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Home My WebLink AboutMINUTES - 03091993 - 1.41 1 -41 TO: BOARD OF SUPERVISORS 5F �_ Contra FROM: Barton J. Gilbert Director of General Services Costa DATE: February 23, 1993 �`�' _ County SUBJECT: Cooperative Purchasing Agreement with County of Los Angeles for Procurement of Pharmaceutical Goods SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION I . RECOMMENDATIONS Approve contract amendment to extend contract term through December 31, 1997 for cooperative purchasing agreement with the County of Los Angeles Health Services Purchasing Group for the procurement of drug and pharmaceutical goods . II . BACKGROUND AND FINANCIAL IMPACT This contract extension will allow the County to continue to obtain the best possible prices for pharmaceutical goods.. The Purchasing Group consists of California counties cooperatively purchasing to attain the highest discount available based on volume of business . Contra Costa County' s current discount pricing is based on an annual dollar sales of approximately $5 . 0 million. By participating in the Purchasing Group, the discount pricing will be based on annual dollar sales of over $70 million. The cost of joining the Purchasing Group is $2,000 annually for the Health Services Department. The expected cost savings to the County, including staff time, will be approximately $50,000 for 1993. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON March 9. 1993 APPROVED AS RECOMMENDED h OTHER The Chair of the Board is AUTHORIZED to execute the above mentioned agreement. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT - AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISOR N THE DATE SHOWN. CC: Contact: B. J. Gilbert ( 313-7100) ATTESTED Office of the County Administrator PHIL BATCHELOR.CLERK OF THE BOARD OF Health Services Department SUPERVISORS AND COUNTY ADMINISTRATOR General Services--Purchasing Div. M3E2 (10/88) BY DEPUTY 1 -41 Contract# PURCHASING GROUP SERVICES AGREEMENT Amendment No. 1 THIS AGREEMENT is made and entered into this day of , 19 , by and between COUNTY OF LOS ANGELES, a political subdivision of the State of California (hereafter "Los Angeles County") and COUNTY OF CONTRA COSTA, also a political subdivision of the State of California (hereafter "Member") . WHEREAS, reference is made to that certain document entitled "PURCHASING GROUP SERVICES AGREEMENT" dated September 14, 1992, and further identified as County Agreement No. 66462 (hereafter "Agreement") ; and WHEREAS, it is the intent of the parties hereto to amend Agreement to extend the term, to revise purchasing group membership fee language, and to add a provision for mutual indemnification. NOW, THEREFORE, the parties hereby agree as follows: 1. This Amendment shall be effective on January 1, 1993 . 2. The word "Member" shall henceforth be used in Agreement to identify the "County of Contra Costa" as a party to Agreement and as a participant in the Los Angeles County Health Services Purchasing Group, and shall be substituted in place of the words "Contra Costa County" wherever they appear in Agreement. 3 . Paragraph 1, TERM, shall be revised as follows: "1. TERM: The term of this Agreement shall commence on the date Agreement is approved by the Los Angeles County Board of Supervisors and shall continue in full force and effect to and including the 31st day of December, 1997 . Unless sooner cancelled or revoked, this Agreement shall finally expire at midnight on December 31, 1997 . Notwithstanding the above, this Agreement may be canceled or terminated at any time by either party, with or without cause, upon giving at least ninety (90) days prior written notice thereof to the other party. " 4 . All of the language in Paragraph 3 , PURCHASING GROUP MEMBERSHIP FEE, after the first subparagraph thereof, shall be deleted and the following new language inserted in its place: "The same annual fee is due and payable to Los Angeles County on January 1, 1991, January 1, 1992 , and January 1, 1993 if this Agreement is in effect on those dates. If this Agreement remains in effect for any additional one (1) year contract periods, Member shall continue to pay Los Angeles County an annual fee which will be due and payable on January 1 of each such year. The annual fee shall be the same as the original fee, as defined above, unless adjusted by Director from time to time in accordance with the following procedures: The annual fee may be adjusted if Los Angeles County's costs to administer the -2- Purchasing Group program increases. Any such increase in fees shall be limited to a maximum increase of no greater than five percent (5%) in any calendar year. Additionally, if there is an increase or decrease in the number of acute care beds at Member's participating hospital(s) , determined as of July 1 of the prior year, Member' s subsequent annual membership fee shall be increased or decreased appropria- tely, but only in accordance with the per bed rate and subject to the maximum and minimum amounts set forth in the first subparagraph of this Paragraph. Written notice of all proposed fee increases or decreases, if any, and a copy of the Purchasing Group's anticipated operating budget for the next calendar year, shall be provided Member by Director at least one hundred twenty (120) days prior to the new one (1) year term for which the revised fee would apply: Membership fees shall