HomeMy WebLinkAboutBOARD STANDING COMMITTEES - 03112019 - Internal Ops Agenda Pkt
INTERNAL OPERATIONS
COMMITTEE
March 11, 2019
1:00 P.M.
651 Pine Street, Room 101, Martinez
Supervisor Diane Burgis, Chair
Supervisor Candace Andersen, Vice Chair
Agenda
Items:
Items may be taken out of order based on the business of the day and preference
of the Committee
1.Introductions
2.Public comment on any item under the jurisdiction of the Committee and not on this
agenda (speakers may be limited to three minutes).
3. RECEIVE and APPROVE the Record of Action for the February 11, 2019 IOC meeting.
(Julie DiMaggio Enea, IOC Staff)
4. CONSIDER recommending to the Board of Supervisors the appointment of the Peter
Dahling to the Business #2 Alternate seat on the Hazardous Materials Commission to
complete the unexpired term ending on December 31, 2021. (Michael Kent, Health
Services Department)
5. CONSIDER accepting report on the Auditor-Controller's audit activities for 2018, and
approving the proposed schedule of financial audits for 2019. (Joanne Bohren, Chief
Auditor)
6. CONSIDER accepting the 2017/18 annual report from the Public Works Director on the
Internal Services Fund and status of the County's Vehicle Fleet. (Carlos Velasquez,
Fleet Services Manager)
7. CONSIDER accepting the Small Business Enterprise, Outreach and Local Bid
Preference Programs Report, reflecting departmental program data for the period July 1
through December 31, 2018. (David Gould, Purchasing Services Manager)
8.The next meeting is currently scheduled for April 8, 2019.
9.Adjourn
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The Internal Operations Committee will provide reasonable accommodations for persons with
disabilities planning to attend Internal Operations Committee meetings. Contact the staff person
listed below at least 72 hours before the meeting.
Any disclosable public records related to an open session item on a regular meeting agenda and
distributed by the County to a majority of members of the Internal Operations Committee less than
96 hours prior to that meeting are available for public inspection at 651 Pine Street, 10th floor,
during normal business hours. Staff reports related to items on the agenda are also accessible on
line at www.co.contra-costa.ca.us.
Public comment may be submitted via electronic mail on agenda items at least one full work day
prior to the published meeting time.
For Additional Information Contact:
Julie DiMaggio Enea, Committee Staff
Phone (925) 335-1077, Fax (925) 646-1353
julie.enea@cao.cccounty.us
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INTERNAL OPERATIONS COMMITTEE 3.
Meeting Date:03/11/2019
Subject:RECORD OF ACTION FOR THE FEBRUARY 11, 2019 IOC MEETING
Submitted For: David Twa, County Administrator
Department:County Administrator
Referral No.: N/A
Referral Name: RECORD OF ACTION
Presenter: Julie DiMaggio Enea Contact: Julie DiMaggio Enea (925) 335-1077
Referral History:
County Ordinance requires that each County body keep a record of its meetings. Though the
record need not be verbatim, it must accurately reflect the agenda and the decisions made in the
meeting.
Referral Update:
Attached is the Record of Action for the February 11, 2019 IOC meeting.
Recommendation(s)/Next Step(s):
RECEIVE and APPROVE the Record of Action for the February 11, 2019 IOC meeting.
Fiscal Impact (if any):
None.
Attachments
DRAFT IOC Record of Action for February 11, 2019
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INTERNAL OPERATIONS
COMMITTEE
RECORD OF ACTION FOR
FEBRUARY 11, 2019
Supervisor Diane Burgis,Chair
Supervisor Candace Andersen, Vice Chair
Present: Diane Burgis, Chair
Candace Andersen, Vice Chair
Staff Present:Julie DiMaggio Enea, Staff
Attendees: Alicia Nuchols, District III Supervisor's Office
Michael Kent, HSD Hazardous Materials Program
1.Introductions
Chair Burgis convened the meeting at 1:00 p.m. and self introductions were made
around the room.
2.Public comment on any item under the jurisdiction of the Committee and not on this
agenda (speakers may be limited to three minutes).
No one requested to speak during the public comment period.
3.RECEIVE and APPROVE the Record of Action for the January 28, 2019 IOC meeting.
The Committee approved the record of action for the January 28, 2019 meeting as
presented.
AYE: Chair Diane Burgis, Vice Chair Candace Andersen
Passed
4.APPROVE for recommendation to the Board of Supervisors the Hazardous Materials
Commission nominations of the following individuals for appointment to the Commission:
Action Seat Nominee Expiration
Reappoint Business #1 Fred Glueck December 31, 2022
Reappoint Business #1 Alternate Aaron Winer December 31, 2022
Appoint Business #2 Mark Hughes December 31, 2021
Reaapoint Labor #1 Henry Alcaraz December 31, 2022
DRAFT
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The Committee approved the recommended appointments and directed staff to forward
the recommendations to the Board of Supervisors.
AYE: Chair Diane Burgis, Vice Chair Candace Andersen
Passed
5.APPROVE nominations of the Affordable Housing Finance Committee to appoint Frances
Sorrondegui to the Community #2 seat, and reappoint Willie Robinson to the County #2
seat, both with terms ending on June 30, 2021
The Committee approved the recommended appointments and directed staff to forward
the recommendations to the Board of Supervisors.
