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Home My WebLink About2010 CON American Medical Response - Amendment #1FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC. This First Amendment to the Agreement By and Between the City of National City and American Medical Response Ambulance Service, Inc. ("First Amendment") is entered into this 23rd day of November, 2010, by and between the City of National City ("CITY") and American Medical Response Ambulance Service, Inc. ("AMR"). RECITALS A. WHEREAS, on June 20, 2006, CITY and AMR entered into an agreement entitled "Agreement by and between the City of National City and American Medical Response Ambulance Service, Inc." ("Agreement"); and B. WHEREAS, the CITY and AMR now wish to amend the Agreement by amending Section II, Subsection A.11(f); Section IV, Subsections B, 1 and 2; and Exhibit "A" regarding mileage reimbursement. C. WHEREAS, the CITY and AMR desire to exercise the option to extend the term of the Agreement for two years, following expiration on June 30, 2011, as provided for in Section VI, Subsection E. NOW, THEREFORE, in consideration of the mutual benefit to be derived therefrom, CITY and AMR agree as follows: 1. The term of the Agreement is extended for an additional two years from the time the current agreement expires on June 30, 2011 to June 30, 2013, as permitted in Section VI.E.1 of the Agreement. 2. Section II, Subsection A.11(f) is amended by modifying the last sentence of the paragraph as follows: Provide funding of up to $6,000 per year for uniforms, books and supplies, or to fund scholarships for students to attend Fire and/or EMT training at Southwestern College, San Diego Miramar College, and/or Palomar College. 3. Section IV, subsections B.1 and B.2 are amended by adding the following: 2010 Amendment to Agreement 1 City of National City and American Medical Response B.1. Effective November 23, 2010, the Ambulance Service Base Rate for Advanced Life Support is $1,664.51. B.2. Effective November 23, 2010, the calls for service for which the patient care meets the criteria of "ALS2" as defined in the Medicare Ambulance Fee Schedule or successor versions thereof is $1,923.33. 4. Section IV, subsection B.4 is amended by replacing subsection B.4.(b) with the following: B.4. (b) Regular and Ordinary Annual Rate Increase. The CITY through the Director of Emergency Services may annually increase specific ambulance rate categories in Exhibit A to the Agreement, if there have been no substantial changes. Effective July 1, 2011, and annually thereafter, AMR may submit a request to the CITY for a rate increase to take effect on June 30th of each Agreement year, based on AMR providing justification based on the factors and calculations set forth below: (1) The adjustment will be determined by multiplying the existing rate categories by the average of the percentage changes of the US - Medical Care Services and West -All Items cost of living indexes (this calculation is hereafter referred to as the "Inflation Index"). Calculation and application of the Inflation Index will occur as follows: i. The parties will review the CPI applicable to each of the US -Medical Care Services and West -All Items cost of living indexes. ii. The amount of the adjustment will be the equally weighted average of the percentage changes of these cost of living indexes. CPI is as compiled and reported by the U.S. Department of Labor, Bureau of Labor Statistics for the most recent twelve (12) month period, not seasonally adjusted. iv. This figure will be used to compare rates in effect since the last price adjustment for the ambulance provider whose rates are being evaluated. The Inflation Index will thereafter be modified to adjust for AMR's inability to collect from fixed government payors, i.e., Medicare and Medicaid, as follows: 2010 Amendment to Agreement 2 City of National City and American Medical Response (2) Any request for a rate change shall be made by May 31 of the Agreement year. Notice to the CITY shall be mailed on or before May 31st of each Contract year of the rate increase request. Sample Calculation Example: Step 1 US - Medical Care Services West - All Items Weighted index Step 2 CPI Index Weight 4.00% 50.00% 1.00% 50.00% 2.50% The parties will adjust the weighted index to account for the effect of fixed government payors, e.g., Medicare and Medicaid. Example: Proposed Annual User Fee Adjustment Calculation & Incremental Yield Index Wei t US - Medical Care Services 4.00% 50.00% South - All Items 1 00% 50. 00% Weighted index 2.50% 11M18liyi Y3alddn Wid Net Payer Payer; NC I0 Collections Mix Inilalot. Increaseat 'd Meel mare 27% 1.00% 40. 00% 10.80% Outside Contractor's control Medicaid 11% 0.00% 0.00% 0 00% Outside Contractor's control Insurance &Self Pay 623 2.50% 100. 