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HomeMy WebLinkAboutMinutes 1997 - 1998PE Ai MINUTES OF THE MBE/WBE/EBE CONIIVII = MEETING OF TUESDAY, MARCH 18, 1997 Members Present: Members Absent: Guests Present: Staff: Summary of Action: 7:00 P.M., ROOM 3630 CMC CENTER Tricia Burke, Carl Davis, Michael DeVaul, Don Horton, ViWitliam Jackson, George Lytle, Leon Robinson, Jr., Morris Robinson, Deborah Sawyer Terry Jenkins, James Walker Bennett Johnson, Evanston NAACP; Vincent Taylor, Accountable Business Associates; Claire Williams, Environmental Design Intl. Lisa E. Lewis, M/W/EBE Program Director The meeting was called to order at 7:10 p.m. by Committee Chairman, Morris Robinson. (Note: All further references to "Mr. Robinson" indicate Committee Chairman, Moms Robinson unless other wise indicated) Mr. Robinson started by introducing Lisa Lewis, the City's new M/W/EBE Program Director, and asked her to comment on her background. Ms. Lewis stated that she was previously employed by the City of Chicago for almost eight years in the Contract Monitoring and Compliance Unit. She indicated that while with the City of Chicago she held progressively responsible positions starting as a Contract Compliance Officer and ending as a Contract Negotiator. In her last position she was essentially the Assistant Director of the Unit. Mr. Robinson stated that it was self-evident that Ms. Lewis comes extremely qualified for the position, and he personally believes she is committed to this position. He then told the Committee it must make the effort to get behind Ms. Lewis and to let her know who her constituents are because she is in a tough position. He also pointed out to Ms. Lewis that there were "some pretty jaded individuals in the room, who have seen it all, time and time again." Mr. Robinson then welcomed her aboard, and she indicated that she is excited to be here. Committee members and guests then introduced themselves. Referring to the agenda, Mr. Robinson indicated there were many issues left hanging since the Committee last convened. He said it is up to "us" (the Committee) to help Lisa help them. MBEAVBE/EBE Pro gElm Goals and Objectives: Mr. Robinson indicated the Committee made some goals and objectives in the past, and that those goals are now "shifting sands." He said the group should give some thought as to what their thrust should be now, and not rely on City representatives to dictate their goals and objectives. He added that some previous goals may still be valid. He noted that one of the goals to maintain is to mentor other businesses in the areas of bonding certification and subcontracting. Mr. Robinson also said that one of the key ongoing issues is the lack of money flowing to the minority and women business community. Ms. Lewis was asked to comment on her goals and objectives as the new MIW/EBE Program Director. She stated her number one goal and objective is to create opportunities for Minority, Women and Evanston businesses within the City of Evanston. She noted her primary goal could be reached in a number of ways including injecting herself wholeheartedly into the procurement process. Another key objective she indicated is updating the directory and database of Minority, Women and Evanston businesses. She stressed this was important because in order to increase City business to MBEs, WBEs and EBEs its important to identify them. Ms. Lewis also said she will need the Committee's help and that it should be a partnership effort to fulfill her goals and objectives. Mr. Robinson noted the Committee put together an M IEBE Directory three years ago and that Northwestern University (NWU) recently built on it. He offered to get the name of Ms. Lewis' counterpart at Northwestern with hopes of securing their directory. He indicated that to duplicate NWU's efforts could be a tremendous task. Ms. Lewis welcomed the suggestion but indicated it would probably be helpful to have an in-house database. And she noted that she is currently working on a database registration form. One of the attendees mentioned that contract specification language was a recurring issue that should be addressed. It was noted that the documents often contain restrictive requirements regarding business age and size and/or product specifics. Additionally, it was mentioned that the procurement policy of securing bids on small orders from a vast amount of vendors should be reviewed. The possibility of limiting the number and type of firms solicited should be investigated. Ms. Lewis said that she would review the possibility of limiting purchases of a certain dollar value to NM/EBEs and Mr. Robinson indicated that a similar suggestion has been on the table. A question was raised as to the e)dstence of a no bid procurement policy that a former MBE Coordinator, Harlan Mayberry, employed to award contracts to M/W/EBEs in the past. It was also indicated that Mr. Mayberry worked with the City departments to outline their anticipated needs and to identify where M/W/EBEs could be used. Mayberry also reportedly encouraged MBEs, WBEs and EBEs to create joint -ventures in order to strengthen their bidding power. 2 It was noted that City staff has changed and there is a new Purchasing Agent and City Manager. And the question was raised regarding the affect them changes would have on the position of the M/W/EBE Program Director. The inherent "power" ofthe position was raised since the position itself was moved from the City Manager's office to the Purchasing department. It was then stated that the committee has the responsibility of helping to empower the position. Ms. Lewis added that locating the position in Purchasing will not be problematic for her, especially since she has a background in public purchasing. She indicated that perhaps she can even be more effective because the change creates a more direct relationship with the purchasing process. Mr. Robinson then reiterated the need for the Committee to support Ms. Lewis in her endeavors and for Ms. Lewis to build a constituency. It was also noted that for Ms. Lewis to be effective she needs the support of the City Manager. A question was raised regarding the M/W/EBE Program Director's role in reviewing contracts before they are let. Ms. Lewis responded by saying that she has already indicated to the Purchasing Agent that she be part of the process. The issue of the authority associated with the position was raised again. The partnership scenario was reiterated also. It was noted that both Ms. Lewis and the Committee have ideas and suggestions they want to implement. It was suggested, however, that part of Ms. Lewis' role could be to raise the issues that as a staff person she may not be able to tackle. The Committee can then be charged with following through with the matters and "pushing" them on the outside. A follow-up suggestion was that the program and its issues be "institutionalized." It was also indicated that the personality of the individual in the position can affect its effectiveness. Mr. Robinson indicated that he wanted everyone to outline priority issues for the group's agenda. He also said it shouldn't be Ms. Lewis' sole responsibility to dictate what those issues are. He also mentioned that if necessary, subcommittees can be formed to address specific issues. The election of officers and the identification of priority issues were established as the focus of the next meeting. There then followed a brief discussion about youth training, funds for such training, and the Committee' rate in the process. The last agenda item --the Disparity Study --was discussed at length. Several committee members voiced their concerns regarding their exclusion from the final review process and then speculated on its contents. They also asked when they would be able to review it. Ms. Lewis indicated that a briefing was being planned and a public hearing would take place soon thereafter. It was then suggested that the Committee officially request to have the full report by the next meeting. Mr. Robinson asked for a motion regarding the Disparity Study. Mr. Leon Robinson made a motion to ask Ms. Lewis to provide a copy of the Disparity Study to the Committee, before the next meeting, and as soon as possible, for them to study it and provide questions to City staff. The motion was seconded by George Lytle, Mr. Robinson asked for a vote, which was unanimous in favor of the motion. 3 Mr. Robinson then indicted that if any committee members know of anyone wed in jawing the committee, they should contact Ms. Lewis. It was then discussed how someone gets on the CommittM whether they were appointed by the City Manager or the Mayor. It was concluded that the group serves at the behest of the City Manager, and that this not a full committee appointed by the Mayor. Committee meit*m discussed the isa w of how the committee is situated. Mr. Robinson indicated that this Committee is the only Committee at the City not duly appointed by the Mayor. He noted this issue should be considered a priority for the Committee. A final issue briefly discussed was the possible conflict of interest in serving on the Committee and bidding on City contracts. It was agreed that the issue warrants further discussion based upon additional information. W. Robinson called for additional new business. 'There being no father business, the meeting was adjourned at 8:40 p.m. NEXT MEETING: Tuesday, April V9 1997 @ 7:00 p.m. Rcq= uUy WxWood by LW E LrAis. AprU IL 1997 4 bIIN13TES OF THE MBE/'WBE/EBE ADVISORY COMbz Y A" MEETING OF TUESDAY, APRIL 15,1997 7:00 P.M., ROOM 3650, CIVIC CENTER Members Present: Tricia Burke, Don Horton, Terry Jenkins, Morris Robinson Members Absent: Carl Davis, Michael DeVaul, William Jackson, George Lytle, Leon Robinson, Jr., Deborah Sawyer Guests Present: Claire Wdliams, Environmental Design Intl., representing Deborah Sawyer Staff: Lisa E. Lewis, M/W/EBE Program Director Call to Order: The meeting was called to order at 7:15 p.m. by Committee Chairman Moms Robinson. He then indicated a quorum was not present to conduct a formal meeting. Meeting summary: ► M/W/EBE Program Director, Lisa Lewis, announced the Disparity Study will be distributed to City Council in the packet prepared for its meeting of April 28, 1997. Copies will be mailed to Committee members at the same time. Additional copies for other interested parties will be available upon the submission of a Freedom of Information request. ► The Committee Chairman asked about the City`s official stanWresponse to the Disparity Study. Ms. Lewis indicated that the document is being sent to Council as a Communication item. She added that its up to the Council to place it on their agenda. ► There was a brief discussion about the lack of a quorum. Concerns were expressed regarding the participation necessary to review the Disparity study as a group and that hopefully the low attendance was not indicative of the attention to be given to that endeavor. ► The importance of having a strong and active Committee to deal with the issues raised by the study and enlisting other interested community members to serve on the Committee was then discussed. Ms. Lewis was asked to investigate the possibility of enlisting new members. ► Terry Jenkins indicated that a fresh start would make sense, and he pointed out that the first challenge in thinking about the future is determining the role of the Committee. As an 1 Advisory Committee it should provide the