SR 08-23-2022 5G
City Council
Report
City Council Meeting: August 23, 2022
Agenda Item: 5.G
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To: Mayor and City Council
From: David White, City Manager, City Manager's Office
Subject: Authorize the City Manager to negotiate and execute an agreement with Dr.
Fawad Zafar Khan dba USMD Direct for Citywide Employee COVID Testing
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an agreement with Dr. Fawad Zafar Khan dba USMD Direct for city-wide,
employee COVID testing. This recommended award is made as an exception to the
competitive bidding process pursuant to Section 2.24.250 (i) and is for a total amount
not to exceed $115,000 with no appropriations for future funding.
Summary
The City’s Emergency Operations Center, in response to the COVID-19 pandemic,
implemented testing protocols for first responders, Public Works Department personnel,
and staff with facilities where the COVID-19 virus was detected. Additionally, in
alignment with CalOSHA and Los Angeles Department of Public Health orders, persons
who are present within a facility where a COVID-19 outbreak was detected, were
provided an opportunity to conduct testing on-site at no cost to the employee.
Under authority granted under emergency orders, the City engaged the services of
Fawad Zafar Khan M.D., dba USMD Direct (“USMD”) to provide emergency COVID-19
testing because their operation could provide all services required to respond to the
COVID-19 pandemic, the City had an existing relationship with the vendor, and they
could deploy to City facilities within 24-hours upon request. Staff now seeks authority to
enter a contract with USMD to memorialize the scope of work provided by the vendor
starting in January 2021 and concluding December 2021. The contract authority will
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provide staff the means to seek Federal Emergency Management Agency (FEMA)
reimbursements for the costs totaling $115,000.
Discussion
Similar to many other corporations and public agencies, the City of Santa Monica was
required to maintain essential services and conduct emergency operations during the
COVID -19 pandemic. The City instituted various COVID-19 testing options for staff to
ensure operational continuity of vital City services, as well as enhance public trust that
accessing such services would be safe. Following the recommendations of medical
professionals, CalOSHA regulations, and local Health Officer Orders, the City
implemented various options for COVID-19 testing.
Under the terms of the City’s emergency testing protocols, all employees who were
identified by the Designated Infection Control Officer, Safety Officer, or a close contract
as defined by public health guidance were permitted to access COVID-19 testing to
continue working, return to work, or confirm an on-site infection. To facilitate this
testing, staff sought the services of USMD, which provided alternative medical services
for other City departments.
USMD provided administration, processing, and reporting associated with the COVID-
19 tests which were performed by a registered nurse. The reports provided to staff
supported the Safety Officer and Emergency Operations Center staff with contact
tracing and infection control. USMD provided on-site testing and laboratory processing
for personnel who have been exposed to the COVID-19 virus through the course of their
work.
The City administered routine testing at several times and at different City locations
throughout 2021. The City deployed approximately 1,100 tests to employees who have
sought testing during the height of the pandemic. The cost for these services
throughout 2021 was exactly $111,670.00 and staff anticipate the $115,000 authority
will provide authorization for all testing services and provide contingencies for any
missing invoices not provided by the vendor. The City remains eligible for
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reimbursement for qualifying expenses from the Federal Emergency Management
Agency (FEMA) associated with the COVID-19 response.
Due to the expedited timeline, staff were unable to perform a traditional competitive
bidding process; however, staff did conduct an informal cost assessment and
negotiated the cost with the selected vendor. Staff now seeks Council authority to enter
a retroactive contract with USMD as well as for Council to exempt this purchase from
the City’s competitive bidding process due to the urgency of the service to keep the
City’s workplace and public services safe.
FEMA continues to reimburse eligible cost at 100 percent from the beginning of the
COVID-19 incident through July 1, 2022. These costs will be submitted for FEMA
reimbursement to the City’s General Fund. All reimbursements received from the
FEMA will be allocated to the City’s General Fund. Timelines associated with receiving
reimbursement may be extended and will depend on requests for information and grant
operations being conducted by FEMA.
Financial Impacts and Budget Actions
Staff seeks authority to retroactively approve funds which have been utilized from the
General Fund to award a retroactive contract to USMD for COVID-19 testing and
related services for City employees.
Contract/Agreement/Purchase Order Request
Expenses incurred through
2021
Department/CIP Account # Total Contract Amount
$115,000 01200014.553150 $115,000
Staff will seek reimbursement from FEMA for all qualifying COVID expenditures for as
long as allowed. All reimbursements received from FEMA will reimburse the City’s
General Fund. Staff will submit applications to FEMA for reimbursement; however, due
to processing delays at the agency, reimbursement funds may be received by the City
in later fiscal periods
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Prepared By: Steven Torrence, Emergency Services Administrator
Approved
Forwarded to Council
Attachments:
A. Signed Oaks Form for Dr. Fawad Zafar Khan dba USMD Direct
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CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
DocuSign Envelope ID: F28A4494-9A38-41AA-A466-233786CC5257
5.G.a
Packet Pg. 93 Attachment: Signed Oaks Form for Dr. Fawad Zafar Khan dba USMD Direct (5263 : City COVID Testing Services with USMD Direct)
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
6/15/22
310-913-0019drkhan@usmddirect.com
CEOFawad Zafar-Khan
Fawad Zafar-Khan
Fawad Zafar-Khan, Sadia Zafar-Khan
USMDDirect, Inc.
DocuSign Envelope ID: F28A4494-9A38-41AA-A466-233786CC5257
5.G.a
Packet Pg. 94 Attachment: Signed Oaks Form for Dr. Fawad Zafar Khan dba USMD Direct (5263 : City COVID Testing Services with USMD Direct)