– [Margie] So we’ll have a project and delivery method established. What is the project? And are we going to do design, bid, build? Are we gonna do design build? That’ll be established. The design is done and
DSA approval received. We will receive a public
works information sheet that will give us the
requirements of the project, what kind of license is
required, number of days to complete the project,
any specific like that. We’ll develop the bid documents
and start the bid process where we’ll advertise. We’ll do a pre-qualification if necessary, conduct a mandatory job walk, and allow for pre-bid inquiries. Build bids are received and a public bid opening is conducted. The bid review takes place, we make sure that the bid is responsive and that the bidder is responsible. Notice of Intent is issued, naming the lowest responsible bidder. If it’s less than 175 thousand dollars, we’ll receive the bonds and verify them. We’ll execute a contract. We’ll issue a notice to proceed, and we’ll place the item
for board ratification. If it’s greater than 175 thousand dollars, we’ll place the item
on the board for award, the bonds are received and verified, a contract is executed, and a
Notice to Proceed is issued. Once a project is underway,
and it is all complete, the final completion and
closeout is determined by the architect, inspector of record, and construction manager. There is some required documentation, so we need consent of surety
for the final payment. We need certification of
satisfaction of indebtedness, certification of insurance,
a guarantee form, asbestos and other hazardous
materials certification, and then our construction
manager will complete and submit a contractor’s
performance evaluation form. The final acceptance is placed
on the next board meeting, for acceptance by the board of trustees, and the Board period begins. I mean the warranty period begins. So before, in the previous slide, I spoke to a response of bid
and a responsible bidder. So I’m gonna skip to the
bottom part of that slide before I turn it over
to Joe and talk about the projects that are
under our threshold limit for pre-qualification. All bidders do submit a
statement of qualification as part of their bid documents. It’s reviewed and scored by staff. There are five areas that are looked at in this statement of qualification. They consist of essential requirements, performance and experience, safety, legal and
administrative proceedings, and references. We do check references. If any one of those items lead us to be concerned about anything,
we’ll investigate further. For those projects that
are 3.5 million and above, or require any kind of
specialized expertise, we have a pre-qualification program. I’m gonna now turn that over to Joe Carol, and he can provide you
information on that. – [Joe] Thank you Margie. Yes, for contracts that are
over 3.5 million dollars, or for those that have
specialized expertise or projects that are design-build or other alternate delivery methods, we do a pre-qualification process. On trackers I will submit a questionnaire along with supplementary information, including copies of relevant licenses, information on recent performance history of large public and
private projects they’ve done, and financial information. Are there financial statements
from the last three years? We will check their financial soundness. We’ll check performance history. We’ll call references
from previous projects to make sure that they’ve
done acceptable work. In the questionnaire
itself follows very close to the model that was published by the Department of Industrial Relations for Public Agency Prequalification and so it is scored and if contractors are found
to be in compliance, if they have enough points,
they pass the references and there aren’t any other red flags that might deem them unresponsible
such as questions about if they’ve been removed from projects. Have they filed claims
against previous owners of their previous projects? If there are such things,
they’ll submit information that details about those items
that we can then follow up on. But assuming that there
aren’t any issues like that then they are pre-qualified
for a certain bid amount. And that bid amount is
based on size of projects that they’ve leaded in the last five years but also based on how large of a bond, they represent that
they’re able to receive. They need to submit a
notarized letter from a surety. It talks about how large of a bond we’d be able to issue for them. And so, when you average those numbers and you get a pre-qualification amount and they are then allowed
for the next two years to bid on projects that are at or below that estimated amount. If they’re already pre-qualified
and a new bid comes up, they don’t need to submit
the application over again, they just need to validate that the information is still true (mumbles) We also, administered Solis group, the Community and Student
Workforce Project Agreement, that was recently passed and I know that you’ve been
