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HomeMy WebLinkAbout04.25.2002April 25, 2002 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 8:30 a.m., on Thursday, April 25, 2002. Mayor John R. Rooff in the Chair. Roll Call: Berry, Welper, Greenwood, Clark, Jordan, Hurley, Getty was present by telephone. 116803 - Berry/Clark that the Agenda, as proposed, for the Special Session on Thursday, April 25, 2002, at 8:30 a.m., be accepted and approved. Ayes: Six. Absent: Jordan. Motion carried. Jordan now present at 8:31 a.m. 116804 - Jordan/Clark that copies of the Call be received and placed on file. 'Ayes: Seven. Motion carried. 116805 - Mayor Rooff stated that since the last council meeting on April 15, 2002, he spoke with Bill Whitcomb with the U.S. Department of Justice in Kansas City, Missouri and asked Jack Fellenzer, Contract Compliance Officer, to return to Aspro and review bids received from minority contractors line item by line item. Milt Dakovich, Vice President of Aspro, was willing to open his bid documents, and Mr. Fellenzer and Dennis Gentz, Assistant City Engineer, reviewed the bids line item by line item. Mayor Rooff stated that a letter was sent to Mr. Whitcomb asking him to review the following items: 1. City of Waterloo 1986 Contract Compliance Program currently in use. 2. Letters from and to the Federal Highway Administration regarding the city's program. 3. Letters from and to the Iowa DOT regarding recommended changes to our existing program. 4. The Iowa Targeted Small Business Plan. 5. Press Release from June 15, 2001 outlining recent contracting problems and remediation. 6. Various documents that are normally included in a typical city construction contract. Mayor Rooff stated that meetings have been scheduled with the Mayor's Minority Contractors Committee over the past 12 months to discuss a number of issues regarding contracting procedures. We asked Mr. Whitcomb to review and make specific recommendations concerning the city's overall program and specifically address the following issues: Should the intent of the city's Contract Compliance Program be to allow equal access to the bid on city funded projects or should a percentage of the work be awarded to minority subcontractors regardless of the price? In other words, is the prime contractor obligated to accept something other than a low bid quote from the subcontractors? Are you able to identify any potential discriminatory implications to the city's current policy and can goals legally be tied to the percentage of minorities in the community? Mayor Rooff stated the letter was mailed to Mr. Whitcomb on April 17, 2002, but the city has not heard back from him. Councilperson Berry stated she thought the purpose of delaying the contract was to wait to hear from the U.S. Department of Justice and now we are here to make a decisions. Councilperson Jordan stated he would like to move forward with the bid from Aspro. Councilperson Jordan stated he believes Mr. Dakovich has done everything the city asked of him, he has been fair and is the low bidder on this project. The city has already lost a month on this project and our season is short. Councilperson Jordan stated he feels the city needs to make a decision, and that we have done everything possible to make this a fair process. Councilperson Jordan stated he hopes the council does not table this item one more time. Councilperson Berry stated she agrees the city needs to move forward, but she doesn't see how we can. This is not about Aspro, but about a program that doesn't work. We are trying to resolve that and one way is to wait to hear from the U.S. Department of Justice. Councilperson Berry stated we need to be just a little more patient and wait until the city hears from the U.S. Department of Justice. Councilperson Berry stated she is not saying that Aspro did not do everything, but she would like an answer to what are the steps for a "good faith effort." April 25, 2002 Page 2 Jack Fellenzer, Contract Compliance Officer, stated the city has been trying to resolve this issue for the past 12 months. Mr. Fellenzer stated that 1986 MBE/WBE Contract Compliance Program outlines "good faith effort" is to make sure there are no exclusion of any contractor. Mr. Fellenzer stated some contractors feel there is not enough teeth in the program. Mayor Rooff asked should the city be more specific such as tying the "good faith effort" to the percentage of minorities in the community. Mr. Fellenzer responded the city just needs to define the steps for a "good faith effort." Mayor Rooff reported the city has reviewed our program with HUD, Federal Highway Administration, Iowa Department of Transportation, U.S. Department of Labor, and we are waiting to hear from the U.S. Department of Justice. Mayor Rooff stated Waterloo is the only city in the state that has a program like this, and we also have the largest percent of African -Americans. Mr. Fellenzer stated the city should try to come up with a customized program for Waterloo. Mr. Fellenzer stated he contacted a lot of cities and groups. We tried to use the state's Targeted Small Business Program, which has hundreds of contractors, but with the city's lower number of contractors, we just don't have the number of contractors here to use that program. Councilperson Clark stated if the city was going to wait to settle the minority program, we should not have held the hearing and opened the bids. Councilperson Clark stated he feels we need to move ahead and award the contract and move forward