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HomeMy WebLinkAboutNational Safety Compliance Inc; 2026-06-30;City Attorney Approved 10/23/2025 1 AGREEMENT FOR DRUG AND ALCOHOL TESTING SERVICES NATIONAL SAFETY COMPLIANCE INC. THIS AGREEMENT (“Agreement”) is made and entered into as of the ____ day of ____________________, 2026, by and between the City of Carlsbad, California, a municipal corporation ("City") and National Safety Compliance, Inc., a California corporation, ("Contractor"). RECITALS A. City requires the professional services of a Drug and Alcohol Testing service provider that is experienced in Department of Transportation (DOT) and Federal Motor Carrier Safety Administration (FMCSA) regulations; and B. Contractor has the necessary experience in providing professional services related to drug and alcohol testing services and regulations; and C. Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained in this Agreement, City and Contractor agree as follows: 1. SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services ("Services") that are defined in attached Exhibit "A," which is incorporated by this reference in accordance with this Agreement’s terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California area and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of five (5) years beginning August 6, 2026 through August 5, 2031. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5. COMPENSATION The total fee payable for the Services to be performed during the Agreement term shall not exceed thirty-five thousand dollars ($35,000) per agreement year. No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. Payment terms are Net 30 days unless otherwise provided in Exhibit “A” or agreed to in writing by the parties. City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit "A." Incremental payments, if applicable, should be made as outlined in attached Exhibit "A." 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B 30th June City Attorney Approved 10/23/2025 2 under the control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to this Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At City’s election, City may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8. OTHER CONTRACTORS City reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to defend (with counsel approved by City), indemnify, and hold harmless the City and its officers, elected and appointed officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described in this Agreement caused by any negligence, recklessness, or willful misconduct of Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. If Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor’s performance as a “design professional” (as that term is defined under California Civil Code Section 2782.8), then, and only to the extent required by California Civil Code Section 2782.8, which is fully incorporated in this Agreement, Contractor’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Contractor, and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction. Contractor’s liability for such claim, including the cost to defend, shall not exceed Contractor’s proportionate percentage of fault. The parties expressly agree that any payment, attorneys fee, costs or expense City incurs or makes to or on behalf of an injured employee under City’s self-administered workers’ compensation program is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B City Attorney Approved 10/23/2025 3 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor’s agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VII"; OR with a surplus line insurer on the State of California’s List of Approved Surplus Line Insurers (LASLI) with a rating in the latest Best’s Key Rating Guide of at least “A:X”; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report. 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless Risk Manager or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. The full limits available to the named insured shall also be available and applicable to City as an additional insured. 10.1.1 Commercial General Liability (CGL) Insurance. Insurance written on an “occurrence” basis, including personal and advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 10.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $2,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor’s profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2 Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to City. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 If Contractor maintains higher limits than the minimums shown above, City requires and will be entitled to coverage for the higher limits maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage will be available to City. Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B City Attorney Approved 10/23/2025 4 10.2.4 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy of the work product for Contractor’s records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in City and Contractor relinquishes all claims to the copyrights in favor of City. Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B City Attorney Approved 10/23/2025 5 15. NOTICES The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement are: For City: For Contractor: Name Paul Ho Name Lizz Moss Title Asst Human Resources Dir. Title Secretary Dept Human Resources Address PO Box 3160 CITY OF CARLSBAD Laguna Hills, CA 92654-3160 Address 1635 Faraday Avenue Phone 949-472-0645, Ext. 102 Carlsbad, CA 92008 Email lmoss@nsc2000.com Phone 760-621-1223 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. Contractor shall report investments or interests as required in the City of Carlsbad Conflict of Interest Code. Yes ☐ No ☒ 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement. 