speaking about it recently but just to give an update, that agreement is applicable
to a certain list of projects, mostly eight million dollars and above but it’s also applicable to (mumbles) but The first project has been
awarded under that agreement. It’s the video surveillance
cameras project and they began on site, I
believe it was last week, so we’ve gone through all
the kind of pre-job meetings and board nations that we’ve had to do and soon we’ll be looking for part time, how we’ll be doing that
in compliance as well as the local hiring and apprentice hiring that the new agreement will include. The local hiring is a three tier system, where District area residents are given, and veterans are given priority. The contractor needs workforce but they’re asking for from
the local union hiring hulls, the unions are able to push those people to the top of the list for (mumbles) And we also are coordinating
with those unions and with the District’s Construction Pre-apprenticeship program to make sure that the graduates from that program are aware of opportunities available
to them in the unions and that our, we’re keeping
track who’s on the rolls, so that if they don’t
have enough local people in certain trades, then
we can recommend people. We can help get them into
those apprenticeship programs so that they can work
on the local projects. And the contractors can be The union or non-union contractors are allowed to bid on and
work on these projects. In this case, most of
these, for this project, most of these contractors are non-union but they’re cooperating with the unions, in terms of receiving workers, making fringe benefit payments. That we also, just opened up
bids today for the next project under that CSWPA, the
building pre-renovation. And so that will be coming
up in the upcoming months, soon as we starting to
get reports and data as the (mumbles). – So some upcoming changes
in trends that we’re seeing, I think when I last reported back to you, we were just starting the SB 854 and that’s the DIR Public Works Reforms. It’s been fully implemented. All our documents contain
the required language. Our staff are submitting the PWC 100 forms for all projects greater than $1,000 and we make sure and
verify all DIR registration for any contractor prior to
work being done on campus. The next upcoming bill is AB 626, that’s the Public Works
Projects Claim Resolution. So it’s effective January 1st 2017. It changes the process for our
change order request claims. We’re updating our contract documents and we’re undergoing some
training for our staff. So the change in bid environment. So what we were seeing
earlier in the year, that bidders were being
more selective on projects. We were receiving fewer bids per project. The bids were coming in
higher than estimate. So we did some increase in our outreach and our advertising efforts. We did some notification, prior notification and kind
of marketing to contractors. I would like to report to you today that we did conduct a bid opening. We did have five bidders submit. So and several of those
were below the estimate. So I think our work is paying off. Some statistics. Since July 1st 2015, so
for the last 16, 17 months, we’ve conducted 24 public works bids. 12 equipment material bids. 36 RFP or RFQ processes, 410 contracts have been issued. 3,820 purchase orders
have been dispatched. And this is done by a staff of four buyers and two contract (inaudible) So they do a phenomenal job. And with overseen by our Deputy Director
of Purchasing Contract and I just really want to recognize him. – [Woman] Okay questions? Justice Zia – Thank you President Baxter. And thanks to staff for
bringing this before us. I had asked for this presentation. I appreciate you giving
a very elaborate overview and presentation in detail. I have a few questions
that I wanna present, that I wanna ask you and I’m going to try
to follow your slides. Alright. Believe it’s slide number seven first. Start there. By the way, you both did
a great job, so thank you. So I’ve brought this
issue up a few times now, the flow chart that you have here where you have contracts
that are less than 175K that get executed first. A Notice of Proceed is issued and then you have Board ratification. What happens if the Board doesn’t ratify, since you’ve already
issued a Notice to Proceed. – If the Board doesn’t
ratify the contract, then I would imagine
the contract would be, would not be valid. We would have to stop the work. – Okay but you’ve already
executed the contract. So it’s technically binding, isn’t it? – In order for it to be binding,
it has to be fully executed and approved or ratified
by the governing Board. – Okay. So that mean they’ve done the work and they may not get paid. – But I will remind you that you, the Board has approved the resolution for the Vice President of
Administrative Services to go ahead and enter into a contract. – Yes, I’m aware of that. Thank you for the reminder. And they do come before us as a, it’s coming before us every time for contracts under
