To: Ralph J. Ciallella County Administrator

From: Deborah E. Collins, Esq., Director Small Business Development and Affirmative Action

Date: February 11, 2015

Re: 2014 Annual Report

On October 31, 2005, the County of Essex published the first-ever Essex County Disparity Study. In so doing, Essex became the first and only county in the State of New Jersey ever to conduct, complete, and publish a disparity study to determine whether the county’s contracting and procurement processes are fair and even- handedly applied. Upon the publication of the study, County Executive Joseph N. DiVincenzo, Jr., made a commitment to the Essex County Board of Chosen Freeholders that every quarter we would appear before the Board to report our progress with respect to adhering to the recommendations which flowed from the Disparity Study1. Over the past nine years, we have chronicled our efforts to reduce the disparity which the study documented. We have had supporters and detractors, but one fact remains true. Essex is still the only county in the State of New Jersey ever to have published a disparity study and created a Plan of Action based upon it. Moreover, our small business development initiative has served as a model for governmental entities not only in the State of New Jersey but as distant as the State of California.

1 The recommendations are as follows: 1. Open and transparent process and practices; 2. Outreach; 3. Cost- effective practices; 4. Accountability and consistency; 5. Interdependency; 6. Equal opportunity for M/WBEs; 7. Focus on the achievable; 8. Private sector mentors; 9. Focus on a few solid initiatives; 10. Evaluation and monitoring 1 Thus, in continuing the tradition and making good on the County Executive’s promise, we present to you the 2014 Annual Report of the Essex County Office of Small Business Development and Affirmative Action (“OSBDAA”). It is an account of our accomplishments for the year 2014, as well as achievements during the fourth quarter of the year (covering the period September 18, 2014 through and including December 10, 2014).

The primary purpose of the annual report is to provide an overview of the 2014 outreach, purchasing, and procurement activities of the County of Essex with respect to our target population. We document our efforts to ensure that Small Business Enterprises (“SBE”), Woman-owned Business Enterprises (“WBE”), Lesbian, Gay, Bi- sexual, Transgender (“LGBT”), Veteran-owned Business Enterprises (“VOBE”) and Minority Business Enterprises (“MBE”) have a full and fair opportunity to compete for contracts and avail themselves of the resources the County offers.2

While the County of Essex does not have a certification program, we recognize the certifications and registrations of entities such as the National Minority Supplier Development Council, the State of New Jersey’s Small Business Enterprise Registration, the unified system of New Jersey Transit and the Port Authority of New York and New Jersey among others. Towards this end, we endeavor to conduct outreach to our target populations not only within the twenty-two (22) municipalities that constitute the County of Essex, but throughout the State of New Jersey. Through our Small Business Resource and Reference Center, also known as the “Biz Center” we provide a library of over 500 works on the topic of entrepreneurship; three computer terminals, and free meeting space for home-based and other businesses.

Previously submitted reports have documented the County’s spend on a quarter-by- quarter basis throughout the year. Hence, the instant report will focus on a breakdown of fourth quarter activity in particular and summarize overall contracting results for the year 2014.

Below follows a summary of our accomplishments in the year 2014.

Overall Monetary Achievements 2 The National Gay & Lesbian Chamber of Commerce (NGLCC) is the certifying body for LGBT-owned businesses. On July 1, 2011, Essex became the only county in the United States to enter into a partnership agreement with the NGLCC. Learn more at www.nglcc.org.

2 As the 2014 year came to a close, the Fourth Quarter results were as follows: The County of Essex awarded a total of $15,292,126.54 in private contracts3. The total dollar amount awarded to the vendors in our target population was $6,487,814.03. Thus, Minority Business Enterprises or MBEs received $2,057,971.06 or 13% of the spend; SBEs were awarded $5,913,924.13 or 39%; and Woman-owned Business Enterprises received $832,417.14 representing 5% of all private contracts awarded for the final quarter of 2014. See, “Appendix A”, Fourth Quarter Contract Awards for the Period September 18, 2014 through December 10, 2014.

As is customary, we highlight the major public works contracts for the fourth quarter noting the certifications or registrations, if any, of the contractors who win the awards. For example, Zenith Construction Services, a MBE/SBE was awarded a contract in the amount of $800,000.00 for miscellaneous improvements at West Side Park. The largest contract awarded to a SBE…totaling $2,618,754.00 went to Fai-gon Electric for traffic signal and roadway improvements at eight (8) intersections in Newark and Irvington. Last but not least, a MWBE/SBE, Aspen Landscaping and Contracting won a contract in the amount of $610,718.00 in connection with the Cherry Blossom tree program in Branch Brook Park.

In 2014, the County of Essex spent a total of $142,059,919.42 in private contracts overall. The County’s records show that small, woman-owned, and minority vendors received $58,709,921.93 or 41. % of the total amount spent last year. Moreover, the data indicate that Small Business Enterprises received $53,270.816.14 or 37%; Minority Business Enterprises received $10,253,381.26 or 7%; and Woman-owned Business Enterprises received $8,298,470.02 or 6% of the total contract dollars awarded to this population.

