For City Council Meeting September 9, 2025
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Shama P. Curian, Director of Human Resources & Risk Management
Title
Request City Council to: (1) Approve a Professional Services Agreement With Carbon Health for Pre-Employment Medical Examinations and Other Employment-Related Medical Services in an Amount not to Exceed $240,000; and (2) Authorize the City Manager to Execute All Related Documents.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1) Approve a Professional Services Agreement with Carbon Health for pre-employment medical examinations and other employment-related medical services in the amount of $240,000; and
2) Authorize the City Manager to execute all related documents.
BACKGROUND
The City relies on qualified healthcare professionals to provide pre-employment and industrial medical services, ensuring that candidates meet specific job-related physical requirements. Pre-employment medical exams assess an individual's physical ability to determine if they can safely and effectively perform the essential job duties while adhering to ADA and HIPAA regulations. These exams confirm job fit, particularly for positions requiring specific standards like heavy lifting, bending, operating machinery, or for those sworn/safety positions.
The City's current medical facility, Concentra, provided these pre-employment medical exams for new hires. With the expiration of their 2-year contract, it was necessary to solicit new proposals for continued professional pre-employment medical services.
ANALYSIS/DISCUSSION
The Human Resources and Risk Management Department conducts pre-employment physicals during the background process for hiring new employees. All candidates are sent to an off-site medical clinic to receive medical screening to determine their ability to meet job requirements. On April 2, 2025, a Request For Proposals was issued for pre-employment and occupational medical services. The scope of work included pre-employment medical review and physicals for all classifications of employment and other medical services such as drug screening and TB testing. The scope also included a physical fitness examination program for firefighters and police officers as defined by their respective professional standards.
The solicitation was sent to 5 vendors, including Concentra, and opened through the Planet Bids portal, but only one vendor submitted a proposal.
The proposal submitted by Carbon Health was evaluated by an Evaluation Committee comprised of City Staff:
Paul Truffa Deputy Fire Chief
Lamont Quarker Police Lieutenant
Jonathan Palmer Police Sergeant
Mike Orona Deputy Director of Public Works
Shama Curian Director of Human Resources/Risk Management
The Evaluation Committee reviewed the proposal using the following criteria:
* Qualifications of the company and key personnel
* The company's service delivery philosophy and approach
* Experience working with similar-sized government agencies
* Demonstrated ability to successfully deliver on the needs identified in the RFP
* Sufficient resources to provide the requested professional services in the timeframe required
An interview with Carbon Health was held on May 29th, and on June 12th, a few members of the committee toured one of Carbon Health's facilities closest to the City of Rialto.
Although they were the only proposer, staff is comfortable recommending Carbon Health as they concisely demonstrated their ability to deliver quality pre-employment and occupational healthcare services, and their references supported their experience servicing large public agencies and municipalities in the surrounding area.
Carbon Health was established in 2015, and the organization operates 93 locations across the United States, including 65 in California and four located near the City of Rialto.
Their sites offer a wide range of occupational health services, including audiometry, pulmonary function testing, bloodwork, physical exams, tuberculosis testing, vision exams, drug screenings, and electrocardiograms.
Carbon Health is committed to upholding several important performance standards, including streamlining access to qualified medical services while enhancing the employee experience. Additionally, Carbon Health's proprietary, in-house Electronic Health Record platform includes a secure portal that allows immediate access to medical results and real-time communication with providers.
As such, staff is recommending authorization to enter into a contract with Carbon Health for $240,000 with a contract term of 3 years, with the option for 2 one-year extensions, subject to the approval of the City Manager. A copy of the proposed agreement with Carbon Health is included as Attachment 1, and the conflict disclosure form is included as Attachment 2.
ENVIRONMENTAL IMPACT
This request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA) Guidelines. A "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378 (b) (5) a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan: "Our City government will lead by example, and will operate in an open, transparent, and responsible manner that meets the needs of the citizens and is a good place to do business."
LEGAL REVIEW:
The City Attorney has reviewed the agreement and approved it as to form.
FINANCIAL IMPACT:
Operating Budget Impact
The annual cost of services provided by Carbon Health will be dependent upon the services provided and the total number of new hires sent each fiscal year, estimated to be about $100,000 with a 3% CPI escalator for the following year. By comparison, the annual cost of services provided by the City's prior consultant averaged $80,000 per year.
No additional appropriation is needed, as adequate funding was included in the adopted Fiscal Year 2025-26 Budget.
Capital Budget Impact:
This action has no impact on the Capital Budget.