HomeMy WebLinkAboutAgenda_GGAF_06.25.2014Notice of Meeting for the
General Government and Finance Advisory Board
of the City of Georgetown
June 25, 2014 at 3:30 PM
at Georgetown Public Library Classroom, located at 402 West 8th Street,
Georgetown, TX
The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA).
If you require assistance in participating at a public meeting due to a disability, as defined under the
ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please
contact the City at least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City
Hall at 113 East 8th Street for additional information; TTY users route through Relay Texas at 711.
Legislative Regular Agenda
A Review minutes from May 28, 2014 GGAF meeting - Danella Elliott - Executive Assistant
B Authorize City staff to negotiate contract with vendor chosen by selection committee for the
Website Assessment and Redesign of City websites - Keith Hutchinson, Public Information
Manager
C Consideration and approval to contract Revenue Rescue, Inc. and Advanced Data Processing, Inc.
for the collection of fees for services provided by the Georgetown Fire Department - Clay Shell,
Assistant Fire Chief
D Consideration and possible recommendation to amend the Contract for Architectural Services with
ADG to expand the scope of services to include design of the Tactical Training Facilities and
increase the lump sum fee in the amount of $139,954—Wayne Nero, Chief of Police
E Discussion on proposed changes to the Alarm Ordinance - Council Member Keith Brainard
F Policy discussion regarding the financial impacts of new age restricted developments on the City's
financial condition - Micki Rundell, Chief Financial Officer
G A motion that GGAF direct Staff to accomplish an analysis of a 3-year rolling average of property
assessments as the basis for the city tax levy and to present that analysis to GGAF within 90 days -
Council Members Hesser (Originator) and Fought (Co-Sponsor)
H Adjourn meeting.
CERTIFICATE OF POSTING
I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice
of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public
at all times, on the ______ day of __________________, 2014, at __________, and remained so
posted for at least 72 continuous hours preceding the scheduled time of said meeting.
____________________________________
Jessica Brettle, City Secretary
City of Georgetown, Texas
SUBJECT:
Review minutes from May 28, 2014 GGAF meeting - Danella Elliott - Executive Assistant
ITEM SUMMARY:
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Danella Elliott, Executive Assistant
ATTACHMENTS:
Description Type
5.28.14 Minutes Backup Material
Minutes of the Meeting of the
GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF)
City of Georgetown, Texas
May 28, 2014
The General Government and Finance Advisory Board met at 3:00 p.m. on Wednesday, May 28, 2014 in the
Georgetown Public Library Friends of the Library Room, located at 402 West 8thth Street, Georgetown, Texas.
MEMBERS PRESENT: Steve Fought, Chair, Tommy Gonzalez, Keith Brainard, Ralph Mason
MEMBERS ABSENT: Joe Pondrom
STAFF PRESENT: Micki Rundell, Susan Morgan, Laurie Brewer, Leticia Zavala, Paul Pausewang, Trish
Long, Tadd Phillips, Mike Peters, Kimberly Garrett, Wayne Nero, Keith Hutchinson,
Jack Daly, Lisa Haines, Jennifer Bills, Skye Masson, Chris Foster, Laura Maloy, Trina
Bickford, Jeff Kloc
A copy of these minutes, containing detailed information on the items listed below will be available in the Finance
and Administration Office, located at 113 East 8th Street, Georgetown, TX and can be found online at
http://agendas.georgetown.org/
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon’s Texas Codes, Annotated, the
items listed below will be discussed in closed session and are subject to action in the regular session that follows.
Regular Session – Called to order at 3:00 p.m.
The GGAF Board may, at any time, recess the Regular Session to convene an Executive Session at the request of the
Chair of the GGAF Committee for any purpose authorized by the Open Meetings Act, Texas Government Code
Chapter 551.)
Public Wishing to Address Council
On a subject that is posted on this agenda: Please fill out a speaker registration form. Clearly print your name and
the letter of the item on which you wish to speak and present it to the Chair or Board Liaison, preferably prior to the
start of the meeting. You will be called forward to speak when the Board considers that item.
On a subject not posted on the agenda: Persons may add an item to a future Board agenda by contacting the Liaison
prior to the creation of the agenda for the following meeting, with the subject matter of the topic they would like to
address and their name. The Board Liaison can be reached at 512-930-3676 or by email at
danella.elliott@georgetown.org
Statutory Consent Agenda
The Statutory Consent Agenda includes non-controversial and routine items that Board may act on with one single
vote. A board member may pull any item from the Consent Agenda in order that the Board discuss and act upon it
individually as part of the Regular Agenda.
Legislative Regular Agenda
A. Review minutes from the April 23, 2014 GGAF Meeting - Danella Elliott, Executive Assistant
These minutes were unanimously approved.
B. Information Technology Operations Overview – Mike Peters, Information Technology Director
Mike gave an overview on IT operations to provide background on the size and scope of IT operations.
There will be a Council workshop on June 10th on FY 2015 CIP plans. The committee asked questions and
noted that it was an informative presentation. Mike will send an electronic copy of the presentation to the
Committee.
C. Purchase of Audio/Visual and Broadcast equipment in the total amount of $136,761.05 for the
Council Chamber Technology Refresh project (multiple vendors) – Keith Hutchinson, Public
Information Officer and Mike Peters, Information Technology Director
Mike explained that staff requests approval for the purchase of replacement A/V and broadcast equipment
for the Council chambers due to the age and increased failure rates/maintenance requirements for the
existing equipment. The new equipment will make the Council systems totally “digital”, which will also
improve broadcast quality. Portions of the existing system are as much as eight years old.
The project involves the following purchases:
1. $92,544.05 to Ford Audio/Visual for replacement equipment and installation of the existing public address,
podium and room projection systems in the Council chamber. Ford A/V is a TIPS/TAPS vendor.
2. $35,722.00 to SwagIT Productions for replacement of the cameras, switchers and other broadcast
equipment used to provide cable and webcast of Council meetings. SwagIT is a proprietary vendor due to a
previous RFP selection process, plus the need for compatibility with the SwagIT service.
3. $8,495.00 to RushWorks, Inc., for purchase of a replacement video playback device used to manage
GTV/Channel 10 operation outside of meeting hours. The existing device now is out of support.
Rushworks is a proprietary vendor due to the same previous RFP selection process as item #2.
Note: The existing broadcast equipment replaced in item #2 will be reused, along with additional
equipment, for a Library broadcast system during FY 2015.
Keith asked how the money gets spent over time, and Mike noted that he will provide an accounting of that
information.
Unanimously approved.
D. Purchase of Dell/Compellent Storage Area Network (SAN) upgrades from EST Group for
$122,128.02 – Mike Peters, Information Technology Director
Staff requests approval for the purchase of upgraded processors and additional storage capacity for the
City’s main storage area network (SAN) device. SAN usage is reaching levels that are starting to
negatively impact system performance. In addition, the demands of multiple ongoing implementation
projects, plus routine data growth, will continue to place demands on the system. These upgrades will both
improve the processing speed of the platform, and also increase the overall capacity of the system by
approx. 50%. Some of these components must also be replaced at this time since they are nearing Dell’s
end of support date.
Tommy asked for a breakdown of the entire 13/14 IT total, and give a breakdown of how much each
department uses, a timeline of the last updates and replacement dates.
Unanimously approved.
E. Purchase of annual software maintenance renewal to Infor, Inc. for the Enterprise Asset
Management (EAM) system in the amount of $69,020.37 – Mike Peters, Information Technology
Director
Staff requests approval for the annual purchase of software maintenance services for the Infor EAM
system, currently in implementation by GUS. Maintenance services include access to the vendors 1-800
and web-based support staff, as well as any software updates released by the vendor during the
maintenance period.
This purchase was budgeted as part of the project budget for the EAM implementation.
Unanimously approved.
F. Consideration and possible action to contract with Basic IDIQ Inc. for repairs to the Georgetown
Tennis Center in the amount of $118,020.35 – Laurie Brewer, Assistant City Manager
Laurie said that staff is requesting approval to contract with Basic IDIQ Inc. to repair the City’s Tennis
Center. The tennis center sustained significant water damage due to a failed water heater in November of
2013. Staff worked to remove the damaged materials from the building to prevent mold. Due to the extent
of the damage, the costs of the repairs were expected to exceed $50,000, triggering ADA review. The
Texas Municipal League (TML) adjuster’s assessment states that:
She explained that if one item triggers the need to be updated, it does not necessarily mean the rest of the
building has to be updated. With damage to the drywall, and flooring, these elements do not fall under the
need for revision, and no upgrade would be required. Since there is no damage to the toilets, sink and
counters, there is no trigger. If these items are being removed and replaced because of damage, then there
may have been a trigger, however the adjuster found that these items were not damaged, but would need to
be removed for drywall replacement and painting, but were then reusable and should be reinstalled.
TML believes the insurance loss to be approximately $32,000. Council policy has typically emphasized the
need for major renovations of existing city buildings to include ADA compliance measures. City staff most
recently bid the project at $118,000, which includes ADA compliance measures and several new fixtures.
Staff is currently working to see if TML will adjust the claim to better match the proposed cost of repairs.
Staff has worked with IDIQ to identify items not covered by TML (new fixtures and ADA compliance
measures). According to the most recent breakdown of the construction estimate, the standard construction
costs are $73,556.31. The cost associated with new fixtures is $16,089.82 and the cost associated with
bringing the building into ADA compliance is $28,295.66.
Staff recently met with TML and has another meeting scheduled to work on adjusting the claim. In the
interim, staff feels it is important to begin work on restoring the tennis center restroom to accommodate
summer camps and the tennis center pool. TML has stated that any work done now would not affect the
status of any future claim adjustment. Should TML not adjust the City’s claim, several funds have been
identified to cover the additional costs.
