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NORTH CAROLINA
ORANGE COUNTY Interim Health Director Service Agreement
This Service Agreement (hereinafter "Agreement"), made and entered into this the 241' day
of February 2017„ ("Effective Date") by and between Orange County, North Carolina a body
politic and corporate of the State of North Carolina (hereinafter, the "County") on behalf of the
Orange County Board of Health (hereinafter, "Board") and The University of North Carolina at
Chapel Hill on behalf of its School of Public Health(hereinafter, the " University").
WITNESSETH:
That the County and University, in accordance with Article 10 of Chapter 126 of the NC General
Statutes("Interchange of Governmental Employees") and for the consideration herein named, do
hereby agree as follows:
1. Services
a. Scope of Work.
i) This Agreement is for services to be rendered by an employee of the University to
the County for services of an Interim Health Director for Orange County, North
Carolina, as provided below in Section 3,Basic Services.
ii) By executing this Agreement,the University represents and agrees that University
is qualified to perform and fully capable of performing and providing the services
required or necessary under this Agreement in a fully competent,professional and
timely.manner.
iii) Time is of the essence with respect to this Agreement.
iv) The services to be performed under this Agreement consist of Basic Services, as
described and designated in Section 3 hereof. Compensation to the University for
Basic Services under this Agreement shall be as set forth herein.
2. Responsibilities of the University
a. Services to be provided. The University shall provide the County with all services
required in Section 3 within the time period set forth herein and in accordance with the
standards applicable to North Carolina local health departments.
b. Standard of Care.
i) The University shall exercise reasonable care and diligence in performing services
under this Agreement in accordance with the standards applicable to North
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Carolina local health departments and in accordance with applicable federal, state
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and local laws and regulations applicable to the performance of these services.
ii) The University shall not, except as otherwise provided for in this Agreement,
subcontract the performance of any work under this Agreement without prior
written permission of the County. No permission for subcontracting shall create,
between the County and the subcontractor,any contract or any other relationship.
iii) University is an independent contractor of County. Any and all employees of the
University engaged by the University in the performance of any work or services
required of the University under this Agreement, shall be considered employees
or agents of the University only and not of the County, and any and all claims that
may or might arise under any workers compensation or other similar law or
contract on behalf of said employees while so engaged shall be the sole obligation
and responsibility of the University.
iv) University agrees that University, its employees, agents and its subcontractors, if
any, shall be required to comply with all federal, state and local antidiscrimination
laws, regulations and policies that relate to the performance of University's
services under this Agreement.
v) If activities related to the performance of this Agreement require specific licenses,
certifications, or related credentials University represents that it and/or its
employees, agents and subcontractors engaged in such activities possess such
licenses, certifications, or credentials and that such licenses certifications, or
credentials are current, active,and not in a state of suspension or revocation.
3. Basic Services
a. Basic Services. The Basic Services to be rendered pursuant to this Agreement are as
follows:
i) General Interim Health Director Services. The services provided by the
University's employee shall be as the Interim Health Director, exercising all
statutory rights, privileges, and duties of the postion, at the direction of the
Orange County Board of Health including,but not limited to the following:
(1) Responsibilities established under N.C. Gen. Stat. § 130A-41; and
(2) Duties provided in the Orange County Health Director Classification
Specifications, which is attached to this Agreement as Exhibit A, and is
hereby incorporated herein; and
(3) Other duties as assigned by the Orange County Board of Health
ii. Key Personnel. The services of the Interim Health Director shall be provided by
Dorothy Cilenti, an employee of the University, who is designated as Key
Personnel under this Agreement. There shall be no substitution of Key Personnel
without the express written consent of the Orange County Board of Health.
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iii. Relationship of the Parties. Orange County shall contract with the University for
the services of Key Personnel, identified above, for an interim appointment as the
Orange County Health Director while the Orange County Board of Health
conducts the recruitment and selection of a permanent Health Director.
University acknowledges that there have been no representations made to either
the University or Key Personnel that the Key Personnel will be appointed or
employed in a permanent position with the County; or that key personnel will
receive any fringe benefits typical of a permanent employment with the County.
During the term of this Agreement Key Personnel shall remain the employees of
the University.
4. Duration of Services
a. Term. The tern of this Agreement shall be from February 24, 2017 to August 23,
2017, and may be extended for up to an additional ninety (90) days upon written
notification executed by both parties.
b. Scheduling of Services. Key Personnel shall provide the following scheduling of
services:
i) Conduct services onsite at the Orange County Health Department two days a
week(The University's employee will observe the University's holiday schedule).
ii) Be available to respond to public health emergencies by phone or pager 24 hours
a day, seven days a week.
iii) Respond in person to public health emergencies, as determined jointly by the
Chair of the Board of Health and the Key Personnel.
iv) Attend monthly Orange County Board of Health meetings and Orange County
Board of Commissioner meetings as needed.
