DATE: August 16, 2016
TIME: 1:00- 2:30pm
LOCATION: District 4, Executive Conference Room-15-240, 111 Grand Ave., Oakland, CA
D4 CALTRANS STAFF:
Premjit Rai, DDD-Administration
Bob Finney, DDD-Construction
Deo Blas, Consultant Services
George Crosby, Small Business Prog.
Romy Fuentes, Consultant Services
Damien Harris, Business Mgmt.
Osayahde Nesbitt, Small Business
Prog.
Stan Ng, Maintenance
Ray Pang, Construction
HQ/AGENCY STAFF:
Damon Dorn, OBEO / MEMBERS (Present/Absent)
Arvin Chaudhary (P) Diana LaCome (P) Eddy Lau (P) Frederick Jordan (P) Paul Guerrero (P) Peter Ramirez (A) / REPRESENTING
ACEC CA NCA AAAE SFAACC
La Raza Roundtable SDVOC
ALTERNATES
(Present/Absent) Anthony DeVenuta (A) Dr. Caesar Churchwell (A) Leslie Sakai (A)
Miguel Barrigan (A) Raewyn Butcher (A) Victor Garza (A) / REPRESENTING
SDVOC SFAACC AAAE NCA ACEC CA
La Raza Roundtable
GUESTS:
Dr. Ellen Lee (P)
M.C. YU (P) / REPRESENTING
AAAE
AAAE
District 4 Deputy District Director, Premjit Rai, welcomed everyone to the August meeting. He informed the Council that District Director Bijan Sartipi and Chief Deputy Director Dan McElhinney could not attend because of respective obligations in Sacramento and San Jose. The attendees introduced themselves, and the meeting proceeded.
June 21, 2016 Minutes:
Motion: Mr. Paul Guerrero Second: Ms. Diana LaCome and Mr. Eddy Lau Opposed: None. Approved by consensus.
Construction Update:
Mr. Rai introduced Mr. Ray Pang who presented the Construction report. Mr. Pang reported there were 6 Advertised and Upcoming Projects, totaling approximately $60M. He noted that contract #3G59U1 was a large project located in Alameda for approximately $56M. He also stated the District 4 Small Business Program team had hosted a Mandatory Pre-Bid Outreach for this project on July 19, 2016. He informed the Council that contract #s 3G0701 and 2594A1 were newly added and waiting for funding, so the advertisement dates were to be determined (TBD). Mr. Pang emphasized that each of these contracts contained DBE goals, ranging from 5% to 11%. Referring to the Projects Bid Opened and Currently Awaiting Award section, he reported there were 5 contracts valued at an engineer’s estimate of $5.7M. He said the combined low-bid totaled at about $6.5M. Mr. Pang explained that contract # 1SS591 went to the second bidder, Ghilotti Brothers’ Construction whose commitment exceeded the DVBE goal of 5% at 5.56%. Referring to the Projects Awarded section, there were 2 projects since the last report, with an engineer’s estimate of $6.3.M. The bids came very close at $6.2.M. He noted that the DBE goal for contract # 0G7201 was 19%, and Bay Cities Pavement & Grading’s commitment was slightly, below the goal at 17.9%. However, HQ determined the Good Faith Effort (GFE) was satisfactory and awarded the bid. The second project, contract # 4G5511, had a contract goal of 13% and was matched by the low bidder, St. Francis Electric. Mr. Pang then referred to the 12 Projects Ready to List but Not Funded for Advertisement Yet. He stated the combined total of the projects were approximately $28M. For informational purposes, Mr. Pang called the Council’s attention to the second packet, Awarded Projects in District 4 from January 1, 2013 to August 8, 2016, and then concluded his report. Mr. Rai thanked Mr. Pang for his report.
Maintenance Update:
Mr. Rai introduced Mr. Stan Ng who provided the Maintenance report. Mr. Ng reported that there were 29 contracts on the Director’s Order Force Account FY 15/16 that totaled approximately
$39.3M. Twenty-seven percent were awarded to Small Business Enterprises (SBEs) and 73% to Non- SBE’s. Mr. Ng informed the Council that the yellow highlights were updates since the last meeting.