AYE: Chair Diane Burgis, Vice Chair Candace Andersen
Passed
6.APPROVE the proposed recruitment plan and schedules to fill public member or At Large
seat vacancies on certain Board advisory bodies, commissions and committees.
The Committee approved the recruitment plan for the scheduled vacancies to be filled
this year through the Committee's recruitment and interview process.
AYE: Chair Diane Burgis, Vice Chair Candace Andersen
Passed
7.APPROVE the proposed 2019 Committee meeting schedule and work plan, or provide
direction to staff regarding any changes thereto.
The Committee approved the proposed meeting schedule and work plan with one
addition: a referral requesting a report from the Public Information Officer within the
next six months on outreach tools and efforts throughout county departments to
communicate County issues to constituents.
AYE: Chair Diane Burgis, Vice Chair Candace Andersen
Passed
8.The next meeting is currently scheduled for March 11, 2019.
9.Adjourn
Chair Burgis adjourned the meeting at 1:30 p.m.
For Additional Information Contact:
Julie DiMaggio Enea, Committee Staff
Phone (925) 335-1077, Fax (925) 646-1353
julie.enea@cao.cccounty.us
DRAFT
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INTERNAL OPERATIONS COMMITTEE 4.
Meeting Date:03/11/2019
Subject:RECOMMENDATION FOR APPOINTMENT TO THE HAZARDOUS
MATERIALS COMMISSION
Submitted For: Anna Roth, Health Services Director
Department:Health Services
Referral No.: IOC 19/5
Referral Name: Advisory Body Recruitment
Presenter: Michael Kent, Exec Asst to the
Commission
Contact: Michael Kent (925)
313-6712
Referral History:
In 2013, IOC reviewed Board Resolution Nos. 2011/497 and 2011/498, which stipulate that
applicants for At Large/Non Agency-Specific seats on specified bodies are to be interviewed by a
Board Committee. The IOC made a determination that it would delegate the screening and
nomination of Hazardous Materials Commission candidates to the Commission, for review by the
IOC.
The Hazardous Materials Commission was established in 1986 to advise the Board, County Staff
and the mayor's council members, and staffs of the cities within the County, on issues related to
the development, approval and administration of the County Hazardous Waste Management Plan.
Specifically, the Board charged the Commission with drafting a Hazardous Materials Storage and
Transportation Plan and Ordinance, coordinating the implementation of the Hazardous Materials
Release Response Plan and inventory program, and analyzing and developing recommendations
regarding hazards materials issues with consideration to broad public input, and reporting back to
the Board on Board referrals.
Referral Update:
The term for Business #2 Alternate seat expired on December 31, 2017 and has been vacant ever
since. The bylaws of the Commission provide that Business #2 Alternate seat be nominated by the
Industrial Association, screened by the Internal Operation Committee and appointed by the Board
of Supervisors. The Industrial Association has nominated Peter Dahling, Senior Manager of
Regulatory Affairs at Marathon Oil, for this seat. His letter of support and application are
attached. The term for this seat expires on December 31, 2021.
Recommendation(s)/Next Step(s):
RECOMMEND to the Board of Supervisors the appointment of the Peter Dahling to the Business
6
RECOMMEND to the Board of Supervisors the appointment of the Peter Dahling to the Business
#2 Alternate seat on the Hazardous Materials Commission to complete the unexpired term ending
on December 31, 2021.
Attachments
IACCC Letter of Nomination for HazMat Commission
Candidate Application_Peter Dahling_HazMat Comm
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10
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INTERNAL OPERATIONS COMMITTEE 5.
Meeting Date:03/11/2019
Subject:REPORT FROM THE AUDITOR-CONTROLLER’S OFFICE ON THE
SCHEDULE OF FINANCIAL AUDITS FOR 2019
Submitted For: Robert Campbell, Auditor-Controller
Department:Auditor-Controller
Referral No.: IOC 19/2
Referral Name: Review of the Annual Audit Schedule
Presenter: Joanne Bohren, Auditor-Controller
Division Mgr
Contact: Joanne Bohren
925-335-8610
Referral History:
The Internal Operations Committee was asked by the Board in 2000 to review the process for
establishing the annual schedule of audits, and to establish a mechanism for the Board to have
input in the development of the annual audit schedule and request studies of departments,
programs or procedures. The IOC recommended a process that was adopted by the Board on June
27, 2000, which called for the IOC to review the schedule of audits proposed by the
Auditor-Controller and the County Administrator each December. However, due to the
preeminent need during December for the Auditor to complete the Comprehensive Annual
Financial Report, the IOC, some years ago, rescheduled consideration of the Auditor’s report to
February of each year.
Referral Update:
Attached is a report from the Auditor-Controller reviewing the department’s audit activities for
2018 and transmitting the proposed schedule of financial audits for 2019, which are already in
progress.
To provide continuity from the prior year report, in 2018, the Auditor's Office found an overall
lack of adherence to several of the County's administrative requirements for cash collection;
discharge of delinquent accounts; inventories of materials, supplies and capital assets; and petty
cash. The Auditor also found noncompliance with procurement card policies, contracting policies
and procedures, and MAC fiscal procedures.
Supervisor Andersen commented last year that staff compliance with the procurement card
policies might be improved if an FAQ (frequently asked questions) document was made available
on the Intranet. Purchasing Manager David Gould had clarified that procurement card training is
provided once to new card holders.
Auditor-Controller Division Manager Joanne Bohren will present the 2019 report.
