Loading...
HomeMy WebLinkAboutMinutes 2005DRAFT The General Meeting Minutes DRAFT Small Business Development Advisory Committee For Minority. Women and Evanston Business Enterprise Januan• 12, 2005 Members Present: Dick Peach. Chairman. Brian Harris, Jonell Nimock, Kyra Walsh Members Absent: Natalie Birk, Bennie Jones, Horace Payne, Tracey Wallace Guest Present: George Mitchell and Hollis Settles, Evanston NAACP ,',. Staff Present: Lloyd W. Shepard 17;' SUMMARY OF EVENTS; :,.• 1. Call to Order Mr. Brian Harris, Acting Chairman, called the meeting to order at 7:10 P.M. 11. Approval of December 4, 2004 Minutes The above :Minutes were approved as read. III. Staff Report Sherman Plaza Redevelopment Project Mr. Shepard opened the meeting by reporting on Sherman Plaza Redevelopment Project. Mr. Shepard indicated that as of a meeting January 18, 2005 with W.E. O'Neil Construction Company and Focus Development there were no subcontracting opportunities executed. W.E. O'Neil Construction Company had been allocated S3 million to work with and was proceeding with the installation of caissons for the garage. Gary Stratman, Project Director, O'Neil, indicated as soon as they had additional funds released to execute contracts, the executed contracts would be reported. Mr. Shepard conveyed that Focus Development did not have any subcontracting to report. Nor did Focus discuss any steps that have been taken to obtain MIWJEBE participation. Focus will report as contracts are executed. Sewer Relief Project. Phase X Contract B Mr. Shepard conveyed that Benchmark Construction Company, an MBE, is the apparent low bidder at S7,148,666 for this project. Mr. Shepard indicated MIWIEBE participation would be reported on a monthly and YTD basis. Draft Not -Approved MIWIEBE Advisory Committee Minutes January 12, 2005 Page 2 of 2 Emnlovment Prou am for Evanston Residents — Construction Proiects Mr. Shepard related that the Employment Program had not been discussed at the Department Head level and based on informal feedback, if such a program is implemented it will not be administered by the M/W/EBE Program. It seems that the most appropriate Department to manage such a program is Human Relations given that EEO is part of its scope. IV. Old Business Presentation to the A&PW Committee Mr. Shepard indicated the MAN'-'EBE Advisory Committee could not be scheduled this month for a presentation at the A&PW Committee meeting regarding the Church Street Plaza MAVIEBE Audit Report. Mr. Bennie Jones suggested that a letter requesting such an appearance at the A&PW Committee meeting be sent to either Mrs. Judy Aiello or Mr. Bill Stafford. Mr. Peach reiterated that the meeting he and Mr. Jones had with Mrs. Judy Aiello and Mr. Bill Stafford went well. Mr. Stafford agreed that it is necessary to have the presentation to affirm that the City fully supports the M/«'IEBE Participation Program. It is estimated the fine for M[W EBE noncompliance for Church Street Plaza would be a minimum S 100,000. The proceeds would be deposited into the City's job training program. Mr. Peach added that an article would soon be published in the Chicago Tribune regarding lack of employment of Evanston residents on City construction projects. V. Adjournment With no further business to discuss the meeting was adjourned at 7:55 p.m. DRAFT The General Meeting .Minutes DRAFT Small Business Development .Advisory Committee For Minorite, Women and Evanston Business Enterprise March 9, 2005 Members Present: Dick Peach. Chairman, Brian Harris, Jonell \imock. Tracey Wallace Members Absent: Bennie Jones Guest Present: Lisa James Staff Present: Lloyd W. Shepard SUMMARY OF ACTIONS I. Mr. Dick Peach, Chairman. called the meeting to order at 7:00 p.m. II. The February meeting was cancelled due to lack of a quorum and consequently no minutes. III. Church Street Plaza Audit Report Presentation: Mr. Dick Peach opened the meeting by announcing that the M/W/EBE Advisory Committee would make a formal presentation of the CSP Audit Report to the A&PW Committee March 28, 2005. Mr. Peach summarized, for the Advisory Committee's consideration, the suggested talking points outlined below. • A review of Ordinance 71-R-97 reorganizing the M,`%V[EBE Advisory Committee and defining its scope. • Discussion of the CSP Redevelopment Agreement and what it clearly states regarding a penalty for the Developer's non-compliance with the required M/W/EBE participation goal. • Since a penalty, or levying of a fine, is predicated upon the Developer's good faith effort in attempting to achieve the 25% M/W/EBE participation, the Developer's demonstrated lack of a good faith effort should be enumerated. • A packet containing the Agenda Item Summary, the .audit Report and an outline of the Developer's inertia toward a good faith effort for M/W/EBE participation. Mr. Peach expressed that any concerns that City staff may have regarding their responsibility for the Developer's lack of good faith effort is unwarranted. Mr. Peach expressed that the Developer seemed to perceive that the Redevelopment Agreement provisions lacked enforcement and acted accordingly. Draft -Not -Approved MAN7EBE Advisory Committee Minutes March 9. 