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HomeMy WebLinkAboutMinutes 2004DRAFT The General Meeting Minutes DRAFT Small Business Development Advisory Committee For Minority. 'Women and Evanston Business Enterprise February 11.2004 Members Present: Dick Peach. Chairman. Natalie Birk, Brian Hams, Kyra Walsh Members Absent: Horace Payne Staff Present: Uoyd W. Shepard SUMMARY OF EVENTS I. Call to Order Mr. Dick Peach, Chairman, called the meeting to order at 7:00 p.m. II. Approval of April 9, 2003 Minutes Approval of the April 9.2003 minutes was tabled for the March 10, 2004 meeting. III. Staff Report M/W,EBE Participation Report Sewer Relief Projects: Mr. Shepard reported that the A&PW Committee has requested that a report be presented on the Job Training and Employment Program components of the Sewer Relief Projects, Phases 9A and 10A. The report will be comprised of information prepared by both the Engineering Department/Water Department and the Purchasing Department. Mr. Shepard added that the minority and women business participation for sewer relief projects was included in the summary for all FY 2003 projects above S 15,000. The MIW participation requirement was met for each contract. Sewer Relief Project, Phase 9A, has a total cost of 55,480,432 with 100% minority participation of 55.480,432 due to the general contractors certified minority status. Sewer Relief Project, Phase tOA, with a total cost of 59,960.000 met the 15% minority and women participation requirement with subcontracts amounting to 51.500,000. Mr. Shepard reported that he was unable to give a summary of M/W/EBE purchases under S 15,000 because the system generates all payments whether or not they are payments to M;"%%'-EBEs. J.D. Edwards personnel will be notifted of the problem so that a corrective action can be taken. Draft Not -approved 1I/«'/EBE Advisory Committee Minutes Februar.• 11. 2004 Page 2 of 3 Church Street Plaza: Mr. Peach inquired regarding the status of the Church Street Plaza Audit Report. Mr. Shepard indicated that except for Optima Views, the audit is completed. Optima Views has reported an unaudited 12% MAV EBE participation which falls 13% short of the required MAN%EBE participation amount of25%. Mr. Peach indicated that the audit report should be reviewed by the M/W/EBE Advisory Committee and in turn presented to the A&PW Committee. Mr. Peach added that the City Council will ultimately determine whether or not there will be a fine levied against Arthur Hill & Company and the amount of such fine. Mr. Shepard indicated that the overall project finished with a 16.18% M/W/EBE participation. Sherman Plaza: Mr. Shepard reported that the Economic Development Committee will meet March 3, 2004 and the developer will give an updated status report on the project. Main Street Marketplace: Mr. Shepard indicated that it was necessary to return Osman Construction Company's entire M/W/EBE compliance package due to all subcontractors' "Letter of Intent to Perform" not being properly signed and notarized by both the general contractor, Osman, and the subcontractor. As submitted, the documents were not executed. Mr. Shepard added that for Main Street Marketplace and all future projects, there would be an attempt to monitor all subcontractors at the job site to determine the extent of their participation. Motor Fuel Tax (MFT) Funded Projects: Mr. Shepard reported that MFT funded projects had historically not had M/W/EBE participation. There was a misunderstanding within the City's Engineering Department that M;W, EBE participation was precluded from IDOT's MFT funded projects. However, through corresponding with IDOT it was determined that M/W/EBE participation is permissible. IDOT required that the City submit its Specification for MAV.EBE participation for their review and approval. IDOT indicated the review could take up to 60 days. The City specification was sent to IDOT January 14, 2004. Mr. Shepard indicated that Iast years MFT funded project amounted to S849,789 with zero M/W/EBE participation. The potential M/W/EBE participation loss for this project was S212,447. Draft Not -Approved .%I/«'IEBE Advisory Committee Minutes February 11. 