HomeMy Public PortalAboutCBA - September 26, 2018 - Draft Meeting Minutes COMMUNITY BENEFITS AGREEMENT (CBA)
DRAFT MEETING MINUTES
Wednesday, September 26, 2018, 1:00 p.m. - 3:00 p.m.
2350 MARKET STREET, ST LOUIS MO
1ST FLOOR
CONFERENCE ROOM #109
1. Roll Call – In attendance were (Quorum): (Attendance sheet is attached)
MSD – Brian Hoelscher CBTU – Lew Moye
NAACP City Branch – Adolphus Pruitt NSBE – Jan Walker
CORE – Jesse Lofton MOKAN – Yaphett El-Amin
NAACP County Branch – John Gaskin II UAPO – Zaki Baruti
2. There were no public comments.
3. Meeting Minutes from June 19, 2018 were unanimously approved.
4. FY2018 Annual Diversity Report by Shonnah Paredes
MSD: Shonnah Paredes presented the FY2018 Annual Diversity Report that
was presented during the September 2018 MSD Board Meeting. Also provided
was a copy of MSD Diversity’s first professional publication of Diversity’s FY2018
Annual Report.
CBA: The CBA requested an update on the tunnel site-visits. Brian Hoelscher
responded that the dates will be sent out to the CBA Signatories soon by Rich
Unverferth.
NAACP (St. Louis City Branch): Adolphus Pruitt requested clarification on Page
3 of the Diversity Annual Report presentation regarding the difference between
M/WBE Commitments and M/WBE Active Contract Payments. Brian Hoelscher
explained that the M/WBE Commitments are those commitments made for
contracts awarded during FY2018. M/WBE Active Contract Payments, on the
other hand, are those payments that were actually made to M/WBEs during
FY2018 regardless of contract award date.
NAACP (St. Louis City Branch): Adolphus Pruitt asked if it would be possible to
identify if M/WBEs who received commitments during FY2018 are local
subcontractors (within the St. Louis region). Brian Hoelscher responded that
MSD does not currently have any data at hand regarding which subcontractors
are local. Adolphus would like to identify gaps that local minority companies are
not fulfilling that non-local minority companies are fulfilling. For example, if there
is a minority company needed for tunneling, but there is no local minority
company who performs that scope of work, how does the DBA identify and
address that gap to build the pool of minority companies who can perform that
work.
NAACP: Adolphus Pruitt asked about the details of the participation of the 4
State Funded projects. Brian Hoelscher responded that MSD will provide the
information of the 4 State Funded projects that were awarded in FY2018.
UAPO – Zaki Barutti asked in those companies that are MBE and WBE are
double counted. Brian Hoelscher responded that those companies are not
double-counted.
NAACP – Adolphus asked if the Apprentice data listed on page 4 was for all
apprentice hours. MSD responded that yes the does include all apprentice
hours. However, on page 5 of the presentation, it details that 79% of apprentice
hours have been worked by minorities and/or women.
CBTU – Lew Moye asked how the numbers “Compared to Goals” are
determined. Brian Hoelscher explained the math behind these calculations.
CBTU – Lew Moye asked what has contributed to the growth of minority and
women workforce since FY2016. Brian Hoelscher answered that MSD is holding
its prime contractors accountable for meeting the workforce goals. He also
stated that the BUD Training Program has helped supply our Prime Contractors
with a larger pool of diverse applicants. Diversity’s presence as well as the
cooperation with the labor providers helps support the success of this program.
The industry (AGC/SITE) are also helpful in relaying to the contractors that MSD
is serious about meeting these workforce goals.
NAACP – Adolphus Pruitt asked that as the workforce numbers have increased,
has it increased the cost of doing business with MSD. Brian Hoelscher
responded that in general it does not increase the cost of doing businesses, but
there may be rare instances where it does. Adolphus requested a case study
that speaks to that question because the CBA Signatories group receives that
question often. Brian Hoelscher stated that MSD will discuss the option of doing
such a study.
CBTU – Lew Moye stated that when the CBA started, that MSD wanted this to be
a model program; therefore, he believes it would be in the interest of the District
to provide a case study to detail if the cost of doing business increases with
Diversity Goals or not. Brian Hoelscher responded that in MSD’s particular
situation, MSD has not seen an increase in the cost of doing business.
NAACP – Adolphus asked a question on Page 8 about the decrease in minority
participation from FY2016. Shonnah responded that women far outweigh
minorities for the local office workforce. Brian H further explained that the
professional services workforce goals are for the local office of the Prime
Consultant only. Adolphus stated that this is a possible gap that could be
addressed.