necessary resources to answer questions, he noted. Additionally, W. Jenkins said most successful MBEIWBE programs prioritize the inclusion of qualified minority and women owned businesses in their purchasing practices. He said it is done because it's the "right thing to do." He also said that having Purchasing staff seek out minority and female vendors is good business, and that the City should find the largest sphere of vendors available and then have its resources penetrate that community. He indicated that of all the dialogue the Committee has had over the years, it has never disassed the policy of minority purchasing being just good hWness— a poky from which everyone will benefit. ► Members then discussed the effectiveness of the Disparity Study and changing a adwe already in place at the City. It was noted that in order to establish a program that has some longevity, it will have to be done creatively-- especially in dealing with a culture that may be resistant to change. ► It was mentioned that some of the most successful programs, mostly corporate, are spending the largest percentage of their dollars on training and development of minority and female firms. And in developing more minority and female firms that are eligible to bid for goods and services-- as time goes on, they will be stronger and able to handle larger volumes of business. ► Committee members then discussed the goal of developing mainstream businesses that happen to be owned by minorities or females. It was suggested that Ms. Lewis check with organizations that offer technical assistance to seek advice as to what similar efforts could be done in Evanston. ► A question was raised asking whether the Committee would be restructured. Mr. Robinson indicated that he would like to see some restructuring. Ms. Lewis indicated that at the very least, the Committee needs to be refocused. The bylaws need to be revised as well. The group also agreed to develop a mission statement because the task was not completed previously. ► Ms. Lewis also indicated that she has met with the Economic Development officer for the City and discussed the possibility of implementing a Contractor's Assistance program. ► Ms. Lewis reiterated that the current task for the Committee is to review the Disparity Study, raise questions as a group and then decide whether or not to create subcommittees to address any related issues. Adiournment: There being no further business or discussion, the meeting was adjourned at 7:50 P.M. Next Meeting The next meeting of the Committee will take place on Tuesday, May 20, 1997. 2 r • r General Meeting Minutes Minority, Women do Evanston Business Entsrpdse Development Committee Wednesday, February 11,1998 6:00 P.M. Present: Mike DeVaul, Chairman, Laurie Marston, Janice Sachen, Lloyd Shepard and Michael Sutton Absent: Carl E. Davis Staff Present: Judith Aiello, Lisa Lewis I. CALL TO ORDER Mike DeVaul called the meeting to order at 6:05 p.m. II. ITEMS FOR DISCUSSION Michael DeVaul opened the meeting by introducing the City's Minority, Women and Evanston Business Enterprise Program Director, Lisa Lewis. DeVaul than introduced himself and explained how he became involved with the committee. He noted that he was a member of the Housing and Community Development Committee and had been the liaison from that committee to the former M/W/EBE Advisory Committee. He continued with a brief background about the committee, indicating that the former committee had reported to the City Manager's Office. He emphasmedthat the new relationship the reconstituted committee has with the City Council is the fundamental difference between the new committee and the previous one. He underscored the fact that the Resolution that reconstituted the Committee has specific points to be addressed. DeVaul pointed out that two of the other Committee members, Carl Davis and Terrence Jenkins, were not able to attend. He also mentioned that the nine {' member Committee would be complete once liaisons from the Economic Development Committee and the Chamber of Commerce had been named. He also said the Mayor has put together a great group and thanked everyone for submitting their application and for volunteering their time, talent and input into this process. He added that he and Lisa want this to be a working and proactive committee. DeVaul then commented on his background saying that he grew up in Evanston, went to Evanston Township High School and works as the Assistant Executive Director for McGaw YMCA. Lloyd Shepard introduced himself next indicating that he has a marketing company called L.W. Shepard and Associates and he sells products to railroads and transit authorities. His background relative to this committee is his contact with various operations trying to work his way into their purchasing decisions. He also worked for the Chicago and Northwestern Railroad as a Manager for Minority Business Development once Congress made it a requirement that the railroad incorporate MBEs into their purchasing process. Additionally, Shepard has worked for the Minority Business Development Agency. The next person to introduce themselves was Michael Sutton, president of UBM Engineering. His firm does civil engineering, traffic transportation and structural engineering. He has been a civil engineer for 20 years working with the Illinois Department of Transportation for ten and with various consultants. He graduated from Northwestern University. Laurie MarstoWs introduction followed Sutton. She's been an Evanston resident since 1972 and served on the Evanston Plan Commission in the early 90s. Her professional background is in planning and most recently she worked for the Village of Wilmette for nine years. She's also worked for Waukegan, Des Plaines 2 ' A fall she started her own planning consulting firm. owed Laurie Marston. She indicated that she's been with the City • almost a year. Prior to that she worked with the City of Chicago's -ograrn for eight years. She started as a Contract Compliance as Assistant Director of the Contract Monitoring and Compliance he's really excited about the redevelopment of the committee and she's experienced some bumps and bruises in the last year while drigs off the ground. But she said she finds it challenging to create - -• ._=:.. N • •f��V^.T f� .'r��r� fit.^'.y. m the ground up. She went on to add that there really aren't a small municipalities with a M/W/EBE program and perhaps et a standard. She also thanked everyone for volunteering effort son to introduce themselves was Janice Sachen who's been in 1988. Her professional background in corporate America includes in Finance, Human Resources, Operations and Administration. rs ago she left corporate America to start her own project -rm. She was interested in the Committee because she's done a negotiations and worked with the minority vendor program at .so has been involved with the Women's Business Development Igo. nal Structurq ul then introduced Judith Aiello, Assistant City Manager for the .on who commented on the City's organizational structure. Aiello that she was really excited after listening to everyone's nd that she felt confident the program would get off the ground ientioned it was decided a while back that it would be appropriate 3 advise the City Manager's office on the program's .ceiving CDBG funds. She said that as things went here was a need for a committee to have the same _ommittees designated by City Council. The change Ancided with some other internal changes. Tonal changes made was moving the program back to e. It had been moved to the Finance Department to ng process. But according to Aiello, it was moved back ice four months ago to make sure the program revived vm an organizational standpoint. nts by thanking the Committee for their time and energy together they'll create a great program. yQ M/WJEaE Program Director .mart' duties have been to develop and implement 3 the program including monitoring contracts for M/W/EBE onitoring includes reviewing the specification to ensure anguage has been included, reviewing the Bidder's gram documentation and determining if the Contractors he program before a final payout She also conducts site visits iheprojects and reviews monthly utilization reports. cures that the contractors aren't just submitting an arbitrary ing it ed a list of activities she completed in the last year had been ttee in its pre -meeting packet. Additionally, she indicated that is to build the program. One of her other functions is to act as erson for the program to make sure that all staff has embraced rst major internal "PR" strategies that she's implementing is an 4 f internal training program at the end of the month. All department/division heads and staff that make purchases have been invited. She plans to explain how the M/W/EBE program is intergrated with purchasing policies. Another one of the functions she mentioned that is at the base of all the others is to recruit Minority, Women and Evanston Busines Enterprises to increase their participation in the City's procurement process. t There was a brief discussion about the executive summary of the disparity study that was included in the pre -meeting packets. One comment indicated the report was interesting and it seemed like it made a good case to have a program in some respects. It was also noted that one of the problems the consultants found was that the City's purchasing data was not well kept. But it was also noted that the M/W/EBE Program Director will create a better tracking system. Aiello asurred the Committee that Council is interested in a strong program, particularly in the area of Evanston businesses. Another question was raised regarding legal recommendations based upon the disparity study. Judith Aiello responded by saying that one of the things the Committee might want to do is schedule a meeting with the consultants. She also mentioned that the Law department and Purchasing will make presentations to the Committee at a future meeting. I - There was also a brief discussion about the need to build the capacity of some local firms in order to strengthen their competitiveness. The Evanston Business Development Consortium was described. Lisa Lewis mentioned that its comprised of her counterparts from Northwestern University and the Research Park. The group formed to pool resources to some degree. For instance, there may be a M/W/EBE that's done work for one of the agencies 5 that the other agencies do not know about. The Consortium held a networking session last December for agency representatives to meet local construction firms. A question was raised about the possibility of creating a specific set aside program for minority and women owned firms. It was noted that a complete discussion about the disparity study would answer the question in detail. The study was commissioned in order to determine if the City's program would meet the "Croson test!' of a legally defensible MBE/WBE program. The "Croson test" refers to the Supreme Court decision that said past discrimination must be proven in order to justify a program. Our study addressed this issue and in turn suggested some parameters for a successful program. amentioned ain. u The quality of data available to the consultants was again. Judith , } Aiello and Mike DeVaul both mentioned that part of the challenge of the } Committee is to craft a program based upon what the study did say and not what it did noL d.) Mission Statement