Agenda - 11/02/1994 Workshop
CITY OF WOODBURN
270 Montgomery Street . Woodburn, Oregon 97071 · 982-5222
_ - - - - NOTICE - - - - -
I, LEN KELLEY, THE DUL Y ELECTED MA YOR OF THE CITY OF WOODBURN,
OREGON, DO HEREBY CALL A SPECIAL WORKSHOP MEETING OF THE WOODBURN
CITY COUNCIL TO BE HELD ON WEDNESDA Y, NOVEMBER 2, 1994 AT 7:00 P.M.
A T WOODBURN CITY HALL, COUNCIL CHAMBERS, 270 MONTGOMERY STREET,
WOODBURN, OREGON, SPECIFICALL Y TO DISCUSS WOODBURN AMBULANCE
FRANCHISE RENEWAL.
DA TED THIS n DA Y OF OCTOBER, 1994.
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AGENDA
1. CALL TO ORDER
2. ROLL CALL
3. WORKSHOP: Woodburn Ambulance Franchise
4 ADJOURNMENT
MEMO
TO:
Mayor and City Council
FROM:
Chris Childs, City Administrator
SUBJ.:
Council Workshop Re: AmbWance Franchise Renewal
DATE:
October 20, 1994 I .Revised October 31, 1994
The city's current ambulance franchise will expire on January 31, 1995. I have
recently been contacted by the owner/franchisee in regard to initiating discussions on
renewal' of the franchise. Prior to beginning formal negotiations on this matter, it is
helpful to staff for the Council to consider a very specific question in this regard:
"Does the city want to continue regulating ambulance service bv franchise?"
Precedent exists if the city decides that further regulation by franchise is
unwarranted; in 1986 the city abandoned its regulation of taxi service within the city.
There are both pros and cons concerning whether an ambulance franchise is
appropriate.
Possible reasons for continued franchising of ambulance service include:
_ Enhancement of franchisee's sole provider status within the city
- Continuation of franchise fee revenues
_ Enforcement of service levels if not provided by other jurisdictions (state,
county)
Possible reasons for discontinuing franchising of ambulance services include:
- Limited number of such franchises in Oregon (Woodburn/Mt. Angel)
_ Quality and level of service regulated by Oregon State Health Division
- Scope of operations (territory served) regulated by Marion County
(Ambulance Service Area Plan)
- Rates and charges effectively regulated by Medicare/Medicaid
Page 2 - Memo/Ambulance Franchise Renewal (10/31/94)
- Legal liability concerns
Woodburn Ambulance, Inc., the franchisee, has provided this service to
Woodburn for many years and intends to continue doing so. The most recent
franchise term was for six years. Most recently, a council resolution was approved
in February, 1993 to reflect an increase in the rates charged by the company.
Woodburn Ambulance presently pays a 1 % franchise fee to the city which generates
approximately $8,000 per year to the General Fund. Through separate agreements,
as a participant in "Norcom", the company also pays the city some $44,000 per year
in fees for the use of 9-1-1 PSAP and dispatch services.
The amount of the franchise fee was established at 1/10 of 1 % in 1984 (by
Ordinance 1899) and increased to the current 1 % in 1989 (by Ordinance 2015). Past
correspondence received from the franchisee has questioned the city's ability to
collect any type of percentage franchise fee. This was apparently based on
anticipation of franchising guidelines developed by the American Ambulance
Association, an industry lobbying group. The AAA guidelines have since been
published and I have obtained and reviewed a copy, finding nothing to suggest that
our present franchise fee arrangement is not entirely appropriate.
Woodburn Ordinances
11-15
11-15.4
Ordinance No. 2015
AN ORDINANCE GRANTING WOODBURN AMBULANCE SERVICE, INC., A NON-
EXCLUSIVE FRANCHISE TO OPERATE AN AMBULANCE SERVICE IN THE CITY OF
WOODBURN; DEFINING TERMS AND CONDITIONS OF SAID FRANCHISE; AND
REPEALING ORDINANCES 1899, 1960, AND 2012.
[Whereas clauses.]
THE CITY OF WOODBURN ORDAINS AS FOllOWS:
Section 1. Iitkl. This ordinance shall be known as the "Ambulance Service
Franchise Ordinance."
