City Council Report
City Council Meeting: January 25, 2022
Agenda Item: 3.E
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To: Mayor and City Council
From: David White, City Manager, City Manager's Office
Subject: Authorization of Contract with Mani Zadeh dba Los Angeles COVID Testing Corporation for COVID Testing and Associated Services for City Employees Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute an agreement with Mani Zadeh dba Los Angeles COVID Testing Corporation for city-wide, employee COVID testing. This recommended award is made as an exception to the competitive bidding process pursuant to SMMC sections 2.24.250 (i) and 2.24.240, and is for a total amount not to exceed $1,000,000 with future year funding contingent on Council budget approval.
Summary
On August 24, 2021, Santa Monica City Council approved a vaccine mandate for all City employees and members of City Boards and Commissions. This mandate includes the ability for City employees to seek an exemption to the mandate for legitimate medical or religion reasons. Exempt employees are required to undergo weekly COVID-19 testing in order to report for work. Additionally, in alignment with CalOSHA and Los Angeles Department of Public Health orders, persons who are present within a facility where a COVID-19 outbreak is detected, shall be provided an opportunity to conduct testing on-site and at no cost to the employee.
The City sought the services of Mani Zadeh dba Los Angeles COVID Testing Corporation (LA COVID Testing Corp.) on an emergency basis to provide this testing.
LA COVID Testing Corp. is used by other cities in Los Angeles County and provides needed testing services within the short timeline required by the City. Staff now seeks 2 of 4
authority to enter into a contract with LA COVID Testing Corp. to provide these ongoing services for an amount not to exceed $1,000,000 for one year. Staff will seek reimbursement from the Federal Emergency Management Administration (FEMA) for all qualifying costs associated with this service.
Discussion
Like many other corporations and public agencies, the City of Santa Monica instituted a vaccine mandate for all City employees and members of City Boards and Commissions.
The City instituted this mandate to ensure continuity of vital City services as well as enhance public trust that accessing such services will be safe. The City’s vaccine mandate required employees to show proof of full vaccination or have an approved, qualifying exemption by October 29, 2021.
Under the City’s vaccine mandate policy, all employees who are granted an exemption for a legitimate medical or religious reason must undergo weekly COVID-19 testing in order to report to work. To facilitate this testing, staff sought the services of LA COVID Testing Corp., which has provided testing for other cities and public agencies in the area. LA COVID Testing Corp. provides administration, processing, and reporting of tests administered by registered nursing staff to the employee, Safety Officer, Human Resources, and the selected Emergency Operations Center staff to assist with contact tracing. LA COVID Testing will provide on-site testing and laboratory processing for personnel who have been exposed to the COVID-19 virus through the course of their work or have an approved exemption from the COVID-19 Vaccine Policy. The City further requires the vendor to complete a COVID-19 Polymerase Chain Reaction (PCR) test, as this has been defined as the most accurate and effective test available.
Due to the expedited timeline and health and safety concerns, staff was unable to follow the traditional competitive solication process; however, staff did conduct an informal cost assessment with five qualified vendors within the region and were able to negotiate pricing with the selected vendor. Staff now seeks Council authority to enter into a contract with LA COVID Testing Corp. as well as for Council to exempt this procurement 3 of 4
from the City’s competitive process due to the urgency of the service to keep the City’s workplace and public services safe.
LA COVID Testing Corp. provides COVID-19 testing at several times and at different City locations each week. The City has approximately 220 employees who have sought and were granted exemptions. The cost for these services from November 1, 2021 to date is approximately $130,000 and it is anticipated that the $1,000,000 authority will provide testing services through the end of the fiscal year. The City remains eligible for reimbursement from the Federal Emergency Management Administration (FEMA) for qualifying expenses associated with our emergency response to COVID. FEMA is currently reimbursing 100 percent of eligible costs through April 2022, and this may be extended given the current case surge driven by the Omicron variant.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to award a contract with LA COVID Testing Corp. for COVID-19 testing and related services for City employees for one year.
Contract
FY 2021-22 Department/CIP Account # Total Contract Amount $1,000,000 01800004.525260 $1,000,000
Staff will continue to track all eligible costs associated with this project and seek reimbursement from FEMA for as long as allowed. All reimbursements received from FEMA will reimburse the City’s General Fund. Staff will submit project applications to FEMA for reimbursement; however, due to processing delays at the agency, reimbursement funds may be received by the City in later fiscal periods. 4 of 4
Prepared By: David White, City Manager
Approved Forwarded to Council
Attachments:
A. LACT_OaksInitiative_Signed
B. Written Comments