Report Prepared by: Janet German, Management Analyst, Fire Department
Title
SUBJECT: Approval of Master Subscription and License Agreement with ESO Solutions, Inc. for a Records Management System for a Term not to Exceed Five Years. The Combined Cost of the Five-Year Agreement will not Exceed $114,186.42; Terminate the Electronic Patient Care Reporting System with Sansio HealthEMS
REPORT IN BRIEF
Consider approval of a Master Subscription and License Agreement (Agreement) with ESO Solutions, Inc. for a term not to exceed five years, to consolidate all ESO public safety records management software utilized by the Fire Department under a single agreement and to add the electronic Patient Care Report (ePCR) module. This action will streamline patient care reporting and administrative functions while ensuring compliance with state and federal reporting requirements. Also considers approval to waive the competitive bidding requirements pursuant to Merced Municipal Code § 3.04.210 for the purchase of ESO’s ePCR system ($21,5047.34/annually with a 3% escalator) to ensure continuity with existing ESO software modules, and authorization to terminate the existing ePCR agreement with Sansio HealthEMS.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Master Subscription and License Agreement with ESO Solutions, Inc. to continue maintenance and support for the public safety software utilized by the Fire Department for a maximum term of five years in an amount not to exceed $114,186.42; and,
B. Authorizing the waiving of the competitive bidding requirement as permitted by Merced Municipal Code § 3.04.210 for sole sourcing based upon ESO Solutions, Inc. being the only company licensed to provide the unique necessary ePCR features needed and standardization of its records management system; and
C. Authorizing the City Manager to execute the necessary documents; and
D. Authorizing the City Manager to terminate the existing “Electronic Patient Care Records” system software subscription with Sansio Health EMS.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to other than recommended by staff; or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Merced Municipal Code
• The Charter, Article II-Power of City, Sec. 200-Powers
• The Charter, Article XI-Fiscal Administration, Section 1105-Budget-Appropriations
• Title 3-Revenue and Finance-Chapter 3.04-Purchasing System-Article 3.04.210 - Exemptions from Competitive Bidding
California Health and Safety Code, Division 2.5, Chapter 4, Article 1, Section 1797.227 California EMS Information System (CEMSIS)
National EMS Information System (NEMSIS) California Code of Regulations, Title 22, Division 9, Chapter 2, §100057.2
California Code of Regulations, Title 22, Division 9, Chapter 2, §100062(d)
California Code of Regulations, Title 22, Division 9, Chapter 4, §100170(a)(6)
California Code of Regulations, Title 22, Division 9, Chapter 4, §100171(e)
California Code of Regulations, Title 22, Division 9, Chapter 12, §100402(a)(1)(C) California Code of Regulations, Title 22, Division 9, Chapter 12, §100404(a)(1)(C)
California Health and Safety Code §13110.5 and HSC 1797.102
CITY COUNCIL PRIORITIES
Public Safety as provided for in the FY 26/27 budget priorities.
DISCUSSION
Background of Fire Department’s Records Management System
Since 1974, the Merced Fire Department (MFD) has continuously updated its records management systems to comply with changing state and federal fire and EMS reporting requirements. MFD transitioned from SunPro to FireHouse Software in 2002 following the implementation of the National Fire Incident Reporting System (NFIRS), and later migrated to the web-based ESO Fire Records Management System (RMS) in 2021 after FireHouse reached end of life.
In 2020, California Health and Safety Code §§1797.200 and 1797.227 required EMS providers to electronically submit patient care data to their local EMS agency. In 2021, the Merced County EMS Agency implemented the ESO electronic Patient Care Report (ePCR) system for regional use and paid for MFD’s first year cost. MFD later transitioned to Sansio HealthEMS in 2023 due to ESO’s inability to provide critical data metrics; however, the current system requires duplicative data entry and has continued to present data extraction challenges as well. Additionally, data is cumbersome as we need to extract data from two separate repositories.
With the implementation of the National Emergency Response Information System (NERIS) on January 1, 2026, MFD proposes terminating the Sansio HealthEMS agreement and returning to ESO ePCR to eliminate duplicate data entry, improve data accessibility, maintain reporting compliance, and reduce overall costs. Additionally, the Merced County EMS agency originally implemented ESO ePCR for regional use in 2021 and paid for MFD’s first year costs, which establishes ESO as the County’s regional standard.
ESO Subscription Agreement
ESO does not issue amendments to its subscription agreements. Over the term of the existing agreement, the City has added and removed various software modules and documented those changes through internal amendments; however, those internal amendments are not recognized by ESO as part of the subscription agreement. To ensure the agreement accurately reflects the City's current software subscriptions and services, the City proposes entering into a new subscription agreement that includes all required modules.
