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HomeMy WebLinkAbout11-18-2014 C4 Contract with Harris & Lee for Safety PoliciesCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Monica Irons, Human Resources Director Prepared By: Kate Auslen, Human Resources Administrative Assistant Greg Zocher, Human Resources Manager SUBJECT: CONTRACT WITH HARRIS & LEE ENVIRONMENTAL SCIENCES FOR SAFETY POLICIES AND PROGRAMS UPDATE RECOMMENDATION 1. Authorize the City Manager to execute a sole source agreement with Harris & Lee Environmental Sciences, not to exceed $30,000, to provide safety policy and program updates for the City of San Luis Obispo. DISCUSSION Background In California, all employers have a legal obligation to provide and maintain a safe workplace for employees. The City acknowledges the importance of having and maintaining a robust health and safety program for City Employees, as well as the community they serve. The Human Resources Department is responsible for risk management, including liability, worker’s compensation and the safety program. As part of the safety program, Human Resources staff has led an effort to update a variety of safety policies. While a number of policies have successfully been revised to match current standards and regulations, others would benefit from subject matter experts to bring the policies to completion. The California Joint Powers Insurance Authority (CJPIA) has been a helpful resource for some policy templates. However, staff has found some sample policies are too generalized and do not address concerns specific to worksites and conditions at the City of San Luis Obispo. As part of the 2013-15 Financial Plan process, the Utilities Department submitted a request to fund a site-specific safety audit at the Water Treatment Plant, with the intent to maximize employee safety, reduce liability costs and ensure compliance. Once funding was approved, staff solicited proposals from a variety of vendors known to be qualified in providing this type of service. After reviewing the proposals and conducting interviews, Harris & Lee Environmental Services (Harris & Lee) was selected. The audit was conducted in April 2014, and resulted in a recommendation to revise and/or develop department specific and City-wide policies. In order to address these issues, subject matter experts are needed. Sole Source Consultant According to the City Financial Management Manual 295-1, Purchasing Guidelines, sole source contracts for consultant services may be pursued “If it is determined that it is in the best interest 11/18/14 C4 - 1 Safety Policies and Programs Update – Contract Approval Page 2 of the City for services to be provided by a specific consultant – with contract terms, work scope and compensation to be determined based on direct negotiations – contract award will be made by the Council”. By using Harris & Lee to perform these tasks, the City can leverage the knowledge of a consultant already familiar with the City organization to more quickly and effectively perform policy updates. Further, staff in the Utilities Department was pleased with the quality of work provided by Harris & Lee and the proposed policy development will serve to close out some of the items noted in the Water Treatment Plant safety audit. Completion of these policies will not only assist the Water Treatment Plant, but are applicable to several sites throughout the City and will establish a solid foundation for training employees on these policies, resulting in fewer injuries and reduced costs. While City staff is knowledgeable in their respective field, the use of Harris & Lee will be more effective in developing consistent, compliant standards throughout the organization. Harris & Lee has professional safety experts, including Certified Industrial Hygienists & Certified Safety Professionals, who are knowledgeable about accepted industry standards and applicable California Occupational Safety and Health Administration (Cal/OSHA) regulations. Harris & Lee consultants have worked with a variety of organizations both in the public and private sector and will bring that broader perspective to the City. They are available to begin work immediately and anticipate completing the policy revisions and development in three months. Expediting this project is important because safe work practices and procedures directly correlate to reduced workers’ compensation and liability claim costs, which influences the City’s fiscal health and ability to deliver essential services to the community. Harris & Lee provided a scope of work proposal (Attachment 2) that includes the following key elements: • Development of policy documents for 11 programs, such as Personal Protective Equipment, Hearing Conservation and Emergency Response. • Update of 8 existing policies, such as Bloodborne Pathogens, Hazard Communication and Fire Protection, to ensure compliance with regulatory standards. • Attend on-site meetings to ensure policies meet City requirements. The consultant has committed to completing the scope of work within three months of the authorization to begin the project. Once these foundational policies are in place, staff can immediately apply them in departmental operations. CJPIA regularly offers safety training classes and will incorporate the revised policies in these trainings. Moving forward, staff should be able to monitor and revise policies as new regulations are implemented. FISCAL IMPACT The City Manager approved $30,000 in funds available from the 2013-14 year end Human Resources Administration budget to be carried over to the 2014-15 Human Resources Administration budget for this purpose. No additional funding is being requested at this time. C4 - 2 Safety Policies and Programs Update – Contract Approval Page 3 ALTERNATIVES 1. Issue an RFP for these services. Council could choose to direct staff to issue an RFP for these services. This alternative may result in other proposals being submitted, but considering the City has already worked with this company and been very satisfied with the results, this alternative is not recommended. 