today. Councilperson Hurley stated he agrees with Councilpersons Jordan and Clark. This is not very tasty, especially to minority contractors and the council because we still have a dilemma. Councilperson Hurley stated he is looking at the greater good of the citizens as we won't be able to have a reconstruction program this year if we wait. Councilperson Hurley stated, hopefully, we will have a better program for next year. Councilperson Welper stated he voted to table this issue because of the question on the numbers being moved around. Councilperson Welper stated that Mr. Dakovich has shared the numbers and clearly he has done everything. Councilperson Welper stated he is in favor of moving forward. Councilperson Greenwood stated he voted no on April 15, 2002 but he talked with Mr. Dakovich and Councilperson Jordan, and he just wanted to make sure a "good faith effort" was followed. Councilperson Greenwood stated the 1986 MBE/WBE Contract Compliance Program is our tool, and it has been followed. Mr. Dakovich has been very open and showed his bid package. Mr. Dakovich wants W. C. Stokes to do the work he bid on. Councilperson Greenwood stated he feels the city needs to move forward on this project. Clark/Jordan that communication from City Engineer transmitting recommendation of award of contract in the amount of $2,833,571.14 to Aspro, Inc. and Subsidiaries of Waterloo, Iowa in conjunction with F.Y. 2002 Street Reconstruction Program, Contract No. 646, be received, placed on file and "Resolution approving award of said contract", be adopted. Prior to a vote on the above motion, the following comments were heard. Councilperson Berry asked for the percentage of participation by minority contractors and women contractors for this project. Mr. Fellenzer responded that depends on whether Mr. Stokes will accept the items he bid on. Mr. Stokes responded he will not accept those items. Mr. Fellenzer stated without Mr. Stokes bid, the percentage of MBE participation drops from 3.7 percent to 0.3 percent and the WBE participation is 0.5 percent. Councilperson Berry responded and the council feels this is a just decision. Councilperson Berry stated for the city council to accept this program says we are cooperating with what is not ethical or just. Councilperson Berry stated she has nothing against Aspro when the fact is the city has a responsibility to its citizens. Martin Culpepper, 1731 Cottage Street and President of Cedar Valley Minority Contractors Association, stated he has nothing against Mr. Dakovich. Mr. Culpepper stated Mayor Rooff should exclude himself from discussion about this because of his company. Mr. Culpepper asked how the council could make a decision when there is no printed definition of a "good faith effort." Mr. Culpepper stated the city needs to put something in writing so everyone can understand what is the definition of a "good faith effort." Mr. Fellenzer does not have one in writing, and the contractors need to know. Mr. Culpepper stated this is totally unacceptable and the council has not done their job. We had the same situation last year. Mr. Culpepper stated it is the council's job J April 25, 2002 • • Page 3 to make a program work for Mr. Fellenzer. Mr. Culpepper stated he always questions the council's sincerity when it comes to minorities in this community. Mr. Culpepper stated the minorities try to do things in good faith. For the city to say 0.3 percent minority participation is good and they are going to move ahead is unacceptable. Mr. Culpepper stated for the minorities to continually be ignored on every issues whether its banking, housing, the problem is not with them. For the council to say they are going to move ahead for the second time around on the same problem, they are leaving 15 percent of the city's population out of their decision. Milt Dakovich, Vice President of Aspro, stated he had 3.7 percent minority participation when he turned in his bid. Mr. Dakovich stated Aspro is trying to do their part in good faith. Mr. Dakovich stated this year was the greatest minority participation at one time. Mr. Dakovich stated after bids were let, the Pauline Company withdrew their bids and that made the numbers look all skewered. Mr. Dakovich stated he still wants the Pauline Company and LeRoy Harrington to do the work they bid. Mr. Dakovich asked what is he suppose to do when they withdraw after the fact. Mr. Dakovich stated the letters were sent out, Aspro bids by line items and specifies which items subcontractors can bid, they take in the bids and review them. Mr. Dakovich stated some people choose to tie certain items, and Terry Phillips did that, and they can do that or not. Mr. Dakovich stated W.C. Stokes turned in four bid items and Aspro used the two lowest items, as Mr. Stokes did not say they were tied. Peterson Contractors did the same thing. Mr. Dakovich stated they do it that way all the time and take the lowest bids. Councilperson Berry asked Mr. Dakovich when he pulls out the bids does he say to the subcontractor these are the items he is going to use and will present to the city council. Mr. Dakovich responded it is not generally done that way. The bids should be turned in self-explanatory, and if the prime has questions they call them. Reverend Jay Burt, 520 Cutler Street, stated that what is happening has not changed in 30 years as to how minorities are treated, and that equality is the issue. Reverend Burt stated the council says they have done the best they could, but obviously something has been done