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SR-012208-1G~_ ~;tYo, City Council Report Santa Monica City Council Meeting: January 22, 2007 Agenda Item: 1 ~G To: Mayor and City Council From: Karen Bancroft, Director of Human Resources Subject: Medical Consulting Services Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a professional services agreement with Santa Monica Bay Physicians Medical Group for medical consulting services for an amount expected not to exceed $250,000 per. Fiscal Years 2007-08 and 2008-09, for a total amount of $500,000 for the two-year contract. Executive Summary The Human Resources Department currently uses Santa Monica Bay Physicians Medical Group's Center for Health Enhancement at St. John's Health Center for ongoing full service consulting with regard to pre-employment and employee medical examinations, which includes annual exams made available to Council Members, executive pay plan participants, division heads, and professional and administrative employees. Santa Monica Bay Physicians Medical Group provides a wide array of preventive and corporate health services, including: occupational medicine; pre- employment and annual physicals; comprehensive executive health exams; drug screening; vaccinations; return-to-work exams; fitness for duty exams, commercial driver medical certification and other services related to City of Santa Monica's employment related medical examinations. Discussion For many years, the City of Santa Monica used the services of the Center for Health Enhancement at Saint John's Health Center for pre-employment and employee medical examinations. In 2004, the Human Resources Department conducted a request for 1 proposal in order to conduct a competitive bid process and solicit other viable medical facilities which the City could use. The Department chose the Santa Monica Bay Physicians as outlined in the Contractor/Consultant Selection section below. At the time, a contract was not finalized. However, based on the services rendered and current invoices received to date, the total amount owed to the Santa Monica Bay Physicians is expected to exceed the $70,000 City Manager approval threshold. The estimated annual expenditure for services provided by Santa Monica Bay Physicians is not expected to exceed $250,000 per year for Fiscal Years 2007-08 and 2008-09. The projection is based on past expenditures with an added 10% contingency. Contractor/Consultant Selection Staff issued a Request for Proposal to several local medical providers in 2004. Three proposals were submitted and evaluated. Medical facilities that submitted proposals included the Offices of Joseph Knotz, M.D., the Center for Health Enhancement at Saint John's Health Center and Santa Monica Bay Physicians. During the review and selection process of the proposals, the Santa Monica Bay Physicians merged and acquired the Center for Health Enhancement. The review indicated that the Offices of Joseph Knotz, M.D. did not have the staffing necessary to meet the City's needs and did not have the facilities that would enable the City to comply with DOL Drug Testing requirements for employees holding a Class A or Class B driver's license. Therefore, the City of Santa Monica only had one viable medical facility that could provide the necessary services, which was Santa Monica Bay Physicians Medical Group. Staff also recommended and selected Santa Monica Bay Physicians Medical Group as the best bidder based on their price, quality of service offered, and that the physicians at Santa Monica Bay Physicians Medical Group are predominately based in Santa Monica and the Westside and closely affiliated with Saint John's Health Center. Additionally, having taken over the Center for Health Enhancement at Saint John's Health Center, Santa Monica Bay Physicians Medical Group possessed an institutional knowledge of the City's administration of medical examination. 2 Financial Impact and Budget Actions Total expenditures for medical care services are not expected to exceed $500,000 during the two-year term of the professional services agreement and will be charged to various departmental budgets/accounts as services are rendered. Prepared by: Karen Bancroft, Director of Human Resources Approved: Forwarded to Council: 3 Reference Contract No. 8881 (CCS).