City of El Paso Item 8A and 8B 1

8A: Discussion and action on a Resolution that the Purchasing Manager is authorized to notify Currey Adkins, LP, of El Paso, Texas, that the City is terminating Contract No R pursuant to the provisions and requirements of Article 2.2 of the Contract without cause and that the termination shall be effective as of January 15, B: Discussion and action on the award of Solicitation No R (Transport Medical Billing, Collections & ePCR Services) to Advanced Data Processing Inc. for an initial estimated award of $3,929, This contract is for an initial three-year term with two options of one-year each Agenda Items: 2

In August 2003, the City entered into a nine-year collection contract with Currey Adkins (“Firm”) to provide services for ambulance collection services −Based on a fixed fee based on % of collections for each contract year beginning with fiscal/contract year −All hardware, software and services required through the RFP were to be provided, paid by the City, through the mechanism offered by the Firm in the “Alternative Fee Proposal, Option One” −In 2003, the City had two respondents (45 notifications were sent out to potential bidders) Background and Due Diligence: 3

In 2008, the City conducted an internal audit of the Fire Ambulance Fees Audit Audit reviewed current Fire Department and Financial Services Department practices as it related to the Firm’s contract Overall, it was determined that the Firm was not in full compliance with the collection, billing and reporting requirements of the contract, however, the Firm did provide responses to the audit The City, along with the Firm, engaged in ongoing discussions and actions in an effort to implement the recommendations contained with the report Background and Due Diligence (continued): 4

Since fiscal year , the Financial Services Department, as well as the Fire Department, researched other Cities to determine best practices In-house vs. outsourcing Full outsourcing vs. partial Delinquent Account Management (i.e. Credit Bureau, Third-Party Delinquent Collector) Other Collection Arrangements (fee-based or guaranteed collections) Review of City-wide collection process in all areas including the development on an A/R Collection Policy Background and Due Diligence (continued): 5

City departments reviewed and discussed various options in the current market place in order to determine what was in the best interest of the City Ongoing technology needs Collection efforts % of Collections Budget/Revenue Collections (4% of General Fund Revenues - $12,279,000 estimated budget for 2011) Background and Due Diligence (continued): 6

As a result of various factors, the City made a determination to prepare a new solicitation to determine what options, if any, are available in the current market place The Firm was formally notified on June 7, 2010, of the City’s intent to go out to bid and invited to bid on new proposal RFP was advertised the following week Background and Due Diligence (continued): 7

RFP initially advertised on June 15 th and June 22 nd 68 potential vendors were on the bid list (19 were local including the Firm) RFP Due Date was extended and closed on September 22, 2010 The City received six proposals from five different companies (one company submitted two proposals) The Firm did not submit a proposal to the RFP RFP Process: 8

RFP Process (continued): Criteria Maximum Points Cost Proposed Technical Solution References Capability/Qualifications Financial Strength & Stability 5.00 Total RFP Criteria to be Evaluated

Initial Committee Rated Proposals Committee Members (Chief Carlos Carmona, Chief Manuel Chavira, Chief Michael Calderazzo, Jessica Marez (IT), Carmen Arrieta-Candelaria (Financial Services), Patricia Dominguez (Fire) and Joseph Tellez (Fire Union Representative) Michael Plum, Purchasing (non- voting) was also on hand to oversee the evaluation process RFP Process (continued): 10

Presentation Committee: Top two companies were selected – three proposals were reviewed* Committee Members (Chief Carlos Carmona, Chief Manuel Chavira, Chief Michael Calderazzo, Jessica Marez (IT), Patricia Dominguez (Fire) Field personnel from Fire were also on hand to test equipment and software *see Slide 12 RFP Process (continued): 11

RFP Process (continued): Respondents Initial ScoreFinal Score ADPI/Intermedix/ Triptix ADPI/Intermedix/ Image Trend Emergidata, Inc.* iATROS, LLC MED 3000, Inc Wittman Enterprises, LLC Scoring Outcome *Company was not able to provide financial information requested so a formal presentation was not requested.

Selection Process: Initial review scoring (October 25 th meeting) Final presentations from top-ranked vendors (November 10 th ) Recommendation from Fire to award to ADPI on November 18 th Purchasing placed on City Council agenda for December 14th RFP Process (continued): 13

14 Contract Changes CriteriaCurrentProposed Collection Fee based on % Collected Effective rate 17.83%*10.90% Capital Investment by City (i.e. computers, software, other hardware, project management) At Cost Plus ZeroIncluded in Contract; No additional cost to City Delinquent Account Management NoneRight of transfer System Software Administration Not IncludedProvided by company Collection Data and Reporting Batch processingElectronically transmitted at POS TrainingNot IncludedProvided by company *Nominal Rate is 14.5%

15 By the Numbers Initial Three-Year Term CurrentProposedDifference Collection Fee based on % Collected for Initial Three-Year $5,341,365$3,929,603$1,411,762 Capital Investment by City $445,688 (based on three-year average) -0-$445,688 Total$5,787,053$3,929,603$1,857,450

Company based in Ft. Lauderdale, Florida Operations Center located in Houston, Texas (this will be the City’s main support arm for the contract) Serves 335 municipal EMS organizations in the country, 146 in the state of Texas 48% of the Top 50 Cities in the US that outsource billing use ADPI About the Proposed Company: 16

Clients throughout the US include: City of Chicago Miami-Dade County City of Boston City of San Francisco Washington, D.C. City of Jacksonville City of Dallas About the Proposed Company: 17

8A: Approve a Resolution that the Purchasing Manager is authorized to notify Currey Adkins, LP, of El Paso, Texas, that the City is terminating Contract No R pursuant to the provisions and requirements of Article 2.2 of the Contract without cause and that the termination shall be effective as of January 15, B: Approve the award of Solicitation No R (Transport Medical Billing, Collections & ePCR Services) to Advanced Data Processing Inc. for an initial estimated award of $3,929, Recommendations from Staff: 18

Questions? 19