R-1104 - 06/14/2011 - AGREEMENT - Resolutions Supporting Documents/.
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AGENDA ITEM
Regular Board of Trustees Meeting
of
June 14, 2011
ITEM 10.C.1)
SUBJECT: Authorization to Renew Contract — Paramedic Services of Illinois, Inc.
FROM: Thomas McEllin, Fire Chief J
BUDGET SOURCE/BUDGET IMPACT: 2011/2012 EMS Program 731 -7700
RECOMMENDED MOTION: I move that the Village Board renew the contract with
Paramedic Services of Illinois, Inc. for 2011 -2014 and approve Resolution 2011- AG- EX1 -R-
1104, A Resolution Approving And Authorizing The Execution Of An Agreement Between
Paramedic Services Of Illinois, Inc. And The Village Of Oak Brook
Backeround/Histo
On September 1, 2008, the Village of Oak Brook entered into a successor agreement with
Paramedic Services of Illinois, Inc. (PSI) to provide the Village with contract paramedic services
through August 31, 2011. The agreement was amended in 2010 when PSI, at the request of the
Village, voluntarily reduced the number of contract paramedics supplementing the sworn fire
department staff, from six to five. Fire Department staff is recommending the contract be
renewed for three (3) years until August 31, 2014. Section 22 contains a three month, no penalty
cancellation agreement.
This professional service contract is for one of the most critical emergency functions the Village
provides to its residents. It is not unusual that departments have long standing professional
service contracts with their paramedic providers. Many departments have kept their same
provider for over twenty-five (25) years. All of our PSI personnel are trained and experienced in
paramedic and basic firefighting skills giving us great flexibility.
PSI History:
Our partnership with Paramedic Services of Illinois began in 1989 when they provided one (1)
paramedic per shift to support our Village firefighter /paramedics. The company is a leading
provider of contractual paramedic services and has developed a distinguished reputation in the
industry of employing dedicated professionals, and maintaining high standards. As industry
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leaders since 1977 they have helped set the standards for paramedic excellence and work side by
side with Oak Brook's paramedics to provide the highest patient care possible.
PSI has worked with the Village as a partner through difficult economic times. Despite
uncertainty with the paramedic contract, they have maintained their standards of professionalism.
In addition to amending the contract upon request and agreeing to reduce the contract size, the
company and employees volunteered their paramedic services, and was a premier financial
sponsor for the Taste of Oak Brook both in 2010 and 2011. PSI has not received pay increases
for the last two (2) years (2009, 2010) although their company's operating costs have risen.
Ouality/Value Obiective:
The philosophy of the Village, in the past, has been to provide the highest quality contract
paramedics at a sound value. The value of an experienced, well vetted work force cannot be
overemphasized. Our mutual goal is to hire and retain dedicated, seasoned medics of
unblemished character. Several crews have been recipients of the Joseph Hartmann Award of
Excellence, which is one of the highest honors for EMS professionals. The community has
invested in these people through experience and training. We do not want to reduce this level of
service with turnover.
Bid Alternative:
Most departments do not go through a formal bid process if they are pleased with the
performance of their professional service contract provider and are confident they are paying an
acceptable price. As stated, PSI has performed above expectations in the past and exceptionally
well the last few years. The cost is very competitive when compared to other mature contracts
where character, experience, high standards and low turnover are expected.
The fire department command staff strongly feels that the negative consequences far outweigh
the minimal cost savings which may be realized on a contract our size should a new paramedic
provider be chosen. The transition would have immediate negative impacts on the quality of
patient care and effectiveness of fire department operations. We currently have stability in the
work force and team cohesiveness, which took years to develop. Trust and teamwork are
essential on fire calls as well as EMS emergencies. At our most recent house fire, April 29, 2011,
the contract and sworn firefighters worked side by side to combat the blaze.