Section 2. Policy and PurDose. It is declared to be in the public interest of
health, safety, and welfare to provide for and regulate ambulance services within the
City of Woodburn to:
(1 ) Ensure effective and efficient emergency ambulance services to our
citizens;
(2) Comply with the provisions of the Marion County Ambulance Service Area
Plan.
Pursuant to ORS 823.220, this ordinance shall not be interpreted to require less than
is required of Grantee by the applicable Oregon Revised Statutes and administrative
rules. Any inconsistency between the provisions of this ordinance and Oregon state
law shall be governed by Oregon state law.
Section 3. Definitions. The words and phrases in this ordinance shall have the
meaning provided in ORS Chapter 823 unless specifically defined herein to have a
different meaning. Other specific definitions include:
(1) "City" - The City of Woodburn.
(2) "Franchise" - A privilege granted by the City pursuant to this ordinance.
(3) "Grantee" - The person granted the franchise pursuant to this ordinance.
Section 4. Franchise Granted. The City hereby grants unto Woodburn
Ambulance Services, Inc. the franchise, right, and privilege, subject to such
modifications as are hereinafter set forth, to operate an ambulance service within the
corporate limits of the City of Woodburn, as such limits now exist or may hereafter
Woodburn Ordinances
11-15.4
11-15.8
be expanded. For the purpose of the franchise, the grantee shall have the right to use
the public streets, alleys, publiC ways and places of the City to provide emergency
transportation of persons suffering from illness, injury, or disability. This franchise is
not exclusive, and the city reserves the right to grant a similar use of public streets,
alleys, public ways and places to any other person at any time during the period of
this franchise, provided said person complies with the regulations of the Marion
County Ambulance Service Ordinance and with Oregon state law.
Section 5. Franchise Term. The rights, privilege, and franchise herein granted
shall be valid from the date of issuance until January 31, 1995. Thereafter, unless
the City finds that a longer or shorter term is required in the public interest, the term
of franchise shall be six (6) years beginning on February 1, of a year and ending on
January 31 six years later.
Section 6. Rates and Charges. Grantee shall furnish ambulance service within
the corporate limits of the City of Woodburn as requested and required in a prompt,
efficient, and effective manner; and in accordance with rates and charges made to
pe~sons receiving ambulance service as approved by the City Council by separate
resolution following public notice and hearing. In determining the appropriate rate to
be charged by the grantee, the City Council shall consider, but not be limited to:
(1) The current and projected cost of service provision;
(2) The impacts of operating and capital needs, regulatory compliance, and
technological change;
(3) The investment and rate of return considerations by the grantee.
(4) The rates charged in other cities for similar service;
(5) The public interest in assuring reasonable rates to enable the grantee to
provide effective and efficient services.
Section 7. ComDliance with Laws. Rules. and Regulations. Grantee shall at all
times comply with all applicable laws, rules, and regulations of the United States of
America, the State of Oregon, and the City of Woodburn, including all agencies and
subdivisions thereof, having jurisdiction over the operation of ambulance services.
Section 8. Performance Bond. Grantee shall furnish to the City of Woodburn
a performance bond in sufficient amount and with sufficient sureties thereon,
acceptable to the City of Woodburn to insure the faithful performance by the grantee
of the ambulance service for which this franchise is awarded and, in default thereof
for any reason other than financial inability to perform, shall pay to the City of
Woodburn the sum of $4,000.00 as liquidated damages, not as a penalty but as
Woodburn Ordinances
11-15.8
11-15.14
actual damages, both parties recognizing this amount as reasonable, for the failure of
grantee to so perform.
Section 9. Revision of Rates and Fees. The rate provided in Section 6 hereof,
and the franchise fee hereinafter provided In Section 10, may each be changed and
revised, either upward or downward, after public notice and hearing before the City
Council. Grantee is permitted to request a rate review and possible increase in rates
annually, but the decision to grant or deny any change in rates shall be made by the
City Council only after all other provisions of this ordinance pertaining to rate charges
have been met.
