Item 4S MemoCITY OF
SOUTHLAKE
MEMORANDUM
February 5, 2013
To: Shana K. Yelverton, City Manager
From: Michael Starr, Fire Chief
Subject: Item 4S: Approve an agreement with Emergicon, LLC for
Emergency Medical Services billing services
Action
Requested: Approve an agreement with Emergicon, LLC for Emergency
Medical Services billing services.
Background
Information: The purpose of this item is to approve an agreement with
Emergicon, LLC for Emergency Medical Services (EMS)
billing services. Emergicon will help to enhance the City's
provision of EMS services through their local scope and
other service enhancements. Emergicon is based in Dallas
and provides ambulance billing services only to Texas cities.
Emergicon's narrow scope allows the company to not only
be compliant with Federal HIPPA laws, but HIPPA laws
specific to Texas. Emergicon is NEMSIS gold compliant,
meaning that they meet or exceed requirements for the
submission of electronic personal medical information.
As part of the agreement, Emergicon will provide Panasonic
Toughbooks and software for the completion of electronic
Patient Care Reports at no cost to the City. Other area cities
using Emergicon include Grapevine, Coppell, Little Elm,
Flower Mound, Lewisville, Highland Park, Lake Cities,
Corinth, Krum, Allen, Bedford, Celina, Denton, Carrollton,
Justin, Mansfield, Murphy, Sachse, Sanger, The Colony and
others. All cities report satisfaction with Emergicon's
services.
Financial
Consideration: The City's current contractor, Intermedix, takes 12% from all
EMS billing collections. Emergicon will take 9.5% of all
collections, which will increase EMS billing revenues for the
City. There will be no changes in the current billing rate to
our patients.
Strategic Link: Performance Management and Service Delivery; B1,
Achieve Best in Class Status in all City Disciplines; B4,
4S- i
City Council Meeting
Meeting Date — February 5, 2013
Page 2 of 2
Provide High Quality Customer Service; B5, Improve
Performance of Delivery and Operational Processes; B6,
Optimize Use of Technology.
Citizen Input/
Board Review: N/A
Legal Review: This agreement has been reviewed by the City Attorney.
Alternatives: Council may approve, modify or deny this item.
Supporting
Documents: Service agreement between City of Southlake and
Emergicon, LLC for Ambulance Billing Services
Staff
Recommendation: Staff recommends the approval of an agreement with
Emergicon, LLC for Emergency Medical Services billing
services.
4S - 2
AGREEMENT BETWEEN
CITY OF SOUTHLAKE FIRE DEPARTMENT AND
EMERGICON, LLC FOR AMBULANCE BILLING SERVICES
This Service Agreement (this "Agreement") is entered into by and between Emergicon,
LLC, a Texas corporation ("Emergicon"), and the City of Southlake, Texas (the "Provider") with
an Effective Date of , 2013.
RECITALS
WHEREAS, Emergicon provides billing and collections services, and other support
services (the "Services") to local government agencies, municipalities, fire departments,
ambulance providers, and medical emergency services;
WHEREAS, Provider, as part of its overall activities, provides emergency and
ambulance services, including emergency medical responses, and other patient encounters and/or
patient ambulance transportation (the "Ambulatory Services"); and
WHEREAS, Provider is desirous of obtaining the Services of Emergicon and seek to
enter into an agreement, pursuant to which Emergicon will render Services as provided herein.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the
parties hereto agree as follows:
ARTICLE ONE
TERM AND TERMINATION
1.01 Engagement, Term and Scope of Services.
(a) Engagement. During the Term of this Agreement, except for accounts referred to
a third party collection agency, Emergicon shall be responsible for the billing and collection of
all charges and fees resulting from the delivery of Ambulatory Services by Provider, including
but not limited to all charges and fees to private insurers, Medicare, Medicaid, other
governmental programs, individual patients and their responsible parties.
(b) Term. Subject to the terms and conditions set forth herein and except as provided
in Section 1.02, the initial term of this Agreement shall be for a period of three (3) years from the
date of this Agreement (such initial term, together with all extensions thereof, shall be referred to
herein as the "Term"). This Agreement may be renewed at the end of the current Term for two
additional one (1) year periods.
