City of Culver City, California
Agenda Item Report
Meeting Date: June 28, 2010 Item Number: C-5
CITY COUNCIL AGENDA ITEM: FOUR FIFTHS VOTE REQUIREMENT - Approval of
an Amendment to the Existing Professional Services Agreement with Wittman
Enterprises, LLC for Ambulance Billing Services with a Related Budget
Amendment.
Contact Person/Dept.:
Captain Rick Siler/Fire Department
Phone Number:
(310) 253-5917
Fiscal Impact: Yes [x] No [] General Fund: Yes [x] No []
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – City Council (6/23/20)
Department Approval:
Christopher Sellers (6/16/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (06/23/10)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (06/23/10)
City Manager Approval:
P. Lamont Ewell (06/23/10)
RECOMMENDATION:
Staff recommends the City Council (1) approve an amendment to the existing
professional services agreement with Wittman Enterprises, LLC, extending the
contract period four years, with an optional fifth year, for the management of
ambulance billing; and (2) approve a related budget amendment.
A budget amendment requires a four-fifths vote.
BACKGROUND:
Prior to August 1996, the Fire Department ambulance billing was conducted by the
City of Culver City’s Accounting Department. Collections were low due to the
complexity of insurance codes and regulations. By contracting with Wittman
Enterprises, LLC, (Wittman), Culver City effectively bills Medicare, Medi-Cal, and all
other insurance carriers.
Wittman is in its twentieth year of business. They bill for over 95 Cities, Counties,
and Fire Districts across four states, processing over 300,000 transports per year.
They provide service for twenty cities in Los Angeles County, including: Beverly
Hills, Culver City, Burbank, El Segundo, Hermosa Beach, Manhattan Beach, Long
Beach, Alhambra, Arcadia, Avalon, Glendale, La Verne, Monterey Park, West
Covina, and many others. City of Culver City, California
Agenda Item Report
The City of Culver City began contracting for ambulance billing service with Wittman
in August of 1996. This contract was renewed for a period of three years in July of
2001, 2004, and again in 2007. This relationship has continued due to exceptional
customer service to both the Fire Department and our patients alike. Their staff is
both courteous and prompt to respond to all inquiries. Statistics and reports are
provided periodically and upon request.
Contracting for ambulance billing with Wittman has been a successful partnership
with the Culver City Fire Department. The net collection rate remains near 65%
while their fee has been $18 per transport, or approximately 4%, for the last six
years. During the period Wittman has served the City of Culver City substantial
revenues have been realized by the General Fund, while the costs remain below the
industry norm.
In addition, as of July 1, 2010 the Los Angeles County Department of Health
Services has authorized a 7.5% increase in ambulance transport rates and fees.
Given the Fire Department’s current emergency call volume this translates to an
additional $71,000 in revenue to the City’s General Fund.
Due to our impending staff reductions, and a more competitive ambulance billing
market, the Fire Department explored all billing contractors who would provide
electronic patient care reporting technology to reduce workload and bundle it with
their billing fees. Only those companies currently operating, and having offices
within California, were solicited for proposals. In the end, Wittman still provided the
best package at the lowest cost with the new terms.
Included in the new terms is the provision of Emergency Medical Service (EMS)
Report Scanning technology in partnership with Recognition Solutions, Inc. (RSI) by
Wittman for use by our firefighter/paramedics and staff. RSI provides EMS Report
scanning systems for Santa Monica, Beverly Hills, Glendale, Los Angeles County
Fire, and many others. This scanning application is a proven system that will
increase documentation efficiency, speed collection of ambulance transport
revenues, while greatly reducing administrative workload on our support personnel.
Wittman agrees to absorb all costs and fees for any scanable report form products,
yearly support, and software maintenance associated with RSI.
The Fire Department has been extremely pleased with the exceptional service
Wittman has provided to the City of Culver City and our patients. We look forward to
a continued relationship that functions well in our new economic climate.
Pursuant to Culver City Municipal Code Section 3.07.070.A, this professional
services agreement may be approved without the necessity of formal competitive
bidding, provided that, the agreement is based upon competitive quotations,
whenever practical, from three vendor contractors. Based on the City’s history with City of Culver City, California
Agenda Item Report
the company, as discussed above, the City Manager has determined that it is not
practical to obtain competitive quotations.
FISCAL ANALYSIS:
Wittman currently charges the City of Culver City $18 per EMS patient billed. This
fee has remained the same for the past six years. In the new proposal their fee
remains at the current amount for this fiscal year, with modest increases in years two
through five.
The cost breakdown per transport for Wittman and RSI during this professional
service agreement period is per the following:
Wittman RSI Total
2010/2011 $18 per transport $12.06 per transport $30.06
2011/2012 $19 12.06 31.06
2012/2013 $20 12.06 32.06
2013/2014 $21 5.82* 26.82
2014/2015 $21 5.82* 26.82
* Once the original RSI system cost outlaid by Wittman is recouped, this fee is
reduced to the per entry amount charged by that vendor.
This amendment to the existing professional service agreement requires an
enhancement of approximately $28,000 over the previous amount ($41,166)
charged in Fiscal Year 2009/2010. Subsequent year’s costs will be addressed in
those budgets. Total costs per year of this agreement will be:
Wittman RSI Total
2010/2011 $41,166 $27,581.22 $68,747.22
2011/2012 43,453 27,581.22 71,034.22
2012/2013 45,740 27,581.22 73,321.22
2013/2014 48,027 13,310.34 61,337.34
2014/2015 48,027 13,310.34 61,337.34
These amounts may vary slightly depending on the exact number of ambulance
transports by Culver City Fire Department units.
Funding for this RSI system enhancement exists in the City’s Building Surcharge
Fund of which a portion is designated for Fire Department use (Fund 412 – Building
Surcharge) due to receipts received from Fire Permit Surcharges. If this
enhancement is approved, funding will be appropriated in Emergency Medical
Services Division 10145300.619800 – Other Contractual Services.
City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
1) Approve an amendment to the existing professional services agreement
with Wittman Enterprises, LLC extending the contract period for the
management of ambulance billing and EMS Report Scanning Solutions
by four years with an optional fifth; and,
2) Approve a budget amendment to appropriate funds from the Building
Surcharge Fund (Fund 412) in the amount of $28,000 to Account
10145300.619800 – Other Contractual Services; and,
3) Authorize the City Attorney to review/prepare the necessary documents;
and,
4) Authorize the City Manager to execute such documents on behalf of the
City.
A 4/5
th
vote is required to approve the budget amendment.