HomeMy WebLinkAbout2011/07/19 Item 09/~~ CITY COUNCIL
AGENDA STATEMENT
~`~~ CITY OF
CHUTA VISTA
July19, 2011 Item
ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A REVISED AND RESTATED
AGREEMENT FOR BASIC AND ADVANCED LIFE
SUPPORT SERVICE WITH LAIDLAW MEDICAL
TRANSPORTATION INC, DBA AMERICAN MEDICAL
RESPONSE, AND AUTHORIZING THE MAYOR TO
EXECUTE THE AGREEMENT.
SUBMITTED BY: FIRE CHIEF p~~
REVIEWED BY: CITY MANAGER'/
4/STHS VOTE: YES ~ NO ~X
SUMMARY
On December 11, 2007 the City Council approved the Revised and Restated Agreement
with American Medical Response (AMR) for Basic and Advanced Life Suppor[ Ambulance
Service (2007 Agreement). The 2007 Agreement became effective for the period of
December 11, 2007 through May 31, 2011. The 2007 Agreement contained a provision for
two additional three-year extensions for AMR to continue providing ambulance services
subject to the City's discretion. The 2007 Agreement also contained a provision for AMR to
request rate adjustments for ambulance services. The 2007 Agreement expired on May 31,
2011 and was temporarily extended for a period of thirty days and subsequently another
sixty days and will expire on August 30, 2011.
The 2007 Agreement permits AMR to provide services to an Exclusive Operating Area
(EOA) that was adopted by the County of San Diego. This EOA consists of the City of
Chula Vista, Bonita/Sunnyside Fire Protections District, and the City of Imperial Beach. A
negotiation occurred between the parties of AMR, City of Chula Vista, City of Imperial
Beach, and Bonita/Sunnyside Fire Protection District. The City of Imperial Beach has
requested a longer term agreement, which includes a provision for five years with an
optional five year extension. The other parties of AMR and Bonita/Sunnyside Fire
Protection District are in agreement with Chula Vista Staff's recommendation to extend the
agreement three years with an option to extend the agreement an additional three years.
On June 21, 2011, Council directed Staff to propose an agreement with the parties of an
extension of two years with an option to extend another six months. This proposal was made
to the parties and agreed upon as an alternative, with the additional language that the City of
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July19, 2011, Item q
Page 2 of 5
Chula Vista cannot send out a Request for Proposal (RFP) for the services provided within
the agreement for a period of two years or the length of the extended agreement. AMR also
requests removal of the "Termination for Convenience" clause if the agreement is only
extended two yeazs.
Staff is presenting Council two options for consideration in this resolution:
Option 1 is to approve extending the agreement two years with an option to extend another
six months. This option would also change the agreement to reflect that the City of Chula
Vista agrees not to go out to bid on the services provided within the agreement for a period
of two yeazs. This option would also remove the "Termination for Convenience" clause in
the extended agreement.
Option 2 is to approve the original extension of the agreement for a period of three years
with an option to extend another three yeazs.
Staff recommends Option 2. Chula Vista has enjoyed along-term relationship with AMR
for the last 33 years. Staff has been working with AMR for the past two yeazs on a plan to
enhance the level of Emergency Medical Services to the citizens of Chula Vista. This plan
includes a six year phase-in of paramedic first responders within the Chula Vista Fire
Department. A significant benefit to our 2007 Agreement with AMR is the stability that a
longer term agreement provides. Extending this agreement for three yeazs with the option of
three additional years provides the stability needed as the fire department transitions to
providing the enhanced service level of pazamedic advanced life support, while providing
maximum flexibility by maintaining the "Termination for Convenience" clause.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance
with the California Environmental Quality Act (CEQA) and has determined that the
activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines
because the proposal consists of a governmental plan of action related to the City's
preparedness in the event of a natural or manmade disaster and which will not result
in direct or indirect significant physical impacts on the environment. Therefore, pursuant
to Section 15060 (c) (3) of the State CEQA Guidelines the activity is not subject to
CEQA. Thus, no environmental review is necessary.
RECOMMENDATION
That Council approves the resolution as written in Option 2, adopting the Revised and
Restated Agreement with AMR for Basic and Advanced Life Support Ambulance
Service, which includes a revised rate schedule for basic and advanced life support
ambulance transport rates, related service chazges, and new agreement period.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
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July19, 2011, Item
Page 3 of 5
The City is authorized by Government Codes Section 38794 and Municipal Code
sections 5.10.310 - 5.10.340 to contract for ambulance services. The City has contracted
with American Medical Response (formerly known as Hartson Medical Services) for the
provision of Basic and Advanced Life Support Ambulance services since 1989. The 2007
Agreement with American Medical Response (AMR) permits AMR to provide services
to an Exclusive Operating Area (EOA) that was adopted by the County of San Diego.