and Resolution 71-R 97 Mike DeVaul reiterated the importance of these documents to the overall effectiveness of the Committee. He indicated that the mission should be revisited in six months to determine if it is still valid or should be revised. He also mentioned that the specific points in the Resolution can serve as a road map to the issues that Council wants to see the Committee address, e.) Goals and ohiectives Lisa Lewis reviewed the contents of the Committee binders that included a proposed work plan. It was suggested that an initial report be forwarded to Council by the end of the first quarter of the City's fiscal year (March 1 to the end of February). The plan was drawn from the tasks outlined in the Resolution. She also mentioned that one of the issues that should be addressed sooner than 6 later is that of job Training on City construction projects. The interim local business directory was a part of the binder and was reviewed. It was noted that once a formal bidden list is created in a database, the directory can be updated more frequently. It was emphasized that the directory is based upon local firms that have expressed doing business with the City at one time or another. The directory will also be updated to include minority and women owned firms (outside of Evanston). The Committee was asked for suggestions regarding format etc. They were also reminded that part of their role is to be an ambassador of sorts to the MBE, WBE and EBE community to increase our pool of Vendors in these categories. Judith Aiello also mentioned that Lisa will be meeting with each of the Department and Division heads before the fiscal year starts to discuss their upcoming capital projects. She said Lisa will then be able recruit those types of businesses and make sure they are on the bidders list. Prior to adjourning the meeting, Mike DeVaul encouraged Committee members to hold on to the various questions they raised so they can be formally addressed at a future meeting. III. ADJOURNMENT Meeting adjourned at7.40 p.m. IV. NEXT MEETING Wednesday, March 11, 1998 at 6:00 p.m. in room 3650, Civic Center. 7 .01 General Meeting Minutes Minority, Women da Evanston Business Enterprise Development Committee Wednesday, March 11,1998 6.00 P.M. Present; Mike DeVaul, Chairman, Terrence Jenkins and Michael Sutton Absent: Angela Davis, Carl E. Davis, Laurie Marston, Janice Sachen and Lloyd Shepard There was no quorum to declare. Mike DeVaul called the meeting to order at 6:23 p.m. III. APPROVAL OF MINUTES Deferred to next meeting. IV. ITEMS FOR DISCUSSION Mike DeVaul suggested that despite the lack of a quorum, the agenda items could still be discussed. Local Business Directory It was mentioned that the current directory is limited and needs to be expanded, but it is otherwise good. Local Prefgrence Policy Mike DeVaul indicated that the Administrative and Public Works (AP do VIA Committee has identified the policy as an item for future consideration. He also noted that Alderman Drummer told the AP & W Committee that since the •' t r M/W/EBE Development Committee has been reconstituted the issue can probably be addressed as soon as April. Mike DeVaul suggested to the M/W/EBE committee that the group prepare a summary document that outlines some of the pros and cons about the policy and forward it to the AP&W Committee for review and consideration (The doctnnent that was created as a result of the discussion has been attached+) Disparity StUdy It was noted that the executive summary listed several specific action oriented recommendations for the City. It was suggested that the Committee ask the City for a status on the recommendations' implementation. Specifically, the status of the recommendation of the changes to the procurement process is particularly important because the program's effectiveness is significantly tied to this area. Another point that was raised highlighted the Study's recommendation that the City identify its needs for certain goods and services for the next five years in order to match Minority and Women owned firms with those needs. Terry Jenkins underscored this point with an illustration of how the matching process should work. A recommendation was raised that the City be advised that the Committee needs access to this information in order to be more effective. It was also mentioned that the focus of program has to be clearly defined. Is the focus local preference? Is it Minority and Women firms in Evanston or should the focus be on the bigger picture of introducing more Minority and Women firms into the overall procurement process regardless of their location? An "ideal" scenario is to have a new or small firm in Evanston grow as a result of the program. But that scenario would be a trickled down effect and not a primary focus. A comment was made that City staff that purchases goods and services probably FJ r have an inaccurate perception about the M/W/EBE program. They more than likely see it merely as a social program where they are just told who to call and to place an order regardless of the price. A clearer perception would include seeing the program as a method of increasing opportunities for small firms while helping them to grow. Another comment was that the program should show the small Evanston firm how and why it should grow. It should be clearly be communicated to the local business community that the City is spending "X" dollars in "X" areas in the next five years and it would behoove the firm(s) to make some capital investments, etc. Another Study recommendation that was discussed was the one relative to integrating staff involvement in the M/W/EBE solicitation process into the employee review process. It was noted that its important to get a sense of whether or not the City Manager has embraced the program and communicated this to staff. It was agreed that a memo should be sent to the City Manager that outlines the needs of the M/W/EBE Committee in order for it to proceed more effectively and efficiently. (See attached.) It was also recommended that the Purchasing Agent be asked to respond to the status of the Study's recommendations relative to the procurement process. The Chairman said that its imperative that the committee know "where we are" before it can recommend to Council where to go next Subcommittees It was agreed that the subcommittee structure was an ideal way of working with the points outlined in the Resolution. A suggestion was made that a subcommittee could include just one person that does the research for a particular issue and reports to the full Committee. Additionally, it was suggested that depending upon the current number of subcommittees, that 3 number of Committee members should volunteer for the issue that interests them, and the remaining number of members help out on those issues that require the most work. V. ADJOURNMENT Meeting was adjourned at 8:20 p.m. VI. NEXT MEETING Wednesday, April 1..1.998 at 6:00 p.m. in Room 3650, Civic Center. 4 DRAFT Not Approved General Meeting Minutes Minority, Women & Evanston Business Enterprise Development Committee Wednesday, April 1, 1998 6:00 p.m. Present: Mike DeVaul, Chairman, Angela Davis, Terrence Jenkins, Laurie Marston, Janice Sachen and Mike Sutton Absent: Carl E. Davis and Lloyd Shepard Staff Present: Lisa E. Lewis OX431"TTIM Mike DeVaul declared a quorum and called the meeting to order at 6:08 p.m. ffl�A..►O : u I I ► 11JI 9:0u & 0 . i An u: ► r n @ in m ►o ► Mike Sutton moved to approve the minutes of March 11, 1998. Seconded by Mike DeVaul. Motion carried. No nays. M1111MIFIRINI. u.• K •i Angela Davis of Joey's Movers and Messenger, business representative from the Chamber of Commerce, was introduced to the Committee. (b) Propgsed Work Plan Mike DeVaul asked if members had any objections or additions to the proposed work plan with the realization that everything may not be completed exactly as scheduled because the Plan is aggressive. There was a question about whether or not the work plan was going to focus on Construction or be more general. It was clarified that while the plan may be general, its meant to show that the biggest piece that needs to be addressed is Construction. The other areas of procurement will be phased into the overall policy discussion. It was also explained that the basic idea of the work plan was to provide a focal point for each meeting. Another question was raised regarding the expected output of the Committee DRAFT Not Approved and if creating a written policy was the primary objective. Mike DeVaul stated that generally speaking, the Committee is expected to determine policy and direction for the entire City as it relates to Minority, Women and Evanston business participation. The City, he said, is Iooking for direction in policy development. It was also mentioned that the Disparity Study provided the basis and outline for directing that policy. It was moved to approve the work plan with the understanding that it was aggressive and all issues may not be completed exactly as stated. It was mentioned that the ideal is to submit quarterly reports to the Mayor and City Council. The current task is for the Committee to decide how those reports should "look." It was noted that the Committee's ability to work with staff on tracking M/W/EBE participation is an important aspect of successful reporting. For example, one of the reasons the City Manager was asked for an update on Purchasing activities was to determine if Purchasing is currently tracking M/W/EBEs and if not, what can the Committee do to help. It was suggested that some of the information in the response to the memo could be the basis for the first quarterly report. Additionally, it was suggested a summary be added to the report. Yet another ideas was to take the results of any needs analysis from the City and match them with the skills sets and present the matches as the second quarter report.. Another question raised was whether or not the City of Evanston has a certification process similar to the City of Chicago that designates a firm as an MBE or WBE. It was explained that a project is underway to create a formal Bidders List and corresponding M/W/EBE directory that will identify the firms as MBE, WBE or EBE. It was also noted that the report should mention that while the Committee proposes what needs to be done to collect data, build a database, etc. it should also identify the necessary resources. Thus, if it appears that the M/W/EBE Program Director needs additional assistance, that would be communicated to the City Council as well. It was also noted that the particular tasks could be completed in a shorter time frame with additional help. Northwestern University's Economic Opportunity Program and the issue of 2 M DRAFT Not Approved compliance monitoring was discussed briefly. (d) Subcommittees It was suggested that the Committee focus on one or two of the proposed subcommittees. It was asked if any of the Committee members had suggestions on which subcommittees should be prioritized. A suggestion was made that perhaps a committee be formed that helps identify the M/W/EBE community. It was noted that it wasn't on the original list of proposed subcommittees, but in light of past discussions it should be created and added. The response indicated identifying M/W/EBE firms falls under "Outreach" which already has a place in the M/W/EBE Program Director's duties. But the Committee can supplement these efforts