Tuesday, February 26, :00 A.M. Physical Location: Reno Tahoe International Airport, River Room 2001 E. Plumb Lane, Reno, NV 89502

Transcription

1 UCP MEMBER ORGANIZATIONS Carson Area Metropolitan Planning Organization Clark County Department of Aviation, McCarran International Airport Nevada Department of Transportation Regional Transportation Commission of Southern Nevada Regional Transportation Commission of Washoe County Reno Tahoe Airport Authority Nevada Unified Certification Program (NUCP) Disadvantaged Business Enterprise (DBE) Airport Concessions Disadvantaged Business Enterprise (ACDBE) NUCP MEETING MINUTES Tuesday, February 26, :00 A.M. Physical Location: Reno Tahoe International Airport, River Room 2001 E. Plumb Lane, Reno, NV Conference Call Phone Number: (567) Passcode: The following is a summary of the Minutes taken from the NUCP meeting held on February 26, 2013 and is not a detailed verbatim transcription of the Minutes. I. Call to Order The meeting was called to order by Chairperson Susan Pansky Members Present: Carson Area Metropolitan Planning Organization (CAMPO) Ken Smithson Clark County Department of Aviation, McCarran International Airport (McCarran) Amy Shaw, Catherine Smith, Lee Thompson Nevada Department of Transportation (NDOT) Patricia Torvinen, Kristine Hughes, Yvonne Schuman Regional Transportation Commission of Southern Nevada (RTC South) Lydia Bilynsky Regional Transportation Commission of Washoe County (RTC North) Elisa Rizzo, Debbie Munoz Reno Tahoe Airport Authority (Reno/Tahoe) Susan Pansky, Kathy Keever February 26, 2013 Meeting Minutes Page 1 of 11

2 Also present: Debbie Reynolds, DR Construction Supply Jana Forsythe, Public Joan Woods, ACC (Consultant) II. Approval of Minutes of the January 15, 2013 Meeting (For Possible Action) MOVED BY: Ken Smithson SECONDED BY: Pat Torvinen ACTION: Minutes of the January 15, 2013 meeting were approved. III. Approval of February 26, 2013 Agenda (For Possible Action) MOVED BY: Elisa Rizzo SECONDED BY: Ken Smithson ACTION: Agenda for the February 26, 2013 was approved. IV. Public Comment (Period 1) Debbie Reynolds DR Construction Supply. Debbie began to discuss her certification and was asked by Chairperson Pansky to wait until the specific agenda item to continue her discussion. V. New Business 1. Certification Application for C&N Transport Las Vegas, NV (For Possible Action) NDOT seeks the input of the NUCP members to determine whether C&N Transport qualifies as a DBE firm. February 26, 2013 Meeting Minutes Page 2 of 11

3 C&N Transport is a haul for hire corporation based in Las Vegas. Teresa McFarland, a non minority female currently owns 60% of the firm and is the president of the company. The company was established in 1989 and Teresa and her husband Wayne Lowry each owned 50% of the firm. In December, 2010, Wayne transferred 1% ownership to Teresa increasing her ownership to 51%. In 2011, Teresa submitted a DBE certification application to NDOT and in March, 2011, the NCUP denied the application based on provisions of 49 CFR, Parts (h) and (e) (f) and (k). The NUCP determined that the transfer was done solely to obtain certification and that Wayne, not Teresa, was the qualified individual with experience in the construction industry. In April, 2011, one month after the denial, Wayne transferred an additional 9% of his shares to Teresa who received the shares at no cost. In January, 2013, Teresa submitted an application to NDOT. There is basically no change from the first application except that as 60% owner, Teresa does have more responsibilities related to bidding and estimating. However, Wayne is still the qualifying individual on all business licenses and who has a CDL, drives vehicles, and is responsible for maintenance of the vehicles and hires/fires truckers. Based on the On Site Review, NDOT determined that Teresa controls the business with her husband. Wayne is backing out of ownership by transferring shares and control of the business. Hiring and firing decisions are made by Teresa and Wayne but Teresa makes the final decision. Beyond that there doesn t seem to be any real change in the operation of the company. Discussion: It is possible for a person to own a haul for hire company and be responsible for bidding, executing contracts, dispatching and hiring/firing, but not be required to physically drive a truck. Ownership transfer from a non disadvantaged owner requires close scrutiny in form and substance to ensure that socially and economically disadvantaged individual owns and controls the business. This burden of proof is not met when the non disadvantaged owner transfers shares without receiving any compensation. As president of the firm, Teresa has the highest ranking position, but is not the highest paid officer of the firm. The highest ranking official in a firm does not always receive the highest compensation. Non payment of the transferred shares is problematic and the specialty licenses necessary to operate the business are still in the name of the non disadvantaged owner. The applicant needs more time to establish and demonstrate control of the business. February 26, 2013 Meeting Minutes Page 3 of 11

4 MOVED BY: Ken Smithson moved deny DBE certification as the applicant has not demonstrated control of the company. SECONDED BY: Susan Pansky ACTION: DENIED DBE CERTIFICATION 2. Certification Application for JG Enterprises Las Vegas, NV (For Possible Action) Approve NDOT s recommendation to certify JG Enterprises as a Disadvantaged Business Enterprise (DBE). JG Enterprises is a Las Vegas based general building contractor. The company is owned by James Gray, a Black American male who owns 100% of the firm. James started the firm in 1996 from funds he received from a dislocated worker package and has over 30 years of experience in the general building construction field. He is a disabled veteran from the U.S. Army. James is the qualifier on all required licenses and has a City of Las Vegas Business License. The applicant has submitted all required documents, does not exceed the personal net worth cap or size standards and meets all of the eligibility standards of 49 CFR, Part 26. James has demonstrated that he controls the dayto day operation of the firm and makes all decisions. Discussion: The firm was established in 1996 and is now seeking certification to increase business opportunities. NDOT noted that larger firms are taking smaller jobs because of the recession which creates challenges for small companies to compete. James works from his home and is trying to build his business. MOVED BY: Amy Shaw SECONDED BY: Lydia Bilynsky ACTION: APPROVED AS RECOMMENDED February 26, 2013 Meeting Minutes Page 4 of 11

5 3. Certification Application for Milco4 Inc. Henderson, NV (For Possible Action) Approve NDOT s recommendation to deny Milco4 Inc. as a Disadvantaged Business Enterprise (DBE). Milco4 Inc. is a corporation owned by Julie and her husband Errol, Deidre Paton Krause and Julie s mother, Kathy Theuninck. The business model of the company is to search the internet for federal government contracting opportunities and match them up with people listed in their Rolodex and then bid on projects as a joint venture. This business model is not allowed under NDOT contracting rules and they do not have a business that would be eligible under the federal regulations. The applicant could be a broker but the DBE participation level would be nominal. The firm does not have any experience other than brokering; they do not have any experience in the trades or fields, are not an independent business on their own, and do not provide a commercially useful function. MOVED BY: Yvonne Schuman SECONDED BY: Ken Smithson ACTION: DENIED AS RECOMMENDED 4. NDOT Concerns on Certification of DR Construction Supply based on Anonymous Complaint (For Possible Action) Susan Pansky instructed NDOT and McCarran to prepare a report to the committee summarizing their positions. (See Attached) McCarran: The initial review of the application was comprehensive but based on NDOT s concerns another review of the certification file was conducted and there is no change to the recommendation to certify the firm. Based on the initial denial of DBE certification, the questions asked at the initial on site review were very comprehensive with in depth discussion on all aspects of the business including a review of purchase orders and bids that Debbie Reynolds prepared. All of the detailed discussions were not included in the initial Summary Report or On site Review form. DR Construction Supply is based in a home office, so the allegation that her husband David resides in their home is correct. Debbie attends outreach meetings and job sites handing out her cards and flyers. She controls 100% of the company. She was the only person who attended the February 26, 2013 Meeting Minutes Page 5 of 11

6 on site review meeting, responded to all questions, and demonstrated that she is extremely knowledgeable about her firm and knowledgeable about the business. There were invoices for small dollar amounts and sales to two local contractors. During the period their home was being remodeled, Debbie was the construction manager who issued contracts and hired contractors and employees. Now that that project is completed, she is focused on growing her business. Options for consideration are for the NUCP to substantiate the initial certification, require McCarran to conduct a comprehensive annual review and report to the NUCP, or wait and conduct the standard comprehensive three year review. The initial On site Review was conducted on June 8, 2012 and the firm was certified on July, 31, NDOT: Given that an anonymous complaint was received, it is difficult to show to the complainant that we did anything. Whether the NUCP members believe the DBE is properly or not properly certified, showing that an investigation was conducted is important in reporting to the public. Public posting of the meetings, agenda items and minutes will indicate that an investigation was conducted and identify the findings based on the investigation. Based on the specifics of complaint, NDOT continues to have concerns on the firm s eligibility as a DBE firm. McCarran indicates that there were discussions held during the on site that were not included in the report to the UCP and were not shared prior to today. NDOT would be personally interested in seeing the documentation that demonstrates that Debbie is the owner. The fact that her husband was not at the on site does not show that he is not involved in the company. The name of company, DR Construction can be promoted as firm owned by the husband or wife. The husband and former partner are all part of Atlas and Debbie used to work for Atlas. The fact that she bought out the former owner is not enough to say there is no more involvement with Atlas. NDOT would like to look at the file to ensure that the company has no involvement with Atlas. The sales level is irrelevant. There was no reason to funnel business through the firm at the time she was not certified is better reflective of whether her business takes off. A review needs to be conducted now and not a year from now as the integrity of the program is at risk. Debbie Reynolds: The name of the company was developed by Debbie s friend who is a graphic designer. Debbie is a Chicago Bear s fan and initially wanted to incorporate a bear in the company name and incorporate the Chicago Bear s colors to the logo. They could not find a bear that Debbie liked and they could not use the trade marked bear, so the designer developed the company name as DR Construction Supply and designed the style and shape that Debbie liked. Her husband does not have anything to do with her company. February 26, 2013 Meeting Minutes Page 6 of 11

7 Debbie continues to meet with representatives of different companies to market her company and she has several open clients. She solicits quotes from several companies including Atlas and uses the best price. Her goal is to have a warehouse with inventory from various suppliers. Debbie s goal is to grow her company. She was born and raised in Nevada and her father who was in the construction trade was her mentor. She built chicken farms, demolished buildings, installed structures, windows and electrical. She is not 100% knowledgeable about all aspects of construction supplies, but if she doesn t know the answer, she will ask the vendors for help. She has attended vendor classes and will continue to do everything she needs to do to grow her business. Debbie is the owner of the company and David is not involved in her company. They have been married for 38 years and she will not divorce him to prove that he is not involved in her firm. Debbie doesn t want to be under NDOT s bondage to determine who she can buy from. In December, 2012, DR Construction Supply was certified as a DBE by the California UCP. NDOT: Debbie s comments are relevant to an investigation but not relevant to what the NUCP should do. The committee made the decision to certify based on information by McCarran. Now there is an anonymous complaint which raises an issue on something we do not have specific information on. When the complaint echoes the issues in NDOT s denial, there is a need for further investigation. The fact that the complainant is anonymous is less important. Debbie Reynolds: Other family members work in the construction industry. Her brother works at Stewart & Sundell Concrete and her sister works at Steel Engineers. No one in her family sends business her way. She does her own research and does all of her own work. MOVED BY: Kathy Keever made a motion to conduct an on site investigation during the next annual review scheduled for July 31, Motion was retracted. AMENDED MOTION: Ken Smithson moved that no investigation be conducted and that the regular review process be conducted. SECONDED BY: Debbie Munoz ACTION: APPROVED AMENDED MOTION CAMPO, McCarran, RTC South, RTC Washoe, Reno Tahoe NDOT 5 Aye/1 Nay February 26, 2013 Meeting Minutes Page 7 of 11

8 5. National Certification Directory. Inclusion of Ethnicity and Gender in the NUCP Directory (For Possible Action) MOVED BY: Susan Pansky SECONDED BY: Amy Shaw ACTION: INCLUDE ETHNICITY AND GENDER IN THE NUCP DIRECTORY CAMPO, McCarran, RTC South, RTC Washoe, Reno Tahoe NDOT 5 Aye/1 Nay 0 6. Acceptance of Resignation from Amy Shaw as NUCP Secretary and Appointment of Replacement (For Possible Action) The responsibilities of the Secretary are more significant now that the NUCP meetings are public. Susan Pansky stated that the position of the Chair and Vice Chair will remain as a one year term, but the appointment of the secretary can be three months or six months. Ken Smithson volunteered to be the Secretary for the next three months March through May, A recommendation was made that another member commit to being the secretary for the following three months June through August, Susan asked that each member take a 3 month turn. MOVED BY: Susan Pansky SECONDED BY: Lydia Bilynsky ACTION: ACCEPT AMY S RESIGNATION AND APPOINT KEN SMITHSON AS THE SECRETARY FOR MARCH, APRIL, AND MAY, February 26, 2013 Meeting Minutes Page 8 of 11

