HomeMy WebLinkAboutCC AG PKT 2011-05-09 #I AGENDA STAFF REPORT
DATE: May 9, 2011
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, Acting City Manager
FROM: Sean Crumby P.E., Director of Public Works
SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE
AGREEMENT No. C -1 -2487 WITH THE ORANGE
COUNTY TRANSPORTATION AUTHORITY
SUMMARY OF REQUEST:
The City Council is asked to adopt Resolution No. 6133 authorizing the City
Manager to execute agreement no. C -1 -2487 with the Orange County
Transportation Authority regarding the Senior Mobility Program.
BACKGROUND AND ANALYSIS:
Orange County Transportation Authority (OCTA) for many years provided
transportation services to seniors. These included various services such as Dial -
A -Ride, Orange County Transit District, Consolidated Transportation Services
Agency, and OCTA. In the 1990's, OCTA developed a program called the Senior
Mobility Program in which local agencies are provided with funds to operate their
own bus program. The idea behind the program is for each municipality to
control their own program and cater it to the needs of their community. The City
of Seal Beach secured this grant funding and has been successfully operating
this program for the past 15 years. This program was recently re -bid and
awarded on January 10, 2011.
The program primarily consists of three components. Those components are a
Senior Nutrition program, the Shopping Shuttle, and the Dial -A -Ride program.
Funding for this City program has been approved as follows:
Funding Source Amount (yearly)
OCTA — Senior Mobility Program $63,721
Air Quality Management District $30,600
County of Orange — Senior Transportation $12,986
City of Seal Beach (General Fund) $83,350
Agenda Item 1
Page 2
The funding provided by the Orange County Transportation Authority — Senior
Mobility Program is detailed within the attached Cooperative Agreement C -1-
2487. Exhibit B of this agreement lists Seal Beach's allocation as $69,114; this is
an increase of $5,393 from the previous allocation. Execution of this agreement
will insure that the City will continue to receive funding for this program.
FINANCIAL IMPACT:
Funding for the Seal Beach Senior Transportation Services program has been
approved in the two -year budget from FY 2009 -10. The future budget will reflect
the revised amounts as detailed within this agreement.
RECOMMENDATION:
It is recommended that the City Council adopt Resolution No. 6133 authorizing
the Acting City Manager to execute agreement no. C -1 -2487 with the Orange
County Transportation Authority regarding the Senior Mobility Program.
SUBMITTED BY: NOTED AND APPROVED:
ilillf / ,
Sean Crumby, P. ill r gram,
Director of Public Works / i cting City Manag - rr
Attachments:
A. Resolution No, 6133
B. Cooperative Agreement C -1 -2487
RESOLUTION NUMBER 6133
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPROVING AGREEMENT NO. C -1 -2487 WITH THE ORANGE
COUNTY TRANSPORTATION AUTHORITY REGARDING THE
SENIOR MOBILITY PROGRAM
THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
Section 1. The City Council hereby approves Agreement No. C -1 -2487 between
the City of Seal Beach and Orange County Transportation Authority.
Section 2. The City Council hereby authorizes the Acting City Manager to
execute the Agreement.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a
regular meeting held on the 9th day of May , 2011 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6133 on file in
the office of the City Clerk, passed, approved, and adopted by the City Council at
a regular meeting held on the 9th day of May , 2011.
City Clerk
1 COOPERATIVE AGREEMENT C -1 -2487
2 BETWEEN
3 THE ORANGE COUNTY TRANSPORTATION AUTHORITY
4 AND
5 THE CITY OF SEAL BEACH
6 FOR
7 SENIOR MOBILITY PROGRAM
8 THIS AGREEMENT is made and entered into this day of , 2011
9 by and between the Orange County Transportation Authority, 550 South Main Street, P.O. Box 14184,
10 Orange, California 92863 -1584, a public corporation of the state of California (hereinafter referred to as
11 "AUTHORITY "), and the City of Seal Beach, 211 Eighth Street, Seal Beach, California 90740
12 (hereinafter referred to as "CITY "). Herein, AUTHORITY and CITY are sometimes individually referred
13 to as the "PARTY" and collectively as the "PARTIES."
