Agenda Notes:
Agenda Item #14 – Davidson Street Bus Facility Renovation Project: Disadvantaged Business Enterprise Program (DBE)
Resource:
Arlanda Rouse, CATS, 704-432-2566, arouse@ci.charlotte.nc.us
Council will be considering the award of a construction contract for the Davidson Street Bus Facility Renovation project (Davidson Street Project) at the September 14 business meeting. The agenda packet includes information on how the CATS DBE program was administered on this project. This Council-Manager Memo provides further background information regarding the Davidson Street Project procurement process and the federal DBE requirements. CATS is fully committed to fulfilling its federal DBE obligations and to ensuring that there is a level playing field for all contractors competing for City projects.
A disadvantaged business enterprise (DBE) must meet the following guidelines in order to receive certification:
- 51% own and controlled by someone from a protected class (Woman, Hispanic, African-American, etc…)
- Owner's personal net worth cannot exceed $750,000
- Business' average annual gross receipts cannot exceed $22.41 million
- Business cannot exceed Small Business Administration (SBA) size standards
The Davidson Street Project is a renovation project as opposed to a new construction project. It is subject to federal DBE requirements and guidelines which require that the project have an established DBE participation goal. Federal regulations (specifically 49 CFR Part 26) mandate the methodology for setting the DBE project goal. The methodology is a two-part process that measures the relative availability of DBEs found in the North Carolina Unified Certification Program (UCP) database which are able to perform the type of work that is anticipated on the contract. In this case, the DBE project goal was set at 11% by CATS using the above methodology. The goal was reviewed and validated by the Federal Transit Administration (FTA).
In order to ensure a level playing field, CATS gives notice of bidding opportunities to the DBE business community. For the Davidson Street Project, CATS notified the DBE business community of the bidding opportunity through the following means:
- Direct contact with 291 prospective DBEs listed in the UCP database as engaging in relevant trades in this region;
- Advertisements in local newspapers (Charlotte Observer and Charlotte Post);
- Direct contact with two local minority contractor associations;
- Posting of the project on the State of North Carolina IPS website;
- Direct contact with Carolinas Association of General Contractors.
Once bids are opened, the federal DBE bid review process begins with an examination of the documentation of DBE participation submitted with each bid. Bidders list the amount of anticipated DBE participation on a form that is submitted as part of the bid documents. This form lists the prospective DBE contractors that the bidder intends to use on the project, as well as the amount of dollars the bidder plans to spend with each DBE contractor. The listed DBE contractors are then checked against the UCP database to ensure that each company listed is, in fact, a registered DBE. Each verified DBE contractor is then contacted by CATS to confirm the bid information supplied by the bidder. Based upon the information received from the bidders and the UCP database, the verified percentage of DBE participation is then calculated for each bidder and compared to the DBE project goal.
If the verified anticipated DBE participation is equal to or greater than the DBE project goal, the bid DBE submission is approved. If the DBE participation is less than the project goal, the bidder is required to submit documentation of its good faith efforts. These efforts must show that the bidder made a concerted and substantial effort to reach the DBE project goal.
Initial Davidson Street Project Review: The initial DBE review of the bids from the Davidson Street Project was conducted on August 5, 2009. The review of the bids showed that none of the nine (9) bidders were able to meet the DBE goal for the project. The level of verified anticipated DBE participation for all bidders ranged from 0% to 0.473%. The documentation of good faith efforts submitted by the bidders was then assessed and was determined to be inadequate. Because all bidders apparently failed to meet DBE requirements, CATS considered the possibility of rebidding the project entirely; however, 49 CFR Part 26.53 provides that the apparent successful bidder is entitled to an administrative review if their bid is found to be nonresponsive as a result of the DBE review.
Clancy & Theys, as the apparent successful bidder for the project, was contacted and given notice of the above information. Clancy & Theys then asserted its right to an administrative review. A DBE/SBO specialist with City Engineering & Property Management served as the administrative review officer and conducted a review on August 19, 2009. During the review, Clancy & Theys presented additional evidence that supported their good faith efforts conducted prior to bid opening. In addition, they provided a reasonable explanation for why fluctuating market conditions and the nature of the project prevented them from being able to meet the DBE project goal.
Their documentation identified that the services offered by the DBE construction community are currently more focused on new building and highway construction rather than building renovation projects. Further research by staff, as well as information provided by other bidders, confirmed Clancy & Theys observations. CATS has noted this trend in DBE contracting and will take this factor into account in setting DBE goals for future projects.
Clancy & Theys presented documentation of the following steps they took to encourage DBE participation in the Davidson Street Project:
- Made contact with 122 DBEs that are listed on the UCP as willing to work in Mecklenburg County;
- Attended Pre-Bid meeting (a standard industry practice that affords prime contractors an opportunity to meet with DBE sub-contractors);
- Divided work into economically feasible units more open to DBE participation;
- Made plans, specifications, and requirements of contract available to prospective subcontractors in a timely manner and free of charge;
- Negotiated in good faith with interested DBE sub-contractors, actually utilizing all DBE subcontractors that submitted bids;
- Offered assistance to interested DBEs in obtaining lines of credit or insurance;
- Offered assistance to DBEs in obtaining necessary equipment, supplies, materials, or services;
- Worked with twelve (12) statewide minority business organizations to contact and recruit DBE participation.
