Fremont City Council Meeting: 02/07/23 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4791) DOC ID: 4791
Updated: 2/1/2023 1:46 PM by Alberto Quintanilla Page 1
RENEW CONTRACT FOR CITY'S ELECTRONIC HEALTH RECORD SOFTWARE - Extend agreement and issue purchase orders with Netsmart Technologies, Inc.
Contact Persons:
Name: Karen L. Grimsich Suzanne Shenfil
Title: Family Services Administrator Director
Div/Dept: Human Services Department Human Services Department Phone: 510-574-2062 510-574-2051
E-Mail: [email protected] [email protected]
Executive Summary: The Human Services Department has utilized Netsmart Technologies’ MyEvolv electronic health record (EHR) system software since September 2019. This EHR system is critical for the Human Services Department to track client information and care plans, coordinate treatment and resource referrals, provide data to funding entities and to facilitate billing for reimbursement from 3rd party sources such as Medi-Cal and Medicare.
Staff recommends the City Council authorize the City Manager, or her designee, to enter into Amendment #1 to Master Agreement #19-0426 with Netsmart Technologies to extend the term of the agreement for an additional 5 years, not to exceed $589,850.
BACKGROUND: In 2019, the City completed a public proposal process to upgrade its aging EHR System. On September 30, 2019, the City entered into Master Agreement #19-0426 with Netsmart Technologies, the successful bidder, to design and implement a new Electronic Health Record for client services. The database went live on December 2020 and has been utilized since then to document client services and bill for services.
The Master Agreement included three years of annual maintenance and support, hosting services, Netsmart subscriptions and third-party subscriptions. The master agreement must be amended for the City to continue to access the full functionality of the EHR system.
DISCUSSION/ANALYSIS: The MyEvolv EHR system is a cloud-based system hosted in a data center in Netsmart’s private cloud. The data center is fully redundant and meets current industry security standards, including Systems and Organizational Controls ( SOC) 2, and is consistent with the City’s IT Strategic Plan for cloud-based computing.
The proposed 5-year Netsmart software maintenance amendment will include all hosting services, Netsmart subscriptions and third-party subscriptions. Netsmart will provide all future upgrades, enhancements, and platform upgrades to the system software ensuring that the City always utilizes the most current technology. The software maintenance also includes technical support and a searchable knowledgebase related to Netsmart’s proce ssing and procedures.
FISCAL IMPACT: Costs of the EHR system are budgeted in the General Fund and in the Human Services Special Revenue Fund. As part of the FY 2022/23 Adopted Budget, the City Council appropriated enough funding for the first year costs associated with the proposed Council Staff Report (ID # 4791) Meeting of February 7, 2023 Updated: 2/1/2023 1:46 PM by Alberto Quintanilla Page 2 amendment to the Master Agreement. The future year costs will be incorporated into the proposed operating budget, with some or all of the increases to be paid from Medi-Cal reimbursements.
The amendment is a 5-year extension of the contract and has a 3% annual escalator rate.
In FY 2023/24, we expect to have a one-time program enhancement to the system to allow for new client functionality.
Annual
Fees
One-time
Fee
Total:
FY 2022/23 $76,047 $0 $76,047
FY 2023/24 $114,447 $35,000 $149,447
FY 2024/25 $117,880 $0 $117,880
FY 2025/26 $121,416 $0 $121,416
FY 2026/27 $125,060 $0 $125,060
5-Year Total: $554,850 $35,000 $589,850
As a software maintenance agreement for a previously procured software system, this amendment is exempt from the City’s competitive procurement requirements per Fremont Municipal Code (FMC) 3.20.280(c).
ENVIRONMENTAL REVIEW: The proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to, without limitation, Guidelines Section 15378(b)(2), (4), (5) and/or 15061(b)(3), in that it is an administrative of fiscal activity of the City that has no possibility to cause a significant effect on the environment. Each of the foregoing provides a separate and independent basis for CEQA exemption.
ATTACHMENTS: None.
RECOMMENDATION: Authorize the City Manager, or designee, to enter into a 5-Year Amendment to Master Agreement #19-0426 with Netsmart Technologies in an amount not to exceed $589,850.