City of El Paso

1. City of El Paso Item 8A and 8B

2. Agenda Items: • 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. 2003-208R 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, 2011 • 8B: Discussion and action on the award of Solicitation No. 2010-181R (Transport Medical Billing, Collections & ePCR Services) to Advanced Data Processing Inc. for an initial estimated award of $3,929,603.28. This contract is for an initial three-year term with two options of one-year each

3. Background and Due Diligence: • 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 2003-04 • 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)

4. Background and Due Diligence (continued): • 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

5. Background and Due Diligence (continued): • Since fiscal year 2008-09, 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

6. Background and Due Diligence (continued): • 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)

7. Background and Due Diligence (continued): • 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

8. RFP Process: • RFP initially advertised on June 15th and June 22nd • 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

9. RFP Process (continued): RFP Criteria to be Evaluated

10. RFP Process (continued): • 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

11. RFP Process (continued): • 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

12. RFP Process (continued): Scoring Outcome *Company was not able to provide financial information requested so a formal presentation was not requested.

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

14. Contract Changes *Nominal Rate is 14.5%

15. By the Numbers

16. About the Proposed Company: • 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

17. About the Proposed Company: • 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

18. Recommendations from Staff: • 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. 2003-208R 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, 2011 • 8B: Approve the award of Solicitation No. 2010-181R (Transport Medical Billing, Collections & ePCR Services) to Advanced Data Processing Inc. for an initial estimated award of $3,929,603.28.

19. Questions?