2005 Page 2 of 2 An area of constant disagreement between the Developer and City Staff was that the Redevelopment Agreement did not define the exact compliance schedules and documents required from the Developer's general contractors, subcontractors and suppliers. Even though the exact compliance schedules and documents were not specified in the Redevelopment Agreement, the Agreement states that the "Developer agrees to designate a staff person or other individual to coordinate MAWEBE utilization with City Staff. Said staff person will secure the appropriate reporting and compliance documents from construction and service contractor s working on the Development and forwards them to City Staff. Additionally, said staff person will work with the City Staff to monitor the aforementioned reporting and documentation procedures and to investigate and resolve any resulting discrepancies." Next, Mr. Shepard covered the MAWEBE participation and compliance issues for each component of the CSP Audit Report, i.e., the Pavilion, Maple Street Garage, McDougal Littell Building. Hilton Garden Inn and Optima Views Condominium. After Mr. Shepard summarized the MA%'; EBE status for each component of the project, Mr. Peach indicated that the information presented supports his contention that the Developer. Co -Developers and general contractors with the exception of Bovis Lend Lease, did not put forth a good faith effort. Many of the companies that general contractors attempted to take MIWIEBE participation credit were not certified and some were brokers. With the McDougal Littell building, over half of the total project costs were excluded. Even with the exclusions, the general contractor was unable to achieve the 254,6 M W EBE objective. W. There being no further business, the meeting was adjourned at 7:55 p.m. DRAFT The General 3feeting Minutes DRAFT Small Business Development Advisor} Committee For Minority. Women and Evanston Business Enterprise April 13. 2005 Members Present: Dick Peach. Chairman. Bennie 1o:.cs. Brian Harris. Jonell \imock, Vaughan Jones. Joanna Goodson. Tiffany Farhs Members Absent: Tracey Wallace. Lisa James Guest Present: George Mitchell. Hollis Settles Staff Present: Lloyd W. Shepard SUNIMARV OF ACTIONS I. Cali to Order .fr. Dick Peach. Chairman, called the meeting to order at 6:52 pan. II. Introduction of New MAVIEBE Advisory Committee lfembers & Orientation The meeting opened with an introduction of three new members Vaughan Jones, Joanna Goodson and Tiffany Farris. Mr. Peach proceeded with an overview of the scope t 71-R-971 of the Advisory Committee detailing its policy making responsibility and oversight role. Nfr. Peach explained that the Commince is preparing to present the findings of the Church Street Plaza Audit Report to the A&PW Committee. The Audit report provides a detailed review of the effort made to achieve compliance by the developer, Arthur Hill & Company. Hill's co -developers and the project's general contractors. Mr. Peach cited serious compliance issues that were encountered during the construction of the Maple Street Garage. Hilton Garden Inn and the McDougal Littell Publishing Company Building. III. %I/► IEBE Advisory Committee Emaloyment Program The effort by the Advisory Committee in developing a proposal addressing employment of Evanston residents on City of Evanston construction projects was recapitulated by Mr. Peach. The proposal points out how City funds have been used for Sewer Relief training programs and employment programs just for Evanston residents and a purchasing preference program just for Evanston businesses. Given these two predicates it would seem that an Employment program could be established using the predicates as precedents. Mr. Peach concluded that ultimately any effective change to the current employment program provisions requiring the hiring of Evanston residents on City funded construction projects would have to be legislated by the City Council. I11. Church Street Plaza Project Audit Retort Discussion resumed regarding M W EBE compliance on the Church Street Plaza Project and how the City waived over 50% of the hard construction opportunities for M W EBE participation. Even after allowing the waiver, the General Contractor only reported a 16.4% M/WIEBE participation. Mr. Peach indicated that the City would not repeat such a waiver on the Sherman Plaza Project. A question was then raised regarding how General Contractors are monitored for compliance. %fr. Shepard answered by providing an explanation composed of the three phases of compliance, i.e.. initial, interim and final. Draft dot -Approved \1/W/ES£ Advisors' Committee Minutes Apr11 13.200S Page 2 of 2 Mr. Peach proceeded with a suggestion that the .LLfit' EBE Committee change the date to.May 23. 