with their input There also was a supplemental discussion about the ethnic codification of MBEs and WBEs. Mike DeVaul indicated that perhaps goal formadorvcould be the primary focus since most of the other subcommittees would fall under it. It was also noted that the crux of the committee can also be seen as goal formation. The suggestion regarding a one -person committee to take on a specific task was reiterated. It was decided to divide the bullet points listed under the activities of the goal formation subcommittee, research them and report back to the full Committee. It was also suggested that maybe there is some staff at Northwestern University that would be willing to assist the Committee is some way. There was also a brief description of using an independent consultant to supplement some of the research. Additionally, Mike Sutton indicated that he would contact an attorney named Anita Ponder and see if she will offer some assistance. Angela Davis volunteered to research other municipalities similar to Evanston to determine if other programs eAsted and if they are effective. It was noted that the next bullet point,"synthesizing an analysis of previous utilization," could probably wait until the Committee received a report from the Purchasing Agent. Mike DeVaul briefed the Committee on his conversation with the City Manager about the memo the Committee sent to him. DeVaul indicated that rn DRAFT -Not Approved the City Manger told him that staff is looking from some direction from the Committee. There was significant discussion about the response to the Committee and what direction the Committee should take as a result It was also re-emphasized that the Purchasing piece of the memo to the City Manager was important in planning the direction of Committee activities. Another part of the discussion revolved around selecting an aldermanic liaison to the Committee. Mike DeVaul mentioned that Alderman Drummer wants to discuss the local preference policy before his current Chairmanship on the Administrative and Public Work Committee expires. Members will be alerted as to when the issue will be discussed. Terry Jenkins volunteered to create an abstract about what an A W/EBE policy within the context of Evanston could mean. The abstract wouldn't be from a practitioner's point of view as in the perspective of *e M/W/EBE Program Director, but from a different context. The Committee could review it and use it as a tool. It was noted that it is necessary to define Evanston Business Enterprise for the purposes of the program and to determine if an MBE or WBE has to be officially certified. It was also suggested that the Secretary of State be contacted regarding a list of the registered and "legal" businesses that are here. Committee members were asked to forward any burning questions about the Disparity Study to Lisa Lewis, ASAP, in order for her to create a list of questions for D.J. Miller to frame their presentation around. Mike DeVaul indicated that he wants the Committee to revisit the Disparity Study and its recommendations every other meeting or so, to determine if the Committee's work plan is still in line with the recommendations. VI. ADJOURNMENT: There being no additional business, the meeting was adjourned at 7:40 p.m. VII. NEXT MEETING: An abbreviated meeting will be held from 6:00 p.m. until 7:00 p.m. The presentation by D.J. Miller will begirt at 7:00 p.m. in the City Council Chamber. 4 w DRAFT Not Approved General Meeting Minutes Minority, Women & Evanston Business Enterprise Development Committee Wednesday, May 13, 1998 6:00 p.m. Present: Michael DeVaul, Chairman, Angela Davis, Carl E. Davis, Terrence Jenkins, Laurie Marston, Lloyd Shepard and Mike Sutton Absent: Janice Sachen Staff Present: Judith Aiello, Lisa E. Lewis Others: Alysia Tate (Chicago Reporter), Melanie Harrington (D.J. Miller &Associates) and Keith Hinch (D.J. Miller &Associates) 1. CALL TO ORDER: Mike DeVaul declared a quorum and called the meeting to order at 6:15 p.m. MENET-M : wel 0, 11 oly 5-7•m, a N . 1 X-315: r ►, Nj MR Mike DeVaul moved to approve the minutes of March 11, 1998. Carl Davis seconded the motion and it was carried with no nays. ►. •: •► ra►1,•.:y •► (a) Committee Tasks Mike DeVaul asked Terry Jenkins to summarize his abstract that was faxed to Committee members. Terry Jenkins prefaced by saying that the purpose of the abstract was to summarize his vision of the M/W/EBE process and the Committee's involvement. According to Terry, the memo began with his impression that City Council, the Community and the Committee is unclear about what the Disparity Study said. He then said that private and public entities pursue two kinds of affirmative action relative to purchasing. The first is usually a set aside whereby the entity says its will set aside "X" number of purchases each year exclusively for the utilization of legally protected classes. These are generally used in DRAFT Not Approved response to a court decision that says a municipality must remedy past discrimination and level the playing field for these groups. The other form of set aside is where an entity does a Disparity Study because they have not been sued and can not rely on the courts to say that they can do a set aside and call it legal. The Study would produce the statistical evidence that suggests there has been discrimination --absent a law suit-- that would in turn give the entity a legal basis for enacting a remedy or set aside. Jenkins's continued by stating his understanding indicated that that in Evanston's case, the Disparity Study said there had been some institutional passive discrimination but without a significant statistical pattem.The question that needs to be fleshed out during D.J. Miller's presentation, according to Jenkins, is, "If [Evanston] were to rely on the reported statistics to do a set aside would [Evanston] be relying on a basis that is rather weak?" From his experience on the previous Committee, Jenkins indicated that it seemed as if there was a focus on creating set -asides and that anything less would not be acceptable. He also noted that he thinks its important to clarify what the legal basis is for a set aside and what does the Study say about that legal basis. The next topic he covered was affirmative action purchasing without a set aside program. He also outlined some the aggressive non -set aside strategies that the consultants noted that could address the disparity. His conclusion was that the role of the Committee during the Disparity presentation is to validate the ideas in the abstract and to reach a mutual understanding about what it all means. If his view is accurate; the Committee must determine how it can aggressively pursue the Consultant's recommendations. Essentially, what needs to be discussed further, according to Jenknins, is the Consultant's failure to recommend a set aside for Evanston and why it isn't legal at this time. He did emphasize, however, that there are numerous things the City of Evanston can do to increase its purchases with Minority, Women and Evanston businesses. It was noted that the Consultant's report was thorough and provided a framework for the developing the City's M/W/EBE policy and the Committee is now at the point to execute them. K DRAFT -Not Approved A criticism of the study was expressed regarding the lack of specification in the anecdotal evidence or public hearings. It was questioned whether or not the public hearings were adequate to support that discrimination existed. It was also noted that the Consultant's quantitative evidence was weak which was due in part to the data available from the City. One of the challenges as the Committee moves forward is to develop a better tracking system. It was also re- emphasized that the absence of stronger quantitative data is not a reason to do nothing, but its important to do everything, short of a set aside, to address the demonstrated disparity. Michael DeVaul reiterated to the Committee that the goal is to not focus on what the Study didn't say, but what it did.The D.J. Miller presentation is an opportunity to ask the questions about the recommendations that Terry Jenkins put a frame around in his memo. He also mentioned that at the June meeting the Committee will take the recommendations and tweak them in order to get everyone on the same page. The meeting will also be the Committee's opportunity to make some initial recommendations to City Council on what it should do with the Disparity Study including having it officially approved and which recommendation the Committee would like Council to tackle first. Laurie Marston stated that she'd like to hear Council say that are buying into the recommendations and that they agree that the program is a priority -- otherwise, "the Committee is spinning its wheels." DeVaul mentioned that it has already been asked that the Disparity Study be put on the Administrative and Public Works' (AP &W) agenda for the second meeting of the month (June 22nd) for discussion/action.The goal is to have the Disparity Study and the M/W/EBE Committee's recommendations approved at the City Council meeting. It was noted that the Committee needs to draft a concise document that rolls everything together and prioritizes D.J. Miller's recommendations. DeVaul suggested the Committee come up with three to five recommendations for Council to approve. Terence Jenkins added that its important to define what "it" is when Council is asked to "do it all" in regards to the Disparity Study's recommendations. He indicated that some of the recommendations would mean tremendous changes for the City including the suggestion for a centralized Purchasing system DRAFT riot Approved that totaling: integrates a proactive affirmative action program. He also mentioned that another issue relative to set asides that must be fleshed out is the interchange between aggessive outreach efforts to identify Minority and Women -owned Cams that can provide good and services to the City and that of an effort to recruit Evanston businesses. He gave an example that if the City increases its utilization of M/WBEs by 40% in the next two years and only 2% of those firms are from Evanston, that could be a problem. Mike DeVaul asked that the Committee re -read Terry's document in order for the Committee to use it as framework The language can be tweaked if necessary. (b) Ta.k Assignments "Best Practices" Lisa Lewis distributed a draft report of what the City Manager's Office intern, Kimberly Beattie has compiled. There was a list of contact people and a summary of her conversations with them. Additionally. Kimberly had completed a draft version of a survey to be mailed to the contact people that asks more in depth questions about their program. Lisa asked for the Committee to review the drafts and make additions or deletions. She also asked for additional places to contact Angela Davis will pick up where Kimberly leaves off once her Internship is over. "Gratis Assistance" No information was available at this time. �P)I r 13 i Michael DeVaul reiterated that the goal is to send Council a list of priority recommendations for action before its June 22nd meeting. He asked that Committee members be present at the AP && W Committee at 7:00 pm. on June 22nd. Judith Aiello mentioned that the Purchasing Agent has resigned and that the City has a new Finance Director, Bill Stafford. She has already spoken to him and Purchasing will be a top priority for him. She and Lisa will meet with him to lay out some of the issues as they see it and perhaps he %vill attend the July Committee meeting. There will, however, be an interim Purchasing Agent to 4 DRAFT -Not Approved handle. issues. She also mentioned that Lisa may be a part of the interview team in order to stress the importance of the program to candidates for the position. It was commented that the new Finance Director should be privy to what the Committee drafts relative to the prioritized recommendations in case he's asked to comment on them. A question was also raised as to whether or not the Purchasing Agent's job description will include a reference to the M/W/EBE program. The answer was "Yes." Michael DeVaul reviewed the "logistics" for the D. J. Miller presentation. VI. ADJOURNMENT; There being no additional business, the meeting was adjourned at 6:50 p.m. VIL NfM MEETING: �. The next meeting is scheduled for Wednesday, June l Oth at 6:00 p.m. in Room 3650, Civic Center. 