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1478 - Foley & Lardner LLP(�q� SANFORD FIRE DEPARTMENT MEMORANDUM TO: Norton N. Bonaparte, Jr., City anager FROM Jerry Ransom, Fire Chief DATE: January 5, 2012 RE: Signature request Please execute the attached documents where indicated and forward to the City Clerk's along with the attached transmittal memorandum. I have attached the consent agenda item which was approved at the December 12, 2011 Commission meeting. Thank you. pin%1 (INSERT YOUR DEPT. NAME HERE) T RANSMITTAL MEMORANDUM To: City Clerk RE: Request for Services The item(s) noted below is /are attached and forwarded to your office for the following action(s): Development Order Final Plat (original mylars) Letter of Credit Maintenance Bond Ordinance Performance Bond Resolution Mayor's signature / ("0 Rendering Safe keeping (Vault) 1 1VA 7 Once completed, please: Return original /J9 G )w Special Instructions: Please adv' if you have any questions regarding the above. Thank yo ! From 1� Date T: \Dept_forms \City Clerk Transmittal Memo - 2009.doe M e . WS RM X � Item No. CITY COMMISSION MEMORANDUM 1 1- DECEMBER 12, 201 1 AGENDA TO: Honorable Mayor and Members of the City Commission PREPARED BY Gerard Ransom, Fire Chief SUBMITTED BY Norton N. Bonaparte Jr., City Manager S UBJECT: Engagement Letter Agreement with Foley & Lardner LLP. SYNOPSIS: Request approval of engagement letter with Foley & Lardner LLP (law firm for ADPI - Intermedix). FISCAL/STAFFING STATEMENT: There is no cost to this agreement. Costs will be paid by ADPI - Intermedix (a City contractor). However, should the appeal discussed below not be successful, the City could be required to repay approximately $4,071 to the Florida Medicaid system BACKGROUND: The City utilizes ADPI - Intermedix as its billing company for Fire Department medical transport billing collections. The Florida Medicaid system has asserted that the City was overpaid for certain patient transports and is demanding repayment of approximately $4,071. ADPI - Intermedix has retained the services of Foley & Lardner LLP to appeal the State's determination. This is a joint effort by ADPI- Intermedix, on behalf of its clients to whom it similar services are provided ADPI - Intermedix legal counsel argue that the Medicaid system did not follow State law when requiring repayment. LEGAL REVIEW: This document has been reviewed by the City Attorney. It is noted that the documents may need to be modified to some degree after approval by the City Commission, as determined by the City Attorney, but any changes will be made in a manner that will not deviate in a substantial manner from the approval of the City Commission relative to the scope of approval authority vested in the City Commission. RECOMMENDATION: Staff recommends that the City Commission approve the engagement letter agreement with Foley & Lardner LLP, law firm for ADPI - Intermedix, on the consent agenda. SUGGESTED MOTION: "Move to approve the consent agenda" Attachment: Engagement letter agreement CONFIDENTIALITY AND COMMON INTEREST AGREEMENT This Confidentiality and Common Interest Agreement ( " Agreement ") is entered into by and among Advanced Data Processing, Inc. dba Intermedix, a Florida corporation located at 6451 N. Federal Highway, Suite 1000, Ft. Lauderdale, FL 33308 ( " Intermedix "), and the Florida local public agencies who are signatories below, as well as the parties' undersigned legal counsel. Intermedix and the Florida local public agencies who are signatories below are referred to collectively herein as the "Parties" or individually as a "Party," through and including their respective undersigned legal counsel. WHEREAS, the Parties, excluding Intermedix, are in the business of providing emergency medical transportation services to patients, including Medicaid recipients; and WHEREAS, Intermedix provides Medicaid billing services to emergency transportation companies, including the Parties to this Agreement; and WHEREAS, the Florida Agency for Health Care Administration ( "AHCA ") has issued notices of intent to recoup certain alleged Medicaid overpayments from the Parties; and WHEREAS, this Agreement memorializes the Parties' already existing understanding with respect to their common interests in opposing AHCA's recoupment attempt by filing a consolidated petition and seeking a formal administrative hearing (the " Proceedings "); and WHEREAS, the Proceedings present certain legal and factual issues of common interest to the Parties, thus warranting joint efforts in exchanging information and confidences, including information and confidences which are subject to the attorney- client privilege, the work product doctrine, the self - critical examination privilege, the trade secret doctrine, the common interest doctrine, or any other privilege, doctrine or protection, including but not limited to Florida Statutes section 90.502 (collectively the " Privilege '); and WHEREAS, the Parties have undertaken, and will continue to undertake, factual and legal research and analysis and believe it to be in their best common interest and the best interest of each of them to exchange information, pool their individual work product and cooperate in a joint investigation and assessment; and WHEREAS, the Parties have all engaged Foley & Lardner LLP as legal counsel to collectively represent them in the Proceedings; and WHEREAS, the Parties agree that the sharing of communications and the exchange of information between them is necessary to accomplish each Party's purpose and is essential to the effective representation of the Parties concerning the Proceedings and any defense related thereto, and their communications and exchanges of information are consistent with the purposes of securing legal advice and for protecting the Privilege and their legal counsel's work product; and WHEREAS, the purpose of this Agreement is to maintain the protections afforded by the Privilege to certain privileged communications, documents and other materials ( " Confidential Information "), which the Parties agree are reasonably necessary for the accomplishment of the 4840 - 8231 - 1181.1 Parties' acts relating to the Proceedings, such that any disclosure among the Parties and their counsel of Confidential Information does not waive or otherwise alter any such Privilege. NOW, THEREFORE, the Parties hereby agree as follows: Oral Communications The undersigned counsel and Parties agree there is a mutuality of interest in the Proceedings. Except as provided under Paragraph 3 below, any past and future oral and written communications among the undersigned counsel for the Parties, and among any of the undersigned counsel, experts hired by the Parties or associated with counsel for the Parties, and any of the Parties themselves, and joint interviews of prospective witnesses in connection with the Proceedings undertaken under this Agreement, shall be treated and maintained by each of them as Confidential Information privileged and protected from disclosure to any Third Party (defined below) by the attorney - client, work product, and /or other Privilege. The Parties have treated, and shall continue to treat and maintain, such communications as Confidential Information privileged and protected from disclosure. 