Insurance Deductible Account (540-5-0638-51-801) $10,000
Facilities ISF (Maintenance Contingency) $60,000
TML insurance payment (may increase) $32,000
Defer budgeted item for portable stage for downtown events (100-5-0201-52-100 ) $25,000
Defer tennis court resurfacing $ 8,500
Total budget - $135,500
(15% Contingency)
The Board agreed to move forward with the Tennis Center repair, with Tommy requesting any unused
contingency be used for resurfacing the courts.
Unanimously approved.
G. Consideration and possible action to authorize the Police Department to proceed with the
procurement of fitness equipment for the Public Safety Operations and Training Center from Life
Fitness in the amount not to exceed $91,000 – Wayne Nero, Chief of Police
Chief Nero explained that this equipment is for the fitness area inside the Public Safety Operations and
Training Center. The request includes treadmills, recumbent bike, upright bike, cross trainers, weights,
racks and benches, and various isometric machines. This equipment will be essential to developing a
robust wellness and fitness plan within the police department.
The bid amount is $90,565.96. The vendor is Life Fitness and all equipment is on the Texas Multiple
Award Schedules Index (TXMAS). The funding is budgeted within the Public Safety Operations and
Training Centers Total Project Cost.
Unanimously approved.
H. Consideration and possible action to authorize the Police Department to proceed with the
procurement of video interview room equipment for the Public Safety Operations and Training
Center from L3 Mobile Vision, Inc in the amount not to exceed $75,000 – Wayne Nero, Chief of
Police
Chief Nero said that this request is for video equipment supporting the secured interview suite, secured
interview reception area, Internal Affairs interview room, and victim services soft and child interview
rooms. This equipment ties into the department’s current L3 video evidence management system (car and
body cameras).
The bid amount is $73,774.49. The vendor is L3 Mobile Vision and is a sole source. The funding is
budgeted within the Public Safety Operations and Training Center’s Total Project Cost and is already
included in the budgeted amount.
Unanimously approved.
I. Overview and update on the City’s Compensation and Self-Insurance Plan - Tadd Phillips, HR
Director and Micki Rundell, CFO
Tadd explained that each year, as part of the budget process, the General Government & Finance (GGAF)
Board reviews the City’s proposed compensation and benefit package to be included in the Annual Budget.
This review includes any salary and benefit adjustments, as well as, updates regarding the City’s overall
compensation and benefit plans.
Jeff Kloc, with Benetex, who is the City’s benefit’s consultant, provided an update on the City’s recently
implemented Self-Insurance program that began in January 2014 and provided an overall outlook for the
upcoming year. Keith asked if the City had done an analysis of the cost/benefit of paying the AHA penalty
and pushing employees to the Exchange. Tommy and Steve said that a good benefit package was
extremely beneficial in retaining and recruiting good employees.
Currently, a 12% expense increase is included in the annual budget for employee health insurance. Also
included are funds for the City’s pay for performance plan included within the City’s Fiscal Policy. Other
compensation adjustments (such as a COLA) may also be needed. Steve suggested that the COLA be tied
to “local” impacts.
The Board was supportive of next year’s plan, and wanted to make sure we stayed competitive, particularly
for Police.
The Board thanked Tadd, Micki and Jeff Kloc for the overview. . Steve also noted that it is always
important to know the “reason for leaving vs the reason for staying”.
J. Review and discuss certain sections of the Fiscal and Budgetary Policy changes – Micki Rundell,
CFO
This item is delayed until the Special GGAF Meeting on June 19th.
K. Discuss potential “Special GGAF meeting” to review proposed 2014-15 General Capital Projects
(GCP) – Micki Rundell, CFO
Per the City’s Fiscal and Budgetary Policy, the General Government and Finance (GGAF) Board is to
review the annual proposed General Capital Project (GCP) programs as part of the Annual Budget Process.
The GCP includes non-utility and transportation related capital projects, such as parks, facilities and
various equipment related purchases. In most cases, the projects included in the GCP are funded with cash
on hand from various sources or bond proceeds (either previously issued or planned for issuance in the
upcoming fiscal year).
The timing for this year’s GCP budget program has been delayed due the proposed “Downtown Civic
Center” concept being planned and related analysis that is currently underway. This concept was outlined
in the recently completed Downtown Master Plan Update and includes repurposing existing City facilities
for other municipal uses. The timing of this Plan is triggered by the Police Department relocation to their
new facility on DB Wood Road scheduled for January 2015. The properties include the old library
building, the old police facility and the soon to be vacated lower level of the GCAT building.
In order to develop an implementation plan for this project, staff is working with Ron Hobbs & Associates
to develop a phasing and funding plan which will outline the timing and other specifics needed for the
upcoming budget. An update to this project is slated for Council review on the May 27 Council Workshop
agenda. Mr. Hobbs analysis is expected to be completed by mid-June, and the Council review of the GCP
program to be included in the 2014/15 Annual Budget is planned for June 24.
The Board decided to hold a Special GGAF Meeting on June 19th at 2:00 pm.
L. Discuss and recommend Independent Audit Firm for the City of Georgetown’s annual financial
statements – Susan Morgan, CPA, Finance Director
The audit selection committee is composed of staff and committee members as follows: Keith Brainard,
Tommy Gonzalez, Ralph Mason, Micki Rundell, Susan Morgan and Lisa Haines.
On May 13, 2014, the committee selected two firms for in person interviews: Padgett Stratemann and
Weaver. Susan noted that those interviews were completed just prior to today’s GGAF meeting and the
selection committee recommended Weaver as the new audit firm.
Unanimously approved.
Adjournment
The meeting was adjourned at 4:45 pm.
_____________________________________
Board Chair
City of Georgetown, Texas
SUBJECT:
Authorize City staff to negotiate contract with vendor chosen by selection committee for the
Website Assessment and Redesign of City websites - Keith Hutchinson, Public Information
Manager
ITEM SUMMARY:
The current budget includes funds for the redesign of City websites. The goal of the website
redesign is to align the City's online presence with best practices in municipal services and to
better integrate the design and navigation of City websites. The City issued a request for proposals
for website assessment and redesign on April 2, 2014. Nine firms submitted proposals in response
to the RFP. Public Communications assembled a committee of City staff representing each City
division to review and score the proposals.
This committee also will be in place for phase two of the project, which is the assessment and
redesign phase. In addition, a Citizen Advisory Board will be created to help guide the City and
the selected vendor.
On June 12, City representatives were given access to review the proposals from nine vendors. On
June 18, feedback was collected from staff via one of two meetings or via email on the proposed
vendors. The selection committee will make their decision on the preferred firm and present that
selection at the GGAF meeting on June 25, 2014.
FINANCIAL IMPACT:
The City has allocated $100,000 for the assessment and redesign project and is included in the
2013/14 budget. This is a one-time budget item and no new ongoing expenses are expected as the
result of this project.
SUBMITTED BY:
Keith Hutchinson, Public Information Manager
City of Georgetown, Texas
SUBJECT:
Consideration and approval to contract Revenue Rescue, Inc. and Advanced Data Processing, Inc.
for the collection of fees for services provided by the Georgetown Fire Department - Clay Shell,
Assistant Fire Chief
ITEM SUMMARY:
Request to contract Revenue Rescue, Inc., and Advanced Data Processing, Inc., for the collection
of fees for services provided by the Georgetown Fire Department. This contract will provide
revenue recovery for services as stated in Ordinance 2001-75. The contract administers the billing
and collection through a systematic and standard recovery process with insurance providers and
citizens. The contractor will bill for fire services at a rate of 15% commission of the total amount
collected, and for emergency medical services at a flat rate of $18.00 for each incident collected.
They provide routine reports on all accounts and records, and allow for revenue recovery for
services requiring the utilization of specialized fire equipment.
The original contract was awarded on May 17, 2002. In 2007 an RFP was sent out and the contract
was awarded to Revenue Rescue, Inc
Georgetown received two responses from the recent Request for Proposal. One of those received is
from our current provider, Rescue Recovery Inc., and Advanced Data Processing, Inc. Due to the
requirements met in the Georgetown's Request for Proposal, low commission rate, the billing
procedures governed by laws and regulations, and the stability of this company, Georgetown Fire
Department feels that Revenue Rescue, Inc., and Advanced Data Processing, Inc., meet all the
requirements set for contracting revenue recovery billing for fire services.
FINANCIAL IMPACT:
The contractor will bill for fire services at a rate of 15% commission of the total amount collected,
and for emergency medical services at a flat rate of $18.00 for each incident collected.
SUBMITTED BY:
Clay Shell, Assistant Fire Chief
ATTACHMENTS:
Description Type
Contract Cover Memo
{00085609-2}Service Agreement Page 1 of 21
AGREEMENT BETWEEN
CITY OF GEORGETOWN, TEXAS
AND
REVENUE RESCUE, INC. AND ADVANCED DATA PROCESSING, INC.
FOR CERTAIN SERVICES
THIS AGREEMENT, hereinafter “AGREEMENT”, made and entered into this ___ day of
______________, 2014 (the “Effective Date”) by and between the City of Georgetown, with principal
offices located at 300-1 Industrial Avenue, Georgetown, TX 78627 hereinafter referred to as the
(“PROVIDER”), and Revenue Rescue, Inc., a Delaware Corporation with principal offices located at
6243 West IH-10, Ste 555, San Antonio, Texas 78201 and Advanced Data Processing, Inc., a Delaware
corporation with principal offices at 6451 N. Federal Highway, Suite, 1000, Ft. Lauderdale, FL 33308,
hereinafter individually or collectively referred to as the ("CONTRACTOR").
