Fremont City Council Meeting: 01/06/26 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5598) DOC ID: 5598
Updated: 12/31/2025 10:09 AM by Alberto Quintanilla Page 1
SECOND AMENDMENT TO MASTER AGREEMENT FOR ELECTRONIC HEALTH RECORD SOFTWARE - Authorize the City Manager, or Designee, to amend Master Agreement with Netsmart Technologies, Inc., for an Electronic Health Records System and Related Software and to Add $116,170 for a Total Not-to- Exceed Amount of $697,020.
Contact Persons:
Name: Arquimides Caldera Sanford Taylor
Title: Human Services Director IT Director
Div/Dept: Human Services Department Information Technology Services Phone: 510-574-2056 510-494-4802
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 allows 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.
On July 16, 2019, the City Council authorized the City Manager to enter into a Master Agreement with Netsmart Technologies (Netsmart) for the ERH system and related software in an amount up to $497,056 over a five-year period. On February 7, 2023, the City Council authorized the City Manager to enter into a First Amendment to the Master Agreement with Netsmart to extend the term of the Master Agreement through September 30, 2027, and to increase the total not to exceed amount to $589,850. The final executed First Amendment to the Master Agreement with Netsmart included a not to exceed amount of $580,850.
Staff recommends the City Council authorize the City Manager, or designee, to enter into a Second Amendment to the Master Agreement with Netsmart for the ERH system and related software. This Second amendment will provide additional services, including Netsmart Identify and Access Management Federated (NIAM), Security Analysis, Key Performance Indicators (KPI) Dashboards, Operational Process Analysis (OPA), and Application Management Services (AMS). To cover the costs of these additional services, the proposed Second Amendment will increase the not to exceed amount under the Master Agreement by an additional $116,170, resulting in a new total not-to-exceed amount of $697,020 for all services through September 30, 2027.
BACKGROUND: In 2019, the City completed a public proposal process to upgrade its aging EHR System. On September 30, 2019, the City entered into a Master Agreement with Netsmart Technologies, the successful bidder, to design and implement a new Electronic Health Record system (EHR) for client services. The EHR went live in December 2020 and has been utilized since then to document client services and bill for services.
On February 7, 2023, the City Council authorized the City Manager to enter into a First Amendment to the Master Agreement with Netsmart to extend the Master Agreement for a five-year term and to increase the total not to exceed amount to $589,850. The City Council Staff Report (ID # 5598) Meeting of January 6, 2026 Updated: 12/31/2025 10:09 AM by Alberto Quintanilla Page 2 ultimately entered into a First Amendment with Netsmart for the EHR system and related software extending the term through September 30, 2027, and increasing the total not to exceed amount to $580,850.
Alameda County Behavioral Health (ACBH) has awarded the City one-time FY 2025/26 Enhancement Funds in the amount of $90,000 to assist providers in managing recent changes in the state-wide mental health systems, including the 2024 Behavioral Health Service Act (Proposition 1) and California Advancing and Innovating Medi-Cal (Cal-AIM) payment reform.
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) and is consistent with the City’s IT Strategic Plan for cloud-based computing.
The proposed Second Amendment to the Master Agreement with Netsmart Technologies, Inc. will use the Enhancement Funds from ACBH to add the following services:
• Netsmart Identify and Access Management Federated (NIAM): Multi-Factor Authentication and Single Sign-On for the end-user and sending assertions to the Netsmart Identity and Access Management platform using standard protocols. • Security Analysis: Assessment of existing security processes to verify compliance with HIPAA guidelines.
• Key Performance Indicators (KPI) Dashboards: KPI Dashboards provide at-a- glance metrics to clinical, financial, and operational decision-makers to determine if the organization is moving in the right direction to achieve organizational goals. • Operational Process Analysis (OPA): Analysis of current City processes to determine if the City is leveraging the full potential of the system and improving productivity.
• Application Management Services (AMS): Provides as-needed access to a virtual team of application specialists with unique clinical and billing knowledge of Netsmart EHRs and reporting solutions.
These additional services will enable Staff to fully utilize the MyEvolv EHR system, boosting Staff efficiency and improving services to constituents. Therefore, Staff recommends that the City Council authorize the City Manager, or designee, to enter into a Second Amendment to the Master Agreement with Netsmart Technologies, Inc. to increase the not to exceed amount by $116,170 for the additional services above. Under the proposed Second Amendment, the revised total not-to-exceed amount under the Master Agreement will be $697,020.
FISCAL IMPACT: The City Council has appropriated sufficient funds to cover the FY 2025/26 one-time costs under the proposed Second Amendment and the first year of annual maintenance costs ($58,059), in the Mental Health – EPSDT account of the ACBHCS YFS Behavioral Health Fund (Fund 170). Funding for subsequent years of annual maintenance and management services costs ($58,111) will be budgeted in the ITS Operating Fund (Fund 620), with a direct cost allocation to the ACBHCS YFS Behavioral Health Fund and Medi-Cal Administrative Activities Fund, and requested as part of the City’s annual budget process.
Council Staff Report (ID # 5598) Meeting of January 6, 2026 Updated: 12/31/2025 10:09 AM by Alberto Quintanilla Page 3 ENVIRONMENTAL REVIEW: The proposed action is exempt from the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined under CEQA Guidelines Sections 15378(b)(2), (4), (5), and it can be seen with certainty that the action has no possibility of causing a significant effect on the environment under CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA exemption.
ATTACHMENTS: None.
RECOMMENDATIONS: Authorize the City Manager, or designee, to enter into a Second Amendment to the Master Agreement with Netsmart Technologies, Inc. for the HER system and related software to expand the scope of services and increase the not to exceed amount by 116,170 for a revised total not to exceed amount of $697,020.