Metro - File #: 2019-0156

• File #: 2019-0156
• Type: Contract
• Status: Agenda Ready
• File created: 3/8/2019
• In control: Construction Committee
• On agenda: 5/16/2019
• Title: CONSIDER: A. AUTHORIZING the Chief Executive Officer to award a Contract to Merriwether & Williams Insurance Services (MWIS) for a not to exceed amount of $2,197,870 for a three-year Bonding Assistance Program, effective June 1, 2019 to May 31, 2022; B. ADOPTING a resolution, Attachment A, authorizing the Chief Executive Officer and other Authorized Officers to continue the $4,000,000 line of credit with Bank of America at a cost of $18,000 per year, for three years and to execute as needed, individual standby letters of credit at a cost of $2,000 each or 2% of the value of each letter of credit executed, whichever is greater, for a not-to-exceed amount of $294,000; and (REQUIRES SEPARATE, SIMPLE MAJORITY VOTE OF THE FULL BOARD) C. AUTHORIZING the Chief Executive Officer to approve a no cost Memorandum of Understanding (MOU) with the City of Los Angeles (City) for participation in the City's Contractor Development and Bonding Assistance Program.
• Sponsors: Construction Committee
• Indexes: Barriers (Roads), Bids, Budgeting, Central Los Angeles subregion, City of Los Angeles, Construction, Contract administration, Contractors, Contracts, Grant Aid, Insurance, Memorandum Of Understanding, Metro Rail A Line, Outreach, Payment, Pilot studies, Port of Los Angeles, Prime Contractor, Procurement, Program, Public works, Request For Proposal, Resolution, San Fernando Valley subregion, Small Business Enterprise, South Bay Cities subregion, Strategic planning, Subcontractors, Westside Cities subregion, Willowbrook/Rosa Parks Station
• Related files: 2019-0454

Meeting_Body
CONSTRUCTION COMMITTEE
MAY 16, 2019

Subject
SUBJECT: SMALL BUSINESS BONDING ASSISTANCE PROGRAM

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
CONSIDER:

A. AUTHORIZING the Chief Executive Officer to award a Contract to Merriwether & Williams Insurance Services (MWIS) for a not to exceed amount of $2,197,870 for a three-year Bonding Assistance Program, effective June 1, 2019 to May 31, 2022;

B. ADOPTING a resolution, Attachment A, authorizing the Chief Executive Officer and other Authorized Officers to continue the $4,000,000 line of credit with Bank of America at a cost of $18,000 per year, for three years and to execute as needed, individual standby letters of credit at a cost of $2,000 each or 2% of the value of each letter of credit executed, whichever is greater, for a not-to-exceed amount of $294,000; and

(REQUIRES SEPARATE, SIMPLE MAJORITY VOTE OF THE FULL BOARD)

C. AUTHORIZING the Chief Executive Officer to approve a no cost Memorandum of Understanding (MOU) with the City of Los Angeles (City) for participation in the City's Contractor Development and Bonding Assistance Program.

Issue
ISSUE

Metro responded to the small business community's request to implement a bonding assistance program that would provide support in obtaining the required bonding for construction companies seeking to participate on Metro construction contracts. The City of Los Angeles also identified bonding as a barrier for small contractors and implemented a citywide bonding assistance program. Metro piggy-backed on the City's contract to implement a Contractor Development and Bonding Assistance Program (CDBAP) for 1-year which was scheduled to end February 28, 2019.

Metro staff again participated in the City's RFP process in November 2018, and is seeking to renew its memorandum of understanding (MOU) with the City, and issue a new contract with Merriwether and Williams (MWIS) to administer Metro's Contractor Development and B...