Strategic Partnership Agreement

Between

Jacksonville Electric Authority (JEA)
The University of South Florida Consultation Program

and the

United States Department of Labor,
Occupational Safety and Health Admisitration

1. PARTNERS
   
   The partners to this Agreement are:
   • Jacksonville Electric Authority
   • University of South Florida Consultation Program
   • U.S. Department of Labor, Occupational Safety and Health Administration



2. PURPOSE/SCOPE
   
   In the spring of 2000, Jacksonville Electric Authority, University of South Florida Consultation Program and the Occupational Safety and Health Administration (OSHA) recognized the need for a proactive approach to aggressively improve workplace safety and health for employees in the construction industry and entered into their first Strategic partnership agreement on April 19, 2000. Due to the need to change and improve the OSHA Strategic Partnership Program, in the fall of 2004 OSHA issued new instructions for development, approval and operation of individual strategic partnerships.
   
   To comply with OSHA’s new instructions in the summer of 2006 the partnership agreement was rewritten and renewed by all parties. This Partnership expands the Occupational Safety and Health Administration’s (OSHA) reach into the construction industry, by enabling OSHA, the University of South Florida (USF) and the JEA (formerly doing business as the Jacksonville Electric Authority) to increase employee safety and health training. The primary goal of this agreement is the effective reduction of serious injuries and fatalities in the construction industry.
   
   The number of fatalities in Florida investigated by OSHA, had been increasing significantly (increasing 16% since 2000). Fatality investigations involving construction increased 12%. In 2002 the State of Florida experienced 134 fatalities, 67 (50%) of which were in construction; and data from OSHA’s computer system indicates that in FY 98, 65% of the 133 fatalities in Florida were in construction. During fiscal years 2001-2002, as the total numbers of fatalities continued to increase, the percentage of fatalities related to construction also increased, from 47% to 50%. Enforcement data from the accident investigation summary for the construction industry indicates that in Florida, the four leading causes of death were fall, struck-by, caught-in, and electrical hazards. In 1998 in Florida, 83% of the construction fatalities were related to these four hazards. Since then, OSHA has experienced a significant reduction in fatalities. During Calendar year 2008, OSHA investigated 96 fatalities with 39 of the fatalities thus, 41% occurred in the construction industry; certainly, a portion of this reduction in the number of fatalities in the construction industry in Florida can be attributed to the success of the JEA partnership.
   
   The JEA operates an electric system and water and sewer system in the Jacksonville Area. Currently JEA serves more than 418,000 electric customers in Jacksonville and parts of three adjacent counties. JEA's water system serves more than 305,000 water customers and 232,000 sewer customers or more than 80 percent of all water and sewer utility customers in JEA’s service area.
   
   JEA’s electric business consists of three financially separate entities: the JEA Electric System, the St. Johns River Power Park bulk power system, and the Robert W. Scherer bulk power system. The total net capability of JEA’s generation system is 3,621 MW in the winter and 3,371 MW in the summer. The Electric System consists of generating facilities located on three plant sites within the City. Collectively, these plants consist of two dual-fired (petroleum coke/coal) Circulating Fluidized Bed steam turbine-generator units (Northside steam Units 1 and 2); one dual-fired (oil/gas) steam turbine-generator unit (Northside steam Unit 3); four dual-fired (gas/diesel) combustion turbine-generator units (Kennedy CT 7, Brandy Branch CTs 1, 2, and 3); five diesel-fired combustion turbine-generator units (Kennedy CTs 3 and Northside CTs 3, 4, 5, and 6); and one combined cycle heat recovery steam generator unit (Brandy Branch steam Unit 4).
   