It would place a substantial administrative undertaking on staff to abruptly train up to two new
FF/PM for each ten person shift. The two trainees would also account for half of the daily
ambulance staffing. In addition to their proficiency in standard operating procedures as
developed and approved by the Region 8 resource hospitals included in this area, these
employees are also expected to supplement our firefighters on fire and rescue calls. As stated, it
takes years to develop trusted team members who are readily familiar with our department's
regulations, operating procedures, equipment, street locations, and of course our citizens.
While several current PSI FF/PM may be offered employment with a new vendor; that is no
guarantee they would take the position. PSI has successfully recruited, vetted, trained and
retained these personnel. Most likely, senior PSI employees would be transferred to other
departments as they are valued employees who have chosen PSI as their career employer.
Cost:
The Village is still receiving premium service, yet the premium for these vetted experienced
paramedics has dissipated due to the cost freeze in place the last two (2) years. This is based on
the enclosed chart of local area contract cost comparisons. The departments are labeled A -J.
Several Chiefs have offered this information, requesting confidentiality. Although most contracts
listed are larger and received average pay increases over 3 %; staff is recommending a 2.5%
increase. Other contract services with the village such as tree trimming and landscaping have
risen about 3 %. This increase is also less than the twelve (12) month Consumer Price Index for
the Chicago area ending April 2011 which rose 2.7 percent.
It should be pointed out that along with experience and qualifications another important cost
factor is the size of the contract. As you can see from the chart, most contracts are for a greater
number of personnel. With larger contracts, service providers can charge less per employee as
there is dilution of cost. Typically, there are a higher number of junior paramedics per more
experienced supervisory personnel. When the Village requested that PSI change the contract size
from six to five, the department also requested to retain the most experienced members. The unit
price increased as the PSI supervisor position and more experienced members cost more than
entry level personnel. In short, a greater share of the contract goes to employee wages and
benefits than larger contracts. Also, when the PSI employees take leave, the department request
seasoned replacements. PSI will pay overtime rather than bring in lower cost employees who are
not familiar with Oak Brook.
Recommendation:
Staff recommendation is to renew the professional service contract with Paramedic Services of
Illinois, Inc. and authorize an increase in the compensation rate of $406,312.91 or $33,859.41 per
month for five contract firefighter /paramedics. This represents an increase of 2.5% for 2011-
2012. The rate is reviewed annually and any adjustment would go to the Village Board for
approval. This rate provides for modest increases for salary, FICA, insurance, training, uniforms,
fire gear, and operational cost that have all risen the last few years.
RESOLUTION 2011 -AG-EX1 -R-1 104
A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION
OF AN AGREEMENT BETWEEN THE VILLAGE OF OAK BROOK
AND PARAMEDIC SERVICES OF ILLINOIS, INC.
WHEREAS, since 1989 the Village has been in partnership with Paramedic Services of Illinois,
Inc. (PSI) for the provision of contractual paramedic services to supplement the full -time
firefighter /paramedics of the Oak Brook Fire Department; and
WHEREAS, the last Agreement with PSI has been in force since September 1, 2008 and will
expire on August 31, 2011; and
WHEREAS, the President and Board of Trustees have determined that it is in the best interests of
the Village to approve and authorize the execution of an Agreement with PSI for services from September
1, 2011 through August 31, 2014.
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Approval of the Agreement. The President and Board of Trustees hereby
approve the Agreement between the Village and PSI in a form substantially the same attached to this
Resolution as Exhibit A and in final form acceptable to the Village Manager and the Village Attorney.
Section 3: Authorization and Execution of the Agreement. The Village President and Village
Clerk shall be, and hereby are, authorized to execute the final Agreement on behalf of the Village.
Section 4: Effective Date. This Resolution shall be in full force and effect upon passage and
approval in the manner provided by law.
APPROVED THIS 14th day of June, 2011.
PASSED THIS 14th day of June, 2011.