2. Documentary Materials and Information Except as provided in Paragraph 3 below, all information, documents, materials, technical reports and analyses, client and witness statements, interviews, memoranda of law, debriefing memoranda, factual summaries, transcript digests, documents, and such other material and information, recorded in whatever media, including electronically stored or electronically readable text or other data, that is otherwise protected from disclosure to a Third Party (defined below) may be exchanged by the undersigned Parties in connection with the Proceedings and shall be treated and maintained by each of them as Confidential Information privileged and protected from disclosure to any Third Party (defined below). The Parties have treated, and shall continue to treat and maintain, such information and documents as Confidential Information privileged and protected from disclosure. Non - Disclosure Any Confidential Information obtained or exchanged pursuant to this Agreement shall not be disclosed to any Third Party (defined below), except as provided for in this Agreement, without the prior consent of the Party that made the information available in the first instance. Confidential Information that is the product of joint efforts of the Parties may not be disclosed without the written consent of all Parties or their legal counsel who jointly produced the Confidential Information. Moreover, except as may be required by law or valid process or as otherwise provided herein, no Party to this Agreement may disclose the existence of this Agreement or its contents to any Third Party (defined below) without the prior written consent of the other Parties to this Agreement. For purposes of this Agreement, Parties mean all persons and government agencies, who are with the sole exception of- 2 the terms " Third Party and " Third entities, including without limitation, not signatories to this Agreement, 4840 - 8231 - 1181.1 I) the Parties themselves, including their respective inside and outside counsel and office staff acting under such counsel's direction; or 2) outside consultants retained by and acting under the direction and control of a Party (or its counsel) in connection with the Proceedings, provided that: a) no such consultant shall at any time be designated as a potential testifying expert witness by any Party who did not retain that consultant; and b) the identity and work product of each such consultant heretofore undisclosed to Third Parties be at all times regarded and maintained as the attorney work product of the Party retaining such consultant; and C) any such consultant execute a written agreement providing that any Confidential Information and material provided to him in the course of his work, and all work product generated or prepared by him, shall be maintained in confidence, subject to the terms of this Agreement, and shall not be disclosed to others. b. It is expressly understood that nothing contained herein shall preclude any receiving Party or its counsel from using documents or information that: 1) the receiving Party can demonstrate, by clear and convincing evidence, was already in that receiving Party's possession or the possession of its counsel, provided such information is not known by the receiving Party, after reasonable inquiry, to be subject to another confidentiality agreement with, or obligation of secrecy to, the disclosing Party; or 2) is or becomes generally available to the public (other than as a result of a disclosure by the receiving Party or its counsel or other representatives); or 3) becomes available to a Party or its counsel on a nonconfidential basis from a source other than the disclosing Party or one of its representatives, provided that such source is not known by the receiving Party, after reasonable inquiry, to be bound by a confidentiality agreement with or obligation of secrecy to the disclosing party; or 4) the receiving Party can demonstrate, by clear and convincing evidence, has been independently developed by the receiving Party or its counsel without use of, or reference to, information 3 4840 - 8231 - 1181.1 provided by the other Party pursuant to this Agreement (other than information described in clauses (1) — (3) of this paragraph). 4. Legal Compulsion /Requests for Production If a Third Party seeks Confidential Information subject to this Agreement, whether by discovery request, subpoena or otherwise, such Confidential Information shall not be disclosed except as ordered by a court of competent jurisdiction or as the disclosing Party and Foley & Lardner LLP otherwise agrees. a. Whenever a Party receives a request (e.g., by deposition, interrogatory, request for documents, civil investigative demand, civil, criminal or administrative subpoena, or similar process) to disclose this Agreement or any of the Confidential Information provided pursuant to this Agreement, the Party who receives the request shall give prompt written notice to all Parties, directly or through legal counsel, as soon as practicable to permit each Party an opportunity to object to the production, seek a protective order or other appropriate remedy, and /or waive compliance with the terms of this Agreement. The Party proposing to make such disclosure shall cooperate in seeking such a protective order or other confidential treatment of such information. b. To the extent such request is in writing, the receiving Party or its counsel shall provide promptly each of the undersigned counsel with a copy of the written request. With respect to any such request that includes Confidential Information that originated from another Party, the Party and its counsel receiving such a request shall also: a) assert any applicable Privilege that may reasonably be asserted, b) object to the request in any reasonable manner, c) not waive any Privilege without the advance written consent of all Parties that have standing to raise any applicable Privilege, d) provide all reasonable cooperation to counsel for the Party from whom such information originated in any proceeding relating to the disclosure of Confidential Information, and, e) undertake all reasonable efforts to prevent or limit disclosure of the requested information. Expert Access to Information Any expert retained by a Party or counsel or otherwise consulted by a Party or its counsel in connection with the Proceedings who shall be given access to Confidential Information subject to this Agreement shall be advised that the Confidential Information is being disclosed pursuant to and subject to the terms of this Agreement and may not be disclosed other than pursuant to the terms hereof. Each such expert shall acknowledge, in writing, through an Accession Agreement in a form acceptable to the Parties, his/her acceptance and understanding that the Confidential Information is subject to the terms of this Agreement. 6. Restriction on Use of Information Subject to Paragraphs 3 and 4 the Confidential Information exchanged pursuant to this Agreement may be used by any other Party, consistent with the maintenance of the privileged and confidential status of those materials, only for purposes of pursuing the Proceedings, including but not 4 4840 - 8231- 1181.1 limited to taking appropriate corrective actions regarding the Party's personnel or policies, and shall not be used for any other purpose without the prior written consent of the Party providing the information. The existence of this Agreement and of the Parties' joint efforts in connection with the Proceedings, along with any Confidential Information shared pursuant to this Agreement, shall not be used in any fashion against the signatories to this Agreement other than in connection with enforcing rights expressly provided in this Agreement. By way of example and not limitation, neither the existence of this Agreement nor the Parties' joint efforts in connection with the Proceedings shall: (i) be used offensively or defensively in any litigation between signatories to this Agreement (other than in connection with enforcing rights expressly provided by this Agreement) involving any issue relating to or deriving from the Proceedings; nor, (ii) be a basis on which to seek to disqualify counsel for any of the Parties hereto in any proceeding. 