14 RECITALS
15 WHEREAS, CITY is desirous of obtaining transportation services for seniors of the City of Seal
16 Beach; and
17 WHEREAS, AUTHORITY and CITY agree to enter into the Senior Mobility Program (SMP)
18 concerning senior transportation services; and
19 WHEREAS, this Cooperative Agreement defines the roles and responsibilities of AUTHORITY
20 and CITY in executing a Senior Mobility Program for senior transportation; and
21 WHEREAS, AUTHORITY and CITY agree to comply with all relevant elements of Orange
22 County Local Transportation Authority Ordinance No. 3; and
23 WHEREAS, AUTHORITY's Board of Directors approved this Cooperative Agreement on
24 February 14, 2011;
25 NOW, THEREFORE, it is mutually understood and agreed by AUTHORITY and CITY as
26 follows:
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AGREEMENT NO. C -1 -2487
1 ARTICLE 1. COMPLETE AGREEMENT
2 A. This Agreement, including all exhibits and documents incorporated herein and made
3 applicable by reference, constitutes the complete and exclusive statement of the term(s) and
4 condition(s) of the agreement between AUTHORITY and CITY and it supersedes all prior
5 representations, understandings and communications. The invalidity in whole or in part of any term or
6 condition of this Agreement shall not affect the validity of other term(s) or condition(s).
7 B. AUTHORITY's failure to insist in any one or more instances upon CITY's performance of
8 any term(s) or condition(s) of this Agreement shall not be construed as a waiver or relinquishment of
9 AUTHORITY's right to such performance or to future performance of such term(s) or condition(s) and
10 CITY's obligation in respect thereto shall continue in full force and effect. Changes to any portion of this
11 Agreement shall not be binding upon AUTHORITY except when specifically confirmed in writing by an
12 authorized representative of AUTHORITY by way of a written amendment to this Agreement and issued
13 in accordance with the provisions of this Agreement.
14 ARTICLE 2. RESPONSIBILITIES OF AUTHORITY
15 A. AUTHORITY agrees to provide funds per the following guidelines:
16 1. Services provided under the Senior Mobility Program are available to individuals
17 60 years of age and older.
18 2. Funds for the program are identified as 1% of Renewed Measure M (M2) net
19 sales tax revenue and will be allocated to all local jurisdictions based upon the participating entity's
20 respective percentage of the senior population for the entire county.
21 3. Senior population will be determined by using the most current official
22 decennial Census information provided by the U.S. Census Bureau.
23 4. All active participants will receive their portion of funding on a bi- monthly
24 basis.
25 B. In the event that the amount of M2 funding provided for this program is less than the
26 amount allocated for this program in Fiscal Year 2010 -11 as illustrated in Exhibit B, "Senior Mobility
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AGREEMENT NO. C -1 -2487
1 Program Allocation," AUTHORITY will allocate Transportation Development Act (TDA) Article 4.5 funds
2 to CITY in an amount no greater than FY2010 -11 funding levels less M2 SMP revenues for up to three
3 (3) years. Disbursement of TDA funds will occur with the last bi- monthly distribution of M2 funds during
4 the fiscal year.
5 C. Agree that Net Revenues allocated shall be expended or encumbered within three years
6 of receipt. AUTHORITY may grant an extension to the three -year limit, but extensions shall not be
7 granted beyond a total of five years from the date of the initial funding allocation.
8 D. In the event the time limits for use of Net Revenues are not satisfied, then any retained
9 Net Revenues that were allocated to an Eligible Jurisdiction and interest earned thereon shall be
10 returned to AUTHORITY and these Net Revenues and interest earned thereon shall be available for
11 allocation to any project within the same source program at the discretion of AUTHORITY.
