1997-048-Execute An Agreement With Preferred Alliance For Third Party Administration For Drug Testing ServicesRESOLUTION 1997 - 48
RESOLUTION OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGREEMENT WITH PREFERRED ALLIANCE
FOR THIRD PAR ADMINISTRATION FOR DRUG TESTING SERVICES
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town of Los Gatos enter in an agreement (Exhibit A) with
Preferred Alliance for third party administration for drug testing services, and that the Town
Manager is authorized, and is hereby directed, to execute said agreement in the name and in behalf
of the Town of Los Gatos.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 19th day of May, 1997 by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Jan Hutchins, Linda Lubeck,
Mayor Joanne Benjamin
NAYES: None
ABSENT: Steven Blanton
ABSTAIN: None
SIGNED: \ `?t
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LOR OF THE TOWN F LOS GATOS
OS GATOS, CALIFORN A
ATTEST:
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CLERK OF THE TOWN QF OS GATOS
LOS GATOS, CALIFORNIA
TUWN CLZRX
This agreement is made between Health Services Benefit Administrators, Iribr- deingbnsirress a
PREFERRED ALLIANCEsm, a Workplace Compliance Drug & Alcohol Testing administrator
(hereinafter referred to as "PA "), and the Employer whose name and signature appear at the bottom of
this agreement (hereinafter referred to as "Employer").
This agreement is made with reference to the following:
A. Regulations promulgated by the United States Department of Transportation ( "the DOT
Regulations ") require employers of "safety- sensitive" employees ( "covered employers ") to test
such employees for controlled substance ( "drug ") and alcohol use.
B. The DOT Regulations allow covered employers to join a "consortium" for the purpose of drug and
alcohol testing.
IN CONSIDERATION OF the mutual obligations hereunder, the parties agree as follows:
1. PA agrees to do the administration and breath alcohol testing which includes the following
elements.
(a) Random selection and company notification protocol;
(b) Arrange for random drug testing and random breath alcohol testing that meets the
requirements of the DOT Regulations at a rate equal to 50% and 25% of the average number
of covered employees per calendar year, respectively;
(c) Maintain a random testing pool for DOT- regulated employees;
(d) Maintain random selection and random pool records;
(e) Provide Employer with its DOT drug and alcohol results within forty -eight (48) hours of
Employer's request;
(f) Maintain database of all random tests and include all other types of DOT tests into the
database as reported to PA by Employer,
(g) Contract with a licensed laboratory that meets the requirements of the DOT Regulations to
test for the presence of drugs;
(h) Provide Employer with DOT regulatory updates affecting the program;
(i) Provide blind quality control testing for Employer as required by the DOT Regulations; and
(j) Contract with a Medical Review Officer.
2. Employer's Obligations:
(a) Identify all of its employees subject to drug and alcohol testing and update this list on a
monthly basis;
(b) Distribute information regarding Employer's employer policy to all affected employees;
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(c) Cooperate with PA in scheduling the drug and breath alcohol tests for employees of Employer
on the dates and at the locations specified by PA;
(d) Report all non - random DOT drug and alcohol test results to PA as soon as possible in order
that PA can maintain a current database for Employer;
(e) Comply with the DOT Regulations and all other laws, regulations or labor agreements
applicable to Employer's employees subject to drug and alcohol testing. If the Employer
submits samples for testing from persons not subject to mandatory testing under said
regulations, the Employer shall comply with all applicable federal and state laws; and
3. Fees for Services:
(a) For the performance by PA of its obligations listed in paragraph 1(a) through (f), Employer
shall pay PA according to the following schedule:
Preferred Alliance Fee Schedule
1 -2
$ 69.00
$8.00
$6.10
3 -9
$ 69.00
$7.00
$5.70
10-19
$ 89.00
$6.45
$5.65
20 -59
$ 99.00
$5.60
$5.60
60 -99
$129.00
$5.25
$5.25
100 and over
$179.00
$5.00
$5.00
PA will bill Employer the Driver Rate according to the size of its random pool each month. The contract
fee covers the cost of the program's administration and the random drug and breath alcohol tests. The
initial set -up fee of be paid in advance. The above contract fee schedule is for calendar
year 1997.
If the Employer is contracting with PA after December 1996, an advance payment will be necessary to
cover random testing costs for those calendar month(s) prior to enrollment
(a) Should Employer arrange for testing using entities not affiliated with PA to conduct testing
other than PA's random drug and alcohol testing may be the case in post - accident or
reasonable suspicion testing, it is the obligation of the Employer to pay the cost of such
testing and collection at the fee for service billed rate;
(b) Employer shall pay PA $60.00 for Pre - Employment, Reasonable Suspicion, Retum- To-Duty,
Follow -Up or Post - Accident drug test as may be requested by Employer. The fee includes
the services of a Medical Review Officer (M.R.O.), Laboratory, supplies, recordkeeping and
reporting. Should the Employer order a breath alcohol test (by itself) the Employer shall pay
PA a fee of $27.00.