Hence, item # 25 had an update to its information. Referring to the District Director’s Order Force Account FY 15/16, he reported that there were 21 contracts which totaled over $5M. He said 64% was awarded to SBEs and 36% to Non-SBEs. Mr. Ng referred to the District 4 SBE Utilization Director’s Orders, FA/ELB bar chart which show the trend of SBE utilization for Fiscal Year (FY) 2012/13 to 2015/16. Next, he referred to the D4 SBE Utilization District Director’s Orders bar chart which reflected the trend for the same respective years. Moving forward, Mr. Ng discussed the Director’s Orders Force Account FY 16/17 and said there were six contracts, totaling approximately $12.8M. Forty-four percent were awarded to SBE’s, 41% to Non-SBE’s, and 15% were not yet awarded. He called attention to the tabled charts on the following page and said the six contracts at the top were for FY 2016/17 Director’s Order- Force Account. There were only two contracts for the FY 2016/17 District Director’s Orders- Force Account at the time of the report. Ms. LaCome asked if the funding for contract # 2K9304 was coming from a special emergency account. Mr. Ng answered that it was coming from the District’s regular Minor B allocation. Mr. Ng concluded his presentation, and Mr. Rai thanked him for his report.
Design Update:
Mr. Rai provided the Design Report update to the Council. Referring to the Proposed Minor B Projects for Small Business, FY 16/17, he reported that there were three contracts, totaling $720K. Each was scheduled to go to the Division of Procurement and Contracts (DPAC) in February 2017. Referring to the Proposed Projects under $291K Not Funded from Minor B Program, he noted that there was one project scheduled to go to DPAC in November 2016. Mr. Rai concluded the report and proceeded to the next update.
A&E Update:
Mr. Rai introduced Mr. Romy Fuentes to provide the A&E Report. Mr. Fuentes highlighted that there were currently four contracts in the Recently Executed A&E Contracts section. Contract # 04A4952 was the most recently added project since the last report. He reported that the District awarded contract # 04A4952 to Alta Vista who came in with a 12% DBE goal. Referring to the Recently Executed Non A&E Contracts, he said there were three contracts. He said the District awarded contract # 04A4902, which had been unsuccessfully advertised twice, to the Professional Tree Care Company at $930K. This was done through an Open-Bid process. Mr. Fuentes reported that there were 10 Upcoming New-A&E Contracts. Per the Council’s prior request, he noted that the name of the incumbents were included within the contract description column in parentheses. For the Upcoming Non-A&E Contracts, he reported five multiple-award contracts, ranging from $4.2M to $8M. He highlighted that each of the multi-award contracts had exceeded their respective goals through one or more of their stakeholders, as outlined in the Contract Goal column. Referring to the upcoming new A&E contracts section, Ms. Diana LaCome asked why there were so many on-call contracts for the Bay Bridge, and what percentage of work was left. Mr. Fuentes answered that there was still much demolition work and implosions to be done as well as environmental risks. Mr. Bob Finney added that there were about 3 more years of work left, and almost 42% was done. Referring to contract# 04-NEW503–16, Mr. Arvin Chaudhary asked if it was correct that the contract was not a replacement contract, but instead a new contract description. Mr. Fuentes affirmed the contract was not a replacement contract. He said, whenever possible, the District tried to consolidate projects with similar work items into a single contract. Mr. Chaudhary suggested that the District clarify the information, so that other contractors do not get the impression the respective contract was a replacement for the others. Mr. Finney concurred. Mr. Fred Jordan asked why the contracts could not be unbundled to allow them to be reachable to small business primes. Mr. Rai explained that the contracts were not bundled but that the geographical A & E needs have changed, requiring less contracts. Mr. Rai thanked Mr. Fuentes for his report.
OBEO Update
Mr. Rai introduced Mr. Damon Dorn to report the OBEO Update. Ms. Dorn reported that in fiscal year 2015-16, the OBEO’s Training and Outreach Branch introduced and conducted training for prime contractors in all 12 Caltrans districts. More than 125 prime contractors attended these sessions. He said it was OBEO’s plan to conduct the prime contractor training again this fiscal year. In addition to the prime contractor training, he said OBEO planned to continue offering DBE certification workshops throughout the state, as well as introduce a subcontractor training module in 2017. Mr. Dorn reported that on July 6, 2016, OBEO staff attended the Department of General Services’ (DGS) SB/DVBE Advocates Workshop. He said OBEO would be participating in the GO-Biz’ “Grow CA Business” Summit on August 17, 2016 and District 4’s Prime/DBE Cooperative Workshop on August 25, 2016, at the District 4 office. Mr. Dorn would be a guest speaker at this event, representing OBEO. He reported that the OBEO was attempting to expand Caltrans’ Mentor-Protégé Program for construction contractors to other districts besides District 4, which was currently the only Caltrans-approved program in place. Mr. Dorn acknowledged Mr. Bonny Nyaga, District 4’s Mentor-Protégé program lead, for his efforts to facilitate training and development opportunities for contractors. Mr. Dorn provided the OBEO and DPAC’s achievements for DBE, SB, and DVBE’s, referencing the handout folder handout DISTRICT 4 SBC – August 16, 2016
OBEO Talking Points. Mr. Paul Guerrero recommended that the OBEO provide training on how to bid Caltrans projects for the SB, DVBE, and DBE community. Mr. Jordan asked if the ethnicity of individuals awarded federal contract was available. Mr. Eddy Lau mentioned that Mr. Ramon Carlos had provided this information to the Statewide Council in the past. Mr. Rai asked Mr. Crosby to see if the information was available again, and if so, provide it to the Council. Mr. Rai thanked Mr. Dorn for his report.
