TITLE:
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TWO YEAR EXTENSION OF THE PROFESSIONAL SERVICES AGREEMENT WITH WITTMAN ENTERPRISES, LLC FOR AMBULANCE BILLING AND COST RECOVERY SERVICES RFP 18-03
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DEPARTMENT: COSTA MESA FIRE & RESCUE DEPARTMENT
PRESENTED BY: jASON PYLE, INTERIM FIRE CHIEF
CONTACT INFORMATION: JASON PYLE, INTERIM FIRE CHIEF (714) 754-5155
RECOMMENDATION:
recommendation
Staff recommends the City Council:
1. Approve Amendment Number Three to extend the term of the Professional Services Agreement for Ambulance Billing and Cost Recovery Services between Wittman Enterprises, LLC and the City of Costa Mesa for two (2) additional years to July 31, 2028, and to increase the per call cost by $1.00 from $23.00 to $24.00. (Attachment 1).
2. Authorize the City Manager and the City Clerk to execute the Amendment Number Three to Professional Services Agreement and future amendments to the agreement within the City Council’s authorized limits.
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BACKGROUND:
On August 7, 2018, City Council approved the Professional Services Agreement for Ambulance Billing and Cost Recovery Services between Wittman Enterprises, LLC and the City of Costa Mesa. (Attachment 2). This proposed third amendment would be the last extension authorized under the Agreement.
From the commencement of the Agreement until the present time, Wittman has met and fulfilled all contractual obligations and requirements. Based on its performance over the past six years, Wittman has maintained a well-managed organization staffed by professional personnel who are extremely knowledgeable and competent in the field of cost recovery.
ANALYSIS:
The City extended the Agreement in July of 2023 for one year (Amendment 1 - Attachment 3) to July 31, 2024, to allow for emergency ambulance billing services to continue. Section 4.2 of the Agreement allows the City to terminate the Agreement at any time with written notice to Wittman if it is later determined that services will not be needed for the entire time period of the extension. The City extended the Agreement in July of 2024 for a period of two years through July 31, 2026 (Attachment 5) to allow for emergency ambulance billing services to continue. Section 4.2 of the Agreement allows the City to terminate the Agreement at any time with written notice to Wittman if it is later determined that services will not be needed for the entire time period of the extension.
The proposed Amendment Number Three utilizes the fourth and fifth of the five one-year extensions of the Agreement and extends the term of the Agreement to July 31, 2028, per Section 4.0.
1. Cost - Wittman’s best price option. Wittman continues to provide the cost option for either “Price Per Call” or “Percent of Net.” Based on our current and future call volume and collection rates, the better of the two formulas is “Price Per Call” and it is advantageous for the City.
a. Amendment No. Three increases the price per call option from $23.00 to $24.00.
The original Terms and Conditions of the Agreement, “Sections 2.0 Compensation and Billing,” remain unchanged except for the $1.00 increase to the “Price per Call” cost.
2. Interagency Operations - Wittman is the current Ambulance Billing Service Provider for the City of Newport Beach Fire Department and the City of Huntington Beach Fire Department. The majority of our mutual aid requests are from the cities of Newport Beach and Huntington Beach. As all three Fire Departments operate their own Ambulance Service, there is greater efficiency in having the same billing agent process all mutual aid ambulance billing requests.
ALTERNATIVES:
Since Wittman’s services have satisfied and exceeded the obligations, requirements, and expectations of the original Agreement, no other alternatives were considered.
FISCAL REVIEW:
The increase of $1.00 in the “Price Per Call” option from $23.00 to $24.00 is estimated to have an $8,000 annual impact. Due to increased efficiencies in data acquisition and field personnel experience in program input, the total annual estimated cost of $192,000 will be lower than the not-to-exceed amount of $240,000.00.” The increased cost is fully offset by revenues from paramedic fees collected in the General Fund (Fund 101).
LEGAL REVIEW:
The City Attorney’s office has reviewed this report and Amendment Number Three and approves them both as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council Goal:
• Strengthen the Public’s Safety and Improve the Quality of Life.
CONCLUSION:
Staff recommends the City Council approve Amendment Number Three to the Professional Services Agreement for Ambulance Billing and Cost Recovery Services between Wittman Enterprises, LLC and the City of Costa Mesa and to authorize the City Manager to execute the Amendment. The annual cost of services shall not exceed $240,000.00.