Ayes:
Nays:
Gopal G. Lalmalani
Village President
Resolution 2011- AG -EX1 -R -1102
Approving the Execution of
PSI Agreement
Page 2 of 8
ATTEST:
Charlotte K. Pruss
Village Clerk
EXHIBIT A
AGREEMENT
Resolution 2011- AG -EXI -R -1102
Approving the Execution of
PSI Agreement
Page 4 of 8
AGREEMENT BETWEEN THE VILLAGE OF OAK BROOK, ILLINOIS
AND
PARAMEDIC SERVICES OF ILLINOIS, INC.
THIS AGREEMENT is entered into this 1st day of September 2011, between the VILLAGE OF OAK
BROOK, ILLINOIS, a municipal corporation (hereinafter referred to as "VILLAGE ") and PARAMEDIC
SERVICES OF ILLINOIS, INC., an Illinois corporation (hereinafter referred to as "PSI ").
In consideration of the covenants and agreements contained herein, together with good and valuable
consideration, the receipt and sufficiency of which is acknowledged, the VILLAGE and PSI agree as
follows:
1. OBLIGATIONS OF PSI: PSI shall furnish five licensed firefighter /paramedics ( "PSI
Employees ") to the VILLAGE. PSI Employees will be required to work the same 24/48 -
hour shift schedule as firefighter /paramedics employed by the Village of Oak Brook Fire
Department. Prior to being assigned to the 24/48 hour shift, all new PSI Employees shall
become acclimated to service in the Oak Brook Fire Department by serving a minimum
of five (5) eight (8) hour shifts, as directed by the Village's Fire Chief ( "Fire Chief'). The
VILLAGE will reimburse PSI for any additional salary expense incurred during this
acclimation period. The Fire Chief, or his designee, shall assign all PSI Employees to
work shifts consistent with the needs of the VILLAGE.
2. PARAMEDIC LICENSE: All PSI Employees shall, at all times, be licensed as
paramedics by the State of Illinois and shall be approved to work within the Good
Samaritan Hospital Emergency Medical Services System. Proof of these credentials
must be submitted to the Fire Chief prior to initial service to the VILLAGE. All PSI
Employees shall continue their professional training and education to maintain the
aforesaid requirements. Such training and education shall be at the sole expense of PSI
and shall not be restricted to compliance solely during regular tours of duty. PSI shall
use all reasonable effort to provide the VILLAGE with PSI Employees with at least two (2)
years experience as a licensed paramedic.
3. FIREFIGHTER CERTIFICATION: All PSI Employees assigned to the VILLAGE shall be
State of Illinois Certified Firefighter II according to the criteria established by the Office of
the Illinois State Fire Marshal's Division of Personnel Standards and Education. Proof of
these credentials must be submitted to the Fire Chief prior to initial services to the
VILLAGE. PSI shall use all reasonable effort to provide the VILLAGE with PSI
Employees with at least two (2) years experience as a Firefighter IL
4. ADDITIONAL PARAMEDIC CERTIFICATIONS:
A. If any PSI Employee has additional paramedic certification levels or
achievements, these additional credentials shall also be submitted to the Fire
Chief prior to initial service to the VILLAGE. PSI Employees may be required by
the Fire Chief to participate in continuing education, which may be held in the
VILLAGE fire stations by the Good Samaritan EMS System. The cost of any off
duty continuing education /testing that is required by the Fire Chief shall be
included in PSI's monthly statement to the Village. PSI Employees assigned to
the VILLAGE may actively pursue the following certifications, if approved by the
Fire Chief. All costs approved by the Fire Chief for said training, including tuition
and personnel costs, shall be included in PSI's monthly statement to the Village.
Advanced Cardiac Life Support
• Pediatric Advanced Life Support
• Pre - hospital Trauma Life Support
B. If the PSI Employee has additional firefighter certification levels or achievements,
these additional credentials shall be submitted to the Fire Chief prior to initial
Resolution 2011- AG -EX1 -R -1102
Approving the Execution of
PSI Agreement
Page 5 of 8
service to the VILLAGE. PSI Employees assigned to the VILLAGE may be
required to actively pursue the following certifications, as directed by the Fire
Chief. All costs for said training, including tuition and personnel costs, shall be
included in PSI's monthly statement to the Village.