RECITALS
WHEREAS, the parties hereto now wish to enter into an agreement for fire billing and related
services, pursuant to which the CONTRACTOR will render those professional services in connection
with said project as hereinafter provided; and
WHEREAS, should PROVIDER elect the optional EMS billing services as defined in Section 2
(Scope of Services), this optional service will be provided by Advanced Data Processing, Inc., as
provided herein; and
WHEREAS, on February 7, 2014, PROVIDER issued a Request for Proposal for Billing Services
for Georgetown Fire Department RFP # 201418 (“RFP”) seeking qualified persons to provide such
professional services for residents and visitors in its jurisdiction, and charges for such services.
PROVIDER has selected CONTRACTOR to perform the services described in the RFP attached hereto
and incorporated into this Agreement (Exhibit C – RFP) and CONTRACTOR’s reply to the RFP attached
hereto and incorporated into this Agreement (Exhibit D- Proposal).
NOW THEREFORE, the parties hereto agree as follows:
1. DEFINITIONS
When used in this AGREEMENT, the following terms have the following meaning:
a) “Accounts Receivable” – means unpaid bills for services rendered by PROVIDER for fire
protection and suppression services and Motor Vehicle Accidents (MVA).
b) “Electronic Incident Report Form” or “E.I.R.F.” – means an electronic form, or in other
format acceptable to the CONTRACTOR, that the PROVIDER sends to the CONTRACTOR
with information about an Account Receivable owed to the PROVIDER.
{00085609-2}Service Agreement Page 2 of 21
2. SCOPE OF SERVICES
During the term of this AGREEMENT, CONTRACTOR shall be exclusively responsible for the
billing of all charges and fees relating to the services for PROVIDER’s Fire Department only as defined
in PROVIDER’s RFP and as provided by CONTRACTOR pursuant to Section 3 – Billing of Accounts
and CONTRACTOR’s Proposal to the RFP (“Proposal”).
Optional Services: Additionally, CONTRACTOR provides billing, collection and related
consulting services and equipment for municipalities and other providers for emergency and non-
emergency medical services, including ambulance transport (“EMS”). These EMS services, which are
detailed in Schedule 1 of this Agreement, are offered by CONTRACTOR to PROVIDER at
PROVIDER’S election. PROVIDER may elect such services by written notice to CONTRACTOR.
3. BILLING OF FIRE ACCOUNTS
a) Billing - The CONTRACTOR agrees to provide and maintain a billing office on behalf of the
PROVIDER for the purpose of collecting Accounts Receivable due the PROVIDER. Upon
request of the PROVIDER (which is agreed to mean upon receipt of each E.I.R.F. by the
CONTRACTOR), the CONTRACTOR will file, in accordance with all applicable laws, invoices
with insurance companies or other appropriate documentation with other individuals or entities,
in the name of the PROVIDER, in an attempt to facilitate payment of Accounts Receivables for
services rendered by the PROVIDER. The CONTRACTOR, in the name of the PROVIDER,
may, in accordance with all applicable laws, also mail statements, telephone or otherwise contact
the responsible party(s), their insurance company and/or other entities or individuals in order to
attempt to collect those Accounts Receivable owed to the PROVIDER by the responsible
party(s). All monetary compensation received by the CONTRACTOR, relating to E.I.R.F.
submissions, shall be received at a financial institution’s Lock Box depository and deposited in an
escrow/trust type account at an FDIC insured institution (bank).
b) Information Submissions - The CONTRACTOR will develop and provide a custom E.I.R.F. and
a paper run form to the PROVIDER at no cost. The PROVIDER will complete and submit to the
CONTRACTOR, in an electronic format on the E.I.R.F., all relevant information as indicated on
the E.I.R.F. or any information requested by the CONTRACTOR. Such information will be
immediately updated or provided to the CONTRACTOR when any additions or changes to that
information become available. All incomplete E.I.R.F.’s received by the CONTRACTOR will be
evaluated by the CONTRACTOR and, at its sole discretion, either acted upon or returned to the
PROVIDER for completion of the relevant information necessary for processing.
c) Correct Information - The CONTRACTOR will rely on the PROVIDER to submit accurate and
correct information relating to the services provided and the recipients of those services. To the
extent permitted by applicable law, the PROVIDER assumes all responsibility and liability for
inaccurate or incomplete information or unfounded or unreasonable submissions provided to the
CONTRACTOR and shall, to the extend allowed by law, indemnify the CONTRACTOR, in
accordance with Section 7 hereof, for the content of the inaccurate or incomplete unfounded or
unreasonable submissions provided to the CONTRACTOR and any resulting effect, claim,
liability, damage or legal action resulting from such inaccurate or incomplete information or
unfounded or unreasonable submissions.
{00085609-2}Service Agreement Page 3 of 21
d) PROVIDER policies - PROVIDER will provide CONTRACTOR with its approved billing
policies and procedures including fee schedules and collection protocols. PROVIDER will be
responsible for engaging any third party collection service for uncollectible Accounts Receivables
after CONTRACTOR has exhausted its collection efforts.
e) Legal Action – Unless uncollected amounts result from an error or omission of CONTRACTOR,
CONTRACTOR shall have no liability or responsibility to the PROVIDER for any amounts
uncollected and in no event shall the CONTRACTOR be required to bring legal action for the
collection of any uncollected amounts. After ninety (90) days of unsuccessful attempts to receive
payment for an E.I.R.F. account, should the PROVIDER decide, in its sole discretion and acting
independently of the CONTRACTOR, that legal action is the proper course of action to effect
collection of an account, the CONTRACTOR shall, upon written request of the PROVIDER,
provide any and all documentation to the PROVIDER’s legal representative or attorney with the
understanding that any and all actions, costs, liabilities or damages associated with such legal
actions shall be the sole responsibility of the PROVIDER, and the PROVIDER shall indemnify
the CONTRACTOR to the extent allowed by law in accordance with Section 9 hereof, for any
and all actions, claims, causes, costs, effects, liabilities, loss, damages and/or injury associated
with the legal actions or other courses of action associated with this Section III (e).
f) Reporting and Payment - By the fifteenth (15th) of each month, the CONTRACTOR will provide
a month end close report to the PROVIDER that identifies all Accounts Receivable known to be
collected during the prior month and to remit monies received, less fees, to the PROVIDER
collected on the PROVIDER’s behalf during the reported period.
g) Responsibility for Monies Owed - It is expressly understood by the PROVIDER that the
CONTRACTOR is in no way responsible for any monies or other valuable considerations owed
to the PROVIDER; i.) for services rendered to any recipient by the PROVIDER; ii.) That the
CONTRACTOR is unable to collect or negotiate to a lower amount and/or; iii.) that
CONTRACTOR deems not collectable or retrievable. The PROVIDER further agrees that the
CONTRACTOR may, at the CONTRACTOR’s sole discretion, negotiate on the
PROVIDER’s behalf, without recourse to the CONTRACTOR by the PROVIDER, any
settlement of the recipient’s bill to a lower amount that the CONTRACTOR deems
collectable and reasonable provide the lower amount is no more than 15% less than the
original amount due.
h) Promptness of Submissions - The PROVIDER agrees to submit the E.I.R.F forms to the
CONTRACTOR in an expeditious and timely manner. It is understood by both parties that the
timely filing of a claim for reimbursement of services relating to an incident covered by insurance
or another entity or individual will stand a better chance of being paid if the claim is submitted in
a prompt and complete manner. To this end, both the PROVIDER and the CONTRACTOR shall
make every effort to expedite the flow of information and paperwork and shall institute guidelines
and training within their respective organizations to accomplish this task.
4. TIME OF PERFORMANCE
This AGREEMENT shall remain in effect for approximately sixteen (16) months from the
Effective Date through September 30, 2015 (the “Initial Term”) with the PROVIDER’s option to renew
for four (4) additional one (1) year periods (the “Renewal Term”) under the terms and conditions
contained herein unless otherwise terminated. All terms and conditions hereof shall remain in full force
and effect during any Renewal Term.
{00085609-2}Service Agreement Page 4 of 21
5. ADDITIONAL SERVICES
The PROVIDER reserves the right to request changes in the services within the general scope of
the AGREEMENT to be performed upon mutual agreement by the PROVIDER and CONTRACTOR
that shall specify the change ordered and the adjustment of time and compensation required therefore.
Any services added to the scope of this AGREEMENT by a change order shall be executed in
compliance with all other applicable conditions of this AGREEMENT. No claim for additional
compensation or extension of time shall be recognized unless contained in the duly executed change
order.
6. COMPENSATION AND METHOD OF PAYMENT
6.01 Fire Billing Services Fees. The CONTRACTOR shall be paid by the PROVIDER a
monthly amount representing fees for the fire billing services provided by CONTRACTOR, hereunder,
computed as follows:
(a) Fifteen percent (15%) of all monies collected by CONTRACTOR less refunds
(“Net Collections”) on behalf of PROVIDER.
CONTRACTOR reserves the right to increase these fire billing services fees if postage is
increased by the United States Postal Service, but only to cover additional postage costs.
6.02 Optional: EMS Billing Services Fees
(a) Billing for EMS Services may be added at any point during the Initial Term or any
Renewal Term of this Agreement. In the event EMS billing services are added, the expiration of the
initial term for EMS billing services will correspond with the end date for the then current term for fire
billing services. In the event the PROVIDER elects not to renew for fire billing services, the option to
renew for EMS billing services only shall remain valid subject to the maximum term listed in Section 4.
(b) Eighteen dollars ($18.00) flat fee (“Initial EMS Fee”) per transport for the first
twenty-four (24) months of the billing services for EMS. Thereafter, the fee will be converted to a
percent of Net Collections based on the data collected within the twenty-four (24) months EMS billing
services, and mutually agreed upon between the parties. In the event both parties are unable to
mutually agree upon a percentage of Net Collections fee, PROVIDER reserves the right to cancel the
EMS Billing portion of the Agreement. This Initial EMS Fee includes the cost of CONTRACTOR
providing the software for the TripTix Product only, plus
(c) Credit card processing transaction fee: 2.5% of the value of each credit card
transaction, plus
(d) PROVIDER is not currently utilizing an e-PCR software nor operating any
related hardware, nor in possession of, or operating any emergency vehicles for EMS. If during the term
of this Agreement, PROVIDER elects the option of EMS billing services by written agreement, and
PROVIDER does not purchase an ePCR software (TripTix software as noted in 6.02 (a)), and rely upon
paper-run record for EMS transports, CONTRACTOR will bill PROVIDER a fee of $25.00 per paper-
run EMS transport.
