Report to Mayor and City Council
Tuesday, October 18, 2016
Consent
SUBJECT:
Title
APPROVE AMENDMENT NO. 2 TO THE WESTERN MEDICAL GROUP INC. CONTRACT (CITY COUNCIL)
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I. SUMMARY
The City maintains a contract with a medical services provider to provide post job offer medical examinations and medical treatment for employees that suffer on the job injuries. The City currently contracts with Western Medical Group Inc. for these services and a contract extension is needed to continue to obtain these important services. The contract extension (Exhibit No. 1) is being presented for approval.
II. RECOMMENDATION
Recommendation
1. APPROVE the amendment No.2 of the contract with Western Medical Group Inc.
2. AUTHORIZE the Mayor to execute the amendment to the Western Medical Group Inc. contract after approval as to form by the City Attorney.
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III. ALTERNATIVES
The City Council may take any other action deemed appropriate.
IV. BACKGROUND
Western Medical Group Inc. performs post job offer medical examinations and drug screen testing. They also perform Department of Motor Vehicle physical examinations and Department of Transportation random drug and alcohol testing. The City’s medical provider also provides assessment and treatment of employees’ work related injuries including physical therapy.
On July 1, 2008, the City awarded a three-year contract to Western Medical Group Inc. with the City’s right and discretion to extend the term of the agreement for up to a maximum of two (2) one-year extended terms. The City maintained and exercised the full term and extended terms of the agreement and thereafter opted to amend the contract for an additional three-year term from May 1, 2013 through April 30, 2016.
Since there are no more extensions left in this contract, the City must solicit new bids for these services. However, because these services are essential to City functions and are needed on an on-going basis, City staff, with the concurrence of the City Manager, have determined that an emergency situation exists and recommend that this contract be temporarily extended until February 28, 2017, without soliciting new bids, as allowed by the Carson Municipal Code section 2604(b). This extension will ensure that the City continues to receive necessary services during the time that it will take staff to solicit new bids for the services. The proposed Second Amendment to the contract therefore has an effective date of May 1, 2016, to ensure that the contractor is compensated for services performed since that time and has a termination date of February 28, 2017. The amendment establishes a not-to-exceed amount of $55,000 for this time period.
A second contract extension is needed to continue to provide these essential and mandated medical services to City employees. Western Medical Group Inc. agreed to maintain the same terms and conditions of the original contract. Consequently, the contract extension is being presented for approval.
V. FISCAL IMPACT
Funds for this service were included in the FY 2016/17 budget.
VI. EXHIBITS
1. Contract Amendment No. 2 (pgs. 3-7)
2. Contract Amendment No. 1 (pg. 8)
3. Contract with Western Medical Group Inc. (pgs. 9-27)
Prepared by: Dr. Gail A. Dixon-McMahon, Director of Human Resources and Risk Management