HomeMy WebLinkAboutMINUTES - 08111998 - D2 TO: Board of Supervisors
FROM: Phil Batchelor, County Administrator
DATE* August 11,, 1999
SUBJECT: Report on Workshops Conducted in Central County, 'Vest County, and East County to
Receive Additional Public Input on Potential Alternatives to the'Interim Outreach Program
for County Contracts
SPECMC REQUEST(S)OR RECOMMENDATION(S)& BACKGROUND AND JU'SIMCATION
A. RECEIVE the attached report on workshops conducted in Central County(Martinez) on
May 15, rest County (San Pablo) on'May,18, and East County (Antioch) on May 21 to
obtain additional public input on potential alternatives to the Interim Outreach Program for
County contracts, particularly for construction projects:
B. ACKNOWLEDGE the participation of Berard members and County staff at all three
workshops.
C. ACKNOWLEDGE comments and suggestions from the attendees at the workshops, as
summarized in the attached report.
D. CONSIDER adoption of a Final Outreach Program patterned after the .Do an program
enhanced by the following elements.
1. Require that prime contractors(bidders)on construction contracts conduct outreach
to 1�1BE/ B0SBE/LBE subcontractors, truckers,suppliers, and manufacturers and
submit documentation of their outreach efforts. The documentation would include
without limitation the following documents:
(a) "Letter of intente' forms from subcontractors, truckers, suppliers, and
manufacturers to be subnutted two days after bid opening, and
(b) "'Verification of performance"forms from subcontractors, truckers, suppliers,
and manufacturers to be submitted prior to the final payment on the project.
2. Require outreach efforts by the prime contractor and approval from the County
Administrator's Office before the prime contractor on a construction contract can
replace a listed subcontractor, trucker, supplier, or manufacturer.
CONTINUED ON ATTACHMENT: X YES SIGNATURE'
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER'
i
SIGNATURE(S) f
ACTION OF BOARD ON Ai APPROVED AS RECOMMENDED _X OTHER Y
SEE THE ATTACHED ADDENDUM FOR BOARD ACTION':
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
UNANIMOU ABSENT ? AND ENTERED ON THE MINUTES OF THE BOARD
AYES: NOES, OF SUPERVISORS ON THE DATE SHOWN.
ABSENT: ABSTAIN:
_ ATTESTED: PHIL BATCHELOR, CLERK OF THE BOARD OF
Contact; Etta uevor, 25)'335-1045 SUPERVISORS AND'COUNTY ADMINISTRATOR
Orig. -Dept.s C _ty Admin,at.. or
cc: t+u ty Counsel
General Services
Public works ��ugtlSt Il. 1998
DEPCJ
Report on Workshops Conducted in Central County, West County, and East
Countryto Receive Additional Public Input on Potential Alternatives to the
Interim Outreach Program for County:.Countracts
August 11, 1998
3. Require that prime contractors, subcontractors, and truckers on construction contracts
make available, upon request, for review by the County Administrator's Office,
certified payroll records and copies of purchase orders, invoices, and/or contracts
from suppliers and manufacturers.'
4. Require that prime contractors on construction contracts make prompt payment to
their subcontractors, truckers, suppliers, and manufacturers in accordance with their
contracts and legal relationships.
5. Include the attached outreach program for purchasing and professional/personal
services contracts.
E. DIRECT the County Administrator to include in the County's legislative program for 1998-
1999 proposed legislation authorizing the establishment of a Small Business Enterprise
(SBE) Contract Compliance Program and a Local°"Business Enterprise (LBE) Contract
Compliance Program.
F. DIRECT the County Administrator's Office, General Services Department, and Public
Works Department to review upcoming projects on an ongoing basis to identify their funding,,
sources and to determine if federal funding could be available for any part of the project.
If so, DIRECT the department to request federal fimd ng for the project, unless such
application would result in unreasonable delay or expense.
G. DIRECT the County' Administrator to explore potential funding for updating the
"availability statistics" on MBEs, WBEs, and DBEs at five-year intervals.
H. DIRECT the County Administrator and County Counsel's °Office to identify bonding
thresholds for County construction contracts and, if appropriate, to eliminate bonding
requirements for contracts below these thresholds.
FINANCIAL IMPACT
The holding of the workshops and giving of notice had a minimal financial impact.
BACKGRO /REASONS FOR RECOMMENDATIONS
On April 14, 1998, the Board of Supervisors directed that workshops be held in East County,
Central County, and West County to receive additional input on potential alternatives to the Interim
Outreach Program for County contracts, particularly for construction projects. As directed by the
Board, three workshops were arranged by the County Administrator's Office: Central County
(Martinez) on May 15, 1998; West County (San Pablo) on May 1,8, 1998; and East County
(Antioch)on May 21, 1998.
