Memorandum

City of Lawrence

Department of Utilities

TO:	David Corliss, City Manager
FROM:	Jeanette Klamm, Utilities Programs Manager
CC:	Dave Wagner, Director of Utilities
Date:	1/22/09
RE:	1/27/09 City Commission Agenda Utilities Management System Audit

Please include the following item on the 1/27/09 City Commission agenda:

Utilities Management System Audit

Background:

The Utilities Department  holds certifications in ISO 14001 (environmental management system), OHSAS 18001 (occupational health and safety management system), and National Biosolids Partnership (NBP) EMS for Biosolids (environmental/biosolids specific). These certifications are represented, documented, and audited as one management system, which meets the requirements of all three standards. The Department anticipates expanding the management system in 2009 to include ISO 9001 (quality management system). All of these certifications have requirements for annual auditing, although there are different requirements for who is qualified to audit the specific standards.

Not completing this independent audit will result in loss of these certifications, as well as the credibility associated with them. These certifications are recognized and understood world wide in other industries and strongly encouraged by regulators. Additionally, we have made a commitment to EPA’s Performance Track Program, which requires a management system, as well as have an adopted policy, which was approved by the City Commission in 2005 and updated since.

The system not only helps us demonstrate efficiency to stakeholders through the credentials, but also through data and information. Just a few examples of system results include identification and correction of poor safety practices and attitudes, on-going departmental compliance with all KDOL safety regulations for some time, identification of operational inconsistencies between work groups and plants, and ability to respond to regulatory requests quickly and accurately. Overall benefits include continual improvements in efficiency, safety, and quality of service.

Through the Water Environment Federation (WEF) NBP contracts with and assigns a qualified auditor to audit the Department’s biosolids program. Since 2005, NBP has assigned KEMA – Registered Quality as the auditor for the Department. KEMA – Registered Quality is also qualified to audit the ISO and OHSAS standards and has provided auditing services to the Department in these areas since 2006. This has allowed the Department to use one auditor for all standards consistent with the design of our management system. The benefit with this contract arrangement has been a considerable savings in the amount of money and time expended by the Department. The alternative would be to hire two auditors to conduct parallel audits with overlapping services.

There are two types of annual audits for management systems, interim and re-verification. Interim audits review specific parts of the management system where a re-verification audit reviews the entire management system. The 2009 audit is a re-verification audit. In addition, the ISO 9001 standard is being added to audit. The cost of the audit for ISO 14001/ OHSAS18001/ISO9001 this year will be $25,000. The cost of the audit for the NBP EMS for Biosolids this year will be $6,000.

Project Funding

Funding for this audit is included in the 2009 operations and maintenance line item budget for administration – 7100.

Action Request

Staff requests approval for the City Manager to execute two purchase orders for this audit. The first purchase order is for the Biosolids portion of the audit, and must be sole source purchased through the Water Environment Federation, who contracts with KEMA – Registered Quality to perform the audit. The second purchase order goes directly to KEMA – Registered Quality for the other portions of the audit, for the remainder of the audit cost.

1. Water Environment Federation for the NBP EMS for Biosolids in an amount of $6,000.

2. KEMA – Registered Quality for the ISO 14001/OHSAS 18001/ISO 9001 audits in an amount of $25,000