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Recommendation(s)/Next Step(s):
ACCEPT report on the Auditor-Controller's audit activities for 2018 and APPROVE the proposed
schedule of financial audits for 2019.
Fiscal Impact (if any):
There is no fiscal impact related to providing input into the annual audit schedule. The financial
auditing process may result in positive and negative fiscal impacts, depending on the audit
findings.
Attachments
2019 Internal Audit Report
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INTERNAL OPERATIONS COMMITTEE 6.
Meeting Date:03/11/2019
Subject:RECOMMENDATIONS FOR DISPOSITION OF LOW MILEAGE FLEET
VEHICLES
Submitted For: Brian M. Balbas, Public Works Director/Chief Engineer
Department:Public Works
Referral No.: IOC 19/3
Referral Name: Review of Annual Master Vehicle Replacement List and Disposition of
Low-Use Vehicles
Presenter: Joe Yee, Deputy Public Works Director Contact: Carlos Velasquez 925....
Referral History:
In FY 2008/09, the Board approved the establishment of an Internal Services Fund (ISF) for the
County Fleet, now administered by the Public Works Department. Each year, the Public Works
Department Fleet Services Manager analyzes the fleet and annual vehicle usage, and makes
recommendations to the IOC on the budget year vehicle replacements and on the intra-County
reassignment of underutilized vehicles, in accordance with County policy. The Board requested
the IOC to review annually the Public Works Department report on the fleet and on low-mileage
vehicles.
To provide context for the 2017/18 annual report, attached, below are some highlights from the
2016/17 annual report:
In FY 2016-17, 57 new vehicles were purchased, 28% less than FY 2015-2016, and 33%
less than were purchased in FY 2014-15.
Fleet continually reviews vehicle usage in an effort to reduce underutilized vehicles
according to Administrative Bulletin 508.5. During the most recent review in February
2017, one unit was identified that required further analysis for possible reclassification or
reassignment which is the same as previous year.
Fleet Services continues to promote building a “Green Fleet” by purchasing 26 hybrid
vehicles as replacement vehicles.
Fleet Services continues to install telematics GPS devices, where appropriate, to help
improve fleet utilization, identify vehicle locations in the event of an emergency, reduce
costs by identifying and immediately reporting operational issues with the vehicle, and
improve accuracy of mileage meter readings. Department users of vehicles equipped with
the telematics GPS devices also have access to standard reports which they can use to review
incidences of speeding, excessive idling, vehicle utilization, etc., to help reduce
departmental fleet cost. Over 681 vehicles in the County fleet are equipped with these
devices.
429 light vehicles equipped with the telematics GPS device are enrolled in the State 21
429 light vehicles equipped with the telematics GPS device are enrolled in the State
Continuous Smog Testing Pilot Program excluding them from the mandatory biennial
physical smog test which reduces cost and vehicle downtime. The telematics device
continuously monitor emissions performance and will send a notification immediately when
a fault is detected so repairs can be made.
Referral Update:
Attached for the Committee's review is the 2017/18 annual report on the ISF and low-mileage
vehicles, as prepared by the Public Works Department.
Recommendation(s)/Next Step(s):
ACCEPT 2017/18 annual report from the Public Works Director on the Internal Services Fund
and status of the County's Vehicle Fleet.
Fiscal Impact (if any):
Reassigning underutilized vehicles would increase cost efficiency, but the fiscal impact was not
estimated.
Attachments
Public Works FY 2017/18 Fleet Report
Public Works FY 2017/18 Fleet Report_Attachment A
Public Works FY 2017/18 Fleet Report_Attachment B
Public Works FY 2017/18 Fleet Report_Attachment C
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"Accredited by the American Public Works Association"
255 Glacier Drive Martinez, CA 94553-4825
TEL: (925) 313-2000 • FAX: (925) 313-2333
www.cccpublicworks.org
Brian M. Balbas , Director
Deputy Directors
Stephen Kowalewski, Chief
Mike Carlson
Warren Lai
Carrie Ricci
Joe Yee
Memo
March 6, 2019
TO: Internal Operations Committee
Supervisor Diane Burgis, District III, Chair
Supervisor Candace Andersen, District II, Vice Chair
FROM: Brian M. Balbas, Public Works Director
SUBJECT: FLEET INTERNAL SERVICE FUND FY 2017-18 REPORT
MESSAGE:
Recommendation
Accept the Internal Service Fund (ISF) Fleet Services report for FY 2017-18.
Background
The Fleet Services Division has operated as an Internal Service Fund since 2008 to ensure
stable and long-term vehicle replacement funding.
Fleet Services provides various services to County departments including the acquisition,
preventative maintenance, repair, and disposal of fleet vehicles and equipment. The division
services the County’s fleet of over 1500 vehicles/equipment/trailers, of which, 908 vehicles are
included in the ISF program.
ISF Rate Structure
There are three components to recover operational costs for vehicles in the ISF Fleet Services
program which are charged to the departments. They are:
1. A fixed monthly cost to cover insurance, Fleet Services overhead, and vehicle
depreciation / replacement
2. A variable cost based on miles driven to cover maintenance and repair costs
3. Direct costs for fuel
This rate structure enables the ISF to collect monthly payments from customer departments
over the life-cycle of the units to fund operations and enable the systematic replacement of units
at the end of a vehicle’s useful life or when it becomes a cost-effective decision to do so.