Comments were requested specifically on the four programs that have been suggested as potential
alternatives to the County's Interim Outreach urogram for construction contracts—the Domar
Outreach:Program(City of Los Angeles), the Fort of Oakland Program, the Advisory;Council's
Report on Workshops Conducted in Central County, West County, and East
County to Receive Additional Public Input on Potential Alternatives to the
Interim OutreachProgram for County Countracts
August 11, 1998
Proposal, and Clifford Tong's Proposal. Various comments and suggestions were made at the
workshops. These'are summarized in the attached report.
Now that this additional input has been obtained, the issue of the adoption of a Final Outreach
Program is returned to the Board for fin ther consideration.
CONSEQUENCES OF NEGATIVE ACTION
The Interim Outreach Program would continue in effect for County construction contracts.
ADDENDUM TO ITEM D.Z'
August 11, 1998 Agenda
On this day the Board of Supervisors considered the report entitled Workshops Conducted in
Central County, West County, and East CountyTo Receive Additional Public Input on
Potential Alternatives to the Interim Outreach Program for County Contracts.
Vic Westman, County Counsel presented the staff report. Mr. Westman noted that attached to
the report-are comments from the workshop attendees, and these comments were incorporated
into the report. Emma Kuevor, Affirmative Action Officer, and 'Scott Tandy, Chief Assistant
County Administrator were also available to advise the Board on the report.
The Board discussed the issues.The public hearing was opened, and Jonothan 'Dumas, member
of the Equal Employment Opportunity Council,' 41 Carter Court, El Sobrante, commented on
the issues. No one else desiring to speak, the hearing was closed.
The Board continued to discuss the matter. Supervisor DeSaulnier moved the staffs
recommendations and suggested that the Board request the County Administrator, County
Counsel, and Economic Opportunity Council come back to the Board with a report on the
success or failure of the outreach program.
Supervisor Uilkema requested that Supervisor DeSaulnier accept the following amendments to
the motion: on recommendation G change five-year intervals to three-year intervals request
that staff participate in the available regional workshop programs,'and include that as part of
the action plan; and encourage minorities and women contractors to become certified.
Supervisor DeSaulnier agreed to the amendments, and Supervisor Uilkema seconded the
motion.
Supervisor Rogers offered a"substitute motion, it failed for the lack of a second.
Supervisor Rogers then called for the vote, and it was as follows:
AYES: Supervisors Uilkema, Gerber, DeSaulnier, Canciamilla and Rogers
NOES: None
ABSENT: None
ABSTAIN: None
IT IS BY THE BOARD ORDERED that staff recommendations A, B C, D, E, F and
Hare APPROVED; Recommendation G is APPROVED to read "...DBEs at three-year
intervals" ; The County Administrator, County Counsel, and the Economic Opportunity
Council are DIRECTED to 'review and report to the Board on the success of the outreach
program; County staff is DIRECTED to participate in regional workshop programs; and
women and minorities are ENCOURAGED to become certified contractors:
Report on Workshops to Receive Additional Input
Regarding Outreach Program for County Contracts
In its order dated April 14, 1998, the Board directed that workshops be held in East
County, Central 'County, and West County to receive additional input on potential
alternatives to the Interim Outreach Program for County contracts, particularly for
construction projects. The following workshops were conducted:
Centml County
Friday, May 15, 1998 2:00-4:00 p.m. Board Chambers,
Martinez
West Counly
Monday, May 18, 1998 4:00-6:30 p.m. San Pablo Senior Center,
San Pablo
East County
Thursday, May 21, 1998 6:30-8:30 p.m. Antioch Library, Antioch
Attendance sheets for the three workshops are attached to this report.
Comments were requested specifically on the four programs that have been suggested'
as potential alternatives to the Interim Outreach Program for construction
contracts-the Domar Outreach Program (City of Los Angeles), the Port of Oakland
Program, the Advisory Council's Proposal, and Clifford Tong's Proposal. Materials
describing and comparing these programs were mailed or handed out to the attendees
at each workshop (see attached chart).
Various comments and suggestions were made by the attendees at the workshops.
These are summarized as follows:
I. The County's Advisory Council on Equal Employment Opportunity favors the
outreach programs proposed by them or Clifford Tong or the program used.by
Report on Workshops to Receive Additional Input Regarding Outreach Program
for County Contracts
August 4, 1998'
the Port of Oakland. They oppose the Interim Outreach Program and the
Domar program (City of Los Angeles).
