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HomeMy WebLinkAbout25H - AGMT - INMATE MEDICAL SRVS- 0 ` b CITY COUNCIL MEETING DATE: NOVEMBER 15, 2016 TITLE: FIRST AMENDMENT TO AGREEMENT WITH NAPHCARE, INC. FOR INMATE MEDICAL SERVICES (STRATEGIC PLAN NO. 1, 3A) CITY MANAG ; CLERK OF COUNCIL USE ONLY: l="". 14 ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute the first amendment to the agreement with Naphcare, Inc., to include a three percent cost of living adjustment in the amount of $58,219 for the final year of the three-year term, for a new total agreement amount of $6,030,112, subject to non -substantive changes approved by the City Manager and City Attorney, DISCUSSION On May 29, 2014, the Police Department issued a request for proposals (RFP #14-034) for inmate medical services. On October 1, 2014, the Police Department entered into a three-year agreement with Naphcare, Inc. to provide these services. In June 2015, Naphcare requested a cost of living adjustment for year two of the agreement. Due to the low inmate population and drop in contract housing revenue, the Police Department did not recommend approval of the increase. In April 2016, Naphcare again approached the Police Department to request a three percent cost of living adjustment for the final year of the agreement, October 1, 2016 through September 30, 2017. Naphcare has continued to provide excellent medical services to Jail inmates. Naphcare has also helped ensure that the Jail facility remains in compliance during various audits and inspections performed by county, state and federal agencies responsible for evaluating medical care standards within jail facilities. The proposed three percent cost of living adjustment will increase the annual base agreement amount by $58,219, bringing the base line from $1,940,631 to $1,998,850. A $50,000 annual contingency will be added for services not included in the base agreement, including but not limited to: x-rays, dentures, and OB/GYN exams. The total amount for the third year of this agreement will not exceed $2,048,850. The total three-year agreement amount will not exceed $6,030,112. In 2017, staff will be issuing a new Request for Proposals for these services. 25H-1 Agreement Amendment with Naphcare, Inc. for Medical Services November 15, 2016 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #1 - Community Safety, Objective #3 (promote fiscal accountability to ensure financial responsibility at all levels of the organization), Strategy A (continuously evaluate and assess fiscal aspect of service delivery to ensure that the Police Department provides programs and services efficiently and effectively). FISCAL IMPACT Funds for the third year of this agreement are available and will be appropriated in the Jail Operations contract services account (no. 01114475 62300) for the following fiscal years: FY 2016-17 $1,524,138 FY 2017-18 $ 524,712 Total $2,048,850 APPROVED AS TO FUNDS AND ACCOUNT: Carlos Rojas Francisco Gutierrez Chief of Police Executive Director Santa Ana Police Department Finance and Management Services Agency 25H-2 FIRST AMENDMENT TO AGREEMENT FOR PROVISION OF INMATE MEDICAL SERVICES THIS FIRST AMENDMENT to the above -referenced agreement is entered into November 15, 2016 by and between NaphCare, Inc., an Alabama Corporation, (hereinafter "Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City"). RECITALS A. The parties entered into Agreement ##A-2014-205 dated October 1, 2014 ("Agreement"), by which Consultant agreed to provide basic and emergency inmate medical care. B. The agreement provides for a potential compensation increase in years two and three upon mutual agreement of the parties pursuant to the terms of section 4 of the agreement. City believes that Consultant has provided consistent and dependable services without a compensation increase in year two and that a small increase would be appropriate for the third year of the agreement given the general increase of medical services costs. C. The City desires to add a $50,000 contingency to the agreement for services not included in the base agreement such as x-rays, dentures, ophthalmology, emergency psychiatric crisis services and OB/GYN examinations. Now, therefore, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Agreement, except as herein modified, the parties agree as follows: 1. Section 4, Compensation, is amended to add the following: Year Three Pricing for Inmate Medical Services: $1,998,850.00 Monthly pricing for Year Three: $ 166,570.83 Monthly per diem for ADP exceeding 440: $ 1.25 A $50,000.00 contingency will be added to address those special medical services not included in the base agreement (x-rays, dentures, OB/GYN services, ophthalmology, and emergency psychiatric crisis services) to be used at the City's sole discretion. The total agreement amount for years one -three will not exceed $6,030,112.00. 2. 'Except as hereinabove modified, all terms and conditions of said Agreement shall remain in full force and effect. Exhibit 1 25H-3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. ATTEST: MARIA D. IIUIZAR Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALI-IO City Attorney By: C fDN `uX n Laura A. Rossini Senior Assistant City Attorney RECOMMENDED FOR APPROVAL: CARLOSROJAS Chief of Police 25H-4 CITY OF SANTA ANA DAVID CAVAZOS City Manager NAPHCARE, INC Dy: James S. M ane Chief Executive Officer