Hazardous Materials Operations
• Confined Spacerrrench Awareness
C. PSI Employees assigned to the Village shall have, or obtain, a State of Illinois
class "B" driver's license, issued from the Office of the Secretary of State, with
the assistance of the VILLAGE'S training division, as soon as practical. Any
additional salary expense or fees incurred as a result of a PSI Employee's
acquisition of a class "B" driver's license, shall be paid by PSI.
5. REPLACEMENT PERSONNEL: In the event of any absence of any PSI Employee, for
any reason, PSI shall provide, at its own expense, a similarly - qualified replacement,
approved by the Fire Chief, to fulfill the assigned duties of the regularly scheduled PSI
Employee.
6. SUPERVISOR: One (1) of the PSI Employees assigned to the VILLAGE, shall be
designated PSI's Supervisor. This Supervisor shall be responsible for the coordination of
all PSI Employees' activities, and will serve as a liaison between PSI and the VILLAGE,
and /or the Fire Department of the VILLAGE.
SELECTION OF PSI EMPLOYEES: The Fire Chief, prior to placement, shall approve all
PSI Employees. Additionally, each PSI Employee shall have successfully completed a
thorough background investigation, physical, and drug screen. In the event of a vacancy,
or, if additional personnel are requested by the VILLAGE, PSI shall furnish the resume(s)
of the candidate(s) PSI recommends to fill the vacancy to the Fire Chief. If any PSI
Employee terminates his /her employment with PSI, or transfers to another municipality,
PSI shall provide the VILLAGE with fourteen (14) days prior notice, whenever possible.
Thereafter, the VILLAGE shall select a replacement PSI Employee pursuant to the
foregoing procedures.
8. CHAIN OF COMMAND: Each PSI Employee shall accept direction from the VILLAGE,
Fire Chief, or from such other officer(s) of the Fire Department of the VILLAGE, as the
Fire Chief designates. Each PSI Employee shall be subject to, and abide by, all
regulations, rules, ordinances, procedures and codes established, and in effect, by the
VILLAGE, the Fire Department, the State of Illinois Department of Public Health, the
Illinois State Fire Marshal's office, or any other governmental unit applicable to the
operation of a paramedic program and ambulance service. Each PSI Employee shall
abide by all provisions of the ethics ordinance of the VILLAGE. The Fire Chief of the
VILLAGE may request that PSI remove from service to the VILLAGE any PSI Employee,
for any reason, upon fourteen (14) days prior written notice to PSI, or less in the event
there is a significant safety or security issue, as determined by the Fire Chief. In the
event of a termination at the request of the VILLAGE, the VILLAGE shall select a
replacement PSI Employee pursuant to the procedures recited in Paragraph 7 of this
Agreement.
9. STATUS OF PSI AND ITS PARAMEDICS: PSI agrees that it is a separate and
independent enterprise from the VILLAGE, that it has a full opportunity to find other
business, that it has made its own investment in its business, that no joint employment,
agency or partnership relationship is created by this agreement, and that the VILLAGE
will not be liable for any obligation incurred by PSI. PSI and the VILLAGE agree that this
agreement does not create an employer - employee relationship between PSI or PSI
Employees and the VILLAGE. PSI shall be deemed to bean independent contractor for
all purposes, and all PSI Employees provided to the VILLAGE pursuant to this
Resolution 2011- AG -EXt -R -1102
Approving the Execution of
PSI Agreement
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agreement, are employees of PSI and are not employees of the VILLAGE. PSI shall be
responsible for the payment of all wages, salaries, overtime pay, holiday pay, sick pay,
vacation pay, federal and state withholding, including FICA, health, accident and life
insurance, pension or profit sharing contributions, unemployment insurance, Workers'
Compensation insurance, and any other obligations or benefits required by, and in
accordance with, state or federal laws, including the Fair Labor Standards Act, the
Federal Insurance Contribution Act, the Social Security Act, the Federal Unemployment
Tax Act, the Internal Revenue Code, the Illinois Workers' Compensation Act, and the
Illinois Unemployment Insurance Act, and shall indemnify and hold the Village harmless
from any and all claims, demands, judgments and awards for such items. PSI shall have
the sole obligation to make or cause to be made payments which may be due for claims
under the Workers' Compensation Act, and expressly waives any right to recover from
the VILLAGE for any such claims, attorneys' fees, expenses, or other costs on account of
any injury or workers' compensation claim made by any PSI Employee providing
services under this agreement.