2005 for presenting the CSP Audit Report findings to the ASPW Committee. Discussion ensued regarding presenting the Audit findings to a Committee that will most likely have new City Council members. However, consensus was reached on the point that new members could be objective in assessing the information presented and that May 23`d was appropriate. V. Adjournment There being no further business, the meeting was adjourned at 8:25 p.m. DRAFT The General Meeting Minutes DRAFT Small Business Development Advisory Committee For Minority. «'omen and Evanston Business Enterprise ,tune 8.2005 Members Present: Dick Peach. Chairman. Joanna Goodson. Brian Harris. Lisa James. Jonell Nimock, Tracey Wallace Members Absent: Tiffany Farris. Berrie Jones. Vaughan Jones Staff Present: Lloyd W. Shepard Sni' VARY OF ACTIONS I. Call to Order Mr. Dick Peach. Chairman, called the meeting to order at 6:51 p.m. 11. Approval of March 13, 2005 and April 13, 2005 Minutes Jonell Nimock motioned for the Minutes to be approved as read. The motion was seconded by Brian Harris and carried. III. Chairman's Report Mr. Peach summarized the response to the presentation made by the'vS/WIEBE Committee. `lay 23. 2005 to the A&PW Committee. Mr. Peach indicated that the A&PW Committee has not provided any feedback. After the A&PW Committee presentation. Alderman Baptiste. Chairman. referred the audit report to the CDBG Committee. %lr. Peach expressed that he disagreed with the referral and sent an email to Alderman Baptiste that evening. alderman Baptiste in turn forwarded the email to Alderman Rainey who is now sen-ing as Chair of the A&PW Committee. Mr. Peach will attempt to ascertain when and how the A&PW Committee will respond to the May 23, 2005 presentation prior to the next `i "V EBE Committee meeting. Additionally. Mr. Peach conveyed that Mr. George Mitchell, President. NAACP is concerned that the Committee stay on top of the audit findings with City Council. W. Mitchell has volunteered to address before the A&P"' Committee and City Council the importance of the audit report bring enforced. IV. Staff Report Mr. Shepard opened with a status report for the Annual Supplier Diversity Conference and the Annual Financing Seminar. %lr. Shepard conveyed that the final stage of preparation for both events was in process. There are twenty private and public sector Buying Organizations confirmed to host tables. Representatives of three local banks. the Small Business Development Center and Merrill Lynch will serve as panelist for the Financing Seminar. Separate Byers were published for both events so that the Financing Seminar would not be noticed. The only concern with this seminar is the room has a fire code maximum seating capacity for twenty-five people. Draft Not -Approved NIAVIEBE Advisory Committee Minutes April 13.2005 Page 2 of 2 Advertising for both events is being assisted by the Women%, Business Development Center. the Chicago Minority Business Development Center. the Hispanic American Construction lndustry Association. and the Evanston Chamber of Commerce. Next, fir. Shepard reported on the Sherman Plaza Project. Mr. Shepard indicated that Evanston residents continue to seek employment at Sherman Plaza. Mr. Shepard advises residents to continue seeking employment there but that he cannot mandate hiring since he is constrained by the redevelopment agreement. The current status of resident employment for N% E. O'Neil is four. three minorities and one majority. Focus Construction has two majority residents, one male and one female. working in staff positions. \fr. Brian Harris requested the percentage of Evanston residents working on the project. Mr. Peach indicated that before another redevelopment agreement is signed, the language addressing employment of Evanston residents should be modified to impose job requirements for Evanston residents on contractors. The premise is the City can mandate that a certain percentage of jobs go to Evanston residents when a project is financed 100% with City funds. Mr. Shepard added that the City's Legal Department is re,6ewing the legality of such a mandate. The Committee requested a coPy of the employment section of the redevelopment agreement for their review and assessment. Next, Mr. Shepard prodded a summary of the Sherman Plaza Project's M/W/EBE participation. W.E. O'Neil reported participation of S6.312.