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Consent
Item No. 6.
| MEETING DATE: 11/04/2024 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Gabriella Yap, Assistant City Manager |
| SUBJECT: | PROPOSED AMENDMENT NO. 2 TO AGREEMENT WITH FALCK MOBILE HEALTH CORPORATION FOR EMS EMERGENCY TRANSPORTATION SERVICES
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RECOMMENDATION:
That the City Council:
A. Approve and authorize the City Manager to execute Amendment No. 2 to the City's agreement with Falck Mobile Health Corporation, DBA Care Ambulance Service Inc. (Falck), for EMS Emergency Transportation Services;and
B. Authorize the City Manager to execute the option to extend the agreement with Falck in future years in accordance with the fee schedule in Amendment No. 2.
B. Authorize the City Manager to execute the option to extend the agreement with Falck in future years in accordance with the fee schedule in Amendment No. 2.
DISCUSSION:
| The City entered into an agreement with Falck Mobile Health Corporation., DBA Care Ambulance Service Inc., for EMS Emergency Transportation Services on December 1, 2020. This agreement has an initial four-year term that will end November 30, 2024, as well as three one-year extensions which, if mutually agreed upon, enables the agreement to be extended by the City through November 30, 2027. While the agreement commenced December 1, 2020, Exhibit A within the original agreement detailed the cost schedule by fiscal year (July 1 to June 30 annually). The last rate in the fee schedule is from July 1, 2023, through June 30, 2024. In order to align the agreement term with the fee schedule and fiscal year, staff is recommending amending the agreement to extend the current contract through June 30, 2025, and future optional years’ extensions to June 30, 2028. The agreement with Falck has typically increased 3% each year; however, Falck has agreed to a 0% cost increase from FY 23-24 rates for FY 24-25 and a 4% increase in FY 25-26 if the current agreement term is extended to June 30, 2026. This reduced the City's overall contract cost increase by 2% over that period. Optional extensions for future years would commence July 1 and end June 30, with the last extension ending June 30, 2028, at a proposed rate of 3% each year. If approved, the recommended Council action would authorize the City Manager to execute future optional extensions for future fiscal years up to the amounts listed in the proposed Amendment. |
FISCAL IMPACT/SOURCE OF FUNDING:
The total amount of funding budgeted by the City in the Fiscal Year 2024-2025 General Fund budget for the Falck EMS emergency transportation and ambulance billing/collection services was $1,347,778, which is the same as what was budgeted in FY 2023-2024. Typically, each year of the Falck agreement has increased by 3% as provided in their contract; however, staff negotiated with Falck representatives who agreed not to increase their costs at all for FY 2024-2025, and then adjust the contract by 4% in FY 2025-2026 if the first extension to the agreement is exercised, thereby extending the agreement to June 30, 2026 to align with the City's fiscal year. This price negotiation results in a lower rate than if the contract increased by 3% each fiscal year.
| Annual Cost | Monthly Cost | % Increase | |
| FY 20-21 | $1,233,408 | $102,784 | - |
| FY 21-22 | $1,270,410 | $105,868 | 3% |
| FY 22-23 | $1,308,522 | $109,044 | 3% |
| FY 23-24 FY 24-25 |
$1,347,778 (negotiated for no cost increases in FY 24-25) |
$112,315 | 3% 0% |
| Extensions | Annual Cost | Monthly Cost | % Increase |
| FY 25-26 | $1,401,689 | $116,807 | 4% |
| FY 26-27 | $1,443,740 | $120,312 | 3% |
| FY 27-28 | $1,487,052 | $123,921 | 3% |
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
ED 9.1 Balanced Fiscal Practices.
FS 1.1 Support Fire Service Provider
FS 1.1 Support Fire Service Provider
Attachments
- Falck Staff Report 2020.11.16
- Falck Signed Agreement 2020.12.01
- Falck Signed Amendment No. 1
- Falck Agreement - Proposed Amendment No. 2