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HomeMy WebLinkAbout09 AMBULANCE CONTRACT EXTENSIONAgenda Item 9 AGENDA REPORT Reviewed: City Manager Finance Director N/A MEETING DATE: AUGUST 5, 2014 TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL FROM: JEFFREY C. PARKER, CITY MANAGER SUBJECT: APPROVAL OF EXTENSION TO 911 AMBULANCE SERVICE CONTRACT SUMMARY: This item is submitted for the approval of a six -month extension to the existing 911 ambulance contracts between the Doctor's Ambulance and the City of Tustin from September 1, 2014 to March 1, 2015. RECOMMENDATION: Authorize the Mayor to execute the submitted six -month contract extensions for the provision of 911 emergency medical transportation and related services. FISCAL IMPACT: None BACKGROUND: During the summer of 2004, the Orange County Fire Authority (OCFA) and its partner jurisdictions conducted a request for proposal process for the 19 Exclusive Operating Areas (EOAs) located within the OCFA's jurisdiction. From the RFP process, the City of Tustin entered into an agreement with Herren Enterprises Inc., dba as Doctor's Ambulance Service for the provision and administration of exclusive emergency ambulance transportation services within Exclusive Operating Area No. 23 — Tustin. The new contract was effective September 1, 2004, for an initial term of five years (through 2009) and with an option to extend the agreement for an additional five years (through 2014). On September 1, 2009, the City and Herren Enterprises, Inc., dba as Doctor's Ambulance Service entered into a "Renewal Agreement for Provision of Emergency Medical Transportation and Related Services," renewing the 2004 Agreement for an additional five -year term, effective from September 1, 2009 to August 31, 2014 (the "Renewal Agreement'). On February 9, 2011, the City approved and executed an agreement entitled "Consent to Transfer Agreement," providing for the transfer from Herren Enterprises, Inc., as Transferor to American Medical Response Ambulance Service, Inc., as Transferee of 100% of the stock issued by Transferor. In February 2014, the State Emergency Medical Services Authority (EMSA) notified the Orange County Emergency Medical Services Agency ( OCEMS) that, based on a court decision from Butte County, the OCEMS could not delegate the 911 Emergency Ambulance RFP process or contract administration to OCFA. At the time the notification was received from the State EMSA, OCFA staff had completed a significant amount of work on the RFP and was prepared to issue phase 1 of the RFP pending approval from OCEMS. With the transition of responsibility from OCFA to OCEMS, OCEMS took immediate action to continue with the process and acquire the additional staff needed to conduct the RFP process and administer the contracts. All 19 existing agreements, including the agreement between the City of Tustin and Doctor's Ambulance, are scheduled to automatically terminate no later than August 31, 2014. Due to the transition of the RFP responsibilities from OCFA to OCEMS, the final selection and award of new ambulance agreements will not be completed in time for successful bidders to take over and commence services by September 1, 2014. The RFP was released by OCEMS in May; proposals were due July 14; with final selections anticipated to occur in January 2015. To ensure system -wide consistency, OCFA staff, member cities and OCEMS staff requested an extension of the existing contracts, under the same terms and conditions, from the State EMSA. On May 1, 2014 the State EMSA authorized a six -month extension to the contracts beginning September 1, 2014 and ending March 1, 2015. The six -month extension, including retention of the exclusivity provision, is unprecedented. Historically when the State EMSA has granted an extension, it has generally been for no more than three months based on strong justification. Staff is requesting the City Council take action to extend for six - months the ambulance contract (September 1, 2014 to March, 2015) for the Exclusive Operating Area No. 23 — Tustin that was awarded by the City Council, under the same terms and conditions. FIRST