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2017-18 Fleet ISF Report
March 6, 2019
Page 2 of 4
The estimated fixed and variable rates are adjusted each year to develop ISF rates as close to
actual costs as possible for each class of vehicle. Accordingly, the FY 2017-18 expenses were
reviewed to develop new rates for FY 2018-19, which went into effect September 1, 2018.
Please refer to Attachment A accompanying this report for the ISF Fleet Rates Schedule.
Fleet Services Goals and Objectives
Continue to provide cost-effective services that meet or exceed our customers’ needs
and expectations by evaluating additional services and new technologies to increase
efficiencies.
Continue to evaluate and recommend for replacement all vehicles and fleet equipment
that are due for replacement based on a predetermined schedule and/or a time when it
is most cost-effective to do so and in accordance with Administrative Bulletin 508.5.
This increases vehicle availability through reduced down time associated with an older
fleet.
Continue to maintain a newer fleet focusing on preventative maintenance thus reducing
repair costs typically associated with an older fleet.
Continue to purchase clean air vehicles whenever feasible and to grow the number of
electric vehicles in the fleet as existing equipment requires replacement. Fleet Services
continues to seek grant funding opportunities to expand the electric vehicle charging
station infrastructure to support County and personal vehicles.
Continue to ensure that all County vehicles are maintained and repaired in a timely,
safe, and cost effective manner in order to provide departments with safe, reliable
vehicles and equipment.
Continue to work with departments to identify vehicles and equipment that are
underutilized in an effort to maximize fleet utilization, identify departmental actual needs,
and reduce fleet costs.
Highlights
In FY 2017-18, 74 new vehicles were purchased, 16% more than FY 2016-17, and 6%
less than were purchased in FY 2015-16.
Fleet continually reviews vehicle usage in an effort to reduce underutilized vehicles
according to Administrative Bulletin 508.5. During the most recent review in February
2019, two units were identified that required further analysis for possible reclassification
or reassignment which is one more than the previous year.
Fleet Services continues to promote building a “Green Fleet” by purchasing 20 hybrid
vehicles as replacement vehicles.
Fleet Services continues to install telematics GPS devices, where appropriate, to help
improve fleet utilization, identify vehicle locations in the event of an emergency, reduce
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2017-18 Fleet ISF Report
March 6, 2019
Page 3 of 4
costs by identifying and immediately reporting operational issues with the vehicle, and
improve accuracy of mileage meter readings. Department users of vehicles equipped
with the telematics GPS devices also have access to standard reports which they can
use to review incidences of speeding, excessive idling, vehicle utilization, etc. to help
reduce departmental fleet cost. Over 770 vehicles in the County fleet are equipped with
these devices.
Light vehicles equipped with the telematics GPS device are enrolled in the State
Continuous Smog Testing Pilot Program excluding them from the mandatory biennial
physical smog test which reduces cost and vehicle downtime. The telematics device
continuously monitor emissions performance and will send a notification immediately
when a fault is detected so repairs can be made.
Summary
The Fleet Services Division operates as an Internal Service Fund (ISF), providing services to a
variety of County Departments. As an ISF, Fleet is responsible to fully recover the cost of
providing services and the cost of capital purchases. Key responsibilities of the Division are
vehicle preventative maintenance and repair, fueling, replacement analysis, specification
review, acquisition, new vehicle up-fitting, and preparation of surplus vehicles for disposal.
In FY 2017-18, Fleet Services had a staff of 21 Administration and Operations employees. The
Administration section consists of one Fleet Manager, one Fleet Service Center Supervisor, one
Fleet Equipment Specialist and one Clerk. The Operations section consists of one Lead Fleet
Technician, 2 Equipment Services Workers, 12 Equipment Mechanics and 2 Equipment Service
Writers.
The FY 2017-18 budget of $14,528,416 included: $2,678,183 for salaries; $4,203,608 for
vehicle repairs; $2,054,476 for fuel; and $2,789,256 for the replacement of fleet vehicles and
equipment. The ending ISF Fund Balance for FY 2017-18 is $13,959,235.
Equipment
Replacement
(4000), 19%
Preventative
Maintenance &
Repairs(2271),
29%
Fuel (2272),
14%
Salaries (1000),
18%
Other
Operations &
Misc (Balance),
19%
ISF Fleet Budget
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2017-18 Fleet ISF Report
March 6, 2019
Page 4 of 4
Fleet Services continues to purchase clean air vehicles whenever feasible and plans to grow the
number of electric vehicles in the fleet as existing equipment requires replacement. All diesel
vehicles use renewable fuel and all sedans must have a PZEV rating or greater by the California
Air Resources Board.
Fleet Services continues to work to achieve the primary goals and objectives of providing
County departments with vehicles and equipment that are safe, reliable, economically
sustainable, and consistent with departmental needs and requirements at the lowest possible
cost. The Division will continue to monitor vehicle use to optimize new vehicle acquisition and
better utilize existing vehicle assets.
