City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
20-563 Agenda Date: 8/18/2020
REPORT TO COUNCIL
SUBJECT
Action on Amendment No. 2 to the Agreement for Performance of Services with The Permanente Medical Group, Inc. [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure]
BACKGROUND
Since 1999 the Santa Clara Fire Department has had an agreement with The Permanente Medical Group, Inc. for professional medical services for public safety employees. The Occupational Health and Safety Services Division of the Permanente Medical Group, Inc. has extensive experience and knowledge of the Occupational Safety and Health Administration (OSHA) Standard 190.156 - Fire Brigades, OSHA Standard 1910.134 - Respiratory Protection, and the National Fire Protection Agency (NFPA) Standard on Comprehensive Occupational Medical Program for Fire Departments (NFPA 1582). These guidelines and standards outline the required medical services for public safety employees.
The Permanente Medical Group, Inc. has been providing services, which include approximately 150 annual or periodic physical exams, evaluations, vaccinations, as well as respirator evaluations, mandated under OSHA Standard 1910.134, for sworn Fire Department employees and members of the Volunteer Reserve Division. In addition, The Permanente Medical Group, Inc. also provides new hire physical clearances for firefighter candidates. The services provided to the City each year can vary greatly based on the number and the extent of on-duty injuries, staffing, and clinical indications; therefore, the not-to-exceed amount included in the agreement is based on an average of expenditures in recent fiscal years plus an allowance for additional procedures that are frequently added due to State and Federal regulatory requirements.
DISCUSSION
The original agreement was for a three-year term ending on August 31, 2020. Kaiser has agreed to lock in current rates for five years, therefore staff recommends extending the agreement by five years, ending on August 31, 2025 and increasing maximum compensation by $266,000 for a revised maximum compensation of $600,000. The maximum compensation amount is an estimate based on the anticipated usage of services over the life of the agreement.
The services provided by The Permanente Medical Group, Inc. are specialized services from licensed professionals. This recommendation meets the competitive proposal exception in Section
2.105.330 (e)(1) of the City Code, which states “Regardless of contract value, competitive proposals are encouraged but not required for contracts for specialized services from licensed professionals
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California City of Santa Clara Printed on 8/12/2020Page 1 of 2
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20-563 Agenda Date: 8/18/2020
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. 2 extends the term of the agreement by five years ending on August 31, 2025 and increases the maximum compensation by $266,000 for a revised not-to-exceed maximum compensation of $600,000, subject to the appropriation of funds. Annual funding is included in the Fire Department’s General Fund operating budget for this service.
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 [email protected] <mailto:[email protected]>.
RECOMMENDATION
1. Authorize the City Manager to execute Amendment No. 2 to the Agreement with The Permanente Medical Group, Inc. for Professional Medical Services for Public Safety Employees to increase the amount of the agreement by $266,000 and to extend the term of the agreement through August 31, 2025 for a revised not-to-exceed maximum compensation of $600,000; and
2. Authorize the City Manager to execute amendments over the term of the agreement in the event that the demand for services is greater than anticipated, or additional services are required, subject to the same terms and conditions of the Agreement and the appropriation of funds.
Reviewed by: Ruben Torres, Fire Chief
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Amendment No. 2
2. Amendment No. 1
3. Original Agreement for Performance of Services with The Permanente Medical Group, Inc.
City of Santa Clara Printed on 8/12/2020Page 2 of 2
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Ebix Insurance No. S200002136
AMENDMENT NO. 2
TO THE AGREEMENT FOR THE PERFORMANCE OF SERVICES
BETWEEN THE
CITY OF SANTA CLARA, CALIFORNIA,
AND
THE PERMANENTE MEDICAL GROUP, INC
PREAMBLE
This agreement ("Amendment No. 2") is entered into between the City of Santa Clara, California, a chartered California municipal corporation (City) and The Permanence Medical Group, Inc., a California corporation (Contractor). City and Contractor may be referred to individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement."