12 E. AUTHORITY may provide, at AUTHORITY's sole discretion, a refurbished surplus
13 paratransit vehicle, at no cost to CITY and no further responsibility to AUTHORITY after vehicle
14 donation. CITY may purchase additional vehicle(s) in excess of their vehicle allocation at a cost of Five
15 Thousand Dollars ($5,000) per vehicle, subject to vehicle availability.
16 ARTICLE 3. RESPONSIBILITIES OF CITY
17 A. CITY agrees that all funds received from AUTHORITY as specified in Article 2A
18 above will be used exclusively for providing accessible senior transportation services that do not
19 duplicate AUTHORITY's services as specified in Exhibit A entitled "Scope of Work."
20 B. CITY must satisfy all M2 eligibility criteria in order to receive their formula allocation for
21 this program.
22 C. CITY agrees that Net Revenues allocated shall be expended or encumbered within
23 three (3) years of receipt. AUTHORITY may grant an extension to the three -year limit, but extensions
24 shall not be granted beyond a total of five (5) years from the date of the initial funding allocation.
25 D. In the event the time limits for use of Net Revenues are not satisfied, any retained Net
26 Revenues that were allocated to an Eligible Jurisdiction and interest earned thereon shall be returned to
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AGREEMENT NO. C -1 -2487
1 AUTHORITY and these Net Revenues and interest earned thereon shall be available for allocation to
2 any project within the same source program at the discretion of AUTHORITY.
3 E. CITY agrees to match twenty percent (20 %) of the total annual formula allocation.
4 Local match may be made up of cash - subsidies, fare revenues, or in -kind contributions.
5 F. CITY may contract with a third -party service provider to provide senior transportation
6 services provided that:
7 1. Contractor is selected using a competitive procurement process; and
8 2. Wheelchair accessible vehicles are available and used when requested.
9 G. CITY shall procure and maintain insurance coverage during the entire term of this
10 Agreement. Coverage shall be full coverage or subject to self - insurance provisions. CITY shall
11 provide the following insurance coverage:
12 1. Commercial General Liability, to include Products /Completed Operations,
13 Independent Contractors', Contractual Liability, and Personal Injury Liability with a minimum limit of
14 $1,000,000.00 per occurrence and $2,000,000.00 general aggregate.
15 2. Automobile Liability Insurance to include owned, hired and non -owned autos with a
16 combined single limit of $1,000,000.00 each accident;
17 3. Workers' Compensation with limits as required by the State of California including a
18 waiver of subrogation in favor of AUTHORITY, its officers, directors, employees or
19 agents;
20 4. Employers' Liability with minimum limits of $1,000,000.00; and
21 5. Professional Liability with minimum limits of $1,000,000.00 per claim.
22 H. Proof of such coverage, in the form of an insurance company issued policy
23 endorsement and a broker - issued insurance certificate, must be received by AUTHORITY prior to
24 commencement of any work. Proof of insurance coverage must be received by AUTHORITY within ten
25 (10) calendar days from the effective date of this Agreement with AUTHORITY, its officers, directors,
26 employees and agents designated as additional insured on the general and automobile liability. Such
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AGREEMENT NO. C -1 -2487
1 insurance shall be primary and non - contributive to any insurance or self- insurance maintained by
2 AUTHORITY.
3 I. CITY shall include on the face of the Certificate of Insurance the Cooperative Agreement
4 Number C -1 -2487; and, the Senior Contract Administrator's Name, Pia Veesapen.
5 J. CITY agrees to provide AUTHORITY with monthly summary reports of CITY's Senior
6 Mobility Program. CITY shall submit monthly summary report within fifteen (15) calendar days as
7 specified in Exhibit C "Senior Mobility Program Monthly Reporting Form," included in this
8 Agreement, which is incorporated into and made part of this Agreement.
9 K. CITY shall adopt an annual Expenditure Report to account for Net Revenues and
10 funds expended by the Eligible Jurisdiction, which satisfy the Maintenance of Effort requirements.
11 The Expenditure Report shall be submitted by the end of six (6) months following the end of the
12 jurisdiction's fiscal year and include the following:
13 1. All Net Revenue fund balances and interest earned.
