REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 2 with Life Scan Wellness Center for Occupational Medical Services for Santa Clara Fire Department Personnel
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Fire Department is required by Occupational Safety and Health Administration (OSHA) and recommended by National Fire Protection Association (NFPA), to provide annual medical evaluations of its sworn personnel. Some of the required and recommended exams include audiogram, spirometry, bloodborne pathogen testing, respiratory clearance, cardiac stress tests, cancer screening including fecal occult screening and fitness evaluations. The department has been providing these annual medical evaluations for over 30 years.
In June 2022, the city executed an agreement with Life Scan Wellness (Life Scan) for occupational medical services (Attachment 1). Under this agreement, Life Scan provides the annual occupational physical exams for Fire Department sworn personnel for a maximum compensation not-to-exceed $100,000 through April 30, 2023. In April 2023, Amendment No. 1 was executed to extend the term of the agreement through April 30, 2024, and increase compensation by $138,547 ($116,861 for annual physicals plus $21,686 in contingency) for a revised maximum compensation not-to-exceed $238,547 (Attachment 2).
When the City entered into the original agreement, staff leveraged the City of Modesto’s Request for Proposals (RFP) conducted for fire medical services. City Code Section 2.105.270(d) states that the City may, without observing competitive procurement requirements, contract directly with a vendor at a price and on terms obtained through a competitive bidding process of another public agency, even if the City has not joined with the public agency in such competitive process or purchase. Any such competitive process shall meet or exceed the competitive bidding process of the City. Three proposers responded to the City of Modesto’s RFP and the two highest ranked proposers were awarded contracts, Life Scan and OCCU-MED. Upon review of the two proposals Life Scan’s pricing was determined to be reasonable and competitive. Life Scan’s pricing for the annual exam includes additional testing for which OCCU-MED charged separately.
DISCUSSION
Amendment No. 2 to the agreement (Attachment 3) will extend the term through April 30, 2025, increasing the compensation by $138,880 for a revised maximum compensation not-to-exceed $377,427. This amendment also provides for a one-year option to extend the term through April 30, 2026, subject to the appropriation of funds.
Staff recommends for Life Scan continue to provide services specified herein and to align the term of the executed agreement with the term of the City of Modesto’s executed agreement with Life Scan. Under the subject Amendment, Life Scan will continue to provide occupational medical services for Fire Department personnel on an annual and as-needed basis as directed by the department.
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(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
Amendment No. 2 extends the term of the Life Scan agreement by one year (from May 1, 2024 to April 30, 2025) and increases the maximum compensation by $138,880 (from $238,547 to $377,427). The total contract amount over the three-year period of $377,427 includes $355,741 for annual exams and $21,686 as a contingency. Funding for annual exams is included in the Fire Department budget. The FY 2024/25 Proposed Operating Budget includes $148,898 for this service, which includes $138,880 for annual physicals and $10,018 for contingency.
Amendment No. 2 also includes an option to extend the term of the agreement for one additional year through April 30, 2026, subject to the appropriation of funds. Should the City exercise that option, price adjustments may be considered by the City and shall not exceed the Consumer Price Index (CPI) average of the preceding 12 months. Staff assumes a maximum increase of 5% for the option period, which would increase the maximum compensation by $145,767 (from $377,427 to $523,194) for FY2025/26.
COORDINATION
This report has been coordinated with the Finance Department and the 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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute Amendment No. 2 with Life Scan Wellness Center for occupational medical services for Fire Department personnel to increase the amount of the agreement by $138,880 and to extend the term of the agreement through April 30, 2025, for a revised not-to-exceed maximum compensation of $377,427; and
2. Authorize the City Manager to exercise an optional extension for one additional year through April 30, 2026, pursuant to the terms and limitations of the Second Revised Exhibit B1, subject to the appropriation of funds, and in a form approved by the City Attorney.
Staff
Reviewed by: Jeremy Ray, Acting Fire Chief
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Agreement with Life Scan Wellness
2. Amendment No. 1 with Life Scan Wellness
3. Amendment No. 2 with Life Scan Wellness