7. DATA MANAGEMENT; DATA ENTRY; ADDITIONAL RECORDS ON WEB ACCESS
SYSTEM
{00085609-2}Service Agreement Page 5 of 21
a) Web Access System - CONTRACTOR may grant to PROVIDER electronic access to all records
on file regarding performance under this AGREEMENT for PROVIDER including, but not
limited to billing records, and correspondence regarding Accounts Receivable. It shall be the
responsibility of PROVIDER to provide its own necessary computer equipment, computer
communication equipment capable of connecting to the Internet and accessing CONTRACTOR’s
Internet server (the “Web Access System”).
b) Limitation of Access to the Web Access System - In the event that web access is provided by
CONTRACTOR, access to data in the Web Access System regarding PROVIDER shall be
limited to the employees, representatives and agents of CONTRACTOR and the authorized
personnel of PROVIDER. CONTRACTOR shall use its best efforts to maintain the security of
the Web Access System, but shall not be responsible for negligence with respect to password
security related to PROVIDER’s personnel or other breaches beyond CONTRACTOR’s
reasonable control.
c) Statistical Reporting - Statistical and financial data reports will be available on the Web Access
System at all times that the Web Access System is available. The format and content of the
statistical data will be established and defined by CONTRACTOR and such reports may be
added, modified or deleted without prior notice to PROVIDER. Notwithstanding the foregoing,
PROVIDER may request specific, custom reports to be available to it at an additional charge to
be negotiated between CONTRACTOR and PROVIDER.
d) Acknowledgement with Respect to Reports - With respect to each report generated by a Web
Access System, PROVIDER acknowledges and agrees:
(i) Each report represents a “snapshot” of a moment in time, and, as such, the snapshot may not
be accurate with respect to financial results on the whole.
(ii) The underlying data may be subject to correction from time-to-time, which may change the
results of the report or its interpretation.
(iii) The data represented in the report represents only a limited portion of all data available
regarding the PROVIDER’s business.
PROVIDER thus further acknowledges and agrees that any particular report may not accurately
represent the PROVIDER’s then-current or future financial condition.
8. INDEPENDENT CONTRACTORS
The CONTRACTOR is an independent contractor and not an employee or agent of the
PROVIDER with the following exception:
To the extent necessary to fulfill its billing and collection efforts under the
AGREEMENT, the CONTRACTOR is authorized to sign in an administrative capacity for
the PROVIDER the following types of standard forms and correspondences only: probate
filings; letters to payers or their representatives verifying that an account is paid in full; forms
verifying the tax-exempt status of the PROVIDER; and insurance filings and related forms.
The CONTRACTOR has no authority to sign any document that imposes any additional
liability on the PROVIDER.
{00085609-2}Service Agreement Page 6 of 21
The CONTRACTOR shall retain full control over the employment, direction, compensation and
discharge of all persons assisting in the performance of services by CONTRACTOR. The
CONTRACTOR shall be fully responsible for all matters relating to payment of employees, including
compliance with Social Security, withholding tax and all other laws and regulations governing such
matters. The CONTRACTOR shall be responsible for its own acts and those of its agents and
employees during the term of this AGREEMENT.
9. INDEMNIFICATION
To the extent permitted by applicable law, the CONTRACTOR will indemnify and hold harmless
the PROVIDER from and against any and all loss, damage, liability, claims and/or injury resulting from
all actions performed by the CONTRACTOR, or its agents on the PROVIDER’S behalf, in connection
with this AGREEMENT. However, this indemnification shall not apply with respect to any legal cause,
action or resulting liability or losses resulting from inaccurate or incomplete information furnished to
the CONTRACTOR by the PROVIDER nor shall it apply to any negligence of the PROVIDER.
All inaccurate or incomplete information or unfounded or unreasonable submissions furnished to
the CONTRACTOR by the PROVIDER and any acts, omissions or negligence of the PROVIDER are
and shall be the sole responsibility of the PROVIDER and to the extent permitted by applicable law, the
PROVIDER herein indemnifies the CONTRACTOR, it’s agents, officers, shareholders, employees and
contractors from and against any and all loss, damage, liability, claims and/or injury resulting from
inaccurate or incomplete information or unfounded or unreasonable submissions furnished to the
CONTRACTOR by the PROVIDER or acts, omissions or negligence of the PROVIDER.
10. INTELLECTUAL PROPERTY
PROVIDER agrees that the equipment, computer hardware and software, billing and collection
processing, and other related systems and equipment are the property and trade secrets of
CONTRACTOR, and that PROVIDER will not release any information regarding such trade secrets to
any third party without the prior written consent of CONTRACTOR.
11. OWNERSHIP OF ACCOUNTS RECEIVABLE
All Accounts Receivable, less fees and charges owed to the CONTRACTOR under Section 6
hereof, shall be the property of the PROVIDER and shall be returned, less any outstanding balances
owed the CONTRACTOR by the PROVIDER, within thirty (30) days of termination of this
AGREEMENT.
12. ATTACHMENTS
As part of this AGREEMENT, a signed Itemized Billing Cost Sheet is attached to this document
as Exhibit A for the purpose of establishing and defining the itemized rates at which the services of the
PROVIDER are to be billed to recipients by the CONTRACTOR. The rates indicated on the Itemized
Billing Cost Sheet shall be constant and unchanged until a new Itemized Billing Cost Sheet is signed
and submitted by the PROVIDER and entered into the CONTRACTOR’s computer for future billings.
No previous billing may be altered or changed to reflect new billing rates submitted by the PROVIDER
which shall be entertained upon receipt. In addition, if EMS billing service is elected by PROVIDER, a
Business Associate Addendum is attached hereto as Exhibit B and made part of the AGREEMENT.
{00085609-2}Service Agreement Page 7 of 21
13. LICENSE AGREEMENT
The software used by the PROVIDER and the CONTRACTOR is the property of the
CONTRACTOR, and is protected by both United States Copyright Law and International Treaty
Provisions. The PROVIDER is granted a license to use this software under the terms stated in this
AGREEMENT. This is a license, not a sales agreement, between PROVIDER and the CONTRACTOR.
The CONTRACTOR grants to the PROVIDER a non-exclusive, non-transferable license to use the
software for the term of this AGREEMENT. The current and future versions of the software are the
sole property of the CONTRACTOR.
14. TERMINATION and CANCELLATION
a) Termination for Cause. In the event of default by the CONTRACTOR, PROVIDER
shall have the right to terminate the Agreement for cause, by written notice effective thirty (30)
calendar days, unless otherwise specified, after the date of such notice, unless CONTRACTOR, within
such thirty (30) day period cures such default, or provides evidence sufficient to prove to PROVIDER’s
satisfaction that such default does not, in fact, exist. In addition to any other remedies available under
law or in equity, PROVIDER shall be entitled to recover all actual damages, costs, losses and expenses
incurred by PROVIDER as a result of the CONTRACTOR’s default, including without limitation, cost
of cover, reasonable attorneys’ fees, court costs and prejudgment and post-judgment interest at the
maximum lawful rate. Additionally, in the event of default by CONTRACTOR, PROVIDER may
remove CONTRACTOR from PROVIDER’s Vendor List and any Offer submitted by CONTRACTOR
may be disqualified for up to three (3) years. All rights and remedies under the Agreement are
cumulative and not exclusive of any other right or remedy provided by law.
b) If PROVIDER materially fails to perform any obligation required hereunder, and such
default continues for thirty (30) calendar days after written notice from CONTRACTOR specifying the
nature and extent of the failure to materially perform such obligation, this Agreement shall terminate
upon the expiration of said thirty (30) calendar day period.
c) Termination without Cause. PROVIDER shall have the right to terminate the
Agreement, in whole or in part, without cause any time upon thirty (30) calendar days’ prior written
notice. Upon receipt of a notice of termination, CONTRACTOR shall promptly cease all further work
pursuant to the Agreement, with such exceptions, if any, specified in the notice of termination.
PROVIDER shall pay CONTRACTOR, to the extent of funds appropriated or otherwise legally
available for such purposes, for all goods delivered and services performed and obligations incurred
prior to the date of termination in accordance with the terms hereof.
CONTRACTOR shall have the right to terminate the Agreement, in whole or in part, without
cause any time upon sixty (60) calendar days’ prior written notice. Upon receipt of a notice of
termination, CONTRACTOR shall promptly cease all further work pursuant to the Agreement, with
such exceptions, if any, specified in the notice of termination.
d) Non-Appropriation. The resulting Agreement is a commitment of PROVIDER’s current
revenues only. It is understood and agreed that PROVIDER shall have the right to terminate the
Agreement at the end of any PROVIDER fiscal year (September 30th) if the governing body of
PROVIDER does not appropriate funds sufficient to purchase the estimated yearly quantities, as
determined by PROVIDER’s budget for the fiscal year in question. PROVIDER may effect such
termination by giving CONTRACTOR a written notice of termination at the end of its then current
fiscal year.
e) Cancellation. PROVIDER reserves the right to cancel the Agreement for default all or any
part of the delivered portion of the deliverables if CONTRACTOR breaches any term hereof including
{00085609-2}Service Agreement Page 8 of 21
warranties, or becomes insolvent or commits acts of bankruptcy. Such right of cancellation is in
addition to and not in lieu of any remedies which PROVIDER may have in law or in equity.