7. No Obligation to Exchange Confidential Information Nothing contained herein obligates any party to divulge, communicate, or exchange any Confidential Information. Nothing contained in this Agreement shall obligate any Party or their legal counsel to disclose any Confidential Information to the other Party or to any other person or entity. No duty to disclose information is created by this Agreement, provided however that no Party shall partially disclose information to another Party in such a way that such partial disclosure is materially misleading by virtue of the fact that such disclosure is incomplete. 8. Inadvertent Production The inadvertent production of any Confidential Information covered by this Agreement shall be without prejudice to any claim that such material is protected under the applicable Privilege, and no Party shall be held to have waived any rights by such inadvertent production. In the event that any Confidential Information covered by this Agreement is inadvertently produced, the Party that inadvertently received the Confidential Information shall return the Confidential Information together with all copies of the Confidential Information to the producing party promptly after it receives a written notice from the producing party that the Confidential Information was produced inadvertently. 9. Unpermitted Disclosures If any Confidential Information is divulged, disclosed, or provided to any person or entity other than a Party or their legal counsel, except as otherwise provided in this Agreement, the disclosure shall be a violation of this Agreement but shall not serve as or constitute a waiver of any applicable Privilege or protection. Nor will such a disclosure constitute a waiver of Privilege or protections on any other communications, documents or information. 10. Withdrawal Any Party may withdraw from this Agreement upon five (5) days' prior written notice to all other signatories, in which case this Agreement shall no longer be operative as to the withdrawing Party but shall continue to protect all Confidential Information disclosed to and received from the withdrawing Party (and its counsel, including, to the extent applicable, any experts) prior to its withdrawal. A withdrawing Party (and its counsel, including, to the extent applicable, any experts) shall immediately return (or, upon the permission of the other Party, destroy) all 5 4840 - 8231- 1181.1 Confidential Information received pursuant to this Agreement and all copies thereof. Notwithstanding the foregoing, the withdrawing Party (and its counsel, including, to the extent applicable, any experts) shall continue to be bound by this Agreement with regard to any Confidential Information learned or obtained prior to withdrawal. 11. Conclusion of the Proceedinas At the conclusion of the Proceedings, all Confidential Information subject to this Agreement (including all copies thereto in the possession of the receiving Party, its counsel or any experts) shall, upon request of the disclosing Party, be either destroyed or returned within thirty (30) days and the non - disclosing Party will not retain any copies, extracts or other reproductions in whole or in part of such tangible material provided by the other Party. Any such destruction shall be certified in writing to the disclosing Party by an authorized person supervising the same. 12. Injunctive Relief The Parties acknowledge that disclosure of any Confidential Information in violation of this Agreement will cause the Parties hereto to suffer irreparable harm for which there is no adequate legal remedy. Each Party acknowledges that immediate injunctive relief is an appropriate and necessary remedy for any violation or threatened violation of this Agreement and agrees to waive any requirements for the securing or posting of any bond in connection with such remedy. Each Party also agrees that any action for equitable or injunctive relief will be conducted under seal to the maximum extent permitted or available. 13. Caveats Nothing in this Agreement shall be construed to create an attorney- client relationship between any attorney and anyone other than the client of that attorney. The fact that any attorney has entered this Agreement shall not in any way preclude that attorney from representing any interest that may be construed to be adverse to any other Party to this Agreement or be used as a basis of a claim of conflict of interest or for seeking to disqualify any counsel from representing any party in this or any other proceeding. No attorney who has entered into this Agreement shall be disqualified from examining or cross - examining any Party's employee, former employee, expert, consultant, representative or agent who testifies at any proceeding, whether under a grant of immunity or otherwise, because of such attorney's participation in this Agreement. In the event of any conflict between this Agreement and any legal services engagement agreement between a Party and Foley & Lardner LLP, the terms of the legal services engagement agreement shall control. 14. Effective Date and Prior Communications and Exchanges This Agreement memorializes the Parties' currently existing understanding and agreements regarding matters that may arise in connection with the Proceedings between or among any of the undersigned counsel and /or their clients. Subject to Paragraph 3 , all previous privileged communications, and all privileged and confidential material previously exchanged, between and among the Parties relating to the Proceedings are subject to this Agreement. This Agreement shall be effective as of November 1, 2011. 15. Notices Any and all notices required under this Agreement shall be provided by Federal Express to the addresses and contact information listed for each party in the signature 4840 - 8231- 1181.1 blocks at the end of this Agreement, provided that all notices also send a copy to the following: Nathaniel Lacktman Foley & Lardner LLP 100 N. Tampa Street, Suite 2700 Tampa, FL 33602 813.225.4127 (tel) nlacktman(a)foley.com Intermedix 6451 N. Federal Highway, Suite 1000 Ft. Lauderdale, FL 33308 16. From the date this Agreement is fully executed and thereafter, each Party agrees to use its reasonable best efforts to label all Confidential Information that it discloses pursuant to this Agreement, whether in print or electronic format, "Privileged and Confidential." 17. This Agreement constitutes the entire agreement among the Parties with respect to the subject of the Agreement and, with the exception of any legal services engagement agreements between a Party and Foley & Lardner LLP, supersedes all prior representations and understandings with respect to this Agreement. 18. No amendment, modification, waiver or termination of this Agreement shall be binding unless executed in writing by all the signatories to this Agreement. 19. The recitals set forth above shall be incorporated into this Agreement as though set forth fully herein. 20. If any provision of this Agreement is determined to be invalid or unenforceable, the remaining provisions shall continue to be fully operative and enforceable. 