Title
Recommendation to Authorize the City Manager to Negotiate and Execute a Two-Year Agreement with Wittman Enterprises, LLC, Substantially in the Same Form as Attached, for Ambulance and Alarm Billing in an Amount Not-to-Exceed $400,000 with the Option of Three One-Year Extensions for a Total Not-to-Exceed Amount of $1,000,000 for a Total of Five Years. (Fire 10032260)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
For the past five years, Wittman Enterprises, LLC (Wittman) has provided ambulance and alarm billing services for the City of Alameda (City). Staff recommends approving the proposed Service Provider Agreement with Wittman as a sole source procurement. Consistent with administrative procurement regulations, the City Manager determined it is unnecessary to follow the City’s administrative selection procedures in awarding this Agreement to Wittman, given that the City has experienced satisfactory services from Wittman at a reasonable cost for the past five years. The proposed Service Provider Agreement (Agreement) compensates Wittman in the amount not-to-exceed $200,000 each year for a total of $400,000 for the initial two-year term. The proposed Agreement provides the option for extending the term on a year-by-year basis for up to three additional years, for a total five years and compensation not-to-exceed $1,000,000. The procurement of this agreement provides continuity of Fire Department ambulance and False Alarm billing services provided by Wittman.
Wittman provides similar services to the following California EMS and Fire Agencies: Berkeley, Albany, Piedmont, San Ramon, Marin County and Moraga Orinda.
BACKGROUND
On July 10, 2018, City Council authorized the City Manager to execute a Service Provider Agreement with Wittman for a one-year term with the option for four one-year extensions for a total five-year not to exceed $1,000,000.
The initial procurement with Wittman was piggybacking on the City of Sacramento Fire Department’s (SFD) competitive bidding process for ambulance billing services under a Request for Proposals. SFD had evaluated the proposals submitted based on experience, qualifications, methodology and approach of work, pricing, and references. As a result, Wittman was awarded SFD’s ambulance billing contract.
The Alameda Municipal Code, Subsection 2-61-7, Joint Purchases with Public Agencies, provides authority for the City to use another government agency’s competitive bidding process to purchase materials, supplies, equipment, vehicles, and apparatus, “provided the purchase is the result of competitive bidding or proposal and is made in compliance with the competitive bid or proposal requirements of any participating agency or organization in a manner that is consistent with law.”
Based on this procurement method, on August 1, 2018, the City executed an agreement with Wittman to provide billing services, which included four one-year extensions.
DISCUSSION
Wittman provides improved billing accuracy, timing, and cost recovery with their enhanced quality controls in processing the Fire Department’s ambulance and false alarm billing. In addition to providing billing services Wittman provides the following additional administrative support services:
• Emergency medical transport data for the required Ground Emergency Medical Transport (GEMT) supplemental reimbursement program. This program provides additional funding to eligible governmental entities that provide GEMT services to Medi-Cal beneficiaries. The Fire Department recently received a total of $525,250 from the Department of Health Care Services for submitted Cost Reports for Fiscal Years 2018/19, 2019/20, 2020/21 and 2021/22.
• Data for the GEMT Quality Assurance Fee (QAF) quarterly reporting. Department of Health Care Services GEMT QAF provides supplemental Medi-Cal payments to GEMT providers. The QAF increases reimbursement to GEMT providers by application of an add-on to the fee-for-services (FFS).
Wittman agreed to the same terms of compensation for the new agreement as follows:
a. At the end of each month, Provider shall submit to the City an invoice for the total amount of work done the previous month. Pricing and accounting of charges are to be according to the included fee schedule.
b. Emergency Medical Service (EMS) Billing Fees
a. Percentage of Net Collections minus refunds: 3.99%
b. Monthly reports: included
c. Fire False Alarm Billing Fees
a. Percentage of Net Collections minus refunds: 8.0%
b. Monthly reports: included
d. The total compensation for the work under this proposed Agreement is not-to-exceed 3.99% of all monies collected by Provider for EMS provided by City less refunds and 8.0% of all monies collected by the Provider for Fire False Alarm services provided by the City less refunds.
e. Provider invoices unpaid by more than forty-five (45) days are subject to a monthly interest charge of 1.5% unless in dispute.
ALTERNATIVES
• Approve the Wittman two-year agreement with three additional one-year extensions.
• Not approve the new proposed two-year agreement and issue a new Request for Proposals for Ambulance Billing and False Alarm Billing Services and extend the current agreement until such a time a new Service Provider Agreement can be executed.
• Approve a two-year agreement and not have an option for the three extensions on a year-to-year basis.
• Approve a one-year agreement and require the Fire Department to issue a Request for Proposal prior to the end of the one-year period
FINANCIAL IMPACT
The funds for this agreement are budgeted annually in the Fire Department’s Emergency Medical Services Division, Ambulance Billing account (10032260-52090). The Department has budgeted $271,000 in Ambulance Billing in order to be conservative and account for increased cost recovery efforts, as well as potential fee increases, the City will only be billed as a percent of monies collected. The billing service fee under this Agreement is not-to-exceed 3.99% of all monies collected for EMS services provided by the City less refunds and 8.0% of all monies collected for Fire False Alarm services provided by the City less refunds. In Fiscal Year (FY) 2022-23, the City will have paid approximately $150,000 for ambulance billing services and anticipates paying between $150,000 and $200,000 for FY 2023-24. However, for FY 2022-23, this expense was offset by approximately $4 million in ambulance and $30,000 in false alarm billing revenue. Projected revenue for FY 2023-24 is $4,000,000 in ambulance and $20,000 in false alarm billing revenue.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code and all policy documents.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in CEQA Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
This action is consistent with the City’s Safe Climate Resolution No. 15510.
RECOMMENDATION
Authorize the City Manager to negotiate and execute a two-year agreement, substantially in the same form as attached, in the amount not-to-exceed $400,000 with the option of three one-year extensions for a total not-to-exceed $1,000,000 between the City of Alameda and Wittman Enterprises, LLC for Ambulance and Alarm Billing.
Respectfully submitted,
Nicholas Luby, Fire Chief
By,
Monique Raqueno, Fire Admin Services Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Proposed Agreement