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Port of Oakland's Board Expands Surety Bond and Financing Program to Assist Small and Local Businesses — Contractor Selected to Administer Program

Oakland, Calif. (September 4, 2003) - On September 2, the Board of Port Commissioners voted to continue and expand its Surety Bond and Financing program, which has been in place since 1999. The program is designed to support the Port's Non-Discrimination Local/Small Business Utilization Policy. The contract to administer this program was awarded to NorCal FDC.

"Bonds are a requirement in doing business with the Port. However, small and local businesses often have difficulty being able to secure such bonds. Underwriting guidelines have become very restrictive due to bankruptcies by such giants as Enron and K-Mart. Some contractors who were once able to secure bonds for prior bids no longer qualify under new restrictive underwriting guidelines. This program seeks to address this problem," said Board President, John Protopappas.

"A strong bonding program will assist those contractors who face bonding as a major impediment to contracting with the Port. The program will allow a greater diversity of contractors qualified to respond to the Port's or the Port's Prime Builder's request for bids or proposals," said Deputy Executive Director Joe Wong. The Port's Prime Builder is the contractor that has been selected by the Port to be responsible for the Terminal Expansion (TEx) project at Oakland International Airport, a $424 million project (Phase I) to accommodate the increase in passengers at the airport.

The Enhanced Local Business Utilization Policy passed by the Board in June 2002 requires that at least 15 percent of the work on the TEx project be performed by small and local businesses. With these requirements, more small contractors will need help with bonding to be able to meaningfully participate in the program, said Bernida Reagan, the Port's Director of Social Responsibility.

"The program is designed to provide outreach to small, local contractors. It identifies barriers to obtaining financing, provides assistance with prequalification for bonding and financing, and provides counseling and referrals. In addition, the program will provide assistance in accounting, business development and other services at a reduced fee to help the businesses be more competitive in the marketplace," Reagan added.

"We are deeply honored at having been selected by the Port of Oakland to provide the critically important bonding and financing needed by local enterprises seeking to do business with the Port," said Arnold Bello, President and CEO of NorCal. "The Port's airport expansion program is one of the local area's most important economic opportunities for business in the history of the East Bay," he added.

"We intend to provide the resources needed by local small businesses to ensure that they can perform at the highest level of their capability," said George McDaniel of NorCal.


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