00% 6200% Contractor remains at risk to manage collection effectively 100% 72.80% User fee inflaidradjusted:for fixed navemnlent payers.: 3_40"l_ Must increase rates by this percentage to realize net cash flow Potential collection of user fee incmase: 72.80% Net cash flaw: 2.50% Notes (13 - The published M (2) The Underlying (0) Meld on UCR In WS 4Verghted Ind r'.. Step 3 or'rnttlg 100 $ehedula efiheresySolrva gbvHmenl payers Insurance and PnuatelSelf Payam experaed 10 follow tho Weighted Index 'NCR rate inflation as enloofa ted9n Step: .yer lnpatordrvlded by tba Wemm hteet Index calculated tnStep l Thlsdelatmrrlesiha eklellt. proDpdion theta payefwrll respond 1p1he We�Med l0460. ease malbp09d by the PayerMix detenrnne the sentnbtaionto Ne 006601 +;ash0ow. I, ;ceinLl0860In Sept above dMdpdbythe Wtd feel Collections tv dotemm�e ihererygiede pare drenge to yield the cash itmvs that app(`gwmate the eupootedV e The parties will review the Medicare Inflation Index for ambulance services, issued annually in January, by the Federal Centers for Medicare and Medicaid Services ("CMS'). This information will be used to determine Medicare's estimates of and allowances for inflation since the AMR's last rate. 2010 Amendment to Agreement 3 City of National City and American Medical Response 5. The mileage rate set forth in Exhibit "A" to the Agreement is amended by increasing the mileage rate to $24.26 per mile, effective November 23, 2010. 6. Each and every provision of the "Agreement by and between the City of National City and American Medical Response Ambulance Service, Inc.", dated June 20, 2006, shall remain in full force and effect, unless specifically amended by this First Amendment. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed the day and year first herein set forth. CITY OF NATIONAL CITY B on Morrison, Ma •r APPROVED AS TO FORM: audia G. City Attorn AMERICAN EDICAL RESPONSE AMBULAERVICE, INC. By: itle: f e - ✓4 Name: 2010 Amendment to Agreement 4 City of National City and American Medical Response RESOLUTION 2010 — 259 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A FIRST AMENDMENT TO AGREEMENT WITH AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC., FOR BASIC AND ADVANCED LIFE SUPPORT AMBULANCE TRANSPORTATION SERVICES WHEREAS, on June 20, 2006, the City of National City ("City") and American Medical Response Ambulance Service, Inc. ("AMR"), entered into an Agreement through the adoption of City Council Resolution No. 2006-106, to provide basic and advanced life support ambulance transportation services at no cost to the City; and WHEREAS, the City and AMR now desire to make the following amendments to the current Agreement: • Extend the term of the Agreement for an additional two years from the time the current agreement expires on June 30, 2011 to June 30, 2013, as provided in said Agreement. • Make Fire and/or EMT training scholarships available to students of San Diego Miramar College and/or Palomar College, in addition to Southwestern College. • Increase the ambulance services base rate from $1,036.37 to $1,664.51 per transport. • Increase the cost for calls for service during which patient care meets transportation criteria, as defined in the Medicare Ambulance Fee Schedule or successor versions thereof from $1,170.19 to $1,923.33. • Increase the mileage rate from $22.13 to $24.26 per mile. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute a First Amendment to Agreement between the City of National City and American Medical Response for Basic and Advanced Life Support Services, extending the term of the Agreement for two years, adjusting the scholarship program to include additional colleges, increasing certain ambulance service rate schedules, and increasing the mileage rate, all as stated in the First Amendment. Said First Amendment to the Agreement is on file in the Office of the City Clerk. PASSED and ADOPTED this 23rd day of Novem i2010. Ron Morrison, Mayor ATTEST: APROVED A TO FORM: Michael R. Dalla, ty Clerk udia G. City Atto Passed and adopted by the Council of the City of National City, California, on November 23, 2010 by the following vote, to -wit: Ayes: Councilmembers Morrison, Sotelo-Solis, Van Deventer, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California Ar;416° City Cle k of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2010-259 of the City of National City, California, passed and adopted by the Council of said City on November 23, 2010. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 23, 2010 AGENDA ITEM NO. 39 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to sign the First Amendment to the Agreement by and between the City of National City and American Medical Response Ambulance Service, Inc. (Fire) PREPARED BY: Walter Amedee DEPARTMENT: Fir PHONE: 619-336-4556 APPROVED BY: EXPLANATION: See attached Staff Report. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED:y 41 APPROVEuv Finance MIS Agreement is a fee for service with no General Fund revenue subsidy. Increase in Franchise Fee revenue (130-00000-3034) of $119,421 will augment the Paramedic Program accordingly. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Authorize the Mayor to sign the First Amendment to the Agreement by and between the City of National City and American Medical Response Ambulance Service, Inc. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: First Amendment to the Agreement by and between the City of National City and American Medical Response Ambulance Service, Inc. 2. Staff Report 3. Resolution 4,�:o\oa 'o- ao\o a5q OFFICE OF THE CITY CLERK 1243 National City Blvd. National City, California 91950 Michael R. Dalla, CMC - City Clerk 619-336-4228 phone • 619-336-4229 fax December 1, 2010 Mr. Mike Murphy American Medical Response 8808 Balboa Avenue #150 San Diego, CA 92123 Dear Mr. Murphy, On November 23rd, 2010, Resolution No. 2010-259 was passed and adopted by the City Council of the City of National City, authorizing execution of Amendment #1 to an Agreement with American Medical Response. We are enclosing for your records a certified copy of the above Resolution and a fully executed original Amendment. Michael R. Dalla, CMC City Clerk Enclosures cc: Fire Dept.