RECITALS
A. The Parties previously entered into an agreement entitled "Agreement for the Performance of Services by and between the City of Santa Clara, California, and the Permanent Medical Group, Inc.", dated September 14, 2017 (Agreement); B. The Agreement was previously amended by Amendment No. 1, dated November 18, 2019 and is again amended by this Amendment No. 2. The Agreement and all previous amendments are collectively referred to herein as the "Agreement as Amended"; and
C. The Parties entered into the Agreement as Amended for the purpose of having Contractor provide professional medical services for public safety employees, and the Parties now wish to amend the Agreement as Amended to extend the term for an additional five (5) years through August 31, 2025 for a revised not-to- exceed compensation of $600,000 and revise the schedule of fees.
NOW, THEREFORE, the Parties agree as follows:
AMENDMENT TERMS AND CONDITIONS
1. Section 5 of the Agreement as Amended, entitled "Term of Agreement" is amended to read as follows:
Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement, the term of this Agreement as Amended shall begin Effective Date of this Agreement and terminate on August 31, 2025.
Amendment No. 2 to Agreement/The Permanente Medical Group Page 1 Rev. 10/25/19
2. Section 11 of the Agreement as Amended, entitled "Compensation and Payment" is amended to read as follows:
In consideration for Contractor's complete performance of Services, City shall pay Contractor for all materials provided and services rendered by Contractor at the rate per hour for labor and rate per unit for materials as outlined in Second Revised Exhibit B, entitled "Schedule of Fees."
Contractor will bill City on a monthly basis for Services provided by Contractor during the preceding month, subject to verification by City. City will pay Contractor within thirty (30) days of City's receipt of invoice.
3. Section 12 of the Agreement as Amended, entitled "Termination of Agreement' is amended to read as follows:
A. Termination for Convenience. City shall have the right to terminate this Agreement, without cause or penalty, by giving not less than thirty (30) days' prior written notice to Contractor.
B. Termination for Default. If Contractor fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, City may terminate this Agreement immediately upon written notice to contractor.
C. Upon termination, each Party shall assist the other in arranging an orderly transfer and close-out of services. As soon as possible following the notice of termination, but no later than ten (10) days after the notice of termination, Contractor will deliver to City all City information or material that Contractor has in its possession.
4. Exhibit B of the Agreement as Amendment, entitled "First Amended Fee Schedule" is hereby amended to read as show in Second Revised Exhibit B, attached hereto and incorporated into this Amendment No. 2.
5. Except as set forth herein, all other terms and conditions of the Agreement as Amended shall remain in full force and effect. In case of a conflict in the terms of the Agreement as Amended and this Amendment No. 2, the provisions of this Amendment No. 2 shall control.
The Parties acknowledge and accept the terms and conditions of this Amendment No. 2 as evidenced by the following signatures of their duly authorized representatives.
Amendment No. 2 to Agreement/The Permanente Medical Group Page 2 Rev. 10/25/2019
CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
Approved as to Form: Dated: ~ ~ I ~~
1 ~ '
BRIAN D E ~; DEANN J SANTANA
City Attorney City Manager
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
"CITY"
THE PERMANENTE MEDICAL GROUP
a California corporation
Dated: 06/17/2020
By (Signature): ~~.~y~_ k~~'~- M~
Name: L avna va Kaitar. MD
Medical Director KPOJ Occupational Health &
Title: Safety Services - NCAL
1800 Harrison Street, 9th Floor
Principal Place of Oakland, CA 94612
Business Address: Attention: Sales Manaaer
Email Address: [email protected]
Telephone: (510)625-4143
Fax: ( ) N/A
"CONTRACTOR"
Amendment No. 2 to Agreement/The Permanente Medical Group Page 3 Rev. 10/25/2019
SECOND REVISED EXHIBIT B
SCHEDULE OF FEES
Consultant shall provide a schedule of rates and fees which includes all billing amounts and costs as follows (if applicable), such as:
OCCUPATIONAL HEALTH AND SAFETY SERVICES TO BE PROVIDED TO THE CITY OF SANTA CLARA FIRE DEPARTMENT.
