DATE: November 6, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: amendment 4 to the PROFESSIONAL SERVICES AGREEMENT WITH WITTMAN ENTERPRISES, LLC, FOR EMERGENCY MEDICAL SERVICES (EMS) BILLING SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 4 to the Professional Services Agreement (PSA) with Wittman Enterprises, LLC, for Emergency Medical Service billing services, with compensation based on a percentage of collections from net collected revenues, with a one-year contract expense estimated at $349,800, to extend the term of the agreement to October 15, 2025, appropriate $15,115 from General Fund Unassigned Fund Balance; and authorize the City Manager to execute the amendment.
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BACKGROUND AND ANALYSIS
On October 17, 2012, the City Council approved a three-year Professional Services Agreement with Wittman Enterprises (Wittman) to provide EMS billing services. The agreement allowed for two one-year extensions.
On September 16, 2015, the City Council approved Amendment 1 extending the term of the agreement to October 16, 2018 utilizing the City of Carlsbad’s competitive bidding process.
On October 17, 2018, the City Council approved Amendment 2 extending the term of the agreement to October 15, 2023 with five one-year extension options and revising compensation for service performed utilizing the City of Costa Mesa’s competitive bidding process.
On September 27, 2023, the City Council approved Amendment 3 which executed the first of five one-year extension options extending the term of the agreement to October 15, 2024 and adjusted compensation for services performed.
Amendment 4 would execute the second of five one-year extensions extending the term of the agreement to October 15, 2025.
Wittman Enterprises has been billing and collecting for Oceanside’s emergency medical services for over 12 years and the company continues to demonstrate competency, professionalism, expeditiousness, and a service-oriented focus. The company’s sole objective is to provide complete ambulance billing services which has been a tremendous resource and service to City staff and citizens. The majority of their clients are government agencies located in California with over a dozen clients in San Diego County.
Pursuant to the terms of Amendment 3 the compensation rate is 3.60% of monthly net collected revenue. The rate is dependent upon the City’s participation in the Public Provider Ground Emergency Medical Transport Intergovernmental Transfer Program (PP-GEMT IGT) which provides for reimbursement from the State of California’s Department of Health Care Services (DHCS) to the City for specific ambulance transports. The City Council approved participation in the program on December 21, 2022. Upon the City’s separation or the discontinuance of the PP-GEMT IGT program the compensation rate shall be increased to 4.0% of monthly net collected revenue effective the next monthly billing cycle. Net collected revenue is stated as a percentage of collected revenue, minus any refunds or adjustments.
Revenues to the City have increased from $4.9 million to $8.5 million annually in the past five years and are expected to continue to grow with participation in the PP-GEMT IGT program and increasing calls for service.
FISCAL IMPACT
The fiscal impact is a function of the amount collected, thus not definitive at this time. Based on historical net collected revenues the estimated expense of Amendment 4 for one year is $349,800. The contract expense is charged to Business Activities Professional Services account 212010101.5305 and is estimated to be approximately $262,350 for FY 2024-25 with a current budget of $247,235. Staff is requesting to appropriate $15,115 from General Fund Unassigned Fund Balance account 101.3100.0001 which has an available balance of $3.3 million. Therefore, sufficient funds are available. Total estimated contract expense of $87,450 for FY 2025-26 will be included in the regular budget cycle. If net collected revenue continues to grow, or the 4.0% compensation rate is enacted, a budget adjustment will be processed to increase both the revenue and expenses.
|
Description |
Amount |
Request to Appropriate |
Account Number |
Funding Source Requested |
Available Balance |
|
Amendment 4 to PSA FY 2024-25 |
$262,350 |
$15,115 |
Business Activities Professional Services 212010101.5305 |
General Fund Unassigned Fund Balance |
$3.3M |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Jennifer Rhoades, Management Analyst
Reviewed by: Jill Moya, Financial Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Amendment 4