Section 10. Franchise Fee. For the privilege (of) franchise herein granted, the
grantee shall pay to the City of Woodburn, payment to be made to the Finance
Director, a fee equal to one percent (1.0%) of the gross receipts collected each year
by the grantee for patients picked up within the corporate limits of the City of
Woodburn. Such payment shall constitute the tax for the first franchise year; and
annually thereafter on the first day of each February, the grantee shall pay the annual
tax based upon the gross receipts during the last preceding franchise year, which
payment shall constitute the tax for the previous franchise year. The grantee shall
furnish to the Finance Director, at the time of making the annual payment a complete
statement setting forth the gross receipts received by the grantee during the preceding
franchise year, and if requested by the City Council, the grantee shall permit the City
to have an accountant or auditor examine the books of the grantee.
V Section 11. Ambulance and Eauioment Reauired. All patient transporting
vehicles in the City of Woodburn shall conform to the State of Oregon requirements
of ORS 823.010 to 823.250 and be licensed for an Advanced Life Support (ALS) unit
or Basic Life Support (BLS) unit, whichever is applicable, as defined by ORS 677.610.
All ALS and BLS vehicles shall maintain the minimum equipment prescribed by ORS
823.010 to 823.250 and OAR 333-28-000 to 333-28-050.
Section 12. Emergency Radio Communications. Grantee shall equip and
comply with all emergency radio communications requirements of Chapter III
Communications contained in the Marion County Ambulance Service Area Plan.
V Section 13. Levels of Care. The minimum staffing of BLS vehicles is a driver
and an attending EMT I. The EMT will always perform responsibilities of patient care
in the patient compartment. The minimum staffing of ALS vehicles is an attending
EMT III and EMT I. Staffing shall conform to the requirements of ORS 823.010 to
823.250.
Section 14. Insurance. The grantee shall not provide ambulance services
unless insured by an insurance company licensed to conduct a liability insurance
business in the State of Oregon and insuring the grantee for liability for injury to
Woodburn Ordinances
11-15.14
11-15.20
persons for not less than $100,000.00 to any person, and $500,000.00 in any single
accident, and $50,000.00 for damage to property arising out of any negligence in the
operation of any such ambulance or of its personnel. Evidence of such insurance
being in force shall be filed with the Finance Director of the city.
..
V'. ~ '\'. (. Section 15. Business Hours. Grantee shall make available said ambulance
~ \ I ~ \ t \ services within the city 24 hours per day, seven days per week; and shall maintain a
- \\.. business office with reasonable office hours within the corporate limits of the City of
Woodburn.
Section 16. Record of TransDort Calls. Grantee shall keep for five years a
written record of all transport calls received or made, setting forth the date, time,
destination, nature of call, name and address of the patient so far as can be
ascertained, the hospital or place to which the patient was taken, the name of the
ambulance driver, and the name of all ambulance attendants for that particular call.
Section 17. Disinfection Policv. Grantee's ambulances carrying a patient
afflicted with a contagious or infectious disease shall thereafter be carefully and fully
fumigated or disinfected in its passenger compartment, and any equipment likely to
have been contaminated shall likewise be fumigated or disinfected before being used
for another patient.
Section 18. Alternate Ambulance Service. The Woodburn Fire District, the
North Marion 9-1-1 Communication Center, or any other publiC entity may call an
ambulance service other than the grantee if the grantee is unavailable. Further, in
emergency situations, in the event that the grantee is unavailable, a patient may be
transported to a hospital by an ambulance service other than the grantee or by the
Woodburn Fire District's rescue vehicle.
Section 19. Transfer of Franchise. Grantee shall not sell, assign, dispose of
or transfer in any manner whatsoever any interest in this franchise nor the controlling
company of the grantee without prior approval by the City of Woodburn expressed by
resolution of its governing body.
Section 20. Indemnity and Hold Harmless. The grantee shall indemnify the
City of Woodburn, the City Council, any employees or agents of the City and hold
them harmless from all loss, damage, claim, expense or liability arising out of the
operation by the grantee under its franchise. In the event that any suit or action is
brought for injury or damage to persons or to property against any of the foregoing,
based upon or alleged to be based upon any loss, damage, claim, expense or liability
arising out of the operation of the grantee under this franchise, the grantee shall
defend the same at its own cost and expense.
