AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH STRENGTH TRAINING INCORPORATED FOR OCCUPATIONAL HEALTH MEDICAL SERVICES
Staff Contact: Mark Burdick, Fire Chief
Purpose and Recommended Action
Recommendation
This is a request for City Council to award the bid and enter into an agreement with Strength Training, Inc. (STI) for Medical Occupational Health Services at Glendale Health Center for an initial two year term. This request also authorizes the City Manager, at her discretion, to renew the agreement for an additional three years in one-year increments.
Background
The Glendale Health Center is located at the Glendale Regional Public Safety Training Center (GRPSTC). Since its inception in 2009, the Glendale Health Center's original Intergovernmental Agreement (IGA) was with Daisy Mountain Fire District. Within the IGA, the medical providers were STI and Scottsdale Health Care.
The IGA with Daisy Mountain Fire District expired in 2013 and a temporary contract with STI was approved by Council, until the Request for Proposal (RFP) 14-07 process could be completed. This was done via a special procurement that does not require the formal purchase procedures as authorized by GCC 2-145 (g).
This temporary contract allowed the Glendale Health Center to continue to provide medical services without impact to its current users.
The medical providers currently are responsible for:
· Occupational medical services;
· First aid treatment;
· Health and wellness medical services;
· Department of Transportation (DOT) and Arizona Peace Officer Standards and Training (AZ POST) drug and alcohol screening;
· Hearing and vision testing;
· Commercial Driver's License (CDL)/(DOT) physicals in accordance with Federal Motor Carrier Safety Administration (FMCSA);
· Pre-employment physical examinations in accordance with OSHA Regulations;
· Annual physical health evaluations and other medical evaluations and examinations on City employees and potential employees;
· Incumbent fire fighter physicals in compliance with NFPA 1582 and OSHA 1910 - 134 Respiratory Protection and;
· Special Weapons and Tactics (SWAT) and Explosive Ordinance Disposal (EOD) officer physicals in accordance with AZPOST and OSHA 1910-134 Respiratory Protection requirements
Analysis
In May 2014, an RFP was issued to solicit medical services to be provided at the Glendale Health Center. The City received responses from STI and Scottsdale Health Care. With the assistance and oversight of Materials Management, a committee was formed that was comprised of representatives from Human Resource, Glendale Fire and Glendale Police labor, the Health Center Deputy Chief, and one member from three outside partner fire agencies (Avondale, Daisy Mountain Fire District and Surprise). Evaluation criteria were based on experience or service and professional effort, compliance with specifications, fee structure, and references. After final scoring, the evaluation committee determined that STI would be recommended for award of a contract.
STI was deemed to be the responsible and responsive offeror whose proposal was determined, in writing, to be the most advantageous to the City and best meets the overall needs of the City taking into consideration the evaluation factors set forth in the request for proposal.
Attached for your consideration and approval are the contract and fees per the RFP that will/may be charged to the city. The City will obtain medical services and license use of the health center located at the GRPSTC to STI for payment of a monthly fee of $7,500.
The initial term of the contract shall be two (2) years, upon approval by the City Council. STI is required to provide Occupational Health and Medical Services no later than May 1, 2015. The City may, at its option and with the approval of the Contractor, extend the term of the agreement three (3) additional years in one (1) year increments based on satisfactory Contractor and Sub-contractor performance. The City Manager or designee is authorized to execute any and all documents required to extend the contract.
This agreement will allow the City to continue to provide occupational health and medical health as listed in the background. At a later date urgent and wellness care to City of Glendale employees and other outside government agencies may be added utilizing private health insurance coverage. The City will continue to own and maintain all major medical equipment in the Health Center. The contractor will be required to pay a $7,500/month license fee, billed quarterly, for use of the Health Center which will provide the revenue to maintain the major medical equipment, as well as save for any future medical equipment needs thus reducing the budget impact. The revenue generated will be deposited into the Health Center Revenue Fund.
Previous Related Council Action
On April 24, 2014, Council approved an amendment for an extension of term to the agreement Contract No. C-8527-1 with STI.
On June 28, 2013, Council approved a temporary Contract No. C-8527 with STI.
On January 27, 2009, Council approved an IGA C-6764 between Daisy Mountain and Glendale Fire for the administration of the Health Center.
Community Benefit/Public Involvement
Public safety personnel will continue to receive the annual medical healthcare needed that will assist them with protecting the health and safety of Glendale citizens and visitors. This annual screening has identified several potential catastrophic medical issues before they could manifest themselves.
The addition of urgent and wellness care for all city employees could potentially reduce loss time at work, improve general health, and possibly improve employee morale and productivity.
Budget and Financial Impacts
As stated above, the contractor is required to pay $7,500/month for total revenue of $90,000 annually. The Workers Compensation Trust Fund pays for the medical costs and expenses associated with occupation injuries of city employees per state law. Funds are established and set aside in the Trust Fund for this purpose. A Benefits Trust Fund pays for medical costs of health care provided to employees, their dependents and retirees. Funds are also established and set aside in the Benefits Trust Fund. Each budget year the fire department has been granted an on-going budget of $173,833.00 to pay for annual firefighter physicals.
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?