14 2. Expenditures identified by type (i.e. capital, operations, administration, etc.) and
15 program or project.
16 L. In the event CITY obtains a retired AUTHORITY vehicle for Senior Mobility Program
17 services, CITY agrees to transfer vehicle title and registration within fourteen (14) days from taking
18 possession of the vehicle. CITY also agrees to provide documentation to AUTHORITY confirming
19 transfer of vehicle title and registration from AUTHORITY to CITY within thirty (30) days from taking
20 possession of the vehicle.
21 ARTICLE 4. TERM OF AGREEMENT
22 This Agreement shall commence on July 1, 2011 and shall continue in full force and effect
23 through June 30, 2016, unless earlier terminated or extended as provided in this Agreement.
24 AUTHORTITY, at its sole discretion, retains the right to extend this Agreement through June 30, 2021.
25 /
26 /
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AGREEMENT NO. C -1 -2487
1 ARTICLE 5. NOTICES
2 All Notices pertaining to this Agreement and any communications from the PARTIES may be
3 made by delivery of said notices in person or by depositing said notices in the U.S. Mail, registered
4 or certified mail, return receipt requested, postage prepaid and addressed as follows:
5 To CITY: To AUTHORITY:
6 City of Seal Beach Orange County Transportation Authority
7 211 Eighth Street 550 South Main Street
8 P.O. Box 14184
9 Seal Beach, California 90740 Orange, California 92863 -1584
10 ATTENTION: Sean P. Crumby ATTENTION: Pia Veesapen
11 (562) 431 - 2527 ext. 1318 (714) 560 - 5619
12 ARTICLE 6. FEDERAL, STATE AND LOCAL LAWS
13 AUTHORITY and CITY agree that in performance of their obligations under this Agreement,
14 they shall comply with all applicable federal, California State and local laws, statutes and ordinances
15 and all lawful orders, rules and regulations promulgated thereunder.
16 ARTICLE 7. ORDER OF PRECEDENCE
17 Conflicting provisions hereof, if any, shall prevail in the following descending order of
18 precedence: (1) the provisions of this Agreement, including all exhibits; (2) all other documents, if any,
19 cited herein or incorporated by reference.
20 ARTICLE 8. AUDIT AND INSPECTION OF RECORDS
21 CITY shall provide AUTHORITY, or other agents of AUTHORITY, such access to CITY's
22 accounting books, records, payroll documents and facilities as AUTHORITY deems necessary. CITY
23 shall maintain such books, records, data and documents in accordance with generally accepted
24 accounting principles and shall clearly identify and make such items readily accessible to such parties
25 during CITY's performance hereunder and for a period of four (4) years from the date of final payment
26 by CITY. AUTHORITY's right to audit books and records directly related to this Agreement shall also
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AGREEMENT NO. C -1 -2487
1 extend to all first -tier subcontractors. CITY shall permit any of the foregoing parties to reproduce
2 documents by any means whatsoever or to copy excerpts and transcriptions as reasonably necessary.
3 ARTICLE 9. TERMINATION
4 AUTHORITY or CITY may, for its own convenience, terminate this Agreement at any time in
5 whole or in part by giving the other PARTY written notice thereof of not less than ninety (90) days in
6 advance of the specified date of termination.
7 ARTICLE 10. INDEMNIFICATION
8 A. CITY shall indemnify, defend and hold harmless AUTHORITY, its officers, directors,
9 employees and agents from and against any and all claims (including attorney's fees and
10 reasonable expenses for litigation or settlement) for any loss or damages, bodily injuries, including
11 death, damage to or loss of use of property caused by the negligent acts, omissions, or willful
12 misconduct by CITY, its officers, directors, employees, agents, subcontractors or suppliers in
13 connection with or arising out of the performance of this Cooperative Agreement .
14 B. CITY shall maintain adequate levels of Insurance, or self- insurance to assure full
15 indemnification of AUTHORITY.