2. Prime contractors (bidders) on construction contracts should be required to do
outreach.
3. The County should enforce and monitor bid requirements.
4. The County should reevaluate the availability of MBEs, WBEs, and DBEs
every 3 to 5 years.
5. The County should consider conducting another disparity (Croson) study.
6. The County should provide bidders with a list of interested, qualified MBEs
and WBEs. Response rates are low, because NMEMBE directories list
information that is not current or firms that are not interested.
7. Bonding requirements eliminate many small businesses because they cannot
qualify for bonding, especially on jobs over $100,000.
8. Prime contractors (bidders) on construction contracts should be required to
conduct outreach to truckers as well as to subcontractors.
9. Liquidated damages (e.g., $2000/day) inhibit small truckers from bidding on
construction projects.
10. Few contractors are attending the workshops,because they don't receive much
County business and because of Proposition 209.
11 Prime contractors (bidders) on construction contracts should be accountable.
They should be required to submit documentation showing who they
outreached to and identifying the MBEs, WBEs, Local Business Enterprises
(LBEs), and Small Business Enterprises (SBEs) they are using.
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Report on Workshops to Receive Additional Input Regarding Outreach Program
for County Contracts
August 4, 1998
12. It does no good for the County to adopt an outreach program that is a sham or
a paper program without any enforcement power.
13. Prime contractors (bidders) on construction contracts should be given a bid
preference for using local (15%b) and small (5%) businesses.
14. Bonding for prime contractors and subcontractors on construction contracts
should be required only where required by State law.
15. The County should review the number of non-bonded projects and encourage
participation on those projects by MBEs, WBEs, SBEs, and LBEs.
16. Prime contractors ("bidders) on construction contracts should be required to
outreach to MBE, WBE, SBE, and LBE subcontractors,truckers, suppliers, and
manufacturers.
17. The County should track the activities of the prime contractor by requiring the
following documentation from prime contractors (bidders) on construction
contracts: (a) "Letters of Intent" for subcontractors, suppliers, manufacturers,
and truckers to be submitted two days after bid opening; and (b) "Verification
of Performance" for subcontractors, suppliers, manufacturers, and truckers to
be submitted prior to final payment on the project.
18. Prime contractors on construction contracts should be required to have
available upon request certified payroll records from the subcontractors and
truckers to confirm that substitutions have not occurred on the project.
19. The County should pepare a monthly utilization report to monitor participation
of VIBE, WBE, SBE, and LBE subcontractors, suppliers, manufacturers, and
truckers;
_ 3 _
Report on workshops to Receive Additional Input Regarding Outreach Program
for County Contracts
August 4, 1998
20. Prime contractors on construction contracts should be required to request and
receive approval from the County to substitute subcontractors, suppliers,
truckers, and manufacturers. The replacement of a subcontractor, supplier,
manufacturer, or trucker must be should be with like kind (e.g., an SBE
substituted with another SBE, etc.).
21. Prince contractors on construction contracts should be required to make prompt
payment to their subcontractors, suppliers, truckers, and manufacturers..
Prompt payment language should be a part of the contract specifications.
22. The County should review upcoming projects and identify their funding
sources. A determination should be made whether any part of a project can be
accomplished with federal funding and whether it is cost effective to to select
that portion for federal funds.
23. The County should budget funds to provide for the evaluation and updating of
availability data on MBEs, WBEs, and DBEs at least'once every five years.
24. The County should review and reconsider the specification that states that a
contractor is required to pay $2,000 a day in liquidated penalties if their truck
breaks down and a replacement isn't made within 24 or 72 hours. This
requirement eliminates small businesses, especially truckers.
25. The County should adopt'a set aside program for Local Business Enterprises
and/or Small Business Enterprises,with approximately'10%of the total amount
of each project set aside for LBEs or SBEs.
26. The County should adopt an 8(a) Program similar to the federal 8(a) Program.
Small construction projects would beset aside for only 8(a) firms to bid. The
8(a) firm must be a Disadvantaged Business Enterprise(DBE). The time limit
for DBE firms in the 8(a) program is approximately seven years.
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...............
Report on Workshops to Receive Additional Input Regarding Outreach Program
for County Contracts
August 4, 1998
27. Prune contractors (bidders) should be given an incentive for meeting the
availability requirements, such as not having to submit the "outreach"
paperwork or being;given ten percent credit or less on the bid amount. For
example, if the bid is $75,000, a 10% credit would reduce it to $67,500,which
would then become the official bid.
