City Council
Report
City Council Meeting: August 23, 2022
Agenda Item: 5.G
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To: Mayor and City Council
From: David White, City Manager, City Manager's Office
Subject: Authorize the City Manager to negotiate and execute an agreement with Dr.
Fawad Zafar Khan dba USMD Direct for Citywide Employee COVID Testing Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute an agreement with Dr. Fawad Zafar Khan dba USMD Direct for city-wide, employee COVID testing. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (i) and is for a total amount not to exceed $115,000 with no appropriations for future funding.
Summary
The City’s Emergency Operations Center, in response to the COVID-19 pandemic, implemented testing protocols for first responders, Public Works Department personnel, and staff with facilities where the COVID-19 virus was detected. 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 was detected, were provided an opportunity to conduct testing on-site at no cost to the employee.
Under authority granted under emergency orders, the City engaged the services of Fawad Zafar Khan M.D., dba USMD Direct (“USMD”) to provide emergency COVID-19 testing because their operation could provide all services required to respond to the COVID-19 pandemic, the City had an existing relationship with the vendor, and they could deploy to City facilities within 24-hours upon request. Staff now seeks authority to enter a contract with USMD to memorialize the scope of work provided by the vendor starting in January 2021 and concluding December 2021. The contract authority will 2 of 4
provide staff the means to seek Federal Emergency Management Agency (FEMA) reimbursements for the costs totaling $115,000.
Discussion
Similar to many other corporations and public agencies, the City of Santa Monica was required to maintain essential services and conduct emergency operations during the COVID -19 pandemic. The City instituted various COVID-19 testing options for staff to ensure operational continuity of vital City services, as well as enhance public trust that accessing such services would be safe. Following the recommendations of medical professionals, CalOSHA regulations, and local Health Officer Orders, the City implemented various options for COVID-19 testing.
Under the terms of the City’s emergency testing protocols, all employees who were identified by the Designated Infection Control Officer, Safety Officer, or a close contract as defined by public health guidance were permitted to access COVID-19 testing to continue working, return to work, or confirm an on-site infection. To facilitate this testing, staff sought the services of USMD, which provided alternative medical services for other City departments.
USMD provided administration, processing, and reporting associated with the COVID19 tests which were performed by a registered nurse. The reports provided to staff supported the Safety Officer and Emergency Operations Center staff with contact tracing and infection control. USMD provided on-site testing and laboratory processing for personnel who have been exposed to the COVID-19 virus through the course of their work.
The City administered routine testing at several times and at different City locations throughout 2021. The City deployed approximately 1,100 tests to employees who have sought testing during the height of the pandemic. The cost for these services throughout 2021 was exactly $111,670.00 and staff anticipate the $115,000 authority will provide authorization for all testing services and provide contingencies for any missing invoices not provided by the vendor. The City remains eligible for 3 of 4
reimbursement for qualifying expenses from the Federal Emergency Management Agency (FEMA) associated with the COVID-19 response.
Due to the expedited timeline, staff were unable to perform a traditional competitive bidding process; however, staff did conduct an informal cost assessment and negotiated the cost with the selected vendor. Staff now seeks Council authority to enter a retroactive contract with USMD as well as for Council to exempt this purchase from the City’s competitive bidding process due to the urgency of the service to keep the City’s workplace and public services safe.
FEMA continues to reimburse eligible cost at 100 percent from the beginning of the COVID-19 incident through July 1, 2022. These costs will be submitted for FEMA reimbursement to the City’s General Fund. All reimbursements received from the FEMA will be allocated to the City’s General Fund. Timelines associated with receiving reimbursement may be extended and will depend on requests for information and grant operations being conducted by FEMA.
Financial Impacts and Budget Actions
Staff seeks authority to retroactively approve funds which have been utilized from the General Fund to award a retroactive contract to USMD for COVID-19 testing and related services for City employees.
Contract/Agreement/Purchase Order Request
Expenses incurred through
2021 Department/CIP Account # Total Contract Amount
$115,000 01200014.553150 $115,000
Staff will seek reimbursement from FEMA for all qualifying COVID expenditures for as long as allowed. All reimbursements received from FEMA will reimburse the City’s General Fund. Staff will submit 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
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Prepared By: Steven Torrence, Emergency Services Administrator Approved Forwarded to Council
Attachments:
A. Signed Oaks Form for Dr. Fawad Zafar Khan dba USMD Direct