16 ARTICLE 11. ALCOHOL AND DRUG POLICY
17 A. CITY agrees to establish and implement an alcohol and drug program that complies with
18 41 U.S.C. sections 701 -707, (the Drug Free Workplace Act of 1988), which is attached to this
19 Agreement as Exhibit D. CITY agrees to produce any documentation necessary to establish its
20 compliance with sections 701 -707.
21 B. Failure to comply with this Article may result in nonpayment or termination of this
22 Agreement.
23 ARTICLE 11. CONFLICT OF INTEREST
24 CITY agrees to avoid organizational conflicts of interest. An organizational conflict of interest
25 means that due to other activities, relationships or contracts, CITY is unable, or potentially unable to
26 render impartial assistance or advice to AUTHORITY; CITY's objectivity in performing the work
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AGREEMENT NO. C -1 -2487
1 identified in the Scope of Work is or might be otherwise impaired; or CITY has an unfair competitive
2 advantage. CITY is obligated to fully disclose to AUTHORITY in writing Conflict of Interest issues as
3 soon as they are known to CITY. All disclosures must be submitted in writing to AUTHORITY
4 pursuant to the Notice provision herein. This disclosure requirement is for the entire term of this
5 Agreement.
6 ARTICLE 12. CODE OF CONDUCT
7 CITY agrees to comply with the AUTHORITY's Code of Conduct as it relates to Third -Party
8 contracts, which is hereby referenced and by this reference is incorporated herein. CITY agrees to
9 include these requirements in all of its subcontracts.
10
ARTICLE 13. FORCE MAJEURE
11
Either PARTY shall be excused from performing its obligations under this Agreement during
12
the time and extent that it is prevented from performing by a cause beyond its control, including, but
13
not limited to: any incidence of fire, flood; acts of God; commandeering of material products, plants
14
or facilities by the federal state or local government; national fuel shortage; or a material act of
15
omission by the other PARTY; when satisfactory evidence of such cause is presented to the other
16
PARTY, and provided further that such nonperformance is unforeseeable, beyond the control and is
17
not due to the fault or negligence of the PARTY not performing.
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AGREEMENT NO. C -1 -2487
1 Upon execution by both PARTIES, this Cooperative Agreement shall be made effective on
2 July 1, 2011.
3 IN WITNESS WHEREOF, the PARTIES hereto have caused this Cooperative Agreement No.
4 C -1 -2487 to be executed on the date first above written.
5 CITY OF SEAL BEACH ORANGE COUNTY TRANSPORTATION AUTHORITY
6 By By
Jill Ingram Will Kempton
7 City Manager (Acting) Chief Executive Officer
8
9 APPR VEDAS TO FORM:
10 By
11 Kennard R. Smart, Jr.
General Counsel
12
13 APPRO
14 By
Beth McCormick
15 General Manager, Transit
16
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AGREEMENT NO. C -1 -2487
EXHIBIT A
SCOPE OF WORK
Senior Mobility Program
1. The City of Seal Beach (City) shall utilize funding provided by the Orange County
Transportation Authority (OCTA) and its local match to provide the following
services:
• Curb to curb paratransit service for Seal Beach senior residents age 55 and
older and persons with disabilities.
• Service shall be provided as available with one bus operating and within the
permitted budget.
• The service shall run from 8:00 a.m. to 5:00 p.m.
• The service shall run from Monday through Friday.
• Expanded Dial -A -Ride Services, providing one vehicle and one driver Monday
through Friday 8:00 a.m. to 5:00 p.m. transporting eligible Seal Beach
residents to and from any location within the City and within a three -mile
radius outside the City's corporate boundaries.
2. The City shall follow competitive procurement practices in selection of vendors
for all services which it does not provide using its own workforce. Any Request
for Proposals (RFP) for services shall specify the use of vehicles meeting ADA
accessibility standards.