MOKAN – Yaphett El-Amin asked how the Disparity Study determined that
M/WBEs were being over-utilized on Professional Services contracts. Brian
Hoelscher responded that the Disparity Study compares the availability of
M/WBEs against the actual utilization of M/WBEs. This method determined
where disparities did and did not exist. Where disparities were found to exist,
MSD implemented M/WBE subcontracting goals to address those disparities.
UAPO – Zaki Baruti asked a question on Page 9 (Small Contractor Program)
regarding the breakdown of MBE and WBE separately. Brian H responded that
MSD will provide that breakdown.
NAACP – Adolphus asked a question on Page 11 regarding FSH. He asked if
MSD knows the number of hires out of the FSH program. Shonnah responded
that she will supply that information before the next scheduled meeting.
MOKAN – Yaphett El-Amin asked if the Journeyman on the First Source Hiring
list are going through the unions. MSD responded that the Journeyman may also
go through the unions as well as the First Source Hiring list. Lew Moye
commented that unemployed minority and women workers should utilize all
avenues to find employment.
NAACP – Adolphus asked if all three scholarship recipients completed the
program. Shonnah responded that yes, all three completed the program.
Adolphus also asked what which schools the MSD sponsored SLIP Interns
attended. Shonnah stated that that information will be provided on the next
report. Adolphus asked that MSD explain the SLIP Program. Shonnah
responded that SLIP has been around since 1992. The program has expanded
to St. Louis City, St. Louis County, and Magnet schools. The program now works
with UMSL for a 12 week professional development program. Those students
who complete the program are eligible for 8-week paid internships. MSD
sponsored 5 interns in FY2018 and those interns were placed based off their
future career interest (Finance, IT, etc.). MSD pays the salaries for those interns
during the 8-week internship.
NAACP – Adolphus Pruitt asked which projects have the MSD funded tunnel
OJT Programs. Shonnah responded that those are on Upper Maline, Maline
Creek, and Deer Creek. SAK has voluntarily used the program on Jefferson
Barracks tunnel project. Adolphus asked about those individuals who are no
longer employed. Shonnah responded that she was made aware that one of the
trainees allowed another individual to get on top of a piece of equipment and
drove the equipment off the job site; another refused to leave their cell phone
outside of the tunnel when requested; and another left on their lunch and decided
that they did not want to return. Shonnah stated that she meets with the
contractor and they communicate to her some of the reasons why they did not
retain an employee. The first point of contact is usually the union since that is
who they are affiliated. Shonnah stated that they are very aware that she is
watching and tracking how the trainees are being retained. The Prime includes
the status of the trainees on a monthly basis to MSD. Brian further explained
that while the OJT tunneling trainees are being sponsored by MSD, the Prime
cannot include those hours on their workforce reporting to meet MSD’s goals.
Once they complete the training program, the Prime may start counting their
hours towards meeting the workforce goals.
CBTU – Lew Moye asked how does the Prime recruit for the OJT program.
Shonnah responded that the prime recruits through various agencies, fairs, and
union affiliates. Yaphett El-Amin with MOKAN stated that SAK had just attended
a MOKAN event looking for candidates.
NAACP – Adolphus asked about the 0% retention on Upper Maline (page 15).
Shonnah stated that SAK had a very large piece of equipment go down, which
greatly affected OJT opportunities. Adolphus asked why those who had not
completed the program on Upper Maline were just let go. Shonnah stated that
she has inquired about why those trainees could not be migrated to another
project, but does not have a response at this time. Shonnah will ask SAK if those
who did not complete the Upper Maline Creek OJT program were moved to
Jefferson Barracks. Brian Hoelscher stated that when the equipment came back-
up, SAK went straight into production, which does not allow sufficient time for
training.
4. OJT Cost Breakdown
MSD provided a cost breakdown sheet for the tunnel OJT Program to the CBA
Signatories. Shonnah provided a detailed explanation of the breakdown to the
CBA.
NAACP – Adolphus asked about the rationale behind the tunnel OJT program.
Brian H responded that MSD has the majority of the tunneling work here in St.
Louis; therefore, MSD wants to help build a local workforce pool of diverse
individuals who have tunnel work experience.
NSBE – Jan Walker asked what the “a,b,c,d,e” letters correlate to on the form.
Shonnah will update the form to be clearer by the next meeting.