Attachments
A ISF Rates Schedule
B ISF Fund Balance
C ISF Net Assets
G:\Admin\Joe\Fleet Management\IOC Annual Fleet Report\IOC Fleet Report FY2017-18\IOC Fleet Report FY2017-18 Final
Version.docx
Sedans,
44%
Patrol,
20%
Trucks &
Vans, 36%
ISF Fleet by Vehicle Class
Unleaded,
64.23%
Renewable
Diesel,
13.75%
CNG,
2.41%
Hybrid,
15.00%
Electric,
2.27%
ISF Fleet by Fuel Type
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Internal Service Fund - Fleet Services
ISF Fleet Rates Schedule
FY 2017-18
Category Monthly
Rate
Mileage
Charge
Monthly
Rate
Mileage
Charge
Monthly
Rate
Mileage
Charge
Monthly
Rate
Mileage
Charge
Monthly
Rate
Mileage
Charge
ISF-Sedan 264.33$ 0.200$ 349.83$ 0.220$ 372.33$ 0.170$ 375.75$ 0.170$ 0.9%0.0%
ISF-Cargo Van 435.33 0.210 434.67 0.306 397.75 0.300 376.17 0.360 -5.4%20.0%
ISF-Passenger Van 315.33 0.280 356.50 0.262 293.42 0.290 283.17 0.300 -3.5%3.4%
ISF-Patrol 445.00 0.410 576.92 0.635 770.17 0.470 794.50 0.630 3.2%34.0%
ISF-Sports Utility Vehicle 374.50 0.200 406.67 0.241 373.75 0.230 415.08 0.210 11.1%-8.7%
ISF-Truck, Compact 223.50 0.290 254.25 0.217 238.00 0.380 228.25 0.310 -4.1%-18.4%
ISF-Truck, Fullsize 335.08 0.410 496.33 0.254 482.33 0.360 383.67 0.460 -20.5%27.8%
ISF-Truck, Utility 316.42 0.550 403.08 0.285 540.75 0.590 618.33 0.240 14.3%-59.3%
% ChangeFY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Attachment A
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Internal Service Fund - Fleet Services
Fund Balance
For the Year Ended June 30, 2018
Beginning Fund Balance 12,002,754$ 13,280,812$
Expenses
Salaries & Benefits 2,002,658$ 2,226,419$
Services and Supplies, Other Charges 7,371,562 8,296,506
Depreciation 2,479,249 2,585,310
Total Expenses 11,853,469$ 13,108,235$
Revenues
Charges for services 12,261,130$ 13,218,453$
Transfers In/(Out)421,731 119,694
Sale of Surplus Vehicles 193,286 248,703
Indemnifying Proceeds (Accidents)255,380 199,809
Total Revenue 13,131,527$ 13,786,658$
Change in Fund Balance 1,278,058$ 678,423$
FY Ending Fund Balance 13,280,812$ 13,959,235$
FY 2017-18FY 2016-17
Attachment B
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Internal Service Fund - Fleet Services
Balance Sheet (Fund 150100)
As of June 30, 2018
FY 2016-17 FY 2017-18
Assets
Current Assets:
0010 Cash 3,680,540$ 5,356,309$
0100 Accounts Receivable 881 (2,696)
0170 Inventories 453,298 370,636
0180 Due From Other Funds 1,831,931 4,667,007 (1)
0250 Prepaid Expense 73,613 (14,242)
Total Current Assets 6,040,262$ 10,377,014$
Noncurrent Assets:
0340 Equipment 23,435,483 24,142,872
0360 Construction In Progress 822,053 134,914
0370 Reserve For Depreciation (15,576,586) (16,464,226)
Total Noncurrent Assets 8,680,950$ 7,813,560$
Total Assets 14,721,212$ 18,190,575$
Liabilities
0500 Accounts Payable 576,350$ 616,070$
0540 Due To Other Funds 788,844 3,533,644 (1)
0640 Employee Fringe Benefit Pay 75,206 81,625
Total Liabilities 1,440,400$ 4,231,339$
Net Position
Net Capital Assets 8,680,950$ 7,813,560$
4,599,862 6,145,675
Total Net Position 13,280,812$ 13,959,235$
(1)Year-end journal processed by Auditor to adjust depreciation creating an overstatement in
0180 - Due From Other Funds and 0540 - Due to Other Funds. Net effect on Total Net Position is zero.
Working Capital
Attachment C
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INTERNAL OPERATIONS COMMITTEE 7.
Meeting Date:03/11/2019
Subject:Small Business Enterprise & Outreach Program - July-December 2017
Submitted For: Brian M. Balbas, Public Works Director/Chief Engineer
Department:Public Works
Referral No.: IOC 19/1
Referral Name: Small Business Enterprise and Outreach Programs
Presenter: David Gould, Purchasing Services
Manager
Contact: David Gould (925)
313-2151
Referral History:
The Board of Supervisors has adopted these programs to enable small and local businesses to
compete for a share of the County's purchasing transactions.
SBE and Outreach Programs. The Board of Supervisors has set a goal of awarding at least 50%
of eligible product and service dollars to small businesses. The Small Business Enterprise (SBE)
Program applies to: (1) county-funded construction contracts of $100,000 or less; (2) purchasing
transactions of $100,000 or less; and (3) professional/personal service contracts of $100,000 or
less. The SBE Program's objective is to have at least 50% or more of the total eligible dollar base
amounts be awarded to SBEs. A Small Business Enterprise, as defined by the California
Government Code, Section 14837, Chapter 3.5 must be:
Independently owned and operated business, which is not dominant in its field of operation
Principal office of which is located in California
Officers of which are domiciled in California, and which together with affiliates, has 100 or
fewer employees
Average annual gross receipts of fourteen million dollars ($15,000,000) or less over the
previous three tax years, or a manufacturer with 100 or fewer employees.