(KJ8 or 14.8% to total project hard costs of S42.575.9 77. The present M'WIEBE credit issue with W.E. O'Neil is Diamond Rebar, a company that is currently seeking female ownership status. Diamond Rebar has applied for certification with the City of Chicago and the Women's Business Development Center. O'Neil had credited Diamond at S2.3 75.429 or 5.6%. However, this dollar amount has been placed in suspended status reducing the amount of M/W/EBE credit for O'Neil to S3.936,579 or 9.210, Focus Construction reported M IV EBE participation of SS.-JA.107 or 20.7% to total project hard cost of S42.208.417. The M IV IBE credited amount was based on executed and unexecuted contracts. Total executed contracts for which credit can be given are 5453.347 or 1.100. Suspended credit amounted to S8.290, 760 or 19.6%. Mr. Shepard indicated that it appears Focus is not exerting, itself to achieve the %tINVfEBE participation of 250 o. V. Adjournment With no further business, the meeting was adjourned at 7:40 p.m. w DRAFT The General Meeting Minutes DRAFT Small Business Development Advisory Committee Far Minoru}. Women and Evanston Business Enterprise July 13.2005 Members Present: Dick Peach. Chairman, Brian Harris. Jonell Nimock Members Absent: Bennie Jones, Vaughan Jones. Joanna Goodson, Tiffany Farriss, Tracey Wallace. Lisa James Staff Present: Lloyd W. Shepard SUMMARY OF ACTIONS 1. Call to Order Mr. Dick Peach. Chairman. called the meeting to order at 7:00 p.m. II. Approval of June 8, 2005 Minutes Due to not having a quorum approval of the minutes were tabled until the next meeting. 111. Chairman's Report Mr. Peach opened by reviewing his meeting with .Lis. wary Lurich, CEO, Mather Lifeways. Their meeting focused on MWEBE participation in and Evanston residents employment on the upcoming construction of Mather's new facility. Ms. Lunch agreed to include a MWEBE component in the project. One of the highlights of this project is the soft cost requirements are being fulfilled by Evanston companies, e.g., architectural, engineering and landscape design. Mr. Peach added that he indicated that Evanston would like to see a workforce that represents ethnic makeup of Evanston. Mr. Shepard mentioned that the Law Department is researching whether the City could legally require contractors to hire Evanston residents on construction projects. Mr. Peach next reported that he sent an email to Alderman Rainey regarding the Church Street Plaza Audit Report presentation made by the %IWEBE Advisory Committee in May. Mr. Peach was querying to determine the status of the A&PW Committee's review of the Audit Report. alderman Rainey requested additional time for the A&PW Committee to review the report. Mr. Peach voiced concern about the Employment Section of the Sherman Plaza Redevelopment Project Agreement. Mr. Peach stated the Employment Section was impotent because it does not require that general contractors and subcontractors hire Evanston residents. Mr. Shepard informed the Committee that his cursory review of the Law Department's research reflects that a study- (such as a disparity study) must be done to demonstrate that non -Evanston residents are responsible for the loss of employment by Evanston residents. It seems the courts position is if unemployment is high for Evanston residents, it is incumbent upon Evanston residents to seek employment elsewhere. Draft Not -Approved MAWEBE Advisory Committee Minutes July 13. 2005 Page 2 of 2 IV. Staff Report Mr. Shepard conveyed that City Staff met last week with staff of W.E. O'Neil and Focus Construction. The meeting focused on progress toward meeting the 25% MWEBE participation goal. Mr. Shepard related that W.E. O'Neil appears to be making progress but that he is very disappointed with the progress of Focus Construction. fir. Shepard indicated that Focus' MWEBE participation could only be approved at 1.1% due to two companies having approximately S5.5 million in suspended status. Mr. Shepard perceives the suspended status of these two companies possibly turning into a major issue. Another upcoming issue could be Focus' interpretation of the Redevelopment Agreement that clearly defines the various buildings as separate units or components. Focus' position is that the Redevelopment Agreement is not based on individual components with separate goals but the entire project is dedicated to one 25% goal. Therefore, MAVEBE credit can be aggregated for all components. tiir. Shepard conveyed to Mr. Gary Collins, Focus Construction, that the City did not agree with that interpretation of the Agreement. Mr. Peach stated that such a