COMPLETED BOARD ORDER"�|E���22
Before the Board of Supervisors in and for the
County of Monterey, State of California
Approve and authorize the Director of Health to
provide consent to the change in ownership of
American Medical Response West's AMR)
parent company
Upon motion of Supervisor Potter, seconded by Supervisor Salinas, and carried by those
members present, the Board hereby;
Approved and authorized the Director of Health to provide consent to the change
in ownership of American Medical Response West's AMR) parent company.
PASSED AND ADOPTED on this 17`h day of May, 2011, by the following vote, to wit:
AYES: Supervisors Armenta, Calcagno, Salinas, Parker, and Potter
NOES: None
ABSENT: None
I, Gail T. Borkowski, Clerk of the Board of Supervisors of the County of Monterey, State of California, hereby
certify that the foregoing is a true copy of an original order of said Board of Supervisors duly made and entered
in the minutes thereof of Minute Book 75 for the meeting on May 17, 2011.
Dated: May 17, 2011 Gail T. Borkowski, Clerk of the Board of Supervisors
County of Monterey, State of California
By
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COMPLETED BOARD ORDER"�|E���MONTEREY COUNTY BOARD OF SUPERVISORS
MEETING: May 17, 2011 Consent AGENDA NO.: 22
SUBJECT: Approve and authorize the Director of Health to provide consent to the change
in ownership of American Medical Response West's AMR) parent company.
DEPARTMENT: Health Emergency Medical Services
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve and authorize the Director of Health to provide written consent to the change in
ownership of American Medical Response West's AMR) parent company.
SUMMARY/DISCUSSION:
AMR, in accordance with Section 14.1 Attachment A) of their contract with Monterey County, is
required to obtain the consent of the County prior to assignment of any portion of the Agreement
for services between the County and AMR. A change in the controlling interest of AMR's direct
ownership or parent company) is considered a form of assignment under the Agreement.
Pursuant to this requirement, AMR provided documentation on March 7, 2010 regarding the
planned acquisition of Emergency Medical Services Corporation EMSC), the ultimate parent
company of AMR, by Clayton, Dubilier, and Rice, LLC Attachment B). AMR has provided
information about the new parent company to Monterey County Attachment Q. The change in
ownership of AMR's parent company is not expected to impact AMR's operations in Monterey
County. Accordingly, the EMS Agency is requesting that the Board authorize the Director of
Health to provide consent to the change in ownership of AMR's parent company.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed the attached notice from AMR and found that it meets AMR's
obligation under Section 14.1 of the Agreement for services with Monterey County. Attachments
listed below are on file with the Clerk to the Board.
FINANCING:
This action will have no impact to the General Fund Contribution to EMS with this action.
rk Schmitt
EMS Agency Director
Date: Z8 7ot
Approved by:
ick, Director of Heal
t
Date: 5 U
Attachment A: Section 14.1 Agreement for ALS Ambulance Service on file with Clerk to the
Board
Attachment B: Notice of proposed sale of EMSC to Clayton, Dubilier, & Rice, LLC on file with
Clerk to the Board
Attachment C: AMR letter describing the new parent company and the impact of the sale on
Monterey County on file with Clerk to the Board
h
cc: County Counsel
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COMPLETED BOARD ORDER"�|E���nrt'r!! Ik'! L' rI flit' nrmlt' nl t Intrlc I c"I rmc.1.'1 mc'rrca I I/(!( liiul Rc'~p nsr' If c'N
RI-J'~r 1O1 /')
I'trg(' 1
14.0 GENERAL PROVISIONS
14.1 assignment:
ON I RAC I OR shall not assign anv portion of the AGI M1:N I for services to he
rendered without first obtaininz vritten Consent from the County. Any assi2nmcnt mach:
cnntr~u~ to the provisions of this section n:av cause COMM nto terillinate the
1(iRI'I':MF:N I, and shall not convey anv rights to the assignee. Aumchange in the
controlling interest of ONI R ACT'OR'S direct ovrnership shall. for the purpo,eti of the
\t 1R1:I:\ll-N I. he considered it form o1'assiUnment. H IC County shall not unrcasonahly
withhold its approval of the requested ehan!-~e in oMnership. County niaty require
credentials and financial information from the ussi~wtee anal may has.: it ipproval r
disapproval on the Ill lormation provided by the CON fR.A( I OIZ.
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COMPLETED BOARD ORDER"�|E���AMERICAN MEDICAL RESPONSEa
By Certified Mail and
leventonc c(iico.monterey.ca.us
March 7, 2011
91 7108 2133 3938 6731 5343
Chris Leventon EMS Director
County of Monterey
1270 Natividad
Salinas, CA 93906
Re: Agreement to Provide Advanced Life Support Ambulance Service for the County of Monterey dated
January 1, 2010 Cons act") between County of Monterey and American Medical Response West
AMR")
Dear Mr. Leventon:
This letter is written to you as our valued customer and partner in providing healthcare services under our Contract.