15. UNCONTROLLABLE FORCES
Neither the PROVIDER nor CONTRACTOR shall be considered to be in default of this
AGREEMENT if delays in or failure of performance shall be due to Uncontrollable Forces, the effect
of which, by the exercise of reasonable diligence, the non-performing party could not avoid. The term
“Uncontrollable Forces” shall mean any event which results in the prevention or delay of performance
by a party of its obligations under this AGREEMENT and which is beyond the reasonable control of
the non-performing party. It includes, but is not limited to fire, flood, earthquakes, storms, lightning,
epidemic, war, riot, civil disturbance, sabotage, terrorism and governmental actions.
Neither party shall, however, be excused from performance if non-performance is due to forces
that are preventable, removable, or remediable nor which the non-performing party could have, with the
exercise of reasonable diligence, prevented, removed, or remedied with reasonable dispatch. The non-
performing party shall, within a reasonable time of being prevented or delayed from performance by an
uncontrollable force, give written notice to the other party describing the circumstances and
uncontrollable forces preventing continued performance of the obligations of this AGREEMENT.
16. JURISDICTION, VENUE, and ATTORNEY’S FEES
All legal questions and disputes regarding this AGREEMENT shall be determined in accordance
with the laws of the state of Texas. Any legal action by either party against the other concerning this
AGREEMENT shall be filed in Williamson County, Texas, which shall be deemed the only proper
jurisdiction and venue for the action. The prevailing party in any dispute arising from this
AGREEMENT shall have its reasonable attorneys’ fees reimbursed by the non prevailing party.
17. REPRESENTATIONS
PROVIDER and CONTRACTOR agree that this AGREEMENT constitutes a legal, valid and
binding obligation for each party, enforceable against such party in accordance with its terms (subject
always to applicable bankruptcy, insolvency, receivership and other similar laws relating to or affecting
the enforcement of creditor’s rights generally and to general principles of equity). Further,
CONTRACTOR and PROVIDER warrant and represent to each other: that each (i) is duly formed and
organized and validly existing under the laws of the jurisdiction of its formation, (ii) is properly
qualified to do business and is in good standing under the laws of each jurisdiction in which it does
business, (iii) has all necessary corporate or similar power and authority to execute and deliver this
AGREEMENT and to consummate the transaction contemplated hereby; and that this AGREEMENT,
its execution and the fulfillment and compliance with the terms and conditions hereof, do not violate or
conflict with any provision of or result in any breach of or default under any (i) organizational
documents of each party, (ii) law or judicial, award, or similar decree, or (iii) AGREEMENT, to which
PROVIDER or CONTRACTOR, for CONTRACTOR’s representations and warranties, or
PROVIDER, for PROVIDER’s representations and warranties, are bound.
18. EXPORT LAWS
PROVIDER shall comply with all then current export laws and regulations of the U.S.
Government and the government of the country in which PROVIDER receives delivery of the Licensed
Software which pertain to the Licensed Software.
{00085609-2}Service Agreement Page 9 of 21
19. ASSIGNMENT OF AGREEMENT
This Agreement will bind and inure to the benefit of each party’s permitted successors and
assigns. Neither party shall assign this Agreement without the express written consent of the other
party, nor shall such consent not be unreasonably withheld. Notwithstanding the foregoing sentence,
CONTRACTOR may, upon notice to PROVIDER, assign this Agreement to any affiliate or any entity
resulting from the sale, combination or transfer of all or substantially all of the assets or capital stock, or
from any other corporate form of reorganization by or of CONTRACTOR.
20. NOTICES
Any notice given or required to be given under this AGREEMENT shall be in writing and shall
be addressed to the parties hereto at the addresses set out below. Any such notices shall be deemed to
have been given (i) if mailed, then three (3) days following the date such notice is placed in the United
States mail in a postage paid wrapper, registered or certified with return receipt requested, addressed to
the appropriate party at the address set forth above for such party, or to the last address provided in
writing to the other party by the addressee, or (ii) if by any other method, when actually received.
Either party may change its address for the purpose of this AGREEMENT by notice in writing to the
other party in accordance herewith.
To the PROVIDER:
Attn: Trina Bickford, Purchasing Manager
City of Georgetown
300-1 Industrial Avenue
Georgetown, TX 78627
To the CONTRACTOR:
Brad Williams
CAO & VP
Intermedix Corporation
6451 North Federal Highway, Suite 1000
Fort Lauderdale, Florida 33308
21. LEGAL CONSTRUCTION
In case any one or more of the provisions contained in this Agreement shall for any reason be
held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provision thereof and this Contract shall be considered as if such invalid,
illegal, or unenforceable provision had never been contained in this Contract.
22. CAPTIONS
The captions to the various clauses of this Agreement are for informational purposes only and
shall not alter the substance of the terms and conditions of this Contract.
23. ENTIRE AGREEMENT
This AGREEMENT, RFP and Proposal contain the entire AGREEMENT between the parties.
The CONTRACTOR represents that in entering into this AGREEMENT it has not relied on any
previous oral and/or implied representations, inducements or understandings of any kind or nature.
{00085609-2}Service Agreement Page 10 of 21
IN WITNESS WHEREOF, the parties to this AGREEMENT have signed and delivered this
AGREEMENT on the day and year first above written.
ATTEST:
PROVIDER
BY: ________________________ _____ By: _____________________________
Date: ____________________________
CONTRACTOR
Revenue Rescue, Inc.
______________________________
Doug Shamon
President & CEO
Advanced Data Processing, Inc.
______________________________
Doug Shamon
President & CEO
{00085609-2}Service Agreement Page 11 of 21
Schedule 1
EMS Scope of Services
1. ACCESS TO BILLING SYSTEM.
1.01 Right to Use. During the Term of this Agreement, CONTRACTOR grants to
PROVIDER, access to CONTRACTOR billing system solely to view PROVIDER’s accounts, run
various reports, and access to all data associated with the billing and collection process which is wholly
owned by PROVIDER (“Billing Service”). During the Term of this Agreement, CONTRACTOR will not
in any way transfer to any third party or use in direct or indirect competition with PROVIDER any
information or data posted by or for the benefit of PROVIDER on CONTRACTOR’s website and
acknowledges that all such information is confidential (“Confidential Information”). CONTRACTOR
further acknowledges that its handling of information on behalf of PROVIDER is or may be subject to
federal, state or local laws, rules, regulation and restrictions regarding the privacy of consumer
information. CONTRACTOR agrees to comply with all of such laws, rules and regulations and
restrictions, as is commercially reasonably possible, at its sole cost and expense. This Access to Billing
System Section and all obligations contained therein will survive any termination or expiration of this
Agreement.
1.02 User Restrictions. PROVIDER shall not, and shall not permit others to, without the
express written consent of CONTRACTOR: (i) use, receive, reproduce, copy, market, sell, distribute,
license, sublicense, lease, timeshare, or rent the Billing Service, any other Service or any component
thereof; (ii) modify, alter, translate or prepare derivative works based on the Billing System or
Documentation is permitted; (iii) disassemble, decompile, decrypt or reverse engineer the Billing Service
or in any way attempt to discover or reproduce source code for the Billing Service, or any portion thereof;
or (iv) develop or license any third party programs, applications, tools or other products which interface
or interact with the Billing Service. PROVIDER agrees not to remove the copyright, trade secret or other
proprietary protection legends or notices which appear on or in the Billing Service, any other Service or
the Documentation.
1.03 Internet Access. PROVIDER shall be responsible for providing its own Internet access
necessary to provide the Billing Service, and in no event shall PROVIDER be provided with direct access
(by modem or otherwise) to the Billing Service server, other than access that is available to third parties
generally through the Internet. The parties acknowledge that, since the Internet is neither owned nor
controlled by any one entity, CONTRACTOR makes no guarantee that any given user will be able to
access the Billing Services at any given time. There are no assurances that access will be available at all
times and uninterrupted, and CONTRACTOR shall not be liable to PROVIDER for its inability to access
the Billing Service.
1.04 Reporting. Operational and financial data reports for PROVIDER will be available on
the Billing Services when the Billing Service is available. The format and content of the data will be
established and defined by CONTRACTOR and such reports may be added, modified or deleted without
notice to PROVIDER. Notwithstanding the foregoing, PROVIDER may request that specific, custom
reports be made available to it at an additional charge to be negotiated between CONTRACTOR and
PROVIDER.
1.05 Acknowledgement with Respect to Reports. With respect to each report generated for
PROVIDER as part of the Billing Service, PROVIDER acknowledges and agrees: (i) such report
represents a “snapshot” of a moment in time, and as such, the snapshot may not be accurate with respect
to financial results on the whole; (ii) the underlying data may be subject to correction from time-to-time,
{00085609-2}Service Agreement Page 12 of 21
which may change the results of the report or its interpretation; and (iii) the data represented in the report
constitutes only a limited portion of all data available regarding PROVIDER’s business. Accordingly,
any particular report may not accurately represent the PROVIDER’s then-current or future financial
condition.
1.06 Intellectual Property. PROVIDER agrees that the equipment, computer hardware and
software, billing and collection processing, Services, Billing Service and other related systems and
equipment are the property and trade secrets of CONTRACTOR and that PROVIDER will not release
any information regarding property and/or trade secrets to any third party without the prior written
consent of CONTRACTOR. PROVIDER further agrees that, in connection with the use of certain data
entry devices, PROVIDER may gain access to the intellectual property of third parties. PROVIDER
understands and agrees that it may be required to enter into agreements with respect to such intellectual
property in order to use such equipment. PROVIDER agrees to enter into such arrangements at
CONTRACTOR’s request.
1.07 Audit Rights. From time to time and upon reasonable prior written notice,
CONTRACTOR may audit PROVIDER’s use of the Services to help ensure that PROVIDER is in
compliance with the terms and conditions of this Agreement, including, but not limited to, any payment
terms. Any such audit will be conducted during regular business hours at the applicable facilities of
PROVIDER. PROVIDER will identify and cooperate with CONTRACTOR (or its representatives) to
provide CONTRACTOR (or its representatives) with reasonable access to all relevant equipment,
personnel and records.