The above steps are specifically noted in federal guidance as appropriate business methods and are used as examples of good faith efforts. The administrative review verified that Clancy & Theys anticipated 2.51% DBE participation from the following firms:
- Major Contractors- electrical contractor-1.652% ($130,750)
- Mekki Modular-flooring-0.490% ($38,765)
- All Points Trucking-hauling-0.243% (19,200)
- Concrete Pumping of Concord-concrete-0.126% (10,000)
The administrative review also verified the extensive good faith efforts (noted above) that Clancy & Theys made to meet the goal and obtain DBE participation. After reviewing all the information available, the administrative review officer found that Clancy & Theys satisfied the federal DBE requirements. Based upon the finding of the administrative review officer and a full review of the entire bid, Clancy & Theys has been determined to be the lowest responsive bidder. Therefore, Clancy & Theys are now being recommended for award of the contract.
Information Items:
September11 Metro Division Office Move
Resource:
Chief Rodney Monroe, CMPD, 704-336-2337, rmonroe@cmpd.org
On Friday September 11, CMPD's Metro Division will move into its new office at 1118 Beatties Ford Road. The move will take place on Friday morning with a goal of having the office operational in time for second shift roll call on Friday afternoon. With the Metro Division move, all 13 patrol division offices will now be located in the communities they serve.
A formal grand opening for the new Metro Division office will be held on Wednesday, September 23 from 10:00 a.m. to noon. Council will be receiving invitations and more details within the next week.
H1N1 Pandemic Preparedness for City Operations and Staff
Resources:
Dan Pliszka, Risk Management, 704-336-4142, dpliszka@ci.charlotte.nc.us
Cheryl Brown, Human Resources, 704-336-5703, clbrown@ci.charlotte.nc.us
Risk Management and Human Resources are working closely with our Key Business Units (KBUs) to prepare for a possible H1N1 pandemic. City staff is in frequent contact with the Mecklenburg County Health Department to monitor the latest flu activity and guidelines passed down from the Centers for Disease Control (CDC). This information is provided to City KBUs and will be included in a pandemic update presented to City Council at the workshop on October 5, 2009.
While the mortality rate associated with H1N1 does not appear to be any greater than the seasonal flu, the rate at which the virus is able to spread does present some concerns. Experts are advising organizations to plan for a 40% reduction in staff for several weeks to months as employees and their families deal with the effects of this illness.
A 40% reduction in staff for a sustained period of time could have a significant impact on the City's daily operation. In preparation for this event, KBUs have been required to submit a summary of their plan for continued operation during a pandemic event. The response from our KBUs indicates that they have considered the potential severity of this impact and have implemented plans to adjust staffing needs. The following provides a summary of events relating to the H1N1 virus and additional steps the City of Charlotte has taken to prepare for a pandemic event.
1. The White House has identified H1N1has as a "serious health threat to the United States". As of September 3, 2009, the CDC reported 593 deaths and 9,079 hospitalizations associated with H1N1in the United States.
2. HR has prepared guidelines for managers to follow when addressing employees who have an influenza illness or symptoms. These guidelines are intended to be a resource for how supervisors and managers are expected to manage the workplace in the event of an influenza outbreak.
3. HR will provide up-to-date information concerning H1N1 to our employees through the Wellness Works program and CNet.
4. The City of Charlotte has identified points of distribution (PODs) and KBU staff to dispense medications (Tamiflu) from the Strategic National Stockpile to City employees. The direction to activate the PODs would come from the CDC in conjunction with the Health Department.
5. The H1N1 vaccine is expected to start arriving in mid October. The vaccine will consist of two shots offered three weeks apart. The vaccine will initially be available only to those persons who are identified as a priority by the CDC.
6. Emergency service workers (police and fire) are currently identified as a priority group by the CDC for receiving the H1N1 vaccine. Risk Management is working with medical service providers to administer the vaccine to police and fire employees when it becomes available.
7. The H1N1 vaccine does not provide protection from the seasonal flu. The CDC is advising the public to receive the seasonal flu shot in addition to the H1N1 vaccine.
8. The City of Charlotte will be offering free seasonal flu shots at local MinuteClinic locations October 1, 2009 – March 31, 2010. All employees and dependents (18 months and older) enrolled in a City of Charlotte Medical Plan are eligible for a free seasonal flu shot. Multiple onsite flu shot clinics are also being held throughout October.
Information concerning the H1N1 virus and guidance from the CDC and Health Department are updated frequently. Risk Management and HR will continue working with these organizations to gather the latest information and provide it to our KBUs.
NASCAR Hall of Fame Announces Restaurant Partner
Resource:
Kim McMillan, Corporate Communications, 704-336-2643, kmcmillan@ci.charlotte.nc.us
The NASCAR Hall of Fame announced today that Buffalo Wild Wings® will be the exclusive restaurant partner for the new NASCAR Hall of Fame in Charlotte, N.C. Buffalo Wild Wings, a national sports-themed restaurant company founded in 1982 and headquartered in Minneapolis, Minnesota, will open the 8,400-square-foot restaurant in the Spring of 2010. The 10-year agreement has multiple renewal options. Buffalo Wild Wings currently operates more than 600 restaurants across the country. The NASCAR Hall of Fame will celebrate its grand opening May 11, 2010. Buffalo Wild Wings will be located inside the 150,000-square-foot attraction on the corner of East Martin Luther King Blvd. and Brevard Street. A press release announcing the partnership is attached.
Certificate of Achievement for Excellence in Financial Reporting
Resource:
Teresa Smith, Finance, 704-336-7906, tsmith@ci.charlotte.nc.us
The Certificate of Achievement for Excellence in Financial Reporting has been awarded to the City of Charlotte by the Government Finance Officers Association of the United States and Canada for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2008. This was the twenty-fourth consecutive year that the City has achieved this prestigious award.
The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. The CAFR has been judged by an impartial panel to meet the high standards of the program including demonstrating a constructive "spirit of full disclosure" to clearly communicate its financial story and motivate potential users and user groups to read the CAFR. Finance is currently preparing the CAFR for fiscal year 2009 and it will be presented to Council once it has been completed including the review by the external auditors.