$175,000 that we ratify. And that’s the particular
question I’ve had, if the Board doesn’t
ratify, what happens then? So moving on to, the
section that you have, I believe it’s number 12, page. Well before we go to 12, on page 11, when you’re closing out projects, what is your contractor performance evaluation forms based on? Like, for example, do you do a contractor
performance evaluation midway in the project and give an opportunity for the contractor to remedy the deficiencies
by project completion, so that they have an opportunity to correct any kind of errors that we note during the process
of the construction. – No, we don’t do a performance
evaluation midway through. However the construction manager should be managing that project and providing that
feedback as it goes along. The types of questions that are answered on the contractor’s performance evaluation goes to performance of the contractor. Did they have enough staffing? Did they have enough manpower on the job? Talks to their change order request. Talks to enough materials and supplies? Did they pay their bills? Those kinds of things. Things that end up being issues. – Okay is it qualitative or is it scored in a way that we can say
okay above this threshold it’s deemed acceptable performance? Like for example, let
me give you an example of one of the agencies that
I’ve represented in my past life One of the criticisms
was that it’s subjective because it hinges on the
opinion of the superintendent, or the construction
manager, the program manager and it may have been a valid point. So we have to design a
performance evaluation that was quantitative and defensible and demonstrate what would be
a five out of five performance to meet the standards of the agency and the contractor would
have to meet 75 percent of the score, 75 out of 100, in order to be eligible. It’s one criteria for
future contract award. So I just wanna find
out if that’s something that we do at the district. Otherwise, I’ve seen
it’s not worth the paper it’s written on but that’s
just been my experience. You certainly I would certainly be
interested in the experience that our district staff has had and I wanna see how
effective this tool has been. What has been your
experience in that regard? – We don’t have a quantitative
scoring sheet for it. We do ask for a lot of details. The way that it’s effective
is if the contractor is, Well two ways, one, we do get calls from other districts, other owners who are
looking at this contractor because we’ve either been
listed as a reference or as a previous project. So we will refer to that and utilize that evaluation
form, in response to that and going forward, if that contractor is has submitted a bid and is
the apparent low bidder, we will go back to that and look at that and see if it raises an red flags. – So, in other words, based on other agencies import I think you have it on your slide 12, if I’m not mistaken under References, is that how you check? So, let’s just take a
hypothetical situation, you have a circumstance where
the apparent lowest bidder is, You check your reference, the references and it’s not flattering, what happens at that point? How do you determine whether or not this contractor is responsible? – Well, we don’t just take the references on themselves alone. We look at all those other items as well. And if the references
are giving us red flags maybe we need to dig in and look at some of those other questions. Now the questions under
the essential requirements, those are yes, no questions. So they’re either
qualified or not qualified. If something in the
reference checks comes up that may lead to believe
that answered incorrectly, on those questions, then
we would probably deem that bidder as non-responsible. – [Sunny] Okay. – So
– Now, that being said, – If we deem the apparent low
bidder as non-responsible, we have a duty to present
that evidence to that bidder and they have a right
to rebut that evidence – And provide
– Thank you. – And provide evidence that
they are a qualified bidder and that would take place as a hearing. – Right. So they get an opportunity to
be heard and in the hearing, the determination is made subsequently. Correct? So when it comes to I’m assuming for all
construction contracts under three and a half million
dollars, we have this form, correct? That is partially based on yes/no answers and then safety questions. Do we look at change orders and claims, performance of the contractor
on change orders and claims that they’ve submitted
on similar projects? – In the area, that’s Legal
and Administrative Proceedings, there’s quite a few
questions regarding claims, arbitration, mediation, those kind of things. When they answer yes to those, we ask for them to provide the details. And that is scored. The areas that are not yes/no, qualified/not qualified are scored. – Okay and is there a
certain minimum score – that they have to get
– Yes – and what is that?