This EOA consists of the City of Chula Vista, Bonita/Sunnyside Fire Protections District,
and the City of Imperial Beach. On December 11, 2007, the City Council adopted a
revised and restated agreement (2007 Agreement) with AMR that clarified and reinforced
the following key stipulations:
• Definition of service requirements and performance standards to optimize service
delivery;
• Minirnum resource requirements for the number of ambulances, staffing and
equipment to be deployed for the provision of service;
• Provisions for termination that would provide the City with adequate notice in order
to avoid service interruptions;
• Insurance requirements for motor vehicles operated by AMR in order to protect the
City from liability;
• Hold harmless provisions that indemnified the City from liability arising from
negligent acts or omissions resulting from AMR's perforrance; and
• Renewal provisions that provided the flexibility to extend the agreement at their own
discretion.
This extended agreement as proposed in Option 2 will continue to clarify and reinforce the
key provisions stated above, while providing an opportunity to enhance the emergency
medical services provided to our citizens and the system. Toward that effort, the City has
been working for the past two yeazs with AMR to develop a plan to move Fire
Department first response to the advanced life support (ALS) level. The City believes that
changing to an ALS first response system will dramatically improve patient care and
outcomes. It will also benefit AMR directly with increased operational efficiencies and
cost savings as the transport agency.
Providing a long term agreement creates the stability needed to implement the City's plan
for providing ALS. The acquisition of advanced medical equipment along with training
our current firefighters to the paramedic level will take six years to complete. Extending
this agreement allows the fire department to continue to work with AMR on the
implementation process. The ALS plan has been fully developed and the City and
bazgaining group (Local 2180) continue to negotiate on labor issues related to the
program. Once negotiations are completed, this agreement becomes the foundation for an
additional side letter agreement between the City of Chula Vista and AMR providing for
Pazamedic First Response from the City and a change in the ambulance service rates
collected by AMR to fully fund the ALS program.
Request for Increase in the Basic and Advanced Life Support Ambulance Transport
Rates
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July19, 2011, Item
Page 4 of 5
Pursuant to section 5.7 of the revised and restated agreement, AMR has the reserved right
to request a fee increase in the event of extraordinary cost increases occurring in any of
the contract years. Extraordinary costs aze defined as an increase of 20% or more from
the previous contract year in any of the following categories:
• Vehicle physical damage insurance
• Professional liability insurance
• Worker's compensation insurance
• General Liability Insurance
• Gasoline, diesel, propane, oil and petroleum products
• Pharmaceuticals or medical supplies
Accordingly, the City Council reserves the right to approve or disapprove such a request.
As part of this revised and restated agreement, AMR is seeking a 911 rate adjustment.
This adjustment would bring the ALS Emergency Base Rate to $860.90. This rate
remains in the lower 30% of rates in Southern California and is substantially below the
Average Base Rate in San Diego County, which is approximately $1,591.00.
The justification for increasing the ALS emergency ambulance transport fee to $860.90
and allowing this rate to increase by 7% each year throughout the contract extension
period ending May 31, 2014 is attached and contained in an issue paper prepared by
AMR titled: "American Medical Response, Ambulance Rate Increase Justification, June
2011"
City of Chula Vista AMR Proposed ALS Rate Schedule:
Contract Year Base Rate Requested
Rate Year I Rate Increase Annual
Ad'ustment
Current $ 804.58 $ 860.90 $ 56.32 7%
Ma 2011/12 $ 860.90 $ 60.26 7%
Ma 2012/13 $ 921.16 $ 64.48 7%
May 2013/14 $ 985.65 $ 69.00 7%
DECISION MAKER CONFLICT
Not Applicable
Staff has reviewed the decision contemplated by this action and has determined that it is
not site specific and consequently the 500 foot rule found in California Code of
Regulations secfion 18704.2(a)(1) is not applicable to this decision.
CURRENT YEAR FISCAL IMPACT
There is no current yeaz fiscal impact associated with this request.
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July19, 2011, Item
Page 5 of 5
ONGOING FISCAL IMPACT
There is no fiscal impact associated with this resolution.