28. The County should lower the program threshold from $50,000 to $25,000.
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Contra Costa County
Purchasing Outreach Program
This program applies to all purchasing contracts for goods or supplies, including purchase orders
and installment or term contracts. Purchasing contracts include all procurement that the County
Purchasing Manager/Agent(or other department or special district with direct contracting authority)
is authorized to make:
This program shall apply to all purchasing contracts that exceed$10,000. The following are exempt
from this program: sole source purchasing contracts, as determined by the Purchasing
Manager/Agent and reviewed by the Contract Compliance Officer and the County Administrator
emergencies,as defined in Ordinance Code Section 1108-2.206(c);and unique circumstances where
the County Administrator determines that an exception is necessary.
Outreach
a. For each purchasing contract covered by this program,the Purchasing Manager/Agent,who
is responsible for determining available vendors and soliciting their quotations,shall solicit
quotations from a broad range of vendors, 50%of which should be certified MBEs,WBEs
SBEs or LBEs.
b. For any procurement for which no MBE,WBE, SBE,or LBE vendors have been identified,
the Purchasing Manager/Agent shall immediately contact the Affirmative Action Office or
one of the following acceptable certifying agencies for assistance:
(1) City of Oakland
Office'of Public Works
One City Hall Plaza
Oakland,CA 94612
(510) 238-3970
(510)238-2233/fax
(2) Metropolitan Transportation Commission
Regional Transit Coordinating Council
Golden Gate Bridge, Highway and Transportation District,
Chair
1011 Andersen Drive#108
San Rafael, CA 94901-5381
(415)'257-4536
(415) 257-4535/fax
Cgonzale@ggbhtd.dst.ca.us
ggbhtddst.ca.us
Includes listings for the following agencies—
Alameda Contra Costa Transit District(AC Transit)
(510) 577-8812
(510) 577-8839/fain
Sandy@pacbell.net
Bay Area Rapid Transit District(BART)
(510)464-6610,
(510)x464-7587/fax
Jmackl@bart.dst.ca.us
Central Contra Costa Transit Authority(CCCTA or County Connection)
(510)676-1976 x223
(510) 686-2630/fax
Metropolitan Transportation Commission
(510)'464=7750
(510)464-7848/fax
Jmiyaz@mtc.dst.ca.us
San Mateo County Transit District(Samtrans)
(415) 508-6417
(415) 508-6415/fax
San Francisco Public Transportation
(415)'923-6139
(415) 923-6137
(415)923-6180/fax
Santa Clara Valley Transportation Authority
(408) 321-5606
(408) 955-0892/fax
Andyflores@vta.org
2
(3) San Francisco Human Rights Commission
25 Van Ness Avenue, Suite 800
San Francisco, CA94102-6033
(415)252-2500
(415)431-5764/fax
(4) State of California Department of Transportation
Division of Civil Rights
1120 N Street,Room 2445
Sacramento,CA 95814
(916) 654-7048
Http://www.dot.ca.gov/hq/bep/
(5) Port of Oakland
530 Water Street
Oakland,CA 94607
(510)272-1390
(510) 272-1172/fax
(6) Los Angeles Transportation Commission
Contract Compliance
818 West 71 Street,41 Floor
Los Angeles, CA 90017
(7) U.S. Small Business Administration
Regional Office
71 Stevenson Street,201 Floor
San Francisco, CA 94105-2939
(415) 744-6808
Award of Purchasing Contracts
When a purchasing contract is to be awarded,it shall be awarded in accordance with all applicable
statutes,'ordinances, and other County and/or state requirements.
Reporting
For all purchasing contracts covered by this program,the Contract Compliance Officer shall submit
periodic reports to the Board of Supervisors. The reports shall include the total number of
purchasing contracts by the Purchasing Manager/Agent(or other department or special district with
direct contracting authority) and the number and dollar value of all contracts, including those
contracts given to identified''MBE,'WBE SBE,and LBE vendors,
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Contra Costa County
Professional/Personal Services Outreach Program
This program applies to all service contracts,both formal and informal, including purchase orders
for services. The following are exempt from this program:contracts less than$2,500;:emergencies
as defined in Ordinance Code Section 1108-2.206(c);special expert services(criminal investigation,
prosecution,etc.)pursuant to Ordinance Code Section 1108-2.214(b)(3);and unique circumstances
where the County Administrator determines that an exception is necessary.
Outreach---informal Contracts
When a-request for services is made informally(i.e.,not with a request for proposals,request for
quotation, or statement of qualifications), it is the department's responsibility to solicit
consultants/service providers and to award the contract in a manner that is consistent with this
program.
Outreach by Consultant-Formal Contracts
When a request for services is made formally (i.e., with a request for proposals, request for
quotation,or statement of qualifications),consultants/service providers are encouraged to make the
following outreach efforts:
a. Contact the following acceptable certifying agencies for listings of MBEs,WBEs,SBEs,and
LBEs
(1) City of Oakland
Office of Public Works
One City Hall Plaza
Oakland, CA 94612
(510)238-3970
(510)238-2233/fax
- 1 -
(2) Metropolitan Transportation Commission
Regional Transit Coordinating Council
Golden Gate Bridge,Highway and Transportation District,
Chair
1011 Andersen Drive#108
San Rafael,CA 94901-5381
(415)257-4536
(415) 257-4555/fax
Cgonzale@ggbhtd.dst.ca.us
Includes listings for the following agencies—
Alameda Contra Costa Transit District(AC Transit)`
(510) 577-8812
(510):577-8839/fax
Sandy@pacbell.net
Bay Area Rapid Transit District(BART)
(510)464-6610
(510)464-7587/fax
Jrnack1@bart.dst.ca.us
Central Contra Costa Transit Authority(CCCTA or County Connection)
(510) 676-1976 x223
(510) 686-2630/fax
Metropolitan Transportation Commission
(510)464-7750
(510)464-7848/fax
Jmiyaz@mtc.dst.ca.us
San Mateo County Transit District (Samtrans)
(415) 508-6417
(415) 508-6415/fax
San Francisco Public Transportation
(415)923-6139
(415)923-6137
(415)923-6180/fax
-2 -
Santa Mara Valley Transportation Authority
(408)321-5606
(408)955-0892/fax
Andy.flores@vta.org
(3) Sara Francisco Human Rights Commission
25 Van Ness Avenue, Suite 800
San Francisco, CA 94102-6033
(415)252-2500
(415)431-5764/fax
(4) State of California Department of Transportation
Division of Civil Rights
1120 N Street,Room 2445
Sacramento,CA 95814
(916) 654-7048
Http://www.dot.ca.gov/hq/bep/
(5) Port of Oakland
530 Water Street
Oakland, CA 94607
(510) 272-1390
(510) 272-1172/fax
(6) Los Angeles Transportation Commission
Contract Compliance
818 West 7thStreet,4"Floor
Los Angeles,CA 90017
(7) U.S. Small Business Administration
Regional Office
71 Stevenson Street, 201 Floor
San Francisco, CA 94105-2939
(415)744-6808
b. Request assistance in identifying and notifying MBEs, WBEs, SBEs, and LBEs from
community organizations, consultant groups; local, state, or federal business assistance
offices,and/or other agencies or organizations that provide assistance in the recruitment and
placement of MBEs,WBEs, SBEs,and LBEs.
C. Conduct broad-based outreach to potential subconsultants,including MBEs,WBEs,'SBEs,
and LBEs,by notifying those firms of the project(via fax,newspaper advertisements,etc.),
- 3 -
by providing project information (proposal due date, description of the project, and other
pertinent information), and by inviting quotations from all interested firms.`
Outreach by Department—Formal Contracts
Departments are responsible for the following outreach efforts:
a. Provide pre-solicitation meetings and identify items of work to be performed by the
consultant/service provider, including licenses and bonding requirements.
b. Advertise projects in daily or weekly newspapers or other media, including minority and
women'publications'or other media. The advertisement(s) should state the following at a
minimum:
(1) Proposal due date;
(2) Description of the entire project;
(3) Items of work to be performed in the project;
(4) Bonding requirements and other special license requirements; and
(5) Other pertinent information.
C. Maintain a list of certified MBEs, WBEs, and SBEs by using the Caltrans directory, the
County directory, and the directories of other certifying agencies acceptable to the County.
d. Annually and upon request, revise the list of MBE, WBE, and SBE consultants/service
providers maintained by the department to include updated information from the Caltrans'
directory,the County directory,and the directories of other certifying agencies acceptable"
to the County.
e. Continue to submit to the Contract Compliance Officer, upon request, documentation on
projects.
f.. Review the feasibility of identifying contracts that would allow for the selection of a pool
of consultants/service providers to receive contract awards on a rotational basis. The pool
of consultants/service providers would'include MBEs,WBEs, SBEs, and LBEs.
Verification of Performance
Upon completion of services,the consultant/service provider shall submit a completed"Verification
of Performance"form for each identified first tier subconsultant utilized by the consultant/service
provider in connection with the project. Where possible, the form shall be signed by the
subconsultant and shall identify the item(s)of work performed and the actual dollar amount received
-4 -
or to be received. Consultants/service providers should submit the forms to the department,which
shall forward copiesof the completed forms to the Contract Compliance Officer prior to final
payment for work done.
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