TITLE
Recommendation to authorize City Manager, or designee, to execute a contract between the City of Long Beach and the City of Los Angeles for the Department of Health and Human Services to perform fee for service housing-related testing services for one year with revenues of approximately $24,160 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 Department of Health and Human Services (Health Department) Public Health Laboratory contracts with other public agencies to perform various testing and diagnostic services that augment Health Department revenues. On December 15, 2009, the City Council approved 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 options to renew the contract for two additional years, at the discretion of the City Manager, through March 2013. Recently, the City of Los Angeles Housing Department approved the continuation of this agreement. Testing fees will be charged in accordance with the Health Department's current fee schedule. Revenues of up to $24,160 per year are anticipated, depending on the sample type, number of tests performed, and the turn-around time requested for each test. This fee-far-service contract will be for a term of one-year, April 1, 2013 through March 31, 2014, with an option to renew for two additional one-year periods.
This matter was reviewed by Deputy City Attorney Linda Vu on July 23, 2013 and by Budget Management Officer Victoria Bell on July 29, 2013.
TIMING CONSIDERATIONS
City Council action is requested on September 3, 2013 as the Health Department has been providing services under this agreement since April 1, 2013, but will be unable to recover costs until the agreement is approved. Processing of this agreement was delayed at the City of Los Angeles level, however the Health Department will be able to fully recover all costs once the agreement has been approved.
FISCAL IMPACT
Execution of this contract will result in annual revenues of up to $24,160, depending upon the sample type, number of tests performed, and the requested turn-around time requested for each test. Fees will be charged in accordance with the Health Department's current fee schedule and will cover the fully loaded City cost to provide these services. Sufficient appropriation currently 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. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
SUSAN PRICE
ACTING DIRECTOR
HEALTH AND HUMAN SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER