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SR 05-24-2022 3E City Council Report City Council Meeting: May 24, 2022 Agenda Item: 3.E 1 of 3 To: Mayor and City Council From: Lori Gentles, Chief People Officer, Human Resources Department Subject: Approval of Modification to Agreement with Barry W. Leeder, Inc., dba Collections Plus for Drug and Alcohol Collection (Testing) Services Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to agreement #10724 (CCS) in the amount of $595,000 with Barry W. Leeder Inc. dba Collections Plus, A California based Corporation for professional drug and alcohol testing services for all departments. This will result in a nine-year amended agreement with a new total amount not to exceed $917,820, with future year funding contingent on Council budget approval. Summary In accordance with the federal Drug-Free Workplace Act (41 U.S.C. 81) and the federal Department of Transportation (DOT) and Federal Motor Carrier Safety Administration (FMCSA) regulations on drug and alcohol testing programs in transportation workplaces at 49 Code of Federal Regulations (CFR) Parts 40, 382, and 655, the City is required to conduct pre-employment, random, post-accident, reasonable suspicion, and follow-up drug and alcohol testing annually for, but not limited to, commercial drivers performing safety-sensitive functions who are covered by DOT and FMCSA regulations. The City currently has 69 job classifications and approximately 500 employees subject to DOT regulations. Due to higher than anticipated recruitment needs and to ensure the availability of testing longer term, staff seek to modify the existing contract to extend the agreement by four years and raise the amount authorized under the agreement by $595,000 that will result in a total contract amount not to exceed $917,820. 3.E Packet Pg. 71 2 of 3 Discussion Collections Plus has provided drug and alcohol testing collection services for the City of Santa Monica since 2013 and most recently entered into an agreement for testing services in 2018, which will expire in 2023. Due to the increases in hiring of positions subject to DOT and FMCSA regulations due to turnover, the City will exceed the existing approved purchasing authority before the current agreement expires on July 21, 2023. In order to maintain compliance with legally required drug and alcohol testing without disruption, and be operationally efficient, staff is asking City Council to approve extending the contract amount by $595,000, and extending the term by four years. The Human Resources Department holds the contract with this vendor. Departments are charged for testing incurred by their employees as invoices are received and they budget for these expenses accordingly. Vendor Selection In 2013 and 2018, the Human Resources department issued a Request for Proposals (RFP) for drug and alcohol testing collection services. In both instances, Collections Plus was the only vendor to submit a proposal. Because the City operates around the clock, the City’s requirements of vendors for drug and alcohol testing services includes the ability to provide services 24 hours/day, 7 days/week, 52 weeks/year including holidays at a collection site that is local and convenient to most City facilities. Collections Plus meets such requirements by offering a mobile collection service and direct immediate access to collectors to meet service needs of City departments. Past Council Actions Meeting Date Description 7/24/2018 (attachment A) Award of new agreement in response to an RFP for a total amount not to exceed $322,820 from October 15, 2018 through July 21, 2023. 3.E Packet Pg. 72 3 of 3 Financial Impacts and Budget Actions Staff seeks authority to approve funding to increase the amount of the agreement with Barry W. Leeder, Inc. dba Collections Plus for mandatory drug and alcohol testing services. This will extend the existing agreement by four years and increase the not-to- exceed amount by $595,000 resulting in a nine-year agreement in a total amount not to exceed $917,820. These funds will be encumbered as needed and are charged to the appropriate departments as the services are rendered. Department budgets currently include funding for this work. Future year funding is contingent on Council budget approval. Agreement Modification Request Agreement # Current Authorized Amount FY 2022-23 Budget Modified Request Amount Dept Account # Total Revised Contract Amount 10724 $322,820 $0 Various $917,820 Prepared By: Mark Brower, Deputy Director Approved Forwarded to Council Attachments: A. July 24, 2018 Staff Report - Attachment A B. Current Agreement - Attachment B C. OAKS 2022 - Attachment C 3.E Packet Pg. 73 City Council Report City Council Meeting: July 24, 2018 Agenda Item: 3.U 1 of 4 To: Mayor and City Council From: Donna Peter, Director, Human Resources Department Subject: Award Bid for Drug and Alcohol Collection Testing Services Recommended Action Staff recommends that the City Council: 1. Award RFP #177 to Barry Leeder, Inc., dba Collections Plus, a California-based company, for providing drug and alcohol collection testing services; and 2. Authorize the City Manager to negotiate and execute an agreement with Collections Plus, in an amount not to exceed $188,140 (including a 10% contingency) for three years, with two additional one-year renewal options in the amount of $69,340 for the first option, and $65,340 for the second option, on the same terms and conditions, for a total amount not to exceed $322,820 over a