21. This Agreement is governed by the laws of the state of Florida and any issue relating to this Agreement shall be brought in a court in Florida with proper jurisdiction. Venue shall be proper in Hillsborough County, Florida. 22. This Agreement may be signed in counterparts, each of which shall be deemed an original and all of which shall constitute one instrument. Executed versions of this Agreement may be delivered to the other Parties by facsimile or electronic mail, which versions shall have the same force and effect as an original. 23. Notwithstanding anything herein to the contrary, this Agreement shall not prohibit a Party from complying with any applicable legal obligation imposed under Chapter 119, Florida Statutes (Florida's Public Records Law), or any other applicable law, regulation or order. 7 4840 -8231- 1181.1 WIIEREFORE, having fully read and understood the terms of this Agreement, the undersigned Parties and legal co sign their names below with the intention that they shall be bound by it. Lacktman R. ichael Scarano f Foley & Lardner LLP unsel for the Parties Date Notices to be sent to: Nathaniel Lacktman Foley & Lardner LLP 100 N. Tampa Street, Suite 2700 Tampa, FL 33602 813.225.4127 (tel) nlacktlnan mfole .coin Sign Print name for Intermedix i I `',C' C..C. i Date Notices to be sent to: Interrnedix 6451 N. Federal Highway, Suite 1004 Ft. Lauderdale, FL 33308 . 4840 - 8231 - 1181.1 WHEREFORE, having fully read and understood the terms of this Agreement, the undersigned Parties and legal counsel sign their names below with the intention that they shall be bound by it. January 10, 2012 Signed Date Norton N. Bonaparte, Jr. Print name for City of Sanford Notices to be sent to: City of Sanford P.O. Box 1788 Sanford, FL 32772 13 4840 -8231- 1181.1 intermedix TO: City of Sanford FROM: Intermedix Corporation RE: Florida Medicaid Recoupments As you are aware, the Florida Medicaid program has initiated recoupments of funds which the State asserts were improperly paid for certain dually eligible Medicaid beneficiaries. Although the recoupment notices issued by the State did not offer providers any appeal rights, we believe that the State's action is appealable, and that there are good arguments in support of an appeal. To summarize, the basis for our appeal is as follows: Under Florida law, the State "is prohibited from demanding repayment from [a] provider in any instance in which the Medicaid overpayment is attributable to error of the department in the determination of eligibility of a recipient." Fla. Stat. § 409.907(5)(b). Here, we believe the alleged overpayments at issue are attributable to erroneous determinations by the State regarding the eligibility of certain Medicaid beneficiaries for Medicaid benefits. When the State Medicaid program seeks to make recoupments, Florida law requires that the state prepare and issue an audit report showing the calculation of the alleged overpayments. See Fla. Stat. § 409.913(21). The State failed to do so in connection with the recoupments at issue. The State may not reject our petition on the grounds that it was not filed within 21 days because the State failed to provide notice of the providers' appeal rights in the recoupment notice, as required by law. Based on these arguments, as a service to our clients, we intend to file a petition on their behalf seeking to overturn the recoupments. The purpose of this memorandum is to determine whether you would like to be included in that appeal. We have retained the law firm of Foley & Lardner LLP ( "Foley "), at our expense, to represent our clients who wish to participate in the appeal. If you are interested in participating, it will be necessary for you review, sign and return to us the enclosed engagement letter prepared by Foley. That letter will authorize Foley to represent your agency as part of our group. Because time is of the essence in filing the petition, we request that you sign and return the letter no later than Wednesday, November 23, if you would like to be included in the appeal. If you would prefer not to be included in our petition, but your agency would like to bring its own appeal, please let us know and we are happy to share a copy of our draft petition with you. 4821 - 8139- 0606.1 www.intermedix.com If you have any questions about Foley's letter, Lacktman at 813- 229 -2300. questions, please do not hesitate to contact me. If you have any please feel free to contact Mike Scarano at 858- 847 -6712 or Nate 4821 - 8139- 0606.1 FOLEY FOLEY & LARDNER LLP November 15, 2011 City of Sanford P.O. Box 1788 Sanford, FL 32772 Re: Engagement Letter Agreement ATTORNEYS AT LAW 3579 VALLEY CENTRE DRIVE, SUITE 300 SAN DIEGO, CA 92130 -3302 858.847.6700 TEL 858.792.6773 FAX foley.com CLIENT /MATTER NUMBER 092865 Thank you for selecting Foley & Lardner LLP (the "Firm ") to represent City of Sanford ( "the Agency "). Although we regret the length and formality of this Engagement Letter Agreement ( "Agreement "), it is important that we have a clear understanding of our working relationship going forward. Please do not hesitate to contact us if you have any concerns. 1. Scope of Engazement This Agreement confirms the terms of this matter. As we discussed, the scope of our engagement will be to represent the Agency in a petition to overturn a recoupment by the Florida Medicaid program (the "Matter "). We have also offered to represent 17 other public agencies (collectively, the "Agencies ") and intend to file a consolidated petition on behalf of all the Agencies. a. One way to proceed with the Matter is for each of the Agencies to have separate counsel. There are issues where the Agencies may have potential conflicts such as, for example, if the parties disagree regarding strategy. Nevertheless, the Agencies may want us to represent all of them in order to, among other things, reduce legal costs. We do not believe that there are currently any conflicts in the Agencies' position and, as a result, we do not believe our representation of one agency will be affected by our representation of the others. b. If the Agencies disagree on any issue, we will not be able to represent any one of you with respect to that issue if you are not able to resolve it. If the differences are serious enough, we may be required by the applicable ethical rules to withdraw from the Matter completely, in which case each of the Agencies will each have to seek other counsel. C. In order to facilitate our joint representation, you agree that the Firm may disclose and discuss confidential or otherwise privileged information obtained in the course of its representation with each of the Agencies being represented by the Firm in the Matter. However all confidential information from each of the parties being represented by the Firm in the Matter shall be treated as confidential with respect to any third party, and all communications between the Firm and each of the parties it represents in the Matter shall be deemed protected from disclosure to third parties by various privileges and immunities as applicable, including, without limitation, the attorney - client privilege and BOSTON JACKSONVILLE MILWAUKEE SAN DIEGO SILICON VALLEY BRUSSELS LOS ANGELES NEW YORK SAN DIEGO /DEL MAR TALLAHASSEE CHICAGO MADISON ORLANDO SAN FRANCISCO TAMPA DETROIT MIAMI SACRAMENTO SHANGHAI TOKYO WASHINGTON, D.C. 4813- 7470 - 6446.1 :FOLEY FOLEY & LARDNER LLP November 15, 2011 Page 2 the doctrines of attorney work product, joint defense, and community of interest, or any other protections which would normally exist with respect to any third party. d. Given the scope of our engagement, we expect that you may provide us with "Protected Health Information" under the Health Insurance Portability and Accountability Act ( "HIPAA "). To comply with HIPAA, we have attached a Business Associate Agreement ( "BAA ") to this engagement letter. We ask that you please return an executed BAA with your signed engagement agreement, or contact us with any questions or concerns. 