From
Caroline Siskowic
Title
Price Agreement through a Master Inter-local Agreement with the City of Garland, for Consultant Services with Public Consulting Group, Inc (PCG) of Boston, MA to prepare annual cost allocation reports for the Texas Ambulance Supplemental Payment Program at an estimated cost of $22,000 annually for one year with the option to renew for three additional one year periods totalling $88,000 if all extensions are exercised; and authorize the City Manager to execute any additional renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal terms
Presenter
Robert Fite, Fire Chief
Recommended Action
Approve
Analysis
PCG (Public Consulting Group) provides Consulting Services to prepare annual cost allocation reports for the Texas Ambulance Supplemental Payment Program. This program is voluntary to participate in the cost reconciliation and settlement for governmental ambulance providers to claim uncompensated care costs related to services provided. Title 1 of the Texas Administrative Code, Part 15, Chapter 355, SubChapter J, Division 5, Rule 8081 and Division 31, Rule 8600, specifies a governmental ambulance provider may begin to claim uncompensated care costs related to services provided on or after the first day of the month after the request for eligibility is approved. The State has approved the City's application for participation effective April 30, 2015. The first cost report will be due March 31, 2016 for the period of May 1, 2015 throught September 30, 2015.
A fiscal impact study, based on sample data from January 1, 2015 through March 31, 2015, was performed by PCG to estimate the City's possible annual settlement. Last fiscal year providers were cut 45% of their annual settlement. A larger cut should be anticipated for the current year, however, the fiscal impact study indicates the City's share would be approximately $667,600 with a 45% cut. The first cost reports are for a partial year and would be due March 31, 2016 for the period May 1, 2015 through September 30, 2015. Revenues from these cost reports would be anticipated to be received around March 2017. For budgeting purposes PCG recommends only budgeting approximately 30% of the annual settlement in anticipation of more cuts to the program. PCG's fee would be based on the revenues realized and due once received by the City during FY2017. Based on PCG's fiscal impact study the City's annual settlement is estimated at $1,213,777. Using a conservative rate to budget only 30%, as recommended by PCG, anticipated revenues would be $364,133 and the PCG's fee would be $21,848. The Finance & Government Committee has approved this item.
State purchasing laws, Government Code, Chapter 271.102 authorize local governments to enter into joint contracts and cooperative agreements for the performance of governmental functions normally associated with the operation of government such as purchasing necessary materials and supplies. The City approved a Master Inter-local agreement with the City of Garland whereby the City could make use of all of that entities price agreements. It is the Fire Department's recommendation to utilize the option of "piggybacking" off the City of Garland's price agreement with PCG at a rate of 6% of all revenues realized by the City as a result of the services performed. One other vendor, McKesson Corporation, provides these services but does not have a contract the City may utilize. A phone presentation was conducted by McKesson on February 5, 2015 with a quote at a cost of 12% of all realized revenues.
Financial Consideration
Fee year 1 (partial year), for the period of May 1, 2015 through September 30, 2015 cost reports, would be budgeted in FY2017 with full year funding of 6% of revenues funded in FY2018 for the period October 1, 2015 through September 30, 2016 and continue so long as the State continues the program and a contract is in effect with PCG.