TITLE:
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AMENDMENT TO EXTEND TERM OF FALCK AMBULANCE SERVICES AGREEMENT
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DEPARTMENT: FIRE & RESCUE DEPARTMENT
PRESENTED BY: DANIEL A. STEFANO, FIRE CHIEF JASON PYLE, ASSISTANT FIRE CHIEF
CONTACT INFORMATION: JASON PYLE, ASSISTANT FIRE CHIEF, (714) 754-5155
RECOMMENDATION:
recommendation
Staff recommends approval of the attached Amendment Number One extending the term of the Ambulance Services Agreement with Falck Mobile Health Corp, (Previously known as Care Ambulance) for the continuation of emergency ambulance operator and support services until July 31, 2024, adjust the compensation as discussed herein, appropriate the increase of $550,00 in the Fire Department’s operating budget, and authorize the City Manager to execute the Amendment.
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BACKGROUND:
Pursuant to California Health & Safety Code Section 1797.201, because the City of Costa Mesa has provided and/or contracted for emergency ambulance services continuously at least since June 1, 1980, the City has retained all rights, remedies, and privileges regarding the provision, administration, and operational control of all prehospital Emergency Medical Services (EMS) within its jurisdiction, including, but not limited to, emergency ambulance response and patient transport services.
In accordance with its Section 1797.201 powers, on December 20, 2017 the City initiated a competitive process by issuing a “Request for Proposals,” coordinated by the Fire & Rescue Department, in which qualified ambulance companies were reviewed, analyzed, and compared. The Fire & Rescue Department chose to use the competitive process format outlined in California Emergency Medical Services Authority Publication #141 due to its efficiency, rather than developing a new format.
On July 17, 2018, the City Council accepted the proposal submitted by Care Ambulance Service, Inc., (now DBA as Falck) and authorized the Fire Department to negotiate an agreement for the provision of emergency ambulance operator services and support services. The City and Falck Ambulance Services entered into an agreement effective on August 1, 2018, at 7:30 a.m., for a period of five (5) years. The Ambulance Services Agreement allows for extensions of the term of five (5), one (1) year annual extensions.
ANALYSIS:
The term of the Agreement set forth in Section 4.1 is extended for one year through July 31, 2024. The terms set forth in Section 2.1 Compensation, will reflect the one (1) year annual compensation of not to exceed $2,400,000. Annual Compensation Package for ambulance operator services of $2,301,906 (Attachments 3 - Compensation Package updated).
The terms set forth in Section 2.1 Compensation, Additional Expenses Surge Unit/ Ambulance EMT Crew (on as needed basis), will reflect the updated terms, as reflected in Attachment 4; $300 per hour measured in 15-minute intervals at $75 per 15 min. Billing to City for Surge Unit will begin when the requested Falck unit goes “en route” and should the assigned Falck unit be canceled within the first five (5) minutes of going “en route” then there will be no billing to the City.
All other terms, conditions, and provisions of the Agreement not in conflict with this Amendment shall remain in full force and effect.
From the commencement of the current agreement until the present time, Falck Ambulance Service has met and fulfilled all contractual obligations and requirements. In fact, the Fire & Rescue Department has foundthat Falck Ambulance Service has helped foster a partnership that has been instrumental in maintaining Costa Mesa’s high-quality EMS system. Based on its performance over the past five years, Falck Ambulance Service has maintained a well-managed organization staffed by dedicated personnel who care about their mission and the patients they serve.
Extending the agreement to July 31, 2024, will allow for emergency ambulance staffing to continue. Section 4.2 of the agreement allows the City to terminate the agreement at any time with written notice to Falck Ambulance Service if it is later determined that services will not be needed for the entire time period of the extension.
ALTERNATIVES:
Falck Ambulance Service has satisfied, and in some cases, exceeded, the obligations, requirements, and expectations of the original Agreement, no other alternatives were considered.
FISCAL REVIEW:
The Falck Ambulance Service contract is increasing by $550,000, for an annual not to exceed contract amount of $2.4 million. Due to an increase of ambulance fees approved by the County of Orange, the City’s General Fund ambulance revenues have increased by approximately 20% in the last quarter of the fiscal year. This revenue is expected to continue to increase in FY 2023/24, and will offset the additional contract amount of $550,000 for a net neutral impact to the General Fund.
LEGAL REVIEW:
The City Attorney’s Office reviewed this report and Amendment Number One and approves them 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 that City Council:
Staff recommends approval of the attached Amendment Number One extending the term of the Ambulance Services Agreement with Falck Mobile Health Corp, (Previously known as Care Ambulance) for the continuation of emergency ambulance operator and support services until July 31, 2024, adjust the compensation as discussed herein, appropriate the increase of $550,00 in the Fire and Rescue Department’s operating budget, and authorize the City Manager to execute the Amendment.