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(c) Scope of Services. Emergicon shall perform and carry out the Services described
herein. Provider reserves the right to request changes in the Services provided by Emergicon
within its capabilities, which changes shall be implemented upon mutual written agreement of
the parties and any change in compensation.
1.02 Termination. Notwithstanding any provision of this Agreement to the contrary,
this Agreement may be terminated by either party, without cause and without liability (except for
continuing obligations during such period), upon thirty (30) days advance written notice to the
other party.
1.03 Obligations During Notice Period. During the 30-day notice period specified in
Section 1.02, Emergicon shall be entitled to receive compensation for all Accounts (as defined in
Section 2.01) billed and collected with respect to the Services and for all other activities
performed pursuant to this Agreement, and shall be entitled, after the end of the termination
period to receive compensation for all amounts billed during the termination period but not
collected until after the end of the termination period. Emergicon shall continue to provide
services as prescribed in the Agreement during the 30 day notice period and fully comply with
all terms of the Agreement.
1.04 Obligations on Termination. Upon termination of the Agreement, for whatever
cause, Emergicon will immediately return all original medical records to Provider and shall
provide to Provider a digital copy all records related to Provider. Emergicon shall retain copies
of all patient care reports, invoices/claim records, remittance advice documents and all other PHI
of Provider's patients (as the term "PHI" is defined in Section 6.01 of this Agreement) for a
period of 10 years, as described in Section 5.01 of this Agreement and in compliance with
Section 6.01 of this Agreement.
1.05 Mailing of Notices. Any notice required or permitted pursuant to this Agreement
shall be in writing and shall be deemed sufficient when delivered personally or sent by U.S. mail,
as certified or registered mail, with postage prepaid, addressed as follows:
If to the Provider:
The City of Southlake
600 State Street
Southlake, TX 76092
Attention: Chief Mike Starr
Fax:
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If to Emergicon:
Emergicon, LLC
PO Box 180446
Dallas, Texas 75218
Attention: Christopher Turner
Fax:
Each party shall be entitled to specify a different address by giving five (5) days' written
notice to the other party. All such notices and communications shall be deemed to be received
the same day if by fax (provided the sender has a fax machine/fax database generated proof of
receipt) and in three (3) business days if by mail.
ARTICLE TWO
BILLING & COLLECTIONS
2.01 Billing. During the Term, Emergicon shall be responsible for the billing of
charges and fees relating to the Services as directed by and provided by Provider, including, but
not limited to, private insurance, Medicare, Medicaid, and other governmental programs relating
to:
(a) patient encounters that occur during the Term; and
(b) other patient encounters forwarded to Emergicon for billing.
(Note: each set of such charges and fees for the Services related to an individual patient
encounter may be referred to herein as an "Account" or, collectively, the "Accounts").
2.02 Compensation. See Addendum A.
2.03 Collection Efforts. If Provider instructs Emergicon to collect on an Account(s)
initially billed by another Contractor, Emergicon shall be compensated and paid for the
collection efforts on said Account in accordance with the following schedule: twenty two percent
(22%) of the total amount collected on the Account.
If Provider instructs Emergicon to place Accounts with a third party collection service,
Emergicon shall be compensated and paid for the collection efforts on said Account in
accordance with the following schedule: three percent (3%) of the total amount collected on the
Account.
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All fees shall be payable monthly within thirty (30) days of receipt of invoice.
2.04 Records of Patient Encounters.
(a) Emergicon shall use its reasonable best efforts to bill all Accounts within three (3)
business days of such patient encounter. Such records shall be deemed to be the property of
Provider, but Emergicon shall have the right to duplicate and retain paper or electronic copies of
the records as further described in Section 1.04 and 5.01 of this Agreement. If the records exist
only in electronic form, each electronic copy shall be deemed to be an original for the purposes
of this Agreement. Provider shall have no obligation to forward original medical records during
the 30-day notice period regarding termination as set forth in Paragraph 1.02.
(b) Provider acknowledges that Emergicon has no responsibility for complying with
all provisions of Title 42 C.F.R. Section 410.40 which states, in part, that an ambulance service
bears the responsibility for obtaining Physician Certification Statements ("PCS's"). Provider
further understands and concurs that Emergicon is neither an ambulance service nor an
ambulance provider within the definitions as set forth by the Centers for Medicare and Medicaid
Services.