– Yes there is. – It depends on the area and right off the top of my
head, I couldn’t tell you but it’s at about the 75
percent 80 percentile. – I see. Okay. And then in the pre-qualification
section that you mentioned I’m assuming, if we’re both for both scenarios, you look
at the financial stability of these contractors, correct? And I think it’s a Public
Contract Code section that we have to look at that. Is that correct? How do you determine the
financial capacity and soundness of these contractors, in order
to deem them responsible? – For the projects over 3.5 million, with the formal pre-qualification process. They submit audited financial statements for the past three years. The primary metric we’ll use is to look at their current asset ratio. Comparing their assets to
the current liabilities. We’re looking for a number
of about 1.5 or above or if it’s less than that, that’s why we collect three years so we can look back into, It’s a little under this year but they were above for
the last couple of years and so the average is above, it’s okay. We have not had to disqualify anyone for having, on that basis. – And for under three and half million, how do you determine financial stability? – Well one of the ways we would do that is by contacting the surety and seeing if any payments had to be made by the surety on behalf of the contractor. – Okay great. So, as far as. I’m sorry, you said it for
change orders and claims and this is construction claims. Do we have some sort of
a threshold that we say, this is not acceptable? Like if we get a chain order happy contractor and I noticed you
said 10 percent is the maximum. I think 10 percent is high, personally, that’s just my perspective. But how do you determine that
this contractor is viable and is not going to game the system, essentially by submitting
a low bid and making it up at the end by change order. – Well, if I had a crystal ball, that would help. But essentially, we’re
looking at past performance. We’re looking at those references. When we call the references, that’s one of the questions
we ask past owners. We also talk to architects
and Inspector of Records. They give us a pretty good idea how that contractor operates. So then we would know. – So it’s based on somebody’s opinion that they’ve worked for. – Could be, could be. It’s all taken into account. And let me, and Joe and I were
talking about this earlier, so when we conduct the reference checks, whatever feedback we
get on that contractor and we’re awarding to that contractor, we provide that information
to the Construction Manager, so that the can manage
the project appropriately. If there’s any tidbits of
information that they find. – Does the experience requirements
that you’re looking for or past performance include wage theft? Looking at whether there’s been wage theft and requirements of
meeting prevailing wage or if they had past experience, but particularly wage theft, which has been pretty
dominant in the past years. – Yes there are questions
about paying prevailing wages and if there has been
any violations of such, yes. – [Sunny] How do you verify that? – If they have reported any violations, they are required to include
information about what happened How much they were supposed to pay? What was the date? And the information behind the incident and sometimes, it’s only happened a couple of times but I’ve called previous owners and asked and them to verify, Hey is this the correct amount or something like that. For items that actually went to a Civil Wage and Penalty Assessment from the Department of
Industrial Relations. That information is now
available on the contractor’s on the contractor’s State
Licensing Board website. – OK
– So I will check – their licenses and see if they have any of
those incidents recorded. – Doesn’t the District
Attorney also keep records, like as far as filings? – Oh, I imagine they would, I haven’t. – Okay, I think this
gives me some comfort. And lastly on this slide 14, how’s SB 854 working out for us? Are there small businesses
being impacted by this? How’s that going? – Well, when it was first enacted, we did hear a lot from contractors about. We had to educate them. Get them registered. They had to pay the $300 fine. Not fine, sorry. $300 fee to register. As of late, I have not
gotten any negative feedback. Everybody’s on board. We’re moving forward. So, – Okay and on AB 626, this Assembly bill concerns me personally. I think it was jammed through with another, under another bill and it’s my understanding
that, essentially that agency, it puts agency on notice
to resolve the change order and it doesn’t necessarily
have to be a legal claim, it can be a change order
within a specific timeline and has that caused administrative
burden on our staff. Or what’s impact that we’ve
seen if any on this front? – Well we haven’t see any yet because it doesn’t go into
effect until January 1. How we have been impacted
is now we’ll have to change all of our documents and we are conducting a training. We’re having our legal counsel come in and conduct a training. So that we’re all very familiar with it and the in’s and out’s. – Alright and just for
the benefit of the Board and the public, can you explain what this
Assembly bill entails and what that means for the agency, for our district? – Well, in kind of an overview because I’m not as familiar with it as I will be next Monday, but I understand that
it puts the time limits on it for 45 days to review
a change order or a claim. It allows the contractor to
request a meet and confer as well as it institutes a seven
percent interest for payment if it’s not done in a timely manner. – [Sunny] Which is that
45 day turnaround time? And this is
– Judge Zia. – [Woman] People have suggested me. Not tonight. On other occasions, that I
should limit the time of question and I have said no, I don’t wanna do this. But time is marching on here. And so if you could please