five-year period with future year funding contingent on Council budget approval. Summary In accordance with the federal Drug-Free Workplace Act (41 U.S.C. 81) and the federal Department of Transportation (DOT) regulations on drug and alcohol testing programs in transportation workplaces at 49 CFR Part 40, the City is required to conduct pre- employment, random, post-accident, reasonable suspicion, and follow-up drug and alcohol testing annually for, but not limited to, commercial drivers performing safety- sensitive functions who are covered by DOT regulations. The City currently has 50 job classifications subject to DOT regulations. Discussion Collections Plus has been providing drug and alcohol testing collection services for the City of Santa Monica since 2013. In 2015 and 2017, City staff made requests to Council for modifications to the existing agreement. Following conclusion of the 2013 agreement with Collections Plus, the Human Resources Department issued a Request for Proposal (RFP) for drug and alcohol testing collection services. In June 2018, the RFP was posted on the City’s online bidding site. Collections Plus was the only vendor 3.E.a Packet Pg. 74 Attachment: July 24, 2018 Staff Report - Attachment A (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 2 of 4 to submit a written proposal. This is similar to what occurred in February 2013, when the City issued an RFP for drug and alcohol testing collection services, and Collections Plus was the only bidder. Vendor Selection Because the City operates around the clock, the City’s requirements of vendors for drug and alcohol testing services includes the ability to provide services 24 hours/day, 7 days/week, 52 weeks/year including holidays at a collection site that is local and convenient to most City facilities. Collections Plus meets such requirements by offering a mobile collection service and direct immediate access to collectors to meet service needs of City departments. Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 06/14/2018 City's Online Bidding Site Santa Monica Daily Press 15 1 06/14/2018 Submittals Received Vendor Selection Recommendation 1. Collections Plus Municipal Code SMMC 2.24.072 Evaluation Criteria Experience and technical competence, ability to provide scope of services, quality control, cost of services, cost control and stability/references. Best and Only Bidder Collections Plus Additional Vendor Outreach & Justification for Award Based on this criteria and criteria in SMMC 2.24.073, staff recommends Collections Plus as the most-qualified firm to provide drug and alcohol testing collection services based on their expertise on federal drug and alcohol testing and reporting regulations, experience in training on the subject matter, and their understanding of the City’s processes. 3.E.a Packet Pg. 75 Attachment: July 24, 2018 Staff Report - Attachment A (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3 of 4 Past Council Actions Meeting Date Description 06/23/15 (attachment A) 1st Modification of the Original Agreement with Collection Plus to increase contract amount by $81,000 for a total amount not to exceed $150,847 and to extend terms of the contract from June 30, 2016 through August 27, 2017. 06/23/17 (attachment B) 2nd modification to the agreement to increase the contract amount by $55,000 for a total amount not to exceed $205,847 and to end the terms of the contract from August 27, 2017 through June 30, 2018. Financial Impacts and Budget Actions The contract to be awarded to Collections Plus is for an amount not to exceed $322,820. Funds in the amount of $59,400 are available in various departments for FY 2018-2019. Fiscal Year Total Contract Amount (includes 10% contingency) 18-19 $59,400 19-20 $63,400 (amount includes $4,000 for training) 20-21 $65,340 21-22 $69,340 (amount includes $4,000 for training) 22-23 $65,340 Future year funding is contingent on Council budget approval. Prepared By: Tatiana Morrison, Executive Administrative Assistant Approved Forwarded to Council Attachments: A. 6.23.15 First Mod to Collections Plus Agreement - Attachment A (Staff Report) 3.E.a Packet Pg. 76 Attachment: July 24, 2018 Staff Report - Attachment A (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 4 of 4 B. 6.13.17 Second Mod to Collections Plus Agreement - Attachment B (Staff Report) C. Oaks Form 3.E.a Packet Pg. 77 Attachment: July 24, 2018 Staff Report - Attachment A (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 78Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 79Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 80Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 81Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 82Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 83Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 84Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 85Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 86Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 87Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 88Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 89Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.bPacket Pg. 90Attachment: Current Agreement - Attachment B (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.cPacket Pg. 91Attachment: OAKS 2022 - Attachment C (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services) 3.E.cPacket Pg. 92Attachment: OAKS 2022 - Attachment C (5088 : Approval of Modification of Agreement for Drug and Alcohol Collection Services)