   The St. Johns River Power Park (SJRPP) is jointly owned by JEA (80 percent) and FP&L (20 percent). SJRPP consists of two nominal 638 MW bituminous coal fired units located north of the Northside Generating Station in Jacksonville, FL. The Greenland Energy Center (GEC) is located in Duval County, south of J. Turner Butler Boulevard, east of Interstate 95, and north of St. Johns County. Currently, JEA has no generation stations east of the St. Johns River where JEA’s territory has experienced the most growth. This site’s ultimate build-out capability is projected to be approximately 1,300 MW to meet future generation needs. This location provides increased system reliability, increased power quality, increased grid efficiency, and economic integration into the existing transmission system. JEA is proceeding with the installation of two combustion turbine units at this new greenfield site. These units are natural gas-fired simple-cycle GE frame 7FA combustion turbine units, with diesel backup fuel. The scheduled commercial operation date for these units is June 2011. JEA plans to convert the two simple cycle GE 7FA combustion turbines to a 2x1 combined cycle configuration. The 2x1 GEC combined cycle will have a nominal net output rating of 522 MW at average ambient temperature conditions.
   
   JEA's Water System consists of 138 artesian wells tapping the Floridian Aquifer, which is one of the world's most productive aquifers. Water is distributed through 35 water treatment plants and 3,944 miles of water lines. There are 3,366 miles of sewer infrastructure and seven regional sewer treatment plants comprise the JEA sewer system. JEA is committed to improving water quality of the St. Johns River. One outstanding example of how we're working to meet JEA’s goal to reduce nitrogen release into the river is through the use of reclaimed water for irrigation.
   



3. GOALS AND MEASUREMENTS

   The primary and secondary goals of this agreement include the following:

   GOALS	STRATEGIES	MEASURES
   Reduce the number of serious injuries and fatalities in the construction industry.	a) Reviewing the OSHA 300 data of the Partnership participants. b)  Calculating the employer’s TCIR and Days away from work, restricted, or job transferred (DART) 1rates. c) Comparing this data with the baseline rates for the agreement.	a) This goal will be measured by the number of companies participating in the partnership, which reduce their TCIR and DART rates below the baseline for the Partnership. b) The baseline will be established during the initial year of the agreement.
   Increase the number of employers with effective safety and health management systems	Methods to evaluate the partner’s performance in this area will include the implementation of comprehensive safety and health management systems, employers that establish effective safety and health management systems.	Measure the number of participants that develop and implement effective safety and health management systems as a result of participating in the Partnership, compared to the baseline for the agreement.  The baseline will be established during the initial year of the agreement.
   Increase the number of workers, supervisors and foremen who are provided 10-hour training.	a) Evaluation of the employers that establish effective safety and health training programs. b) Evaluation of the employers that provide employees with OSHA 10-hour/ OSHA 30-hour training.	a) Measure the number of employers with effective safety and health training programs. b) Measure the number of managers, supervisors and employees provide with OSHA 10-hour/ OSHA 30-hour training, compared to the baseline for the agreement.  The baseline will be established during the initial year of the agreement.
   Recognize those contractors with effective safety and health programs, employee participation and site-specific safety and health plans that assure compliance with OSHA regulations.	Develop a recognition system to recognize participants with effective safety and health programs.	Number and percentage of participants recognized with effective safety and health programs

   
   ¹Days Away from work, Restricted, or job Transferred (DART) rate: This includes cases involving days away from work, restricted work activity, and transfers to another job. It is calculated based on (N / EH) x (200,000) where N is the number of cases involving days away, and/or restricted work activity, and/or job transfer; EH is the total number of hours worked by all employees during the calendar year; and 200,000 is the base number of hours worked for 100 full-time equivalent employees. For example: Employees of an establishment including management, temporary, and leased workers worked 645,089 hours at this worksite. There were 22 injury and illness cases involving days away and/or restricted work activity and/or job transfer from the OSHA 300 Log (total of column H plus column I). The DART rate would be (22 / 645,089) x (200,000) = 6.8
   
   This Partnership promotes contractor cooperation with OSHA, JEA and the University of South Florida Consultation Division Program. In accordance with the 21 (d) grant guidelines, the USF Consultation Division Program will verify that the Partnership are being met and agreement goals are being attained by reviewing evidence of regular and effective internal safety audits, accident investigations and injury/illness data.
   
   The objective of the parties is to reduce injuries/illnesses and fatalities by leveraging voluntary compliance. By the actions, JEA and the University of South Florida Consultation Division Program, working with qualified local contractors and labor organizations, will allow OSHA to focus its compliance resources on work sites which are more likely to have serious hazards.
   