5 DRAFT -Not Approved General Meeting Minutes Minority, Women & Evanston Business Enterprise Development Committee Wednesday, June 10,1998 6:00 p.m. Present: Michael DeVaul, Chairman, Terrence Jenkins, Laurie Marston, Janice Sachen and Lloyd Shepard Absent: Angela, Davis and Michael Sutton Staff Present: Lisa E. Lewis I. CALL TO ORDER: Mike DeVaul called the meeting to order at 6:10 p.m. A quorum was declared later during the meeting. II. APPROVAL OF MINUTES FROM THE TUNE 10TH MEETING: There was a correction made to the minutes. It was duly noted that Angela Davis had been inadvertently listed as both "present" and "absent." The correct designation was absent. The minutes were then approved once a quorum had been declared. III. ITEMS FOR DISCUSSION ANVIOR ACTION: Disparitv Studv Avoroval Michael DeVaul mentioned that he, Lisa Lewis, Lloyd Shepard and Terry Jenkins attended the Administrative and Public Works Committee (A P & W) meeting on June 22nd and that things went smoothly. H e noted that there were some questions from the AP & W Committee, but nothing they couldn't answer. Alderman Rainey wanted clarification about whether or not the fourth bullet point regarding additional resources for the M/W/EBE Program Director was a specific request for an additional staff person. She was assured that it wasn't: Additionally, Alderman Moran asked about having incentives for staff to diversify their Vendor portfolio. He was given a clearer explanation. DRAFT Not Approved Michael DeVaul also noted that now that this issue is out of the way the Committee can move forward. Discussions with staff Lisa Lewis gave a brief report about her meetings with other City staff. Specifically, she met with the new Finance Director, Bill Stafford and the Human Resources Director, Judy Witt. They are the key staff people that will be affected by the proposed recommendations. Essentially, they were asked whether or not they had any overwhelming objections to the recommendations and if they were feasible. Both of them endorsed the recommendations. Judy Witt did, however, indicate that she needed more information such as what exactly it is we will be measuring and how —basically what do we expect as the end result. She also indicated that it would not be a problem to change the evaluation forms. Similarly, Bill Stafford asked that we provide him with a list of what information we needed tracked. The only apparent glitch in moving forward with the tracking process immediately, was the Purchasing Manager vacancy. That person would be an integral link in the relationship between purchasing data, and M/W/EBE utilization monitoring. Stafford hopes to have the position filled by early September. A question was raised as to if Bill Stafford is considering a centralized purchasing process. There was no indication that he is, but again, that is something that can be discussed in detail, internally, once the new Purchasing Manager is on board. But, it was noted that the easiest thing to implement first is the revised data collection process. It was also decided that an interim tracking system be created and used until a Purchasing/Financial information management system is in place. It will take almost a year to have such a system in place. The process for securing one, however, will probably start this fall. There was significant discussion about the specific information that should be relayed to the respective City staff mentioned above. It was suggested that a draft memorandum be created and fine-tuned at the next Committee meeting. (See attached.) 2 DRAFT -Not Approved Definition of an Evanston Business Entervrise (EBEI There was a brief discussion about the response to the initial request for a definition from the City's legal department It was suggested that the request be revised to stress that it's important that the Committee be given a definition in stead of being responsible for the creation because it may be necessary to defend the definition in the event of a challenge. This issue is especially important as the Committee looks at the issue of local preference. V. OTHER BUSINESS: There was a request for information regarding the total dollar amount spent with local firms. VL ADIOURNMENT: There being no additional business, the meeting was adjourned at 7.40 p.m. VII. NEXT MEETING: The next meeting is scheduled for Wednesday, August 12,1998 in room 3650 of the Civic Center. 3 4 DRAFT -Not Approved General Meeting Minutes Minority, Women & Evanston Business Enterprise Development Committee Wednesday, July 8,1998 6:00 p.m. Present: Michael DeVaul, Chairman, Terrence Jenkins, Laurie Marston, Janice Sachen and Lloyd Shepard Absent: Angela, Davis and Michael Sutton Staff Present: Lisa E. Lewis 1. CALL TO ORDER: Mike DeVaul called the meeting to order at 6:10 p.m. A quorum was declared later during the meeting. II. APPROVAL OF MINUTES FROM THE NNE 10TH MEETING: There was a correction made to the minutes. It was duly noted that Angela Davis had been inadvertently listed as both "present" and "absent" The correct designation was absent. The minutes were then approved once a quorum had been declared. III. ITEMS FOR DISCUSSION AND/OR ACTION: Disparity Studv Approval Michael DeVaul mentioned that he, Lisa Lewis, Lloyd Shepard and Terry Jenkins attended the Administrative and Public Works Committee (A P & W) meeting on June 22-1 and that things went smoothly. H e noted that there were some questions from the AP & W Committee, but nothing they couldn't answer. Alderman Rainey wanted clarification about whether or not the fourth bullet point regarding additional resources for the M/W/EBE Program Director was a specific request for an additional staff person. She was assured that it wasn't Additionally, Alderman Moran asked about having incentives for staff to diversify their Vendor portfolio. He was given a clearer explanation. DRAFT Not Approved Michael DeVaul also noted that now that this issue is out of the way the Committee can move forward. Discussions with staff Lisa Lewis gave a brief report about her meetings with other City staff. Specifically, she met with the new Finance Director, Bill Stafford and the Human Resources Director, Judy Witt They are the key staff people that will be affected by the proposed recommendations. Essentially, they were asked whether or not they had any overwhelming objections to the recommendations and if they were feasible. Both of them endorsed the recommendations. Judy Witt did, however, indicate that she needed more information such as what exactly it is we will be measuring and how —basically what do we expect as the end result She also indicated that it would not be a problem to change the evaluation forms. Similarly, Bill Stafford asked that we provide him with a list of what information we needed tracked. The only apparent glitch in moving forward with the tracking process immediately, was the Purchasing Manager vacancy. That person would be an integral link in the relationship between purchasing data and M/W/EBE utilization monitoring. Stafford hopes to have the position filled by early September. A question was raised as to if Bill Stafford is considering a centralized purchasing process. There was no indication that he is, but again, that is something that can be discussed in detail, internally, once the new Purchasing Manager is on board. But, it was noted that the easiest thing to implement first is the revised data collection process. It was also decided that an interim tracking system be created and used until a Purchasing/Financial information management system is in place. It will take almost a year to have such a system in place. The process for securing one, however, will probably start this fall. There was significant discussion about the specific information that should be relayed to the respective City staff mentioned above. It was suggested that a draft memorandum be created and fine-tuned at the next Committee meeting. (See attached.) 2 DRAFT -Not Approved Definition of an Evanston Business Entervrise ME) There was a brief discussion about the response to the initial request for a definition from the Citys legal department. It was suggested that the request be revised to stress that it's important that the Committee be given a definition in -stead of being responsible for the creation because it may be necessary to defend the definition in the event of a challenge. This issue is especially important as the Committee looks at the issue of local preference. V. OTHER BUSINESS: There was a request for information regarding the total dollar amount spent with local firms. VI. ADTO : There being no additional business, the meeting was adjourned at 7:40 p.m. VII. NEXT MEETING: The next meeting is scheduled for Wednesday, August IZ,1998 in room 3650 of the Civic Center. 