5.7. SR 10-16-1995-~ r ~~
{
(
ity of ~
lk~ •
River
TO:
FROM:
DATE:
MEMORANDUM
Mayor and City Council
Sandra Thackeray, City Clerk
October 16, 1995
ITEM 5.7.
SUBJECT: Drug and Alcohol Testing Program
ATTACHMENTS
~ The Minnesota Counties Insurance Trust Drug and Alcohol Testing
Program Participation Agreement
~ An article provided by the League of Minnesota Cities entitled "Drug and
Alcohol Testing for Commercial Drivers."
~ Service Agreement between the Minnesota Counties Insurance Trust, and
MEDTOX, Inc.
•
INTROD UCTION
New federal regulations require implementation of drug and alcohol testing
for drivers who are required to have a commercial driver's license (CDL).
The intent of this law is to provide for safer roads, airways and tracks by
removing drivers who are impaired by alcohol or drugs.
BACKGROUND
The City of Elk River is in the process of developing a Drug and Alcohol
Testing Program to comply with the Federal requirements. To comply with
the law the City is required to do the following:
/ Write a drug and alcohol testing policy
/ Arrange for alcohol tests including authorized equipment and a breath
alcohol technician
/ Arrange for drug tests including a collection site, a certified laboratory
• and a medical review officer
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
Council Memo -Drug and Alcohol Testing Program
October 16, 1995
Page 2
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/ Provide training for supervisors on the recognition and detection of
alcohol use and drug use
The city of Elk River is proposing to join a consortium for drug and alcohol
testing in an effort to lower its cost of implementation and to lessen the
administrative burden. The city is proposing to enroll in the AMC/MCIT
(Association of Minnesota Counties/Minnesota County Insurance Trust) Drug
and Alcohol Testing Program. The AMC/MCIT has entered into a Service
Agreement with MEDTOX, Inc. to assist its members in complying with the
federal rules for drug and alcohol testing.
MEDTOX will provide the following services to all parties entering into a
participation agreement with AMC/MCIT:
X Locate a collection site for drug testing.
X Recommend a site for alcohol testing.
X Provide the services of a Medical Review Officer (MRO). The MRO is a
licensed physician responsible for receiving laboratory results generated
by an employer's drug testing program.
X Random driver selection will be performed by the MRO.
• X Provide the required training for supervisors.
X Provide and maintain required records, notifications and reports.
The cost to join the AMClMCIT Drug and Alcohol Program is $250 annually.
The cost for each drug test is $46.00. The cost for alcohol testing is
approximately $15.00 - $35.00 per test depending upon the collection site.
COURSE OF ACTION
To implement the Drug and Alcohol Testing Program, the city must do the
following:
^ Enroll in the AMC/MCIT Drug and Alcohol Testing Program
^ Designate a person to administer the city program
^ Draft and adopt a drug and alcohol testing policy
^ Register supervisory personnel in training seminars
^ Communicate the city policy to all employees covered under these
regulations
^ Set up a protocol and secure filing system for the drug and alcohol record
^ keeping
Arrange with MEDTOX Laboratories, Inc. for collection sites in the area
Council Memo -Drug and Alcohol Testing Program
October 16, 1995
Page 3
• ^ Enlist drivers under this program in the AMC/MCIT random program
Staff is proposing that the Council consider the first two Course of Action
items at this time. Following the completion of these two items, the City will
begin drafting a drug and alcohol policy and enrolling the supervisors in a
training course. The City's program must be in effect by January 1, 1996.
COUNCIL ACTION REQ UESTED
~ Motion to enter into a Participation Agreement providing for the delivery
of drug and alcohol testing services by the Minnesota Counties Insurance
Trust (MCIT) for the City of Elk River.
~ Motion to designate the City Clerk as the person responsible for
administering the City's Drug and Alcohol Testing Program.
s: \council\drugmemo. doc
•
•
THE MINNESOTA COUNTIES INSURANCE TRUST
DRUG AND ALCOHOL TESTING PROGRAM
PARTICIPATION AGREEMENT
THIS PARTICIPATION AGREEMENT provides for the delivery of drug and
alcohol testing services by the Minnesota Counties Insurance Trust (MCiT) for the
City of Elk River, "Member."
