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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/03/2013 - FIRST READING OF ORDINANCE NO. 122, 2013, AUTHORIZDATE: September 3, 2013 STAFF: Gerry Paul AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 16 SUBJECT First Reading of Ordinance No. 122, 2013, Authorizing the City Manager to Extend the Term of the Agreement Between the City and Mayo Foundation for Health Risk Assessment Software for the City’s Wellness Program. EXECUTIVE SUMMARY The purpose of this item is to request a one-year extension of the contract with the Mayo Foundation for Medical Education and Research (Mayo) to provide services associated with the assessment and management of existing and potential health risks of City employees from April 1, 2014 to March 31, 2015, with the option to extend for additional one (1) year periods not to exceed four (4) additional one-year renewals. This extension will allowed continued use of services provided by Mayo while staff assesses costs, benefits, services and other options associated with an Onsite Employee Medical Clinic and the potential to consolidate health risk assessment services now provided by Mayo with the Clinic. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 2008, the City of Fort Collins utilized a competitive bid process and contracted with Mayo to provide an online portal where City employees enter personal health information, access healthcare, nutrition, exercise information, and track behavior modifications. Health data is gathered, reported to employees, aggregated and analyzed by Human Resources staff to assess employees’ current and potential future health risks. Additional services provided by Mayo include an educational website designed specifically for City employees and one-on-one coaching programs designed to help manage or prevent disease. The Mayo Clinic platform is used by over 90% of the City’s employees. Some organizations of similar size to the City are incorporating these services into an Onsite Employee Medical Clinic. There are possible benefits (consolidation of health risk data, additional cost savings, coordinated care) associated with this integrated model. In an effort to consolidate services and enhance program effectiveness, the City has requested information from vendors interested in providing clinic services as well as those offered by Mayo. Vendors have been asked to respond to the City’s interest in evaluating proposals that incorporate these services into a Clinic model. Extending the contract for one year, with the option for additional extensions up to four, more years, will allow continued use of services provided by Mayo while staff assesses costs, benefits, services and other options associated with an Onsite Employee Medical Clinic and the potential to consolidate health risk assessment services now performed by Mayo with the Clinic. FINANCIAL / ECONOMIC IMPACTS Funds are included in the 2013 and 2014 budgets to cover the cost of extending this contract. ORDINANCE NO. 122, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO EXTEND THE TERM OF THE AGREEMENT BETWEEN THE CITY AND MAYO FOUNDATION FOR HEALTH RISK ASSESSMENT SOFTWARE FOR THE CITY’S WELLNESS PROGRAM WHEREAS, following a competitive bidding process in April 2008, the City entered into an Agreement (the “Agreement”) with the Mayo Foundation for Medical Education and Research, a Minnesota nonprofit corporation ( “Mayo”) to provide Health Risk Assessment software for the City’s wellness program; and WHEREAS, the Agreement’s original expiration date was March 31, 2013; and WHEREAS, by the adoption of Ordinance No. 038, 2013, the Agreement term was extended from five years to six years with a revised expiration date of March 31, 2014; and WHEREAS, the City has contracted with Mayo for the last five years and Mayo has satisfactorily performed under the Agreement; and WHEREAS, in May, 2013, the City initiated a Request for Proposal as a first step in assessing the viability of an Employee Onsite Medical Clinic Service; and WHEREAS, City staff believes it is possible to consolidate the gathering of Health Risk Assessment data within the scope of Employee Onsite Medical Clinic Services, with possible cost savings, efficiencies, and effectiveness associated with consolidating the two activities; and WHEREAS, the City desires to extend the term of the Agreement with Mayo for a period of one year, with an option for such future extensions as may be required to evaluate the costs, benefits, services and other options associated with incorporating the Health Risk Assessment with various Employee Onsite Medical Clinical models; and WHEREAS, because of the time and resources required to complete a competitive process, the Purchasing Agent has determined that a competitive process cannot reasonably be used prior to the extended expiration of the current agreement with Mayo and, if used, would result in substantially higher cost to the City and may result in the impairment of the City’s administrative functions, and the Purchasing Agent has submitted the requisite justification for this determination to the City Manager for approval; and WHEREAS, the City Manager has reviewed and approved the justification for this contract extension; and WHEREAS, Section 8-186(a) of the City Code provides that no contract for services, including renewals, shall be made by the City for a period longer than five years, unless authorized by ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, that the City Manager is hereby authorized to execute on behalf of the City a one-year term extension to the Agreement with Mayo to March 31, 2015, for the employee health wellness program, as well as the option of up to four additional one-year extensions, in order to accommodate development of an enhanced comprehensive health wellness solution. Introduced, considered favorably on first reading, and ordered published this 3rd day of September, A.D. 2013, and to be presented for final passage on the 17th day of September, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ Chief Deputy City Clerk Passed and adopted on final reading on the 17th day of September, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk