Loading...
HomeMy WebLinkAboutMinutes-04/26/2001• • April 26, 2001 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 9:00 a.m., on Thursday, April 26, 2001. Mayor John R. Rooff in the Chair. Roll Call: Anders, Jordan, Murphy, Getty, Berry. Absent: Krizek, Gronen. 115121 - Jordan/Murphy that the Agenda, as proposed, for the Special Session on Thursday, April 26, 2001, at 9:00 a.m., be accepted and approved. Ayes: Five. Absent: Krizek, Gronen. Motion carried. 115122 - Murphy/Getty that copies of the Call for the Special Session on Thursday, April 26, 2001, at 9:00 a.m. be received and placed on file. Ayes: Five. Absent: Krizek, Gronen. Motion carried. 115123 - Mayor Rooff stated that about a year ago, we had a recommendation on bids received for the reconstruction program, and there were no participation by minority contractors. Mayor Rooff stated this year he asked the council's indulgence while he tried to negotiate some kind of contract with the prime and minority contractors. Mayor Rooff reported he met with all the prime and minority contractors, and out of those meetings they came up with the following recommendations: 1) Set up Minority Business Enterprise/Women Business Enterprise (MBE/WBE) Board, 2) Have pre-bid conferences, 3) Have a mentoring program whereby the prime contractors will work with minority contractors, and 4) Make an effort to put forth information so every minority contractor would get a heads -up on construction work. Mayor Rooff stated he had several meetings with the prime contractor and minorities contractors, and the prime contractor has agreed to 4 percent minority participation on this project, but that the minority contractors wanted 5 percent participation and they did not feel they wanted to accept 4 percent participation. Mayor Rooff stated that he promised the minority contractors that he would bring the contract back to the council if we could not reach 5 percent participation. Mayor Rooff stated with all the development going on in the city we need everybody working together. Jack Fellenzer, Contract Compliance Officer, stated that the city created a MBE/WBE Contract Compliance Program in 1986 requiring contractors to make "good faith effort" in using MBE/WBE contractors on city project. Mr. Fellenzer stated that the city's program calls for "good faith effort" in meeting the city's goal and not a percentage. Mr. Fellenzer stated that the problem with the city's program is its lack of definition of goals. Mr. Fellenzer stated that we need to change the program so that we have a good solid program that will stand the test. Mr. Fellenzer commented that a WBE goal of 1 percent and MBE goal of 5 percent has been standard in city contracts for a number of years, and 0 percent to 5 percent is a flexible goal, but it is not set in stone nor clearly defined. Mr. Fellenzer stated that the city is trying to establish a more equitable program for city contracts. Mayor Rooff stated that the city has 69 percent minority participation in the city's rehab programs and asked why the street programs cannot get more minority participation. Rudy Jones, Neighborhood Coordinator, stated that the rehab program has an active list of minority contractors, and that the rehab program has more defined work and materials and probably more competitive projects. Mr. Jones stated that the number of MBE and WBE contractors is probably equitable to the rehab program. Mr. Jones stated that street construction business is more competitive than rehab, but it is possible that the number of participation can be reached. Mr. Jones stated this is not about money or a program but a lot of emotions. Mr. Jones stated that the street reconstruction program came in at 0 percent participation for MBE and 1 percent participation for WBE. Mr. Jones stated that meetings were held with the minority contractors and the prime contractor. To date we have 4 percent MBE participation on the project, but the minority contractors are not willing to accept less than 5 percent participation. Mr. Jones stated that it has been suggested that the minority contractors don't know how to bid or don't have the equipment, which is offensive because they could do the work. Councilperson Anders asked if minority contractors have their own guidelines on the number of MBE participation, and do the minority contractors who get the subcontracts employ 100 percent minorities. Mr. Jones responded that the minority contractors hire whoever has the skills. Councilperson Jordan asked if the city can guarantee 5 percent MBE participation. April 26, 2001 Page 2 Jim Walsh, City Attorney, stated that in 1977 the federal government passed a public employees law which established the MBE. Mr. Walsh stated that this must be a fair process. They set a goal but it does not have to be reached if the contractors make a "good faith effort". Mr. Walsh stated that the city adopted a MBE/WBE Contract Compliance Program in 1986, and the 5 percent MBE participation is suppose to be a reasonable number if the process is fair. When there are qualified contractors and you comply with the law, you should end up with 5 percent. Mr. Jones stated that we know by virtue of the 4 percent MBE participation suggested today that the numbers are reachable, when the contractor had 0 percent MBE participation the day of the opening of bids. Mayor Rooff stated that the minority contractors feel that they are not a part of the whole process. Mayor Rooff stated that with the re-establishment of the MBE/WBE Board, we will focus on minority participation. Councilperson Anders asked if the prime contractor should allot a percent of their bid for minority contractors. Mr. Walsh stated that the contractors are bound by the same discrimination laws as the city, and they cannot hire or fire people based on race. Mr. Walsh stated they can try as hard as they can to make sure they are doing everything they can to include minorities. Councilperson Getty asked if the city could put wording in the contracts that the city would like 5 percent MBE participation. Mr. Walsh responded that the city does that now. Mr. Jones commented that in the past when the prime contractor could not reach the 5 percent goal, they would contact him and tell him why and he would look into it, but this was not done on this project. Mayor Rooff stated that the prime contractors and minority contractors are not enemies, but they are friend who work together. Councilperson Getty stated that his main concern is how fair would rebidding the project be to Aspro, Inc., and he is also concerned if we wait and rebid the project what will happen to the reconstruction program this year. Councilperson Murphy stated that he feels minority contractors give up because they don't feel they will get the bid, and that should be addressed in the new process. Councilperson Murphy stated that if the minority contractors are more involved in the process a 5 percent participation will be attainable. Mr. Jones stated he feels the project could have had more than 0 percent minority participation. Councilperson Getty asked how do we get a percentage of minority contractors participation when they do not bid. Mr. Jones responded if the minority contractors feel they would be considered for projects, they would bid. Councilperson Berry stated that the minority contractors have been bidding for years. Councilperson Berry stated that this project started at 0 percent minority contractor participation, what changed that we now have 4 percent participation. Mr. Jones responded that people were compelled to get together. Councilperson Berry stated so apparently the process can be followed. Mayor Rooff stated that all these things will be worked out with the new board. Mayor Rooff stated that with road construction only three to five minority contractors can do the work, but they have not been getting the work. Councilperson Anders asked if it is the city's responsibility to assure the prime contractor who bids they must have 5 percent minority participation. Mr. Walsh responded that the city cannot tell the prime contractor they have to have 5 percent minority participation even if the bid is from an unqualified contractor. Councilperson Anders stated that one of the problems with minority contractors is historically only one minority contractor bid on the project. Councilperson Berry stated if the federal government can meet its goal, why can't the city. Mr. Jones stated with the Water Pollution Facilities Project, the contractor reached about 4 percent minority participation, but they made a "good faith effort". Mr. Jones stated that we have gained a greater awareness of the minority contractors' concerns and hopefully people will put forth a diligent effort in the process. Councilperson Berry stated that when you have to twist someone's arm to go from 0 percent to 4 percent minority participation, that bothers her. Councilperson Berry stated if we can go from 0 percent to 4 percent minority participation, she feels we can reach 5 percent minority participation. • • i April 26, 2001 • • Page 3 Mayor Rooff stated that the city's MBE/WBE Contract Compliance Program does not require a set amount, and we can't require or set aside a certain percentage. Mayor Rooff stated that the city's Contract Compliance Officer said Aspro, Inc. met the city's goal because they made a "good faith effort". Mayor Rooff stated that the issue is not whether the minority contractors can bid or do the job as much as they do not feel they are part of the process. Councilperson Jordan stated what concerns him the most is the minority contractors won't bid because they do not feel they will get the project anyway. Councilperson Jordan stated if the city