2004 Page 3 of 3 Mr. Shepard reported that planning for the 2004 Diversified Business Networking Conference is underway. So far there are commitments to host tables from 15 buying organizations. Of the 15 committed companies, 5 will participate in the financine seminar that will run concurrently with the conference. The seminar will run from 1 1:00 a.m. to 1.00 p.m. Financing seminar participants are Merrill Lynch. First Bank & Trust of Evanston. Harris Bank. Small Business Development Center of Evanston and Fern Grubisich. North Point Marketing. Work Task Force Committee: Mr. Shepard conveyed that the Work Task Force Committee continues its work through a subcommittee to develop a proposal on how inexperienced job seekers can be trained for jobs in both the construction industry and for other vocations. The objective is to provide program participants enough training to be capable of seeking steady employment in a trade beyond entry level. Also, the committee would like to combine an effort between ETHS, Oak -ton Community College and employers to have program participants certified with trade unions after receiving vocational training. Mr. Peach related that ETHS has reduced the emphasis on vocational education and training and that such training needs to be reinstituted. Mr. Peach added that anywhere from 11 % to 171,10 of the graduating class each year does not go on to college. These graduates leave ETHS without any marketable skills. Therefore, vocational training has to become a priority. Also, of grave concern is the fact that only 20% of the students entering a four year college graduate in four years. Eighty percent are sliding back into the work force. IV. Adjournment The meeting was adjourned at 7:55 p.m. DRAFT The General Meeting Minutes DRAFT Small Business Development Advisory Committee For Minority. NVomea and Evanston Business Enterprise March 10, 2004 Members Present: Dick Peach. Chairman, Horace Page, Kyra Walsh Members Absent: Natalie Birk. Brian Harris, Bennie Jones Staff Present: Lloyd W. Shepard SUINIMARY OF EVENTS I. Call to Order Mr. Dick Peach. Chairman, called the meeting to order at 7:00 p.m. I1. Approval of the April 9, 2003 Minutes Approval of the April 9, 2003 minutes was not voted due to lack of a quorum. III. Staff Report Church Street Audit Renort Mr. Shepard conveyed to the committee that the Church Street Plaza Redevelopment Project's Audit report is completed. The Audit Report's lengthy preparation term was due to having to wait for Optima Towers Condominium to be completed. After reviewing the report, the Committee decided that W.R. Grace should not be given credit as a supplier because its sales representative does not serve a "commercially useful function" by representing W. R. Grace out of an office in his home. Such a relationship is considered a pass through predicated on the definition of an Evanston business. There was an extensive discussion regarding this relationship prior to the decision not to approve EBE credit for W.R. Grace. The next issue discussed was J.E. Concrete Pumping that was given credit for being an MBE but never submitted a certification letter verifying legitimate VIBE ownership. Predicated on this particular omission and many similar omissions throughout the report, Mr. Peach indicated that it was unnecessary to discuss such omissions given the duration of time. Mr. Peach further stated that "if the certifications have not been submitted by now after the vigorous effort to achieve compliance, there is no need for additional effort or discussion." Draft Not -Approved MJ«'/EBE Advisory Committee Minutes March 10. 2004 Page 2 of 2 Church Street Plaza Audit Cont. A question was raised regarding the differential dollar amount accredited to Builders Ready Mix by R.G. Moore & Company, the consultant hired by AH $ Company. Mr. Shepard gave Builders manufacturing credit at 100% because they do manufacture ready mix concrete and also transport their product. Mr. Shepard indicated that Optima Inc. did not attempt to exceed 1206 M XWEBE participation over the duration of the project. Optima demonstrated a minimum effort to include M1W/EBEs in all trades. Optima subcontracted one large contract in each of three trades as follows: Builders Ready Mix received 98% of EBE dollars. American Erectors received 96% of WBE dollars and Vasquez Tile received 68% of MBE dollars. Discussion ensued regarding the Church Street Plaza Redevelopment project and the overall lack of compliance effort by general contractors'. Mr. Peach indicated that AHBC should be required to pay the noncompliance penalty fee required by the Redevelopment Agreement for not achieving the 25% M/W/EBE participation. The total project penalty fee for 0% MA EBE participation is S300,000. The penalty fee to be paid would be based upon the percentage of MA%'!EBE compliance not achieved. Bovis Lend Lease demonstrated the best effort in subcontracting work over a number of trades. Mr. Peach indicated that it is time to close