2. Staffin Nate Lacktman and I will have primary responsibility for the Matter, but will utilize other Firm attorneys and paraprofessionals when that is appropriate and cost effective. We will keep the Agency informed of our progress, and will utilize our best efforts to respond to the Agency as promptly as possible. In return, the agency agrees to keep us informed of any developments that affect the Matter as soon as the agency becomes aware of them, and to be available when we need to consult with the agency. 3. Conflicts of Interest We have checked our records based on the information the agency has provided to us at this time. Our search also included the names of business entities, if any, about which you have informed us of an affiliation that could give rise to significant concerns if we should be involved in matters for other clients directly adverse to such business entities. We have determined that there is no conflict of interest that prevents us from working on the Matter. This Agreement creates an attorney /client relationship only between the Firm and the agency. Therefore, the agency agrees that this engagement does not create an attorney /client relationship between the Firm and any business entities with which you are affiliated unless subject to a separate engagement Agreement. The agency will not provide the Firm with any confidential information about any of its other subsidiaries or affiliates, and the Firm will not provide services to the Agency's subsidiaries or affiliates unless the Firm represents such subsidiary or affiliate. The Agency agrees that our representation of the agency will not create any conflicts of interest in the event that other clients of the Finn are adverse to a subsidiary or affiliate of the Agency (unless that subsidiary or affiliate also is represented by the Firm). 4. Advance Waiver of Conflict a. The Agency agrees that the Firm may represent current or new clients in work directly adverse to the Agency, provided such work is not substantially related to the Matter and the Firm does not use any of the Agency's confidential information in representing such clients. This consent includes our being trial counsel in litigation adverse to the Agency. In addition, the Agency agrees that, even though the Firm 4813- 7470 - 6446.1 0 FOLEY FOLEY & LARDNER LLP November 15, 2011 Page 3 represents the Agency in this Matter, the Firm may represent in the future other parties who are adversely involved in the Matter, or who may later become involved in the Matter, as long as that representation of other parties is substantially unrelated to the Matter. By way of examples only, and assuming such representations are not substantially related to the Matter, we may represent one or more parties in bankruptcy cases that may have interests adverse to the Agency, we may represent clients with regard to intellectual property rights that may be adverse to those of the Agency, or we may represent clients in contract or other business disputes adverse to the Agency. The Finn agrees that it will not use any of the Agency's confidential information in representing such other clients and, when needed, we will establish an ethical wall to assure that confidential information is not exchanged between those working on the Matter and those working for such other clients. b. Our Firm policy requires that any advance waiver of future conflicts be in writing, and by signing and returning a copy of this Agreement, the Agency agrees to this advance waiver. 5. Fees and Billing The Agency has asked the Firm to accept payment from Intermedix Corporation, for whom we serve as counsel in other matters, for the services incurred on the Agency's behalf regarding the Matter. Intermedix Corporation has agreed pay such fees under the same terms as set forth in its engagement arrangement with the Firm. The Firm is willing to accept such payment, on condition that the Agency expressly waives any conflict or claim against the Firm related to the payment of the Agency's legal fees and costs by Intermedix Corporation. 6. Limitations of Liability Foley & Lardner LLP is a limited liability partnership under the laws of Wisconsin. This means the Agency's right to recover damages in a legal malpractice action that may exceed our insurance and Firm assets is limited to the personal assets of the attorneys whose acts or omissions gave rise to the Agency's claim. 7. Termination of Representation a. Either of us may terminate this Agreement at any time for any reason by written notice. The Firm is subject to applicable rules of professional conduct when terminating a client engagement. If we terminate the engagement, the Finn will take all reasonable and practical steps to protect the Agency's interests in the Matter and, at its request, suggest possible new counsel. We will provide new counsel with any papers the Agency has given us. If permission from the court is necessary for withdrawal, we will promptly apply for it, and the Agency will engage new counsel to represent the Agency. 4813 - 7470 - 6446.1 :FOLEY FOLEY & LARONER LLP November 15, 2011 Page 4 b. Unless previously terminated, our representation of the Agency in the Matter will end when we send our final invoice. After the Matter ends, there might be changes in laws or regulations that might affect the Agency's future rights and liabilities, but the Finn does not have an obligation to continue to advise the Agency about future legal developments, unless the Agency engages us to do so. 8. Disaosition of Files and Records a. Following the conclusion of the Matter, we will maintain the confidentiality of any of the Agency's confidential information provided us in accordance with applicable rules of professional conduct. Any documents provided by the Agency, or provided by a third party, will be returned to the Agency unless the Agency authorizes destruction of them. b. We will retain our own files pertaining to the Matter, including material prepared by or for the internal use of our attorneys. These include the Firm's administrative records, time and expense reports, personnel and staffing materials, credit and accounting records, internal attorneys' work product (such as drafts, notes, internal memoranda and legal and factual research), written and electronic communications, pleadings, and investigative reports. The Firm has internal policies that determine the retention periods for closed representation files. Therefore, if the Agency does not request return of this file material, the Firm reserves the right to destroy it at the end of the defined retention period. Upon the Agency's reasonable request, the Firm will provide such portions of these file materials to the Agency as required by the applicable rules of professional responsibility or other legal requirements. Unless applicable rules of professional responsibility require an earlier return, we may retain such file material pending receipt of payment of any outstanding fees or costs. 