2.05 Requests for Copies. Requests for copies of medical records should be submitted
directly to Provider. Provider may authorize Emergicon to release of the records such that the
release is in accordance with the standards and time requirements established by State and
Federal law, including but not limited to the requirements of Section 773.091 Texas Health and
Safety Code, Chapter 181 of the Texas Health and Safety Code (the "Texas Medical Records
Privacy Act"), the Health Insurance Portability and Accountability Act (HIPAA), and the Health
Information Technology and Clinical Health Act (HITECH Act). Upon Provider's authorization,
Emergicon shall, within ten (10) business days, release copies of medical records to an individual
that received medical services from Provider in electronic form unless the individual agrees to
accept the record in another form.
2.06 Activity Reports. Emergicon shall provide to Provider summary and detail
monthly reports of all billing activities that occurred during the preceding month as requested by
the Provider by the fifth (51h) business day of the month.
2.07 Information Received by Provider. To the extent that Provider receives payments
or original copies of documentation directly, Provider shall forward to Emergicon copies of
checks, Explanations of Benefits and/or other documentation within five (5) business days of the
date of receipt of payment by Provider.
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2.08 Support Services. Emergicon will provide patients and personnel of Provider
with telephone support services during normal business hours (Monday - Friday from 9:00 a.m.
to 5:00 p.m.) except on public holidays or other holidays as established by Emergicon.
2.09 Obligation for Pam. Payment in accordance with this Article Two shall be
due and owed to Emergicon by Provider for all Accounts collected during the Term and
collected after the Term but billed during the Term by Emergicon regardless of whether payment
was made to Emergicon or to Provider.
ARTICLE THREE
INDEMNIFICATION AND FIDELITY BOND
3.01 Emergicon's Indemnification. Emergicon shall indemnify and hold harmless
Provider from and against claims, damages, losses and expenses, including but not limited to
attorneys' fees, arising out of or resulting from Emergicon's performance of activities pursuant
to this Agreement, but only to the extent caused by the willful misconduct or the negligent acts
or omissions of Emergicon or any other breach of contract. The indemnification provided for
herein shall not be applicable to any claim of adjustment or request for reimbursement made by
an insurance company or any servicing agency for Medicare or Medicaid that may be made as
the result of an audit of claims made or governmental regulations or laws, including Emergicon's
fees charged, except for any adjustments or claims for reimbursement made as a direct result of
Emergicon's error.
Emergicon shall at all times observe and comply with all Federal, State and local laws,
and ordinances and regulations including all amendments and revisions thereto, which in any
manner affect Emergicon's work, and shall SHALL INDEMNIFY AND HOLD HARMLESS
THE CLIENT AGAINST ANY AND ALL CLAIMS RELATED TO OR ARISING FROM
THE VIOLATION OF ANY SUCH LAWS, OFFICERS, AGENTS, SUBCONTRACTORS, OR
REPRESENTATIVES. THE INDEMNIFICATION HEREIN SURVIVES THE
TERMINATION OF THE AGREEMENT AND/OR DISSOLUTION OF THIS AGREEMENT.
3.02 Fidelity Bond. Emergicon shall keep and maintain during the term of this
Agreement a fidelity bond with a qualified insurer of no less than $10,000.00.
3.03 Insurance. Emergicon shall keep and maintain during the term of this Agreement
Errors & Omissions Liability insurance with a qualified insurer of no less than $1,000,000.00.
ARTICLE FOUR
CONFIDENTIALITY
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4.01 Property of Emergicon. Provider agrees that Emergicon's equipment, computer
hardware and software, billing and collection processing, and other related systems and
equipment are the property and trade secrets of Emergicon, and that Provider will not release any
information regarding such trade secrets to any third party without the prior written consent of
Emergicon, unless required by law.
4.02 Fact of Contractual Relationship May Be Disclosed. Notwithstanding the
foregoing, either party may, without the prior written consent of the other party, disclose the
existence of a contractual relationship between the parties.
ARTICLE FIVE
AUDITS
5.01 Accurate Books and Records. During the Term and for a period of ten (10) years
thereafter, each party agrees to maintain accurate books and records associated with the billing
and collections made the subject of this Agreement.