5. Compensation
a. Compensation for Basic Services. Compensation for Basic Services described in section
3 shall include all compensation due the University from the County for all services
under this Agreement, including mileage of Key Personnel. There are no additional
reimbursable expenses included in this Agreement. The County shall reimburse the
University on a monthly basis for forty percent of the salary, fringe benefits and health
insurance of Key Personnel, which amounts to five thousand seven hundred twenty
dollars and 25/100 per month ($5,720.25), reduced proportionately on a daily basis for
any portion thereof. In addition, the County will pay a lump sum for mileage in the
amount of two hundred and twenty-five dollars ($225) per month, reduced
proportionately on a daily basis for any portion thereof. The maximum amount payable
for Basic Services shall not exceed thirty-five thousand six hundred and seventy-two
dollars($35,672)payable in equally monthly installments.
b. Invoice. The University shall invoice OCHD on a monthly basis with the first invoice
being dated March 1, 2017 for the period February 24, 2017 through February 28,
2017.
c. Payment for Basic Services. Payment for Basic Services shall become due and payable
within thirty (30) days of University properly invoicing the County. Any adjustments
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to the invoice shall be taken into account in the next invoice or as soon thereafter as
reasonably practicable. Payment shall be subject to provisions of Section 5(e).
d. Disputes. In the event the amount stated on an invoice is disputed by the County, the
County may withhold payment of all or a portion of the amount stated on an invoice
until the parties resolve the dispute. Should University fail to perform its duties under
the terms of this Agreement, County may, without fault or penalty, withhold any
payment associated with the work to be performed until such time as said work is
completed.
e. Additional Services. County shall not be responsible for costs related to any services in
addition to the Basic Services performed by University unless County requests such
additional services in writing and such additional services are evidenced by a written
amendment to this Agreement.
6. Responsibilities of the County
a. Cooperation and Coordination. The County has designated the Interim Health Director,
to act as the County's representative and the Interim Health Director shall have the
authority to render decisions within guidelines established by the Board of Health and
shall be available during working hours as described in section 4 b as often as may be
reasonably required to render decisions and to furnish information.
b. FE, uiument and Supplies. OCHD agrees to furnish all supplies, equipment, office space
and a computer as needed by the Interim Health Director; to include the Interim Health
Director in all appropriate conferences, meetings, correspondence and publications
necessary to appropriately discharge the Interim Health Director's duties within
budgetary constraints.
7. Insurance
a. General Requirements. The University will be responsible for the negligence of its
employee and agents working under this Agreement to this extent of the North Carolina
Tort Claims Act. Further, the County shall provide adequate professional liability
insurance, if needed, for the University and its personnel who provide services
described in this Agreement. The insurance limits will be stated in a Certificate of
Insurance submitted at the time this Agreement is commenced. The professional
liability insurance shall cover personal injury and property damage claims arising out of
or related to the performance under this Agreement by the persons designated as
Interim Health Director under this Agreement in the amount of at least $1 million, per
occurrence, $2 million aggregate but no less than the amount of coverage that the
County customarily provides for its health director.
b. Evidence of Insurance. Evidence of such insurance shall be furnished to the University,
together with evidence that each policy provides the University with not less than thirty
(30) days prior written notice of any cancellation, non-renewal or reduction of
coverage.
8. Indemnity
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a. Indemni1y. The University will be responsible for the negligence of its employees and
agents to the extent of the North Carolina Tort Claims Act. Notwithstanding the
foregoing, the County shall indemnify the University for any claims arising out of the
provision of services by the University's employee without regard to whether the claim
is covered by the NC Tort Claims Act. It is the intent of this provision to require the
County to indemnify the University to the fullest extent permitted under North Carolina
law.
9. Amendments to the Agreement
a. Changes in Basic Services. Changes in the Basic Services and entitlement to additional
compensation or a change in duration of this Agreement shall be made by a written
Amendment to this Agreement executed by the County and the University. The
University shall proceed to perform the services required by the Amendment only after
receiving a fully executed Amendment from the County.
