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SR 04-26-2016 3H City Council Report City Council Meeting: April 26, 2016 Agenda Item: 3.H To: Mayor and City Council From: Donna Peter, Director, Human Resources Department Subject: Award Agreement for Commercial Driver Medical Testing Services Recommended Action Staff recommends that the City Council: 1. Award Request for Proposal (RFP) #61 to the Southern California Permanente Medical Group, a California-based company, for commercial driver medical testing services; and 2. Authorize the City Manager to negotiate and execute an Agreement with Southern California Permanente Medical Group in an amount not to exceed $250,000 over a five-year period with future funding contingent on Council budget approval. Executive Summary Staff recently solicited proposals from local medical providers for commercial driver medical testing services. These ex drivers (e.g., Motor Coach Operators, Heavy Equipment Operators, etc.) meet the medical standards of the United States Department of Transportation for operating a commercial vehicle. Southern California Permanente Medical Group (Kaiser Permanente) provided the only response to the proposal. In light of this, staff verified the RFP was distributed to qualified firms and sought feedback on the limited response. This effort satisfied staff that reissuing the RFP would not attract additional proposals. the RFP and offered competitive pricing. As such, staff recommends the City pursue a five-year contract with Kaiser Permanente for an amount not to exceed $250,000. -Insurance Fund which is financed with contributions from all City Departments. Background The City employs over 400 commercial drivers in a variety of jobs ranging from bus drivers to sanitation truck operators and street sweepers. These drivers must be of license issuance and every two years thereafter for as long as the positions require a 1 of 4 Commercial Driver License. Westchester Medical Group (Westchester) has performed Testing Program (OMTP) provider. Discussion covers commercial driver medical testing, as well as pre-employment physicals, drug and alcohol screening, vaccinations, and other safety-related testing. In the spring of 2015, the City solicited proposals for OMTP provider services and subsequently awarded a new five-year contract to Westchester on July 14, 2015. During the selection process, Human Resources received feedback from City department representatives on the need to find a second medical provider closer to Santa Monica to miles away (El Segundo, CA), can take over an hour in each direction to access during peak commute times. Most departments are able to mitigate traffic delays of this nature by scheduling OMTP testing during non-peak commute windows. This presents challenges, however, for City operations like the Big Blue Bus (BBB) and the Resource Recovery and Recycling (RRR) Division of the Public Works Department. Both have limited scheduling flexibility and employ large numbers of commercial drivers. These factors, coupled with the frequency of testing (i.e., at least every two years), require BBB and RRR to regularly schedule commercial driver medical exams during peak commute windows and incur the resulting overtime costs and/or lost productivity. These arguments persuaded Human Resources to issue a follow-up OMTP RFP for commercial driver medical testing services only. Vendor/Consultant Selection On October 29, 2015, the City issued an RFP for commercial driver fitness medical advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 145 vendors were notified of the RFP, eight downloaded the RFP, and one firm responded. 2 of 4 Upon receiving only a single bid, staff verified the RFP was distributed to qualified firms and surveyed vendors for feedback. No vendors responded to the survey, but based on additional responses. Staff subsequently verified that Kaiser Permanente met the minimum requirements contained in the RFP. Specifically, they possess the requisite experience to perform commercial driver medical exams and come highly recommended by their references. Further, the facility designated to carry out the exams is located in the Culver City/Marina Del Rey area (roughly three miles closer -site parking. Finally, Kaiser schedule is flat throughout the five-year contract period and less costly than fees charged by Westchester). Also, as an added benefit, the City has the option of using may create opportunities for departments to schedule exams on the way to or from work. Consequently, staff recommends the City pursue a five-year agreement with Kaiser Permanente for a total amount not to exceed $250,000. Once the contract is in place, City departments subject to commercial driver medical testing requirements would have the option of using Kaiser Permanente or Westchester for these exams. Westchester driver medical testing required as part of pre-employment physicals. Financial Impacts and Budget Actions The agreement to be awarded to Southern California Permanente Medical Group (Kaiser Permanente) is for an amount not to exceed $250,000. Funds of $8,500 are available in the FY 2015-16 budget in the Finance Department. The agreement will be charged to account 59235.555060. Future year funding is contingent on Council budget approval. 3 of 4 Prepared By: Donna Peter, Director Approved Forwarded to Council Attachments: A. July 14, 2015 Staff Report (web link) 4 of 4 Reference: Agreement No. 10294 (CCS)