City Council
Report
City Council Meeting: May 23, 2023
Agenda Item: 5.L
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management Subject: Approval of First Modification to Agreement with Keystone Medical Resources, Inc for Citywide Employee COVID-19 Contact Tracing and Internal Healthcare Advisement
Recommended Action
Staff recommends that the City Council authorize the City Manager to:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
2. Negotiate and execute a first modification to agreement #11303 in the amount of $195,000 with Keystone Medical Resources, Inc. (Keystone) for City-wide employee COVID-19 contract tracing and internal healthcare advisement. This will result in a two-year and nine-month amended agreement with a new total amount not to exceed $345,000, with future year funding contingent on Council budget approval.
Summary
Contact tracing, a public health practice that involves identifying, assessing, and managing people who have been exposed to a contagious disease, has been an effective tool in preventing further spread of COVID-19. As mandated by regulatory agencies, such as Cal/OSHA, the City must conduct contact tracing for its employees.
Since November 2021, Keystone has provided contact tracing services for the City, which include medical advisement from a registered nurse during and outside of normal business hours. The current agreement with Keystone expires on June 30, 2023.
Keystone has agreed to extend the agreement for two years at the current hourly rate with no year-to-year increases. The extension is necessary given that staff is 2 of 4
anticipating that the contract tracing requirement will be in place at least through February 2025, a mandate that can be extended further.
Discussion
After the City’s Emergency Operations Center (EOC) was activated in March 2020, staff had to immediately implement COVID-19 contact tracing protocols. For expediency, contact tracing was initially done by a staff person in the EOC and a contracted nurse.
This model, however, proved insufficient for the volume of requests and around-theclock support that was required. The EOC, therefore, sought a contract service provider to perform contact tracing and related medical advisement services. Keystone was selected and contact tracing was transitioned to them in November 2021. Due to the extended emergency, staff secured City Council authority to modify the agreement in August 2022. At the time, FEMA was reimbursing 100% eligible costs incurred through June 30, 2022, and 90% for costs incurred on or after July 1, 2022.
On February 28, 2023, the City’s EOC concluded its COVID-19 emergency response operations in alignment with the sunsetting of the local proclamation. However, the mandate that California employers must conduct contact tracing for its employees is still in place. The updated Cal/OSHA COVID regulations extended the requirement until at least February 3, 2025. The oversight of the City’s contact tracing program has shifted from the EOC to the Risk Management Division. The complexity of the medical advice provided to the employees as part of the contract tracing activities still requires services from trained medical professionals during and outside of normal business hours. The cost of $95 per hour is the same rate originally negotiated in 2021. With the local emergency order no longer in effect, staff cannot seek a reimbursement from FEMA for the cost associated with this contract.
Past Council Actions
Meeting Date Description
August 23, 2022
(attachment A)
Authorize agreement with Keystone Medical Services, Inc. under an exception to the competitive bidding process pursuant to Section 2.24.250 (i).
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Environmental Review
The extension of an agreement for Citywide Employee COVID-19 Contact Tracing and Internal Healthcare Advisement is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. Based on the evidence in the record, it can be seen with certainty that there is no possibility that the agreement may have a significant effect on the environment. The agreement would not result in any adverse physical environmental effects as it involves the administration of health-related services. Therefore, no further environmental review under CEQA is required.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Self-Insurance, Workers’ Compensation Fund to increase the amount of the agreement with Keystone Medical Services, Inc. for City-wide employee COVID-19 contract tracing and internal healthcare advisement. Funding will be included in the FY 2023-25 Biennial Budget. Future year funding is contingent on Council budget approval.
Contract Modification Request
Agreement #
Current
Authorized
Amount
Modified Request
Amount Dept Account # Total Revised Contract Amount
11303 $150,000 $195,000 74800002.552010 $345,000
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Prepared By: Oles Gordeev, Risk Manager
Approved Forwarded to Council
Attachments:
A. 8.23.22 Staff Report
B. Keystone Oaks Form
C. Keystone Original Agreement