Title
a. Approve and Authorize the Director of Health to sign and execute the third one (1) year contract extension (Attachment C-3).
b. Approve and Authorize the Director of Health to execute amendment to Exhibit D (Attachment C-2) refining our zone response times; and
c. Approve and Authorize the rate increase of 2.75% pursuant to section 17.2 of the Agreement for 2013 (Attachment C-1). (REVISED REPORT VIA SUPPLEMENTAL)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and Authorize the Director of Health to sign and execute the third one (1) year contract extension (Attachment C-3).
b. Approve and Authorize the Director of Health to execute amendment to Exhibit D (Attachment C-2) refining our zone response times; and
c. Approve and Authorize the rate increase of 2.75% pursuant to section 17.2 of the Agreement for 2013 (Attachment C-1).
SUMMARY:
The Emergency Medical Services (EMS) Agency is seeking Board of Supervisor approval to authorize the Director of Health - to sign and execute the third one (1) year ambulance contract extension and amendment with American Medical Response - West (AMR) for the period of January 31, 2017 through January 31, 2018 in accordance with the recommendation received by the Emergency Medical Coordination Committee.
DISCUSSION:
On December 15, 2009 the Board approved and authorized the Director of Health to enter into a 5 year agreement, effective January 30, 2010 with AMR, to provide Advance Life Support Ambulance Services that includes the option for - five one-year additional extensions.
AMR submitted their third extension request on October 30, 2012 (Attachment A), pursuant to section 6.0 of Agreement No. A-11610. Additionally, pursuant to section 17.2 of the agreement, a rate increase is to be requested by November 1 of each year. AMR will be requesting a rate increase of two point seven-five percent (2.75%) for 2013 at this time. AMR has not sought any rate increases for the previous years (2 years) of this contract.
The EMS Agency, with concurrence of the Emergency Medical Coordination Committee (EMCC), has determined under contract Section 6 "Renewal Provisions" (Attachment B) AMR has met and exceeded the minimum requirements under the provision of earning the third one (1) year contract extension in the following areas:
AMR
· Has exceeded 90% contract response time compliance for each Priority each month of the last contract year.
· In compliance with clinical performance.
· In compliance with financial requirements.
· Has been able to limit response-time disparity by region of the county.
Under section 17.2 of the agreement AMR may implement a regular and ordinary annual rate increase effective each February 1 of the contract term. The rate increase request is due to the EMS Director by November 1, AMR submitted notice of rate increase within their October 30, 2012 letter. Under terms of the agreement with rate increase calculations provided under sections 17.2.1 and 17.2.2, AMR is eligible to implement a rate increase of nine point seven-eight percent (9.78%) however has elected to seek an increase of two point seven-five percent (2.75%). The EMS Agency has confirmed AMR's calculations and the EMCC have concurred with the request for the rate increase. The new rate will amend and replace Exhibit B (Attachment E).
In addition, the EMS Agency is seeking to amend and replace Exhibit D (Attachment C-2) to better refine county response time requirements. The updated response zone maps were developed with input from the EMS Agency, AMR-West and the effected fire district - Monterey County Regional Fire District.
The EMCC provided a final review of the contract extension request and rate increase including the minimum requirements needed to earn an extension, rate increase and contract amendments at its January 2012 meeting. The EMCC, after an extensive discussion including receiving comments from the public and several fire chiefs, has recommended approval by a vote of 8 for and 3 against (the 2 fire representatives and the city manager representative) of both the third extension to the contract, the proposed rate increase and amending the contract as proposed.
OTHER AGENCY INVOLVEMENT:
County Counsel has approved this one year extension, rate increase and contract amendment as to legal form. Amendment and attachments are on file with Clerk of the Board.
FINANCING:
This one year extension and rate increase will have no impact to the General Fund Contribution.
Prepared by: Kirk Schmitt, EMS Agency Director, 4964
Approved by: Ray Bullick, Director of Health, 4526
Attachments:
A - AMR-West letter dated October 31, 2011 on file with Clerk of the Board
B - Contract Section 6. Renewal Provision on file with Clerk of the Board
C - 1 Amendment No. 3 on file with Clerk of the Board
C - 2 Amendment No. 4 on file with Clerk of the Board
C - 3 Amendment No. 5 on file with Clerk of the Board
D - Response Zone maps on file with Clerk of the Board
E - Monterey County Ambulance Rates on file with Clerk of the Board
F - MCFCA letter, October 22, 2012, on file with Clerk of the Board
G - Health Director letter, December 10, 2012, on file with Clerk of the Board