out the audit so that the M/W/EBE Advisory Committee can present the audit results to the Human Services Committee. Discussion followed regarding M W. EBE compliance for the Sherman Plaza Redevelopment Project and Main Street Marketplace. Mr. Shepard related that both redevelopment agreements contained M/W/EBE participation specifications that are closely aligned with the City's specification for construction projects above S15,000. Mr. Shepard indicated that the owner of Bond LLC called to convey that he expected Osman Construction, their general contractor, to comply with the specification for A «' EBE participation. Osman Construction has submitted an initial compliance report of 30.65% M/W/EBE participation. Mr. Shepard indicated that M.'W EBE participation would have to be confirmed at 30.65% through an interim compliance review that entails job -site visits. Motor Fuel Tax (MFT) Proiects Mr. Shepard reported that MFT funded projects now come under M.W EBE compliance guidelines. Such projects should add S200-S300 thousand dollars per year to overall M,W EBE participation. There being no further business, the meeting adjourned at 8:00 p.m. DRAFT The General Meeting Minutes DRAFT Small Business Development advisory Committee For Minority. "'omen and Evanston Business Enterprise July 14.2004 Members Present: Dick Peach, Chairman. Brian Harris, Bennie Jones, lonel] Nimock. K',Ta Walsh Members Absent: Natalie Birk, Horace Payne, Tracey Wallace Staff Present: Lloyd W. Shepard SUMMARY OF EVENTS 1. Call to Order Mr. Dick Peach, Chairman, called the meeting to order at 7:00 p.m. II. Approval of April 9, 2003 February 11, 2004 and March 10, 2004 minutes. The above Minutes were approved without revisions. III. Introduction of New Members/Mission Statement Mr. Peach introduced Ms. Jonell Nimock one of two new MWEBE Advisory Committee members. Mr. Tracey Wallace, the other new member, was absent due to a previously scheduled activity. Ms. Nimock is an accountant employed at Northeastem University, Chicago, Illinois. Mr. Peach next reviewed Resolution 7I-R-97, "To Reorganize the Minority Business Enterprise Advisory Committee of the City of Evanston" which addresses the authority and responsibility of the MWEBE Advisory Committee. This Resolution clearly defines the scope of work for the Advisory Committee and it is essential for new members as well as incumbent members to be cognizant of the scope of the Resolution. Each of the Resolutions fifteen objectives were discussed and evaluated as having been accomplished or as objectives that are open-ended. Church Street Plaza was used as an example of how to seek compliance with the City's objectives to include M. W EBE participation in construction projects. Additionally, Mr. Peach indicated that the promotion of opportunities for goods and services from targeted vendors is achieved by the Business Development Coordinator, Lloyd Shepard, and Purchasing Department personnel holding an Annual Diversified Business Fair and by attending such events held by the City of Chicago, Northwestern University and other public and private sector agencies and businesses. Draft Not -:approved Advisory Committee Minutes July 1.1, 2004 Page 2 of 4 III. Mission Statement Cont. Mr. Shepard conveyed that technical and financial assistance is rendered to vendors by referrals to organizations and governmental agencies, particularly state and federal, for technical assistance. Construction Contractors Assistance Organizations either provide direct technical assistance to contractors or have consultant's that may be under contract to the Minority Business Development Agency or the Small Business Administration to render assistance. Financial assistance is addressed by referrals to the local Small Business Development Center and by the City's Annual Financing Seminar with panelists from the local banking community. Further, Mr. Jones pointed out that contract compliance is difficult to achieve on projects like Church Street Plaza because the Advisory Committee's and MIW/EBE staffs perspective regarding MWEBE participation was not incorporated into the redevelopment contract language on the front end. Job training and employment have been addressed through each Sewer ReIief Project that requires a Job Training Program and/or an Employment Program. Capital Improvement construction projects do not require a training program or an employment program. Employment is obtained from the general contractor or subcontractor on an as needed basis and such contractors are not required to hire just Evanston residents but must provide