Loading...
HomeMy WebLinkAboutCC Resolution 8297 (Drug Testing)RESOLUTION NO. 8297 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING AN AGREEMENT WITH PHARMCHEM LABORATORIES, INC. TO PROVIDE LABORATORY DRUG TESTING SERVICES FOR THE CITY WHEREAS, the City of San Rafael has need for a chemical laboratory provider to provide laboratory drug testing services for candidates applying for employment in the Police and Fire Departments; and in special circumstances as part of a fitness for duty medical examination; and WHEREAS, a proposal from PHARMCHEH Laboratories, Inc. has been thoroughly reviewed by the City staff and the City's Occupational Health provider. NOW, THEREFORE, BE IT RESOLVED by the San Rafael City Council that the following action be taken: The MAYOR and CITY CLERK are authorized to execute, on behalf of the City of San Rafael, a contract agreement between the City of San Rafael and PHARMCHEM Laboratories, Inc. designating PHARMCHEM Laboratories, Inc. as the City's primary provider of laboratory drug testing services. Said contract is for a period of twenty-four months unless terminated earlier according to the terms of the contract agreement. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a Regular meeting of the City Council of the City of San Rafael on Monday the 19th day of November 1990, by the following vote to -wit: AYES: Councilmembers: Boro, Breiner, Shippey, Thayer & Mayor Mulryan NOES: Councilmembers: None ABSENT: Councilmembers: None JEANNLEONCINI, Cty Clerk LABORATORIES, INC. SERVICE AGREEMENT Date: October 4„ 1990 Contractor: PharmChem Laboratories, Inc. 1505A O'Brien Drive Menlo Park, California 94025 Telephone: (415) 328-6200 This Agreement is made on the above date in Menlo Park, California, by and between PharmChem Laboratories, Inc., a California corporation ("PharmChem") and the client specified above ("Client"). 1. SCOPE OF SERVICES. The parties hereby agree that PharmChem will provide Client with the drug detection and related services described below and in the attached exhibits ("the Services"), subject to the terms and conditions set forth in this Agreement. 2. FEES AND CHARGES. Client agrees to pay PharmChem its fees and charges for the Services as specified in Section 9 below and Exhibit A. 2.1 No -Charge Items. The fees and charges specified in Exhibit A include, at no extra cost, the following: (a) consulta- tion regarding the selection of drugs for analysis and appropriate testing procedures; (b) establishment of a secure chain -of - custody procedure; (c) assistance in interpreting test results (up to one man-hour per specimen submitted); (d) supplies for col- lecting and submitting specimens for testing, including (as agreed by the parties) urine vials and caps, labels, protective seals, plastic bags, mailing materials, and chain -of -custody or other transmittal forms; (e) written reports on analyses per- formed; (f) storage of samples and records for the periods specified herein; (g) periodic newsletters and technical bulletins; and (h) access to a telephone hotline for technical inquiries. 2.2 Travel Expenses. if any travel beyond a radius of twenty- five (25) miles from PharmChem's offices is authorized by Client under this Agreement. Client shall pay all reasonable, ordinary and necessary expenses incurred by PharmChem, including, without limitation, transportation, hotels, and the like. Contract/Client No.: Client: Citv_ of San Rafael Name P.O. Box 1575 0 Address San Rafael, CA 84915-75Ff1 ( 415 485-3061 Telephone 3. SUBMISSION OF SPECIMENS. Client shall submit specimens for testing only in accordance with the procedures prescribed by PharmChem as specified in Exhibit B. 3.1 Untestable Specimens. If PharmChem receives an unidentified specimen, an improperly sealed or labeled specimen, a specimen containing less urine than reasonably required by PharmChem, or a specimen which for any other reason cannot by tested in accordance with Exhibit C. which- ever is applicable, PharmChem shall dispose of the specimen without conducting any of the tests and shall promptly notifv Client of the action taken, subject to the handling charge therefor specified in Exhibit A. 4. REPORTING. PharmChem shall furnish to Client an analytical report of the drug analysis performed on each specimen tested under this Agreement as specified in Exhibit D. 4.1 Written Reports. Each report of an analysis performed by PharmChem under this Agreement shall be subject to the express technical definitions, qualifications. and comments set forth in the official written report furnished to Client for such analysis. 4.2 Disclaimer. Upon Client's prior written request and authorization. PharmChem shall be permitted to send Client any test results by telephone, telecopier. or other facsimile service. Client hereby acknowledges that, in such event, various persons beyond PharmChem's employ or control (or the employ or control of Client) may thereby participate in such result trans- mission and gain access thereto. Accordingly. Client further acknowledges that PharmChem cannot be responsible for any consequential mistransmission, misunderstanding. or breach of confidentiality due to such th� fiicipatign or access. 