City Council
Report
City Council Meeting: May 24, 2022
Agenda Item: 3.E
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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. 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.
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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-toexceed 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