9. Communication a. We often send to our clients information about the Firm or legal matters we think might be of interest to them. The Agency agrees that we may send the Agency this material, either by electronic mail or other means. The Agency also agrees that we may communicate with the Agency about this Matter by electronic mail on an unencrypted basis. b. Either at the beginning or during representation, we might express opinions or beliefs concerning the Matter and the results that might be anticipated. Any such statement made by us is an expression of opinion only and is not a promise or guarantee of results. 4813- 7470 - 6446.1 :FOLEY FOLEY 8 LARDNER LLP November 15, 2011 Page 5 10. Arbitration Any dispute over fees and/or costs (a "Dispute ") will be submitted to and settled exclusively by binding arbitration, in accordance with the provisions of this section, subject only to any applicable requirement of law that the parties engage in a preliminary non - binding mediation or arbitration regarding fee disputes. Binding arbitration shall be conducted in accordance with the Judicial Arbitration and Mediation Service Streamlined Rules & Procedures (the "JAMS Rules "). Arbitration shall be held in the county of Hillsborough, before an arbitrator selected pursuant to the JAMS Rules who will have no personal or pecuniary interest, either directly or indirectly, from any business or family relationship with either of the parties. All decisions of the arbitrator will be final, binding, and conclusive on the parties. The parties will equally share the costs of the arbitrator and the arbitration fee (if any). Each party will bear that party's own attorneys' fees and costs, and the prevailing party will not be entitled to reimbursement by the other party of any of its fees or costs incurred in connection with the arbitration hereunder, regardless of any rule to the contrary in the applicable arbitration rules. Either party may seek confirmation of the arbitration award in a court of competent jurisdiction in, and each party hereby consents to, the exclusive jurisdiction and venue of the Superior Court in Hillsborough County any claim or action arising hereunder. By signing this Agreement containing this provision, the Agency agrees to waive any and all rights to a jury trial regarding any Dispute. Before you sign this agreement you should consider consulting with another lawyer about the advisability of making an agreement with mandatory arbitration requirements. Arbitration proceedings are ways to resolve disputes without the use of the court system. By entering into agreements that require arbitration as the way to resolve fee disputes, you give up (waive) your right to go to court to resolve those disputes by a judge or jury. These are important rights that should not be given up without careful consideration. Please confirm the Agency's approval of this Agreement by signing and returning the enclosed duplicate copy in the envelope provided. If the Agency has any questions, or if this Agreement does not accurately set forth our arrangement, please let me know. 4813 - 747D- 6446.1 ONFOLEY FOLEY & LARDNER LLP November 15, 2011 Page 6 We look forward to working with you on this Matter. Very truly yours, FOLEY & LARDNER LLP i R. Michael Scarano, Jr. Enclosures AGREED AND ACCEPTED: City of Sanford BY: (Authorized ignatur N N. aparte, Jr. (Title) January 10, 2012 (Date) 4813 - 7470 - 6446.1 :FOLEY FOLEY & LARDNER LLP November 15, 2011 Page 7 LAW FIRM BUSINESS ASSOCIATE HEALTH INFORMATION PRIVACY AGREEMENT This Agreement, effective 1'2,/ / L / /I , is entered into by and between Foley & Lardner LLP ( "Business Associate "), and City of Sanford ( "Client "), (each a "Party" and collectively the "Parties "). Business Associate is a law firm and Client is either a "Covered Entity" as defined by the Standards for Privacy of Individually Identifiable Health Information ( "Privacy Regulations ") and the Security Standards for Electronic Protected Health Information ( "Security Regulations ") under the Health Insurance Portability and Accountability Act of 1996 ( "HIPAA "), Public Law 104 -191, as amended by the Health Information Technology for Economic and Clinical Health Act, as incorporated in the American Recovery and Reinvestment Act of 2009, and its implementing regulations and guidance issued by the Secretary, all as amended from time to time (the " HITECH Act ") (the Privacy Regulations, the Security Regulations, HIPAA and the HITECH Act defined collectively as the "Standards ") or if not a Covered Entity itself, is the sponsor of a Group Health Plan that is a Covered Entity. As such, Client is required to have this Agreement in effect with Business Associate. Client has retained Business Associate to provide legal services (the "Services ") and Discloses Protected Health Information to Business Associate in connection with such Services. This Agreement sets forth the terms and conditions pursuant to which Client and Business Associate will handle Protected Health Information that is received by Business Associate from, or created or received by Business Associate on behalf of, Client or, in the case of a Group Health Plan sponsored by Client, the Group Health Plan ( "PHI "). The Parties agree as follows: 1. DEFINITIONS Unless otherwise provided in this Agreement, capitalized terms used in this Agreement have the same meaning as set forth in the Standards. 2. PERMITTED USES AND DISCLOSURES OF PHI a. Provision of Services Business Associate provides legal services to Client, including but not limited to, litigation and counseling, that may involve the Use or Disclosure of PHI. Business Associate recognizes and agrees that it is obligated by law to comply with the applicable provisions of the Standards, including the HITECH Act. Except as otherwise specified herein, Business Associate may Use and Disclose PHI: (a) to provide such services or perform its obligations to Client, (b) as Required by Law, and (c) as provided by sections 2.2 and 2.3 below. Disclosures permitted hereunder include disclosures to Client and disclosures made to third parties at Client's direction. All Uses and Disclosures not authorized by this Agreement are prohibited. b. Authorizations Business Associate may Use and Disclose PHI as authorized pursuant to the terms and conditions of any authorization that Business Associate 4813- 7470 - 6446.1 :FOLEY FOLEY & LARDNER LLP November 15, 2011 Page 8 determines is valid and complies with the requirements of the Standards for authorizations. C. Business Activities of Business Associate Business Associate may: i. Use PHI in its possession for its own proper management and administration, or to carry out its legal responsibilities. ii. Disclose PHI in its possession to third parties for the purpose of its own proper management and administration, or to carry out legal responsibilities of Business Associate, provided that: (1) The Disclosure is Required by Law; or (2) Business Associate has received from the third party reasonable assurances that: (a) the information will be held confidentially, and Used or further Disclosed only as Required by Law or for the purpose for which it was Disclosed to the third party; and (b) the third party will notify Business Associate of any breach of confidentiality of such PHI of which the third party becomes aware. 