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Consent-General Government # 15.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Approve amendments to extend emergency hotel agreements with several hotels through August 31, 2020 and approve an amendment with Avellino Labs USA, Inc. to extend a COVID-19 testing agreement through September 30, 2020. (No general fund impact) (Rinde/Pistochini) |
| Recommended Action |
- Authorize the purchasing agent to approve amendments to extend emergency hotel agreements through August 31, 2020 with an option to extend agreements through December 31, 2020 with the following:
- La Quinta Inn of Davis up to a new maximum of $909,874 (Original Agr. No. 20-59)
- Econo Lodge of Woodland up to a new maximum of $563,640 (Original Agr. No. 20-61)
- Crest Motel of West Sacramento up to a new maximum of $212,800 (Original Agr. No. 20-63)
- Rodeway Inn Capitol of West Sacramento up to a new maximum of $954,180 (Original Agr. No. 20-64); and
- Approve amendment with Avellino Labs USA, Incorporated to extend term through September 30, 2020 and increase maximum compensation to $1,505,000.
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| Strategic Plan Goal(s) |
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Thriving Residents |
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| Reason for Recommended Action/Background |
On April 28, 2020 the County established eight emergency hotel agreements to house vulnerable populations during the COVID-19 pandemic. These agreements established leases for hotel rooms through July 31, 2020. Since that time, the County and local cities determined that there is a need to continue some of the leases to meet the needs of the cities through August 31, 2020 with an option to extend the leases on a month-to-month basis through December 31, 2020. These four leases reserve 96 rooms during the term for the County's use.
In July 2020, the County entered into an agreement with Avellino Labs USA, Incorporated, to provide COVID-19 collection kits and testing services. The County is responsible for administrating the tests and has done so at a number of locations throughout the County. Avellino was selected due to their immediate availability while the County prepares to conduct a competitive solicitation for ongoing needs after this contract ends. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The Department of Financial Services collaborated with the County Counsel's Office and the Health and Human Services Agency. |
| Competitive Bid Process |
The initial contracts for emergency hotel leases were awarded based in order of their willingness to participate in the program, until the maximum aggregate number of rooms required was met. Amendments for these hotels were selected in consolidation with the local cities based on the ability to meet ongoing need.
The initial contract with Avellino Labs was sole-sourced based on the ability to quickly meet the need of the County and fit within the County's testing plan. The County intends to release a competitive solicitation for future COVID-19 testing needs for a new contract to begin October 2020. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
The amendments for both the emergency hotel agreements and the Avellino contract will be funded using CARES funds. These expenses were reflected in the CARES expenditure plan presented to the Board of Supervisors on July 21, 2020. All the contracts contain early termination provisions and other means to mitigate financial risk should the State decide to reallocate funding and/or certain activities become unallowable. As with any federal funded program, there exists a risk that a portion of or all of the contracted expenses could be disallowed in the course of an audit.
The emergency hotel agreements contain an option that allows the County to extend the lease on a month-to-month basis through December 31, 2020. Should all the lease options be exercised, the County's additional expenditure can be up to $1,087,996 through the end of December 2020. All the leases contain provisions that further reduce the County's financial risk by compensating the hotel owners only for occupied rooms. Rooms that are unoccupied will not be billed to the County, reducing overall program costs. |
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