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HomeMy WebLinkAboutItem 12c - Change Order to PO with Medical Diagnostic Laboratory, LLC DATE: February 16, 2021 TO: Honorable Mayor and City Council FROM: Michael E, Lang, Fire Chief By: Chen Suen, Battalion Chief Maria Lourdes A. Taylor, Sr. Management Analyst SUBJECT: RESOLUTION NO. 7352 AMENDING THE FISCAL YEAR 2020-21 GENERAL FUND BUDGET AUTHORIZING A SUPPLEMENTAL APPROPRIATION IN THE FIRE DEPARTMENT ACCOUNT IN THE AMOUNT OF $30,250, OFFSET BY A REDUCTION IN THE EMERGENCY RESERVE FUND, AND APPROVING A CHANGE ORDER TO THE PURCHASE ORDER WITH MEDICAL DIAGNOSTIC LABORATORY, LLC Recommendation: Adopt SUMMARY On July 22, 2020, the City of Arcadia issued a purchase order with Medical Diagnostic Laboratory, LLC to furnish all labor, tools, equipment, materials, and any supervision necessary to provide COVID-19 testing services for City employees for Fiscal Year 2020- 21. Funded by the City’s Emergency Reserve Fund, the current purchase order is in the amount of $29,750. The normal competitive bidding process was waived due to the current COVID-19 pandemic event and a statewide health order. As allowed by the City of Arcadia’s Purchasing Procedures and Policy, securing a purchase order with Medical Diagnostic Laboratory, LLC to provide these materials was necessary to preserve the workforce and maintaining service levels to the public. Based on the current testing trends, a change order to the purchase order is necessary. Purchase Order Change Order with Medical Diagnostic Laboratory, LLC February 16, 2021 Page 2 of 3 It is recommended that the City Council adopt Resolution No. 7352 amending the Fiscal Year 2020-21 General Fund Budget authorizing a supplemental appropriation in the Fire Department in the amount of $30,250, offset by a reduction in the Emergency Reserve Fund, and approving a change order to the purchase order with Medical Diagnostic Laboratory, LLC. DISCUSSION On March 17, 2020, the Arcadia City Council unanimously ratified a Declaration of Local Emergency issued by the City Manager to allow the City to enact emergency provisions designed to protect the community from further COVID-19 transmission. This followed a series of other declarations including the Los Angeles Department of Public Health Declaration of Local Health Emergency on March 4, 2020; Gubernatorial Declaration of State of Emergency on March 4, 2020; and Presidential declaration on March 13, 2020. Early in the pandemic, very few laboratories had access to COVID-19 testing material and supplies. As a result, Medical Diagnostic Laboratory, LLC presented several tests including both PCR (swab) testing and COVID-19 IgG/IgM antibody testing, which had obtained approval early on from the U.S. Department of Federal Drug Administration (“FDA”) through its Emergency Use Authorization (“EUA”). The development of this relationship early on has secured faster test results for City employees. Most testing sites can provide results within a two to three-day period. However, Medical Diagnostic Laboratory, LLC has provided results to City employees within 24 hours. Several hundred employees have been tested since the beginning of the local emergency declaration and testing continues to be needed to avoid outbreaks and transmission among employees when exposures occur. The amount of the cost increase is based on the current testing trend since the beginning of Fiscal Year 2020-21. With approximately 200 tests conducted, approximately $30,000 had been expended since July 2020 for PCR testing. The large amount of testing was due to the November and December surge seen not only among City employees but nationwide. Given the continued COVID-19 pandemic and its potential adverse impact to the City’s overall workforce, it is necessary to change the purchase order amount to $60,000 (or an increase of $30,250 to the current purchase order), to further maintain testing for City employees for the reasons stated above. ENVIRONMENTAL IMPACT The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. Purchase Order Change Order with Medical Diagnostic Laboratory, LLC February 16, 2021 Page 3 of 3 FISCAL IMPACT The current purchase order for Medical Diagnostic Laboratory is $29,750. With the continued need to test City employees to preserve its workforce and maintain its service levels to the public, a supplemental appropriation in the amount of $30,250 is being requested from the City’s Emergency Reserve Fund. While it could be expected that the number of tests needed in the next six months should be less than the prior period – the winter surge has passed and many front line employees have now received the vaccine – having a purchase order in place to immediately respond to a large scale exposure in the workforce provides the City with flexibility. The City will only be billed for tests conducted on an as needed basis. RECOMMENDATION It is recommended that the City Council find that the proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”); adopt Resolution No. 7352 amending the Fiscal Year 2020-21 General Fund Budget authorizing a supplemental appropriation in the Fire Department Account in the amount of $30,250, offset by a reduction in the Emergency Reserve Fund, and approving a Change Order to the Purchase Order with Medical Diagnostic Laboratory, LLC. Attachment: Resolution No. 7352