Title
Consider a memorandum/resolution authorizing an agreement with Freedom Urgent Care for medical services at the estimated cost of $65,000 for FY 2024.
Body
DATE: August 20, 2024
TO: Kent Cagle, City Manager
FROM: Eva Bark, Executive Director of Human Resources
SUBJECT: Authorize Freedom Urgent Care Agreement
BACKGROUND AND FINDINGS:
The City of Killeen is committed to recruiting, retaining, and advancing qualified and competent applicants and employees, and complying with all applicable employment laws. The City of Killeen utilizes Freedom Urgent Care for pre-employment physicals, DOT and non-DOT physicals, DOT and non-DOT drug screening, Worker’s Compensation, DOT and non-DOT breath alcohol screening, and various vaccinations if applicable.
Freedom Urgent Care is the only local vendor in the area that performs the required services to meet our specific needs and pre-employment requirements. Freedom Urgent Care has been a partner with the City of Killeen for over six (6) years and has two locations within Killeen and an additional location in Harker Heights, allowing for ample convenience and availability for our employees - current and prospective.
On September 17, 2018, the City of Killeen signed an agreement with Freedom Urgent Care for the services stated above. Budgets are allocated across multiple professional services accounts for each fund. The majority is paid from the Human Resources Professional Services account, number 010-2305-418.47-99.
For FY 2024, the City projected to hire two hundred twenty (220) employees, and we are now projecting closer to three hundred (300) new hires. After the FY 2024 budget was approved, Freedom Urgent Care announced price increases to their services. The most impactful price increase was the pre-employment physicals for Civil Service positions (Police and Fire), these increased by $75 per physical. Based on historical hire data, the City budgeted for fifty-seven (57) Civil Service physicals in FY 2024, and year-to-date, Freedom Urgent Care has processed seventy-seven (77) Civil Service physicals, and the City has hired sixty-four (64) Police Officers and Fire Rescue Officers. Of the seventy-seven (77) Civil Service physicals, approximately eleven (11) candidates did not meet all the criteria of the hiring process and therefore were not employed.
Figures are subject to change due to the variability in staffing levels, turnover rates, and other dynamic factors that impact the labor market, which accounts for the notable disparity between budgeted funds and actual expenses. This is also true for Non-Civil Service physicals.
With the unforeseen increase of both Civil Service and Non-Civil Service employees hired in FY 2024, in conjunction with the increased costs of individual services with Freedom Urgent Care, we are seeking council authorization as the cost of services will exceed $50,000. Purchasing policies require City Council approval for contracts $50,000 or more.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
Staff recommends authorizing an agreement with Freedom Urgent Care for medical services. Freedom Urgent Care has provided the city with exceptional service, which has fostered a strong relationship with the City since 2018. Additionally, Freedom Urgent Care is a local establishment and provides the precise services the City requires.
CONFORMITY TO CITY POLICY:
Yes.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
Approximately $65,000 for FY 2024, and approximately $217,800 for FY25, 26, ending August of 2027.
Is this a one-time or recurring revenue/expenditure?
Recurring.
Is this revenue/expenditure budgeted?
Yes, funds are available in the General Fund Human Resources account 010-2305-418.47-99.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
Staff recommends authorizing the expenditure for services with Freedom Urgent Care to exceed $50,000.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Medical Services Fee Schedule
Memorandum of Understanding
Presentation