rebids the project will we get a fair bid now that everyone knows what the other contractors bid. Bob Brustkern stated he was the low bidder for the concrete work. Mr. Brustkern stated he talked to Samuel Daniels, who bid 20 cents per square feet higher on the bid, and Mr. Daniels told him he would work for him, and that is where two percent of the minority participation came from. Mr. Brustkern stated if the city says it needs 5 percent minority participation, and he is booted out he will take the city to court because that is not fair to him. Mr. Brustkern stated he doesn't think he should be penalized because of minority participation. Councilperson Berry stated that she does not feel it would be fair if Mr. Brustkern did not get the work. Councilperson Berry stated that she does not care what prime contractors are doing for projects outside of city projects, but she believes they should have 5 percent minority participation in city contracts or even reflect the percentage of minorities in the city. Mr. Walsh stated that the purpose of the law is to make sure what we have been discussing happens. Mr. Walsh stated that there is a lot of informality to encourage the prime contractors to reach out to the minority contractors, not to make them get more than the low bid. Mr. Walsh stated in this contract they just did it informally and did not put it on paper. Mr. Walsh stated that the city should press ahead and work together and try to make the process work and have fair participation. Mr. Jones stated that what some contractor won't make on price they will make on volume. Councilperson Jordan stated he is torn, but asked if it would be fair to rebid the project when the bids are already public. Councilperson Jordan stated this process woke up a lot of people. Councilperson Jordan stated this is the prime time for construction work, and he does not want to jeopardize this project. Councilperson Jordan stated that he feels the city should keep the process going and go forward with Aspro, Inc. Eric Thorson, City Engineer, stated that the city has already lost four or five weeks of the season, and if we rebid this project we could lose two more weeks depending on the weather. Mr. Thorson stated this is not a complicated project, and the city needs to get Sears Street completed for Target before their grand opening. Councilperson Murphy stated he is not necessarily in favor of rebidding the project, but he does not want the process to stop. Councilperson Berry stated she does not have a problem with awarding the contract but if we can go from 0 percent to 4 percent minority participation, she does not feel an addition $30,000 would take food off of any table. Councilperson Getty stated he agrees that 5 percent minority participation would be good, but that 4 percent is better than 0 percent. Councilperson Getty stated that from now one we need to let everyone know this is what the city is looking for. Councilperson Anders stated that because of the late date, he feels the city needs to go ahead with the reconstruction program, and he does not want to rebid the project because we now know what the contractors bid on the project. Councilperson Anders stated he does not agree with 4 percent participation, but the fact that we went from 0 percent to 4 percent minority participation is a start. Councilperson Anders stated we need to continue discussions and mentoring, but he feels the city should go ahead with this project. Jordan/Murphy that "Resolution approving award of contract in the amount of $2,857,793.18 to Aspro, Inc., & Subsidiaries, with 4% MBE participation, in conjunction with F.Y. 2001 Street Reconstruction Program, Contract No. 630", be adopted. Ayes: Four. Nays: Berry. Absent: Krizek, Gronen. Resolution adopted and upon approval by Mayor assigned No. 2001-178. April 26, 2001 Page 4 ADJOURNMENT 115124 - Jordan/Anders that the Council adjourn at 10:02 a.m. Ayes: Five. Absent: Krizek, Gronen. Motion carried. Mayor Rooff reconvened the meeting at 10:03 a.m. Roll Call: Anders, Jordan, Murphy, Getty, Berry. Absent: Krizek, Gronen. 115125 - Anders/Jordan that the council continue the meeting regarding the F.Y. 2001 Street Reconstruction Program, Contract No. 630. Ayes: Five. Absent: Krizek, Gronen. Motion carried. 115126 - Jordan/Murphy that contracts, bonds and certificates of insurance in the amount of $2,857,793.18 from Aspro, Inc., & Subsidiaries, in the conjunction with F.Y. 2001 Street Reconstruction Program, Contract No. 630, be received, placed on file and "Resolution approving said documents", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Four. Nays: Berry. Absent: Krizek, Gronen. Resolution adopted and upon approval by Mayor assigned No. 2001-179. 115127 - Getty/Jordan that the Council adjourn at 10:06 a.m. Ayes: Five. Absent: Krizek, Gronen. Motion carried. Nancy Eckert City Clerk