4.3 Testing Criteria. PharmChem's testing procedures require initial screening of a specimen by one methodology and con- firmation of any positive initial screening test by at least one additional independent methodology. If the initial screening test is negative, there is no confirmation test performed, and the report shall be negative. If the initial screening test is positive but the confirmation test is negative, the report shall be nega- tive. PharmChem shall generate a positive report if and only if both the initial screening test and at least one confirmation test on a specimen are positive. A "negative" test means the test(s) applied did not find the particular drug or drug metabolites at or above the detection levels specified in Exhibit C, and, conversely, a "positive' test means that the tests applied did find the particular drug or drug metabolites at or above the detection levels specified in Exhibit C. Neither a positive nor a negative test, unless expressly stated by PharmChem to the contrary, is an indication of whether the person whose bodily fluid was tested was functionally impaired at the time the specimen was given, because of such variables as tolerance, body mass, time of consumption versus time of testing, excre- tion rates, and the like. 5. STORAGE OF SPECIMEN. 5.1 Negative Specimen. Specimens which are determined to be negative shall be retained by PharmChem at room temperature for two (2) weeks after the completion of testing. 5.2 Positive Specimen. Specimens which are determined to be positive shall be retained by PharmChem for the time specified in Exhibit D after the completion of testing. If frozen, such specimens shall be stored at or below —5°C. Client hereby acknowledges that freezing retards bacterial decomposition but may not halt all chemical processes in a specimen, and freez- ing may itself affect some metabolites found in urine. 5.3 Additional Testing. Stored specimens will be subject to further testing or retesting only on Client's written request and payment of the then prevailing fees and charges. Client hereby acknowledges that a frozen specimen retrieved from storage may not produce exactly the same test results due to chemical or other changes which cannot be stopped by freezing. 5.4 Disposal of Specimens. Upon Client's written request and payment of PharmChem's then prevailing storage charges, PharmChem shall store a specimen for periods beyond those specified in Exhibit D. If no such request is received prior to the termination of the specified periods, PharmChem shall be enti- tled to dispose of any stored specimen without notice to Client. 6. RETENTION OF TEST RECORDS AND REPORTS. PharmChem shall retain the relevant laboratory records for each tested specimen for seven (7) years from the date thereof. Upon Client's written request and payment of PharmChem's then prevailing records retention fees, PharmChem shall store such records for an additional time. If no such request is received prior to the end of such seven (7}year period, PharmChem shall be entitled to dispose of such records without notice to Client. 7. TERM 7.1 Term. This Agreement shall commence on the date first written above and shall continue until terminated by either party (a) for convenience on thirty (30) days' written notice to the other party or (b) as specified in Section 7.2 or 7.3 below. 7.2 Termination by Client. Client shall, without further notice, have the immediate right to terminate this Agreement if any of the following events or conditions occur: (a) Pharm- Chem petitions for reorganization under the Bankruptcy Code or is adjudged a bankrupt; (b) PharmChem becomes insolvent, or a receiver is appointed due to the insolvency of PharmChem; (c) PharmChem makes a general assignment of the assets and business of PharmChem for the benefit of PharmChem's creditors; (d) PharmChem defaults in the performance of any of its material obligations under the terms of this Agreement and has not cured such default within thirty (30) days of written notice of such default by Client; or (e) without limiting the foregoing, PharmChem, its employees, agents, or representa- tives violate the confidentiality and nondisclosure provisions of this Agreement. 7.3 Termination by PharmChem. PharmChem shall, without further notice, have the immediate right to terminate this Agreement if any of the following events occur: (a) Client petitions for reorganization under the Bankruptcy Code or is adjudged a bankrupt; (b) Client becomes insolvent, or a receiver is appointed due to the insolvency of Client; (c) Client makes a general assignment of the assets and business of Client for the benefit of Client's creditors; or (d) Client defaults in the performance of any of its material obligations or payments of any indebtedness under this Agreement and has not cured such default within thirty (30) days of written notice of such default by PharmChem. S. CONFIDENTIALITY. 8.1 Reasonable Efforts. PharmChem shall take all reasonable steps to preserve the confidentiality of test reports and any related laboratory records within the custody, control or pos- session of PharmChem. 