equal employment opportunity to all citizens. Mr. Shepard added that aside from the Sewer Relief Projects, African American residents of Evanston are having difficulty in finding employment for construction work in Evanston. There is a preponderance of Latino Americans filling the requirement for minority workers, The union also is responsible for assisting in the equal employment opportunity for "minority" workers. The preponderance of Latino American workers that cause the diminished hiring of other "minority" workers may be in violation of Executive Order 11246 and the Office of Federal Contract Compliance Programs, Part 60-4, Construction Contractors — Affirmative Action Requirements. Mr. Peach indicated that all fifteen objectives have been addressed and continue to be evaluated for additional effort when needed. The Advisory Committee as charged established an Evanston business "Local Preference" policy as well as a major revision to "determining the basis for confirming the status of a firm as an Evanston business." Discussion then ended on Resolution 71-R-97. Draft Not -Approved MAVIEBE Advisory Committee Nlinutes July l4, 2004 Page 3 of 4 IV. Staff Report Citv Council Awards — Contracts >/= S15.000 TOTAL AWARDS YTD MBE S 1,095,090 (I 1.80%) WBE 448,776 ( 4.85%) EBE 90.900 ( 1.00%1 Total U 63-4 ft_6 ( 17.65%1 S 9,246,175 (100%) Mr. Shepard next reported on M/W/EBE participation in Main Street Market PIace. Main Street Market Place Redevelopment Proiect Total Project Cost MBE WBE EBE Total S I ,190,763 (25.75 %) 161,000 ( 3.48%) 62.675 ( 1.36%) UAL4,43$ &"-Yo S 4,623,434 (100%) Mr. Shepard next summarized the resolution of two compliance issues regarding (1) a Motor Fuel Tax (MFT) funded project and (2) a Capital Improvement Project. The MFT project was rebid because the low bidder requested a waiver of the 25% M/W/EBE participation goal without having the required documentation to verify that a good faith effort was made. The same general contractor was the successful bidder on rebid and responded with a 40% M/W/EBE participation. The low bidder for resurfacing Isabella did not complete all required M/W/EBE compliance documents. The award of the contract was not officially made until the bidder submitted all required compliance documents. The bidder exceeded the 25% M/W/EBE participation goal by achieving 28%. Sherman Plaza Redevelopment Mr. Shepard reported that the Sherman Plaza Redevelopment Project is underway with the demolition of the old municipal parking garage. The garage demolition should be completed in two months, which means the end of September or Mid October. The Initial Construction phase of Sherman Plaza should begin in November. Draft Not -Approved .N1/%V/EBE Advison• Committee Minutes July 14, 2004 Page 4 of 4 Sixth Annual Diversified Business Fair & Third Annual Financine Seminar The Business Fair was held for the first time at a location, the Evanston Hilton Garden Inn, away from the Civic Center. Twenty-one Buying organizations from both the public and private sectors hosted tables to provide vendors with information about business opportunities within their companies. The fair was well attended by representatives of 142 companies. The attendance at the Third Annual Financing Seminar dropped off substantially. The previous two seminars each had attendance of 40 to 50 people. Fifteen people attended this seminar. Because the seminar ran concurrently with the Business Fair, it was speculated that the drop off in attendance was due to this. Future seminars may have to be scheduled independently as before and moved back into the Civic Center or perhaps into the Library. Parking is always a major concern. V. Old Business Church Street Plaza Audit Mr. Dick Peach discussed the compliance difficulties experienced by the M/W/EBE Advisory Committee and Staff with Church Street Plaza. Mr. Peach emphasized that the fee set forth in the redevelopment agreement should be levied against the developer based on the percentage of noncompliance with the 25% M/W/EBE participation goal. Mr. Peach added that this step must be taken in order for both developers and contractors to understand that the City of Evanston takes the M/WiEBE objectives seriously. It was decided that the next committee meeting would be held August 251h. The entire meeting will focus on a review of the Church Street Plaza Audit Report. The M/W!EBE Committee will subsequently meet with the appropriate City staff and Council members to discuss its conclusions. VI. Adjournment There being no additional business, the meeting was adjourned at 8.35 p.m.