wrap up, I’d appreciate it. – As I stated, that was my last question but just to respond to President Baxter, I think it’s prudent and it’s wise of you not to accommodate stifling discussion or requests to stifle discussion. I think our Founding Fathers
established our great nation to express, discuss and resolve and I will continue to
represent the people, however long that takes, I will continue to ask those questions and I’m sorry if it’s an inconvenience to some of the Board members
but I will not stop from working for the people
– But believe it or not, – [President Baxter] It did not
come from the Board members. Not one Board member has asked me. It’s come from the public. – Well, I respect your opinion, but I won’t. I’ve gotta be able to do my job. I need to have the adequate information and I’m gonna not refrain
from asking questions that will protect the best
interests of the community. So the answer to that is no, I won’t accommodate that request. Thank you to staff for
a great presentation. This gives me a little bit more comfort than I originally had. So ‘preciate it. – [President Baxter] Thank you very much. Just a little. Oh I’m sorry. Jefferey Kellogg asked
me, several minutes ago. – And it really is, I appreciate this. It’s the first time, I’ve
really seen a detailed about the procurement. I mean we talk about it all the time and after a while you get very used to it and so to see it actually in a powerpoint. I thank you for doing this as far as, it’s a very
simple document to follow. The one thing I would only, two things. One, in the RFP process,
when people do that, the question came up about
people starting the work. Just from experience of
usually nobody starts the work until they’re given the authorization and the authorization does not happen until the Board takes an action. And so, if a company would move ahead or with the understanding
of, well don’t worry, those companies are risk and I think everyone knows that
when you do the RFP process because I do so much
in my professional life with RFP’s, the one thing I
would always encourage to do and it’s not in here. It’s not critical. But a lot of time and energy
goes into a response to an RFP with a chance of not getting the work, so the simple courtesy of
a letter explaining to them and also referred to as an exit interview. That is not another opportunity, a second bite of the apple so to speak. You did not get the contract but more is not, what they want to know is what did you like? Or what was the issue
that awarded the contract to this firm over than firm. And those are very helpful. The reason I bring that up is because you want these same companies to come back and bid again in the future. And if you develop a reputation and there are colleges in the system that when you see an RFP, it’s like, good luck, go get ’em because we’re not going to
spend the time or the energy because it’s almost as if it was, we should have been honored
to present something to them. So that, I think is very
important as an outreach and a final for their effort, whether they were successful or not, to give them a good explanation. More times that not, it’s
just it’s the bottom line. But so I appreciate it. It was well done and very well laid out
and I appreciate it. Information item only
so I have no questions. Thank you. – [President Baxter] Thank you. Trustee Malauulu. – Thank you. I have three questions and I apologize, I’m having technical difficulties. Myra, thank you Myra, she’s
been trying to help me. What I see in front of me is what you guys see in the District iPad. I’m supposed to be able
to jump between documents and I haven’t been able to do that. So I’ve been trying to use my phone but it’s too slow. So I don’t know which slide it is but it’s the slide where you were talking about the apprenticeship program for the trades and the unions. Which one was that? Cause I, Myra I’m almost there. Harpy boot. Slide 13. Okay I have three questions about that. Number one is, you mentioned
the unions and the trade unions Who are the unions that we
currently ave partnership with in that apprenticeship program? That’s the first question. Second and third is how many
current students do we have, that have participated in
that apprenticeship program through the procurement process and then also, many students
have we had in the past, who have already been served through the apprenticeship
program with the procurement? And if you forget I have them
written down on a napkin. – This is high tech as
that my (mumbles) there. – [Malauulu] Right, thank you. – Yes, so the, the apprenticeship programs
we were able to work with are all of the, those that are affiliated with the Building and
Construction Trades Council of Los Angeles, Orange County and that covers just about everybody who’s on site doing prevailing leads work, building a project. A liaison from that group
has been attending the excuse me, the pre-apprenticeship
program meetings. They come to hear about how they’re conducting their training and how they can provide tours to the different apprenticeship programs. I know that the students went down to, I think the electrical and I
think the plumbing program, a couple of ones like that. My understanding and don’t quote me on this but I remember the last
time I talked to them, it sounded like they had
graduated a few hundred students from their, it’s a few week
pre-apprenticeship program that gives them kind of the overview of the construction process
and prepares them to be in a, in a formal union apprenticeship program. – [Malauulu] This year? A few
hundred this year or total? – Last two years, I think. The program
– A few hundred – Low end of the thousand or high end? – 400, something like that.
– Wow. – [Joe] Yeah. – And they’re our students? – Well they all certainly
attended classes here at the college. I don’t know if they’ve (mumbles) – [Malauulu] That’s great. – Yeah. And it sounds
– That is great. – And they participated in the
procurement process with you for the RFQ’s and RFP’s?