Title
Authorize payment to Modular Devices for outstanding invoices billed to Natividad totaling $119,500 for the month of July 2018 for the Lease Agreement for a mobile Computerized Tomography (CT), a mobile Angiography/Interventional Radiology (IR) Laboratory, and a mobile Magnetic Resonance Imaging (MRI) unit which had a term of August 1, 2013 through July 31, 2018.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize payment to Modular Devices for outstanding invoices billed to Natividad totaling $119,500 for the month of July 2018 for the Lease Agreement for a mobile Computerized Tomography (CT), a mobile Angiography/Interventional Radiology (IR) Laboratory, and a mobile Magnetic Resonance Imaging (MRI) unit which had a term of August 1, 2013 through July 31, 2018.
SUMMARY/DISCUSSION:
On July 24 the Board of Supervisors approved a new Lease Agreement with Modular Devices for the rental of three mobile units for CT, IR Lab and MRI. This new agreement has a term of August 1, 2018 through July 31, 2020 and a total amount of $2,868,000. This recent approved agreement replaced an older agreement for the same three mobile units which had a term August 1, 2013 through July 31, 2018 and a total amount of $5,366,500.
The total amount for the older and now expired agreement of $5,366,500 had been established incorrectly by both parties to the agreement during Amendment No. 3; it was short by $119,500 which is exactly one month of costs for the 3 mobile units:
|
Mobile IR Lab: |
$31,500 |
per month |
|
Mobile CT: |
$40,000 |
per month |
|
Mobile MRI: |
$48,000 |
per month |
|
Total |
$119,500 |
per month |
After paying the June 2018 invoices the total agreement amount of $5,366,500 had been fully expended. At that time Natividad discovered the error that the total amount was short by one month’s worth of costs. Therefore this request is asking for authority to pay the July 2018 invoices.
There is no amendment associated with this request because the agreement that covered the rental for July 2018 has now expired and was replaced with a new agreement.
OTHER AGENCY INVOLVEMENT:
County Counsel’s office and the Auditor-Controller’s office were both provided a copy of this Board Report for review. This request has also been reviewed and approved by NMC’s Finance Committee on September 27, 2018 and by its Board of Trustees on October 5, 2018.
FINANCING:
The cost for this request is $119,500, all of which was accrued for fiscal year 2018-19.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The lease agreements for the mobile units supports the County strategic initiative for Health and Human Services by offering advanced radiology procedures (MRI, CT and IR) to the residents of Monterey County while the Radiology Department is undergoing construction. These mobile trailers ensure that services are not interrupted during the construction project.
__ Economic Development
__ Administration
X Health and Human Services
__ Infrastructure
__ Public Safety
Prepared by: Heidi Dormody, Laboratory Manager, 772-7660
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
Modular Devices Agreement (previous agreement which expired 7-31-18)
Modular Devices Amendment No. 1 (previous agreement which expired 7-31-18)
Modular Devices Amendment No. 2 (previous agreement which expired 7-31-18)
Modular Devices Amendment No. 3 (previous agreement which expired 7-31-18)
Spend Sheet (previous agreement which expired 7-31-18)
Attachments on file with the Clerk of the Board