5.02 Right to Audit. Upon reasonable written notice of at least five (5) business days,
either party may audit the books and records of the other party insofar and only insofar as such
books and records relate or pertain directly to this Agreement. Such audit shall be conducted at
the office of the party being audited, shall be during normal business hours, and shall be at the
sole cost and expense of the party conducting the audit. Any audit results will be made available
to the other party.
5.03 Penalty for Underpay. If an audit reveals that a party has failed to pay any
amount or portion of any amount due or payable under this Agreement and such amount is in
excess of Twenty Thousand Dollars ($20,000.00), the party being audited shall pay to the
auditing party the full cost of the audit and the full amount due or payable plus interest at the rate
of ten percent (10%) per annum from the date(s) of non-payment.
ARTICLE SIX
PROTECTED HEALTH INFORMATION
6.01 HIPAA Compliance. Emergicon shall carry out obligations to protect the privacy
and security of protected health information ("PHI") under this Agreement and Addendum B
"Business Associate Agreement" in compliance with the applicable provisions of Public Law
104-191 of August 21, 1996, known as the Health Insurance Portability and Accountability Act
of 1996, Subtitle F — Administrative Simplification, Sections 261, et seq., as amended
("HIPAA"), and with Public Law 111-5 of February 17, 2009, known as the American Recovery
and Reinvestment Act of 2009, Title XII, Subtitle D — Privacy, Sections 13400, et seq., the
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Health Information Technology and Clinical Health Act, as amended ("the HITECH Act"). In
conformity therewith, Emergicon shall use or disclose PHI only if such use or disclosure is in
compliance with each applicable requirement of the HIPAA privacy regulations found at 45 CFR
§ 164.504(e) and shall comply with the HIPAA security regulations made directly applicable to
business associates under the HITECH Act. Emergicon will protect the privacy and security of
any personally identifiable PHI that is collected, processed or learned as a result of the services
provided to the Provider and Emergicon agrees that it will:
(a) Not use or further disclose PHI except as permitted under this Agreement or
required by law;
(b) Use appropriate safeguards to prevent use or disclosure of PHI except as
permitted by this Agreement.
(c) Mitigate, to the extent practicable, any harmful effect that is known to Emergicon
of a use or disclosure of PHI by Emergicon in violation of this Agreement;
(d) Report to Provider any use or disclosure of PHI not provided for by this
Agreement of which Emergicon becomes aware;
(e) Ensure that agents or subcontractors to whom Emergicon provides PHI, or who
have access to PHI created or received by Emergicon on behalf of the Provider, agree to the
same restrictions and conditions that apply to Emergicon with respect to such PHI;
(f) Make PHI available to Provider and to the individual who has a right of access as
required under HIPAA within ten (10) business days of the request by Provider on behalf of the
individual. To the extent PHI is maintained in an electronic health record, Emergicon shall
provide the individual with a copy of such information in electronic format, as required by the
Texas Medical Records Privacy Act;
(g) Incorporate any amendments to PHI when notified to do so by Provider;
(h) Provide an accounting of all uses or disclosures of PHI made by Emergicon as
required under the HIPAA privacy rule and the HITECH Act within twenty (20) calendar days;
and
(i) Make its internal practices, books and records relating to the use and disclosure of
PHI received from, or created or received by Emergicon on behalf of the Provider available to
the Secretary of the Department of Health and Human Services for purposes of determining
Emergicon's and Provider's compliance with HIPAA and the HITECH Act.