10. Termination
a. Termination for Convenience of the County. This Agreement may be terminated without
cause by the County and for its convenience upon fourteen (14) days written notice to
the University.
b. Termination by Either Party. This agreement or its renewals may be terminated at any
time without penalty by either party provided that the agreement is terminated upon
delivery of written notice of termination furnished to the other party at least fourteen
(14)days prior to termination.
c. Other Termination. The University may terminate this Agreement based upon the
County's material breach of this Agreement; provided, the County has not taken all
reasonable actions to remedy the breach. The University shall give the County fourteen
(14)days written notice of its intent to terminate this Agreement for cause.
d. Compensation After Termination.
i) In the event of termination, the University shall be paid that portion of the fees and
expenses that it has earned to the date of termination.
ii) Should this Agreement be terminated, the University shall deliver to the County
within seven (7) days, at no additional cost, all deliverables including any
electronic data or files relating to the Project.
e. Waiver. The payment of any sums by the County under this Agreement or the failure of
the County to require compliance by the University with any provisions of this
Agreement or the waiver by the County of any breach of this Agreement shall not
constitute a waiver of any claim for damages by the County for any breach of this
Agreement or a waiver of any other required compliance with this Agreement.
11. Additional Provisions
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a. Limitation and Assi ent. The County and the University each bind themselves, their
successors, assigns and legal representatives to the terms of this Agreement. Neither
the County nor the University shall assign or transfer its interest in this Agreement
without the written consent of the other.
b. Governing? Law. This Agreement and the duties, responsibilities, obligations and rights
of respective parties hereunder shall be governed by the laws of the State of North
Carolina. Where applicable, failure to maintain compliance with the requirements of
Article 2 of Chapter 64 of the General Statutes constitutes Consultant's breach of this
Agreement. By executing this Agreement University affirms University is in
compliance with Article 2 of Chapter 64 of the North Carolina General Statutes. By
executing this Agreement, University certifies that University has not been identified,
and has not utilized the services of any agent or subcontractor, on the Iran divestment
list created by the State Treasurer pursuant to G.S. 147-86.58.
c. Dispute Resolution. Any and all suits or actions to enforce, interpret or seek damages
with respect to any provision of, or the performance or non-performance of, this
Agreement shall be brought in the General Court of Justice of North Carolina sitting in
Orange County, North Carolina. It is agreed by the parties that no other court shall
have jurisdiction or venue with respect to such suits or actions. The Parties may agree
to nonbinding mediation of any dispute prior to the bringing of such suit or action.
d. Entire Agreement. This Agreement represents the entire and integrated agreement
between the County and the University and supersedes all prior negotiations,
representations or agreements, either written or oral. This Agreement may be amended
only by written instrument signed by both parties. Modifications may be evidenced by
facsimile signatures.
e. Nondiscrimination. The County hereby agrees with the University that, in their
educational and/or employment practices, County and the University will comply with
such state and federal non-discrimination laws as may be applicable to it in the
performance of this agreement.
f. Conduct of Service. The University shall abide by pertinent rules and regulations of
OCHD, Orange County, and the North Carolina Department of Health and Human
Services in the conduct of service.
g. Confidentiality. The University and the County shall comply with such confidentiality
laws as may be applicable in the performance of this agreement and acknowledge that
in receiving, storing, processing or otherwise dealing with any confidential information,
they will safeguard and not further disclose the information except as permitted by the
Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, as
amended, and the provisions of the Business Associate Agreement which is attached
hereto and incorporated herein by reference.
h. Severability. If any provision of this Agreement is held as a matter of law to be
unenforceable, the remainder of this Agreement shall be valid and binding upon the
Parties.
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i. Non-Appropriation. University acknowledges that County is a governmental entity, and
the validity of this Agreement is based upon the availability of public funding under the
authority of its statutory mandate.
In the event that public funds are unavailable and not appropriated for the performance
of County's obligations under this Agreement, then this Agreement shall automatically
expire without penalty to County immediately upon written notice to University of the
unavailability and non-appropriation of public funds. It is expressly agreed that County
shall not activate this non-appropriation provision for its convenience or to circumvent
the requirements of this Agreement, but only as an emergency fiscal measure during a
substantial fiscal crisis.
In the event of a change in the County's statutory authority, mandate and/or mandated
functions, by state and/or federal legislative or regulatory action, which adversely
affects County's authority to continue its obligations under this Agreement, then this
Agreement shall automatically terminate without penalty to County upon written notice
to University of such limitation or change in County's legal authority.
j. Notices. Any notice required by this Agreement shall be in writing and delivered by
certified or registered mail,return receipt requested to the following:
Orange County Health Department University
Attention: Chair,Board of Health c/o Lisa Perry
P.O.Box 8181 Dept.of MCH, UNC CH,CB 7445
Hillsborough,NC 27278 Chapel Hill,NC 27599
k. This Agreement together with any amendments or modifications may be executed
electronically. All electronic signatures affixed hereto evidence the intent of the Parties
to comply with Article 11A and Article 40 of North Carolina General Statute Chapter
66.