2. COLLECTION EFFORTS.
2.01 Alternative Collection Arrangement. CONTRACTOR will have the right, on
PROVIDER’s behalf, in its sole and complete discretion, to enter into an alternative collection
arrangement with respect to any patient encounter performed by the PROVIDER if: (i) the total payments
are for at least eighty percent (80%) of the amount of the bill; (ii) an insurance company offers at least
seventy percent (70%) of the total amount billed with a stipulation that the insured not be billed for the
balance; or (iii) CONTRACTOR is able to make arrangements for the payment of patient account that
provide a substantially similar economic benefit to PROVIDER, as CONTRACTOR determines in its
sole and complete discretion.
2.02 Scope of Collection Efforts. If reasonable efforts have been made to collect a patient
account of PROVIDER and such efforts have not been successful, CONTRACTOR shall have the right to
terminate collection efforts and close the account as an unpaid debt. As used herein “reasonable efforts”
shall be defined to mean at least but not limited to one hundred twenty (120) days of active collection
efforts in the ordinary course of business. In addition, CONTRACTOR may terminate or suspend
collection efforts in the event that PROVIDER has supplied CONTRACTOR with materially incomplete
or inaccurate billing and/or patient information. Absent contrary instructions from PROVIDER with
respect to any patient encounter, the accounts that CONTRACTOR has deemed to be uncollectible may
be forwarded to a third-party collection agency for further collection effort.
2.03 Administrative Fee/ Third Party Collection Costs. PROVIDER will be responsible for
engaging any third party collection service for uncollectible accounts after CONTRACTOR has
exhausted its collection efforts. PROVIDER will be directly liable for all fees of third party
collection agency.
{00085609-2}Service Agreement Page 13 of 21
2.04 Excluded Persons. If any refunds of patient accounts of PROVIDER are required to be
refunded to or offset by any government and commercial payor as a result of PROVIDER’s violation of
its obligations set forth in this Schedule 1, Section 3. B.9. (an “Excluded Person Refund”),
CONTRACTOR shall not be required to refund to PROVIDER any commissions or fees earned or
previously paid to CONTRACTOR as a result of its collection of such Excluded Person Refund or
otherwise include such Excluded Person Refunds in its calculation of Net Collections as set forth herein.
3. BASE SERVICES AND OBLIGATIONS.
A. CONTRACTOR shall provide revenue cycle management services for PROVIDER as described
below. CONTRACTOR shall, during the term:
1. Prepare and submit initial claims and bills for PROVIDER promptly upon receipt thereof, and
prepare and submit secondary claims and bills promptly after identification of the need to submit a
secondary claim.
2. Assist PROVIDER in identifying necessary documentation in order to process and bill the
accounts.
3. Direct payments to a lockbox or bank account designated by PROVIDER, to which PROVIDER
alone will have
signature authority.
4. Pursue appeals of denials, partial denials and rejections when deemed appropriate by
CONTRACTOR.
5. Respond to and follow up with Payors and respond to messages or inquiries from a Payor.
6. Provide appropriate storage and data back-up for records pertaining to PROVIDER’s bills and
collections hereunder, accessible to PROVIDER at reasonable times.
7. Maintain records of services performed and financial transactions.
8. Meet, as needed, with representatives of PROVIDER to discuss results, problems and
recommendations.
9. Provide any PROVIDER-designated collection agency with the data necessary for collection
services to be Performed when an account is referred to such agency.
10. CONTRACTOR will support the provider in filing and maintaining required documentation and
agreements with commonly-used Payors (e.g. Medicare, Medicaid, Champus, etc.). The Provider will
maintain responsibility for enrollment, required documentation, and agreements with Out of State Payers,
such as Out of State Medicaid programs, and other payors not commonly billed.
11. Provide reasonably necessary training periodically, as requested by PROVIDER, to
PROVIDER’s emergency medical personnel regarding the gathering of the necessary information and
proper completion of run reports.
12. Utilize up-to-date knowledge and information with regard to coding requirements and standards,
to comply with applicable federal, state and local regulations.
{00085609-2}Service Agreement Page 14 of 21
13. Provide a designated liaison for PROVIDER, patient and other Payor concerns.
14. Provide a toll free telephone number for patients and other Payors to be answered as designated
by PROVIDER.
15. Facilitate proper security of confidential information and proper shredding of disposed materials
containing such information.
16. Establish arrangements with hospitals to obtain/verify patient insurance and contact information.
17. Respond to any PROVIDER, Payor or patient inquiry or questions promptly.
18. Maintain appropriate accounting procedures for reconciling deposits, receivables, billings, patient
accounts, adjustments and refunds.
19. Provide reasonable access to PROVIDER for requested information in order for PROVIDER to
perform appropriate and periodic audits. Reasonable notice will be given to CONTRACTOR for any
planned audit and will be conducted during normal business hours of CONTRACTOR, all at the
PROVIDER's expense.
20. Provide timely reports facilitating required aspects of monitoring, evaluating, auditing and
managing the Services provided.
21. Process refund requests and provide PROVIDER with documentation substantiating each refund
requested.
22. Assign billing to patient account numbers providing cross-reference to PROVIDER’s assigned
transport numbers.
23. Maintain responsibility for obtaining missing or incomplete insurance information.
24. Provide accurate coding of medical claims based on information provided by PROVIDER.
25. Negotiate and arrange modified payment schedules for individuals unable to pay full amount
when billed.
26. Retain accounts for a minimum of twelve (12) months (unless otherwise specified by mutual
agreement) and after twelve (12) months turn over accounts for which no collection has been made
(unless insurance payment is pending) to an agency designated by PROVIDER.
27. Permit real-time read only electronic look-up access by PROVIDER to CONTRACTOR’s Billing
Service to obtain patient data and billing information.
28. Maintain records in an electronic format that is readily accessible by PROVIDER personnel and
that meets federal and state requirements for maintaining patient medical records.
29. Create, implement and comply with a Compliance Plan consistent with the Compliance Program
Guidance for Third Party Medical Billing Companies 63 FR 70138; (December 18, 1998) promulgated by
the Office of Inspector General of the Department of Health and Human Services (OIG).
{00085609-2}Service Agreement Page 15 of 21
B. PROVIDER’s Responsibilities and Obligations:
1. From each person who receives EMS from PROVIDER (“Patient”), PROVIDER shall use its best
efforts to obtain and forward the following information (“Patient Information”) to CONTRACTOR:
(i) the Patient’s full name and date of birth;
(ii) the mailing address (including zip code) and telephone number of the Patient or other party
responsible for payment (“Guarantor”);
(iii) the Patient’s social security number;
(iv) the name and address of the Patient’s health insurance carrier, name of policyholder or
primary covered party, and any applicable group and identification numbers;
(v) the auto insurance carrier address and/or agent’s name and phone number if an automobile is
involved;
(vi) the employer’s name, address and Workers Compensation Insurance information if the
incident is work related;
(vii) the Patient’s Medicare or Medicaid HIC numbers if applicable;
(viii) the Patient’s or other responsible party’s signed payment authorization and release of
medical authorization form or other documentation sufficient to comply with applicable signature
requirements;
(ix) the call times, transporting unit, and crew members with their license level, i.e. EMT-B,
EMT-I, or EMT-P;
(x) odometer readings or actual loaded miles flown such that loaded miles may be calculated;
(xi) physician certification statements (PCS) for non-emergency transports that are to be billed to
Medicare pursuant to CMS regulations; and
(xii) any other information that CONTRACTOR may reasonably require to bill the Patient or
other Payor.
2. PROVIDER represents and warrants that all information provided to CONTRACTOR shall be
accurate and complete. CONTRACTOR shall have no obligation to verify the accuracy of such
information, and PROVIDER shall be solely responsible for such accuracy. PROVIDER agrees to
indemnify and hold CONTRACTOR, its agents, and employees harmless from any and all liabilities and
costs, including reasonable attorneys’ fees, resulting from (a) any inaccurate or misleading information
provided to CONTRACTOR that results in the actual or alleged submission of a false or fraudulent claim
or (b) any other actual or alleged violation of local, state or federal laws., including but not limited laws
applicable to Medicare, Medicaid or any other public or private Payor or enforcement agency.
3. PROVIDER will provide CONTRACTOR with necessary documents required by third parties to
allow for the electronic filing of claims by CONTRACTOR on PROVIDER’s behalf.
{00085609-2}Service Agreement Page 16 of 21
4. PROVIDER will provide CONTRACTOR with its approved billing policies and procedures,
including dispatch protocols, fee schedules and collection protocols. PROVIDER will be responsible for
engaging any third party collection service for uncollectible accounts after CONTRACTOR has
exhausted its collection efforts.
5. PROVIDER will timely process refunds identified by CONTRACTOR for account overpayments
and provide to CONTRACTOR confirmation, including copies of checks and other materials sent.
6. PROVIDER will provide a lock box or bank account address to CONTRACTOR and will instruct
the lock box or bank custodian agency to forward all documents to CONTRACTOR for processing.
7. PROVIDER will provide CONTRACTOR with daily bank balance reporting capabilities via the
bank’s designated web site.
8. PROVIDER will cooperate with CONTRACTOR in all matters to ensure proper compliance with
laws and regulations.
9. PROVIDER represents and warrants that all of its employees, personnel and independent
CONTRACTORs involved in the delivery of EMS or otherwise performing services for PROVIDER: (i)
hold the licensure or certification required to perform such services, (ii) have not been convicted of a
criminal offense related to health care or been listed as debarred, excluded or otherwise ineligible for
participation in a Federal health care program and (iii) are not excluded persons listed on any of the
following: (a) the Office of the Inspector General List of Excluded Individuals and Entities; (b) the
General Services Administration’s Excluded Parties List; and (c) the Office of Foreign Asset Control’s
Specially Designated Nationals List.
