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Home My WebLink AboutStaff Report 2502-4229CITY OF PALO ALTO CITY COUNCIL Monday, April 14, 2025 Council Chambers & Hybrid 5:30 PM Agenda Item 6.Approval of Contract Amendment Number 1 to Contract Number S22183286 with The Permanente Medical Group Inc in an Amount Not to Exceed $100,000 for Pre- employment and Other Occupation-Related Medical Services; CEQA Status – Not a Project. City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Human Resources Meeting Date: April 14, 2025 Report #:2502-4229 TITLE Approval of Contract Amendment Number 1 to Contract Number S22183286 with The Permanente Medical Group Inc in an Amount Not to Exceed $100,000 for Pre-employment and Other Occupation-Related Medical Services; CEQA Status – Not a Project. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or designee to execute Amendment No 1. to Contract No. S22183286 (Attachment A), with The Permanente Medical Group Inc., to provide on-going pre-employment and other occupation-related medical services in an amount not-to-exceed $100,000. This amendment results in a revised total contract not-to-exceed amount of $150,000. BACKGROUND Pre-employment medical exams assess an individual’s physical and mental ability to ensure they can safely and effectively perform the essential job duties. These exams confirm job fit, particularly for positions requiring specific health standards like heavy lifting, bending, or operating machinery. They also help identify restrictions that could increase the risk of injury or illness, as well as allowing for necessary accommodations. For high-risk roles in fields like construction or public safety, the exams ensure the employee's fitness and protect others in the workplace. Additionally, certain industries require these exams to comply with regulations, such as California Occupational Safety and Health Administration (CalOSHA) or Department of Transportation (DOT) standards, to reduce the risk of accidents. ANALYSIS This report recommends an amendment to the existing contract for pre-employment and other occupation-related medical services. This contract is critical to ensuring the continued provision of pre-employment medical services for ongoing and future hires in positions that require medical clearance. In compliance with employment laws, pre-employment medical exams must adhere to ADA and HIPAA regulations. These services are best administered by a team of third- party qualified healthcare professionals. The proposed amendment to the contract with The Permanente Medical Group Inc. will extend the not-to-exceed amount to $150,000. This will cover services already provided in Fiscal Year 2025 and ensure the effective administration of pre-employment medical exams and other occupation-related medical services through June 14, 2026. •Duration: 12 months contract. •Scope of Services: Administration of all pre-employment medical services, including but not limited to: o Administration and processing of pre-employment medical exams o Drug and alcohol specimen collection as required by specified job classifications o DOT drug and alcohol testing as required by specified job classifications FISCAL/RESOURCE IMPACT •Cost of 12-month contract amendment: $100,000 o About $50,000 is expected to be spent in FY 2025 and $50,000 in FY 2026. STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Vers.: Aug. 5, 2019 Page 1 of 8 AMENDMENT NO. 1 TO CONTRACT NO. S22183286 BETWEEN THE CITY OF PALO ALTO AND THE PERMANENTE MEDICAL GROUP, INC, (“TPMG”) This Amendment No. 1 (this “Amendment”) to Contract No. S22183286 (the “Contract” as defined below) is entered into as of April 14, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and THE PERMANENTE MEDICAL GROUP, INC, (“TPMG”), a California corporation, located at 950 Franklin Street, Oakland, California, 94612 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of pre-employment occupational medical services, as detailed therein. B. The Parties now wish to amend the Contract in order to add more budget funding for occupational medical services by increasing compensation by One Hundred Thousand Dollars ($100,000) from Fifty Thousand Dollars to a new total not to exceed value of One Hundred Fifty Thousand Dollars ($150,000) and extend the term by 12- months, changing expiration date from June 14, 2025, to June 14, 2026. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. S22183286 between CONSULTANT and CITY, dated June 15, 2022, as amended by: b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2 “TERM.” of the Contract is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through June 14, 2026 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.” Docusign Envelope ID: 5CD9601C-7E91-486F-9B0F-5335ABD0B346 Vers.: Aug. 5, 2019 Page 2 of 8 SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: “The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Fifty Thousand Dollars ($150,000.