1. SERVICES TO BE PROVIDED
MCIT agrees to provide services to the Member in accordance with the drug and alcohol
. testing service provider contract or successor contract, the current contract is attached
hereto and incorporated herein as Exhibit 1. MCIT is not obligated to provide such
services should the drug and alcohol testing service provider contract be terminated or
cancelled.
2. SERVICE FEES
The Member will compensate MCIT in accordance with the fee schedule in ARTICLE IV
of Exhibit 1. MCIT will submit invoices to the Member on a monthly .basis for services
performed under this Agreement. The Member will provide payment to MCIT within
thirty (30) days following receipt of invoice.
•
• 3. TERMINATION
This Agreement may be terminated by .MCIT or the Member upon thirty (30) day written
notice to the other party. The Member will pay for services provided up to the date of
termination.
4. MCIT ASSOCIATE MEMBER
The City of Elk River agrees to become an Associate Member of the Minnesota Counties
Insurance Trust (MCIT) to be eligible to receive the services provided in this Agreement.
The City of Elk River assumes no liabilities or obligations as an MCIT Associate Member
except as set forth in this Agreement. The City of Elk River agrees to .pay MCIT an
• .annual administrative service fee of Two Hundred and Fifty Dollars ($250.00) during the
term of this Agreement.
IN WITNESS WHEREOF, MCIT and the City of Elk River have caused this Agreement to be
• executed by the person authorized to act in their res ective names on the date shown below:
P
MINNESOTA COUNTIES INSURANCE TRUST
~. Date: ~"' ~ d? - ~ J-
Director
CITY OF ELK RIVER
Date:
•
Attest:
Date:
•
Drug and alcohol
testing for
commercial
drivers
ELLEN LONGFELLOW AND
KAY MCALONEY
he Federal Omnibus
C
Transportation Employee
Testing Act of 1991 requires
drug and alcohol testing of
employees driving motor
vehicles insafety-sensitive
functions. Prior to 1994, local govern-
ments were only required to do such
testing of their mass transit employees.
In February 1994, rules extended these
testing requirements to other local
government employees. Local govern-
ments now must test any employee who
is required to have a commercial
driver's license (CDL) to perform a city
job. The federal rule pre-empts the
Minnesota state drug and alcohol
testing statute where it is inconsistent.
The intent of the act and rules is to
provide for safer roads, airways and
tracks by removing drivers who are
impaired b}~ alcohol and/or drugs.
Studies show that drugs and alcohol are
often contributing factors in traffic
accidents.
Which employers are
covered by these
rules?
Any employer who has an employ-
A ee that is required to have. a CDL.
Not sure how to spell the oast name of the
Eveleth Mayor?
(That's Vlaisavljevich)
Confused about the population of Tenny?
(three)
Need to mail a letter to Lakeville City Half?
(20195 Holyoke Ave. Lakeville, 55044-9047)
You need the League of Minnesota Cities 1995 Directory of
Minnesota City Officials. It contains names of city officials and
department heads, city hall street addresses and .zip codes,
designation of plan Q and Plan B cities, council meeting dates,
telephone numbers of city hall or city clerk, 1993 population
estimates, and legislative congressional districts.
•
I L s`
For more information contact the League at .(612) 490-5500 or
(800) 925-1122.
What are the
effective dates?
January 1, 1995 for those employ-
ers with 50 or more commercial
drivers. January 1, 1996 for those em-
ployers with less than 50 commercial
drivers.
Q Which employees
must be tested?
Any employee who has a GDL
under Minnesota law. CDLs are
required to drive commercial vehicles
and to drive non-commercial vehicles if
they are used for a few specific pur-
poses. CDL classifications under
Minnesota Statute 171.02 subd. 2
includes Class CC, Class B and Class A
vehicles. Commercial vehicles include
vehicles that weigh more than 26,000
pounds, carry more than 15 passengers
and transport hazardous materials.
Non-commercial vehicles that require
CDLs include single unit vehicles with
hazardous waste endorsement, and
single unit vehicles with school bus
endorsement for vehicles designed for
15 or fewer passengers -including the
driver. Vehicles specifically exempted
from the CDL requirement are fire
trucks and emergency fire equipment,
whether they weigh more than 26,000
pounds or not, while driven by an on-
duty firefighter.
What is a safety-
. sensitive function?
The following on-dutp functions
are safety-sensitive:
• When a driver is waiting to be
dispatched;
• When inspecting and servicing any
commercial vehicle;
O Driving time;
! All other time in a commercial
vehicle, other than sleeping in a
sleeper berth;
! ~ti'hen loading and unloading, or
supervising loading and unloading of
a vehicle;
!All time spent on requirements when
an accident occurs; and
! All times at a disabled vehicle.
24 MtNNE50TA CIT1E5 /SEPTEMBER 1995
. What is a city
required to do?
First, the city must write a drug
and alcohol testing policy. For
those of you who attended the 1995
Loss Control Workshops, there were
three samples on pages 225-265 of the
three-ring binder materials. For a copy
of these samples, call the League's
Research Department at (800) 925-
1122 or (612) 490-5600. Second, the
city must arrange for alcohol tests
including authorized equipment and a
breath alcohol technician. Third, the
city must arrange for drug tests
including a collection site, a certified
laboratory and a medical review officer.
All employee drug and alcohol testing
records are confidential and cannot be
released without the employee's
consent.
The following items must be in-
cluded in the city's written drug and
alcohol testing policy:
~ The name of the person who will
answer questions about the city's
program;
® Which employees are covered by the
testing program;
~ Information onsafety-sensitive
functions;
~ What conduct is prohibited;
'4 (~ When testing will be done;
~i What are the testing procedures;
~ When employees are required to
submit to tests;
® What the consequences are if an
employee refuses a test;
i= Consequences of a positive drug/
alcohol test;
Information on the effects of drugs
and alcohol use and intervention
methods;
Each employee must sign a statement
that they have received a copy of the
policy.
When must
employees be
tested?
Pre-employment, post-accident,
reasonable suspicion, random,
return to duty and follow-up.
What kinds of tests
are required?
Breath test for alcohol; urine test
for drugs.
•
Who pays for the
test?
The federal rules do not specify
who pays for the tests. Under
state }aw (Minnesota Satute 181.955),
the employer pays for the test. The
employer may require the employee to
pay for a re-test if the employee
requests a re-test.
What use or conduct
is prohibited
Prohibited alcohol use when
performing safety-sensitive
functions includes hay=ing an alcohol
concentration of .04 or greater,
possessing and using alcohol while on
duty, and alcohol use four hours before
going on duty.
Prohibited drug use when perform-
ing safety-sensitive functions includes
the use of any prohibited drugs:
marijuana (THC metabolite), cocaine,
amphetamines, opiates (including
heroin), and phencyclidine (PCP).
These drugs are prohibited both on- or
off-duty.
The following conduct is prohibited:
employee refusal to test and an
employer permitting operation of a
vehicle with knowledge of prohibited
actby the employee.
Employers must provide information
on drugs and alcohol to all employees
covered by these rules. All supervisors
and officials must be provided with at
least one hour of training on the signs
and symptoms of drug and alcohol
abuse.
What possible
programs are there?
Cities can work independently,
with other local governments,
with private companies that might offer
related services, or with a consortium.
Several consortiums already exist, such
as the Association of Minnesota
Counties and the Minnesota Municipal
Utilities Association.
There are civil penalties with fines of
$500 to $10,000 a day against employ-
ers who do not comply with these rules.
Cities should start planning for the
January i, 1996 deadline. Please watch
future issues of Minnesota Cities maga-
zine and the Cities Bulletin for more
information. ~
Ellen Longfellow is Defense/Loss
Control Attorney for LMCIT.
Kay McAloney is Personnel Advisor
for the League of Minnesota Cities.
MINNESOTA [ITIES /SEPTEMBER 7995 25
SERVICE AGREEMENT
•
THIS AGREEMENT, made and entered into this 27th day of December, 1994, between
the Minnesota Counties Insurance Trust, hereinafter referred to as MCIT, and Medtox
Inc., hereinafter referred to as Medtox.
•
•
ARTICLE I PURPOSE
•
1. PURPOSE
The MINNESOTA COUNTIES INSURANCE TRUST (MCIT) is a joint powers
organization created pursuant to Minnesota Statutes Section 471.59 and 471.981. MCIT
provides a means for Minnesota Counties and related entities to self insure workers'
compensation, property and casualty and employee benefits through a pooling
arrangement. MCIT also provides its members with risk management services to help
assure compliance with state and federal rules and regulations. MCIT desires to secure
the services of Medtox to assist its members and members of the Association of
Minnesota Counties (AMC) in complying with the federal rules for drug and alcohol
• testing. The purpose of this Agreement is to set forth the duties and obligations of the
parties.
ARTICLE II -SERVICE CENTER AND PERSONNEL
2. SERVICE CENTER AND PERSONNEL
2.1. SERVICE CENTER
Medtox shall maintain a principle Service Center in the State of Minnesota for
coordinating the delivery of services provided under the terms of this Agreement.
C]
2
2.2. PERSONNEL
Medtox agrees to assign competent personnel to perform those tasks necessary to
provide the services specified in this Agreement. Medtox shall make certain that
its staff possesses the necessary professional background, experience and on-
going training to provide the services described in this Agreement. MCIT will be
advised of the identity and qualifications of all professional personnel providing
direct services to MCIT.
ARTICLE III -SERVICES TO BE PROVIDED
3. SERVICES TO BE PROVIDED
3.1. Collection Sites -Medtox shall establish collection sites/clinics
throughout the state to collect urine specimens for drug tests. Medtox
shall permit members to make independent arrangements with clinics as
collection sites and allow such counties to purchase other services
pursuant to this agreement.
3.2. Supplies -Medtox will provide Members with all supplies necessary for
the collection of urine specimens, including but not limited to, specimen
bottles with instructions, labels, order forms, chain of custody forms and
prepaid overnight courier supplies.
C]
3
3.3. Testing Laboratory -Medtox shall conduct an actual analysis of the
specimen provided by the collection site/clinic, using an immunochemical
method, to determine the presence or absence of the following drugs:
3.3.1. Marijuana
3.3.2. Cocaine
3.3.3. Amphetamines
3.3.4. Opiates
3.3.5. Phencyclidine (PCP)
At the request of the Member, Medtox shall screen for additional drugs.
Medtox will automatically confirm by Gas Chromatography/Mass
Spectrometry (GC/MS) all presumptive positive results from screening of
the drugs named above. The level at which a positive result is confirmed
shall be according to SAMHSA standards for the respective drugs.
Medtox will report all test results to the designated Medical Review
Officer within seventy-two (72) hours of receipt of the urine specimen.
All results will be reported either negative or positive without numerical
value.
3.4. Chain of Custody -Medtox shall maintain proper chain of custody
controls during all testing and/or handling of urine specimens and proper
chain of custody documentation. Medtox will retain custody of any
confirmed positive specimens under proper chain of custody and secured
refrigerated conditions as per SAMHSA regulations.
4
3.5. Medical Review Officer (MRO) - Medtox shall arrange for Medical
Review Officers to independently review drug test results received from
the testing laboratory and report results to the member. The MRO shall
protect employees from false-positive results due to collection or chain-of-
custody difficulties, technical inaccuracies, or drug interactions. The
MRO should ensure that no legitimate medical use of drugs gets reported
to the member as an unacceptable positive result. Before reporting a
positive result to the member, the MRO shall give the individual an
opportunity to discuss the test result. The Medical Review Officers shall
be licensed physicians. Medical Review Officer services shall include but
not be limited to the following functions:
3.5.1. Receive and review test results from the laboratory.
3.5.2. Review certified copies of chain of custody forms
3.5.3. Report negative results to designated member personnel.
3.5.4. Interpret positive results.
3.5.5. Conduct confidential medical interviews with positive tested
individuals.
3.5.6. Consult with collection site and laboratory personnel.
3.5.7. Request quantitative results, if needed.
3.5.8. Order analysis of split specimen, if requested.
3.5.9. Determine whether positive tests are the result of prescribed or
illicit drugs.
3.5.10. Report results of verified positive tests to designated member
5
personnel.
3.5.11. Store all positive results for five (5) years.
3.5.12. Order blind specimen testing as needed.
3.5.13. Assist members with post-accident testing requirements.
The Medical Review Officer shall also assist members in conducting random,
unannounced drug and alcohol tests. Unless changed by DOT, the total number
of drug tests conducted each year must equal at least 50% of the safety-sensitive
driver positions. These tests must be spread reasonably throughout the calendar
year. Members should be given the opportunity to conduct the random selection
through participation in pools or consortia, in which the number of drivers to be
tested may be based on the total number of subject drivers covered by the pool.
3.6. Alcohol Testing - Medtox shall assist members in the development of
procedures to comply with federal and/or state regulations for alcohol
testing. Such assistance shall include but not be limited to:
3.6.1. Designation of testing/collection sites.
3.6.2. Selection and procurement of Evidential Breath Testing Devices,
if necessary.
3.6.3. Selection of alternative alcohol testing methods as allowed by
federal or state regulations.
3.6.4. Designation of certified Breath Alcohol Technicians.
• 3.7. Record Keeping and Reports - Medtox shall assist members in
6
developing and maintaining records and preparing reports required by
federal or state regulations. These records and reports shall include, but
not be limited to:
3.7.1. Verified positive drug and alcohol tests.
3.7.2. Refusals to submit to tests.
3.7.3. Required calibration of Evidential Breath Testing Devices (EBTs).
3.7.4. Annual calendar year summary.
3.7.5. Records related to the collection process and required training.
3.7.6. Negative and canceled drug and alcohol test results.
3.8. Periodic Statistical Reports -Upon the request of the member, Medtox
will provide, on a monthly or quarterly basis as requested by the member,
a statistical report of the test results during the reporting period, to include
the following:
3.8.1. The number of specimens tested during the reporting period.
3.8.2. The number of specimens tested positive.
3.8.3. A breakdown of positive results, indicating the drug for which
positive results were obtained.
3.8.4. A breakdown of results per test category; i.e., pre-employment,
post-accident, random.
3.9. Expert Witness Testimony - Medtox will provide expert witness
testimony if requested by the member.
7
3.10. Education and Training -Medtox shall provide education and training to
members regarding their obligations under federal and state regulations.
Medtox and MCIT shall agree to the number and location of training, as
well as the content of the meetings. Meetings shall inched both regional
sessions and selected on-site member meetings.
3.11. Update of Rules and Regulations -Medtox shall inform and update
members regarding any revisions to federal or state rules and regulations
concerning drug and alcohol testing requirements.
ARTICLE IV -COMPENSATION
•
4. COMPENSATION
Medtox shall be compensated in accordance with the following fee schedule:
4.1. Laboratory Testing Fees
4.1.1. Five Drug DOT Panel - 23 0
- Inclusive drugs: Amphetamines, Cocaine, Opiates,
PCP, THC (100 ng/ml)
4.1.2. Drugs of Abuse Screens (non-DOT programs)
4.1.2.1. Five Drug Panel - 2 0
- Inclusive drugs: Amphetamines, Cocaine, Opiates,
8
PCP, THC (100ng/ml)
4.1.2.2. 6-8 Drug Panel - 23 0
- Inclusive drugs to be determined.
4.1.2.3. 9-11 Drug Panel - $26.00
Inclusive drugs to be determined.
4.2. Additional Service Fees
4.2.1. Specimen Collection - $20.00 each
4.2.2. Location and Coordination of Collection Facilities - o h r
4.2.3. Training and Continual Monitoring of Collection Facilities -
No Charge
4.2.4. Split Specimen Collection Kits - No Charge
4.2.5. Automatic Separation and Identification of 6-Monoacetylmorphine
- No har
4.2.6. Automatic Separation and Identification of d & 1
methamphetamine - No Charge
4.2.7. Ability to Identify and Confirm UrinAide/Gluteraldehyde -
No Charge
4.2.8. Testing, Customer Service and Professional Staff Available
24-Hours a Day, 7 Days a Week - No Charge
4.2.9. Customized Statistical Reports - No Charge
4.2.10. Medical Review Officer Services, per Specimen (includes random
. selection program) - .00
9
4.2.11. Expert Witness Testimony
• - Phone Discussions - No Charge
- Subpoenaed testimony to support the integrity of
results - No Charge beyond actual expenses
- Expert testimony not directly related to the results
in question - $125 per hour plus actual expenses
4.2.12. Employee Training - N har e
4.2.13. DOT mandated supervisor training involving two (2) hours on
substance and alcohol abuse recognition - No Charge for up to
eigh~8 training sessions. Additional sessions billed at $1000
ner session.
• 4.3. Terms of Payment - Medtox shall submit invoices to MCIT on a monthly
basis for services performed under this Agreement. Invoices shall itemize
fees by MCIT or AMC member. MCIT will provide payment within
forty-five (45) days following receipt of invoice. Payment by MCIT does
not waive MCIT's right to object to charges later found to be improper.
•
10
ARTICLE V -RECORDS AND FILES
5. RECORDS AND FILES
5.1. MCIT Access and Ownership
At all times during the term of this Agreement and for a period of three (3) years
following any termination or expiration, MCIT, its attorneys and other
representatives, asauthorized by MCIT, shall have access to records and files
maintained by Medtox for MCIT and each MCIT member or applicant during
normal business hours. All record, books and files relating to the operations and
business of MCIT are the property of MCIT. As custodian of these documents,
Medtox shall comply with all applicable requirements of the Minnesota
Governmental Data Practices Act, including, but not limited to, the requirements
of M.S. 13.61 or similar state or federal laws.
5.2. Care of Data
Medtox shall take all steps necessary to safeguard data, files, reports or other
information from loss, destruction or erasure. Liability for cost or expense of
replacing, or damages resulting from the loss of such data shall be borne by
Medtox unless at the time of loss, said data was in the exclusive custody of
MCIT.
•
11
5.3. Confidentiality
Medtox agrees that information related to drug and alcohol testing services
provided under this Agreement shall be kept confidential and shall be used only in
connection with the performance of duties for members. In case of a conflict
between this paragraph and the Minnesota Data Practices Act or similar state of
federal law, the Minnesota Data Practices Act or similar state or federal law shall
govern.
ARTICLE VI -NON-COMPETITION AGREEMENT
6. AGREEMENT NOT TO COMPETE
Medtox and its subsidiaries through their acknowledgment by signature agree
during the term of this Agreement, unless waived by MCIT, and for a period of
four years after termination of the Agreement, unless MCIT agrees in writing to a
shorter period, not to compete in the State of Minnesota with MCIT or AMC by
marketing or offering 1.) any similar program of coverage or services provided by
MCIT or 2.) the services provided within this agreement to MCIT or AMC
members who are or were members of MCIT or AMC at any time during the term
of this agreement. Medtox and its subcontractors agree not to use any records,
files or data developed or maintained as a result of this agreement for any purpose
other than to provide services listed in this Agreement.
•
12
• ARTICLE VII -TERM AND TERMINATION
7. TERM AND TERMINATION
7.1. Contract Term
The term of this Agreement shall commence on October 1, 1994 and shall continue
in full force and effect except as stated below until December 31, 1998.
7.2. Termination
Either party may terminate this agreement upon sixty (60) day written notice.
MCIT may terminate this agreement immediately upon a major breach in service or
• duty by Medtox.
7.3. Renewal Rates
Medtox will submit any proposed change in rates in writing to MCIT sixty (60)
days prior to the date of termination. Rate change becomes effective on the date
that it is accepted in writing by MCIT; during the interim, the old rate is applicable.
•
13
ARTICLE VIII -INTERPRETATION OF AGREEMENT
•
8. INTERPRETATION OF AGREEMENT
8.1. Pool Board's Policy
In the event of any disputes or questions as to exact nature of extent of services to
be provided under this Agreement, the parties hereto shall look to the record of the
MCIT Board's policy decisions and other relevant facts and circumstances as the
frame of reference for guidance and clarification as to said dispute or questions.
ARTICLE IX - INSURANCE/INDEMNIFICATION
9. INSURANCE/INDEMNIFICATION
9.1. Errors and Omissions -Medtox shall maintain errors and omissions
liability insurance with limits of liability of at least $1,000,000. Medtox
will continue to maintain such insurance with such limits during the term
of this Agreement and will provide MCIT with certificates evidencing
such coverage within thirty (30) days of the execution of this Agreement.
Medtox shall notify MCIT within ten (10) days of any change or
cancellation of errors and omission coverage.
14
9.2. Other Insurance - At all times during the term of this Agreement,
Medtox shall maintain General Liability, Automobile Liability, Fidelity
and, Workers' Compensation. Certificates of insurance coverage shall be
provided to MCIT upon request.
9.3. Indemnification -Medtox warrants that Medtox's drug and alcohol
testing policies, procedures and practices do and will at all times, comply
with governmental laws, rules and regulations. In consideration of MCIT
using Medtox's drug and alcohol testing program, Medtox agrees to
defend, indemnify and hold MCIT and AMC and their officers and
employees harmless from all loss, cost and expense (including court
costs and attorney's fees) resulting from claims arising from the failure
of Medtox's drug and alcohol testing policies, procedures and practices to
comply with any applicable governmental laws, rules and regulations, and
from any act or failure to act in connection with Medtox's performance
under this Agreement. MCIT agrees to indemnify, defend and hold
Medtox and its directors, officers, agents and employees harmless from
any loss, cost and expense (including court costs and attorney's fees) to
Medtox, arising out of or resulting from MCIT's negligence with respect
to the test results after they are received by MCIT or AMC members from
Medtox.
