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 Pacific Harbor Medical Group, Inc. to Provide Professional Medical Services at a Cost Not-to-Exceed $274,000 through June 30, 2027 (Budgeted) (Human Resources Director Jenkins).
ADOPT RESOLUTION NO. 25-0048
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RECOMMENDATION:Body
Staff recommends that the City Council approve an amendment to the agreement with Pacific Harbor Medical Group, Inc. (“Consultant”) increasing the compensation to a total not-to-exceed amount of $274,000 to ensure continued provision of pre-employment and annual medical services for City employees.
FISCAL IMPLICATIONS:
While the proposed amendment increases the total contract amount by $200,000, the contract will be funded by existing funds in the appropriate departmental budget, including Fire and Human Resources, which has been accounted for through the budget adoption process. There is no budget adjustment needed to appropriate funding at this time.
BACKGROUND:
On September 15, 2024, the City entered into an agreement with Pacific Harbor Medical Group, Inc., an independent contractor that provides professional medical services, including pre-employment, fit-for-duty, and annual physical exams, as well as necessary vaccinations for City employees. The agreement was fee-based, depending on the type of requested service, with a maximum compensation of $74,000 and a term through June 30, 2027. On January 15, 2025, the agreement was amended (Amendment No. 1) to update the Fee Schedule. The City started utilizing the Pacific Harbor Medical Group beginning in February 2025, and $45,935 has been expended.
DISCUSSION:
The original agreement with the Pacific Harbor Medical Group allocated funds based on estimated usage for pre-employment physicals for sworn new hires, fit-for-duty exams, and annual required vaccinations for City employees. Subsequently, it was determined that this medical group would be the most appropriate provider for the annual physical exams for sworn fire personnel that are required per Article 37, “Physical Exam Program”, of the Manhattan Beach Firefighters’ Association Memorandum of Understanding. The purpose of these annual examinations is to improve well-being and health for employees, and aid in the early detection of medical problems that could lessen negative health outcomes from chronic conditions. To allow for the provision of these City-provided annual exams and also ensure the City can utilize other occupational health services from the same provider without interruption, staff is recommending to increase the maximum compensation of the agreement at this time.
According to the Manhattan Beach Municipal Code (MBMC) Section 2.36.130, contracts 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 shall only be approved by the City Council. At this time, staff recommends that the City Council adopt a resolution to approve the second amendment (No. 2) to the agreement, increasing the maximum compensation to a new total not to exceed $274,000 through the contract end date of June 30, 2027.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 25-0048
2. Amendment No. 2 - Pacific Harbor Medical Group, Inc.
3. Agreement and Amendment No. 1 - Pacific Harbor Medical Group, Inc