30 DRAFT -Not Approved General Meeting Minutes Minority, Women & Evanston Business Enterprise Development Committee Wednesday, August 12 1998 6:00 p.m. Present: Carl Davis; Michael DeVaul, Chairman; Terrence Jenkins; Laurie Marston; Janice Sachen and Lloyd Shepard. Absent: Angela, Davis and Michael Sutton Staff: Judith Aiello, Lisa E. Lewis and Bill Stafford. Others: Birnece Hicks and Payal Kapadid. I. CALL TO ORDER: Mike DeVaul called the meeting to order at 6:10 p.m. A quorum was declared later during the meeting. II. APPROVAL OF MINUTES FROM THE TULY gtk MEETING: The minutes were approved once a quorum had been declared. III. ITEMS FOR DISCUSSION AND/OR ACTION: Conversation with new Finance Director: Bill Stafford, the City's new Finance Director, was introduced to the Committee. He thanked the Committee for the invitation, reiterated his commitment to the ideals of the program and then outlined his purchasing philosophy. He gave examples of the spectrum between centralized and decentralized purchasing. According to Stafford, the latest "trend" in purchasing is the midpoint on the continuum. He indicated that the trend mirrors his philosophy in creating a decentralized process with centralized authority —thus creating the best of both worlds. This type of process would allow the end User department to make purchases at a set limit at a specific Vendor, while freeing Purchasing staff from getting bogged down in the process of securing small purchases. DRAFT -Not Approved This would be an example of decentralized access. Stafford also noted that the City will soon have to the opportunity to start with a clean slate once the new Purchasing Agent is hired. Stafford wants his staff to work with the Committee on several issues including tracking M/W/EBE utilization, defining MBEs, WBEs and EBEs and the issue of certification. He'd also like to work cooperatively in educating City staff to change institutional attitudes. Additionally, Stafford wants to help the Committee to come up with proactive strategies that will further the goals of the program. He cited the RFP for the water billing system that encouraged collaboration with M/W/EBEs as an example of such a proactive strategy. Stafford also noted that the new Purchasing Agent will attend the Committee meetings regularly. Certification: A discussion about certification ensued as a result of Stafford's comments. The consensus was that the process is time consuming and the City doesn't have the resources to pursue it at the time. A question was raised as to the continued acceptability of certifications from other agencies. The response was that it is a good practice to continue accepting these certifications because we have other issues to consider before embarking upon a certification process. There was also a brief discussion about matching M/W/EBEs with the City's needs. It was noted that the results of a survey of User departments' purchasing needs was being tabulated. Another issue that was raised relative to Stafford's point about defining M/W/EBEs, was whether or not the businesses of Minority and/or Women Evanston residents would be included in the definition. A brief discussion about this issue followed without a definitive conclusion being reached. Correspondence venerated by Mike DeVaul: Mike DeVaul reviewed the memos that he sent to Council and the CDBG Committee and he noted his rationale for sending them. The memo to Council regarding the Committees involvement in the Research Development was sent primarily to keep the Committee in front of the Council and to reiterate the Committee's importance as Council begins to plan the future of the Research .,: DRAFT Not Approved Park and other economic development efforts. Judith Aiello mentioned that the M/W/EBE Program Director was involved in reviewing the section in the Research Park Development Agreement relative to M/W/EBE participation. The CiVs M/ W/EBE Program Director will be involved throughout the process and will be responsible for working with the developer to assist them in meeting the M/W/EBE goals. DeVaul said the memo that was sent to the CDBG Committee was meant to keep the Committee and its activities in front of them as well. L,etal Definition of an Evanston Business Enterorise: A definition will be provided for the Committee to review at a later date. The issue of Evanston's minority firms that have businesses outside of the City was revisited as part of this discussion. Another issue was that of the distinction between small Evanston businesses and larger chains with an Evanston Iocation. One suggestion that was offered was that we consider a tiered approach to the "credit" in the program. It was also suggested that a higher Iocal preference be considered. It was decided that the next meeting will be devoted to the definition of an EBE as it relates to the overall program focus. V. OTHER BUSINESS: The Committee was asked if it was okay to reschedule the next meeting because the M/W/EBE Program Director would not be available. VI. ADIOURNMENT: There being no additional business, the meeting was adjourned at 7.40 p.m. VII. NEXT MEETING: The next meeting is scheduled for Wednesday, September 16,1998 in room 3650 of the Civic Center. 3 X . mot»---� . ,-r - - --�+�er�lir,�y'•�.l• .. _ DRAFT -Not Approved General Meeting Minutes Minority, Women & Evanston Business Enterprise Development Committee Wednesday, September 16,1998 6:00 p.m. present: Carl Davis; Michael DeVaul, Chairman; Terrence Jenkins; Janice Sachen and Michael Sutton. Absent: Angela Davis, Laurie Marston and Lloyd Shepard. StafF Judith Aiello, Herb Hill and Lisa E. Lewis. 1. CALL TO ORDER: Mike DeVaul called the meeting to order at 6:15 p.m. A quorum was declared later during the meeting. II. APPROVAL OF MINUTES FROM THE SEPTEMBER 16TM MEETING: The minutes were approved once a quorum had been declared. 111. ITEMS FOR DISCUSSION AND/OR ACTION: Evanston Business Definition A copy of the memorandum prepared by the City's Corporation Counsel, Herb Hill, was distributed (see attached). Corporation Counsel summarized the document indicating that it provided the basis for a local preference policy in accordance with the Commerce Clause. Essentially, as long as the City is acting with its own funds as a market participant (like any other business) and not as a market regulator, it can make distinctions in its vendors. For instance, if the City makes the decision to contract with "Firm A" over "Firm B" for reasons that are not illegal or unconstitutional, the City can do so, as long as there are no funds from other sources involved. Thus, if the City decides to have a policy that promotes Evanston businesses, it can do so, as long as there is a basis for it. According to Hill, as the Committee moves forward with such a policy it must determine the goal of the program such as decreasing unemployment, giving a benefit to the tax base or other economic development incentives. He suggests that further study be conducted. Once a broad goal is established, a rationale basis for the actual preference percentage must then be determined. DRAFT -Not Approved The document also references a case involving the City of Chicago and its local preference policy. Hill recommends that the Committee adopts the definition of local business as indicated in the ruling, but he reiterated that the complex issue is defining the percentage and determining the nature of the benefit in accordance with an economic impact analysis. The Committee can define a local business as it chooses, based upon the goal it determines. A local business can be defined in berms of percentage of employees, real estate taxes, percentage of revenues or other standards for economic development. Once a definition is established it should be tied into the amount of the preference, said Hill. The Commitbee'also has some flexibility in creating the preference as either a percentage or as evaluation system with points. Basically, the Committee can craft it in whatever means it sees as reasonable and rational. There was a brief discussion to clarify some of Herb Hill's points. One of the points was that the definition be based entirely upon geographic designation with out regards to race or gender. There is no economic justification for the current policy, but there have been no challenges to it probably because of the low percentage of preference. But the legal theory that we now have can perhaps give us a basis for increasing the percentage as described earlier. It was also mentioned that there has been some confusion locally in that some people think that buying from Evanstonians and from Minorities/Women is the same topic. It seems that the local thought process makes the issues singular instead of separate and distinct. It also seems as if the preference is to have an Evanston firm win a bid over that of a non -Evanston minority firm. Another question was whether or not there could be a "weighted" preference in that an Evanston Minority or Woman firm could receive a greater point value. The local preference program by definition, would be inclusive of Minority and Women owned firms which could in turn stand to benefit from the program because they are located in the geographic parameters. The bottom line could be the business tolerance level of the aldermen. In effect, the success of a local policy program will rest with how much and how often, the City wants to pay a premium price for goods and services in order to give a local preference. 2 DRAFT Not Approved Program focus The issue is whether or not we should choose a primary focus of the three areas and if so, how can we capture it. It was suggested that our focus be on Evanston Businesses first and then determine the economic issue that drives the definition Additionally, we would then need to have sessions with the aldermen in order to ensure that they have a clear concept of the definition. A motion was raised and carried that reads: The focus of the M/W/EBE Development Committee is the development of policy for procurement procedures wherever possible and practicable with a primary focus on Evanston based businesses and a secondary emphasis on Minority/Women firms outside of Evanston. Uvdate on report to Council Follow-up meetings will be scheduled with the Finance Director and the Human Resources Director to finalize the logistics for implementing the priority recommendations in order to prepare official communication to Council. V. OTHER BUSINESS: The section relative to M/W/EBE participation in the Research Park Development Agreement was discussed briefly. It was noted that copies will be mailed to Committee members for review. Comments will be entertained at the next meeting. The goal is to determine how helpful the Committee can be in assisting City staff in helping the Developer to achieve compliance. Michael DeVaul mentioned that he will work on a draft of a revised work plan for the Committee. Committee vacancies were discussed. Members were asked to make suggestions regarding replacements. DeVaul also mentioned that a Minority Evanston firm received an award from the SBA on Sept 15th. VI. ADIOURNMENT: There being no additional business, the meeting was adjourned at 7.55 p.m. VII. NEXT MEETING: The next meeting is Wednesday, October 14, 1998 in Rm. 3650 of the Civic Ctr. 3 DRAFT -Not Approved General Meeting Minutes Minority, Women & Evanston Business Enterprise Development Committee Wednesday, October 14,1998 6:00 p.m. Present: Michael DeVaul, Chairman; Laurie Marston and Lloyd Shepard Absent: Carl Davis; Terrence Jenkins; Janice Sachen and Michael Sutton. Staff: Lisa E. Lewis 1. CALL TO ORDER: Mike DeVaul called the meeting to order at 6:30 p.m. II. APPROVAL OF MINUTES FROM THE SEPTEMBER 16TH MEETING:, There was no quorum, thus the minutes could not be approved. IIL ITEMS FOR DISCUSSION AND/OR ACTION: Resolution 54-R-98/Membesship: There was a brief discussion regarding the noted resolution that revised the membership terms for the Committee. DeVaul noted that the revisions primarily provide flexibility in appointments in the event that they can not be filled as originally described. Another revision adds a year to the length of the terms. DeVaul also asked that Committee members forward names of possible candidates to himself or Lisa Lewis. Memo to Council re Research Park Development: The draft version of the document was reviewed, discussed and revised. It was noted that is was important to let Council know that the Committee thinks the 25% goal is significant and that it will do all it can to assist the M/W/EBE Program Director in helping the Developer comply. It was also mentioned that the Developer should be encouraged to quickly name a person within their organization to work with the City's M/W/EBE Program Director in the event the project is approved. Michael DeVaul said he would go to the final public hearing for the project and read the Committee's memo aloud to City Council to make it a matter of public DRAFT -Not Approved record. There was also a discussion about whether the 25% goal would be applied to the