Last year, there were several major public works contracts awarded to vendors who fall into the broad category of small business enterprises. They are as follows: Bismarck Construction Corp, a vendor classified as both MBE/SBE, received a contract in the amount of $1,364,000.00 for restoration of the Lenape Trail at Branch Brook Park in Newark. KS Engineers a MBE/SBE received a contract in the amount of $3,634,155.00 for engineering inspection services for the South Orange Avenue Traffic Operations and roadway improvements currently underway at the area known as the “S” curve. A WBE, The Shauger Group, received a $1,552,532.71 contract for Phase II of the demolition of the former Public Works building in Cedar Grove, New

3 We identify private contracts as any purchase order for goods and services not included in the following: permits; fees; development funds; utilities; medical examiner fees; debt service; professional organizations; postage; grants awarded to community-based or non-profit organizations; intergovernmental payments and payments to professional associations. 3 Jersey See, “Appendix B”, and Essex County Board of Chosen Freeholders Approved Contracts for the Year 2014

Contracts under $5,400.00

In the category of contracts under $5,400.00 the average contract dollar amount for the fourth quarter of 2014 was $1,064.32. However, the average for the year was $1,064.30. As is the case with all purchases below the bid threshold of $17,500.00, many of the goods or services in this category were procured through the Request for Quotes process which requires the requesting division to seek written quotes from three qualified vendors who are ready, willing, and able to provide goods and services to the County of Essex.

In 2014, opportunities were available in areas such as mechanical repair services for fleet vehicles; respite care services; auto parts and service; locksmith equipment and supplies; and household and janitorial supplies. See, “Appendix C”, Contracts under $5,400.00 for the Period December 19, 2013 through December 10, 2014.

Contracts between $5,400.00 and $17,500.00

The average contract dollar award between $5,400.00 and $17,500.00 in 2014 was $10,502.30. As we have noted in previous reports, the majority of the opportunities in this category stem from bids with multiple awards (i.e. printing services) which require that the County publically-advertise them. Others are purchases that the County makes routinely or in the regular course of business. As such, they may be approved collectively as part of an Omnibus Resolution for the ECBCF’s consideration4.

As a general rule, the opportunities in this category include the following: real estate appraising; sale of promotional items, catering; web site maintenance services; video teleconferencing services; and speaker fees for seminars and workshops offered by this office. Contract awards in this category include a $7,833.00 award to the Massey agency, an MWBE, for the renewal of a commercial crime insurance policy; two contract awards totaling $18,089.76 to Oveter’s Construction, Inc, a MBE/SBE to provide snow plowing services; and three contracts in the sum of $37,722.18 to Redmond BCMS Inc., a WBE, for printing services. See, Appendix “D”, Contracts

4 The Omnibus Resolution covers the sale of automotive parts and accessories; computer hardware and software; printing services; and court reporting services; 4 between $5,400.00 and $17,500.00 for the Period December 19, 2013 through December 10, 2014.

Public Works Projects and Subcontracting Goals

While the County of Essex does not have the legal authority to establish a set-aside program requiring mandatory goals on public works projects, we do capture federally- mandated subcontracting information on major Parks or Public Works projects. In the first quarter this year, the County awarded a contract in the amount of 25,915,389.50 to New Prince Concrete Construction Company, Inc., a SBE, to perform the Traffic Operations and Roadway Improvements on South Orange Avenue. This is a federal project for which the County received a grant in the amount of $30,000,000.00 from the Department of Transportation. In connection with this work, KS Engineers PC, a MBE/SBE, received a contract in the amount of $3,634,155.00 for engineering inspection services.

We note that the Federal Highway Administration assigned a 12% DBE participation goal to the South Orange Avenue Traffic, Operations and Roadway Improvement project. 5 However, based on the data we have received from our Public Works’ colleagues, DBE participation on this project is currently 18.4%. Among the DBE subcontractors, M. V. Contracting received the largest contract award in the amount of $2,636,930.00 See, Appendix “E”, South Orange Avenue Traffic Operations and Roadway Improvements Subcontractor Log.

On July 9, 2014, the County awarded a contract in the amount of $11,642,000.00 to Terminal Construction Corporation to construct a New Parking Deck at the South Mountain Recreation Complex. This is not a federal project; hence, there is no mandatory DBE participation goal on it. Based on the information we have received from our Public Works’ colleagues, the total percentage of minority and woman-owned subcontracting participation on this project to date is 3.1%. See, Appendix “F”, Terminal Construction Subcontractor Report.