Woodburn Ordinances
11-15.21
11-15.23
Section 21. Preventing InterruDtion of Service. In the event the governing
body of the City finds that the failure or threatened failure of service would adversely
impact the health, safety, or welfare of the residents of this city, the City Council
may, after a minimum of 24 hours notice to the grantee, hold a public hearing and
have the right to authorize another franchisee or other person to provide the services
whether it be on an interim emergency or longer term basis. As a condition to this
franchise, the grantee agrees that any real property, facilities or equipment may be
used by the city to provide services during said emergency situation as determined by
findings of the City Council at the above mentioned hearing. The city shall return any
such property of the grantee upon abatement of the emergency situation. In the
event the power under this section is exercised, the usual charges for service shall
prevail and the grantee shall be entitled to collect for such usual services, but shall
reimburse the emergency provided of such ambulance services for its actual costs, as
determined by the city. In no event shall the city be able to collect more in
reimbursement than could have been charged by the grantee for the provision of such
services. In the event that the city and grantee are unable to agree to reasonable and
proper compensation per reimbursement for such services to the City in such
emergency situation, then each party shall name an arbitrator within 10 days of notice
thereof, and such arbitrators within 5 days thereafter name a third arbitrator, and the
award or decision of such arbitrators as to the aforesaid matters shall be deemed
conclusive upon the parties hereto as to any such matters in dispute. In the event
that either party hereto, or the arbitrators chosen, shall fail or neglect to comply with
the terms of this arbitration agreement, then the same shall be carried into effect in
the manner and as provided by ORS 33.210 through 33.340.
Section 22. Termination of Franchise. This franchise may be canceled or
revoked by the City of Woodburn in the event that the grantee shall fail to abide by
the terms, conditions, and obligations set forth and imposed upon it herein, but such
revocation shall not be made until 30 days certified written notice is given to the
grantee, and the grantee shall be afforded a hearing, if such it desires, before the City
Council before revocation is made, provided such hearing is requested before the
expiration of the 30 days. The grantee shall also have the privilege of terminating this
franchise in case the City of Woodburn shall not abide by its terms.
Section 23. Remedies not Exclusive. All remedies under this ordinance,
including termination of franchise are cumulative, and recovery or enforcement of one
is not a bar to the recovery or enforcement of any other remedy. Remedies contained
in this ordinance, including termination of the franchise, are not exclusive and the city
reserves the right to enforce penal provision of any ordinance and also use any
remedy available at law or in equity. Failure to enforce any provision of this ordinance
shall not be construed as a waiver or a breach of any other term, condition or
obligation of this ordinance.
-
Woodburn Ordinances
11-15.24
11-15.26
Section 24. Evaluation of Service. The grantee shall meet with the City
Administrator and other city officials and staff annually or semi-annually, as requested
by the City Administrator, to evaluate the service rendered or review any concern as
may be existing with the ambulance service.
Section 25. Severabilitv. The provisions of this ordinance are severable. If a
portion of this ordinance is for any reason held by a court of competent jurisdiction
to be invalid such decision shall not affect the validity of the remaining portions of the
ordinance.
Section 26. ReDeal. Ordinance 1899, 1960 and 2012 are hereby repealed.
Passed by the Council February 27, 1989, approved by the Mayor March 1, 1989.
COUNCIL BilL NO. 1448-A
RESOLUTION NO. 1163
A RESOLUTION ESTABLISHING RATES AND CHARGES FOR AMBULANCE SERVICES
IN ACCORDANCE WITH THE FRANCHISE GRANTED TO WOODBURN AMBULANCE
SERVICE, INC. AND REPEALING RESOLUTION 936.
WHEREAS, Woodburn Ambulance Services, Inc. has been granted a franchise
to provide ambulance services within the City of Woodburn per Ordinance 2015; and
WHEREAS, Section 6 of said franchise ordinance provides for the separate
establishment of ambulance services rates and charges; and
WHEREAS, a public hearing was held on February 22, 1993 to review the
justification for increasing the current rates and charges for ambulance services; and
WHEREAS, the franchisee has submitted satisfactory evidence to the City
Council to justify the requested rates; NOW I THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. That the following definitions are applicable to the rate structure
stated below:
BLS = Basic Life Support. Patient requires no Advanced Life Support
procedures (intravenous fluids, cardiac monitoring, drugs, advanced airway
care) .
BLS Base Rate - To Hospital = Base rate for a patient only requiring BLS
service, when transporting to a hospital.
