TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Lisa Jenkins, Human Resources Director
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 2 to the Professional Services Agreement with Occupational Health Centers of California to Provide Professional Medical Services in the Amount of $126,000 for a Total Not-to-Exceed Amount of $200,000 (Budgeted) (Human Resources Director Jenkins).
ADOPT RESOLUTION NO. 26-0020
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RECOMMENDATION:Body
Staff recommends that the City Council approve an amendment to the agreement with Occupational Health Centers of California (“Consultant”) in the amount of $126,000 for a new total not-to-exceed amount of $200,000 to ensure continued provision of pre-employment and annual medical services for City employees.
FISCAL IMPLICATIONS:
The proposed amendment increases the total contract amount by $126,000, bringing the new total compensation to $200,000. Services associated with this contract are budgeted and no budget appropriation is needed at this time.
BACKGROUND:
On July 1, 2024, the City entered into an agreement with Occupational Health Centers of California, an independent contractor that provides professional medical services. These services include pre-employment physicals, occupational health and safety services, and annual medical exams. The agreement was established as a fee-based agreement, depending on the specific services requested, with a maximum compensation of $40,000 and a term set to end on June 30, 2026. On June 9, 2025, the agreement was amended (Amendment No. 1) to increase the maximum compensation to $74,000.
DISCUSSION:
The agreement with the Occupational Health Centers of California allocated funds based on estimated usage for pre-employment physicals for all new hires, both sworn and non-sworn, as well as other occupational health and safety services for City employees. For employees who are required to undergo a pre-employment physical exam, costs range from $500 to $900 per exam. Additionally, service fees have increased incrementally, and the utilization of services has expanded to include hearing tests, DOT-required re-certification physical screenings, and random drug testing. The City has been satisfied with the services provided and anticipates continuing to utilize these services moving forward. Therefore, additional contract authority is needed to support anticipated services for the remainder of Fiscal Year 2025-2026. As the agreement is currently anticipated to expire on June 30, 2026, the second amendment (Amendment No. 2), pending approval, includes a request to extend the contract term to June 30, 2027.
According to the Manhattan Beach Municipal Code (MBMC) Section 2.36.130, agreements for the services of specially trained and professional individuals are exempt from the bidding process. However, if the contract amount reaches or exceeds $75,000, it must receive approval from the City Council. At this time, staff is recommending that the Council adopt a resolution to approve Amendment No. 2 to the agreement, which would increase the maximum compensation to a total not exceeding $200,000 and extend the term through June 30, 2027.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 26-0020
2. Amendment No. 2 - Occupational Health Centers of California
3. Agreement and Amendment No. 1 - Occupational Health Centers of California