Local Bid Preference Program. On August 10, 2004, the Board of Supervisors referred to the
Internal Operations Committee (IOC) the creation of a policy to grant a five percent preference to
Contra Costa County vendors on all sealed bids or proposals, except with respect to those
contracts which state law requires to be granted to the lowest bidder, and review of an ordinance
to be drafted by County Counsel to enact this policy. The 2005 IOC proposed a new ordinance to
the Board of Supervisors, and the Board adopted the local bid preference ordinance to support
small local business and stimulate the local economy at no additional cost to the County. The
ordinance provides that if the low bid in a commodities purchase is not a local vendor, any
responsive local vendor who submitted a bid over $25,000 that was within 5% percent of the
lowest bid has the option to submit a new bid. The local vendor will be awarded if the new bid is
in an amount less than or equal to the lowest responsive bid, allowing the County to favor the
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in an amount less than or equal to the lowest responsive bid, allowing the County to favor the
local vendor but not at the expense of obtaining the lowest offered price.
The ordinance defines a local vendor as any business that has its headquarters, distribution point,
or locally-owned franchise located within the county for at least six months immediately prior to
the issuance of the request for bids, and holds a valid business license by a jurisdiction in Contra
Costa County.
Reporting Requirements
It is the responsibility of each department to track and compile the data on purchasing and
outreach activities so that a countywide report can be provided to the Board of Supervisors. It is
the responsibility of the Purchasing Services Manager to comply with and report on the Local Bid
Preference Program. The Board receives reports for six month increments, and the last report
received by the Board was for the period ending June 30, 2018.
Since adoption, the IOC has continued to monitor the effects of these programs through annual
reports, currently prepared and presented by the Purchasing Services Manager.
Referral Update:
The attached report constitutes the next report due for the time period of July 1 through December
31, 2018.
Recommendation(s)/Next Step(s):
ACCEPT the Small Business Enterprise, Outreach and Local Bid Preference Programs Report,
reflecting departmental program data for the period July 1 through December 31, 2018.
Fiscal Impact (if any):
None. This is an informational report.
Attachments
SBE, Outreach and Local Bid Programs Report for July-December 2018
SBE, Outreach and Local Bid Programs Report for July-December 2017_Attachment A
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“Accredited by the American Public Works Association”
255 Glacier Drive Martinez, CA 94553-4825
TEL: (925) 313-2000 FAX: (925) 313-2333
www.cccpublicworks.org
Brian M. Balbas, Director
Deputy Directors
Stephen Kowalewski, Chief
Mike Carlson
Carrie Ricci
Joe Yee
March 4, 2019
TO: Internal Operations Committee
Supervisor Diane Burgis, District III, Chair
Supervisor Candace Andersen, District II, Vice Chair
FROM: David Gould, Procurement Services Manager
SUBJECT: Small Business Enterprise, Outreach, and Local Program Report for
July‐December 2018
RECOMMENDATION:
ACCEPT the SBE, Outreach, and Local Programs Report, reflecting departmental
program data for the period: July 1 through December 31, 2018.
BACKGROUND:
Contra Costa County values the contributions of small business in the County and has
developed programs to assist in the solicitation and awarding of contracts. The Board of
Supervisors has adopted these programs to enable small and local businesses to compete
for a share of the County's purchasing transactions.
The Board of Supervisors has set a goal of awarding at least 50% of eligible product and
service dollars to small businesses. The Small Business Enterprise (SBE) Program applies
to: (1) county-funded construction contracts of $100,000 or less; (2) purchasing
transactions of $100,000 or less; and (3) professional/personal service contracts of
$100,000 or less.
The SBE Programs objective is to have at least 50% or more of the total eligible dollar base
amounts be awarded to SBEs. A Small Business Enterprise, as defined by the California
Government Code, Section 14837, Chapter 3.5 must be:
•Independently owned and operated business, which is not dominant in its field of
operation
•Principal office of which is located in California
•Officers of which are domiciled in California, and which together with affiliates, has 100 or
fewer employees
•Average annual gross receipts of fifteen million dollars ($15,000,000) or less over the
previous three tax years, or a manufacturer with 100 or fewer employees.
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SBE, Outreach, and Local Business Report
March 4, 2019
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Reporting Requirements
It is the responsibility of each department to track and compile the data on these
purchasing activities so that a countywide report can be provided to the Board of
Supervisors. The Board receives reports for six month increments, and the last report
received by the Board was for the period ending June 2018. Attachment A constitutes the
report due for the time period of July 1- December 31, 2018.
Summary Findings
The table below summarizes the attached department activity on a countywide basis.
July - December 2018
ACTIVITY TYPE:
Total # of
ALL
Contracts
Total # of
SBE
Contracts
SBE
Percent of
Total
Total Dollar
Value of ALL
Contracts
Total Dollar
Value of SBE
Contracts
SBE
Percent of
Total
Professional/Personal Services 364 190 52.2 $19,993,502 $9,573,644 47.9%
Purchasing Transactions 1438 444 30.9% $27,797,254 $7,922,678 28.5%
Construction Contracts 1 1 100% $66,741 $66,741 100%
Overall this information shows the County is directing a large volume of qualifying activity
to SBE firms. For professional/personal services contracts, this activity fell short of the
50% goal for the dollar value of contracts. The dollar value of contracts awarded to
businesses under the program went up to nearly $9.6 million for this period compared to
$4.7 million in the previous reporting period. This represents a $4.8 million increase of
eligible dollars awarded to program participants.
