Title
a. Approve and authorize the Director of Health Services or designee to execute Amendment No. 2 to Standard Agreement No. A-17066 with The Data Center, LLC for the provision of Health Insurance Portability Accountability Act compliant mailing and distribution services to increase the amount by $20,000 for a new revised total Agreement amount of $105,000 for the same term of September 1, 2024 through June 30, 2027;
b. Approve and authorize the Director of Health Services or designee to sign one future amendment to this Agreement where the total amendment does not exceed 10% ($7,000) of the original Agreement amount, does not significantly alter the scope of work, and does not exceed the maximum amount of $112,000; and
c. Approve and authorize the Contracts and Purchasing Officer or their designee to execute future Amendments to the agreement where the Amendments do not significantly change the scope of work, do not exceed an aggregate amount of $200,000 and fall within the signing authority of the Contracts and Purchasing Officer.
Report
RECOMMENDATION:
It is recommended that the County of Monterey Board of Supervisors:
a. Approve and authorize the Director of Health Services or designee to execute Amendment No. 2 to Standard Agreement No. A-17066 with The Data Center, LLC for the provision of Health Insurance Portability Accountability Act compliant mailing and distribution services to increase the amount by $20,000 for a new revised total Agreement amount of $105,000 for the same term of September 1, 2024 through June 30, 2027;
b. Approve and authorize the Director of Health Services or designee to sign one future amendment to this Agreement where the total amendment does not exceed 10% ($7,000) of the original Agreement amount, does not significantly alter the scope of work, and does not exceed the maximum amount of $112,000; and
c. Approve and authorize the Contracts and Purchasing Officer or their designee to execute future Amendments to the agreement where the Amendments do not significantly change the scope of work, do not exceed an aggregate amount of $200,000 and fall within the signing authority of the Contracts and Purchasing Officer.
SUMMARY:
The Data Center, LLC provides Health Insurance Portability and Accountability Act (HIPAA) compliant printing, mailing, and distribution services that have been previously utilized by both the Environmental Health and Behavioral Health Bureaus of the County of Monterey Health Department. Amendment No. 2 amends the existing Agreement to add funding only, with no change to the current scope of services. The additional funding will support the Administration Bureau by enabling HIPAA compliant electronic notification services, including secure email distribution for privacy and security breach notifications. This amendment ensures the Health Department can meet required state and federal notification timelines while maintaining confidentiality and regulatory compliance.
DISCUSSION:
The Data Center, LLC has provided HIPAA compliant printing and mailing services to the County of Monterey Health Department since 2013 and is currently utilized by both the Environmental Health and Behavioral Health Bureaus for the distribution of confidential notices, letters, and program materials. These services have supported compliance with state and federal privacy requirements, including secure handling of protected health information.
Amendment No. 2 amends the Agreement to increase funding only and does not modify the existing scope of services. The additional funding will support the Administration Bureau’s need for HIPAA compliant electronic notification services, including secure email distribution, to meet privacy and security breach notification requirements under state and federal law. This capacity is necessary to ensure timely notification to affected individuals and regulatory agencies, particularly in the event of incidents involving large volumes of confidential information.
Approval of this amendment will ensure the Health Department maintains the operational capacity and compliance infrastructure needed to respond promptly to privacy and security incidents while safeguarding confidential information across bureaus.
OTHER AGENCY INVOLVEMENT:
The Offices of County Counsel and the Auditor-Controller have reviewed and approved this Agreement as to form and fiscal provisions, respectively.
FINANCING:
Appropriations for this agreement are included in the Health Department’s Fiscal Year (FY) 2025-26 Adopted Budgets for the Administration, Behavioral Health, and Environmental Health Bureaus (001-4000-8438-HEA014, 023-4000-8410-HEA012 and 001-4000-8117-respectively). For the FYs out, provisions will be made in the Requested Budget for the appropriate year.
BOARD OF SUPERVISORS STRATEGIC GOALS:
This recommendation supports the Board of Supervisors Strategic Plan by strengthening internal administrative systems that ensure regulatory compliance, risk management, and continuity of essential Health Department operations.
___ Well-Being and Quality of Life
___ Sustainable Infrastructure for the Present and Future
___ Safe and Resilient Communities
___ Diverse and Thriving Economy
_X_ Administrative (This action supports administrative operations required to comply with state and federal privacy laws, including HIPAA breach notification requirements, and aligns with Board policies governing risk management, regulatory compliance, and the protection of confidential information.)
Prepared by: Shiba Sumeshwar, Management Analyst III, 755-4018
Approved by: Elsa Mendoza Jimenez, Director of Health Services, 755-4526
Attachments:
Board Report
Amendment No. 2
Board Order (Amd. No. 1)
Amendment No. 1
Board Order (Agreement)
Agreement