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Home My WebLink About25G - AGMT - PARAMEDIC BILLINGREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 16, 2019 TITLE: APPROVE A SIX MONTH EXTENSION TO SECOND AMENDED AGREEMENT FOR PARAMEDIC/MEDICAL BILLING AND COLLECTION SERVICES WITH WITTMAN ENTERPRISES, LLC FOR UP TO $200,000 {STRATEGIC PLAN NO. 7, 5F} CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER T CITY10kNAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute a six month extension to the second amended agreement with Wittman Enterprises, LLC, ("Wittman") effective July 1, 2019 through December 31, 2019, extending the current two-year agreement that expired on June 30, 2019, for an amount of $200,000 subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Treasury & Customer Service Division of the Finance and Management Services Agency ("Treasury Division") is responsible for administering the City's paramedic/medical billing and collection services agreement. The task is accomplished utilizing a third party agent/provider, Wittman Enterprises, LLC (Wittman). The primary tasks for Wittman are as follows: 1) Seek reimbursement for emergency medical services and transport that the City provides through Orange County Fire Authority (OCFA) and the City's third party ambulance service provider, CARE Ambulance 2) Comply with Medicare, Medi-Cal and private insurance requirements; and 3) Facilitate alternate methods of repayment with patients. In April 2014, the City released a Request for Proposals (RFP) for paramedic/medical billing and collection services. Wittman was the sole qualifying responding agent/provider and was awarded a three-year contract (#A-2014-145) from July 1, 2014 through June 30, 2017 followed by an additional two-year amendment (#A-2017-120) expiring June 30, 2019. Wittman's fees are contingent upon successful billing and collection of paramedic/medical services provided 25G-1 Second Amended Agreement for Paramedic/Medical Billing and Collection Services with Wittman Enterprises, LLC July 16, 2019 Page 2 through the City's contracts with the OCFA and CARE Ambulance. Under the terms of the current two-year amendment, Wittman's fee rate is 6.3% of revenue collected. Consideration was originally given to "piggy -backing" on an RFP issued by the City of Anaheim for similar services for which Anaheim awarded a contract in May 2019. However, after detailed analysis by Treasury Division staff, the range of billing services support provided by Orange County Fire Authority, while similar to that provided by the City of Anaheim Fire Department, does not sufficiently match the first responder billing services requirement under the City of Anaheim's Request for Proposals. Consequently, the City's purchasing policy requirements for piggy -backing on another local agency's RFP and contract cannot be met. Extending the current agreement for an additional six months will allow the City time to independently prepare and release an RFP in connection with future paramedic/medical billing and collection services for the City. City staff anticipates releasing the RFP in early September 2019 and proposing a contract for City Council approval in December 2019. Largely as a result of Wittman's efforts, the City's General Fund is in receipt of approximately $5.1 million dollars related to Paramedic Services Charge (revenue account) from July 2018 through May 2019. As a result, Wittman's fees for the period July 2018 through May 2019 is approximately $300,000 (or 6.3% of revenues collected). STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal #7 - Team Santa Ana, Objective #5 (create a culture of innovation and efficiency within the organization, Strategy F (explore opportunities to engage with outside agencies, both private and public, to share information and increase efficiencies). FISCAL IMPACT Funds for the proposed extension (July 2019 through December 2019) are budgeted and available in the amount of $200,000 in the General Fund — Fire Suppression/EMS account (no. 01115330-62300). &u Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibit: 1. Agreement WH:JI 25G-2 EXHIBIT 1 SECOND AMENDMENT TO AGREEMENT THIS SECOND AMENDMENT TO AGREEMENT, made and entered into this 16rh day of July, 2019 by and between Wittman Enterprises, LLC, a California Limited Liability Company (hereinafter "Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City"). RECITALS: A. The parties entered into an ambulance and paramedic billing and collection services agreement for the City's Emergency Medical Services (EMS) and Emergency Medical Transport Services (EMTS) Programs (Agreement #A-2014-145) dated June 17, 2014 (hereinafter "said Agreement") by which Consultant has provided ambulance and paramedic billing and collection services to the City. B. The original Term of said Agreement was three (3) years effective as of July 1, 2014 and ending June 30, 2017. C. In accordance with the terms and conditions of said Agreement, the parties mutually agreed to amend the Term, Scope of Services, and Compensation to provide for an additional two (2) year period beginning July 1, 2017 and ending June 30, 2019 (hereinafter "First Amendment to Agreement") #A-2017-120. D. The parties now wish to enter into a further agreement to amend the Term of the Agreement to provide for an additional six (6) month period beginning July 1, 2019 and ending December 31, 2019 (hereinafter "said Second Amendment to Agreement"). NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. Section 1 of said First Amendment to Agreement, "SCOPE OF SERVICES" shall remain operative and in effect during the amended Term of this Second Amendment to Agreement. 2. Section 2 of this Second Amendment to Agreement, "TERM" shall be amended as follows: This Second Amendment to Agreement shall commence on July 1, 2019 and terminate on December 31, 2019, unless extended by subsequent amendment of this Agreement or terminated earlier in accordance with Section 12 of said Agreement. 3. Section 3, subsection ii of said First Amendment to Agreement, "COMPENSATION" shall remain operative and in effect during the Term of this Second Amendment to Agreement. 25G-3 4. This Second Amendment to said Agreement must be signed below and may be signed in counterpart and delivered by fax, emailed as a PDF (Portable Document Format) file attachment, or by other means that displays the original or a copy of the signatures. Any subsequent amendments may be signed and delivered in the same manner. 5. Except as hereinabove modified, the terms and conditions of said Agreement remain unchanged and in full force and effect. /// (Signatures on following page) 25G-4 IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to Agreement the date and year first above written, ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM:: SONIA R. CARVALHO City Attorney By. LISA STORCK Assistant City Attorney RECOMMENDED FOR APPROVAL: Kathryn Downs, Executive. Director Finance & Management Services Agency CITY OF SANTA ANA. KRISTINE RIDGE City Manager CONSULTANT: KathryGarcia Vice -President Wittman Enterprises, LLC FEIN # 68-0456021 25G-5 25G-6