15
•
ARTICLE X -MISCELLANEOUS
10. MISCELLANEOUS
10.1. Certification -Medtox represents and warrants that it is in compliance,
and will continue to comply during the term of this Agreement with
federal and state laws, rules and regulations applicable to the licensure
and operation of drug testing services. Upon request of MCIT, Medtox
agrees to provide MCIT documentation regarding licensure/accreditation.
10.2. Subcontractors -Medtox shall not subcontract any of the services which
it is to provide without the express written approval of MCIT.
10.3. Independent Contractor -Medtox is expressly forbidden to act for MCIT
in any other capacity, or to represent itself in any manner as an agent of
MCIT, except under the terms hereof. During the term of this Agreement,
Medtox and Medtox's employee(s) shall be considered and act as an
independent contractor and shall not be considered as employee(s) of
MCIT or AMC. Medtox shall furnish all labor required to perform the
services and will have full control and direction over the method and
manner of performing those services.
16
10.4. Authority and Freedom from Conflict -Medtox represents and warrants
• to MCIT that:
10.4.1. Medtox has the lawful authority to enter into this Agreement and is
free of any obligation or restriction that would prevent it from
entering into this Agreement, create any conflict of interest or
impede its performance hereunder.
10.4.2. Medtox will not enter into any other agreement, undertake any
obligation or commit any act which would prevent its performance
or limit the rights of MCIT, AMC or their members hereunder.
10.5. Non-Waiver and Cumulation of Remedies -The failure by either parry at
• any time to enforce any of the provisions of this Agreement or any right or
remedy available hereunder or at law or in equity, or to exercise any option
herein provided, shall not constitute a waiver of such provision, right,
remedy or option or in any way affect the validity of this Agreement. The
waiver of any default by either party shall not be deemed a continuing
waiver, but shall apply solely to the instance to which such waiver is
directed. The remedies provided under this Agreement shall be cumulative
and not alternative, and the election of any one remedy for breach shall not
preclude the pursuit of other remedies.
10.6. Entire Agreement -This Agreement embraces the entire Agreement
•
17
between the parties. No oral agreement or representation concerning this
. Agreement shall be binding.
10.7. Choice of Law and Venue -This Agreement shall be governed by and
interpreted, construed, and enforced in accordance with the laws of the
State of Minnesota. Any action arising out of or relating to this
Agreement, its performance, enforcement or breach, will be venued in a
state or federal court situated within the State of Minnesota, and Medtox
and its sureties and guarantors hereby irrevocably consent and submit
themselves to the personal jurisdiction of said court for such purposes.
10.8. Severability -Every provision of this Agreement shall be construed, to
• the extent possible, so as to be valid and enforceable. If any provision of
this agreement so construed is held by a court of competent jurisdiction to
be invalid, illegal, or otherwise unenforceable, such provision shall be
deemed severed from this Agreement, and all other provisions shall remain
in full force and effect.
10.9. Assignment -Neither Medtox nor MCIT may assign, delegate or
otherwise transfer this Agreement or any of its rights or obligations
hereunder without the prior written consent of the other, which consent
shall not be unreasonably withheld, except that claims for money due or to
become due to Medtox under this Agreement may without such consent be
18
assigned to a bank, trust company or other financial institution.
:~
10.10. Amendments -This Agreement maybe altered, extended, changed or
amended in writing by mutual agreement of the parties hereto when dated
and attached hereto without altering the other terms of this Agreement.
10.11. Notice -Notice to be given hereunder by either parry to the other shall be
in writing and maybe effectuated by delivery of U. S. Certified Mail, Return
Receipt Requested. Notice hereunder shall be sufficient if properly
addressed and made to:
• MEDTOX LABORATORIES
402 WEST COUNTY ROAD D
ST. PAUL, MINNESOTA
MINNESOTA COUNTIES INSURANCE TRUST
125 CHARLES AVENUE
ST. PAUL, MINNESOTA 55103
•
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