2. Do not update safety policies and programs. This is not recommended as it may result in fines or other punitive measures due to non-compliance with State and Federal regulations. Additionally, the City may be exposed to increased liability claims or worker’s compensation claims as a result of improper or outdated protocols. ATTACHMENTS 1. Draft Agreement with Harris & Lee, including Exhibit A, Proposal for Environment, Health and Safety Program Support Services, incorporated by reference. C4 - 3 Attachment 1 AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on August 19, 2014, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and HARRIS & LEE ENVIRONMENTAL SCIENCES, LLC, hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, the City wants to provide and maintain a safe workplace for its employees, and recognizes that updated safety policies are needed as a vital component of its safety program. WHEREAS, Contractor is qualified to perform this type of service and has submitted a proposal to do so which has been accepted by City. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until acceptance or completion of said services. 2. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Contractor shall receive therefor compensation expected to total a sum of $29,440, but not to exceed $30,000. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as set forth in Exhibit A attached hereto and incorporated into this Agreement. Contractor further agrees to the contract performance terms as set forth in Exhibit B attached hereto and incorporated into this Agreement. 5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Manager. 6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: C4 - 4 Attachment 1 Exhibit B: Contract Performance Terms Page B-2 City City of San Luis Obispo Human Resources Department 990 Palm Street San Luis Obispo, CA 93401 Contractor Harris & Lee Environmental Sciences, LLC 120 Ross Valley Drive San Rafael, CA 94901 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. CITY OF SAN LUIS OBISPO, A Municipal Corporation CONTRACTOR By:_________________________________ By: ______________________________ Katie Lichtig, City Manager Patricia A. Beach, Managing Partner APPROVED AS TO FORM: ________________________________ Christine Dietrick, City Attorney C4 - 5 Santa Rosa San Francisco (707) 571-8961 voice voice (415) 287-0056 (866) 873-4361 fax fax (866) 873-4361 Harris & Lee Environmental Sciences, LLC Monica Irons September 9, 2014 Director of Human Resources City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401-3249 Re: Scope of Work (SOW) and Cost Estimate for Environment, Health and Safety (EHS) Program Support Services for the City of San Luis Obispo Dear Ms. Irons, Thank you for the opportunity for Harris & Lee Environmental Sciences, LLC (HLENV) to provide this proposal to the City of San Luis Obispo (the City). This SOW and cost estimate has been prepared based on our phone conversation of August 20, 2014 and an EHS audit performed by HLENV for the City Water Treatment Plant (WTP) documented in a report dated June 19, 2014. We understand that The City would like consulting assistance to develop and update EHS program documents based on findings from the HLENV audit of the WTP. Based on the HLENV audit document, we found the following relevant EHS programs at the City were lacking and require development according to State regulations: 1. Contractor Safety 2. Electrical Safety 3. Personal Protective Equipment 4. Safety at Heights (Fall Protection) 5. First-Aid Management 6. Chemical Safety (including chemical exposure control and safety equipment) 7. Hearing Conservation 8. Machine Guarding 9. Asbestos and Lead-based Paint Management Plan In addition the HLENV audit found the following established programs in need of review and revision to address current State OSHA regulatory frameworks and/or current City needs: 1. Bloodborne Pathogens 2. Injury Illness Prevention Program (incorporate specific programs that are missing) 3. Fire Protection Program (include Hot Work procedures) 4. Respiratory Protection 5. Confined Space Safety www.hlenv.com 120 Ross Valley Drive, San Rafael, CA 94901 info@hlenv.com Attachment 1 C4 - 6 6. Lockout/Tagout 7. Hazard Communication 8. Ergonomics Based on these identified program needs, the following Scope of Work is proposed. Scope of Work The desired outcome of this project will be formalized, regulatory compliant EHS policy documents from which the City can appropriately manage its EHS compliance requirements. To complete the SOW, the following tasks will be required: 1. Develop draft Policy documents for the first list of 9 programs, listed above. 2. Review and revise the list of 8 Policy documents for the second list of 8 programs, listed above. 3. Attend site meetings in San Luis Obispo to review the City organizational structure, and meet with key representatives of City departments to answer questions for draft Policy finalization. This task will greatly assist in ensuring that each program document addresses applicable departments, as necessary, in each Policy. This will assist in clarifying which departments will have specific implementation tasks to complete once the Policies are complete. 4. Edit Draft Policy documents with information gained from task 3 and deliver Draft Policies for review. One round of comments is included prior to delivery of 17 Final Policy documents. Scope Limitations Once the Policy documents are complete, each City department will need to review the applicability of each program to its operations. Some departments will likely require additional work to come into compliance with the new City EHS Policies (e.g., exposure assessments, additional training needs, etc.). HLENV considers these Program Implementation requirements and these are not included in this SOW. Should the City request additional services for implementation tasks, HLENV will quote this work in a separate proposal. Where we can provide guidance about implementation requirements during onsite meetings (Task 3, above), we will do so. Assigned Staff HLENV will assign skilled and certified EHS professionals to assist with this scope. One Certified Industrial Hygienists (CIHs) and one Certified Safety Professional (CSP) will assist with program review and development of new program documents. Cost Estimate Page 2 Attachment 1 C4 - 7 The cost to complete this scope has been developed using the same hourly rates as provided for the WTP audit, as follows: Sr. CIH, $165/hour; Sr. CSP, $155/hour. Task Estimated Hours (total) Estimated Cost 1. Develop Policy Documents for 9 programs (includes one review and comment by City of SLO) 94 $14,710 2. Update existing Policies to meet