TITLE
Recommendation to authorize City Manager to execute a contract with the City of Los Angeles for the Health Department to perform fee-for-service housing-related testing services for one year with revenues estimated at $40,000 per year, and to execute any other necessary documents, amendments or subsequent renewal options to extend the contract for two additional years at the discretion of the City Manager. (Citywide)
DISCUSSION
The City of Long Beach Health Department's Public Health Laboratory contracts with other public agencies to perform for them various testing and diagnostic services that augment Health Department revenues. The City's Public Health Laboratory recently responded to a Request for Proposal issued by the City of Los Angeles Housing Department for Housing-Related Technical Services, and was chosen to enter into a contract to perform certain lead-related testing services for said agency. Testing fees will be charged in accordance with the Department's current fee schedule. Revenues are anticipated up to $40,000 per year, depending on the sample type, number of tests performed, and the turn-around time requested for each test. Further, including these tests in our local testing "batches" in the lab reduces the per-unit test costs for Long Beach-based testing, providing savings in the Health Fund of 5-10 percent per test. This fee for service contract will be for a term of one year, beginning approximately January 2,2010, with an option to renew for two additional one-year periods.
This matter was reviewed by Deputy City Attorney, Linda Trang, on December 7, 2009 and by Budget and Performance Management Bureau Manager, David Wodynski, on December 4, 2009.
TIMING CONSIDERATIONS
City Council action is requested on December 15, 2009 in order to proceed with a contract start date of January 2, 2010. The Los Angeles City Council approved the contract award, and compliance documents have been produced at their request. Because one of the documents requested is an ordinance of signing authority, this request for City Council authorization must be in place before the contract can proceed. Once the requested documents are approved by the various agencies within the City of Los Angeles' compliance network, the contract will be finalized for review and execution by the parties involved.
FISCAL IMPACT
Execution of this contract will result in estimated annual revenues of up to $40,000, depending upon the sample type, number of tests performed, and the requested turnaround time requested for each test. Further, including these tests in our local testing "batches" in the lab reduces the per-unit test costs for Long Beach-based testing, providing savings in the Health Fund of 5-10 percent per test. Fees will be charged in accordance with the Department's current fee schedule and will cover the fully loaded City cost to provide these services. Sufficient appropriation exists in the Health Fund (SR 130) in the Department of Health and Human Services (HE) to provide these services. The option of two additional one-year renewals will be considered with appropriate adjustments to City fees for service.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
RONALD R. ARIAS |
APPROVED: |
DIRECTOR |
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HEALTH AND HUMAN SERVICES |
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PATRICK H. WEST |
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CITY MANAGER |