TITLE
Recommendation to authorize City Manager, or designee, to execute any and all necessary documents to amend Contract No. 35546 with Curative, Inc., of Menlo Park, CA, for COVID-19 testing kits and lab services, to increase the contract amount by $690,000, pursuant to Chapters 2.69 and 2.85 of the Long Beach Municipal Code (LBMC), and to include a contingency in the amount of $3,475,000, for a revised total contract amount not to exceed $6,507,813; and
Increase appropriations in the amount of $4,165,000 in the Health Fund Group in the Health and Human Services Department. (Citywide)
DISCUSSION
On May 19, 2020, the City Council awarded a contract to Curative, Inc., to provide COVID-19 testing kits and lab services. These COVID-19 tests have been available at three free testing locations operated by the Department of Health and Human Services (Health Department) located at Cabrillo High School, Jordan High School and Veterans Stadium at Long Beach City College. These testing sites complement other State and County testing performed in and around Long Beach and are part of the larger local and regional test and trace strategy for responding to COVID-19.
The expansion of testing options within the City has positioned Long Beach to begin the process of reopening lower risk businesses and allowed for certain outdoor recreational activities in beaches and parks. The capacity to test individuals for COVID-19 is the key to moving forward through the stages outlined in the State of California's Resilience Roadmap.
On March 10, 2020, the City Council of the City of Long Beach recognized that an emergency did exist and unanimously passed a Resolution ratifying the City Manager’s Proclamation of a Local Emergency and the Public Health Officer’s Declaration of Local Health Emergency due to COVID-19. Pursuant to the authority in Chapters 2.69 and 2.85 of the LBMC, the City Manager has the authority to approve purchases up to $1,000,000 for goods or services related to a proclaimed emergency.
With the increased demand for COVID-19 testing at City testing sites during the first several stages of re-opening, additional test kits are needed. An order of an additional 5,000 test kits has been placed under the City Manager’s emergency purchasing authority established in LBMC. The amendment executed by the City Manager pursuant to the emergency purchasing authority for $690,000 covers the cost of that initial 5,000 test kits purchase.
Should additional testing kits be needed beyond the 5,000 test kits, the contingency amount of $3,475,000 will provide for a purchase of up to an additional 25,000 test kits as funds are identified.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson, Deputy Finance Director Sandy Tsang-Palmer, and by Budget Analysis Officer Julissa Jose-Murray on July 7, 2020.
EQUITY
Diagnostic testing in Long Beach is available to anyone concerned they have been exposed to or contracted COVID-19. Patients are not required to have health insurance to be tested at a City test site, and do not submit a copayment. Testing is available at multiple locations spread across the City to ensure equitable access to patients and walk-up testing is available for individuals who do not have access to a vehicle. Three testing sites are specifically located in communities of color disproportionally affected by the effects of COVID19. A Mobile Testing Unit also delivers testing services directly to community members who do not have the mobility to travel to a testing site.
STATEMENT OF URGENCY
The request for City Council to amend the contract with Curative, Inc., is critical to maximize the City's efforts to combat the COVID-19 pandemic. The supplies and services derived from this contract, which was completed in accordance with emergency procurement procedures, will impact the City's public health emergency response.
TIMING CONSIDERATIONS
[Timing Considerations]
FISCAL IMPACT
The total contract amount, including contingency, will not exceed $6,507,813. This amount is inclusive of the original contract amount of $2,324,813, approved on May 19, 2020, the first amendment for 5,000 test kits and lab services for $690,000 authorized with the emergency purchasing authority in Chapter 2.85.030 of the LBMC, and a contingency of $3,475,000 for an additional 25,000 test kits, if needed. While these costs are unfunded, like most costs related to the response to COVID-19, City staff have been researching and applying for available COVID-19 grant opportunities to maximize the City’s access to available funding for emergency response and recovery activities. The City expects to receive a Centers for Disease Control and Prevention (CDC) Epidemiology and Laboratory Capacity for Prevention and Control of Emerging Infectious Diseases (ELC) Grant, which will provide support for a broad range of testing and epidemiological surveillance-related activities. The grant agreement for ELC has not been formally executed but is anticipated to be available in the coming weeks. Additionally, the City is applying for FEMA cost recovery under the Public Assistance (PA) program. Both of these funding sources are expected to help offset the costs of these necessary test kits. An appropriation increase is requested in the amount of $4,165,000 in the Health Fund Group in the Health and Human Services Department, to allow for the purchase of the test kits and lab services. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KELLY COLOPY
DIRECTOR OF HEALTH AND HUMAN SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER