DEPARTMENT: Human Resources
DEPARTMENT HEAD: Lori Steward, Human Resources Director
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Gonzaba Medical Group Contract Amendment Month-to-Month Extension
SUMMARY:
This ordinance authorizes the City Manager or her designee to execute a contract amendment modifying and extending the agreement with Gonzaba Medical Group for a period of no longer than twelve (12) months, and an estimated amount of $250,000.00 for the administration and management of the City's occupational medical services for City employees and applicants. The current contract expired April 30, 2013, and the existing month-to-month extension ends August 31, 2015. The term of this month-to-month extension commences September 1, 2015 and ends on or before August 31, 2016. This extension request is necessary to allow adequate time to complete the current request for proposal and vendor selection processes.
BACKGROUND INFORMATION:
Since May 1, 2008, Gonzaba Medical Group (GMG) has administered and managed the City's occupational medical services pursuant to Ordinance Number 2008-05-01-0354. This ordinance authorized a contract with GMG for a period of three (3) years, beginning May 1, 2008, and ending on April 30, 2011, with two (2), one year options to extend. The GMG contract was amended to include post-accident drug and alcohol testing by Ordinance 2010-09-02-0755 on September 2, 2010. Ordinance Number 2011-04-14-0301 authorized the extension of contract with GMG to April 30, 2012, and Ordinance Number 2012-05-03-0329 authorized the second one year extension to April 30, 2013. Ordinance Number 2013-04-04-0234 authorized an additional month-to-month extension to August 31, 2013; Ordinance #2013-06-20-0471 authorized and amended the contract to extend the contract on a month-to-month basis, from September 1, 2013 through August, 2014: Ordinance Number 2014-08-21-0613 authorized and amended the contract on a month-to-month basis from September 1, 2014 through August 31, 2015.
ISSUE:
Execution of this contract amendment will allow the City to continue to retain a professional medical group to provide core occupational medical services, such as physical examinations and drug screenings, to City employees and applicants for a period of up to twelve (12) months, to allow adequate time for the request for proposal and vendor selection processes to be completed.
ALTERNATIVES:
The alternative of taking no action will discontinue providing occupational medical services to City employees beginning September 1, 2015 and would require numerous contractual relationships for services such as physical examinations and drug testing for new hires, promotional examinations for uniform employees, and random drug testing as required by Department of Transportation.
FISCAL IMPACT:
Funds are included in FY 2016 proposed budget for the administration and management of the City’s occupational medical services. The estimated annual amount for the twelve month period is $250,000.00 and is funded from the Employee Benefits Fund. The financial impact to FY 2015 is estimated at $25,000.00.
RECOMMENDATION:
Staff recommends approval of this ordinance to execute an amendment modifying and extending the Gonzaba Medical Group contract for a month-to-month period of up to twelve (12) months, beginning September 1, 2015 and ending on or before August 31, 2016.