We are pleased to inform you that our ultimate parent company, Emergency Medical Services Corporation the
Parent Company"), has recently signed a definitive Agreement and Plan of Merger to be acquired by affiliates of
Clayton, Dubilier & Rice, LLC C'CD&R"'), one of the world's leading private equity turns. More information about
CD&R is available on its mbsite at y w.cdr-inc.com.
When the contemplated transactions are completed as anticipated, our Parent Company will become a wholly-owned
subsidiary of an affiliate of CD&R, and will thereby cease to be a publicly traded company.
We are very excited about our Parent Company's proposed merger, but would also like to emphasize that this
transaction will not change the name and tax identification number of AMR, and is not expected to change the day-
to-day management or local operations of AMR. In addition, any security arrangements that may be in place for the
Contract such as performance bonds and insurance commitments will remain intact and unchanged by the
transaction. We look forward to continuing our relationship and honoring our commitments under the Contract, and
we will have a seasoned financial investor at our side in CD&R.
As always, please do not hesitate to address any general questions to our local General Manager, Doug Petrick, at
831.718.9561. Additionally, for any additional questions about the transactions with CD&R, feel free to contact our
in-house attorney, Walt Landen, at 303.495.1283.
Very truly yours,
AMERICAN MEDICAL RESPONSE
Mark Bruning
President
cc: Thomas Wagner, Region CEO
Encl: OrganizationChart
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COMPLETED BOARD ORDER"�|E���AMERICAN MEDICAL RESPONSES
GENERAL
ORCAIN'1ZAT1oN CHART
TODAY
One: Entities and
Pu61ic Stec i O tiers
AMR Holdco Inc.
American Medical
Response, Inc
AMR Local
Ambulance Provider
2
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COMPLETED BOARD ORDER"�|E���\tz fat IW A 1
v((; I It 1'111
tsil li, t)i
Kirk ehnaiti
I'-IS Director.
11tthlic I IcEalth I)cpai~taneait, I~'v1S ttpcncv
I:70 Natividad Rd.
a. 93,906 t 198
I)car dlr. Schmitt,
s h s.�at�irtg l ii ticI'titt' ill lievat"
sits eslponds I your email of March E), 201 1 requesting more itibiitiaation about the
Irausaclitli witli AVlli'sc parent conipart). I"uiergcaicy Medical Services Corporalion.
SpeciticaHv. you asked about the credentials oft lie navy owlicr, C'layton I)I I biIicl' & Rice,
I_I.(`, and the impact oI this dungeon the AN/110 operations in Monterey otatv. In
r�c:'ponse, vwe provide tile liillovking:
1. i ms'tota. I"aubilier & Rice. i.l:C t('1)&R
I)&.l: was founded in 1978, and is a private equity lirni with all investment strategy
predicated on buildint_'_ stn raper. more prolitahle businesses. 1)4&.K's I)rolressionals
include a Coll IN I'll isan ol'skilled invesintent dccision-makers and s;csasonc d cclrpor,atc,
leaders from global businesses such as Hi Allst ate, IMA Group_ F,'tricrs)ti I,:lcctrie.
icncra! I'lcctric, Procter it hunble and I!nilever. aanonf' others. Since ini'cptittn, C'1)&R
has iaanai,t'd tfa itlvtatm'nt ot'appnixianately S'I5 billion in 48 11.5. and Fatrt)pt.'att
husines t"ti: reprcisentill,
a broad range of industric�s wilh an ag"u'rcgatcs transaction value of
pruxim;ttt�!v t) billicM t. 1 lacy l irtrl has offices in New York and I onclon. I or more
6116rrnatiota_ please' %i"il \%ti v.cdr inc,eoin.
lnap;ict on Moll(Crey County
AT do not anticipate that Were will he any financial impact to AMR's operations in
\iuinlcrcv t)an-ty Irum the transaction. I he transaction is taappcnitat; with MR`s
ultimate' parent contp;:tny several step:` up Iht: corporate ladder. r\\-IR a. ill cc)ntintte it)
run be services tinder the Monicrcy County contract, use the suIic: name, usce Ilac' same
assets, and have ills' same tax id nttrnher. ltAI ctuth-aclmll c:olift lit[net it.s kill remain in
1)L'wc yotlttntt ehang(' and Wratet-cy t'ea'r'') will remain ptotcct'tc'ci by t)trr iumIranee.
l';atient Focused i r_rstonier('entered t'arepiver Inspired
to
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COMPLETED BOARD ORDER"�|E���performance bond, and takeover provision commitments. We have no intentions of
asking Monterey County for any extraordinary rate increase in Monterey County related
to the transaction with our ultimate parent company. In other words, any change with the
ultimate parent company of AMR should be invisible to Monterey County related to
AMR's services and commitments.
If you need anything else or have additional questions, please do not hesitate to call.
Very truly yours,
AMERICAN MEDICAL RESPONSE WEST
IIuglas Petrick
General Manager
Cc: Thomas R. Wagner, Region CEO
AMR Legal Department
Patient Focused / Customer Centered / Caregiver Inspired
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