ATTACHMENTS
Prepared by: Dave Hanneman, Fire Chief, Fire Department
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RESOLUTION NO. 2011-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A REVISED AND
RESTATED AGREEMENT FOR BASIC AND ADVANCED
LIFE SUPPORT SERVICE WITH LAIDLAW MEDICAL
TRANSPORTATION INC., DBA AMERICAN MEDICAL
RESPONSE, AND AUTHORIZING THE MAYOR
T O EXECUTE THE AGREEMENT FOR ATHREE-YEAR
TERM
WHEREAS, the City is authorized by California Government Code Section 38794 and
Municipal Code Sections 5.10.310-5.10.340 to contract for ambulance services within its
jurisdiction; and
WHEREAS, the City has had an ongoing relationship with Laidlaw Medical Transport
Inc., dba American Medical Response (AMR) and formerly known as Hartson Medical Services
since 1989 to provide basic and advanced life support ambulance services; and
WHEREAS, an agreement entered into with AMR on November 1, 1998 granted AMR
the authority to provide basic and advanced life support ambulance services to the Exclusive
Operating Area (EOA) that was adopted by the County of San Diego. This EOA consists of the
City of Chula Vista, Bonita/Sunnyside Fire Protection District, and the City of Imperial Beach;
and
WHEREAS, this agreement was amended and was re-titled the Amended and Restated
Agreement and approved by Council on May 14, 2002; and
WHEREAS, the Amended and Restated Agreement commenced on June 1, 2002 and was
in effect for the three-year period ending May 31, 2005; and
WHEREAS, the Amended and Restated Agreement was extended by mutual option to
December 11, 2007; and
WHEREAS, additional updates to the Amended and Restated Agreement were submitted
to Council for approval on December 11, 2007; and
WHEREAS, Council approved the new Amended and Restated Agreement on December
11, 2007, set to expire on May 31, 2011; and
WHEREAS, the parties entered into a thirty (30) day extension on May 31, 2011; and
WHEREAS, the parties entered into a thirty (60) day extension on June 30, 2011; and
WHEREAS, the City wishes to continue the contractual relationship with AMR on the
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terms and conditions set forth in a Revised and Restated Agreement for a period of three (3)
years; and
WHEREAS, the Amended and Restated Agreement clarified and reinforced key
stipulations ensuring AMR's performance and service delivery throughout the EOA and thus
benefiting the members of the EOA; and
WHEREAS, pursuant to Section 17 of the Amended and Restated Agreement, the City
has the option to extend the Amended and Restated Agreement for one (1) additional three-year
period at the City's option; and
WHEREAS, pursuant to Section 20 of the Amended and Restated Agreement, the City
has the option to terminate the Amended and Restated Agreement for convenience by providing
180 days written notice; and
WHEREAS, the authorized Primary Rate Components that AMR is permitted to charge
for services rendered in the EOA are stipulated and are stated in the Side-Letter Agreement; and
WHEREAS, pursuant to Section 5 of the Revised and Restated Agreement, AMR
reserves the right to submit a request for increases to the Primary Rate Components; and
WHEREAS, pursuant to Section 5 of the Revised and Restated Agreement, the City
Council has sole discretion to approve or disapprove increases to the Primary Rate Components
during the lifetime of the Agreement; and
WHEREAS, pursuant to Municipal Code 2.56.070, the City Council may waive any
competitive bidding requirements where there is a commodity or service available from only one
known source as the result of unique performance capabilities, compatibility requirements or
market conditions, or the competitive bidding requirements as applied to the contract are
impractical, impossible, or the City interests would be materially better served by applying a
different purchasing process; and
WHEREAS, AMR has demonstrated through its past performance the ability to fulfill
previous contract requirements, provide competitive pricing for its services, sustain its
interoperability with the Chula Vista Fire Department and deliver longstanding quality services
to the community; and
WHEREAS, the City's interests would be materially better served by continuing its long-
term contractual relationship with AMR because of its performance capabilities, compatibility
requirements, and market conditions, including cost and existing service relationship with all
members of the EOA; and
WHEREAS, it is the intent and desire of the City Council to waive any competition
bidding requirements and enter into the Revised and Restated Agreement with AMR for the
reasons set forth herein.
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NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista waives any competitive bidding requirements and exercises its option to extend its
contractual relationship with AMR for the provision of basic and advanced life support
ambulance services.
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does
hereby approve the Revised and Restated Agreement with AMR to be effective retroactively, and
superceded the current extension agreement for sixty (60) days, from July I, 2011, through June
30, 2014, with an option to extend for one (1) additional three-year term thereafter.
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does
hereby authorize the Mayor to execute the Revised and Restated Agreement in substantially the
form presented with such minor modifications or clarifications as maybe authorized or required
by the City Attorney.