18. SEVERABILITY If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 19. CALIFORNIA AIR RESOURCES BOARD (CARB) ADVANCED CLEAN FLEETS REGULATIONS Contractor’s vehicles with a gross vehicle weight rating greater than 8,500 lbs. and light-duty package delivery vehicles operated in California may be subject to the California Air Resources Board (CARB) Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-clean- fleets. Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B City Attorney Approved 10/23/2025 6 20. DISCRIMINATION, HARASSMENT, AND RETALIATION PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination, harassment, and retaliation. 21. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 22. TERMINATION In the event of Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. City may terminate this Agreement by tendering thirty (30) days written notice to Contractor. Contractor may terminate this Agreement by tendering thirty (30) days written notice to City. In the event of termination of this Agreement by either party and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 23. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 24. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B City Attorney Approved 10/23/2025 7 prosecution. Contractor acknowledges that California Government Code Sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 25. JURISDICTION AND VENUE This Agreement shall be interpreted in accordance with the laws of the State of California without regard to, or application of, choice of law rules or principles. Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 26. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 27. THIRD PARTY RIGHTS Nothing in this Agreement should be construed to give any rights or benefits to any party other than City and Contractor. 28. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. This Agreement may be executed in counterparts. Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B City Attorney Approved 10/23/2025 8 29. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. Executed by Contractor this___________ day of _______________________, 20____. CONTRACTOR CITY OF CARLSBAD, a municipal corporation of the State of California National Safety Compliance, a California corporation By: By: (sign here) Laura Rocha Deputy City Manager, Administrative Services David Raslowsky, President (print name/title) ATTEST: By: SHERRY FREISINGER, City Clerk (sign here) By: Lizz Moss, Secretary Deputy / Assistant City Clerk (print name/title) If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups. Group A Group B Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CINDIE K. McMAHON, City Attorney BY: _____________________________ Sr. Assistant City Attorney Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B 30th 26June City Attorney Approved 10/23/2025 9 EXHIBIT A SCOPE OF SERVICES AND FEES SCHEDULE 1. Contractor agrees to assist City in the development and implementation of a Controlled Substance & Alcohol Use and Testing Policy consistent with regulations set forth in the Code of Federal Regulations (“Code”) 49 CFR Part 40 and 49 CFR Part 382, currently in effect. 2. Contractor agrees to contract with qualified collection sites of the City’s choice, to perform collection services for City and a qualified Medical Review Officer (MRO). Contractor agrees to assume responsibility for providing the City with all necessary forms for proper collection, handling and shipment of the specimen collections. Should City decide to use a collection site or sites outside the City, Contractor may designate a collection site within their Network and set up prior to use to perform donor specimen collection. It shall be the sole responsibility of City to assume proper certification, qualification, forms and any and all additional expenses for such collection services performed outside Contractor network. Additionally, City shall be responsible for all chain of custody liability until such time as the specimen collection(s) reaches a Department of Health and Human Services (HHS) Certified Laboratory. 3. Contractor agrees to be responsible for all transportation costs by overnight courier service to an HHS Certified Laboratory of all donor specimen(s), which City has authorized Contractor to collect. 4. Contractor agrees to contract directly with an HHS Certified Laboratory(ies) to provide drug- testing services according to and in compliance with all applicable regulations as specified in the Code. Contractor will establish a "no test" policy with said HHS Certified Laboratory(ies) to ensure that no donor specimen will be tested if the Chain of Custody and required control forms (as defined in the Code) should be incomplete, inadequate, or should the integrity of the Chain of Custody for such donor specimen be in question. 5. Contractor agrees to receive or cause to be received on behalf of City all drug test results electronically (i.e., via facsimile or computer) from the HHS Certified Laboratory(ies). All drug results will be reported electronically directly to the qualified Medical Review Officer (MRO) contracted by Contractor at the time of the test. 6. Contractor agrees to properly maintain all negative laboratory results for a minimum of one (1) year and all positive laboratory results for a minimum of five (5) years, or as may be required by the Code, and as amended or revised from time to time. 7. Contractor agrees to validate or cause to be validated in accordance with the Code, and report to City all true positive results in accordance with the then nationally accepted standards of medical judgment to the extent that said standards are consistent with the HHS Guidelines and the City's Drug and Alcohol Testing Policy for Employees in Safety Sensitive Positions, as outlined in Administrative Oder Number 64. Contractor agrees to provide Substance Abuse Professional (SAP) Network contact information to the Employer's Designated Representative (DER) for all donors who test positive or otherwise violate the Code. 8. Contractor’s contracted service agents agree to report, in accordance with the Code, to City all test results in accordance with HHS requirements, and their guidelines. 