4. PERFORMANCE MEASURES
   
   All contractors working on this project will be required to develop and implement a comprehensive written safety and health program. The results will be measured by reductions in the employer’s Total Case Incident Rate (TCIR) and Days Away, Restricted-work Total (Days Away Restricted Time - DART). TCIR data is tracked within JEA by Recordable Incident Rate data. Baseline data collection will include the number of contractors that did not have an effective comprehensive written safety and health program implemented prior to their involvement with this Partnership. Safety assessment data will be reviewed to ensure hazards are abated on a day-to-day basis. This process will serve to eliminate or abate hazards found during the project on a day-to-day basis and ensure that all incidents are reported, investigated, and that written corrective action plans developed. Additional data collected during the review will include the number of hazards corrected, the number of nonconformance(s), as well as the number of incidents reported.
   
   
   1. Experience Modification Rate (EMR) of 1.0 or less.
   2. Days Away Restricted Transferred Rate (DART) of 5.0.
   3. Days Away From Work Injury and Illness rate DAFWII of 1.0 or less, or a provisionary status of understanding that the contractors using guidelines/outlines will achieve the requirements noted in B.1 through B.3 in one year.
   4. All contractors on a JEA site must have developed and implemented a written safety and health program, which includes responsibility and accountability of all line supervisors for safety and employee participation.
   
   


5. PROGRAM EVALUATION

   This Partnership will include an annual evaluation to determine whether modifications are needed and a review of its status. The evaluation will be accomplished by OSHA based on data provided by the JEA and the University of South Florida. The evaluation will follow OSHA Directive Number CSP 03-02-002, Strategic Partnerships for Worker Safety and Health and effectively evaluate the contractor’s success toward achievement of the established goals. This evaluation will reflect the sites performance during the 12-month period from January to December.
   
   In addition JEA will submit the following data:

   1. Number of contractors in this Partnership.
   2. Number of employees protected by this Partnership.
   3. Number of employees trained under this Partnership.
   1. Employees
   2. Supervisors
   4. Number of evaluation audits by JEA
   5. Changes in the Experience Modification Rate (EMR). Such changes may take three years to accurately reflect this measurement.
   
   


6. BENEFITS
   
   The following are benefits for approved contractors and their subcontractors who work on JEA projects:
   
   1. Programmed inspections by OSHA of contractors/subcontractors will be conducted as Focused Inspections, rather then Comprehensive Inspections. It should be understood, if serious hazards are found, inspection may be expanded to Comprehensive level.
   2. No penalties for non-serious violations except for recordkeeping violations and reporting fatalities.
   3. A Quick-Fix penalty reduction of 15% will be applied to an individual violation’s base penalty after the base penalty has been calculated if the violation is corrected on the spot.
   4. Maximum penalty reduction for good faith, except for willful, repeat, and failure-to-abate violations and fatality investigations.
   5. Reductions on uncontested serious violations of up to 25% during informal settlement conferences.
   6. Technical assistance and training by OSHA and the University of South Florida Consultation Program.
   7. OSHA will inform complainants of the JEA Partnership with OSHA and explain the option of handling complaints by phone and fax.
   8. If a focused inspection has been conducted and no violations are found, a programmed inspection will not be conducted for 12 months or until a new phase of the project is started (whichever occurs first).
   9. Assistance and guidance from OSHA for the citations issued to contractors and subcontractors on JEA worksites during the length of this agreement.
   10. OSHA will provide JEA with copies of all citations issued to contractors and subcontractors on JEA worksites during the length of this agreement.
   
   


7. OSHA VERIFICATION
   
   
   1. Offsite Verification: An OSHA representative knowledgeable with the Partnership will perform an offsite verification of JEA’s data, and reports annually. At a minimum the verification will include:
   1. Review of Contractor OSHA 300 data
   2. Review of Contractor Experience Modification data
   3. Review of Contractor assessment data
   4. Safety and Health Management Program (to include self inspection program, training plans)
   2. Onsite Non-enforcement Verification: Non-enforcement interactions will be conducted by the USF Consultation Program.
   1. The scope of the non-enforcement verification will be comprehensive for the site selected.
   2. The USF Consultation Program will conduct a minimum of 25 non-enforcement verification visits annually.
   3. JEA is a municipal utility and is not subject to OSHA inspections. However, OSHA will conduct verification inspections of contractors/subcontractors working at JEA sites in accordance with established policies and procedures. Programmed inspections of subcontractors will be conducted as focused inspections, rather then comprehensive inspections. If serious hazards are found, OSHA may expand the inspection to comprehensive. However, if a focused inspection has been conducted and no violations are found a programmed inspection will not be conducted for 12 months or until a new phase of the project is started (whichever occurs first).
   