District 4 Small Business Update:
Mr. Rai introduced Mr. George Crosby to report the Small Business Update. Mr. Crosby reported that the SBP team hosted a Mandatory Pre-Bid Outreach for project #04-3G59U4 at the Caltrans Pleasanton Office. The project proposed to resurface and restore the existing pavement on the mainline and ramps in the Interstates 580 & 205, Altamont area. It would also improve traffic safety and alleviate the congestion on the mainline. There were 26 attendees, including primes. He said on July 27th, the SBP team hosted a Quarterly Small Business Outreach for SB, DVBE, and DBEs at the District Office-Auditorium. The event provided a Four-month look ahead of D4 Construction and A & E projects. In addition to their usual presenters, Mr. Ali Banani was a guest speaker who discussed the upcoming A & E projects. The presenters were well received, and there were 18 attendees. Referring to Upcoming Events, Mr. Crosby informed the Council that on August 25, 2016, the team would host its fifth PDC workshop at the District-Parkview Room. The workshop topic would be DBE regulations, GFE requirements, prime, and DBE experience when submitting GFE documents. He said the guest presenters would be representatives from OBEO, Flatiron Construction (Prime), and Net Electric (DBE). Mr. Crosby concluded, and Mr. Rai thanked him for his report.
Mr. Rai reported on the open Action Items. Mr. Rai referred to Action Item #2016-12-Assignee- Mr. Pang. Mr. Lau acknowledge receipt of the information that Mr. Pang and Mr. Osayahde
Nesbitt provided regarding the action item. Mr. Pang reported that American Civil Constructors West Coast, LLC submitted a low bid of $1,451,214. The DBE contractors listed were ABSL construction for $78,918 and Vintage Paving for $372,840, totaling $451,758 or 31.1%. [Closed by consensus]. Referring to Action Item #2016-13-Assignee- Romy Fuentes, Mr. Rai reintroduced Mr. Fuentes. Mr. Fuentes stated that of the 47 contracts on the District 4 Quarterly DBE Utilization Report, there were only three A&E contracts near completion that have no DBE achievement. Mr. Fuentes provided the Council a handout for the action item, detailing the explanations for why the three contracts did not have DBE achievements. The main reason was: these were on call contracts and lot of work didn’t materialize. Mr. Eddy Lau recommended the prime make efforts to address utilization long before substantial completion. Mr. Fuentes stated the district had communicated with the primes and notified them to utilize DBE firms whenever possible. The Council found the explanations satisfactory [Closed by consensus].
1. Mr. Rai opened the floor for new business topics. Mr. Lau reintroduced Ms. Ellen Lee, acknowledging her and Mr. M.C. Yu as Board of Director members of the Asian American Architects and Engineers (AAAE) organization to which Mr. Lau represents on the Council.
2. Mr. Paul Guerrero informed the Council that the new Senate Bill SB1176 increased the small business threshold to $25M, which could have a positive impact on the State’s ability to perform Small Business set-asides.
Mr. Rai adjourned August meeting and said the next meeting would be on Tuesday, October 18th, 2016.
District 4 Small Business Council Action Items as of August 16, 2016:
No. / Starting Date / Assignee / Item Description (Originator)# 2016-12
Closed / 6-21-16 / Ray Pang / Mr. Eddy Lau asked for the list of firms that make up the 31% on contract 2A3311.
#2016-13
Closed / 6-21-16 / Deo Blas / Mr. Lau and Mr. Chaudhary requested to have the contract manager look into contracts that are near completion and have no DBE achievement.
The D4 SBC meets every other month in the Executive Conference Room 15-240, 111 Grand Avenue, Oakland, CA 94612. Meetings begin at 1pm and run until about 2:30pm.
2016 D4 SBC Upcoming Meeting ScheduleOctober 18th December 20th