10. PROVIDER agrees that it will forward to CONTRACTOR copies of checks, or other payment
documentation requested by CONTRACTOR relating to the subject matter of this Agreement, within 10
days of the date of receipt of those payments.
11. PROVIDER agrees to notify CONTRACTOR in the event that their Electronic Patient Care
Reporting (ePCR) vendor performs any system upgrades. Notification may be made in writing to
support@CONTRACTOR.com.
4. HIPAA BUSINESS ASSOCIATE OBLIGATIONS/ CHANGES IN HIPAA.
4.01 Each party agrees to the obligations set forth in the BA Agreement attached hereto as
Exhibit B (the “BA Agreement”) as the obligations relate to EMS billing services. Such BA Agreement
constitutes the complete and exclusive agreement between the parties with respect to CONTRACTOR’s
obligations regarding Protected Health Information, superseding and replacing any and all prior
agreements, communications, representations, and understandings (both written and oral) regarding such
subject matter; provided, however, that in the event of any additions, modifications or amendments to any
statute or regulation including HIPAA or future federal regulations adopted pursuant thereto, then
CONTRACTOR and PROVIDER shall promptly enter into negotiations to revise the BA Agreement to
reflect such changes. Upon the execution by the parties of a revised BA Agreement (a “Revised BA
Agreement”), such Revised BA Agreement will supersede the current BA Agreement in its entirety and
such current BA Agreement will no longer be of any force or effect.
4.02 Right to Injunctive Relief. The parties expressly acknowledge and agree that the breach,
or threatened breach, by a party of any provision of this Section 11 may cause the other party to be
irreparably harmed and that the harmed party may not have an adequate remedy at law. Therefore, the
{00085609-2}Service Agreement Page 17 of 21
parties agree that upon such breach, or threatened breach, the harmed party will be entitled to seek
injunctive relief to prevent the other party from commencing or continuing any action constituting such
breach without having to post a bond or other security and without having to prove the inadequacy of any
other available remedies. Nothing in this paragraph will be deemed to limit or abridge any other remedy
available to either party at law or in equity.
{00085609-2}Service Agreement Page 18 of 21
Exhibit A
Itemized Billing Cost Sheet
{00085609-2}Service Agreement Page 19 of 21
Exhibit B
Business Associate Agreement
(required for optional EMS billing service)
{00085609-2}Service Agreement Page 20 of 21
Exhibit C
RFP
{00085609-2}Service Agreement Page 21 of 21
Exhibit D
Proposal
City of Georgetown, Texas
SUBJECT:
Consideration and possible recommendation to amend the Contract for Architectural Services with
ADG to expand the scope of services to include design of the Tactical Training Facilities and
increase the lump sum fee in the amount of $139,954—Wayne Nero, Chief of Police
ITEM SUMMARY:
The original contract for Architectural Services did not include architecture and engineering
services related to the Tactical Training Facilities. This proposed amendment will expand the
scope of services to cover the Tactical Training Facilities design and increase the lump sum fee
according.
FINANCIAL IMPACT:
$139,954.
The funding is budgeted within the Public Safety Operations and Training Centers Total Project
Cost.
SUBMITTED BY:
Wayne Nero, Chief of Police
ATTACHMENTS:
Description Type
Addl Services Request Cover Memo
Arch Design Services Agreement Cover Memo
City of Georgetown, Texas
SUBJECT:
Discussion on proposed changes to the Alarm Ordinance - Council Member Keith Brainard
ITEM SUMMARY:
Proposed changes to the Alarm Ordinance, requested by Council Member Brainard for discussion
and analysis:
require that burglar alarm permits be updated every three years, rather than annually
reduce the permissible number of false alarms that do not result in a fine, from three to two
establish a fine of $100 for the third through the fifth false alarm each year establish a fine
of $250 for each false alarm after the fifth
authorize the chief of police to waive or reduce fines, and to reduce permit fees, for non-
profit, educational, and governmental entities
Objectives are:
to reduce the incidence of false alarms;
to more closely match the fines with the cost (financial and otherwise) to the city of
responding to them;
and to reduce the burden on alarm permit holders.
FINANCIAL IMPACT:
Micki has agreed to have her staff develop a cost estimate of these proposed changes. I am open to
discussion of these proposals
SUBMITTED BY:
Council Member Keith Brainard
ATTACHMENTS:
Description Type
Proposed changes to Ordinance Cover Memo
Sec. 6.60.030. Permit requirement; application; issuance.
A.
It is unlawful for an alarm system user to cause or permit the installation,
maintenance or operation of an alarm system at an alarm site unless a permit has
been issued by the City for the alarm system.
B.
An alarm system permit is necessary for each alarm site. A permit may cover one or
more alarm systems at an alarm site.
C.
An application for an alarm system permit shall be made by the alarm system user
on a form prescribed by the City. The application form shall include:
1.
The name, address and telephone number of the alarm system user;
2.
The street address of the alarm site;
3.
The type of property to be protected (i.e., commercial, residential or
industrial) and the type of alarm system to be installed at the site;
4.
Any business name or title used for the alarm site;
5.
Name, address and telephone number of the alarm protective service or
person who will install and service the alarm system;
6.
Names and telephone numbers of at least two people who are able to and
have agreed to receive notification, and respond within 30 minutes, at any
time from the police or fire department in order to deactivate the alarm
system if it becomes necessary; and
7.
Any other pertinent information required by the police or fire department
which is necessary for the enforcement of this Chapter.
D.
Except as otherwise provided in Section 6.60.040, the City shall issue a permit to the
alarm system user upon submission of a complete application and payment of the
appropriate fee.
E.
The owner or property manager of an apartment complex shall obtain a master alarm
permit if an alarm system is operated in:
1.
A residential unit on the premises, whether the alarm system is furnished by
the owner or property manager or contracted for by an individual tenant; or
2.
A non-residential area of the apartment complex, including a common tenant
area, office, storage, or equipment area.
3.
The City will treat information on applications for permits for alarm systems
designed to detect criminal activity as confidential in accordance with
applicable laws.
F.
Any permit issued pursuant to this Chapter is applicable only to the permit holder and
is not transferable. A business that changes its name will retain the same permit,
provided that the permit holder and alarm site remain the same. Any business that
changes its name must notify the Georgetown Police Department, in writing, within
ten days of the change and must update the alarm permit application.
G.
Each permit issued to an alarm system user is valid for one three years or until one
of the following occurs within the yearpermit period:
1.
Control of the alarm site is transferred from the permit holder to another
person or the location of the alarm site is changed.
2.
The permit holder voluntarily discontinues services provided by a particular
alarm protective service or disconnects the alarm system.
3.
The permit is revoked by the City pursuant to Section 6.60.110.
H.
No permit shall be issued or renewed if service fees assessed under Section
6.60.090 remain unpaid. No burglar alarm system permit will be terminated for non-
renewal without 30 days notice by the City to the permit holder.
(Ord. No. 2008-22, § 2; Ord. No. 2007-51, § 2)
Sec. 6.60.040. Grounds for denial of permit.
A permit may be denied for:
1.
Any false statement on the application;
2.
Any false statement by applicant in connection with the application;
3.
An applicant has failed to pay a service fee assessed under this Chapter; or
4.
An applicant has had an alarm site revoked, and the violation causing the
revocation has not been corrected.
(Ord. No. 2007-51, § 2)
Sec. 6.60.050. Operation and maintenance of alarm systems.
A.
A permit holder shall:
1.
Maintain the premises containing an alarm system in a manner that ensures
proper operation of the alarm system;
2.
Maintain the alarm system in a manner that will minimize false alarm
notifications;
3.
Respond or cause a representative to respond within one hour when notified
by the City to repair or inactivate a malfunctioning alarm system, to provide
access to the premises, or to provide security for the premises; Subsection
6.60.030 C.6. requires a representative to respond within 30 minutes.
4.
Not manually activate an alarm system for any reason other than the
occurrence of an event that the alarm system was intended to report;
5.
Utilize "relaying intermediaries" for residential alarm systems of all
classification types; and
6.
Utilize "relaying intermediaries" for commercial alarm systems of all
classification types except holdup alarms.
B.
A permit holder of a local alarm shall adjust the mechanism or cause the mechanism
to be adjusted so that an alarm signal will sound for no longer than 15 minutes after
being activated.
(Ord. No. 2007-51, § 2)
Sec. 6.60.060. Policies and procedures.
A.
The Chief of Police shall institute policies and procedures in the form of operational
orders to implement this Chapter.
B.
The Chief of Police shall publish or make available on the City's website pertinent
excerpts from this Chapter and any relative policy statements that may be issued
concerning the "standards" for the operation of alarm systems subject to this
Chapter.
(Ord. No. 2007-51, § 2)
Sec. 6.60.070. Police response.
A.
The response, if any, made to a signal from a permitted alarm system shall be
subject to the policies and procedures of the police department and will be in
accordance with the priorities set for police response.
B.
The issuance of a permit authorizing the use of an alarm system is not intended to
nor shall it create a contract, either express or implied, nor does it create a duty or
guarantee of response by the Georgetown Police Department. Any and all liability
and consequential damages resulting from the failure to respond to a notification is
hereby disclaimed and governmental immunity as provided by law is retained.
(Ord. No. 2007-51, § 2)
Sec. 6.60.080. Fees.
A.
A permit holder, including the holder of a master alarm permit, shall pay to the police
department:
1.
The permit fee; and
2.
False alarm service fee assessed under Section 6.60.090.
B.
The fees assessed under this Section are established as follows:
1.
Residential: $25.00.
2.
Commercial: $25.00.
3.
Alarm company: $100.00.