   


8. OSP MANAGEMENT AND OPERATIONS
   
   JEA will perform periodic comprehensive safety and health assessments of each worksite. Assessments will involve the employee safety representative, if present, and general employees. Safety and health assessments will address at a minimum the following areas: fall hazards, caught in/between hazards, electrical hazards, and trenching and excavation hazards. JEA will include other areas of high hazards when appropriate. Defects identified during the assessments will be corrected. JEA will insure the contractor documents and investigates all incidents.
   
   JEA will obtain the following data to establish a baseline to calculate future results of this partnership agreement
   
   
   1. The Workers’ Compensation data and current Experience Modification Rate (EMR).
   2. The Days Away Restricted Transfer Rate (DART)
   3. The Total Recordable Case Rate (TRC) (JEA Recordable Incident Rate) for the year
   4. Number of job sites, number of contractors and subcontractors and employees covered throughout the year by this partnership agreement.
   5. All incident analysis and near misses during the previous year, involving contractors and subcontractors.
   
   
   Nothing in the Agreement will exempt the general contractors in meeting their obligation to control the site and to promptly remove employees at the site from safety and health hazards. The general contractor may be subject to citation in accordance with OSHA’s multi-employer citation policy outlined in OSHA’s compliance directive CPL 02-00-124 (CPL 2-0.124). OSHA will code inspections of Partnership employers as JEAPART in block 25C of the OSHA 1 of any inspections of JEA jobsites.
   
   JEA will require that all contractors meet the requirements of this Partnership.
   
   Each contractor will be required to designate a responsible safety representative for each JEA site. The employee will have the authority, responsibility and training to immediately correct any safety deficiencies.
   
   All employees on JEA work site shall have received the OSHA 10-hour Construction Course or equivalent training (National Center For Construction, Education and Research). Employees will be trained in hazard recognition, OSHA standards, company safety policies and their rights under the OSH Act of 1970.
   
   On all JEA job sites, supervisors and foremen shall have received the OSHA 10-hour Construction Course or equivalent training, CPR/First Aid training, and the JEA Safety Leadership Development Class. Contractors on a JEA site will establish and enforce a fall protection program for falls from elevation in excess of six feet to meet OSHA regulations and those established by the JEA Contractor Safety Requirements.
   


9. EMPLOYEE AND EMPLOYER RIGHTS AND RESPONSIBILITIES
   
   This Partnership does not preclude employees and/or employers from exercising any right provided under the OSH Act, nor does it abrogate any responsibility to comply with rules and regulations adopted pursuant to the Act.
   
   Each employee is responsible for learning and abiding by the rules and regulations that are applicable to their work and for reporting observed, or anticipated hazards to their immediate supervisor. If the hazard is not corrected, the affected employee will refuse to perform this work and will report the conditions to the Contractors Designated Safety Representative.
   


10. TERM OF OSHA STRATEGIC PARTNERSHIP (OSP)
    
    OSHA and JEA will reassess this Partnership if a contractor:
    
    
    1. Receives willful or failure-to-abate violations.
    2. Receives numerous violations.
    3. Receives high gravity, serious violations.
    4. Fails to follow OSHA reporting requirements such as reporting an accident or a catastrophe within eight hours.
    5. Has an employee representative who requests a reassessment.
    
    
    Failure to follow these requirements may result in termination of the Partnership. This Partnership will last for three years from the date of signing.
    
    If OSHA, JEA or USF wishes to withdraw their participation prior to the established expiration date, the Partnership will be considered null and void upon receipt of a written notice of the intent to withdraw.
    
    If OSHA chooses to withdraw its participation in the Partnership, the entire Partnership is terminated. A signatory may also propose modification or amendment of the Partnership.
    

JEA Partnership Signature Page