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. CITY shall monitor the total amount of payments owed to CONSULTANT and shall immediately notify CONSULTANT when the maximum payment amount permitted under this Agreement is reached. Notwithstanding anything to the contrary in this Agreement, CITY shall be liable for and pay CONSULTANT for any services provided by CONSULTANT before CITY notified CONSULTANT of the reaching of the maximum payment amount permitted under this Agreement.” SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “C-1” entitled “SCHEDULE OF RATES”: The Exhibit C-1 attached to the Original Agreement is hereby deleted in its entirety and replaced with the fee schedule attached hereto as Exhibit C-1. SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. Docusign Envelope ID: 5CD9601C-7E91-486F-9B0F-5335ABD0B346 Vers.: Aug. 5, 2019 Page 3 of 8 EXHIBIT C-1 SCHEDULE OF RATES PREPLACEMENT EXAM (PP3) 300388 Preplacement Physical Exam $65.00 86580 PPD, 1 step, placement and reading $20.00 300415 Respirator Med Clearance/OSHA $35.00 92552 Audiogram, screening $54.00 71045 Chest X-Ray, 1 view $55.00 71046 Chest X-Ray, 2 views $75.00 94010 Spirometry $60.00 93000 EKG, resting $50.00 93015 Cardiac Stress Test with Treadmill $230.00 36415 Venipuncture $15.00 86706 Titer: Hepatitis B Surface Antibody (HBsAb) $35.00 90746 Vaccine: Hepatitis B, may need series of 3 injections $130.00/injection 300408 Physician consultation, each 15 minutes $64.00/15 mins POLICE/SHERIFF PREPLACEMENT EXAM (POSTPP) 300399 POST Physical Exam $127.00 92552 Audiogram, screening $54.00 94010 Spirometry $60.00 93000 EKG, resting $50.00 93015 Cardiac Stress Test with Treadmill $230.00 86480 QuantiFERON $145.00 80053 Chem Comprehensive Panel $41.00 85025 CBC with automated differential $20.00 86706 Titer: Hepatitis B Surface Antibody (HBsAb) $35.00 86704 Titer: Hepatitis B Core Antibody (HBcAb) $31.00 86803 Titer: Hepatitis C Antibody Screen $56.00 86708 Titer: Hepatitis A IgG Antibody (HAAb) $40.00 36415 Venipuncture $15.00 300411 Collection for Drug Screen-Preferred Alliance Billed by Preferred Docusign Envelope ID: 5CD9601C-7E91-486F-9B0F-5335ABD0B346 Vers.: Aug. 5, 2019 Page 4 of 8 As Clinically Indicated: FIREFIGHTER PREPLACEMENT EXAM (FFPP) 300398 Firefighter Physical Exam $127.00 92552 Audiogram, screening $54.00 94010 Spirometry $60.00 85025 CBC with automated differential $20.00 80053 Chem Comprehensive Panel $41.00 36415 Venipuncture $15.00 71046 Chest X-Rays (2 views, PA & Lateral) $75.00 86480 QuantiFERON $145.00 93000 EKG, resting $50.00 93015 Cardiac Stress Test with Treadmill $230.00 86706 Titer: Hepatitis B Surface Antibody (HBsAb) $35.00 86704 Titer: Hepatitis B Core Antibody (HBcAb) $31.00 86803 Titer: Hepatitis C Antibody Screen $56.00 86708 Titer: Hepatitis A IgG Antibody (HAAb) $40.00 Docusign Envelope ID: 5CD9601C-7E91-486F-9B0F-5335ABD0B346 Vers.: Aug. 5, 2019 Page 5 of 8 HAZMAT BASELINE / ANNUAL / PERIODIC (HAZ) 300393 Hazardous Worker Exam $106.00 92552 Audiogram, screening $54.00 94010 Spirometry $60.00 80053 Chem Comprehensive Panel $41.00 85025 CBC with automated differential $20.00 36415 Venipuncture $15.00 71046 Chest X-Ray, 2 views $75.00 93000 EKG, resting $50.00 93015 Cardiac Stress Test with Treadmill $230.00 300408 Physician Consultation, each 15 minutes $64.00/15 mins RESPIRATOR BASELINE / PERIODIC (RESP) 300415 Review of OSHA Respirator Questionnaire by MD/NP/RN $35.00 Docusign Envelope ID: 5CD9601C-7E91-486F-9B0F-5335ABD0B346 Vers.: Aug. 5, 2019 Page 6 of 8 AUDIOGRAM (AUDIO) 92552 Audiogram, screening $54.00 300408 Physician Consultation, each 15 minutes $64.00/15 mins DMV/DOT EXAM (DMV/DOT) 300390 DMV/DOT Physical Exam $115.00 92552 Audiogram, screening $54.00 URINE DRUG AND BREATH ALCOHOL TESTING (DRUG) 300411 Collection for Drug Screen-Preferred Alliance Billed by Preferred Alliance 82075 Breath Alcohol Testing (BAT) – Preferred Alliance Billed by Preferred Alliance 300421 Breath Alcohol Testing (BAT), Confirmatory – Preferred Alliance Billed by Preferred Alliance VACCINATION ONLY (VAX) As Clinically Indicated: Docusign Envelope ID: 5CD9601C-7E91-486F-9B0F-5335ABD0B346 Vers.: Aug. 5, 2019 Page 7 of 8 LABORATORY ONLY (LAB) As Clinically Indicated: TB CLEARANCE PPD/QUANTIFERON (PPD/TB CLEARANCE) 86580 PPD, 1 step, 1 placement and reading -OR- $20.00 86480 QuantiFERON $145.00 36415 Venipuncture $15.00 300422 PPD, 2 step, 2 placements and readings $30.00 71045 Chest X-Ray, 1 view $55.00 71046 Chest X-Ray, 2 views $75.00 99211 Brief encounter with non-MD Provider $25.00 (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Docusign Envelope ID: 5CD9601C-7E91-486F-9B0F-5335ABD0B346 Vers.: Aug. 5, 2019 Page 8 of 8 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or Designee THE PERMANENTE MEDICAL GROUP, INC, (“TPMG”) By: Name: Title: Docusign Envelope ID: 5CD9601C-7E91-486F-9B0F-5335ABD0B346 Amanpreet Dhillon Regional Medical Director OHSS