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, increasing the amount payable by $75,000 to an amount not to exceed $3,747,000.
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BACKGROUND:
On January 27, 2015, your Board authorized an agreement with Crothall Laundry Services, Inc. to provide San Mateo Medical Center (SMMC) and Correctional Health Services with laundry linen rental services. This agreement has been amended multiple times. SMMC recently completed a Request for Proposals and chose a different laundry linen vendor.
DISCUSSION:
SMMC is requesting that your Board increase the funding amount by $75,000 to allow payment of the outstanding bills that were not included in the previous amendment’s not to exceed amount. SMMC and the vendor originally agreed upon on an estimate for the required volume of laundry services prior to the Omicron COVID-19 surge. With the recent Omicron surge, this estimate proved to be insufficient, and hence the reason why we are returning to your Board to increase the funding amount for this agreement.
This amendment is late due to the unanticipated bulk of services needed for the last two months of the agreement.
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).
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 $75,000 to an amount not to exceed $3,747,000 for the 85-month term. Funds in the amount of $75,000 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.