3. The City wishes to obtain the following retirement eligible OCTA ACCESS
vehicles:
• One (1) bus donated by OCTA,
• One (1) additional vehicle which it will purchase from OCTA for $5,000. The
cost of any additional vehicles shall be deducted from the next fiscal year
allocation. City must register the vehicle and maintain title for at least one
year after transfer of title from OCTA.
4. The City shall perform, or ensure that a contracted vendor performs,
maintenance of all vehicles used in the Senior Mobility program, including, at a
minimum:
• Daily Pre -Trip Inspections that meets or exceeds the guidelines provided in
the attached Pre - Operation Inspection & Defect Report (Attachment 1)
• Scheduled preventive maintenance that meets or exceeds the guidelines
provided in the attached Senior Mobility P.M. Checklist, including the
maintenance of all accessibility features of the vehicles. (Attachment 2)
The City shall maintain maintenance records for each vehicle for 5 years and
shall cooperate fully in annual Motor coach carrier terminal inspections
conducted by the California Highway patrol
City of Seal Beach
AGREEMENT NO. C -1 -2487
EXHIBIT A
5. The City shall ensure that its operators, or its contracted vendor's operators, are
properly licensed and trained to proficiency to perform their duties safely, and in
a manner which treats its riders with respect and dignity. Disability awareness
and passenger assistance shall be included in this training.
6. The City shall submit a monthly report to OCTA's Community Transportation
Services which includes, at a minimum, a monthly and fiscal year -to -date
summary of service and expenditures as illustrated in Exhibit C.
7. The City shall participate in OCTA marketing and outreach efforts to encourage
use of fixed -route transit service by older adults.
8. The City shall note OCTA sponsorship in any promotional material for service
funded under this agreement and shall display the OCTA Senior Wheels program
logo on vehicles use in this program (excluding taxis).
9. The City shall ensure that it maintains adequate oversight and control over all
aspects of service that are provided by a contracted vendor.
City of Seal Beach
AGREEMENT NO. C -1 -2487
EXHIBIT B
FA Senior Mobility Program Allocation
OCT A FY 2010 -11 Transportation Development Act Article 4.5 Funds
Local Jurisdictions FY 2010 -11
', <i.. OCTA "Contribution
Anaheim $ 194,204
Brea $ 37,766
Buena Park $ 49,457
Costa Mesa $ 83,053
Garden Grove $ 183,225
Huntington Beach $ 164,622
Irvine $ 93,151
La Habra $ 52,413
Laguna Hills $ 34,226
Laguna Niguel $ 46,533
Laguna Woods $ 128,998
Lake Forest $ 45,677
Newport Beach $ 111,163
Placentia $ 38,104
Rancho Santa Margarita $ 14,403
San Clemente $ 50,698
Santa Ana $ 167,850
Seal Beach $ 69,114
Westminster $ 66,902
Yorba Linda $ 40,913
Total (Current Participants) $ 1,672,472
AGREEMENT NO. C -1 -2487
Senior Mobility Program Monthly Reporting Form EXHIBIT C
Monthly Reporting E -Form
OCTA
Program Information
Service for the Month/Years of
Program Name:
City or Organization:
Contact Person:
Contact Number:
Details •
Trip Category One -Way Vehicle Service Vehicle Service
Passenger Trip Hours Miles
Nutrition Trips:
Medical trips
Shopping trips:
Other trips:
(Please specify trip type below")
Totals: 0 0
Summary • . .
•
OCTA Monthly Contribution Amount:
City Monthly Contribution Amount:
Total Operation Cost for Month:
Source of City Contributions:
"Please specify other trip types being provided to seniors in this space:
Please provide the requested information and submit the completed form to OCTA.
Attention: Jessica Deakyne/Community Transportation Coordinator, by email to jdeakyne @octa.net or by FAX to (714)560 -5927.
•••By the 15th day of the month following the reporting month***
Please contact Jessica Deakyne at (714) 560 -5802 if you have any questions or require assistance with the completion of this form.
Comments:
TR- B0- 086.doc (09/18/08) Page 1 of 1
AGREEMENT NO. C -1 -2487
EXHIBIT D
AIL,....
