Bernardino, et al. v. City of San Bernardino, Supreme Court
Case No. S050179 now pending, or any other judicial decision
subsequent to the execution of this Agreement.
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1 AGREEMENT WITH STAT PHYSICIANS' SERVICES FOR BILLING SERVICES.
2
3 IN WITNESS THEREOF, the parties have executed this Agreement
4 on the day and year first above written.
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6 City of San Bernardino
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By:
Tom Minor, Mayor
Attest:
Rachel Clark, City Clerk
Approved as to form
and legal content:
James F. Penman,
City Attorney
By:
Provider:
STAT PHYSICIANS' SERVICES
P.O. Box 2310
San Bernardino, CA 92406
By:
Patricia Scott, Owner
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