Presented by:
Dave Hanneman
Fire Chief
A yid as to fo y: ,
en ogins
ity Att ey
9-$
RESOLUTION NO. 2011-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A REVISED AND
RESTATED AGREEMENT FOR BASIC AND ADVANCED
LIFE SUPPORT SERVICE WITH LAIDLAW MEDICAL
TRANSPORTATION INC., DBA AMERICAN MEDICAL
RESPONSE, AND AUTHORIZING THE MAYOR
T O EXECUTE THE AGREEMENT FOR A TWO-YEAR
TERM
WHEREAS, the City is authorized by California Government Code Section 38794 and
Municipal Code Sections 5.10.310-5.10.340 to contract for ambulance services within its
jurisdiction; and
WHEREAS, the City has had an ongoing relationship with Laidlaw Medical Transport
Inc., dba American Medical Response (AMR) and formerly known as Hartson Medical Services
since 1989 to provide basic and advanced life support ambulance services; and
WHEREAS, an agreement entered into with AMR on November 1, 1998 granted AMR
the authority to provide basic and advanced life support ambulance services to the Exclusive
Operating Area (EOA) that was adopted by the County of San Diego. This EOA consists of the
City of Chula Vista, BonitalSunnyside Fire Protection District, and the City of Imperial Beach;
and
WHEREAS, this agreement was amended and was re-titled the Amended and Restated
Agreement and approved by Council on May 14, 2002; and
WHEREAS, the Amended and Restated Agreement commenced on June 1, 2002 and was
in effect for the three-year period ending May 31, 2005; and
WHEREAS, the Amended and Restated Agreement was extended by mutual option to
December 11, 2007; and
WHEREAS, additional updates to the Amended and Restated Agreement were submitted
to Council for approval on December 11, 2007; and
WHEREAS, Council approved the new Amended and Restated Agreement on December
11, 2007, set to expire on May 31, 2011; and
WHEREAS, the parties entered into a thirty (30) day extension on May 31, 2011; and
WHEREAS, the parties entered into a thirty (60) day extension on June 30, 2011; and
WHEREAS, the City wishes to continue the contractual relationship with AMR on the
9-9
terms and conditions set forth in a Revised and Restated Agreement for a period of two (2) years;
and
WHEREAS, the Amended and Restated Agreement clarified and reinforced key
stipulations ensuring AMR's performance and service delivery throughout the EOA and thus
benefiting the members of the EOA; and
WHEREAS, pursuant to Section 17 of the Amended and Restated Agreement, the City
has the option to extend the Amended and Restated Agreement for one (1) additional six-month
period at the mutual agreement of the parties; and
WHEREAS, should this term of Agreement be approved, AMR will request deletion of
Section 20 that provided the City with the option to terminate the Amended and Restated
Agreement for convenience by providing 180 days written notice; and
WHEREAS, AMR has requested that if the two (2) year term is approved that the City
agrees not to send the EOA contract out to bid during this time (but staff can begin preparation of
an Request for Proposal); and
WHEREAS, the authorized Primary Rate Components that AMR is permitted to charge
for services rendered in the EOA are stipulated and are stated in the Side-Letter Agreement; and
WHEREAS, pursuant to Section 5 of the Revised and Restated Agreement, AMR
reserves the right to submit a request for increases to the Primary Rate Components; and
WHEREAS, pursuant to Section 5 of the Revised and Restated Agreement, the City
Council has sole discretion to approve or disapprove increases to the Primary Rate Components
during the lifetime of the Agreement; and
WHEREAS, pursuant to Municipal Code 2.56.070, the City Council may waive any
competitive bidding requirements where there is a commodity or service available from only one
known source as the result of unique performance capabilities, compatibility requirements or
market conditions, or the competitive bidding requirements as applied to the contract are
impractical, impossible, or the City interests would be materially better served by applying a
different purchasing process; and
WHEREAS, AMR has demonstrated through its past performance the ability to fulfill
previous contract requirements, provide competitive pricing for its services, sustain its
interoperability with the Chula Vista Fire Department and deliver longstanding quality services
to the community; and
WHEREAS, the City's interests would be materially better served by continuing its long-
term contractual relationship with AMR because of its performance capabilities, compatibility
requirements, and market conditions, including cost and existing service relationship with all
members of the EOA; and
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WHEREAS, it is the intent and desire of the City Council to waive any competition
bidding requirements and enter into the Revised and Restated Agreement with AMR for the
reasons set forth herein.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista waives any competitive bidding requirements and exercises its option to extend its
contractual relationship with AMR for the provision of basic and advanced life support
ambulance services.
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does
hereby approve the Revised and Restated Agreement with AMR to be effective as of the date of
all parties signing the Agreement, for a period of two (2) years with an option to extend for one
(1) additional six-month term thereafter.
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does
hereby authorize the Mayor to execute the Revised and Restated Agreement in substantially the
form presented with such minor modifications or clarifications as maybe authorized or required
by the City Attorney.
Presented by:
Dave Hanneman
Fire Chief
A d as to fo y: ~
en ogins ~\
ity Att rney )
9-11