10. DUTY ASSIGNMENTS: PSI Employees shall be capable of performing the duties set
forth in the Firefighter /Paramedic Job Description of the VILLAGE, hereby attached as
Exhibit "A", and shall perform those duties along with other duties assigned from time to
time by the Chief providing such other duties are within their capabilities.
11. OPTIONAL DUTY ASSIGNMENTS:
A. In the event coverage cannot be found to work a special or regular duty
assignment by VILLAGE employees, PSI Employees will have the option to provide this
coverage, at the discretion of the Fire Chief. PSI shall then invoice the VILLAGE for the
additional time at an hourly rate that will be determined by the prevailing, average over-
time rate, plus costs.
12. PHYSICALS: PSI Employees assigned to the VILLAGE shall receive and pass all
OSHA - required evaluations and SCBA Mask Fit test annually. PSI shall pay any costs
for these evaluations /tests.
13. DRUG TESTING: PSI Employees shall also participate in a random drug /alcohol-
screening program that includes randomly testing up to two PSI Employees, assigned to
the VILLAGE, per year. Where there is reasonable suspicion to believe that a PSI
Employee is either impaired due to being under the influence of drugs or alcohol while on
duty, or the PSI Employee is involved in an on -duty accident, or is arrested for illegal
activity, whether on or off duty, or commits a serious rule violation, that PSI Employee
may also be required to submit to testing. The drug tests shall include a ten -panel screen
with cut -off levels established by the Village. PSI shall pay any costs for these
evaluations /tests.
14. UNIFORMS: PSI shall furnish and provide each PSI Employee with sufficient uniforms
and approved fire gear, as specified and directed by the Fire Chief.
15. HOUSING: The VILLAGE shall allow PSI Employees to utilize the VILLAGE Fire Station
facilities (i.e. kitchen, day room, sleeping quarters).
16. EQUIPMENT AND VEHICLES: The VILLAGE shall provide fully equipped (including all
telemetry equipment) mobile intensive care ambulances as specified by the Good
Samaritan Hospital EMS System. All costs of emergency vehicle operation and
emergency vehicle maintenance shall be borne by the VILLAGE. In the event any of the
aforesaid equipment or vehicles is damaged as a result of the negligence, and /or
intentional misconduct of PSI Employees, the VILLAGE shall be responsible for repairing
Resolution 201 1-AG-EXI-R-1 102
Approving the Execution of
PSI Agreement
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or replacing the equipment and /or vehicles at PSI's reasonable, and agreed upon,
expense. In this event, the VILLAGE shall furnish at PSI's expense, at its discretion,
a substitute vehicle and /or equipment while the vehicle /equipment is not operational.
17. SERVICE AREA: PSI Employees shall provide all services within the corporate limits of
the VILLAGE and areas outside the corporate limits served by the VILLAGE Fire
Department. Additionally, PSI Employees shall provide all service within the corporate
limits of any municipality, which has entered into mutual aid agreements with the
VILLAGE, when so designated by the VILLAGE Fire Chief.
18. COMPENSATION: The VILLAGE shall pay to PSI the following compensation for
services rendered:
A. For the time period September 1, 2011 through August 31, 2012, the sum of
$405,321.90 or $33,776.83 per month shall be paid.
B. For the time period September 1, 2012 through August 31, 2013 and again for
the time period September 1, 2013 through August 31, 2014, PSI's yearly
compensation for services rendered will be evaluated and adjusted to a mutually
agreed upon rate based upon the cost of PSI's employee benefits and
operational costs.