National Drug-Free
Workplace Alliance
DRUG -FREE WORKPLACE ACT OF 1988
THE FEDERAL LAW
This law, enacted November 1988, with subsequent modification in 1994 by the
Federal Acquisition Streamlining Act, (raising the contractor amount from
$25,000 to $100,000), requires compliance by all organizations contracting with
any U. S. Federal agency in the amount of $100,000 or more that does not
involve the acquisition of commercial goods via a procurement contract or
purchase order, and is performed in whole in the United States. It also requires
that all organizations receiving federal grants, regardless of amount granted,
maintain a drug -free workplace in compliance with the Drug -Free Workplace Act
of 1988. The Law further requires that all individual contractors and grant
recipients, regardless of dollar amount/value of the contract or grant, comply with
the Law.
Certification that this requirement is being met must be done in the following
manner:
By publishing a statement informing all covered employees that the unlawful
manufacture, distribution, dispensing, possession, or use of a controlled
substance is prohibited in the covered workplace, and what actions will be taken
against employees in the event of violations of such statement.
By providing ALL covered employees with a copy of the above - described
statement, including the information that as a condition of employment on the
Federal contract or grant, the employee must abide by the terms and conditions
of the policy statement.
For Federal contractors this encompasses employees involved in the
performance of the contract. For Federal grantees all employees must come
under this requirement as the act includes all "direct charge" employees (those
whose services are directly & explicitly paid for by grant funds), and "indirect
charge" employees (members of grantee's organization who perform support or
overhead functions related to the grant and for which the Federal Government
pays its share of expenses under the grant program).
Among "indirect charge" employees, those whose impact or involvement is
insignificant to the performance of the grant are exempted from coverage. Any
other person, who is on the grantee's payroll and works in any activity under the
grant, even if not paid from grant funds, is also considered to be an employee.
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AGREEMENT NO. C -1 -2487
EXHIBIT D
Temporary personnel and consultants who are on the grantee's payroll are
covered. Similar workers, who are not on the grantee's payroll, but on the payroll
of contractors working for the grantee, are not covered even if physical place of
employment is in the grantee's workplace.
By establishing a continuing, drug -free awareness program to inform employees
of the dangers of drug abuse; the company's drug -free workplace policy; the
penalties for drug abuse violations occurring in the workplace; the availability of
any drug counseling, rehabilitation, and /or employee assistance plans offered
through the employer.
By requiring each employee directly involved in the work of the contract or grant
to notify the employer of any criminal drug statute conviction for a violation
occurring in the workplace not Tess than five (5) calendar days after such
conviction.
By notifying the Federal agency with which the employer has the contract or
grant of any such conviction within ten (10) days after being notified by an
employee or any other person with knowledge of a conviction.
By requiring the imposition of sanctions or remedial measures, including
termination, for an employee convicted of a drug abuse violation in the
workplace. These sanctions may be participation in a drug rehabilitation program
if so stated in the company policy.
By continuing to make a "good- faith" effort to comply with all of the requirements
as set forth in the Drug -Free Workplace Act.
All employers covered by the law are subject to suspension of payments,
termination of the contract or grant, suspension or debarment if the head of the
contracting or granting organization determines that the employer has made any
type of false certification to the contracting or grant office, has not fulfilled the
requirements of the law, or has excessive drug violation convictions in the
workplace. Penalties may also be imposed upon those employing a number of
individuals convicted of criminal drug offenses as this demonstrates a lack of
good faith effort to provide a drug -free workplace. The contract or grant officer
may determine the number on a case -by -case basis. Employers who are
debarred are ineligible for other Federal contracts or grants for up to five (5)
years. Compliance may be audited by the Federal agency administering the
contract or grant.
The Drug -free Workplace Act does not require employers to establish an
employee assistance program (EAP) or to implement drug testing as a part
of the program.
Source: Federal Registers April 11, 1988 & May 25, 1990 & the Federal Acquisition Streamlining
Act of 1994 (FASA).
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