For the category of purchasing transactions, it should be noted that while the activity did
not achieve the 50% goal, the dollar value of these contracts awarded to SBE businesses
was nearly $8 million for the reporting period. Departments report one construction
contract awarded under the program for this period.
It is worth noting that the SBE participation goals of surrounding agencies are more
typically in the 20-25% range. By that measure, Contra Costa County’s reported activity is
above that threshold in every reporting category.
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SBE, Outreach, and Local Business Report
March 4, 2019
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E-Outreach Report
In order to encourage the use of small, local, and disadvantaged businesses, the County's E-
Outreach Program requires bids and Request for Proposals of $10,000 or more to be solicited
online. For this period there were 23 bids totaling $27,344,055 that fell within the County's
E-Outreach Program.
In addition, outreach data for all electronic solicitations is maintained and provided
through the Purchasing Division of the Public Works Department reflecting outreach to
small, women, minority-owned, local, disabled veteran, and disadvantaged business
enterprises. During the reporting period, 23 bids were conducted using the BidSync e-
outreach site. Notifications were sent to 90,358 businesses of which 47.5% are considered
a small, local, or disadvantaged business.
E-Outreach
July 1, 2018 - December 31, 2018
Number of Solicitations 23
Total Notifications 90,358
Dollar Value $ 27,344,056
BUSINESS CATEGORY Notifications Percentage of Total
MBE - Minority Business Enterprise 7,603 8.4%
WBE - Women Business Enterprise 5,647 6.2%
SBE - Small Business Enterprise 24,074 26.6%
LBE - Local Business Enterprise 355 0.4%
DVBE - Disabled Veteran Business Enterprise 211 0.2%
DBE – Disadvantaged Business Enterprise 5,073 5.6%
Total 42,963 47.5%
$‐
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
1/1 to 6/30 2017 7/1 to 12/31 2017 1/1 to 6/30 2018 7/1 to 12/31 2018
Value of Contracts Awarded
In Millions
Professional Services Purchase Orders Construction Contracts
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SBE, Outreach, and Local Business Report
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Local Business Preference
The Local Bid Preference Program allows a bidder in a commodity bid exceeding $25,000,
who is a low bidder, to submit a new bid if they are within 5% of the low bidder. There
were no instances of the Bid Preference being utilized for this reporting period.
Dollar Value Awarded to Local and Bay Area Businesses
The dollar value of Purchase Orders issued for the period was $150.7 million. The dollar
value awarded to Contra Costa County businesses was $9.3 million. The value awarded to
all Bay Area businesses was 29% or $44.1 million, a significant increase from the previous
reporting period. This represents a significant contribution to the local economy.
Contra Costa County $9,296,838 6%
Other Bay Area Counties $34,817,845 23%
Other $106,607,317 71%
Total $150,722,000 100%
Conclusion
The County demonstrates continued commitment to achieving the 50% goal for
participation by SBE firms in contract and purchasing activity. While the data for some
departments is below this threshold, this is often due to unique business requirements that require
sole source purchases or contracts.
Attachment A
0
20
40
60
80
100
120
1/1 to 6/30 2017 7/1 to 12/31 2017 1/1 to 6/30 2018 7/1 to 12/31 2018
PO Value by Location
In Millions
Contra Costa County Other Bay Area Counties Other
35
ATTACHMENT ASMALL BUSINESS ENTERPRISE ‐ Program Activity reportReporting Period: July ‐ December 2018Total # of Total # of SBE percent ofTotal dollar value Total dollar value SBE percent ofALLcontractsSBEcontractsTotal # of contractsof ALL contractsof SBEcontractsTotal contracts valueAgricultureProfessional/Personal services contracts 1 1 100.0% $14,000 $14,000 100.0%Purchasing Transactions000.0%$0$00.0%Construction contracts000.0%$0$00.0%Animal Services Professional/Personal services contracts 31 24 77.4% $1,526,467 $1,203,740 78.9%Purchasing Transactions411331.7%$343,949 $57,29316.7%Construction contracts000.0%$0$00.0%AssessorProfessional/Personal services contracts 0 0 0.00% $0 $0 0.0%Purchasing Transactions 12 2 83.30% $72,968 $19,576 26.8%Construction contracts 0 0 0 $0 $0 0.0%Auditor‐ControllerProfessional/Personal services contracts 0 0 0.0% $0 $0 0.0%Purchasing Transactions 2 1 50.0% $15,848 $13,278 83.8%Construction contracts 0 0 0.0% $0 $0 0.0%Clerk‐Recorder‐ElectionsProfessional/Personal services contracts 18 4 22.2% $203,104 $45,71022.5%Purchasing Transactions 18 3 16.7% $90,364 $16,538 18.3%Construction contracts 0 0 0.0% $0 $0 0.0%Conservation and DevelopmentProfessional/Personal services contracts 3 3 100.0% $139,940 $139,940100.0%Purchasing Transactions 16 12 75.0% $290,323 $261,679 90.1%Construction contracts 0 0 0.0% $0 $0 0.0%County Administrator's Office ‐ Reentry & JusticeProfessional/Personal services contracts 1 1 100.0% $75,000 $75,000 100.0%Purchasing Transactions 1 0 0.0% $14,969 $0 0.0%Construction contracts 0 0 0.0% $0 $0 0.0%Page 1 of 436
