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