HomeMy WebLinkAboutReso 11-2016 RESOLUTION NO. 11-2016
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING AN AMBULANCE BILLING
SERVICES AGREEMENT AND A LOCKBOX SERVICES
AGREEMENT; AND AUTHORIZING THE CITY MANAGER
TO EXECUTE AN AMBULANCE BILLING SERVICES
AGREEMENT WITH NOVATO FIRE PROTECTION
DISTRICT AND A LOCKBOX SERVICES AGREEMENT
WITH THE CITY'S CURRENT BANKING SERVICES
PROVIDER WELLS FARGO BANK, AND TRANSITION
SERVICES OF ADPI, FOR A COMBINED TOTAL NOT TO
EXCEED $294,096 FOR FISCAL YEARS FY 2015-16, FY 2016-
17 AND FY 2017-18; AND AMENDING THE FY 2015-16
OPERATING BUDGET IN THE AMOUNT OF $97,471
WHEREAS, the South San Francisco Fire Department (SSFFD) has been operating its
own ambulance service since the early 1970's, and first employed paramedics in 1975; and
WHEREAS, beginning in 1995, in order to accommodate increasing ambulance service
volume and regulatory complexity,pursuant to Resolution 119-95 the City Council authorized an
agreement with a third-party ambulance billing contractor; and
WHEREAS, on September 18, 2015, SSFFD issued an ambulance billing Request for
Proposal (RFP) through regular mail service and posted in the bids and RFP page of the South
San Francisco website; and
WHEREAS, eight responsive proposals were received by the final filing date of October
16, 2015, and reviewed within the fire department; and three of the most promising proposals
were forwarded to the South San Francisco Information Technology Department for their
technical review and feedback; and
WHEREAS, the proposals were evaluated on the following: responsiveness of the
proposal related to the scope of work; quality, quantity and relevance of consultant's experience
and creativity; four references with at least one being a municipal reference; staff qualifications;
fees proposed for services to be performed; and additional information as determined by the
proposer; and
WHEREAS, after review of three most promising proposers' presentation materials
during their interviews and after conducting additional research, staff recommends Novato Fire
Protection District (NFPD) to provide the City with ambulance billing services; and
WHEREAS, NFPD has provided billing services for themselves and seven other
California fire agencies for ten years; and applies fire-agency oriented processes to maximize
ambulance transport revenues, and
WHEREAS, NFPD is familiar with reimbursement programs at the State and Federal
level that, as a public agency, can benefit South San Francisco; NFPD staff is recognized as
subject matter experts on the advancement of reimbursement programs such as the Ground
Emergency Medical Transportation Program (GEMT), and
WHEREAS, NFPD conducts billing operations similar to other billing providers with the
standard 30, 60, and 90 day notices; NFPD is prepared to recommend other collection strategies
such as additional notices, and outsourcing the collection of aged accounts to a third party
collection agency which can be defined by Council direction, and
WHEREAS, the cost of ambulance billing services as proposed by NFPD would be a flat
rate of$18 per patient transport; and
WHEREAS, staff recommends entering into a two year contract with NFPD;
WHEREAS, staff expects to initiate transfer of Patient Care Reports (PCR) to NFPD's
billing system beginning on April 1, 2016; and
WHEREAS, staff recommends that the City continue its current relationship with
Advanced Data Processing Incorporated (ADPI) to allow for a smooth transition to a new billing
contractor and continue revenue collection activities for the PCRs currently in their billing
queue; and
WHEREAS, staff also recommends that the City's Finance Director obtain a lockbox
with the City's current banking services provider; and
WHEREAS, staff recommends amending the FY 2015-16 Operating Budget in the
amount of $97,471 for continued billing activity by ADPI, transmittal of all PCRs to NFPD
starting on April 1, and setup of a lockbox; and
WHEREAS, funding for FY 2016-17 is anticipated at an amount of$109,500 which will
pay for continued collection activity prior to April 1, 2016 by ADPI, monthly dues for use of a
lockbox and full billing and revenue collection activities by NFPD (as shown in exhibit A); and
WHEREAS, funding needs for FY 2017-18 will be $87,125, which will close the ADPI
collection cycle, and be the second contract year with NFPD as well as continued lockbox
monthly service fees.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San
Francisco hereby takes the following actions:
1. Authorizes the City Manager to enter into a two year ambulance billing services
agreement with Novato Fire Protection District (NFPD) at a flat cost of $18 per
transport in a sum not to exceed $153,324, subject to approval as to form by the
City Attorney.
2. Authorizes the Finance Director to engage lockbox services with the City's
current banking services provider Wells Fargo Bank.
3. Authorizes the expense of a combined total of $294,096 over the life of the
ambulance billing contract for services with NFPD, setup and monthly fees of
banking lockbox and a continued relationship with ADPI.
4. Authorizes a budget amendment to the FY 15-16 Operating Budget in the amount
of $97,471 to provide for continued billing activity by ADPI, transmittal of all
PCRs to NFPD starting on April 1, and the setup of a lockbox with Wells Fargo
Bank.
5. Authorizes the City Manager to take any other related actions consistent with the
intent of this Resolution.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the City Council of the City of South San Francisco at a special meeting held on the 3ra day of
February, 2016 by the following vote:
AYES: Councilmembers Karyl Matsumoto, Richard A. Garbarino, and Liza Normandy
Vice Mayor Pradeep Gupta and Mayor Mark N. Addiego
NOES: None
ABSTAIN: None
ABSENT: None
ATTE T: v`e,
's' i d i, �� y Clerk