ATTACHMENT ASMALL BUSINESS ENTERPRISE ‐ Program Activity reportReporting Period: July ‐ December 2018Total # of Total # of SBE percent ofTotal dollar value Total dollar value SBE percent ofALLcontractsSBEcontractsTotal # of contractsof ALL contractsof SBEcontractsTotal contracts valueCounty Administrator's Office ‐ Clerk of the BoardProfessional/Personal services contracts 0 0 0.0% $0 $0 0.0%Purchasing Transactions 2 0 0.0% $2,733 $2,733 100.0%Construction contracts 0 0 0.0% $0 $0 0.0%County Administrator's Office ‐ Communications and MediaProfessional/Personal services contracts 1 0 0.0% $74,100 $0 0.0%Purchasing Transactions 12 6 50.0% $116,492 $65,432 56.2%Construction contracts 0 0 0.0% $0 $0 0.0%County Administrator's Office ‐ Dept. of Information Technology (DoIT)Professional/Personal services contracts 1 0 0.0% $50,000 $0 0.0%Purchasing Transactions 67 21 31.3% $1,368,864 $551,818 40.3%Construction contracts 0 0 0.0% $0 $0 0.0%Dept. Child Support Services (DCSS)Professional/Personal services contracts 0 0 0.0% $0 $0 0.0%Purchasing Transactions 4 0 0.0% $83,832 $0 0.0%Construction contracts 0 0 0.0% $0 $0 0.0%County CounselProfessional/Personal services contracts 0 0 0.0% $0 $0 0.0%Purchasing Transactions 0 0 0.0% $0 $0 0.0%Construction contracts 0 0 0.0% $0 $0 0.0%District AttorneyProfessional/Personal services contracts 1 1 100.0% $25,000 $25,000 100.0%Purchasing Transactions 33 16 48.5% $611,250 $412,555 67.5%Construction contracts 0 0 0.0% $0 $0 0.0%Employment and Human ServicesProfessional/Personal services contracts 24 14 58.3% $1,237,519 $552,59444.7%Purchasing Transactions108 3936.1% $1,102,917 $450,69440.9%Construction contracts000.0%$0$00.0%Page 2 of 437
ATTACHMENT ASMALL BUSINESS ENTERPRISE ‐ Program Activity reportReporting Period: July ‐ December 2018Total # of Total # of SBE percent ofTotal dollar value Total dollar value SBE percent ofALLcontractsSBEcontractsTotal # of contractsof ALL contractsof SBEcontractsTotal contracts valueFire Protection DistrictProfessional/Personal services contracts 4 0 0.0% $177,480 $0 0.0%Purchasing Transactions 11 3 27.3% $416,962 $120,638 28.9%Construction contracts 0 0 0.0% $0 $0 0.0%Health ServicesProfessional/Personal services contracts 223 116 52.0% $12,308,533 $6,368,437 51.7%Purchasing Transactions 446 65 14.6% $10,242,016 $1,088,769 10.6%Construction contracts 0 0 0.0% $0 $0 0.0%Human ResourcesProfessional/Personal services contracts 5 5 100.0% $286,900 $286,900100.0%Purchasing Transactions 9 0 0.0% $132,340 $0 0.0%Construction contracts 0 0 0.0% $0 $0 0.0%LibraryProfessional/Personal services contracts 1 1 100.0% $68,000 $68,000 100.0%Purchasing Transactions 42 16 38.1% $174,198 $75,541 43.4%Construction contracts 0 0 0.0% $0 $0 0.0%ProbationProfessional/Personal services contracts 28 11 39.3% $229,675 $103,32345.0%Purchasing Transactions512956.9%$538,786 $307,81257.1%Construction contracts000.0%$0$00.0%Public DefenderProfessional/Personal services contracts 000.0%$0$00.0%Purchasing Transactions1119.1%$117,492 $9,3087.9%Construction contracts000.0%$0$00.0%Public WorksProfessional/Personal services contracts 7685.7%$483,500 $432,00089.3%Purchasing Transactions371 15642.0% $6,494,596 $2,558,458 39.4%Construction contracts11100.0%$66,741 $66,741100.0%Page 3 of 438
ATTACHMENT ASMALL BUSINESS ENTERPRISE ‐ Program Activity reportReporting Period: July ‐ December 2018Total # of Total # of SBE percent ofTotal dollar value Total dollar value SBE percent ofALLcontractsSBEcontractsTotal # of contractsof ALL contractsof SBEcontractsTotal contracts valueOffice of the SheriffProfessional/Personal services contracts 14 2 14.3% $2,994,384 $160,0005.3%Purchasing Transactions 174 5732.8% $5,411,506 $1,843,386 34.1%Construction contracts000.0%$0$00.0%Treasurer ‐ Tax CollectorProfessional/Personal services contracts 11100.0%$99,900 $99,00099.1%Purchasing Transactions11436.4%$154,849 $67,17043.4%Construction contracts000.0%$0$00.0%Veterans Services OfficeProfessional/Personal services contracts 000.0%$0$00.0%Purchasing Transactions000.0%$0$00.0%Construction contracts000.0%$0$00.0%Total Activity ReportedProfessional/Personal services contracts 364 19052.2%$19,993,502 $9,573,64447.9%Purchasing Transactions1442 44430.8%$27,797,254 $7,922,67828.5%Construction contracts11100.0%$66,741 $66,741100.0%Page 4 of 439