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0) At the termination of this Agreement, return or destroy all PHI received from, or
created or received by Emergicon, and if return is infeasible, the protections of this Section will
extend to such PHI;
(k) Restrict the disclosure of PHI to a health plan for purposes of carrying out
payment or healthcare operations if the Provider authorizes or requests Business Associate to do
so;
(1) Implement administrative, physical, and technical safeguards that reasonably and
appropriately protect the confidentiality, integrity, and availability of e-PHI that it creates,
receives, maintains or transmits on behalf of the Provider;
(m) Implement reasonable and appropriate policies and procedures to comply with the
standards, implementation specifications, or other requirements of the HIPAA Security Rule;
(n) Report to Covered Entity any security incident (as defined by the HIPAA Security
Rule) of which Emergicon becomes aware, and the steps it has taken to mitigate any potential
security compromise that may have occurred, and provide a report to the Provider of any loss of
data or other information system compromise as a result of the incident;
(o) Notify the Provider of a breach of unsecured PHI following Emergicon's
discovery of a breach without unreasonable delay and in no case later than 60 calendar days after
discovery, and provide to the Provider: (a) the identification of each individual whose unsecured
PHI has been, or is reasonably believed by Emergicon to have been, accessed, acquired, used, or
disclosed during the breach; and (b) any other available information that Emergicon is required
to include in notification to affected individuals;
(p) Secure all PHI in accordance with the technologies and methodologies specified
by guidance from the Secretary of HHS, issued pursuant to the HITECH Act; and
(q) Assist the Provider in complying with its Red Flag Rule obligations by: (i)
implementing policies and procedures to detect relevant Red Flags (as defined under 16 C.F.R. §
6812); (ii) taking all steps necessary to comply with the policies and procedures of the
Provider's Identity Theft Prevention Program; (ii) ensuring that any agent or third party who
performs services on its behalf in connection with covered accounts of the Provider agrees to
implement reasonable policies and procedures designed to detect, prevent, and mitigate the risk
of identity theft; and (iv) alerting the Provider of any red flag incident (as defined by the Red
Flag Rules) of which it becomes aware, the steps it has taken to mitigate any potential harm that
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may have occurred, and provide a report to the Provider of any threat of identity theft as a result
of the incident.
6.02 HIPAA Disclosures. The specific uses and disclosures of PHI that may be made
by Emergicon on behalf of Provider include:
(a) The preparation of invoices to patients, carriers, insurers and others responsible
for payment or reimbursement of the services provided by Provider to its patients;
(b) Preparation of reminder notices and documents pertaining to collections of
overdue Accounts;
(c) The submission of supporting documentation to carriers, insurers and other payers
to substantiate the health care services provided by Provider to its patients or to appeal denials of
payments for same;
(d) The preparation and release of medical records to patients or their legal
representatives as permitted by HIPPA privacy and security rules and the HITECH Act;
(e) Uses required for the proper management of Emergicon as a business associate;
and
(f) Other uses or disclosures of PHI as permitted by HIPAA privacy and security
rules.
6.03 HIPAA Breach Provisions. Notwithstanding any other provisions of this
Agreement, if either party knows of a pattern of activity or practice of the other party that
constitutes a material breach or violation of the other party's obligations under this Agreement,
that party shall take reasonable steps to cure the breach or end the violation, as applicable, and, if
such steps were unsuccessful, either terminate the Agreement (if feasible), or if termination is
infeasible, report the problem to the Secretary of the Department of Health and Human Services.
ARTICLE SEVEN
MISCELLANEOUS
7.01 No Waiver. The failure of either party to insist upon strict performance of any
provision of this Agreement shall not be construed as a waiver of any subsequent breach of the
same or similar nature.
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7.02 Provisions Construed Separately. The parties agree that each provision of this
Agreement shall be construed as separable and divisible from every other provision and that the
enforceability of any one provision shall not limit the enforceability, in whole or in part, of any
other provision hereof. In the event that a court of competent jurisdiction determines that any
term or provision herein shall be invalid or unenforceable, the remaining terms and provisions of
this Agreement shall not be affected thereby, and shall be interpreted as if the invalid term or
provision were not a part hereof.
7.03 Final Agreement. This Agreement sets forth the entire, final and complete
understanding between the parties hereto relevant to the subject matter of this Agreement. No
waiver or modification of any of the terms or conditions of this Agreement shall be effective
unless in writing and signed on behalf of both parties.
7.04 Performance of Agreement, Venue; Choice of Law. The exclusive venue for any
disputes or causes of action that may arise out of this Agreement is Tarrant County, Texas. The
provisions of this Agreement shall be determined in accordance with the laws of the State of
Texas.
7.05 Headings. The headings of this Agreement are for ease of reference only and are
not intended to limit or restrict the terms hereof.
7.06 Binding Nature of Agreement. This Agreement is binding upon the heirs, legal
representatives, successors and assigns of the parties hereto.
