TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Maria Öberg
SUBJECT: See Below DATE: March 27, 2025
Approved
Date:
4/3/25
COUNCIL DISTRICT: Citywide
SUBJECT: Agreement with Wittman Enterprises LLC for Emergency Medical Services Billing and Collection Services
RECOMMENDATION
Adopt a resolution authorizing the City Manager or her designee to:
(a) Negotiate and execute an agreement for emergency medical services billing and collection services with Wittman Enterprises LLC (Rancho Cordova, CA) for an initial five-year term, beginning on or about April 16, 2025, wherein Wittman Enterprises LLC is paid 3.75% of the City’s net collections but will not be paid more than $1,000,000 per year, subject to the appropriation of funds;
(b) Negotiate and execute change orders as required for any unanticipated changes to the agreement with Wittman Enterprises LLC not to exceed a total amount of $100,000 during the initial term, subject to the appropriation of funds; and
(c) Exercise up to five additional one-year options to extend the term through April 16, 2035, subject to the appropriation of funds.
SUMMARY AND OUTCOME
Authorizing the City Manager or her designee to take these actions will enable the San José Fire Department (SJFD) to invoice and collect payments from responsible parties for specific emergency medical care and/or transportation services that its first responders provide to patients. SJFD plays a critical role in the emergency medical segment of the continuum of medical care in our community. SJFD-based emergency medical services (EMS) are a critical component of emergency medical care because of the training and around-the-clock deployment of fire fighters to emergencies.
COUNCIL AGENDA: 4/15/25
FILE: 25-373
ITEM: 2.17
HONORABLE MAYOR AND CITY COUNCIL
March 27, 2025
Subject: Agreement with Wittman Enterprises, LLC for Emergency Medical Services Billing and Collection Services
BACKGROUND
SJFD’s mission is to protect lives, property, and the environment through prevention and response to emergencies. It provides emergency medical dispatch, advanced life support, basic life support, and, in limited circumstances, ambulance transport services.
SJFD emergency response personnel are trained and equipped to initiate control measures and/or take mitigation actions against all hazards threatening the community.
In this, they meet or exceed the standard of care established across pre-hospital EMS care providers throughout the nation.
Beginning in June 2022, SJFD experienced an exponential increase in situations where the County of Santa Clara either had no ambulances available to respond to medical emergencies and/or only a basic life support -level ambulance was available. In response to this, SJFD increased the frequency of its rescue medic transports by sending firefighters/paramedics on ambulances with patients requiring pre-hospital care.
Currently SJFD deploys three rescue medics staffed with one fire engineer and one firefighter/paramedic. These resources can provide routine emergency medical response and patient transport in four specific scenarios as part of the 911 EMS Provider Agreement
1 between the City of San José and the County of Santa Clara when emergency transportation is required in cases of immediate lifesaving transport, material failure, or delay of the contracted ambulance provider, or upon approval from the County EMS Agency Duty Chief.
SJFD’s incident volume has steadily increased year over year, with approximately 63% of these events being attributed to medical emergencies. Through the 2023-2024 Adopted Fees and Charges
2, the City Council approved SJFD to establish the
Ambulance Transport and User Fee to align with the County of Santa Clara Schedule of Ambulance Transport and User Fees for medical response services. In that same year, SJFD conducted over 800 transports to local emergency departments when private ambulance providers were not available. SJFD engaged the Finance Department – Purchasing Division to leverage an established cooperative agreement with Wittman Enterprises LLC to enable the City to invoice and collect payments for the occasions that it provides patient care and/or transportation services.
1https://files.santaclaracounty.gov/exjcpb1541/migrated/CityofSanJoseEMSAgreementAmendments20181231.pdf?V ersionId=tJXH6oBLnqn9zj058omv6MF0Pm_Tnlh4
2 https://records.sanjoseca.gov/Resolutions/RES2024-230.pdf
HONORABLE MAYOR AND CITY COUNCIL
March 27, 2025
Subject: Agreement with Wittman Enterprises, LLC for Emergency Medical Services Billing and Collection Services
ANALYSIS
On September 18, 2020, the City of Chula Vista issued a competitive request for proposals for emergency medical services billing and collection services. Through this solicitation, seven vendor proposals were evaluated based on predetermined criteria, scored, and ranked in order. Wittman Enterprises LLC’s proposal was the highest- ranked proposal. It was awarded the contract for the services.
Pursuant to Section 4.12.225.B.3 of the San José Municipal Code, staff recommends leveraging the results of the City of Chula Vista’s solicitation to enter into an agreement with Wittman Enterprises LLC for the EMS billing and collection services. Staff have engaged with Wittman Enterprises LLC to discuss specific requirements for EMS billing and collection services and have confirmed it can meet the City’s requirements.
Approval of these recommendations will enable the City to invoice and collect payments and proceed with negotiating and executing an agreement with Wittman Enterprises LLC for the implementation of EMS billing and collection services in accordance with the cooperative agreement.
EVALUATION AND FOLLOW-UP
This memorandum will not require any follow-up from staff.
COST SUMMARY/IMPLICATIONS
The total recommended agreement amount is $5,000,000. The year 1 budgeted amount of $1,000,000 is to be funded by the General Fund from revenue collected from the Ambulance Transport User Fee. The remaining amount of $4,000,000 for future years is subject to the appropriation of funds. Wittman Enterprises LLC will be compensated through a fee structure of 3.75% of the net collected revenue but not exceed $1,000,000 per year. This fee will cover Wittman Enterprises LLC’s range of responsibilities including billings, collections, financial reporting, and accounts receivable management.
HONORABLE MAYOR AND CITY COUNCIL
March 27, 2025
Subject: Agreement with Wittman Enterprises, LLC for Emergency Medical Services Billing and Collection Services
TOTAL COST OF THE AGREEMENT: $5,000,000
1st Year Billing and Collection Services Not to Exceed Amount* $1,000,000 2nd Year Billing and Collection Services Not to Exceed Amount* $1,000,000 3rd Year Billing and Collection Services Not to Exceed Amount* $1,000,000 4th Year Billing and Collection Services Not to Exceed Amount* $1,000,000 5th Year Billing and Collection Services Not to Exceed Amount* $1,000,000
AGREEMENT NOT-TO-EXCEED TOTAL $5,000,000
*Wittman Enterprises LLC will collect 3.75% of City’s net collections
BUDGET REFERENCE
The table below identifies the fund and appropriation information for the agreement recommended as part of this memorandum.
Fund Appn. Appropriation
Name
Total
Appropriation
Amount for
Contract
2024-2025
Adopted
Budget
Page
Last
Budget
Action
(Date,
Ord. No.)
001 0542 Non-Personal/
Equipment
$13,241,112 $1,000,000 548 02/11/25,
31176
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, the City Manager’s Budget Office, and the Fire Department.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the April 15, 2025 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
HONORABLE MAYOR AND CITY COUNCIL
March 27, 2025
Subject: Agreement with Wittman Enterprises, LLC for Emergency Medical Services Billing and Collection Services
CEQA
Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
MARIA ÖBERG
Director, Finance Department
For procurement- and contract-related questions, please contact Albie Udom, Deputy Director of Finance – Purchasing and Risk Management, at [email protected]
For program related questions, please contact Athena Trede, Deputy Director, Fire Department, [email protected]