Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Colleen Chawla, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Amendment to the Agreement with Steris Corporation for Additional Maintenance Services
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Steris Corporation, to provide additional maintenance services for the term of August 1, 2024 through July 31, 2027, and increasing the amount of the agreement by $260,000, to an amount not to exceed $275,000.
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BACKGROUND:
San Mateo Medical Center (SMMC) requires maintenance services from Steris Corporation (Steris) for its Steris manufactured equipment. Steris is the sole factory-authorized supplier of parts and service for its sterile processing equipment. On August 8, 2024, the parties entered into an Agreement for maintenance services to SMMC’s dental sterilization equipment for the term of August 1, 2024 through July 31, 2027, in an amount not to exceed $15,000.
DISCUSSION:
SMMC has recently replaced several pieces of sterile processing equipment that support our operating room. By incorporating the newly acquired sterile processing equipment into the existing maintenance agreement that was previously only for dental sterilization equipment, Steris will provide access to on-demand repairs, replacement parts, as well as scheduled preventive maintenance for all sterile processing equipment currently in use. This coverage will help reduce the risk of equipment downtime, which will minimize potential delays in patient care or procedure cancelations. County Procurement has reviewed and approved the waiver of competitive process based on the determination that this service is only available from a sole source provider.
County Attorney has reviewed and approved the resolution and amendment as to form.
The resolution contains the County’s standard provisions allowing amendment of the County fiscal obligations by a maximum of $25,000 (in aggregate).
It is anticipated that the uptime of SMMC’s Steris equipment shall have an uptime of 90%.
PERFORMANCE MEASURE:
|
Measure |
FY 2025-26 Estimated |
FY 2026-27 Projected |
|
Percentage in uptime of SMMC’s Steris equipment |
90% |
90% |
COMMUNITY IMPACT:
Steris’ maintenance services support SMMC, a public safety net hospital, to provide safe, timely, and high-quality care SMMC’s patients. Although this does not provide direct patient care, consistent equipment performance reduces the risk of procedure delays or cancellations, supports infection control, and helps maintain uninterrupted surgical and clinical services. SMMC’s patients span a wide spectrum of races, ethnicities, gender, and gender-identities. Since November 1, 2024 half of the specialty care patients at SMMC were female and half were male, with the largest ethnic cohorts being Hispanic or Latino (58%), and primarily Spanish speaking (48%).
FISCAL IMPACT:
The term of the amended agreement is August 1, 2024 through July 31, 2027. The amendment increases the amount payable under the agreement by $260,000 to an amount not to exceed $275,000 for the 3-year term. Funds in the amount of $99,047 are included in the SMMC FY 2025-26 Adopted Budget. Funds in the amount of $148,571 are included in the SMMC FY 2026-27 Recommended Budget. Similar arrangements will be made for future years.
Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medically indigent or to those covered by programs that do not meet the full costs of care is covered by the County’s General Fund contribution to SMMC and is within the existing annual appropriation.