overall dollar value of the project or limited to the City's monetary involvement; Additionally, it was noted that the Committee should serve as a resource for the M/W/EBEs that are not able to participate on the Hill project. Update on staff response to priority recommendations: Lisa Lewis indicated that she had met again with other City staff regarding the implementation of the priority recommendations. Both the Finance Director, Bill Stafford, and Judy Witt, Human Resources Director, reiterated their support for the recommendations. The Finance Director, Bill Stafford, has indicated that the new Purchasing Agent will start on October 23-d and that he will regularly attend the Committee's meetings. Lisa and Bill also discussed the possibility of creating a task force composed of designated Buyers or other Department/Division representatives to further the goals of the M/W/EBE Programs. The importance of the Purchasing Agent's role in the achievement of the Committee's goals was also discussed. Judy Witt said the Committee should create a separate form to evaluate the appropriate City staff on their efforts to diversify their vendor pools. She also mentioned that in the first year, the Committee should create an employee recognition program with certificates, etc. for City staff that have been successful in increasing their utilization of M/W/EBEs. In the following year a cash bonus program could go into effect. A question was raised as to whether or not this evaluation "report" would hold any leverage when it comes to changing the corporate culture. It was also asked that if we couldn't use the City's current evaluation form and tie into an employees merit increase, then what tool cats be used to stimulate change. There was a suggestion, however, that the lack of participation should manifest itself in the actual results which could still impact change in some way —especially in those areas with large dollar volumes. It was noted that the Committee has to be more creative in crafting a strategy that will cause a change. This is especially true in the absence of the proverbial "golden carrot," which is generally used with employees to precipitate a shift in attitude or behavior. There was a comment that if there is no way to enforce a policy that has such a deep impact on the community and the economy that the Committee is wasting 2 4 ti DRAFT -Not Approved its time. "If you have Department heads that aren't going to do it then the people under them aren't going to do it; Then what's the point of us being here," commented one Committee member. Another committee member added that given the information about how evaluations are done for City Department heads, it comes down to how much the City Manager is personally committed to the program. It was then suggested that if the first round of reports indicates an abysmal performance, then the Committee is obligated to go to City Council and say, "... you created us and were here to tell you there has not been any progress." It was added that if the overall picture looks good and its just a few people are not being cooperative, than it becomes a disciplinary problem for City management; But then there is the issue of what happens to people that totally ignore the.goal said another Committee member. Everyone concurred that the City Manager should be invited to a future meeting to discuss his position. Another suggestion that was offered to try to effect change in the absence of the threat of a loss salary increase, was to delay a department's non -essential purchases until there is a demonstration of increased efforts to utilize M/W/EBEs. It was also mentioned that sometimes people find diversifying their vendor pool an exciting challenge. It was agreed that it would be ideal to tell someone their 5% salary increase is based in part upon their efforts to diversify their vendor pool, but according to Witt that really isn't a viable option in the City. Thus, there has to be some other creative ways to effect change such as employee recognition programs and cash bonuses. There was another suggestion about "peer" training. City staff that have been successful in diversifying their vendor pools would train other City staff that's having a difficult time to show them "it can be done." The discussion led to the decision that City Council should be sent another "update" memo in November. It would articulate the Committee's serious concerns about the continued lack of quantitative and qualitative data regarding M/W/EBE participation as the data is necessary to craft policy for City Council's review. Additionally, the memo should emphasize that the Committee hopes that the securing of a new Purchasing Agent will help expedite the process in order for the Committee to continue to progress towards its goals. The continued lack of momentum could deter a Department/Division head that embraces the concept. DRAFT Not Approved Distribution of Line item budget from CDBG proposal: It was explained that the CDBG committee will vote on the proposals on November 101h. It was emphasized that it was important to solicit support for the proposal because it includes a new position. There was also a discussion about the timing and quantity of any additional memos to City Council. OTHER BUSINESS: VI. ADIOURNMENT: There being no additional business, the meeting was adjourned at 7:55 p.m. VEL NEXT MEETING: The next meeting is Wednesday, November 11,1998 in Rm. 3650 of the Civic Center. 4 =1 Draft Not approved General Meeting Minutes Minority, Women & Evanston Business Enterprise Development Committee Wednesday, November 11, 1998 6:00 P.M. Present: Nfichael DeVaul, Chairman, Terrence Jenkins, Laurie Marston, Janice Sachet, Lloyd Shepard and Michael Sutton Absent: Angela Davis and Carl Davis, Staff: Lisa E. Lewis, Bill Stafford and Chad Walton L CALL TO ORDER: N> ke DeVaul tailed the meeting to order at 6:10 p.m. U. APPROVAL OF MINUTES FROM THE OCTOBER 14.1999 MEETING: The minutes from the October 16th meeting were approved, but one correction was noted The date should have been October 14, 1998 instead of September 16, 1998. � rr s : :. • :. •rr Funding The Community Development Block Grant Committee, which funds the M/W/EBE program, voted to allocate the full Sl 17,332 that was requested. This will not be finalized until the full Council votes on it in January. Membership Yolanda Ramirez of Environplus, an asbestos abatement company in Evanston, may serve on the Committee instead of the firm's President. DeVaul said that hopefully she will be an official member by the next meeting. Bill Stafford was asked to introduce Chad Walton as the new purchasing agent. Stafford reiterated that he was committed to both modernizing the purchasing operation, and following through on City Council policy in terms of NMfEBE. He also stated not only did he want to make a good faith effort, but an effort that will get results. Chad Walton then introduced himself He gave a brief summary about his Draft Not approved background that includes being Assistant Director of Purchasing at Lake County for three years. Prior to that he worked with the Northwest Municipal Conference and most recently he worked with the City of Chicago where he managed a division within the Purchasing department that procured primarily automotive and heavy equipment. While there he took a hard look at Minority and Women business participation on City of Chicago contracts. He noted that in the past, there had been low M/WBE participation in the division, but it was increased through direct and indirect participation on ali contracts. He also mentioned that he has gone to battle with contractors in order to get the numbers up. Additionally, while with the City of Chicago he attended minority business fairs where he went out into the community and met with various vendors, coached them and showed them how to do business with the City. He indicated that he would like to do the same in Evanston. He and Bill have also discussed his getting involved with the Evanston Chamber of Commerce and working with them. Some of his other plans include developing a pamphlet or brochure that instructs vendors on how to do business with the City of Evanston. Walton added that he had read the minutes from the last meeting and saw that there was a planned a follow-up memo to the City Council that expressed concerns about the lack of both qualitative and quantitative data that tracked what the City is currently doing. He noted that Lisa, Bill and himself will meet with all of the department heads on November 24, to give them reporting forms and directions in order to start collecting data. Hopefully in a month or two there will collected enough data to evaluate and move forward. EBE De a'ti ion It was agreed that the goal of the local preference policy would be to increase business, provide job growth, and protect the tax base. It was noted that it seems as if property taxes may be the driving force in giving some type of benefit to companies that are located in Evanston. It was suggested that if job growth is not a primary goal initially, employee data (i.e, numbers of Evanston residents employeed by the firm) can be kept on contracts in the first year It can then be evaluated to determine if the fundamental goal needs to be revised It was noted, however, that any business that is physically located in Evanston, whether it is a corporate headquarters or a branch is making a contribution in the way of property taxes or sales taxes. 2 Draft -Not approved Terry Jenkins stated that the Council is 1001/6 focused on preferences for Evanston - based businesses which in and of itself include M'utority and/or Women owned firsts that are located in Evanston. But, in his opinion the Council has not focused on purchasing goods and services from minority and female owned firms outside of Evanston wick is a point of concern. The comment was raised that if we want to have a preference program for Evanston -based businesses, we have to define the parameters around when we wdl not take the low bid and provide business to Evanston -based businesses. It was noted that we have to determine to what extent the City is willing to vary on the contract requirements in order to apply the preference. Once we determine the parameters we'll be in a position to write a draft policy that can be agreed upon and forwarded to the Council for their review and comment. And when that task is completed, it would be time to work on the actual implementation. Another comment was raised about the number of Evanston based Women and b1inority businesses that have the capability to provide the goods and services for City government. It was suggested that we may need to provide training and education in order to get more Evanston businesses up to speed so they can be in the position to sell to the City. Additionally, it was noted, once the policy writing is completed, the committee can do more things, such as work with the alderman and the purchasing department around quality and price issues. It was also suggested that if a business manufactures an item and they can't supply the volume the City requires, then that business should find a partner and create a joint venture for that particular order. If a joint venture isn't pursued, this may be a lost opportunity for that small business. The point was made that the money the small business may be able to generate from having a joint venture