Prior Actions:
|
Date |
Action |
|
December 16, 2013 |
Council approved 5-year agreement with ACS Government Systems, Inc. (FireHouse Software) for internet hosting and support services |
|
June 6, 2016 |
Council approved amendment to FireHouse agreement to add Platinum premium support ($4,800) |
|
August 16, 2021 |
Council approved addendum to ESO Master Subscription and License Agreement for Fire RMS ($12,705 initial; NTE $64,792.87 w/10% contingency over 3 years); approved ESO ePCR 2nd year cost ($19,539.10; NTE $89,918.73 w/10% contingency over 3 years); terminated FireHouse RMS (Contract No. 300980); waived competitive bidding per MMC § 3.04.210 |
|
May 15, 2023 |
Council approved Sansio HealthEMS Master Software Licensing Agreement for ePCR (NTE $122,142 w/10% contingency over 5 years); terminated ESO ePCR agreement; waived competitive bidding per MMC § 3.04.210. |
|
September 2, 2025 |
Council approved First Amendment to Sansio HealthEMS agreement for cardiac monitor integration ($3,215 additional; total NTE $125,357) |
|
July 21, 2025 |
Council approved three one-year renewal extensions with ESO Solutions, Inc. for RMS ($36,130.94); waived competitive bidding per MMC § 3.04.210 |
Justification for Waiving of Competitive Bidding Process
Title 3-Revenue and Finance-Chapter 3.04-Purchasing System-Article 3.04.210 - Exemptions from Competitive Bidding allows us to waive the competitive bidding due to sole source based upon being the only vendor that provides ePCR with the quality assurance procedure which integrates seamlessly with our existing RMS. We are desiring to enter into a 5-year agreement for our RMS platform with ESO our existing RMS provider. This is the same exemption basis used in the August 16, 2021 and July 21, 2025 ESO approvals, and the May 15, 2023 Sansio approval.
The ESO agreement contains a five-year term. The agreement auto renews annually unless either party cancels within a stipulated time frame. The projected financial impact for the system is reflected in the following table:
|
ESO FEES |
|
NON ELECTRONIC PATIENT CARE MODULE |
ELECTRONIC PATIENT CARE MODULE |
|
Year |
Fire CAD Integration |
Fire Incidents |
Inspections |
Properties |
Permits |
EHR Cardiac Monitor Integration |
EHR CAD Integration |
EHR Module Only |
Total Fees |
|
1 (2026) |
0.00 |
6,530.73 |
2,940.39 |
2,568.97 |
0.00 |
425.00 |
1,218.02 |
7,824.23 |
21,507.34 |
|
2 |
0.00 |
6,726.90 |
3,028.60 |
2,646.03 |
0.00 |
437.75 |
1,254.56 |
8,058.96 |
22,152.80 |
|
3 |
0.00 |
6,928.70 |
3,119.46 |
2,725.42 |
0.00 |
450.88 |
1,292.20 |
8,300.73 |
22,817.39 |
|
4 |
0.00 |
7,136.57 |
3,213.04 |
2,807.18 |
0.00 |
464.41 |
1,330.97 |
8,549.75 |
23,501.92 |
|
5 |
0.00 |
7,350.66 |
3,309.44 |
2,891.39 |
0.00 |
478.34 |
1,370.90 |
8,806.24 |
24,206.97 |
|
TOTAL |
0.00 |
34,673.56 |
15,610.93 |
13,638.99 |
0.00 |
2,256.38 |
6,466.65 |
41,539.91 |
114,186.42 |
|
ESO v Sansio - Electronic Patient Care Module |
|
Year |
ESO |
Sansio |
Difference |
|
1 (2023) |
N/A |
26,046.00 |
N/A |
|
2 (2024) |
N/A |
19,351.00 |
N/A |
|
3 (2025) |
N/A |
21,452.00 |
N/A |
|
4 (2026) |
9,467.25 |
20,616.00 |
11,148.75 |
|
5 (2027) |
9,751.27 |
21,648.00 |
11,896.73 |
As reflected in the above table, Sansio’s annual subscription fee is $11,148.75 higher than ESO in 2026. Factoring in the intangible costs of firefighters not having to duplicate entries into our RMS system, and having all records in one repository far clearly demonstrates the need to move away from Sansio. The early termination fee for Sansio would be $8,467, still less than the annual differential between ESO and Sansio.
Should the City Council approve the purchase of ESO’s EHR we will terminate our agreement with Sansio for its Health EMS software system.
Sansio Early Termination Fee
Term: June 1, 2023 - May 31, 2028
Early Termination Notice: At least 90 days
Current Term Length: 60 months
Desired Early Termination Date: January 1, 2027
Percentage of Term Utilized: 72% (43/60)
Pro-Rated Termination Percentage: 28% (17/60)
Monthly Subscription Fee
Year 4: $1,718
Year 5: $1,804
Remaining Subscription Fees
Year 4: $1,718/Monthly x (5/12): $ 8,590
Year 5: $1,804/Monthly x 12: $21,648
Early Termination Fee $8,467(28% x $30,238)
IMPACT ON CITY RESOURCES
The contract to be awarded to ESO Solutions, Inc. is for an amount not to exceed $114,186.42 and staff will return to City Council with a request to terminate or renew the Master Subscription and License Agreement prior to Year 5 with future funding for this agreement being contingent upon City Council budget approval.
ATTACHMENTS
1. Proposed - ESO Subscription Agreement
2. Existing - ESO Master Subscription and License Agreement
3. Sansio HealthEMS Subscription Agreement