regulatory standards (includes one review and comment by City of SLO) 44 $6,820 3. Attend on-site meetings to ensure Policies meet City requirements 28 $6,260 4. Estimated travel costs* -- $1,650 TOTAL $29,440 *Travel costs assume up to 3 days of meetings in San Luis Obispo and 1/2-hourly travel rate for one Sr. CIH. Schedule We understand that the City would like to have the program documents completed within three months of the approved start date. HLENV can meet this schedule. I trust this meets your needs. Please contact me at patty@hlenv.com or 415-287-0056 if there are any questions regarding this SOW and cost estimate. We look forward to being of assistance to the City of San Luis Obispo. Harris & Lee Environmental Sciences Authorized By: ______________________ (Signature) Patricia A. Beach, MS, CIH Managing Partner ______________________ (Printed Name) _____________________ (Date) Page 3 Attachment 1 C4 - 8 Exhibit B CONTRACT PERFORMANCE TERMS 1. Business Tax. Contractor must have a valid City of San Luis Obispo business tax certificate prior to execution of the contract. Additional information regarding the City's business tax program may be obtained by calling (805) 781-7134. 2. Ability to Perform. Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 3. Laws to be Observed. Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 4. Payment of Taxes. The contract prices shall include full compensation for all taxes that Contractor is required to pay. 5. Permits and Licenses. Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 6. Safety Provisions. Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 7. Public and Employee Safety. Whenever Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 8. Preservation of City Property. Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged as a result of Contractor's operations, it shall be replaced or restored at Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 9. Immigration Act of 1986. Contractor warrants on behalf of itself and all sub-contractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 10. Contractor Non-Discrimination. In the performance of this work, Contractor agrees that it will not engage in, nor permit such sub-contractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 11. Work Delays. Should Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. C4 - 9 Exhibit B CONTRACT PERFORMANCE TERMS 12. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the services provided by Contractor (Net 30). 13. Inspection. Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 14. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 15. Interests of Contractor. Contractor covenants that it presently has no interest, and shall not acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree with the performance of the work hereunder. Contractor further covenants that, in the performance of this work, no sub-contractor or person having such an interest shall be employed. Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 16. Hold Harmless and Indemnification. Contractor agrees to defend, indemnify, protect and hold the City and its officials, agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 17. Contract Assignment. Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 18. Termination. If, during the term of the contract, the City determines that Contractor is not faithfully abiding by any term or condition contained herein, the City may notify Contractor in writing of such defect or failure to perform; which notice must give Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities or rights under the contract. In said event, Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone C4 - 10 Exhibit B CONTRACT PERFORMANCE TERMS or task satisfactorily delivered or completed by Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall Contractor be entitled to receive in excess of the compensation quoted in its proposal. 19. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of Contractor as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand. 20. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by Contractor as part of the work or services under these specifications shall be the property of City, and shall not be made available to any individual or organization by Contractor without the prior written approval of the City. 21. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what Contractor is required to furnish in limited quantities as part of the work or services under these specifications, Contractor shall provide such additional copies as are requested, and City shall compensate Contractor for the costs of duplicating of such copies at the Contractor's direct expense. 22. Attendance at Meetings and Hearings. Contractor shall attend as many "working" meetings with staff as necessary in performing workscope tasks. 23. Insurance. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by Contractor, its agents, representatives, employees or sub- contractors. a. Minimum scope of insurance. Coverage shall be at least as broad as: • Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). • Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). • Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. • Errors and Omissions Liability insurance as appropriate to Contractor’s profession. b. Minimum limits of insurance. Contractor shall maintain limits no less than: • General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply C4 - 11 Exhibit B CONTRACT PERFORMANCE TERMS separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. • Automobile Liability: $1,000,000 per accident for bodily injury and property damage. • Employer's Liability: $1,000,000 per accident for bodily injury or disease. • Errors and Omissions Liability: $1,000,000 per occurrence. c. Deductibles and self-insured retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other insurance provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: • The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. • For any claims related to this project, Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of Contractor's insurance and shall not contribute with it. • Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. • Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. • Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. f. Verification of coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. C4 - 12