C. Each monthly fee shall be payable no later than the fifteenth (15'") day of the
month following each full month of service.
19. INSURANCE AND INDEMNIFICATION:
A. PSI shall indemnify, hold harmless, and defend the VILLAGE from any and all
claims, demands, causes of action, suits, judgments and awards, together with
attorney's fees incurred by the VILLAGE as a result of any injury to or death of
persons, damage to property, or civil and /or constitutional infringement of rights
(specifically including violations of the Federal Civil Rights Statutes), arising
indirectly or directly, in connection with, or under, or as a result of this agreement,
and caused solely by virtue of any act or omission of any PSI Employee, officer,
and /or agent.
B. VILLAGE shall indemnify, hold harmless, and defend PSI from any and all
claims, demands causes of action, suits, judgments and awards, together with
attorney's fees incurred by PSI as a result of any injury to or death of persons,
damage to property, or civil and /or constitutional infringement of rights
(specifically including violations of the Federal Civil Rights Statutes), arising
indirectly or directly, in connection with, or under, or as a result of this agreement,
and caused solely by virtue of any act or omission of any VILLAGE employee,
officer, and /or agent.
C. PSI shall, at all times during the term of this agreement, maintain health and life
insurance, unemployment insurance, workers' compensation insurance, and
comprehensive liability insurance, insuring it and PSI Employees. The
comprehensive general insurance shall contain not less than two million dollars
($2,000,000) combined comprehensive general liability coverage, two million
dollars ($2,000,000) malpractice and workers' compensation insurance
coverage. It is further agreed that if any of PSI's insurance renewal premiums
exceed 10% annually. PSI shall be given the opportunity to approach the
VILLAGE to request additional compensation to defer said increase. PSI shall
provide the supporting documentation for the need of said increase, and the
Village may determine in its sole discretion whether to provide such additional
compensation. A copy of the celtificate(s) of insurance shall be furnished to the
VILLAGE annually. Such insurance shall name the Village of Oak Brook and its,
elected official, officers, and employees as additional insured.
Resolution 2011- AG -EX1 -R -1102
Approving the Execution of
PSI Agreement
Page 8 of 8
20. PROHIBITED ACTIVITIES: No commercial activities by PSI Employees are
permitted while PSI Employees are on duty. No solicitation of, or by PSI
Employees is permitted while PSI Employees are on duty for the VILLAGE.
21. TERM OF AGREEMENT: This agreement shall be effective from September 1,
2011 through August 31, 2014.
22. CANCELLATION: The parties agree that each may, at any time, cancel this
agreement without penalty and without cause, upon giving the other three (3)
months written notice of such intent.
23. ADDITIONAL PERSONNEL: VILLAGE may add additional PSI Employees at
any time during the duration of the contract. The cost of the PSI Employees will
reflect the current year contract price per person.
24. COMPLIANCE WITH LAWS: The parties hereto agree to comply with the rules
and regulations of the Health Insurance Portability and Accountability Act, Illinois
Freedom of Information Act, and all other applicable federal, state and local laws.
25. NOTICE: All notices required to be given pursuant to this Agreement shall be
given in writing and shall be either personally delivered to the VILLAGE or PSI or
mailed by certified or registered mail, return receipt requested, as follows:
PARAMEDIC SERVICES OF ILLINOIS, INC.
9815 W. LAWRENCE AVE. SCHILLER PARK, IL 60176
VILLAGE OF OAK BROOK, ILLINOIS C/O VILLAGE MANAGER
1200 OAK BROOK ROAD
OAK BROOK, IL 60523
CC: FIRE CHIEF
26. BINDING EFFECT: This agreement shall be binding upon the VILLAGE, PSI,
their successors and assigns.
VILLAGE OF OAK BROOK,
An Illinois Municipal Corporation
PARAMEDIC SERVICES OF ILLINOIS, INC.
BY: BY:
VILLAGE PRESIDENT
PRESIDENT