wrong. Reverend Burt stated for the council to proceed is a slap to minorities, that the 15 percent African - American population is being stepped on again. Reverend Burt stated that the African -Americans feel they are being cheated, getting crumbs from the table. Reverend Burt stated minorities don't want set -asides or to be treated differently when submitting bids. Reverend Burt stated that he can guarantee if this goes through, next year we will have the same problem and will have to do it over and over. Reverend Burt stated the city needs to take a look at this and decide to do it on an equal basis. The council needs to take a closer look at this and help people trying to grow and prosper and who should not be held down by government or private business. This is suppose to be the land of the free. Reverend Burt stated the city council needs to recognize what is important for the whole city. Reverend Burt stated we need to come together as a city and say we won't do this anymore and include everyone and let everyone have an opportunity. Terry Phillips, 426 Beech Street, stated this is a sad day and a dark day for Waterloo. Mr. Phillips thanked Councilperson Berry for all her support and all the effort she put forth. Mr. Phillips stated this is not his problem or Mr. Dakovich's problem as Mr. Dakovich is not doing anything more than he would do as a prime contractor. Mr. Phillips stated the numbers are being moved around, which is not illegal. Mr. Phillips stated this is a city council problem, and he does not feel the council is doing its job the way it should be done and is not looking at the whole picture. Mr. Phillips stated although some of the council are not contractors he is sure most of the council knows how the system works. Mr. Phillips stated he has no animosity towards Mr. Dakovich and other prime contractors. This is not Mr. Dakovich's problem, but the councils to correct. Councilperson Berry stated she agrees with Mr. Phillips, and the city has put the prime and minority contractors in a position they should not be in. Councilperson Berry stated this has gone on for one year and Councilperson Jordan says it has gone on for the past nine years. Councilperson Berry stated she feels the council should think about the total community's needs over the streets being done. Councilperson Berry stated she received calls from people saying this is not about race or gender, but what is the right and ethical thing to do. Councilperson Berry stated she knows this has been painful for the city council. Councilperson Berry stated she knows what it feels like not be included, and as a city, it is our responsibility to make a decision that is right for this community. Councilperson Berry stated she does not see how the council can approve awarding this contract if no program is in place, and she feels the current program does not work. April 25, 2002 Page 4 Mr. Phillips asked how can the city move forward with Vision Iowa when the action today affects all the construction projects, not only street construction but buildings and other projects. Mr. Phillips asked how the council could approve this contract and say they are moving into the future. Mr. Phillips stated he is not saying this needs to be delayed, but a program should have been in place before the city let the contract. The same thing happened last year. Mr. Phillips stated this is no personal attack against the prime contractors. Mr. Phillips stated if the council plans to move the city forward and include everyone, the council needs to think about what they are doing and make the right decision. Mr. Phillips asked the council to put a program in place that everyone can use. Mayor Rooff questioned the reason why minority participation is low in street reconstruction, but we have 60 percent minority participation in rehabilitation and around 30 percent in demolition projects. Mayor Rooff asked is it due to lack of mentoring. Mr. Phillips responded it is a combination of what the city council and prime contractors do. The prime contractors are not going to do any more than they have to. Mr. Phillips stated it is a fraternity of contractors that want to work and hang together, and unless they are directed to do anything else it won't change. Mr. Phillips asked how many Blacks were at Pebble Beach 20 years ago, and now he could walk in there and be accepted. Mr. Phillips stated the prime contractors can use whoever they want, and that he can make his numbers look good, too. Mr. Phillips stated this has been going on for as long as he can remember. This is not about the prime contractors but the city council. Mr. Phillips asked the council to make a decision, do something, leave a legacy for their grandchildren. Following comments a vote was taken on the above motion with the following result. Ayes: Six. Nays: Berry. Resolution adopted and upon approval by Mayor assigned No. 2002-226. 116806 Jordan/Welper that communication from Assistant City Engineer transmitting Contracts, Bonds and Certificates of Insurance in the amount of $2,833,571.14 from Aspro, Inc., and Subsidiaries of Waterloo, Iowa, in conjunction with F.Y. 2002 Street Reconstruction Program, Contract No. 646, be received, placed on file and "Resolution approving said documents", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Six. Nays: Berry. Resolution adopted and upon approval by Mayor assigned No. 2002-227. ADJOURNMENT 116807 - Jordan/Clark that the Council adjourn at 9:21 a.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk •