ADMINISTRATIVE REPORT
MEETING DATE: September 4, 2025 AGENDA CATEGORY: Consent – Agreements TO: Honorable Mayor and City Council
FROM: Christi Tenter, Human Resources Director
DATE: October 8, 2025
SUBJECT: City Physician Services Agreements for Medical Services
1. Agreement with ABC Occupational Medical Center, not to exceed $250,000, annually.
2. Agreement with Universal Occupational Inc., not to exceed $250,000, annually.
3. Agreement with Vernon C. Sorenson, M.D. DBA Memorial Occupational Medicine, not to exceed $250,000 annually.
RECOMMENDATION:
Staff recommends approval of the agreements.
BACKGROUND:
On June 23, 2025, a request for proposal for City Physician Services was published. The City Physician services include the following: pre-employment physicals; HAZMAT physicals; fitness for duty exams; and drug and alcohol testing. Currently the City utilizes two facilities, ABC Occupational Medical Center and Vernon C. Sorenson, M.D. DBA Memorial Occupational Medicine (herein Memorial Occupational Medicine), that hold the designation of City Physician and provide services. The current contract for both facilities is set to expire on November 1, 2025.
In response to the Request for Proposals, the City received three proposals from the following medical facilities: ABC Occupational Medical Center, Universal Occupational Inc., and Memorial Occupational Medicine.
The medical providers’ responses were reviewed to assess: access to services, customer service, adequacy of staff and facilities, and cost of services. As a result of the review, staff recommends selection of all three medical providers to accommodate the growth within our organization, and to best meet the City’s needs and requirements. The fees for services submitted with proposals are within a narrow range for all three providers. The terms of the agreements are for a four (4) year period, ending December 31, 2029, with an annual not to exceed amount of two hundred fifty thousand ($250,000) for each facility.
Staff recommends Council approve agreements with ABC Occupational Medical Center, Universal Occupational Inc., and Vernon C. Sorenson, M.D. DBA Memorial Occupational Medicine with annual fees not to exceed two hundred fifty thousand dollars ($250,000) per provider, not to exceed one million dollars ($1,000,000) through the term of each agreement.
FISCAL IMPACT:
The action to approve the agreements were included in the approved FY 25/26 budget.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
1. City Physician RFP 2025
2. ABC Occupational Agreement
3. Memorial Agreement
4. Universal Agreement