To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Purchase Order with Meridian Leasing Corporation
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
RESCIND Board action of September 24, 2024 (C.74), which pertained to a purchase order with Meridian Leasing Corporation; and APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf of the Health Services Director, an amendment to purchase order #25782 with Meridian Leasing Corporation to increase the payment limit by $193,896 to a new payment limit of $391,896 and extend the term through August 31, 2026, and execute a Supplement to Master Lease for the period from January 1, 2024 through December 31, 2026 for lease and related maintenance of the ScrubEx dispensary machines at Contra Costa Regional Medical Center (CCRMC).
FISCAL IMPACT:
Approval of this action will not result in additional expenditures through the purchase order term ending August 31, 2026 due to rescinding the Board action of September 24, 2024, which was funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Meridian Leasing Corporation is a company that specializes in providing equipment leasing and financing solutions. They offer a wide range of services, including the leasing of medical, technology, industrial, and transportation equipment.
High-tech scrub dispensing systems are a convenient, effective, sanitary way to store scrubs for staff use in the hospital. These systems ensure that the scrubs are packed securely, thus effectively preventing cross-contamination while in storage. The scrub dispensary (ScrubEx) machines at CCRMC are manufactured by Meridian Leasing Corporation and were leased from Innovation Passion Automation (IPA), a distributor. The original agreement came with one year of preventive maintenance services that ended on September 22, 2023.
CCRMC attempted for several months to establish a separate contract for preventative maintenance and service agreements with IPA but was unable to reach an agreement on the contract language. As a result, CCRMC is pivoting to establishing a preventive maintenance services contract with Meridian Leasing Corporation instead.
On May 12, 2020, the Board of Supervisors approved item C.64 to execute a master lease agreement and lease supplement with Meridian Leasing Corporation, in an amount not to exceed $3,382,011, for the lease of the Omnicell automated dispensing cabinets at CCRMC and Health Centers for the period from September 1, 2020 through August 31, 2027, subject to approval by the County Administrator and approval as to form by County Counsel.
On August 10, 2022, the Purchasing Agent approved the use of Meridian Leasing Corporation and executed purchase order #25782 in an amount not to exceed $198, 000 for the period of August 1, 2022, through July 31, 2025 for the rental of scrubEx scrub dispenser for CCRMC, which included one year coverCare and hosting.
On May 22, 2024, the Purchasing Agent approved the continued use of Meridian Leasing Corporation for the rental of scrub dispensers including parts, labor, upgrades and unlimited phone support.
On September 24, 2024 the Board of Supervisors approved agenda item C.74 to execute a purchase order amendment with Meridian Leasing Corporation and execute a Supplement to Master Lease for the period from September 1, 2024 through August 31, 2026. However, the vendor did not accept the Supplement provided and issued another Supplement effective January 1, 2024. Approval of this action will rescind the previous staff report and allow the Purchasing Agent to execute the Supplement to Master Lease term for the period of January 1, 2024 through December 31, 2026.
The Master Lease Agreement includes agreeing to limitation of liability and to indemnify, defend, and hold harmless Meridian Leasing Corporation. Approval of this request will allow Meridian Leasing Corporation to provide preventive maintenance service for the scrub dispensary.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, it may cause significant disruptions to operational workflows, particularly in environments such as operating rooms where preventing cross-contamination is paramount prior to surgical procedures. Healthcare personnel may encounter delays or inefficiencies in preparing for patient care activities, thereby affecting overall operational efficiency.