9 VI. Discussion 1. Security Issues with E mail. Update from all member that they have received training from their respective IT Departments and know how to encrypt files to share among NUCP members. (Susan Pansky) All members indicated they have been in contact with their IT Departments and can access encrypted or password protected files. Susan Pansky will e mail instructions and call each board member to give them a password. All members are to send the Summary, On Site Report, Certification Application (no attachments) and the PNW form. 2. Inclusion of Certification Dates to Company Profile on the NDOT Website. Update on inclusion of information and applicable fees (Yvonne Shuman) There is no update and this item is tabled to the March 26, 2013 meeting for an update. Zee Design will contact each member directly with information on the cost and instructions on how to upload information. 3. Mandatory DBE/ACDBE Certification Training. Update on status of training (Joan Woods, ACC) 560+ people have registered and received log in information. 10% of those who have enrolled are taking the class. Some agencies have firewalls and the e mails are going into quarantine. All committee members except NDOT have received the s. On February 16 th Absorb LMS will provide each person with a unique password and the e mail will be sent from the FAA. The initial password is assigned but can be changed in the profile section. Pat Wright of the FAA will send a follow up e mail to ensure that each person receives a user name. Those who take the live training will have to take quizzes on line. Everyone will get a certificate and anyone certifying must complete the training. 4. SBE Program Approval. Update from all NUCP members CAMPO, McCarran, Reno Tahoe No approvals received. RTC North Approvals are backlogged. NDOT Program has been approved by FHWA; agency is seeking public input for implementation of the program. RTC South Program was approved on February 7, Each agency must implement the SBE Program within 9 months from approval. This item will remain on the agenda until everyone is approved. February 26, 2013 Meeting Minutes Page 9 of 11

10 5. Public Meeting and Records Retention. Update on website subscriber management and RTC meeting room availability (Lydia Bilynsky) This item will be removed from the agenda since the agenda is posted on each agency s website. NDOT will retain all records. The RTC South meeting room has been reserved for March, May, July, September, and November of 2013 and January of RTC South asked if the Nevada UCP will ultimately have its own website, i.e. Nevada.dbe.com. The UCP has no plans for a separate website and will continue to utilize nevadadbe.com, which is a NDOT sponsored website. 6. How Requests for Documents Among the Members are Handled (Yvonne Schuman) Yvonne requested an opportunity to look at DR Construction s file and received an e mail from Amy asking when she would like to come to the airport to view the file. All committee members have the same goal and objective and she felt that wasn t the way we work together. The file is property of the UCP, not the processing agency. The custodian of the file should provide them to other committee members and the response she received was not the best as the file or copies of the file should have been provided to her upon request. The underlying issue is that she would like to see more collaboration between the committee members. Susan indicated that it should not be a problem for one agency to view a file if the reviewing agency is in the same region. Although requests for a copy of a specific document should be accommodated, there is no need to make copies of entire certification files to send out. The following procedure was established for requesting files: Send an e mail to the certifying agency with specific information on why they want to look at the file. If the requestor is located in the same region, then make arrangements to visit the agency to view the file. If the file is located in another region, processing agency shall provide a copy to the requesting agency. Copy Susan or the active chairperson on the e mails so she can ensure that there is cooperation. 7. Other VII. Public Comment (Period 2) February 26, 2013 Meeting Minutes Page 10 of 11

11 VIII. Next Meeting: March 26, 2013 at 10:00 a.m. at RTC Southern Nevada, Conference Room 108 Agenda items, summaries and onsite reports are to be ed to all UCP members no later than Monday, March 18, 2013 Agenda is to be posted by 10 a.m., March 21, Susan will send a reminder of the dates to each member. IX. Adjournment at 12:00 p.m. February 26, 2013 Meeting Minutes Page 11 of 11