(Ord. No. 2010-18, § 3; Ord. No. 2007-51, § 2)
Sec. 6.60.090. False alarm notifications and service fees.
A.
The holder of an alarm permit shall pay a service fee, as provided for in the fee
schedule found in Subsection E., for each false alarm notification that is in excess of
three two false alarms within any 12-month period determined from the date of alarm
registration.
B.
Service fees are required to be paid within 30 days of the post mark on the invoice
for such fees.
C.
For any alarm notification for which a service fee is assessed, the Chief of Police, or
their designee, has the authority to investigate the circumstances of the alarm, and
may waive the payment of the fee. If the responding police or fire officer determines
that an alarm notification was caused by an emergency, that notification shall not be
considered in determining when a service fee will be assessed.
D.
An alarm notification shall not be considered in determining when a service fee will
be assessed if the owner can demonstrate that the alarm notification was the result
of severe weather affecting either the alarm system or the telephone lines delivering
such notification or a power outage lasting for more than four hours.
E.
Service fees.
Number of False Alarms Fees
1—32 $ 0.00
43—5 50100.00
6—7 75.00
8 6 and above 100250.00
F.
As it pertains to a permit holder who has more than eight five false alarms per year,
the Chief of Police may require the alarm systems monitor to attempt to contact the
occupant of the alarm system location twice before the City responds to the alarm
signal as provided by V.T.C.A., Local Government Code § 214.198.
(Ord. No. 2010-18, § 3; Ord. No. 2007-51, § 2)
Sec. 6.60.100. Exceptions.
The Chief of Police may waive or reduce the registration fee and fines may be
waived for local, state and federal governmental agencies, educational institutions, churches
and non-profits. The listed agencies are subject to any and all service fees associated with
false alarms.
(Ord. No. 2007-51, § 2)
Sec. 6.60.110. Denial; revocation of permit.
A.
The Alarm Unit Commander may deny issuance or revoke an alarm system permit if
the Commander determines that:
1.
There is a false statement of a material matter on the application for a permit;
2.
The permit holder has violated any section of this Chapter;
3.
The permit holder causes or permits any intentional activation of an alarm
system for the purpose of testing the response by the police or fire
department;
4.
The permit holder has failed to make timely payment of a service fee
assessed under Section 6.60.090; or
5.
The number of false alarms at any one alarm site exceeds ten during any 12-
month period.
B.
If the Commander revokes a permit, the Alarm Administrator will send to the permit
holder by certified mail, return receipt requested, written notice of the action and a
statement of the right to an appeal.
C.
It is unlawful for an alarm system user to operate an alarm system during a period in
which the permit for the system is revoked.
(Ord. No. 2007-51, § 2)
Sec. 6.60.120. Appeal of service fee or revocation of permit.
A.
A permit holder may present evidence to the Chief of Police that the activation of an
alarm system was not a false alarm.
1.
A permit holder may appeal the assessment of a false alarm service fee by
filing with the Chief of Police a written request for a hearing setting forth the
reasons for the appeal within ten days after the assessment of the service
fee.
2.
The filing of an appeal with the Chief of Police stays the assessment of the
service fee until the Chief of Police makes a final decision.
3.
If an appeal is not made within the ten-day period, the assessment is final.
4.
The burden shall be on the permit holder to prove that the activation of the
alarm system was not a false alarm.
5.
If the Chief of Police determines that the activation was not a false alarm, any
response by the police or fire department to the activation will not be
assessed fees.
B.
A permit holder may appeal the revocation of a permit to the Chief of Police.
1.
Permit holder may appeal by filing with the Chief of Police a written request
for a hearing, setting forth the reasons for the appeal, within ten days after
receipt of notice of the revocation from the Alarm Unit Commander.
2.
The filing of an appeal with the Chief of Police stays the revocation until the
Chief of Police makes a final decision.
3.
If an appeal is not made within the ten-day period, the revocation is final.
C.
The Chief of Police or his or her designee will serve as Hearing Officer at an appeal
hearing.
1.
Formal rules of evidence do not apply, and the Hearing Officer will make a
decision on the basis of a preponderance of the evidence presented at the
hearing.
2.
The Hearing Officer will render a decision within 30 days after the request for
an appeal hearing is filed.
3.
The Hearing Officer will affirm, reverse or modify the action forming the basis
for the appeal.
4.
The decision of the Hearing Officer is final as to administrative remedies with
the City.
(Ord. No. 2007-51, § 2)
Sec. 6.60.130. Reinstatement of permit.
A permit may be reinstated by the Alarm Unit Commander when the revoked permit
holder pays the application fee and any outstanding service fees and shows:
1.
That the fees required under this Chapter have been paid; and
2.
The alarm system is operated in accordance with the requirements of this
Chapter.
(Ord. No. 2007-51, § 2)
Sec. 6.60.140. Penalty.
A.
Any person who shall violate any of the provisions of this Chapter, or fail to comply
therewith, or with any requirements thereof, within the City limits shall be deemed
guilty of an offense and shall be liable for a fine in accordance with the general
penalty provision found in this Chapter. Each day the violation exists shall constitute
a separate offense.
B.
Any person who operates, causes to be operated, or allows to be operated an alarm
system without a valid permit shall be charged a fee as set forth in the false
notification section herein for each notification of activation. This is in addition to any
criminal penalty imposed for violation of this Chapter. This fee may be applied to an
original alarm permit application for first time offenders.
C.
It shall be a class C misdemeanor for any person to knowingly cause any category of
false alarm notification to be activated, or such incident may be investigated if
applicable as a violation of Texas Penal Code § 42.06, "False Alarm or Report," a
class A misdemeanor or State jail felony depending upon circumstances.
D.
The fee imposed for false alarms shall not exceed the amount set forth herein in the
case of false alarm notification based on the type and category of alarm signaled.
E.
The alarm fee schedule in Section 6.60.090 is hereby adopted and may be amended
from time to time by Chief of Police and approval of City Manager.
(Ord. No. 2007-51, § 2)
City of Georgetown, Texas
SUBJECT:
Policy discussion regarding the financial impacts of new age restricted developments on the City's
financial condition - Micki Rundell, Chief Financial Officer
ITEM SUMMARY:
The law that allows the Over 65 and Disable Property Tax freeze was authorized by the state in
2003 and approved by Georgetown voters in May 2004. Williamson County elected to approve the
freeze by resolution shortly thereafter.
Since 2004, the City's “frozen” valuation has grown significantly to $1.6B or 30% of the City's
total $5.2B tax base, thus having a substantial impact to the City's tax revenues. The City has been
successful in developing strategies to mitigate this financial tax rate impact. New commercial
growth has historically helped in offsetting the increasing growth in frozen value as a percentage
of TOTAL assessed valuation. But as the Frozen Valuation percentage grows, it will be harder to
offset the tax rate and related revenue impacts. The results will be higher taxes for non-frozen
residential and commercial properties. Other strategies that have been implemented include
diversifying the City's revenue sources with less General Fund dependence on Property Tax
revenue (currently approximately 20% of the $45M GF budget is funded by property taxes), as
well as, working to control increases in operational costs.
This item is to discuss financial policy issues and related options for potential new age restricted
developments that may be established in the future.
FINANCIAL IMPACT:
TBD
SUBMITTED BY:
Micki Rundell, Chief Financial Officer
City of Georgetown, Texas
SUBJECT:
A motion that GGAF direct Staff to accomplish an analysis of a 3-year rolling average of property
assessments as the basis for the city tax levy and to present that analysis to GGAF within 90 days -
Council Members Hesser (Originator) and Fought (Co-Sponsor)
ITEM SUMMARY:
Background: Georgetown property values have increased considerably in the past few years
following a period of decline/stagnation. These fluctuations obviously have an impact on the city
budget as well as the property owners' annual taxes. Variations, both up and down, are natural.
However, variation in the extreme can cause difficulties. Specifically, rapid increases provide a
false sense of prosperity for city planners that may be short-lived and be followed by punishing
revenue reductions when market corrections or downturns occur. These same rapid increases can
have dramatic and detrimental effects on property owners, especially those on fixed income or
otherwise tight budgets. It therefore seems reasonable to seek some modicum of stability and
predictability in both city revenues and property owner costs. One way to accomplish that
objective would be to dampen these variations by basing the property tax levy on a rolling average
of assessed value rather than an annual revision.
Proposal: We propose using a rolling 3-year average on property assessments as the basis for
levying city property tax. The hypothesis behind this proposal is that net impact would be to lessen
the increase in city revenues during a period when property assessments are increasing, and to
lower the reduction in city revenues during a period where property taxes are decreasing. This
would increase the stability, and predictability, of both the city revenues and the property owner
taxes.
Request for Analysis. Staff is asked to provide GGAF with an analysis of the impact this
approach would have had on both city revenues and property owner taxes over the 10-year period
of 2005-2014 and a prediction of the impact on those same areas for a 10-year period, beginning in
2015. The predictive portion of the analysis should incorporate a reasonable range of variations
both up and down. In addition to aggregate comparisons, we would like to see specific cases
displaying the impact on the tax levy (going forward) for a home valued at $200,000 in 2005 and
for a home valued at $200,000 in 2014. If the rolling-average approach is deemed feasible and
advisable GGAF would have the prerogative of forwarding the analysis, along with its
recommendations, to Council.
Comments: Although this analysis is intended to examine only two factors (city revenues and
property tax levy), there are obviously collateral or spillover effects of any tax policy and issues
with regard to legislative requirements. Staff is encouraged to include these factors in their
completed analysis as well as present other approaches to achieve the same objectives of stability
and predictability
FINANCIAL IMPACT:
TBD
SUBMITTED BY:
Council Members Hesser (Originator) and Fought (Co-Sponsor)
City of Georgetown, Texas
SUBJECT:
Adjourn meeting.
ITEM SUMMARY:
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
GGAF Board Member