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4. Term of the Agreement.
This agreement may be terminated by either party by giving sixty (60) days advance written
notice to the other party. Upon termination of this agreement, PA shall promptly deliver to
Employer written records of Employer's participation in PA's drug and alcohol screening program
and test results for all of Employer's employees and the delivery of such documents shall
terminate all of PA's responsibility for maintenance of those records.
5. PA's Indemnification Obligations.
PA will indemnify, defend and hold Employer harmless from any liability, loss, claim, damage or
cause of action (including reasonable attorney fees and costs) arising from:
(a) The failure of PA to maintain or deliver records of Employer's participation in this drug and
alcohol testing program as required by the DOT Regulations; and
(b) Negligent or willfully improper performance of any of PA's obligations under this agreement.
6. Insurance.
PA agrees to maintain during the term of this Agreement comprehensive general liability
insurance and professional liability insurance (malpractice) each in minimum amount of One
Million Dollars ($1,000,000) in the aggregate and per occurrence. PA shall provide Employer with
a certificate of such insurance upon written request.
7. Indemnification Obligations of Employer.
Employer shall defend, indemnify and hold harmless PA, and any certified laboratory or medical
review officer providing services to Employer pursuant to this Agreement from any claim, loss,
liability, damage, detriment or obligation, including attorney fees and costs, arising from
negligence or willful misconduct of Employer.
8. Relationships of the Parties.
PA is an independent contractor, and this Agreement does not create a relationship of general
agent, servant, employee, partnership, joint venture or association. Employer hereby names PA
as its Agent and Attorney in Fact for the limited purpose of dealing with the Department of
Transportation, employer's personnel or safety departments or other representatives holding
Employer's personnel records, dealing with Employer's personnel who are subject to testing for
this Agreement, and any other public agency which may require access to the tests or from whom
information is required in order to conduct these tests, all for the limited purpose of performing the
duties necessary or convenient in carrying out PA's obligations under this Agreement.
9. Resolution of Disputes.
Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall
be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the
American Arbitration Association, and judgment upon the award rendered by the arbitrator may
be entered in any court having jurisdiction thereof. The prevailing party in any arbitration or legal
action related to or arising from this Agreement shall recover its attorney's fees and costs as
awarded by the arbitrator or court. Notwithstanding anything in the rules of the American
Arbitration Association, any arbitration award entered pursuant to this provision shall be subject to
vacation upon determination by a Court of competent jurisdiction that the award is based on an
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error or law or is not supported by substantial evidence. The arbitration proceeding shall be
recorded or transcribed verbatim.
10. Notices.
All notices which may be given hereunder shall be in writing and may be delivered personally to
aduly- authorized representative of PA or of Employer, or by mail, postage prepaid, addres ed to
PA, 160 Airway Boulevard, L' a or California, 94550 or wi r� LQi i S ,
UD E,. MCUr�_StL�Sa Vim. Either party may change
of address for receipt
of notices by giving notice of such change to the other party in this manner.
11. Miscellaneous Provisions.
(a) This agreement contains all the terms and conditions agreed upon by the parties and no other
agreements, oral or written, regarding the subject matter of this agreement shall be deemed
to exist or bind any of the parties.
(b) This agreement shall be governed in all respects by California law, except to the extent
specifically preempted by the DOT Regulations.
(c) Execution of this agreement, shall be deemed effective when executed on behalf of PA by an
officer of Health Services Benefit Administrators, Inc. and on behalf of Employer by its
authorized agent. The agent of Employer executing this agreement warrants that this
agreement is duly authorized by Employer.
A Workplace Compliance Drug
Alcohol Testing Administrator
By:
Title:
Date:
EMPLOYER
By:
Title:
Date:
r' • • • 1 1 � 1�1�
NATALIE WEST, INTERIM ATTORNI
ATTEST:
MARIAN V. COSGROVE
TOWN CLERK
POSITIONS REQUIRED TO BE TESTED
UNDER DEPARTMENT OF TRANSPORTATION REGULATIONS
Maintenance Superintendent
Parks & Forestry Superintendent
Public Works Maintenance Supervisor
Parks Maintenance Supervisor
Equipment Mechanic
Town Arborist
Maintenance Worker I, II, III, IV
Park Maintenance Worker I, II, III, IV
Sweeper Operator
Tree Trimmer /High Climber
Facilities Coordinator
Park Ranger
Maintenance Assistant
ATTACHMENT r