9. Contractor agrees to conduct alcohol use testing for City in accordance with the Code, as amended or revised from time to time. Contractor’s service agents will report all test results to Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B City Attorney Approved 10/23/2025 10 City as soon as reasonably available following testing. Contractor agrees to maintain all test results in accordance with Section seven (7) of this Agreement and Paragraph six (6) above. 10. Contractor agrees to be responsible for maintaining the random testing program in accordance with the Code on a periodic basis to be determined jointly by Contractor and City. Contractor agrees to generate a random sampling of eligible participants. City agrees to maintain an accurate employee database to support random testing selections. Contractor agrees to randomly select eligible participants using a scientifically valid method for controlled substances and alcohol misuse selection in accordance with the Code. Selection and testing will be at the minimum rates established at the time by the Code, as amended or revised from time to time. 11. Contractor agrees to have established Trust Service Criteria (TSC) in the security, availability, processing integrity, confidentiality, and privacy of all City data and information provided to, maintained by and communicated to Contractor and Contractor’s service agents. Contractor will conduct annual audits of its Service Organization Controls (SOC) and produce a SOC-2 audit report that is available to City upon request to Contractor. 12. Contractor agrees to provide an electronic reporting protocol for reporting results and other pertinent information to City. Contractor also agrees to provide City with reports as required by the Code to include annual Management Information System (MIS) summaries and semi- annual laboratory statistical report to be available for annual audits by other regulatory agencies. 13. Contractor agrees to be available for expert witness testimony and opinions as may be reasonably required by City or City's legal counsel at Contractor reasonable and customary hourly rate(s) as outlined in the FEES-C/TPA Service Table. FEES–C/TPA SERVICE TABLE Although pricing is not the commanding consideration in choosing a substance abuse testing program, the economics of substance abuse testing cannot be overlooked. National Safety Compliance, Inc. is pleased to offer the following competitive fees for the TPA services below: PROCEDURE/SERVICE PROFILE COST Company Enrollment Fee (FMCSA Drug & Alcohol Policy Included) $ 495.00 Annual Administration Fee $ 165.00 Drug & Alcohol Training Video Package* (Optional) $ 429.00 Supervisor / Administrator Guide Training Manual (each)* (Optional) $ 52.95 Employee EAP Training Guide (each)* (Optional) $ 9.95 Onsite Supervisor Training (Portal to Portal, plus Material fees) * (Optional) $ 155.00/hr. Onsite Driver Training (Portal to Portal, plus Material fees) * (Optional) $ 155.00/hr. Drug Test Fee Includes network collection, initial testing & MRO $ 75.50 Alcohol Test Fee (per test) (Breath Alcohol or Saliva) $ 46.00 Collection Only (use your Chain-of-custody and Collection Devices) $ 45.00 Split Specimen Testing and/or D & L Isomer Lab Test $ 175.00 each Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B City Attorney Approved 10/23/2025 11 FEES–C/TPA SERVICE TABLE (Continued) Mobile Unit Standby Fee** $ 110.00/Hr. Random Testing Program / Annual Statistical Reports Included Specimen Collections/Forms (Quest, or NSC Onsite - Network Clinic) Included Specimen Collections/Forms (Out of Network Clinics - OON) *** Variable HHS Certified Laboratory Services / Transportation of Specimens Included MRO Review/MRO Interview Included Qualified Substance Abuse Professional Network Referral Included Expert Witness Testimony (per hr. portal/portal, plus Expenses) $ 800.00 Additional Insured Endorsement (If required by client) $ 150.00 Annual DP Live Access (Optional) $ 115.00 Annual Additional User License Fee (s) for DP Live (Optional Service) $ 90.00 Notes: 1. NSC can report employer violation records and perform queries on the employer’s behalf in the FMCSA Drug and Alcohol Clearinghouse (DACH) with our optional DACH Service. (DACH Service Agreement required). 2. Shipping/Processing charged on all products, plus sales tax for California customers. Handouts for onsite classes emailed to City for printing/distribution to attendees. NSC can print for an additional fee. 3. Fuel surcharge applies for all mobile collections, plus an additional fee of $75.00 for less than 10 tests performed during one visit and $125.00 for less than 5 tests performed during one visit. 4. City must ensure clinics used are set up by NSC, prior to use/testing, to ensure proper billing protocols followed. If a facility is used for any service above and NSC was not informed prior to use, City must forward bill(s) to NSC’s accounting department immediately for proper processing/correction. NSC is not responsible, nor will refund City for any fees paid directly to clinics in error. Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B WAIVER REQUEST FORM FACTORS IN SUPPORT OF REQUEST TO MODIFY INSURANCE REQUIREMENT(S) Generally, a modification to the coverage requirement will be accepting a lower limit of coverage or waiving the requirement(s). Requested by: (Name and Department) (Date) Proposed modification(s) to the __________________ requirement(s) for (Type of insurance) (Name of contract) Reduce coverage to the amount of: $ . Waive coverage Other: FACTOR(S) IN SUPPORT OF MODIFICATION(S) (check those that apply) Significance of Contractor: Contractor has previous experience with the City that is important to the efficiency of completing the scope of work and the quality of the work-product. [explain] Significance of Contractor: Contractor has unique skills and there are few if any alternatives. [explain: include number of candidates RFP sent to and number responded if applicable] Contract Amount/Term of Contract: $ . Work will be completed over a period of . Professional Liability coverage is not available to this contractor or would increase the cost of the contract by $ [explain]. Other (e.g. explain why exposures are minimal, how exposures are covered in another policy, exposure control mechanisms, and any other information pertinent to your request): Approved by Risk Manager for this contract only: (Signature) (Date) Jason Kennedy, Human Resources/Risk Management 6/17/2026 CGL/Auto Drug & Alcohol Testing Services n 1M/$2M n National Safety Compliance is our third party service provider for random drug and alcohol testing. We have contracted with this contractor for 5 years to meet both federal and state requirements for commercial licensed drivers. n Contractor has the certified personnel and assets to come onsite to conduct testing services which limit the impact on city operations by limiting the amount of time staff are pulled from their respective work duties to complete testing. n $35,000 p/yr /5yrs 5 years n Given scope of work, reduced CGL and auto limits are appropriate. Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B 6/30/2026 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THISCERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED?(Mandatory in NH) DESCRIPTION OF OPERATIONS belowIf yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIREDAUTOS ONLY 3/18/2026 Marsh &McLennan Agency LLC20NorthMartingaleRoadSuite100SchaumburgIL60173 Charles Smith Jr. (312)705-2704 (847)440-9133 Charles.SmithJr@MarshMMA.com Employers Compensation Insuran 11512 NATISAF-02 United Financial Casualty Comp 11770NationalSafetyCompliancePOBox3160LagunaHillsCA92654 EVANSTON INSURANCE COMPANY 35378 676675859 C X 1,000,000 X 100,000 5,000 Excluded 2,000,000 X Y 2AA447927 1/30/2026 1/30/2027 Excluded B 1,000,000 X X 975788569 12/23/2025 6/23/2026 A XYEIG5831853011/24/2026 1/24/2027 1,000,000 1,000,000 1,000,000 It is agreed that the following are added as Additional Insureds,when required by written contract,on the General Liability on a primary and non-contributorybasiswithrespecttooperationsperformedbytheNamedInsuredinconnectionwiththisproject. The City of Carlsbad and its employees,representative,officers,and agentsAWaiverofSubrogationinfavoroftheAdditionalInsuredsappliestotheWorker’s Compensation policy only,when required by written contract and whereallowedbylaw. City of CarlsbadHumanResources/Risk ManagementCarlsbadCA Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B MEGL 0009-01 09 18 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 COMMERCIAL GENERAL LIABILITY POLICY NUMBER: 2AA447927 EVANSTON INSURANCE COMPANY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BLANKET ADDITIONAL INSURED This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM LIQUOR LIABILITY COVERAGE FORM OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE FORM PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE FORM SCHEDULE Additional Premium:Check box if fully earned ) Please refer to each Coverage Form to determine which terms are defined. Words shown in quotations on this endorsement may or may not be defined in all Coverage Forms. A.Who Is An Insured is amended to include as an additional insured any person or entity to whom you are required by valid written contract or agreement to provide such coverage, but only with respect to "bodily injury", "property damage" (including "bodily injury" and "property damage" included in the "products-completed operations hazard"), and "personal and advertising injury" caused, in whole or in part, by the negligent acts or omissions of the Named Insured and only with respect to any coverage not otherwise excluded in the policy. However: 1.The insurance afforded to such additional insured only applies to the extent permitted by law; and 2.The insurance afforded to such additional insured will not be broader than that which you are required by the valid written contract or agreement to provide for such additional insured. Our agreement to accept an additional insured provision in a valid written contract or agreement is not an acceptance of any other provisions of such contract or agreement or the contract or agreement in total. When coverage does not apply for the Named Insured, no coverage or defense will apply for the additional insured. No coverage applies to such additional insured for injury or damage of any type to any "employee" of the Named Insured or to any obligation of the additional insured to indemnify another because of damages arising out of such injury or damage. B.With respect to the insurance afforded to these additional insured, the following is added to limits of insurance: The most we will pay on behalf of the additional insured is the amount of insurance: 1.Required by the valid written contract or agreement; or 2.Available under the applicable limits of insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable limits of insurance shown in the Declarations. All other terms and conditions remain unchanged. 111 MARKEL® Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B CG 20 01 04 13 © Insurance Services Office, Inc., 2012 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NONCONTRIBUTORY – OTHER INSURANCE CONDITION This endorsement modifies insurance provided under the following: The following is added to the Other Insurance Condition and supersedes any provision to the contrary: Primary And Noncontributory Insurance (1)The additional insured is a Named Insured under such other insurance; and (2)You have agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to the additional insured. Docusign Envelope ID: D2240A80-50D4-859B-8011-97FEAFFE899B