7.07 Compliance with Laws Generally. Emergicon shall comply with all applicable
laws, orders, rules, or regulations of all governmental agencies bearing on its performance
hereunder. If so requested by Provider, Emergicon shall submit appropriate evidence of such
compliance.
7.08 Independent Contractor. It is understood and agreed that Emergicon is an
independent contractor. Nothing herein contained shall be construed to create any partnership,
joint venture, or joint enterprise between the parties.
7.09 Non -Profit Status Determination Letter. If Provider is a not -for -profit entity,
Provider shall provide a duplicate of its letter determining its not -for -profit status with the
Internal Revenue Service. In providing such letter, Provider further represents and warrants to
Emergicon that it has done every act necessary to maintain its not -for -profit status with the
Internal Revenue Service and is not aware of any pending, threatened or actual revocation of its
not -for -profit status.
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7.10 Appendices. Emergicon and Provider may enter into various appendices to this
Agreement from time to time and at any time regarding additional services. Such appendices
shall be considered part of this Agreement as if set forth herein at length unless such appendix
provides otherwise.
7.11 Assignment. Neither party shall assign or otherwise transfer this Agreement, any
interest in this Agreement, or any right or obligation hereunder to any other party without the
written consent of the other party.
7.12 Attorneys' Fees. Should either party institute any action or procedure to enforce
this Agreement or any provision hereof, or for damages by reason of any alleged breach of this
Agreement or of any provision hereof, or for a declaration of rights hereunder (including,
without limitation, arbitration), the prevailing party in any such action or proceeding shall be
entitled to receive from the other party all costs and expenses, including necessary and
reasonable attorneys' fees, incurred by the prevailing party in connection with such action or
proceeding.
IN WITNESS WHEREOF, Emergicon and the Provider have executed this Agreement on the
day of 2013.
EMERGICON, L.L.C.
By:
Name: Christopher Turner
Title: President & CEO
The City of Southlake
By:
Name: Shana K. Yelverton
Title: City Manager
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ADDENDUM A
This document is an addendum to the Service Agreement between Emergicon, L.L.C. and the City of
Southlake. It is understood that the following software is being purchased from ESO Solutions by the
City of Southlake through a Service Agreement with Emergicon, L.L.C.
QUOTE LINE ITEMS
ePCR Suite w/Quality Management 600 -1,250 Incidents
ePCR Mobile
Interface - Vonitor
Services - Training
Services - Training Travel Costs
1.001 $4,495.00 1 $449.501 $4,045.50 I Annual Recurring Cost
3.00
$695.00
$208.50
$1,876.5D
One -Time Cost
1.00
$3,995.00
$399.50
$3,595.50
One -Time Cost
1.00
$995.00
$0.00
$995.00
One -Time Cost
1.00
$750.00
$0.00
$750.00
One -Time Cost
Full Price $12,320.00
Sum of Discounts $0.00
Grand Total $12,320.00
Emergicon agrees to pay the above mentioned software fees to ESO Solutions as well as provide three
(3) fully rugged mobile computers acceptable to the City of Southlake.
The contract between ESO Solutions and the City of Southlake will automatically renew annually
according to the ESO Solutions Software License Agreement. Emergicon will pay ESO Solutions on
the contract renewal date for the full annual subscription fee.
Cancellation fees
Should the City of Southlake terminate Emergicon's Service Agreement or ESO's Subscription
Agreement within twelve (12) months of the date of this Addendum, the City of Southlake will be
responsible for full payment to Emergicon of a cancellation fee equal to the total cost ($12,320.00),
plus the actual cost of hardware provided. Emergicon will invoice the City of Southlake upon written
notice of cancellation and payment will be due 30 days from cancellation date.
Compensation
In consideration for providing the agreed upon billing services in the Service Agreement and ESO Pro
Suite detailed above, the City of Southlake will amend Section 2.02 of the Service Agreement to pay
Emergicon nine and one half percent (9.5%) of the total amount collected on the Account.
EMERGICON, L.L.C.
By:
Name: Christopher Turner
Title: President & CEO
Date:
City of Southlake
By:
Name: Mike Starr
Title: Administrator
Date:
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