disingenuous position is why there must be a fine for lack of compliance Church Street Plaza. Mr. Shepard provided the section of the Redevelopment Agreement covering the unitary MWEBE participation goal to Committee members. It was agreed among Committee members that an aggregated participation goal for the three structures was incorrect. Mr. Peach is to speak with Mrs. Judy Aiello to ascertain if the Committee's understanding of three units is correct. Mr. Peach belies three units is the intent of the City. Mr. Shepard pointed out a second time that W.E. O'Neil seemed to be making some progress. However, S2.4 million in MWEBE credit had to be removed because a WBE, Diamond Rebar is not certified. This action reduced O'Neil's participation percentage from 18.9% to 12.3%. Mr. Shepard next reported on the Seventh Annual Supplier Diversity Conference to be held at the Evanston Library tomorrow. Caremark RX and Motorola cancelled but we still have 18 Buying Organizations. V1. Adjournment The meeting adjourned at 7:45 p.m. DRAFT The General Meeting Minutes DRAFT Small Business Development Advisory Committee Far %Iinori*,. Women and Evanston Business Enterprise 14 September 2005 Members Present: Dick Peach. Chairman. Brian Harris. Lisa James, Tracey Wallace Members Absent: Bennie Jones, Vaughan Jones, Joanna Goodson, Tiffany Farriss, Staff Present: Lloyd W. Shepard SUMMARY OF ACTIONS I. Call to Order Mr. Dick Peach. Chairman, called the meeting to order at 7:00 p.m. 11. Approval of June 8 and July 13, 2005 Minutes Due to not having a quorum approval of the Minutes were tabled until the next meeting. II. Chairman's Report Mr. Peach opened by citing correspondence with Alderman Rainey regarding the M/W/EBE Committee's Church Street Plaza Audit Report presentation before the A&PW Committee in June 2005. The report outlines all the MIWIEBE participation compliance problems encountered during the project. Mr. Peach first corresponded with Alderman Lionel Jean -Baptiste who was the seated Chair of the A&PW Committee when the presentation was made. Subsequently, Alderman Baptiste deferred to Alderman Rainey as Chair of the A&PW Committee and Mr. Peach has since corresponded with Alderman Rainey. After several follow ups Mr. Peach emailed Alder Rainey informing that it had been three months since the findings of the audit report were presented. Mr. Peach and the M/W EBE Committee's concern is that without a resolution to the Church Street Plaza Project's Audit Report noncompliance issues, compliance issues that arise on the Sherman Plaza Redevelopment Project will not be taken seriously by its developers or general contractors. The M, W/EBE Committee views resolution to the audit report as an urgent priority that cannot be resolved without the Citv Council's ruling. IV. Staff Report Mr. Shepard reported that W.E. O'Neil Construction Company's M/W/EBE participation is 17% due to lack of purchase orders or contracts being issued to 17 M/W/EBEs credited by W.E. O'Neil. The total dollar amount for suspended companies is S l ,640,994. Once proof of purchase orders or contracts with Draft Not -Approved :NtAVIEBE Advisory Committee Minutes 14 September 2005 Page 2 of 2 suspended EBEs are received; Nk.E. O'Neil will be approved for total N1/iWEBE credit at 21.5%. Mr. Shepard reported that Focus Construction currently is credited with MAWEBE participation of 1.8%. Focus' lack of M AV/EBE participation is hinged on t►vo companies that have been suspended, McHugh/Riteway Joint Venture and Extra Clean Incorporated (ECI). Suspension will end once a determination is made on the legitimacy of the joint venture and ECI as a supplier of HVAC equipment. Mr. Shepard indicated that ECI had been disqualified as a distributor to W.E. O'Neil Construction on the Church Street Plaza Project for close to S1 million. The approach ECI and Focus Construction are using for claiming GIBE credit for Sherman plaza mirrors the approach used for Church Street Plaza. Next, Mr. Shepard reviewed the issues involving the legitimacy of the McHugh/Rite►vay joint venture. fir. Shepard first had the M/WrEBE Committee review the Federal Guidelines for a majority/minority joint venture. A decision to approve or disapprove the joint venture would be predicated upon such guidelines. Mr. Shepard added that the joint venture's principals have not provided the appropriate documentation in accordance with Federal Guidelines plus on -site visits had not provided proof of (1) a clearly defined scope (role) for Riteway Construction, (2) on -site management and supervisory personnel for Riteway and (3) identifiable workforce for Riteway Construction Company. V. Adjournment Having no additional business, the meeting was adjourned at 8:00 p.m.