contract with another supplier may hopefully enable them to start to rebuild their cash reserves in order to expand and get additional equipment, etc. This may be a way to promote the growth of Evanston small businesses. Moreover, Purhasing would have an opportunity to review the proposed joint -venture and make a recommendation to City Council thereby further promoting the goal of Evanstson Business participation Bill Stafford suggested that preference given to joint ventures that include an Evanston business should be put in the bid up front. There was additional discussion about the wording in the RFPs that would encourage Evanston firms to do business with the City There was another discussion about using a point system for the bids. It was mentioned that there is already a point system in place for RFPs Lisa Lewis pointed out that the point system for bids may be an administrative nightmare -- especially since we are just Draft Not approved starting to get the tracking up. Bill Stafford mentioned there is more flexibility in doing a point system on a RFP. But on a bid, he said, there is a question about what to do when an MBE, a WBE and an EBE have tie bids. He also stated that too much tracking of firms and collecting too much information will be very time consuming and will steer the committee away from what it really wants to do. Chad Walton recommended that local business preference be set at a certain percentage to disqualify non- Evanston businesses. A contractor who is awarded a bid and who is outside the City ofEvanstonshould be strongly encouraged to meet compliance with the specific percentages he said. The issue was raised again as to the monitoring of employees in a firm. It was also stated that the number of Evanston employees in a firm are far more important than the location of the firm. It is also believed that the Council is focused more on helping those who pay taxes. Bill Stafford reiterated that it would not be in the City's best interest to do an employee count on every firm. If the count is being done on a formal bid, it can be done on the bid specification --anything lower than that would be very time consuming commented Stafford. While he agreed that tracking is a goad idea, he feels that right now nothing else would get done. He stated that employee count of firm is one or two years away. It was suggested that in the first year, Lisa and Chad do a lot of outreach: finding businesses and doing capacity building --being very visible in the community rather than creating a lot of paper work and phone calls. After the first year the process can be refined. Then the focus can be on small business vs. big business, employee count etc. Bill Stafford noted that a new financial system will be implemented within a year and that. he will make sure a tracking system will be a part of the new system. He also suggested that an information sheet could be sent out to current businesses that we have done business with and are already in the data base to update the information. 'vfike DeVaul agreed that it would be more beneficial to go out and ,get firms into the directory. If firm is listed in the directory, they will be listed in the data base. Let the firm know that once they are in the data base they can be tracked. It was noted that by working with the Evanston preference system, the committee will have a year to work with live data to help the Council shape its priority system. But, the Council cannot be moved toward a priority system by drafts and documents. It will 4 Draft -Not approved have to be done by live data. Lisa Lewis stated she felt the EBE definition has been narrowed down after the meeting's discussion. The committee will need to hear from the Council on what they want or what their goals are and the definition can be narrowed a bit further. It was noted that the staff had a good enough feel on how people are thinking in order to draft something that can be looked at in the next meeting. Important points to consider are; parameters, staff flexibility -recommendations, and implementation. The percentage of preference will be left open for now. The alderman will, however, have to know the economic impact of what they are agreeing to. An EBE policy draft will be sent to Council by their second meeting in January. With an expectation of final approval by the first of March in time for the new fiscal year. The full policy will be ready in April. It was noted that a procedure is being put into effect December 1, 1998 with Cit staff to start collecting monthly data for the EBE policy and any future M/WBE policies. The committee will discuss the Research Park work plan at the December meeting. IV. ADJOURNMENT There being no additional business, the meeting was adjourned at 7:35 p.m. VI. NEXT MEETING The next meeting is scheduled for Wednesday, December 9, 1998. DRAFT Not Approved General Meeting Minutes Minority, Women & Evanston Business Enterprise Development Committee Wednesday, December 9,1"S 6:00 p.m. Present: Michael DeVaul, Chairman, Janice Sachen, Lloyd Shepard, Michael Sutton, and Terrence Jenkins Absent: Carl Davis, Laurie Marston and Angela Davis staff . Lisa E. Lewis, Judy Aiello, Chad Walton, Morris Robinson, Guest: Bennett Johnson, NAACP 1. ALL TO OBUER: Mike DeVaul called the meeting to order at 6:15 p.m. 13. APPROYAL OF MTMJTES FROM THE NOVENMER 11.1998 M ETIN .: Mike DeVaul moved to approve the minutes of November 11, 1998. The motion was seconded and it was carried with no nays. ��r 1111 u s: i � :►i s:�ltl�. Lisa Lewis announced her resignation as the City's M/W/EBE Program Director. Her last day will be December 24, 1998. She will be working with the Rainbow Push Coalition Operation Push as the Executive Director of the Trade Bureau; their minority business program. Morris Robinson will serve as the interim Program Director. He mentioned that he chaired the committee for four years and that he will be the staff member for the committee. Resolution Lisa Lewis distributed a draft version of the proposed Local Preference Policy in the form a resolution. The format was taken from specific points addressed at the November meeting. It was suggested that the fourth point on the memorandum should be changed to aH purchases, instead of purchases under 15K. By doing this, the small business would be included. DRAFT -Not Approved It was also noted that the percentage should be based on the cost of doing business in Evanston vs. other places. There should also be a basis to substantiate how the percentage was reached. There was a discussion about renaming the Policy. It was mentioned that the word "preference" may have a negative connotation. Suggestions for new names included Local Business Economic Development Program, and Local Economic Purchasing Policy. It was later agreed that the name would be changed to L gW Economic Purghasing pg&y There was also a discussion on whether or not the employee issue in section 2 of the Resolution ( "majority of its full time workforce.. ") should be eliminated. Lewis suggested that the resolution focus primarily on taxes and that for now, the policy should stick to basics such as, being within city limits and paying property taxes. She added that at the end of the year, research can done on that data. Lewis reiterated that a goal had to be established, and that goal is to protect the tax base and give a break to — businesses who pay property taxes and who hire Evanston residents. Later in the meeting, the decision was made to keep "majority of its full time workforce..," in the policy and the matter can be further discussed at the next meeting. Lloyd Shepard suggested that the City start tailoring the bids so that they will correspond to capabilities of the companies that should be targeted. This way all of the under 15K bids can go to the smaller companies because all that is needed are two or three companies to quote and all of the larger companies can be eliminated and we can still stay within the legal limits. The question was asked if the committee was eliminating minority and gender based businesses, since the focus has been on Evanston -based businesses only. DeVaul stated that for the purpose of this policy and from the City Council's stand point, the priority is to tackle Evanston -based businesses first. The committee is still concerned with both minority and women -owned businesses. Terry Jenkins also mentioned that from an economic point of view, Evanston -based businesses have been the main focus. There may be other things done separate from" the City Purchasing policy around the issue of directories, training programs for businesses to learn how to apply to the city, and bonding programs. He added that the centerpiece of the program is indeed the city's economic purchasing policy. DeVaul continued by stating that the Local Purchasing policy is one venue. As for the other venue, there is still a great task ahead as it relates to the Park development project. That in and of itself represents all three pieces of N W/EBE as it relates to the 25% goal. 1� DRAFT Not Approved The goal is project specific. He also mentioned that it will be a tremendous learning curve as to what are the impediments, if any, of getting to the 25% goal, particularly as it relates to working with a major developer who is not the City. DeVaul added that there will not be better experience than working with the park development project in terms of working with the City staff and working with the developer to achieve that goal. Jenkins indicated that the committee needs to focus on such issues as having a good directory and training programs to get minority and female -based businesses in a position where they can legitimately bid for City goods and services. He noted that if bonding is a problem, an effort has to be made to help them, in order for them to become competitive. DeVaul responded by saying that anyone in the business that can relate to the park development project, issues such as bonding, etc. will be illuminated. Therefore the next time there is such a task, there will be a shorter list. Shepard mentioned that all of the issues that were being discussed will continue to be issues as long there is a lack of capital forgrowth in certain communities in Evanston. He also mentioned that the committee should have resources in terms of information to assist mmmnority contractors with such things as bonding. Information should be available for firms in certain areas that are part of our developmental scope of work added Shepard. DeVaul stated that the goal has to more broad so that the resolution falls clearly within the goal. He continued to say that first there has to be a goal, an objective and then a resolution. It was agreed that the overall frame is to bring more Evanston -based businesses into the bidding process. The means of bringing that about is by policy and resolution. Another means is through purchasing and MBEIWBE policy and any other structure than will make it happen. After discussing the adoption of Chicago's definition (section 2 of the policy) word for word, it was agreed that no changes will be made at this time. The committee will discuss the Park Development Project and continue the EBE conver- sation at the January meeting. DRAFT Not Approved There being no additional business, the meeting was adjourned at 7:50 p.m. V. NEXT MEETIl�iG: Wednesday, January 13, 1999 at 6:00 p.m. in Room 3650, Civic Center 4 d