Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Amendment to the Agreement with Crothall Laundry Services, Inc. to Provide Laundry Linen Rental Services
RECOMMENDATION:
title
Adopt a resolution authorizing an amendment to the agreement with Crothall Laundry Services, Inc. to provide laundry linen rental services, extending the term through February 28, 2022, and increasing the amount payable by $400,000 to an amount not to exceed $3,672,000.
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BACKGROUND:
On December 15, 2014, your Board authorized an agreement with Crothall Laundry Services, Inc. (Crothall) to provide San Mateo Medical Center (SMMC) and Correctional Health Services with laundry linen rental services. This agreement has been amended multiple times; the current agreement expired on June 30, 2021 and is on the Continuing Resolution. SMMC recently completed a Request for Proposals (RFP) in 2021 and is currently analyzing the submissions.
DISCUSSION:
SMMC is requesting that your Board to allow Crothall to continue providing services until February 28, 2022, and increase the amount payable by $400,000, while SMMC performs a thorough review of the RFP submissions and negotiates a new agreement to be in place prior to the expiration of this interim agreement. This amendment is late due to the complexity of the submitted proposals and is on the Continuing Resolution.
County Counsel has reviewed and approved the resolution and agreement 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).
The County’s Contract Compliance Committee has approved a waiver request for a seven-year and one-month term for this agreement.
It is anticipated that SMMC’s linen inventory will be processed and delivered daily 100% of the time to meet patient needs.
PERFORMANCE MEASURE:
|
Measure |
FY 2020-21 Actual |
FY 2021-22 Estimated |
|
Percentage of time SMMC’s linen inventory will be processed and delivered daily to meet patients’ needs |
100% |
100% |
FISCAL IMPACT:
The term of the amended agreement is February 1, 2015 through February 28, 2022. This amendment increases the amount payable under the agreement by $400,000 to an amount not to exceed $3,672,000 for the 85-month term. Funds in the amount of $400,000 are included in the SMMC FY 2021-22 Adopted Budget.
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.