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CC - CONSENT ITEM: (1) Ratification of an Amendment to Existing Professional Services Agreement with Occu-Med for Medical Services Increasing the Fiscal Year 2023-2024 Amount by an Additional $60,000 and Increasing the Fiscal Year 2024-2025 Amount Not-to-Exceed $100,000.
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Meeting Date: May 28, 2024
Contact Person/Dept.: Tiffany Johnson/Human Resources Department
Phone Number: (310) 253-5641
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (05/22/2024)
Department Approval: Dana Anderson, Director of Human Resources, (05/15/2024) _____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council ratify an amendment to the existing professional services agreement with Occu-Med for medical services increasing the Fiscal Year 2023-2024 amount by an additional $60,000 and increasing the Fiscal Year 2024-2025 amount not-to-exceed $100,000.
BACKGROUND
On August 9, 2023, the Human Resources Department entered into a professional service agreement with Occu-Med for medical services, including pre-placement medical evaluations for new hire candidates. Pre-placement medical evaluations determine if a candidate can safely perform essential job functions with or without accommodations.
Occu-Med is a nationally recognized leader in medical evaluations for employment with over 15,000 locations nationwide. It provides services to various government contractors, public agencies, private companies, and public safety agencies.
DISCUSSION
The initial four-year professional services agreement with Occu-Med offers its signature service “EXAMQA” package which includes pre-placement medical evaluations, and the amount was not to exceed $6,000 annually based on a much smaller volume of exams. However, after experiencing considerable delays with the previous medical service provider, the City decided to enhance services with Occu-Med and initiated the “EXAMQA2” package to begin utilizing its services on a much broader scale than initially anticipated. OCCU-Med offered a pilot period to test the upgraded service that includes exam scheduling with various medical clinics. OCCU-Med’s service model significantly reduced the City’s pre-employment medical exam timeline in terms of scheduling, appointment fulfillment and the return of test results. Further, new hire candidates are now given the option to schedule convenient appointments at their preferred date, time, and location. Previously, candidates were limited to completing medical exams at one location with limited-service hours during the week.
The “EXAMQA2” package offers an efficient option for medical exam scheduling and evaluation services. The current agreement was amended to (1) modify the scope of work to include these additional services; (2) increase the maximum compensation by an additional $60,000 for Fiscal Year 2023-2024; and (3) increase the maximum compensation to an amount not-to-exceed $100,000 for Fiscal Year 2024-2025. This amendment was inadvertently executed in an amount in excess of the administrative purchasing authority. Staff recommends the City Council ratify this amendment to the professional services agreement with Occu-Med so that the City can continue with the preferred service package through the end of the contract term expiring on June 30, 2025.
FISCAL ANALYSIS
The Adopted Budget for Fiscal Year 2023-2024 includes sufficient funds to pay for services in Accounts 30922200.614100 (Risk Management - Medical Services) and 30922200.619600 (Risk Management - Drug Testing Program). Funds for the second year of the agreement are included in the Proposed Budget for Fiscal Year 2024-2025 in the respective accounts.
ATTACHMENTS
None
MOTION
That the City Council:
Ratify an amendment to the existing professional services agreement with Occu-Med for medical services increasing the Fiscal Year 2023-2024 amount by an additional $60,000 and increasing the Fiscal Year 2024-2025 amount not-to-exceed $100,000.