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[COMMITTEE SUBSTITUTE FOR] ORDINANCE NO. 260621
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Sponsor: Director of General Services Department
COMMITTEE SUBSTITUTE
Authorizing the Manager of Procurement Services to execute a one (1) year $ 1,000,000.00 SaaS contract (EV3603) with Digitech Computer LLC to provide a SaaS EMS billing System (“System”) for $6.20 per billable account and 3.95% of Net Collected Revenue for collection services for the six (6) month transition to the new System; authorizing the Manager of Procurement Services to amend the contract and exercise the City’s nine (9) one year renewal options; estimating and appropriating revenue; directing the City Manager to report annually on the implementation of the new System including the impact on existing City staff; and recognizing this ordinance as having an accelerated effective date.
Advance and Do Pass as a Committee Substitute
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WHEREAS, the City is entering into a contract with Digitech Computer LLC for a new SaaS EMS billing System that will cost $6.20 per billable account; and
WHEREAS, it is estimated that the City has 150,000 billable accounts making the estimated value of the contract $1,000,000.00; and
WHEREAS, Digitech will provide collection services while the City transitions to the new System for six months and will be paid 3.95% of Net Collected Revenue; and
WHEREAS, the City has the unilateral right to renew the Contract for up to nine (9) additional years; and
WHEREAS, this is not an “outsourcing contract” that impacts Local 500 Medical Billing Specialists positions; and
WHEREAS, the Council desires that the SaaS EMS billing system assists the Local 500 members by improving the efficiency and performance of collections; and
WHEREAS, the City Manager must comply with Collective Bargaining Agreement between the City and Local 500 throughout the duration of the contract and renewals; and
WHEREAS, pursuant to Section 3-41, Code of Ordinances, the City Council must authorize contracts in excess of six years and $1,000,000.00; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the Manager of Procurement Services is authorized to execute a one (1) year SaaS contract (EV3603) with Digitech Computer LLC to provide a SaaS EMS billing system for $6.20 per billable account and 3.95% of Net Collected Revenue for collection services for the six (6) month transition to the new System.
Section 2. That the Manager of Procurement Services is authorized to amend the SaaS contract (EV3603) with Digitech Computer LLC and to exercise the City’s nine (9) one (1) year renewal options without Council approval.
Section 3. That revenue in the following account of the General Fund is hereby estimated in the following amount:
27-1000-232520-465690 Ambulance Operations $2,500,000.00
Section 4. That the amount of $1,000,000.00 is appropriated from the Unappropriated Fund Balance of the General Fund to the following account:
27-1000-233310-610120 Consultant Services $1,000,000.00
Section 5. That the Director of Fire is hereby designated as requisitioning authority for Account No. 27-1000-233310 and is authorized to expend a maximum expenditure of $1,000,000.00 from funds heretofore appropriated to the account to satisfy the cost of this contract.
Section 6. That the City Manager shall report back annually no later than April 30, to the Council on the status of the implementation of the new billing system, including impact on existing City staff.
Section 7. That this ordinance, relating to the appropriation of money, is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(C) of the City Charter and shall take effect in accordance with that section.
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The City has no financial obligation under this Ordinance and the Contract until the Manager of Procurement Services issues a Purchase Order which shall be signed by the City’s Director of Finance certifying there is a balance, otherwise unencumbered, to the credit of the appropriation to which the expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment will be made, each sufficient to meet the obligation incurred in the Purchase Order.
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Brenton Siverly
Director of Finance
Approved as to form:
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James M. Brady
Senior Associate City Attorney