5 The New Jersey Department of Transportation (“NJDOT”) established a Disadvantaged Business Enterprise (“DBE”) Program to ensure that DBE’s as defined in 49 CFR Part 26, have an equal opportunity to receive and participate in United States Department of Transportation (“USDOT”)-assisted contracts. Under 49 CFR Part 26, to be eligible for DBE certification, persons must own 51% or more of a “small business”, establish that they are disadvantaged within the meaning of USDOT regulations, prove that they control their business, and have a personal net worth of less than $75,000 (not including primary residence or ownership equity in the company).

5 Additional Accomplishments

In 2014, former Freeholder Carol Clark requested data on the number of small businesses that received contracts as a result of attending one of our seminars or workshops. We were pleased to present data showing that since the opening of our office in December of 2005, sixty-five (65) vendors have won contract awards as a direct result of their participation in and networking at our outreach events. The total number of contracts awarded was 806 with a dollar value of $6,631,400.95. We continue to capture this data and will report the results going forward. See, Appendix “G” Contracts Awarded to Vendors/Contractors That Have Attended OSBDAA Events

Last year, we presented twenty (20) workshops or seminars on a variety of topics including but not limited to Estimating; State Contracts; E-Marketing; Growth Strategies for Success; and DeMystifying the RFP Process.

Technological Progress

Since the launch of our “revitalized” web site on November 18, 2013, we have seen a marked increase in the number of visits to the site. For the period December 19, 2013 through December 10, 2014 there were 1,733 visitors to the site. New visitors constituted 25% and the 75% remaining were others who had consulted the site on more than one occasion. As of the writing of this report, in 2014, 183 new enterprises registered to do business with the County through the web site this office maintains. Overall, there are approximately 1,589 registrants and counting.

To access the web site, please connect through this link: http://www.ecbizcenter.com/

Initiate outreach to individuals, groups, and organizations in order to expand our network of small, woman, and minority business owners

On April 17, 2014, we taped five (5) interview spots that aired for a one-week period on radio station WBLS, the home of the Steve Harvey Morning Show. While the purpose

6 was to advertise the financial literacy program we launched last year, it served the additional purpose of enabling us to reach a broader audience.

In the same month, we extended our reach to vendors who customarily do business in the private sector, by participating in PSE&G’s Supplier Diversity Fair.

Last but not least, we supported Congressman Donald Payne Jr’s effort in this arena by attending his Small Business Expansion and Acquiring Skills event held at the Rutgers University Business School in September of 2014.

Provide technical assistance to help business owners gain necessary certifications, financing, and bonding In 2012, we offered three OSHA certification programs including one expressly for

In 2014, we organized and presented a thirty-hour Occupational Safety and Health Administration (“OSHA”) outreach training programs aimed at individuals seeking certification cards to function as safety inspectors. All twelve (12) attendees of the OSHA 30 Hour program passed the examination and received certificates of completion.

In furtherance of our objective to introduce contractors to bond producers and monitor their progress in becoming bondable, we have followed up with the companies that completed the Essex County Bonding Readiness program that we conducted over a three-year period from 2009 until 2012. As of this writing, 113 contractors who completed the educational component of the Essex County Bonding Readiness Program, 43% have been deemed bonded or bondable to date. The total bonding actual and potential combined amount is $13,940,000.00.

Build partnerships with groups and organizations that share the County’s commitment to equal opportunity

Last year, we solidified our relationship with the National Gay and Lesbian Chamber of Commerce and its local affiliates. In fact, visitors to our website now have a direct link to the NGLCC’s site in order to pursue the certification process.

While we have a long-standing relationship with the New Jersey Small Business Development Center based on the campus of Rutgers University, in 2014 we supported Programs organized by their State-wide affiliates.

Last but not least, this author served as a panelist for the Entrepreneurship Pioneers Initiative hosted by the Center for Urban Entrepreneurship & Economic Development

7 (CUED) of the Rutgers Business School. The goal was to provide constructive feedback to developing entrepreneurs to enable them to create solid business plans in support of business growth and continuity.

Create strategic partnerships with private sector financiers and insurers of small, women and minority business owners

As noted earlier in this report, last year we launched a financial literacy program featuring financiers from both the public and private sector. As word spread about this initiative, representatives from Wells Fargo and PNC Bank extended offers to us to support future efforts. We look forward to forging a relationship with them in 2015.

In sum and substance, 2014 was one of our busiest and most productive years. It is our goal to capitalize on the progress we have made with the anticipated support of our County Executive Joseph N. DiVincenzo, Jr. and the newly-constituted Essex County Board of Chosen Freeholders. Finally, we welcome your ideas and suggestions, as we continue putting Essex County first.

Cc: Joseph N. DiVincenzo, Jr., Essex County Executive Britnee N. Timberlake, Freeholder President, and Chair of the Affirmative Action Committee Philip B. Alagia, Chief of Staff Alan Abramowitz, Deputy County Administrator James J. Jorgensen, Purchasing Agent James R. Paganelli, Esq., County Counsel Deborah Davis Ford, Clerk of the Board of Chosen Freeholders Jessica Valle, SBDAA Compliance Officer

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