AMENDMENT TO AGREEMENT FOR PROVISION OF FIRE/EMS EMERGENCY AMBULANCE TRANSPORTATION AND RELATED SERVICES WITHIN EXCLUSIVE OPERATING BETWEEN THE CITY OF TUSTIN AND AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC., DBA AS DOCTOR'S AMBULANCE SERVICE (EOA No. 23 — Tustin) THIS FIRST AMENDMENT TO THE AGREEMENT FOR PROVISION OF FHWEMS EMERGENCY AMBULANCE TRANSPORTATION AND RELATED SERVICES WITHIN EXCLUSIVE OPERATING AREA (the "Amendment") is made and effective as of September 1, 2014, by and between the CITY OF TUSTIN, a California municipal corporation, hereinafter referred to as "City", and AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC., a Delaware corporation, dba as DOCTOR'S AMBULANCE SERVICE, hereinafter referred to as "Contractor." RECITALS A. On September 1, 2004, the City and Herren Enterprises, Inc., dba as Doctor's Ambulance Service entered into that certain agreement entitled "Agreement for Provision of FireIEMS Emergency Ambulance Transportation and Related Services Within Exclusive Operating Area," concerning the provision and administration of exclusive emergency ambulance transportation services within Exclusive Operating Area No. 23 — Tustin (the "2004 Agreement "). B. On September 1, 2009, the City and Herren Enterprises, Inc., dba as Doctor's Ambulance Service entered into that certain agreement entitled "Renewal Agreement for Provision of Emergency Medical Transportation and Related Services," renewing the 20D4 Agreement for an additional five -year term, effective from September 1, 2009 to August 31, 2014 (the "Renewal Agreement "). C. On February 15, 2011, the City approved and executed that certain agreement entitled "Consent to Transfer Agreement," providing for the transfer from Herren Enterprises, Inc., as Transferor to American Medical Response Ambulance Service, Inc., as Transferee of 100% of the stock issued by Transferor. D. On February 3, 2014, the California Emergency Medical Services Authority ( "EMSA ") directed Orange County Emergency Medical Services ( "OCEMS ") to issue Requests for Proposals ( "RFPs ") and award contracts for nineteen Orange County Exclusive Operating Areas ( "EOAs "), inclusive of EOA No. 23 — Tustin. E. On May 1, 2014, the EMSA granted a six -month extension, beginning on September 1, 2014 and ending on March 1, 2015, to the OCEMS, to complete the RFP process 1015703.1 and award contracts for the areas formerly configured as nineteen separate EOAs, inclusive of EOA No. 23 — Tustin. F. Therefore, for purposes of protecting public health and safety, the City and Contractor now desire to extend the 2004 Agreement, as modified by the Renewal Agreement, under the same terms and conditions, for a period of six months, ending on March 1, 2015, in order to ensure that there is no interruption of services while the OCEMS completes its RFP process and awards new EOA ambulance transportation services contracts. NOW, THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, and in consideration of the foregoing recitals, which are hereby incorporated by reference into the agreement below, the City and Contractor agree as follows: AGREEMENT 1.0 First Amendment to the 2004 Agreement. 1.1 Section 7.1 of the 2004 Agreement is hereby amended to read as follows: "7.1. Pursuant to the First Amendment to this Agreement, this Agreement shall remain in effect until March 1, 2015 at 11:59 pm, or such earlier time that OCEMS awards a new EOA ambulance transportation services contract for the area formerly configured as EOA No. 23 — Tustin." 2.0 No Other Amendments. 2.1 All other terms and conditions of the 2004 Agreement shall remain in full force and effect, unless amended herein. (Signatures on Following Page] 1015703.1 2 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as follows, to be effective on September 1, 2014. AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC. dba DOCTORS AMBiAANOE SERVICE Sign: Nami Title: & N CITY OF TUSTIN Elwyn A. Murray, Mayor City of Tustin APPROVED AS TO FORM: David E. Kendig, City Attorney ORANGE COUNTY FIRE AUTHORITY APPROVED: Date: Date: By: Date: Keith Richter, OCFA Fire Chief 1015703.1