3. RESPONSIBILITIES OF BUSINESS ASSOCIATE a. Prohibition on Unauthorized Use or Disclosure Business Associate shall Use or Disclose PHI only as permitted or required by this Agreement or as otherwise Required by Law. b. Safeguards and Security Business Associate shall implement and maintain such safeguards as are reasonable and appropriate to ensure that PHI is not Used or Disclosed by Business Associate, except as is provided in this Agreement, or as otherwise Required by Law. Business Associate shall: (a) implement and maintain administrative safeguards as required by 45 CFR § 164.308, physical safeguards as required by 45 CFR § 164.310 and technical safeguards as required by 45 CFR § 164.312; (b) implement and document reasonable and appropriate policies and procedures as required by 45 CFR § 164.316; and (c) be in compliance with all requirements of the HITECH Act related to security and applicable as if Business Associate were a Covered Entity. Business Associate shall use its best efforts to implement and maintain technologies and methodologies that render PHI unusable, unreadable or indecipherable to unauthorized individuals as specified in the HITECH Act. 4813 - 7470 - 6446.1 :FOLEY FOLEY 8 LARDNER LLP November 15, 2011 Page 9 Reporting i. Business Associate shall report to Client any Use or Disclosure of PHI that is not permitted or required by this Agreement of which Business Associate becomes aware, as well as each Security Incident of which Business Associate becomes aware. "Security Incident" means the attempted or successful unauthorized access, use, disclosure, modification, or destruction of information in, or interference with system operations of, an Information System which contains Electronic Protected Health Information. The Parties agree that Business Associate shall not be required to notify Client of Security Incidents involving attempts to access an Information System that are not reasonably considered by Business Associate to constitute an actual threat to the Information System; rather, this paragraph shall be deemed to constitute notice by Business Associate to Client of any such Security Incident. ii. In the event of any Breach of Client's Unsecured PHI by Business Associate, its agents or subcontractors, Business Associate shall notify Client of such Breach in writing within thirty (30) days of the date Business Associate Discovers such Breach. To the extent the information is available to Business Associate, Business Associate's written notice shall include the information required by 45 CFR §164.410. Client shall have sole control over the timing and method of providing notification of such breach to the affected individual(s) or others as required by the HITECH Act. Business Associate shall reimburse Client for its reasonable costs and expenses in providing the notification, including, but not limited to, any administrative costs associated with providing notice, including printing and mailing costs. In addition, if Client reasonably determines that, given the type of information involved in the Breach, Client must purchase credit monitoring services or identify theft insurance for the affected individual(s) in order to mitigate the damage caused by the Breach, then Business Associate shall also reimburse Client's costs of obtaining such credit monitoring services or identity theft insurance (not to exceed one year) for affected individuals whose PHI has or may have been compromised as a result of the Breach. In order to be reimbursed by Business Associate, Client must provide to Business Associate a written accounting of Client's actual costs and, to the extent applicable, copies of receipts or bills with respect thereto. d. Subcontractors Business Associate shall require all of its subcontractors (including local counsel) and agents that receive or Use, or have access to, PHI to agree, in writing, to adhere to the same restrictions and conditions on the Use or Disclosure of PHI and implementation of reasonable and appropriate safeguards, including of Electronic Protected Health Information, that apply to Business Associate under this Agreement. e. Inspection of Books and Records Subject to the provisions contained in Section 5 of this Agreement, Business Associate shall make available all records, books, 4813- 7470 - 6446.1 :FOLEY FOLEY & LARDNER LLP November 15, 2011 Page 10 agreements, policies and procedures relating to the Use or Disclosure of PHI, and the safeguarding of Electronic Protected Health Information, to the Secretary of the United States Department of Health and Human Services (the "Secretary ") for purposes of determining Client's compliance with the Standards. f. Access Subject to the provisions contained in Section 5 of this Agreement, upon the written request of Client, Business Associate shall provide an individual access to any PHI that relates to such individual and is part of Client's Designated Record Set in the time, form and manner instructed by Client, including in an electronic format in compliance with the HITECH Act if Business Associate is deemed to maintain an Electronic Health Record on behalf of Client. Client and Business Associate do not anticipate that any PHI in Business Associate's custody or control will be part of Client's Designated Record Set, nor will such PHI be maintained by Business Associate in an Electronic Health Record. Accordingly, Client and Business Associate do not anticipate that Business Associate will be called upon to provide the access to PHI required under this Section 3.6. g. Accounting Subject to the provisions contained in Section 5 of this Agreement, upon the written request of Client, Business Associate shall document such Disclosures of PHI that Client would be required to account for in accordance with the Standards, and provide to Client, within thirty (30) days of receiving such request from Client, such documentation as is requested by Client to permit an accounting of such Disclosures. If Business Associate is deemed to use or maintain an Electronic Health Record on behalf of Client with respect to PHI, then Client may not respond to an individual's request for an accounting of disclosures made through an Electronic Health Record by providing the requesting individual with a list of all business associates acting on behalf of Client, and naming Business Associate in such list. Client and Business Associate do not anticipate that Business Associate will be deemed to use or maintain an Electronic Health Record on behalf of Client. In addition, Client and Business Associate anticipate that all of Business Associate's Uses and Disclosures of PHI will be for the Health Care Operations of providing, or arranging for the provision of, the Services or for other purposes not subject to an accounting under the Standards. Accordingly, Client and Business Associate do not anticipate that Business Associate will have to provide any documentation or accounting required under this Section 3.7 as to the provision of Services. However, Business Associate must provide the documentation and the accounting required by this Section 3.7 with respect to each unauthorized Disclosure by Business Associate. h. Amendment of PHI Subject to the provisions contained in Section 5 of this Agreement, Business Associate shall incorporate, within thirty (30) days of receiving a written request from Client, any amendments to PHI in the possession or control of Business Associate that constitutes a part of Client's Designated Record Set. Such amendments shall be incorporated in the time, form and manner instructed by Client. 