Title
Approve and authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute Amendment No. 3 to the Agreement (A-12438/MYA723) with B.E. Smith Inc. for Interim Employee Services at NMC, extending the Agreement to December 31, 2014 and adding $639,300 for a revised total Agreement amount not to exceed $1,498,500 in the aggregate.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors approve and authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute Amendment No. 3 to the Agreement (A-12438/MYA723) with B.E. Smith Inc. for Interim Employee Services at NMC, extending the Agreement to December 31, 2014 and adding $639,300 for a revised total Agreement amount not to exceed $1,498,500 in the aggregate.
SUMMARY/DISCUSSION:
NMC entered into an agreement with B.E. Smith in January 2013, for $100,000 to provide NMC with a Chief Nursing Officer. Then on April 16, 2013, the Board of Supervisors approved Amendment No. 1 in the amount of $576,200 for a revised total Agreement amount of $676, 200 to continue employment services at Natividad Medical Center. Amendment No. 1 provided NMC the ability to continue the employment services of the interim Chief Nursing Officer and to add one additional Nursing Manager for up to a six month period.
Due to the difficulty of filling the Chief Nursing Officer and the Director of Surgical Services positions, NMC requested and the Board of Supervisors approved Amendment No. 2 on February 11, 2014 in the amount of $183,000 for a revised total amount of $859,200. Amendment No. 2 provided NMC with additional funds to allow employment services to be continued while NMC continued to recruit for a permanent Chief Nursing Officer and Director of Surgical Services.
NMC is now requesting that the Board approve Amendment No. 3 to add additional funds which would allow NMC to bring in a third interim manager to oversee the Engineering Department for a period of up to one year. This request is due to the resignation of a high level manager in that department in February of 2014. NMC is requesting an additional $639,300 be added to the agreement for a new maximum total amount of $1,498,500.
B.E. Smith is a nationally recognized expert in hospital interim management. Due to the difficulty anticipated with filling these positions, NMC is requesting an increase in the original requested contract amount. This increase will provide NMC with the ability to have an interim serve as the Director of Engineering for a period of up to one year.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Amendment No.3 as to legal form and risk provisions. Auditor-Controller has reviewed and approved this Amendment No.3 as to fiscal provisions. The CAO-Budget and Analysis Division has advised to inform the BOS the spending authority (appropriations) associated with NMC's FY 2014 Adopted Budget has been exceeded and approval and authorization for modification of NMC's appropriation budget should be presented to the BOS. Since NMC is an Enterprise Fund, this does not prevent continued expenditures and is not a legal requirement, but it is considered good public policy, transparency and fiscal management. The Amendment has also been reviewed and approved by Natividad Medical Center's Finance Committee (4.24.14) and Board of Trustees (5.2.14).Executive meeting.
FINANCING:
The cost for this Amendment No. 3 is $639,300, of which $639,300 is included in the Fiscal Year 2013/2014 adopted budget. NMC is confirming its appropriations position and if its spending authority has been exceeded will return to the Board. There is no impact to the General Fund.
Prepared by: Janine Bouyea, H.R. Director, 783-2701
Approved by: Harry Weis, Chief Executive Officer, 783-2553
Attachments: Amendment No.3, Renewal and Amendment No. 2, Original Agreement and Amendment No. 1, Spend Sheet.
Attachments on file with the Clerk to the Board Office