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ITEM 20
City Council Memorandum Fire Memo No.
Date:
August 12, 2021
To:
Mayor and Council
Thru:
Joshua H. Wright, Acting City Manager
Thomas Dwiggins, Fire Chief
From:
Subject:
Resolution No. 5504 adopting an amended agreement between the City of Chandler and Maricopa Medical for the provision of ambulance services
Proposed Motion:
Move City Council pass and adopt Resolution No. 5504, authorizing the City of Chandler to enter into an amended agreement with Maricopa Medical for the provision of ambulance services.
Background:
The City currently has a contractual agreement for the provision of ambulance services with American Medical Response (AMR) that expires after its five-year term in January 2022. In March 2021 and after a competitive procurement process, City Council approved an agreement with Maricopa Ambulance to provide ambulance services beginning in January 2022. However, after City Council's approval, the Arizona Department of Health Services (AZDHS) requested changes to the contract, which have been incorporated into this updated agreement.
There are two significant changes in the updated agreement, based upon the AZDHS comments, that warrant an overview in this memo. First, reimbursement for housing ambulance staff and resources has been increased to reflect fair market value. Second, reimbursement for firefighter paramedic staffing has been reduced. These changes are demonstrated in the Financial Implications section below. The total change in reimbursement within this new agreement is a reduction of $219,020 annually as compared to the agreement previously approved by Council in March 2021. However, the terms of the revised agreement remain more favorable to the City financially and operationally than under the existing agreement with the current provider.
The term of this contract remains four (4) years after the commencement date. If Maricopa Ambulance and the City mutually agree to renew this Contract, it may be renewed for three (3) additional one (1) year periods.
Discussion:
Staff recommends that City Council pass and adopt Resolution No. 5504, authorizing the City of Chandler to enter into an amended with Maricopa Medical for the provision of ambulance services.
Financial Implications:
The City will be reimbursed $1,844,762 annually for providing firefighter paramedic staffing on six (6) full-time ambulances and one (1) peak-time ambulance. The reimbursement for the rental of fire station space for billeting ambulance staff and resources will be $394,800 annually. The new agreement reflects a revenue increase of approximately $624,355 annually over the current ambulance service agreement with AMR.
Expenditures will continue to be in various Fire personnel and operating accounts and will continue to be reimbursed by Maricopa Medical through General Fund Revenue Account #101.0000.4497.000000.0000.
Attachments
Resolution 5504
Ambulance Services Agreement_signed
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