Report to Mayor and City Council
Tuesday, February 18, 2020
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES BETWEEN THE CITY OF CARSON AND OCCUPATIONAL HEALTH CENTERS (CITY COUNCIL)
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I. SUMMARY
The purpose of this item is to approve a second amendment to a contract with Occupational Health Centers of California (“OHCC”) a subsidiary or “managed professional entity” of Concentra, to increase the term and compensation to the agreement.
The contract was originally approved in early 2017 with U.S. HealthWorks. In early 2018, U.S. HealthWorks was acquired by a company called Concentra and then assigned to OHCC, a subsidiary or “managed professional entity” of Concentra. The City approved the assignment in Amendment No. 1.
Approval of the proposed Amendment No. 2 would extend the contract by an additional year to February 27, 2021, allowing continued performance of the services under the contract without interruption.
II. RECOMMENDATION
Recommendation
1. APPROVE Amendment No. 2 to Agreement for Contract Services by and between the City of Carson and Occupational Health Centers of California, a Medical Corporation, formerly U.S. Healthworks Medical Group, extending the term of the agreement by one additional year, from February 28, 2020 to February 27, 2021, and increasing the contact sum by an additional $20,000, from $75,000 to $95,000.
2. AUTHORIZE the Mayor to execute the Agreement following approval as to form by the City Attorney.
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III. ALTERNATIVES
1. DO NOT APPROVE the Agreement.
2. TAKE any other action the City Council deems appropriate, consistent with the requirements of law.
IV. BACKGROUND
The City entered into the Agreement with U.S. HealthWorks Medical Group on February 28, 2017, whereby U.S. HealthWorks agreed to provide certain medical services to the City in the areas of employment related drug testing, medical services and treatment of work-related injuries/illnesses for three (3) years for a Contract Sum of $75,000, with the option to extend said term for two (2) additional one (1) year periods. Amendment No. 1 approved an assignment of the contract to OHCC.
The proposed Amendment No. 2 would amend the Agreement extending the term of the agreement by one additional year, from February 28, 2020 to February 27, 2021, and increase the contract sum by $20,000, from $75,000 to $95,000.
V. FISCAL IMPACT
The fiscal impact is $20,000 over the course of one year.
VI. EXHIBITS
1. Occupational Health Centers of California Contract Amendment No. 2 (pgs.4-10)
2. Occupational Health Centers of California Contract Amendment No. 1 (pgs 11-26)
3. U.S. Healthworks Contract Agreement (pgs 27-56)
Prepared by: Faye Moseley, Director of Human Resources & Risk Management