Title
a. Adopt Resolution to Amend the Natividad Medical Center FY 2014-15 Adopted Budget (Unit 9600) to Add the Following Positions: 2.0 FTE Management Analyst II, and 2.0 FTE Buyer II; and
b. Authorize the County Administrative Office to Incorporate the Above Changes in the NMC FY 2014-15 Adopted Budget (Unit 9600). (ADDED VIA ADDENDUM)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Adopt Resolution to Amend the Natividad Medical Center FY 2014-15 Adopted Budget (Unit 9600) to Add the Following Positions: 2.0 FTE Management Analyst II, and 2.0 FTE Buyer II; and
b. Authorize the County Administrative Office to Incorporate the Above Changes in the NMC FY 2014-15 Adopted Budget (Unit 9600).
SUMMARY:
Natividad Medical Center recommends the addition of the following critically-needed positions in the hospital's Materials Management/Contracts Division in order for NMC to be successful in processing its high volume of contracts documents in a timely manner.
Revised Total to
FY 2014-15
FTE Change Classification Title Class Code Adopted Budget
Add 2.0 Management Analyst II 14C30 4.0
Add 2.0 Buyer II 14E20 3.0
DISCUSSION:
The NMC Materials Management/Contracts Division currently negotiates, writes, and manages the entire contract process for approximately 350 service contracts per year. This number has grown steadily over the past several years. NMC Contracts staff is also responsible for both entering and approving over 1,100 financial transactions per year associated with contract encumbrances for the entire hospital in the County's ERP Finance System. The current contracting workload at NMC is processed by 3 FTE Management Analyst I/II, 1 FTE Management Analyst III and 2 temporary county employees. However, at this time the staff is not able to get to RFPs (Request for Proposals) as requested by counsel. NMC believes that with additional staff it will be able to meet the following contracts division performance goals:
1) Process 350 contracts accurately and in a timely manner;
2) Improve the quality of contracts documents and the scope of work within them;
3) Improve the quality of the purchase orders submitted;
4) Increase the number of RFPs issued from two per year to twenty-five per year;
5) Update and maintain the NMC Contracts/Purchasing Manual, including procurement policy changes specific to the hospital's needs;
6) Update and maintain the NMC RFP and Agreement template; and
7) Implement a contracts management system to provide compliance monitoring and tracking.
An audit of the NMC Materials Management Department in 2012 identified that the staffing level for the NMC Contracts Division was very low in comparison to other County department staff levels, such as the Health Department. Although additional people were hired into temporary positions in the contracts division since that time to address the urgent need, additional permanent positions are necessary in order for NMC to be successful in consistently meeting its aforementioned performance goals.
OTHER AGENCY INVOLVEMENT:
None.
FINANCING:
The total of the above action results in an increase of approximately $103,300 in salary and benefits costs to the NMC FY 2014-15 Budget (Unit 9600). The annualized increase in salary and benefits costs is approximately $425,596. The additional positions requested in this action are included in the requested NMC FY 2015-16 Budget (Unit 9600) for the upcoming fiscal year.
This action has no impact on the General Fund.
Prepared by: Approved by:
Janine Bouyea, NMC HR Administrator
Gary Gray, DO, Interim Chief Executive Officer
Attachments: Resolution