8.2 Reliance on Designated Representative. PharmChem shall be entitled to rely on Client's designation of authorized representative(s) set forth in Exhibit E or any written amend- ment thereof and the oral assurance of any person who identifies himself or herself as such authorized representative and gives the above identification number assigned to Client in furnishing reports, assistance or other information under this Agreement. 9. BILLING AND PAYMENT. 9.1 Monthly Invoices. PharmChem shall send itemized monthly invoices to Client at the above address or such other address(es) as Client may designate for Services rendered during the preceding month. Items of reimbursement shall be separate- ly described and itemized, and copies of expense reports or receipts shall be included. 9.2 Payment. All invoices shall be due and payable in full within thirty (30) days after the date thereof. Client agrees to pay interest on amounts past due at the prime rate of Sanwa Bank, San Jose, California, in effect on the date such amounts first become past due. Payment shall be made in Menlo Park, California, in U.S. currency. 9.3 PharmChem's Remedies. Notwithstanding anything to the contrary elsewhere in this Agreement, if Client breaches its obligations under this Section 9, PharmChem shall be entitled to withhold test reports until all amounts owing are paid in full and, in addition, to terminate this Agreement. 9.4 Audit Rights. PharmChem shall maintain, preserve, and make available for inspection, audit and reproduction, up to twenty-four (24) months Poll, wing the submission of the final invoice under this Agreer, -r he books, records, agreements and other documents used in determining any fees or charges to Client during the performance of this Contract. In addition, PharmChem shall, to the maximum extent feasible, include similar audit right provisions for PharmChem and Client in all PharmChem contracts with subcontractors, if any. 10. WARRANTIES AND COVENANTS. 10.1 License. PharmChem warrants to Client that it is duly licensed by all California and federal agencies as required by law to perform the Services. 10.2 Performance of Services. PharmChem warrants to Client that the Services shall be performed with the degree of skill and care that is required by current, good and sound professional procedures and practices and in conformity with generally accepted professional standards prevailing in the field of forensic toxicology at the time the Services are performed. 10.3 Law. PharmChem warrants to Client that, in perform- ing the Services, it will comply with all applicable local, state and federal laws, regulations, and rules, including, without limitation, those pertaining to equal employment oppor- tunity and the confidentality of medical information (if applicable). 10.4 General Disclaimers. EXCEPT AS SPECIFICALLY PROVIDED IN SECTIONS 10.1. 10.2 AND 10.3 ABOVE. PHARMCHEM DISCLAIMS ALL OTHER WARRANTIES. EXPRESSED OR IMPLIED. INCLUDING THE IMPLIED WAR- RANTIES OF MERCHANTABILITY AND FITNESS FOR A PAR- TICULAR PURPOSE. IN NO EVENT SHALL PHARMCHEM BE LIABLE FOR ANY INDIRECT. SPECIAL OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH OR ARISING OUT OF CLIENT'S RELIANCE ON SERVICES RENDERED UNDER THIS AGREEMENT. EVEN IF PHARMCHEM HAS BEEN IN- FORMED OF THE POSSIBILITY OF SUCH DAMAGES. WITHOUT LIMITING THE FOREGOING, PHARMCHEM ASSUMES NO LIABILITY FOR ANY LOSS, COSTS, DAMAGES, ATTORNEYS' FEES OR OTHER EXPENSES WHICH CLIENT MAY SUSTAIN OR INCUR BECAUSE CLIENT HAS ACTED OR FAILED TO ACT BASED SOLELY ON ANY TELEPHONE REPORTS PROVIDED BY PHARMCHEM. 10.5 Insurance. PharmChem covenants to maintain appropriate insurance policies with suitable insurance com- panies authorized to do business in California covering worker's compensation, professional liability, comprehensive general liability and comprehensive automobile liability risks. PharmChem shall provide Client with certificates of insurance for each of the foregoing policies and any renewals thereof. 10.6 No Representations by Client. Client covenants that it shall not make any representation, warranty, or claim with respect to any of the Services which is not expressly set forth in the specifications, documentation, other technical literature or written reports prepared and distributed by PharmChem. 10.7 Notice and Cooperation. Client covenants to give prompt written notice of any legal proceeding, including, without limitation, any civil action, administrative hearing, or arbitration, in which the Services or any portion thereof are to be a material issue in dispute, and Client further covenants that, in regard to any such legal proceeding, it shall use its best efforts to follow the technical and scientific advice of PharmChem with regard to the presentation and defense of such Services or portion thereof, including, without limitation, the use of such expert testimony or legal arguments as PharmChem may reasonably recommend. 11. INDEMNIFICATION. 