Agenda Item No: V.1
AGENDA REPORT
DATE: December 17, 2024
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2024-296
Approving a Tentative Agreement with Medic Ambulance Services, Inc. to Become the City of Fairfield’s Subcontractor for Advanced Life Support Ambulance Tra nsport Services in Response to Solano County ’s Request for Proposal for Exclusive Operating Area Rights for Medical Transport Services
Funding Source: Privileged (see report)
Contact: Donny Biro, (707) 428-7222
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The existing contract for Ambulance Transportation Services and Public Private Partnership (PPP) is set to expire in May 2025. The Solano Emergency Medical Services Cooperative (SEMSC), a Joint Powers Authority established by the County of Solano, oversees the contracting of emergency medical transport services countywide (exclusive of Vacaville). The S EMSC is preparing to issue a Request for Proposals (RFP) for a new long -term contract for the exclusive operating rights to provide emergency medical transport services.
In preparation for a new EMS contract, the Cities of Benicia, Dixon, Fairfield, Rio Vista, Suisun City, and Vallejo jointly conducted a comprehensive Emergency Ambulance Services Transportation & Optimization Study. The study recommends pursuing an ambulance subcontracting model to maintain the existing level of service, improve financia l sustainability, and increase collaboration amongst the cities. The City of Fairfield has served as the lead agency on this endeavor, including conducting a request for proposal (RFP) for a subcontractor to provide the required Advanced Life Support (ALS) Ambulance Transport Services. The RFP resulted in the selection of Medic Ambulance Services, Inc. (Medic) which has resulted in negotiations and ultimately a Tentative Agreement.
DISCUSSION
As project lead, the City of Fairfield will own the subcontract for the private ambulance provider if approved. The City of Fairfield then intends to bid on the Solano County RFP with Medic as the subcontractor. With the subcontract in place, the City of Fairfield can work collaboratively with the partner cities to put in a proposal for the SEMSC contract.
To formalize the partnership with the other participating cities, the City Council previously approved a Joint Exercise of Power Agreement (JEPA) via Resolution 2023-292. The JEPA provided for the Provision and Management of Emergency Ambulance Services. Changes to the JEPA were requested by the City Vallejo after council previously authorized the agreement. However, efforts to coordinate the requested changes with Vallejo have since stalled. Staff seeks to amend the provisions of the JEPA in partnership with Vallejo and the other cities, or if required, proceed with bidding on the RFP solely as the lead agency.
The Tentative Agreement with Medic provides for the basic framework of a long-term agreement whereby Medic will serve as the subcontractor in providing ambulance services countywide (excluding Vacaville). If the City of Fairfield, JEPA partners, and Medic are successful in obtaining the contract from the SEMSC, a long -term contract will be required with M edic that provides more details as to the specific provision of services. Key provisions of the interim agreement include:
Medics cost and billing amounts within the first year of service – Medic will receive lower compensation in startup months and mak e up those reduced payments in later months as revenues start to build. After the first year, Medic will begin receiving 100% of their payment on a monthly billing cycle.
The term of the agreement is for 10 years with a 10-year automatic extension. The City of Fairfield may terminate the subcontract with Medic in the event the County contract is terminated, or if never awarded.
Penalties are assessed to Medic if they fail to meet County standards for performance on a bi -weekly basis. This means that if Medic fails to provide the agreed upon level of service, to be determined by the SEMSC RFP, then liquidated damages are paid to Fairfield.
It is important to note that the potential additional funding generated through this proposed pathway has the pot ential to improve service delivery and quality of life for our residents by further investing in the EMS delivery system and will likely result in positive fiscal impacts for the City in future years.
FINANCIAL IMPACT
The City of Fairfield and Medic Ambulance have agreed to a tentative compensation and billing structure should the City of Fairfield, JEPA partners, and Medic are successful in obtaining the contract from the SEMSC. Staff projects that revenue from the billing of ambulance services will adequately cover the cost of the contract. The agreement is based on the award of the County contract to be the exclusive ambulance provider for Solano County (exclusive of Vacaville).
The specific terms of the agreement w ith Medic Ambulance, including tentative costs, is not publicly provided in this report, the attached resolution, or the attached “Interim Agreement with Medic Ambulance Service” in order for the City to provide a competitive RFP to SEMSC and to ensure that the City’s RFP is not lowballed by any other RFP bids. Should the City of Fairfield, JEPA partners, and Medic be successful in obtaining the contract from the SEMSC, final costs, and financial impact will be provided to the council for approval.
The City of Fairfield currently yields just over $1.4M annually through a Public Private Partnership (PPP). Under the current system, the PPP allows the ambulance provider the ability to increase response times within the incorporated cities since the municipa l fire departments provide Advanced Life Support (ALS) services. The increase in response times creates a cost savings for the ambulance provider that is passed on to PPP cities.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
Stakeholders were involved in the Emergency Ambulance Services Transportation & Optimization Study. Stakeholders included the Solano County Fire Chiefs, Hospital Representatives, City Elected Officials and Executives, County Board of Supervisors Members, and the current ambulance provider. Each stakeholder was asked to evaluate the County's EMS system overall and specifically the ambulance transport component using a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats). The stakeholders were also asked about future items they would like to see in the next ambulance contract or changes needed in the system.
ALTERNATIVE ACTION
Council may decline to approve the Tentative Agreement with Medic Ambulance Services, Inc.
Not approving the tentative agreement with Medic Ambulance will eliminate the City’s ability to bid on the County’s RFP for ambulance transportation. With the current Ambulance Transportation Contract expiring in May 2025, there is a possible loss or reduction of the $1.4M that the City of Fairfield receives annually through the current PPP agreement.
COORDINATED WITH
City Attorney’s Office, City Manager’s Office, Finance
STAFF CONTACT
Taylor Armour
(707) 428-7573
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Tentative Agreement