IN WITNESS WHEREOF, the Parties, by and through their authorized agents, have
hereunder set their hands and seal, all as of the day and year first above written.
ORANGE COUNTY: UNIVERSI
By: ' By:
Bonnie unmersley, County ger y e Chancellor
Orange County,North Caroli a f Administration
M till ew r1J ade-
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BUSINESS ASSOCIATE AGREEMENT
This Agreement is made effective the 24th of February, 2017, by and between Orange County
Government, Orange County Health Department, hereinafter referred to as"Covered Entity", and the UNC Gillings
School of Global Public Health, Department of Matemal and Child Health , hereinafter referred to as "Business
Associate," (individually, a"Party" and collectively, the"Parties").
WITNESSETH:
WHEREAS, Sections 261 through 264 of the federal Health Insurance Portability and Accountability Act of
1996, Public Law 104191, known as"the Administrative Simplification provisions,"direct the Department of Health
and Human Services to develop standards to protect the security, confidentiality and integrity of health information;
and
WHEREAS, pursuant to the Administrative Simplification provisions, the Secretary of Health and Human
Services has issued regulations modifying 45 CFR Parts 160 and 164(the"HIPAA Privacy Rule"); and
WHEREAS,the Parties wish to enter into or have entered into an arrangement whereby Business Associate
will provide certain services to Covered Entity, and, pursuant to such arrangement, Business Associate may be
considered a "business associate" of Covered Entity as defined in the HIPAA Privacy Rule (the agreement
evidencing such arrangement is entitled Service Agreement for Interim Health Director Services , dated February
24, , 2017, and is hereby referred to as the"Arrangement Agreement"); and
WHEREAS, Business Associate may have access to Protected Health Information (as defined below) in
fulfilling its responsibilities under such arrangement;
THEREFORE, in consideration of the Panties' continuing obligations under the Arrangement Agreement,
the Parties agree to the provisions of this Agreement in order to address the requirements of the HIPAA Privacy
Rule and to protect the interests of both Parties.
I. DEFINITIONS
Except as otherwise defined herein,terms used in this Agreement shall have the same meaning as those terms set
forth in the HIPAA Privacy Rule.
II. CONFIDENTIALITY REQUIREMENTS
(a) Business Associate shall-
(i) use or disclose any protected health information solely as permitted or required by this
Agreement,the Arrangement Agreement(if consistent with this Agreement and the HIPAA
Privacy Rule), or as required by law.'
(ii) ensure that its agents, including a subcontractor, to whom it provides protected health
information received from or created by Business Associate on behalf of Covered Entity,
agrees to the same restrictions and conditions that apply to Business Associate with
respect to such information. In addition, Business Associate agrees to take reasonable
steps to ensure that its employees'actions or omissions do not cause Business Associate
to breach the terms of this Agreement;
(iii) implement appropriate safeguards to prevent use or disclosure of protected health
Information other than as permitted or required by this Agreement;
(iv) permit the Secretary of Health and Human Services to audit Business Associate's records
and practices related to use and disclosure of protected health information to ensure
Covered Entity's compliance with the terms of the HIPAA Privacy Rule;
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(v) report to Covered Entity any use or disclosure of protected health information which is not
in compliance with the terms of this Agreement of which it becomes aware; and
(vi) mitigate, to the extent practicable, any harmful effect that is known to Business Associate
of a use or disclosure of protected health information by Business Associate in violation of
the requirements of this Agreement.
(b) Notwithstanding the prohibitions set forth in this Agreement or the Arrangement
Agreement, Business Associate may use and disclose protected health information
as follows:
(i) if necessary, for the proper management and administration of Business Associate or to
carry out the legal responsibilities of Business Associate, provided that as to any such
disclosure, the following requirements are met:
(A) the disclosure is required by law; or
(B) Business Associate obtains reasonable assurances from the person to whom the
information is disclosed that it will be held confidentially and used or further
disclosed only as required by law or for the purpose for which it was disclosed to
the person, and the person notifies Business Associate of any instances of which
it is aware in which the confidentiality of the information has been breached;
(ii) for data aggregation services, if such services are to be provided by Business Associate
for the health care operations of Covered Entity pursuant to any agreements between the
Parties evidencing their business relationship.
III. AVAILABILITY OF PROTECTED HEALTH INFORMATION
Business Associate shall:
(a) at the request of Covered Entity, provide access to protected health information in a designated
record set to Covered Entity or,as directed by Covered Entity,to an individual,in a time and manner
sufficient to permit Covered Entity to comply with the requirements of 45 CFR 164.524.
