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SR 07-24-2018 3D City Council Report City Council Meeting: July 24, 2018 Agenda Item: 3.D 1 of 3 To: Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management Subject: Contract Modifications with ehs International, Inc. (“EHS”) and Global Environmental Network, Inc. (“GEN”) to Supply Required Cal/OSHA Safety Training to City Employees Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute first modifications for two employee safety-training Agreements: 1. Modification to agreement #4224 in the amount of $263,360 with ehs International, Inc. (“EHS”) a California based company, for Cal/OSHA safety training. This will result in a 5-year amended agreement with a total contract amount not to exceed $438,260, with future year funding contingent on Council budget approval. 2. Modification to agreement #4225 in the amount of $183,480 with Global Environmental Network, Inc. (“GEN”), a California based company, for Cal/OSHA safety training. This will result in a 5-year amended agreement with a total contract amount not to exceed $305,800, with future year funding contingent on Council budget approval. Summary In order to fulfill Cal/OSHA training requirements and assure that City employees in all fields of work receive specialized safety training, the City augments its in-house Safety Program with private safety consultants. Through their current two -year contracts, both EHS and GEN have been teaching safety classes since September 2016. Staff recommends the City enter into modified five-year agreements with each firm in the amounts of $438,260 (EHS), and $305,800 (GEN). Discussion In September 2016, under City Manager authority and following a competitive selection process, EHS and GEN were both picked to supply required Cal/OSHA training to City employees. To take advantage of the expertise of both EHS and GEN, and for greater flexibility, staff chose to enter into agreements with both companies for two -year terms. 2 of 3 Since the agreements were executed, both companies have trained hundreds of employees in many Cal/OSHA required subjects. Both safety training contracts reach the end of their terms in September 2018. Staff has been very pleased with the quality of class materials, expertise of instructors and the flexibility of both EHS and GEN. Having two training companies has made it easier to schedule training classes for divisions that have employees with varying work schedules and has given more choice to find the best fit for the culture of each division. Vendor/Consultant Selection RFP Data RFP Posting Date RFP Posted On RFP Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 05/16/2016 City's Online Bidding Site Santa Monica Daily Press 53 3 06/02/2016 Submittals Received Vendor Selection Recommendation ehs International, Inc. Municipal Code SMMC 2.24.073 Global Environmental, Inc. Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Safety Center, Inc. Justification to Award A panel composed of Finance, Public Works and BBB safety representatives evaluated the proposals based on experience, qualifications and cost. Both EHS and GEN demonstrated that they were equal ly capable of teaching workplace safety classes and were selected as the best qualified firms. Financial Impacts and Budget Actions Staff seeks authority to increase the amount of the agreements with both EHS and GEN in order to continue to provide required Cal/OSHA safety training to City employees. Contract/Agreement/Purchase Order Modification Request Agreement # Current Authorized Amount Modified Request Amount FY 2018-19 Budget Dept/CIP Account # Total Revised Contract Amount 4224 $174,900 $263,360 74800002.552010 $438,260 4225 $122,320 $183,480 74800002.552010 $305,800 3 of 3 Funds in the amount of $87,652 for EHS and $61,160 for GEN are available in the FY 2018-19 Budget in the Workers’ Compensation Fund. Future year funding is contingent on Council budget approval. Prepared By: Deb Hossli, Risk Manager Ap proved Forwarded to Council Attachments: A. ehs International, Inc. Oaks Form B. Global Environmental Network, Inc. Oaks Form REFERENCE: Modified Agreement No. 10715 (CCS) & Agreement No. 10716 (CCS)