City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01952 11/1/2022 Consent Item 18.
Revised Calendar Year (CY) 2021 Voluntary Rate Range Intergovernmental Transfer (IGT) Program Contract with the California Department of Health Care Services (DHCS) [Two-Thirds Vote Required]
File ID: 2022-01952
Location: Citywide
Recommendation: Pass a Motion: 1) by two-thirds vote, waiving the 10-day review requirement for agreements greater than $1 million under City Code section 4.04.020(C) and Council Rules of Procedure Chapter 7, Section E.2.d; 2) authorizing the City Manager, or the City Manager’s designee, to execute the CY2021 Intergovernmental Agreement Regarding Transfer of Public Funds and Assessment Fee with the California Department of Health Care Services (DHCS); 3) authorizing the transfer of funds of up to approximately $4 million as reflected in Exhibit 1 of the IGT Agreement from the Fire Department’s operating budget; 4) accepting reimbursement for Medi-Cal services of approximately $10 million of which $4 million will reimburse the Fire Department’s operating budget; 5) authorizing designation of the additional federal reimbursement of approximately $6 million to offset costs of providing Emergency Medical Services; and 6) repealing City Council Motion No. 2022 -0331 regarding Item 6 of the City Council agenda of October 25, 2022 at 2:00 p.m.
Contact: Iysha Jenkins, Senior Accountant Auditor, (916) 808-8569, [email protected], Fire Department
Presenter: None
Attachments:
1-Description/Analysis
2-Revised CY2021 IGT Agreement Regarding Transfer of Public Funds with DHCS 3-Financial Calculations 2021 VRRP Estimates V2
Additional Description/Analysis
Issue Detail: The IGT Agreement approved by Council on October 25, 2022, underestimated revenues based on the utilization of an incorrect percentage factor. The correction results in an increase to the expected revenue receipts by an additional $4 million, from approximately $6 million to approximately $10 million. This oversight was identified after the item was approved by Council.
File ID: 2022-01952 11/1/2022 Consent Item 18.
Policy Considerations: Participation in this program is consistent with Council’s adopted Budget Guideline to pursue new and enhance existing revenue sources as well as Council’sadopted Advanced Life Support (ALS) Revenue Recovery policy. In addition, pursuant to City Code Section
3.56.090, contracts of $250,000 or more are to be approved by the City Council.
The Sacramento City Code Section 4.04.020 and the Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that, unless waived by a two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to Council action.
Economic Impacts: None.
Environmental Considerations: This report concerns administrative activities that do not constitute a “project”as defined by Section 15378 of the California Environmental Quality Act (CEQA) Guidelines and is otherwise exempt pursuant to Section 1561(b)(3).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The deadline for the City to execute the CY2021 Intergovernmental Agreement and submit the agreement to DHCS in order to maintain the City’s eligibility to participate in the Voluntary Rate Range Intergovernmental Transfer Program and receive reimbursement through federal matching funds is October 31, 2022. To avoid possible disruption of emergency medical services (EMS) provided to indigent persons, a population to which the City of Sacramento is legally obligated to afford EMS, the Office of the City Attorney advised that the agreement be executed by City staff in advance of the Council meeting of November 1, 2022.
Ratification is necessary as soon as possible of the aforementioned advised action with an accompanying request of a two-thirds vote that waives the 10-day posting requirement of Council Rule of Procedure 7.E.2.d.
Financial Considerations: Upon approval of the agreement, the City will apply and request an amount to be reimbursed through the IGT program. This amount will help the City recover additional reimbursement of our unreimbursed Medi-Cal costs incurred in period January 1, 2021, through December 31, 2021, consistent with the ALS Revenue Recovery Policy.
Local Business Enterprise (LBE): Not applicable.
Aetna Anthem Health Net Kaiser Molina
Total Sacramento County Estimated DHCS Payment Amounts to Plans $2,628,960 $14,518,702 $4,591,952 $5,947,932 $12,303,424 Less Plan Administrative Fee $2,576,381 $14,155,734 $4,500,113 $5,650,535 $12,057,356 DHCS % of Total County Contributions 32.32% 20.00% 30.00% 40.00% 22.00% Estimated Total MCP Payment Estimated Payment Amounts for GE $832,686 $2,831,147 $1,350,034 $2,260,214 $2,652,618 $9,926,699 Estimated Total MCP Payment
$5,876,319
2021 VRRP Payment Estimates