(b) at the request of Covered Entity or an individual, make any amendment(s) to protected health
information in a designated record set that are directed by or agreed to by Covered Entity, in a time
and manner sufficient to permit Covered Entity to comply with the requirements of 45 CFR 164.526.
(c) document disclosures of protected health information and information related to such disclosures
in a manner sufficient to permit Covered Entity to respond to a request by an individual for an
accounting of disclosures of protected health information in accordance with 45 CFR 164.528 and
provide such documentation to Covered Entity or an individual as directed by Covered Entity.
IV. TERMINATION
(a) Term: This Agreement terminates when the Arrangement Agreement terminates or as provided in
Paragraph IV.b. below(termination for cause).
(b) Termination for cause: Upon Covered Entity's knowledge of a material breach by Business
Associate, Covered Entity shall either.
(i) provide an opportunity for Business Associate to cure the breach or end the violation or, if
Business Associate does not cure the breach or end the violation within the time specified
by Covered Entity, terminate this Agreement and the Arrangement Agreement; or
(ii) immediately terminate this Agreement and the Arrangement Agreement if Business
Associate has breached a material term of this Agreement and cure is not possible.
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Return or destruction of protected health information: At termination of this Agreement, the
Arrangement Agreement(or any similar documentation of the business relationship of the Parties),
or upon request of Covered Entity, whichever occurs first, Business Associate shall:
(i) if feasible, return or destroy all protected health information received from or created or
received by Business Associate on behalf of Covered Entity that Business Associate still
maintains in any form. Business Associate shall only destroy protected health information
with the written approval of Covered Entity. After return or destruction, Business Associate
shall retain no copies of such information.
(ii) if return or destruction is not feasible, Business Associate will provide Covered Entity with
documentation explaining the reason that it is not feasible. If the protected health
Information is not returned or destroyed, Business Associate will extend the protections of
this Agreement to the information and limit further uses and disclosures to those purposes
that make the return or destruction of the information not feasible.
(d) Survival: The obligations of Business Associate under this Agreement shall survive the expiration,
termination, or cancellation of this Agreement, the Arrangement Agreement and/or the business
relationship of the parties, and shall continue to bind Business Associate, its agents, employees,
contractors, successors, and assigns as set forth herein.
V. MISCELLANEOUS
(a) All protected health information that is created or received by Covered Entity and disclosed or made
available in any form, including paper record, oral communication, audio recording, and electronic
display by Covered Entity or its operating units to Business Associate or is created or received by
Business Associate on Covered Entity's behalf shall be subject to this Agreement.
(b) A reference in this Agreement to a section in the HIPAA Privacy Rule means the section as in effect
or as amended.
(c) In the event of an inconsistency between the provisions of this Agreement (including definitions)
and mandatory provisions of the HIPAA Privacy Rule, as amended, the HIPAA Privacy Rule shall
control. Where provisions of this Agreement are different than those mandated in the HIPAA
Privacy Rule, but are nonetheless permitted by the HIPAA Privacy Rule, the provisions of this
Agreement shall control.
(d) Except as expressly stated herein or the HIPAA Privacy Rule, the parties to this Agreement do not
intend to create any rights in any third parties.
(e) This Agreement may be amended or modified only in a writing signed by the Parties. No Party
may assign its respective rights and obligations under this Agreement without the prior written
consent of the other Party. None of the provisions of this Agreement are intended to create, nor will
they be deemed to create any relationship between the Parties other than that of independent
parties contracting with each other solely for the purposes of effecting the provisions of this
Agreement and any other agreements between the Parties evidencing their business relationship.
(f) This Agreement will be governed by the laws of the State of North Carolina.
(g) No change, waiver or discharge of any liability or obligation hereunder on any one or more
occasions shall be deemed a waiver of performance of any continuing or other obligation, or shall
prohibit enforcement of any obligation, on any other occasion.
(h) The parties agree that, in the event that any documentation of the arrangement pursuant
to which Business Associate provides services to Covered Entity contains provisions relating to the
use or disclosure of protected health information that are more restrictive than the provisions of this
Agreement, the provisions of the more restrictive documentation will control.
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In the event that any provision of this Agreement is held by a court of competent jurisdiction to be
invalid or unenforceable,the remainder of the provisions of this Agreement will remain in full force
and effect.
(j) The headings in this Agreement are for convenience of reference only and shall not define or limit
any of the terms or provisions hereof.
IN WITNESS WHEREOF,the Parties have executed this Agreement as of the day and year written above.
COVERED ENTITY: BUSINESS ASSOCIATE:
By: By:
Title: Titl yw for wW A&Wrkhft
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