MOKAN – Yapett El-Amin stated that a program like the tunnel OJT program
could also help contractors with smaller contracts. MSD responded that MSD is
currently sponsoring the Diversity Incentive Program, which will reimburse
contractors $10 per hour for each minority/women apprentice hours that exceeds
the 40% goal. The prime has to meet all workforce goals. At this time, there
have been no contracts completed under this program.
5. Contractor Performance Evaluation
MSD provided link to the evaluation process documents on the MSD website.
The CBA will review and let MSD know if there are any questions.
6. Dispute History
MSD provided the CBA with a document detailing the outcomes of payment
disputes in the MSD Diversity Reporting system.
CBTU – Lew Moye asked if the MSD Diversity Reporting system tracks late
payments. MSD responded that the system provides an automatic payment
verification process for M/WBE subcontractors when a Prime reports a payment
to the company. MSD performs separate investigations when a subcontractor
reports to MSD that they are not being paid in a timely manner.
The CBA did not have any outstanding questions regarding the information
provided.
7. Unbundling
NSBE – Jan Walker sent a copy of the Unbundling Policy (Prof Services) with
suggested changes. Brian Hoelscher will review and respond with any further
suggested changes (via “track changes”) and send it out for review by the CBA
group.
8. Immediate Need and Emergency Projects
MSD provided a breakdown on the M/WBE participation on Immediate Need and
Emergency contracts awarded in FY2018.
NAACP – Adolphus Pruitt asked about the utilization being so low. Brian
Hoelscher responded that the Emergency/Immediate Need Primes are required
to hold a list of M/WBE companies who they will call to try to gain M/WBE
participation for these jobs. Since these jobs are performed under short time
restraints, participation is depended on the immediate availability of M/WBE
subcontractors. MSD will provide the policy for the Immediate Need/Emergency
Contracts regarding the use of M/WBEs to the CBA before the next scheduled
meeting.
9. Contractor Performance Sanctions
MSD provided a list detailing all warnings and sanctions taken against Prime
Contractors since FY2009.
UAPO – Zaki Baruti asked what happens when a contractor is sanctioned. Brian
Hoelscher responded that various sanctions exist. Some examples are as
follows: a formal written warning; only allowing the prime contractor to hold one
contractor at a time; removing the contractor from the bidder’s list for a year, etc.
Sanctions are usually in place for one calendar year. Brian also explained that
the information included on the provide list is just for construction, not design.
Since the design bids are not a low-bid prequalification process, their
performance is evaluated in the event that the prime consultant tries to bid with
MSD again. The CBA Signatories will review the information and let MSD if there
are any questions.
10. Insurance Requirements
MSD provided the insurance requirements mandated for Prime contractors.
Yaphett El-Amin with MOKAN stated that the cost of insurance for small
companies may create challenges. The thought was to look at the Insurance
requirements and lower the amount of insurance required by the Prime to the
subcontractors. At this time, MSD does not mandate insurance requirements for
subcontractors. Adolphus stated that MOKAN and NSBE will review with their
members and let MSD know of any suggestions before the next scheduled
meeting.
11. Mentor/Portege
MSD provided an example of the current language in Diversity’s policy.
Adolphus requested that this item stay on the agenda for the next meeting.
12. General Discussion Regarding Action Items from Meeting
MSD: Brian Hoelscher stated MSD will provide responses to the questions
regarding Agenda Item #4 (FY2018 Annual Diversity Report) before the next
scheduled meeting via email to the CBA Signatories. Agenda Item #5
(Contractor Performance Evaluation Process) will remain on the agenda for the
next scheduled meeting. Agenda Item #8 will not remain on the Agenda for the
next scheduled meeting, but MSD will provide a copy of the
Emergency/Immediate Need Policy regarding M/WBE participation. Agenda Item
#10 (Unbundling) will remain on the Agenda for the next scheduled meeting and
Brian will provide suggested changes via e-mail. Finally, Agenda Item #11
(Insurance) and #12 (Mentor/Protégé) will remain on the Agenda for the next
scheduled meeting.
NAACP: Adolphus Pruitt suggested that the CBA Signatories make an effort to
review the information provided before the next schedule CBA meeting and have
feedback ready. Brian Hoelscher will send out a list of outstanding items along
with the actions agreed to in an effort to hopefully resolve some items before the
next scheduled meeting.
14. Schedule Next Meeting
The CBA Signatories requested that the next CBA meeting be scheduled for
early December 2018. Brian Hoelscher will send out a list of possible dates via
e-mail.
15. Meeting adjournment was approximately 3:25 p.m.