be sent to: Health Services Purchasing Group (HSPG) c/o ISD/Purchasing and Central Services 2500 South Garfield Avenue City of Commerce, California 90040 Attention: HSPG, Manager Beginning with the 1993 calendar year term, Los Angeles County shall return a portion of Member's annual membership fee paid for any calendar year during which Agreement is cancelled or terminated. The actual dollar amount to be returned to Member in such an event shall be determined by Director by dividing the number of calendar months of the -3- year existing prior to the month of cancellation or termination by twelve (12) , multiplying the result by the amount of the paid annual fee, and by subtracting from the resultant figure a return processing fee of One Hundred Dollars ($100) . Records reflecting payment of membership fees paid by Member and by all other Purchasing Group members shall be maintained by the Purchasing Group Management Staff (hereafter "Group Management Staff") . " 5. A new Paragraph No. 14, INDEMNIFICATION, shall be added to Agreement as follows: 1114 . INDEMNIFICATION: A. Member agrees to indemnify, defend, and hold harmless County, its officers, employees, and agents from and against any and all liability or expense, or both, including defense costs and legal fees, and claims for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, or property damage arising from or connected with the acts or omissions of Member, its officers, employees, or agents in the performance of this Agreement. However the amount of the indemnification provided hereunder shall not exceed Five Million Dollars ($5, 000, 000) during the duration of this Agreement. -4- B. Los Angeles County agrees to indemnify, defend, and hold harmless Member, its officers, employees, and agents from and against any and all liability or expense, or both, including defense costs and legal fees, and claims for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, or property damage arising from or connected with the acts or omissions of County, its officers, employees, and agents in the performance of this Agreement. However, the amount of the indemnification provided hereunder shall not exceed Five Million Dollars ($5, 000, 000) during the duration of this Agreement. " 6. Except for the changes set forth hereinabove, Agreement shall not be changed in any other respect by this Amendment. IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused this Amendment to be subscribed by its / -5- Director of Health Services, and Member has caused the same to be subscribed in its behalf by its duly authorized officer, the day, month, and year first above written. COUNTY OF LOS ANGELES By Robert C. Gates Director of Health Services APPROVED AS TO FORM BY THE OFFICE OF THE COUNTY COUNSEL DE WITT W. CLINTON County Counsel APPROVED AS TO CONTRACT ADMINISTRATION: APPROVAL AS TO PROGRAM: County of Los Angeles County of Los Angeles Department of Health Services Purchasing and Central Services By By Chief, Contracts and Grants Deputy, Purchasing Agent Services Health Services Purchasing Group By HSPG, Manager GI: ft 12/14/92 WP51/AMEND/PGS -6- CHAIRMAN BOARD OF SUPERVISORS Coir I nn COSTA WuNTTY CLERK, BOARD F ERV O� COUNTY OF �) �of the Board of By my Administrator Deputy m 4 Printed Name APPROVED AS TO FORM: COUNTY COUNSEL COUNTY OF, i By 4i Deputy �L�.✓1�$ �V A L�Sr Printed Name PURCHASING AGENT COUNTY OF /L t. % By Deptiley, Purchasing Agent BARTON J. GILBERT, DIRECTOR Or GENERAL SERVICES Printed Name —7— +�y of ws yc FG 11C • GIIFOR ROBERT C. GATES, Director COUNTY OF LOS ANGELES DEPARTMENT OF HEALTH SERVICES 313 N. Figueroa,Los Angeles,CA 90012 (213) 240-8179 January 12, 1993 Betty A. Frith, Buyer Contra Costa County General Services Department 10 Douglas Drive Martinez, CA 94553 Dear Betty: APPROVED PURCIIASING GROUP SERVICES AGREEMENT AMENDMENT FORM-ISSUANCE TO COUNTY FOR SIGNATURE Enclosed are six(6)copies of the above referenced agreement amendment. Five(5)copies of the amendment should be signed with an original signature by the appropriate parties and must include the signature of your County Counsel. Signed amendments should be returned to me as soon as possible at the following address: Department of Health Services Contracts and Grants Division 313 North Figueroa Street, 6th Floor- East Los Angeles, California 90012 Attention: Mr. Gary T. Izumi Contract Administrator The copy labeled "advance copy" should be retained for your records, pending receipt of a fully signed copy. Note,that the enclosed amendment form was approved by the Los Angeles County Board of Supervisors (LACBOS)on January 12, 1993. Any changes or revisions to the enclosed amendment will require approval by the LACBOS of a new agreement incorporating your changes. In that event,your membership in the Purchasing Group will be suspended for the period commencing January 1, 1993,and ending on the date the LACBOS approves the new purchasing group services agreement with your county. If you have any questions,please call me at(213)240-8179. Very truly you Gary T. Izumi Contract Administrator Contracts and Grants Division GTI:gti cc: Nilofar Amier John Ricks CLERK, BOARD OF SUPERVISORS COUNTY OF By Deputy Printed Name APPROVED AS TO FORM: COUNTY COUNSEL COUNTY OF, � is By /l;' �'' �. Deputy -� Printed Name PURCHASING AGENT COUNTY OF By OeruPurchasing Agent BARTON J. GILBERT, DIRECTOR Or GENIErRAL SERVICES Printed Name -7-