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Recommendation to Authorize the City Manager to Execute a First Amendment to Agreement with Wittman Enterprises, LLC, in an Amount Not-to-Exceed $467,500, with the Option to Extend the Term on a Year-by-Year Basis for up to Three Additional Years in an Amount Not-to-Exceed $275,000 per Year for Ambulance and Alarm Billing Services in an Amount Not-to-Exceed $1,292,500 for Five Years. (Fire 10032260-52090)
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To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Over the past five years, Wittman Enterprises, LLC (Wittman) has provided ambulance and false alarm billing services for the City of Alameda (City), ensuring accurate financial management for emergency response operations.
On July 18, 2023, City Council authorized the City Manager to execute an agreement with Wittman for these services. A First Amendment is now required, with a total five-year amount not-to-exceed $1,292,500, to maintain continuity of billing operations and address a compensation shortfall caused by higher than anticipated revenues from increased call volume and an ambulance fee increase.
BACKGROUND
In July 2023, City Council authorized the City Manager to execute a Service Provider Agreement with Wittman, utilizing the City of Sacramento Fire Department’s (SFD) competitive bidding process. The City entered into an agreement with Wittman to provide ambulance and false alarm billing services. Wittman was selected for its expertise in municipal emergency service billing and cost-effective financial support. The agreement authorized a two-year term with a not-to-exceed amount of $400,000 and included the option for three one-year extensions, totaling five years in an amount not-to-exceed $1,000,000.
Wittman’s compensation is based on a percent of net collections (minus refunds). Due to an increase in call volume and the ambulance fee increase, the revenues collected have been greater than anticipated hence the original agreement funding allocation of $400,000 for the first two years is insufficient. Therefore, an earlier-than-expected First Amendment to the Agreement (Exhibit 1) is requested to compensate for the shortfall and ensure uninterrupted billing services. This First Amendment includes a not-to-exceed amount of $467,500 for Fiscal Years 2023-2025 and a not-to-exceed amount of $1,292,500 for the total five-year agreement, inclusive of three one-year extensions. This is anticipated to provide sufficient funding for compensation while maintaining efficient billing operations.
DISCUSSION
Wittman has delivered improved billing accuracy, enhanced timing, and increased cost recovery, using stringent quality controls for ambulance and false alarm billing. Additionally, Wittman provides administrative support for ground emergency medical transport (GEMT) supplemental reimbursements, ensuring compliance and securing additional funding for Medi-Cal transport services.
This First Amendment, with the option to extend the term on a year-by-year basis for up to three additional years, with a five-year not-to-exceed amount of $1,292,500, will provide financial stability while maintaining efficient billing operations.
Under the first amendment, Wittman has agreed to maintain the same compensation terms, including:
• EMS billing fees: 3.99% of net collections (less refunds).
• Fire false alarm billing fees: 8.0% of net collections (less refunds).
• Monthly invoices and reports included.
• Unpaid invoices beyond 45 days subject to a 1.5% interest charge, unless in dispute.
• Compensation limits:
o FY 23-25 total compensation shall not exceed $467,500
o FY 25-26 total compensation shall not exceed $275,000
o FY 26-27 total compensation shall not exceed $275,000
o FY 27-28 total compensation shall not exceed $275,000
o Total five-year compensation shall not exceed $1,292,500
Given Wittman’s familiarity with the City’s billing systems, continuing this agreement provides operational stability and cost efficiencies to remain with the same billing firm by preventing disruptions to billing services.
ALTERNATIVES
• Approve the First Amendment to the Service Provider Agreement, with the option of two one-year extensions with Wittman Enterprises, LLC for a total five-year compensation amount not-to-exceed $1,292,500 to continue ambulance and alarm billing services.
• Do not approve the First Amendment to the agreement with Wittman Enterprises, LLC for ambulance and alarm billing services and provide an alternative direction to staff, which may include issuing a Request for Proposal for these services. This alternative may disrupt billing continuity and loss of revenue for the City, require onboarding a new service provider, and result in additional costs for a firm to familiarize itself with the City’s billing system.
FINANCIAL IMPACT
Approving the First Amendment to the agreement, with the option to extend two one-year extension with Wittman Enterprises, LLC will result in a not-to-exceed cost of $1,292,500, funded through ambulance and false alarm billing revenue collected by the City. The Fire Department has budgeted $467,500 for ambulance billing services for Fiscal Years 2023-25, which includes all payments through April 2025 as well as new invoices through June 30, 2025. Additionally, the City has projected $275,000 annually for Fiscal Years 2025-26, 2026-27, and 2027-28, ensuring sufficient financial resources to support the agreement.
The existing fee structure-3.99% of EMS net collections and 8.0% of Fire False Alarm net collections-remains unchanged, maintaining cost efficiency. Compensation limits under the agreement are allocated as follows:
• FY 23-25: Not-to-exceed $467,500 (including payments through April 2025 and new invoices through June 30, 2025).
• FY 25-26: Not-to-exceed $275,000.
• FY 26-27: Not-to-exceed $275,000.
• FY 27-28: Not-to-exceed $275,000.
• Total five-year compensation: Not-to-exceed $1,292,500.
This amendment ensures sufficient compensation and supports uninterrupted billing operations. (Fire 10032260-52090)
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code Section 2-59 (Authorization of Contracts). This action supports the Strategic Priority, “Enhance Community Safety & Services” in the City’s Strategic Plan.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute a first amendment to agreement with Wittman Enterprises, LLC, in an amount not-to-exceed $467,500, with the option to extend the term on a year-by-year basis for up to three additional years in an amount not-to-exceed $275,000 per year for Ambulance and Alarm Billing Services in an amount not-to-exceed $1,292,500 for five years.
Respectfully submitted,
Nicholas Luby, Fire Chief
By,
Anne Iturraran, Fire Administrative Services Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. First Amendment to the Service Agreement
2. Original Agreement