BLS Base Rate - Return From Hospital = Base rate for a patient only requiring
BLS service, when transporting them back from the hospital (to home or
nursing home).
BLS Base Rate - Local Convalescent = Base rate for transporting a patient from
a local residence to a local nursing home, or visa versa.
BLS Base Rate - Aid Call Charge = Base rate charged to individuals who
summon the ambulance, then refuse to go to the hospital, on a repeated basis.
Page 1 -
COUNCIL BILL NO. 1448-A
RESOLUTION NO. 1163
-
ALS Base Rate = Base rate charged to patients requiring advanced life support
procedures.
Mileage = Mileage charged from dispatch point to final destination (hospital).
Section 2. That the request of Woodburn Ambulance Services, Inc., for rates
. and charges for ambulance services be approved as follows:
BLS Base Rate - To Hospital $386.00
Rate - Return from Hospital $288.00
BLS Base Rate-Local Convalescent $144.00
BLS Base Rate - Aid Call Charge $ 96.00
ALS Base Rate $586.00
Mileage, per mile $ 8.00
Ambulance Membership Policy $ 40.00
(per year)
Section 3. Resolution 936, passed on February 27, 1989, is hereby repealed.
Approved as-to for~~
City Attorney _...:7
APPROVED:
Passed by the Council
February 22, 1993
Submitted to the Mayor
February 23, 1993
Filed in the Office of the Recorder
February 23, 1993
February 23, 1993
Approved by the Mayor
ATTEST: ~~ ~
Mary Ten t, City Recorder
City of Woodburn, Oregon
Page 2 -
COUNCIL BILL NO. 1448-A
RESOLUTION NO. 1163
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LEGAL REGULATION OF AMBULANCES
1. ORS Chapter 823 Requires state license for ambulances
(current statute passed in 1983)
A. Provides for general regulation
B. Empowers Health Division to pass administrative rules
C. Gives mandate to counties to adopt ambulance service
plans
2. Counties are responsible for adoption of ambulance service
plans - (passed in 1989)
3. Cities have authority to issue franchises not in conflict with
county's ambulance service plan
A. City franchises are not as common in Oregon as in other
states
B. Authority to regulate is contained in ORS 823.220 and
home rule authority
C. City's authority is based upon the ambulance use of the
city streets (like taxicabs)
D. Woodburn, Mt. Angel and Lake Oswego are examples of
Oregon cities with ambulance franchises (Woodburn and Mt.
Angel's franchises are due to expire within the next
year. Lake Oswego's ordinance was passed in 1994.)
4. Federal qovernment also imposes regulations on ambulances.
A. "Anti-kickback" medicare statute (42 USC 1320a -7b)
prohibits city from referral of all emergency calls to
one ambulance provider. (Ambulance company can not pay
for referral and bill Medicare or Medicaid)
B. Some New England cities and ambulance companies have run
afoul of this statute by entering into contracts with
particular ambulance companies to provide an advance lump
sum payment to provide service or to accept per patient
referral payments, at the time of service
C. While I have never been asked to provide a formal leqal
opinion on the subject, I believe that Woodburn's
franchise arrangement would not violate this provision of
federal law because it is a fee to operate on city
streets, not a referral or rebate contract.
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COMPARISON OF LAKE OSWEGO AND WOODBURN AMBULANCE FRANCHISES
WOODBURN
(Woodburn Ambulance)
1.
6 years
Term
2.
Non-exclusive?
yes
3.
1% of gross receipts
Fee
4.
Financial Reports
report of gross
receipts; audit
if requested by
city council
5.
$100,000 for injury
to persons; $500,000
for single accident;
$50,000 for property
Insurance
6.
Performance Bond
"in sufficient amount
acceptable to city"
7.
Evaluation of
Service
annual or semi-annual
meeting with city
administrator
LAKE OSWEGO
(Buck Ambulance)
5 years or when
Buck's contract
with Clackamas
County becomes
effective and
city becomes part
of Clackamas ASA
yes
$50,000 per year
and 2% of gross
receipts over
$25,000 per month
monthly & annual
reports; call
data; balance
sheet, P&L,
assets & tax
returns; audit if
requested by city
$3,000,000
none required
none specified