FIREFIGHTER PREPLACEMENT EXAM (FFPP)
Code # Description of Service Price
300398 Firefighter Physical Exam $127.00
92552 Audiogram, screening $54.00
94010 Spirometry $60.00
85025 CBC with automated differential $20.00
80053 Chem Comprehensive Panel $41.00
36415 Venipuncture $15.00
71046 Chest X-Rays (2 views, PA &Lateral) $75.00.
300422 PPD, 2 step, 2 placements and readings
-OR-
$30.00
86480 QuantiFERON $145.00
93000 EKG, resting $50.00
93015 Cardiac Stress Test with Treadmill $230.00
86706 Titer: Hepatitis B Surface Antibody (HBsAb) $35.00 86704 Titer: Hepatitis B Core Antibody (HBcAb) $31.00
86803 Titer: Hepatitis C Antibody Screen $56.00
As Employer Requested:
300413 Form completion (2 or more pages for DMV/DOT Exam If done in conjunction with the Firefighter Physical
Exam durin the same visit
$25.00
300420 Collection for Drug Scree Preferred Alliance "Quick Test"
Billed by Preferred
Alliance
As Clinically Indicated:
90746 Vaccine: Hepatitis B, may need series of 3 injections $130.00/injection 90632 Vaccine: Hepatitis A, may need series of 2 injections $114.00/injection 90636 Twinrix (Hep B and Hep A combo), series of 3
in~ections
$191.00/injection
90707 Vaccine: Measles Mumps Rubella (MMR), may need
series of 2 in'ections
$103.00/injection
90716 Vaccine: Varivax (Varicella or Chickenpox), may need series of 2 in'ections
$152.00/injection
90715 Vaccine: Tdap
—OR—
$63.00
Amendment No. 2 to Agreement/The Permanente Medical Group Page 4 Rev. 10/25/2019
Code # Description of Service Price
90714 Vaccine: Td $34.00
90658 Vaccine: Influenza (when seasonally available) $20.00 86735 Titer: Mumps Antibody Screen $35.00
86762 Titer: Rubella Antibody Screen (German Measles) $35.00 86765 Titer: Rubeola Antibody Screen (Measles) $35.00
86787 Titer: Varicella (Varicella or Chickenpox) Antibody Screen
$35.00
86708 Titer: Hepatitis A IgG Antibody (HAAb) $40.00
81001 Urinalysis with microscopy $16.00
86580 PPD, 1 step, placement and reading $20.00
71045 Chest X-Ray, 1 view $55.00
71046 Chest X-Ray, 2 views $75.00
300408 Physician Consultation, each 15 minutes $64.00/15 mins
FIREFIGHTER ANNUAUPERIODIC EXAM (FFANN)
Code # Description of Service Price
300398 Firefighter Physical Exam $127.00
92552 Audiogram, screening $54.00
94010 Spirometry $60.00
85025 CBC with automated differential $20.00
80053 Chem Comprehensive Panel $41.00
36415 Venipuncture $15.00
86480 QuantiFERON $145.00
93000 EKG, resting $50.00
93015 Cardiac Stress Test with Treadmill $230.00
As Employer Requested:
300413 Form completion (2 or more pages for DMV/DOT Exam If done in conjunction with the Firefighter Physical
Exam durin the same visit
$25.00
As Clinically Indicated:
71045 Chest X-Ray, 1 view $55.00
71046 Chest X-Ray, 2 views $75.00
81001 Urinalysis with microscopy $16.00
86580 PPD, 1 step, placement and reading $20.00
86706 Titer: Hepatitis B Surface Antibody (HBsAb) $35.00 90746 Vaccine: Hepatitis B, may need series of 3 injections $130.00/injection 90632 Vaccine: Hepatitis A, may need series of 2 injections $114.00/injection 90636 Twinrix (Hep B and Hep A combo), series of 3
in~ections
$191.00/injection
90707 Vaccine' Measles Mumps Rubella (MMR), may need
series of 2 in~ections
$103.00/injection
Amendment No. 2 to Agreement/The Permanente Medical Group Page 5 Rev. 10/25/2019
