REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 3 to Agreement with The Permanente Medical Group, Inc. for Professional Medical Services for Public Safety Employees
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Since 1999, The Permanente Medical Group, Inc. (Permanente Medical Group) has provided occupational medical services for public safety employees of the Santa Clara Fire Department. These services are required to maintain compliance with Occupational Safety and Health Administration (OSHA) Standard 190.156 - Fire Brigades, OSHA Standard 1910.134 - Respiratory Protection, and National Fire Protection Association (NFPA) 1582 - Standard on Comprehensive Occupational Medical Program for Fire Departments.
The Occupational Health and Safety Services Division of the Permanente Medical Group has extensive experience and knowledge in applying and meeting these standards. Under the agreement, they provide periodic physical examinations, medical evaluations, vaccinations, and respiratory evaluations. They also conduct as-needed physical clearances for firefighter candidates. The services provided can vary year to year based on the number and the extent of on-duty injuries, staffing, and clinical indications.
The agreement with Permanente Medical Group (Attachment 1) was approved by City Council on September 12, 2017. The term of the agreement was for three years through August 31, 2020, with a not-to-exceed maximum compensation of $334,000.
In 2019, Amendment No. 1 (Attachment 2) was executed to revise the fee schedule to reflect updates to purified protein derivative (PPD) testing and to add additional services, including physician time and QuantiFERON, a blood test for tuberculosis.
In 2020, Amendment No. 2 (Attachment 3) was approved by City Council to extend the term of the agreement for an additional five years through August 31, 2025, and to increase the maximum compensation to $600,000.
DISCUSSION
The Santa Clara Fire Department continues to require occupational medical services from Permanente Medical Group to support regulatory compliance and the health and safety of its personnel. While the department primarily works with LifeScan Wellness to provide comprehensive physical exams for sworn personnel, these exams are conducted during a specific period in July. For firefighter candidates, volunteer reserves, and personnel who are unable to attend LifeScan’s scheduled exams, the department relies on Permanente Medical Group to provide make-up medicals and candidate clearances. The group also provides convenient access throughout Northern California, which allows personnel to attend appointments while on-duty.
Staff recommends executing Amendment No. 3 (Attachment 4) to extend the agreement with Permanente Medical Group for an additional five years through August 31, 2030, with no increase to the not-to-exceed maximum compensation of $600,000. The agreement is primarily used to supplement comprehensive physical exam services for sworn personnel and there is sufficient contract capacity remaining.
Additionally, Permanente Medical Group currently provides services to the City under the worker’s compensation program, a separate agreement with the City. Maintaining the agreement with Permanente Medical Group ensures consistency and avoids potential disruptions in critical evaluations for firefighter personnel.
This recommendation is made under the authority of Santa Clara City Code Section 2.105.280(b)(4) which allows for an exemption from the City’s purchasing requirements when a service is considered unique such that requirements for competitive procurement are contrary to public interest.
For the reasons outlined above, a competitive procurement process would not serve the City’s best interest and could disrupt the efficiency and continuity of care required for safety personnel.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(5), in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes to the environment.
FISCAL IMPACT
Amendment No. 3 does not increase the not-to-exceed maximum compensation amount of $600,000. Funding to support the proposed agreement through its extended five-year term, ending August 31, 2030, is available in the Fire Operating Budget, subject to the annual appropriation of funds.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute Amendment No. 3 to the agreement with The Permanente Medical Group, Inc. for Professional Medical Services to extend the term through August 31, 2030, subject to appropriation of funds and review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to negotiate and execute future Amendments making minor modifications to the agreement and to extend the term, if needed, with no increase to the not-to-exceed maximum compensation, subject to review and approval as to form by the City Attorney.
Staff
Reviewed by: Ruben Torres, Fire Chief
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Original Agreement with The Permanente Medical Group, Inc. and Agenda Item #12.B4
2. Amendment No. 1 to Agreement with The Permanente Medical Group, Inc.
3. RTC 20-563 and Amendment No. 2 to Agreement with The Permanente Medical Group, Inc.
4. Amendment No. 3 to Agreement with The Permanente Medical Group, Inc. DRAFT