4813 - 7470-6446.1 :FOLEY FOLEY 8 LARDNER LLP November 15, 2011 Page 11 Client and Business Associate do not anticipate that Business Associate will hold or control any PHI that is a part of Client's Designated Record Set. Accordingly, Client and Business Associate do not anticipate that Business Associate will have to amend PHI as required under this Section 3.8. i. Remuneration for PHI Business Associate agrees that it shall not, directly or indirectly, receive remuneration in exchange for any PHI of Client except as is otherwise permitted by the HITECH Act. j. Limited Use of PHI To the extent required by the HITECH Act, Business Associate shall limit its Use, Disclosure or request of PHI to the Limited Data Set or, if needed, to the minimum necessary to accomplish the intended Use, Disclosure or request, respectively. k. Limitations on Use of Protected Health Information for Marketing Purposes Business Associate shall not Use or Disclose PHI for the purpose of making a communication about a product or service that encourages recipients of the communication to purchase or use the product or service, unless such communication: (a) complies with the requirements of subparagraph (i), (ii) or (iii) of paragraph (1) of the definition of marketing contained in 45 CFR § 164.501, and (b) complies with the requirements of subparagraphs (A), (B) or (C) of Section 13406(a)(2) of the HITECH Act and implementing regulations or guidance that may be issued or amended from time to time. Client and Business Associate do not anticipate that Business Associate will Use or Disclose PHI for the purpose of making a communication about a product or service that encourages recipients of the communication to purchase or use the product or service. 4. RESPONSIBILITIES OF CLIENT a. Limited Disclosure of PHI Client will disclose to Business Associate only the minimum necessary as is necessary to enable Business Associate to perform the Services. b. Changes Affecting Authorization Client will inform Business Associate of any changes in, or withdrawal of, the authorization provided to Client by an individual, to the extent such changes may impact in any manner the Use or Disclosure of PHI by Business Associate under this Agreement. C. Restrictions Affecting Use or Disclosure of PHI Client will-notify Business Associate, in writing and in a timely manner, of any arrangements that are binding on Client that may impact in any manner the Use or Disclosure of PHI by Business Associate under this Agreement. Such arrangements may include, but are not limited to any restrictions on Uses or Disclosures requested by an individual and agreed to by Client. If Client is required to comply with a restriction on the disclosure of PHI 4813 - 7470 - 6446.1 :FOLEY FOLEY & LARDNER LLP November 15, 2011 Page 12 pursuant to Section 13405 of the HITECH Act, then Client shall, to the extent needed to comply with such restriction, provide written notice to Business Associate of the name of the individual requesting the restriction and the PHI affected thereby. Business Associate shall, upon receipt of such notification, not Disclose the identified PHI to any health plan for the purposes of carrying out Payment or Health Care Operations, except as otherwise required by law. Client and Business Associate do not anticipate that performance of the Services will require Business Associate to Disclose PHI to any health plan for purposes of carrying out Payment or Health Care Operations. Accordingly, Client and Business Associate do not anticipate that Client will need to notify Business Associate of its obligation to comply with a restriction pursuant to Section 13405 of the HITECH Act. 5. ATTORNEY CLIENT RELATIONSHIP Notwithstanding anything to the contrary contained herein, the Parties, recognizing that Business Associate serves as an attorney for Client, hereby agree that nothing contained in this Agreement: i. Waives the attorney - client, work - product, or any other privilege that may be invoked by, or is applicable to, either Party; ii. Imposes any duties or obligations on Business Associate that are inconsistent with Business Associate's duties and obligations to Client as a client of Business Associate, including, without limitation, any obligation of confidentiality or other obligation imposed on Business Associate under ethical rules applicable to the Parties' attorney - client relationship or otherwise at law; or iii. Limits either Party's right or ability to adequately conduct discovery in any arbitration or litigation proceeding. It is the intention of the Parties that this Agreement shall be narrowly construed and that nothing contained in this Agreement shall impact any aspect of the attorney - client relationship that does not involve the Use or Disclosure of PHI. 6. TERM AND TERMINATION a. Term This Agreement shall become effective upon the signature of both Parties and shall continue in effect until all obligations of the Parties have been met, subject to the Parties' right of termination. b. 'Termination of this Agreement Subject both to Business Associate's ethical obligations to Client, and any other agreement between the Parties, either Party may immediately terminate the Parties' attorney - client relationship, and this Agreement. If Business Associate knows of a pattern of activity or practice of Client that constitutes a material breach or violation of Client's obligations under the Agreement, 4813- 7470 - 6446.1 :FOLEY FOLEY & LARDNER LLP November 15, 2011 Page 13 then Business Associate shall: (a) notify Client in writing of the breach or violation and provide the Client with a reasonable period to cure such breach or end such violation, if possible; or (b) if a cure of the breach or violation is either not possible or is unsuccessful, upon written notice to Client, terminate the attorney - client relationship with Client to the extent such relationship involves the Use or Disclosure of PHI; or (c) if such termination is not feasible, report the breach or violation to the Secretary, unless the regulations promulgated under the HITECH Act exempt Business Associate from such reporting requirement. C. Effect of Termination The Parties hereby acknowledge and agree that, except in certain limited circumstances, in the event of the termination of the attorney- client relationship between Client and Business Associate, it will not be feasible for Business Associate to return to Client or destroy PHI held by Business Associate on behalf of Client. Business Associate and its agents or subcontractors, if any, shall follow the restrictions of this Agreement regarding PHI retained by them, respectively, and shall limit further Uses and Disclosures to those purposes that make return or destruction infeasible. d. Survivability The respective rights and obligations of the Parties with respect to PHI shall survive termination of this Agreement for so long as Business Associate retains custody or control of PHI. 7. GENERAL PROVISIONS a. Amendments: Waiver This Agreement may not be modified, nor shall any provision hereof be waived or amended, except in a writing duly signed by authorized representatives of the Parties. b. No Third Party Beneficiaries Nothing express or implied in this Agreement is intended to confer, nor shall anything herein confer, upon any person other than the Parties and the respective successors or assigns of the Parties, any rights, remedies, obligations, or liabilities whatsoever. C. Disputes If any controversy, dispute or claim arises between the Parties with respect to this Agreement, the Parties shall make good faith efforts to resolve such matters in a manner that allows each Party to comply with the Standards. d. Counterparts This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument. 4813- 7470 - 6446.1 FOLEY FOLEY 8 LARDNER LLP November 15, 2011 Page 14 IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly executed in its name and on its behalf effective as of i U I U 1 CITY OF O By: � -- Print Name: Nor on N. Bonapa Print Title City Manager UTUR FOLEY & LAR P + / B Jr Print Name: Print Title: 4813 - 7470-6446.1