Code # Description of Service Price
90716 Vaccine: Varivax (Varicella or Chickenpox), may need series of 2 in'ections
$152.00/injection
90715 Vaccine: Tdap
—OR-
$63.00
90714 Vaccine: Td $34.00
90658 Vaccine: Influenza (when seasonally available) $20.00 86735 Titer: Mumps Antibody Screen $35.00
86762 Titer: Rubella Antibody Screen (German Measles) $35.00 86765 Titer: Rubeola Antibody Screen (Measles) $35.00
86787 Titer: Varicella (Varice►la or Chickenpox) Antibody Screen
$35.00
86708 Titer: Hepatitis A IgG Antibody (HAAb) $40.00
82274 Fecal Immunochemical Test —FIT Test $35.00
84152 PSA; Prostate Specific Antigen $71.00
300408 Physician Consultation, each 15 minutes $64.00/15 mins
DMV/DOT EXAM (DMV/DOT)
Code # Description of Service Price
300390 DMV/DOT Physical Exam $115.00
RESPIRATOR BASELINE/PERIODIC (RESP)
Code # Description of Service Price
300415 Review of OSHA Respirator Questionnaire by MD/NP/RN $35.00 As Clinically Indicated:
300391 Respirator Clearance Physical Exam $64.00
94010 Spirometry $60.00
71046 Chest X-Ray (2 views) $75.00
93000 EKG, resting $50.00
93015 Cardiac Stress Test with Treadmill $230.00
300408 Physician Consultation, each 15 minutes $64.00/15 mins
FITNESS FOR DUTY/RETURN TO WORK (FFD/RTW)
Code # Description of Service Price
300397 Fitness for Duty Exam $115.00
As Clinically Indicated:
300408 Physician Consultation, each 15 minutes $64.00/15 mins Amendment No. 2 to Agreement/The Permanente Medical Group Page 6 Rev. 10/25/2019
VACCINATION ONLY (VAX)
Code # Description of Service Price
300406 History/Review of Tests/Brief Screen - No Physical Exam
$42.00
90746 Vaccine: Hepatitis B, may need series of 3 injections $130.00/injection 90632 Vaccine: Hepatitis A, may need series of 2 injections $114.00/injection 90636 Twinrix (Hep B and Hep A combo), series of 3
in~ections
$191.00/injection
90707 Vaccine: Measles Mumps Rubella (MMR), may need
series of 2 in~ections
$103.00/injection
90716 Vaccine: Varivax (Varicella or Chickenpox), may need series of 2 in'ections
$152.00/injection
90715 Vaccine: Tdap
—OR-
$63.00
90714 Vaccine: Td $34.00
90658 Vaccine: Influenza (when seasonally available) $20.00
LABORATORY ONLY (LAB)
Code # Description of Service Price
300406 History/Review of Tests/Brief Screen - No Physical Exam
$42.00
86706 Titer: Hepatitis B Surface Antibody (HBsAb) $35.00 86708 Titer: Hepatitis A IgG Antibody (HAAb) $40.00
86735 Titer: Mumps Antibody Screen $35.00
86762 Titer: Rubella Antibody Screen (German Measles) $35.00 86765 Titer: Rubeola Antibody Screen (Measles) $35.00
86787 Titer: Varicella (Varicella or Chickenpox) Antibody Screen
$35.00
36415 Venipuncture $15.00
TB CLEARANCE QUANTIFERON (PPD/TB CLEARANCE)
Code # Description of Service Price
86480 QuantiFERON $145.00
36415 Venipuncture $15.00
As Clinically Indicated:
71045 Chest X-Ray, 1 view $55.00
71046 Chest X-Ray, 2 views $75.00
99211 Brief encounter with non-MD Provider (PPD-Review of S m toms Form
$25.00
Amendment No. 2 to Agreement/The Permanente Medical Group Page 1 Rev. 10/25/19
In no event shall the amount billed to City by Contractor for services under this Agreement exceed Six Hundred Thousand Dollars ($600,000) for the term of this Agreement, subject to the appropriation of funds.
Amendment No. 2 to Agreement/The Permanente Medical Group Page 2 Rev. 10/25/2019