11.1 By PharmChem. PharmChem shall defend, indemnify and hold harmless Client from and against any and all liabil- ity, loss, costs, damages, attorneys' fees, and other expenses which Client may sustain or incur by reason of or in conse- quence of PharmChem's sole negligence in performing its obligations under this Agreement. including, but not limited to, sums paid or liabilities incurred in settlement of, and ex- penses paid or incurred in connection with claims, suits. or judgments arising from PharmChem's sole negligence (in- cluding expert witness fees paid by Client to PharmChem in defense of such action against Client). 11.2 By Client. Client shall defend, indemnify and hold harmless PharmChem from and against any and all liability. loss, costs, damages, attorneys' fees, and other expenses which PharmChem may sustain or incur by reason of or in conse- quence of Client's sole negligence of4aZ. t — , ' . L,�u�l, J1iLS � c , including, but not @F11 limited to, sums paid or liabilities incurred in settlement of. and expenses paid or incurred in connection with claims. suits, or judgments arising from Client's sole negligence or anv such breaches. 11.3 Survival. The indemnification under Sections 11.1 and 11.2 above shall survive termination of this .agreement. 12. INDEPENDENT CONTRACTOR. PharmChem is an independent contractor and shall not be deemed an employee. agent. partner, or co -venturer of Client. :Neither party shall have the authority to make anv binding representation or agreement on behalf of the other. 13. MISCELLANEOUS. 13.1 Entire Agreement; Amendment. This instrument (in- cluding the exhibits) contains the entire contract between the parties, and any agreement or representation respecting the services or the duties of either party in relation thereto not expressly set forth in this instrument is null and void. Any amendment or modification of this instrument shall be in writing and duly executed by the parties. 13.2 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California (excluding its choice of law rules). 13.3 Section Headings. The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 13.4 Attorney's Fees. Should any liliga,on be commenced between the parties hereto concerning this Agreement or file rights and duties in relation Iherelo, in addition to such other relief as may be granted the party prevailing in such litigation Shall he entitled to its reasonable attorneys fees and rods f hercm. Such fees and rusts shall he determined by the court in such litigation or in a separate action broighl for that purpose. 13.5 Notices. Any and ntl notices or rather ronununications recluired or permitted by I leis Atonement or by law to he served on or given to either part\ Hereto by file other party shall be in writing and .,hall he deemed dLlly served and given W11CII personally delivered to either of the parties to whom it is directed, or in lieu of sue h personal service three (a) days after being deposited in the United Stales mail, first class postage prepaid, addressed to the party to whom it is directed at the address sct forth above uHICSS notice of anofhe address is duly given 13.6 Binding on Successors. ']'his Agreement shall he binding upon null shill; iom-e to the benefit of file parties hereto and their respective representatives, heirs, admini- strators, successors and assigns except as olherwise provided herein. 13.7 Publicity. t:xcept as noy be re(luhrd by applicable law or regulation, neither party shall use 'ill advertising, publicity. or otherwise, any infornatwn concerning this Agreement or disclose the terins and conditions of IN.,; Agreement v. ithout the prior Consent of the other party. PharmChem Laboratories, Inc. 13.8 Savings. L• ach provision or part is severable from the Agreement, and if one or more provisions or parts are declared invalid by a court of competent jurisdiction, the remaining provisions shall nevertheless remain in full force and effect. 13.9 Non -Waiver. The waiver by either party of any breach of any term, covenant or condition contained in this Agree- ment, or of any default in the performance of any obligations under this Agreement, shall not be deemed to be a waiver of any other breach or default of the same or any other term, covenant or condition, nor shall any waiver of any inci- dent of breach or default constitute a continuing waiver of the same. 13.10 Force Majeure. Neither Client nor PharmChem shall be considered in default in the performance of its obligations under this Agreement, except obligations to make payments hereunder for work previously performed, to the extent that the performance of any such obligation is prevented or delayed by any cause, existing or future, which is beyond the reasonable control of the affected party. In the event either party claims that performance of its obligations are prevented or delayed by any such cause, that party shall promptly notify the other party of such fact and of the circumstances pre- venting or delaying performance - IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. Client C' of San Rafael N,1171e_ Reith W. Patten Name. LAWRENCE E. MULRYAN Title: Vice President Marketing Title; Mayor ATTEST: JU nne- M. Leoncini\,i y ler EXHIBIT A l=ees and Charges EXHIBIT B Specimen tiubrnkSion Procedures EXHIBIT 13-1 Chain -of -Custody Farm EXHIBIT C Drug Panel and Analytical Methods EXHIBIT D Reporting and Storage Requirements EXHIBIT E Client's Authorized Representatives Approved 23t form: ASST. CITY ATTORNEY