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
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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.
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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:
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Reference Contract
No. 8881 (CCS).