Loading...
Minutes 07-28-06 Workshop MINUTES OF THE CITY OF BOYNTON BEACH MINORITY - SMALL BUSINESS ENTERPRICE PROGRAM WORKSHOP HELD IN BOYNTON BEACH CITY COMMISSION CHAMBERS ON FRIDAY JULY 28,2006 AT 10:45 A.M. Present: Jerry Taylor, Mayor Carl McKoy, Vice Mayor Bob Ensler, Commissioner Mike Ferguson, Commissioner Mack McCray, Commissioner James Cherof, City Attorney Janet Prainito, City Clerk CALL TO ORDER: Mayor Taylor called the meeting to order at 10:45 a.m. Wilfred Hawkins, Assistant City Manger, explained the workshop was being presented to outline the possibilities for the City of Boynton Beach to develop a minority and small business program. He introduced Bobby Jenkins, Assistant Director of Finance, who gave a PowerPoint presentation with Mr. Hawkins' assistance, on the proposed program. Mr. Jenkins reviewed the research he had conducted of the programs currently in use in Boca Raton, Wellington, Palm Beach School District, Palm Beach County, Delray Beach and Lake Worth. Neither Boca Raton nor Wellington had any type of program. The Palm Beach County School Board had an extensive program that included the use of set asides that were under legal challenge. Mr. Hawkins further explained a set aside program requires a disparity study to be completed to set aside specific businesses and specific amounts of monies to be used. The disparity study would be quite expensive. The recommendation was not to use a set aside criteria. Attorney Cherof explained the City of Boynton Beach could not piggyback on the School District's study due to case law indicating findings of discrimination in one market do not permit an assumption that discrimination exists in all markets. Any study done would have to be market specific. Without the study, if an award were made based on a set aside for a minority firm, a challenge could be filed from a non-minority firm that a preference had been given to the minority firm without a legal basis. Commissioner McCray inquired if any information had been gathered from cities or areas outside of the immediate area. Mr. Jenkins advised Durham, North Carolina was investigated and their program would be a model to emulate. Commissioner Ensler felt it was critical to have a definition of "local". Mr. Jenkins defined local as not just Boynton Beach, but all of Palm Beach County. Mr. Hawkins added the borders of the local market area could be extended to adjoining counties or defined in any terms the Commission would desire. Mayor Taylor clarified that local means Palm Beach County for these purposes. 1 Meeting Minutes Minority - Small Business Enterprise Workshop City Hall - Boynton Beach, FL July 28, 2006 Commission Ensler asked if there would be any preference given to Boynton Beach businesses rather than a county minority. Mr. Jenkins contended it would be a Commission decision. Current data from Palm Beach County revealed there are 32 minority businesses registered from within the City of Boynton Beach and 550 within Palm Beach County. Mr. Hawkins surmised there could be more minority businesses in the City of Boynton Beach as the 32 were only those registered to do business with Palm Beach County. Commissioner Ferguson wondered how many of the 32 minority businesses were enrolled in the Genisus Program with the CRA. A sample mission statement was reviewed that would give preference to the small local businesses. The statement could be modified at the Commission's discretion. Mr. Hawkins explained the statement was being used in other jurisdictions. Commissioner Ensler inquired about the use of the word qualified and the criteria for qualifying. Mr. Jenkins responded the City of Boynton Beach would be able to set its own criteria through ordinances setting the standards specific to the City's needs. Vice Mayor McKoy felt it was important to understand this would be an opportunity for the City's governing body to define the program and cater to the needs of the City of Boynton Beach. Staff was attempting to only give an overview of the possibilities. Commissioner McCray requested a clear definition of the word, minority. Mr. Hawkins enumerated Black! African American, Female, Hispanic American, Asian American and Native American as being minorities. Commissioner Ensler pointed out most of the wealth in the entire country was in the hands of females. Mr. Hawkins concurred the research showed the majority of minorities registered were female. Commissioner Ensler inquired if more weight could be given to certain minority programs over others. Mr. Hawkins cautioned that would be close to the set aside program and was not being recommended. Mr. Jenkins reviewed the program objectives for minority and small business enterprises as follows: · Excellent customer service · Maximum utilization of contracting opportunities · Develop programs to promote success · Encourage start-ups, retention and expansion with the area It was suggested that the City recognize the need for proactive steps to ensure minority and small businesses thrive by committing the necessary time and resources to achieve the program goals and objectives. Further, legislation would need to be enacted to create a Local Minority and Small Business Enterprise Program. Commissioner McCray questioned who would be monitoring the program. Mr. Jenkins indicated it was being recommended that an advisory board be established. Commissioner Ensler commented soliciting volunteers had been difficult and many people interested in serving on this advisory board would be prohibited from serving on two boards. Mr. Hawkins suggested a 2 Meeting Minutes Minority - Small Business Enterprise Workshop City Hall - Boynton Beach, FL July 28, 2006 committee may be preferable rather than an advisory board. The Chamber of Commerce is an available partner to assist in the project. Commissioner Ensler was curious how many of the 32 registered minorities were also members of the Boynton Beach Chamber of Commerce. It was speculated that very few would be members because they could not afford to join. Mr. Jenkins noted a significant segment of the program would be educating small business how to obtain business from other municipalities and governmental entities in the area. The goals of the program would be to optimize the City's spending with qualified, local minority and small business enterprises, increase the diversity of businesses utilized by the City, promote local business start-ups, retention and expansion and provide business services to grow the local small/minority business community. To ensure qualified entities are used, certifications would be required to be resubmitted on a regular basis. Commissioner Ensler asked that the 32 companies in Boynton Beach be confirmed as currently in existence and operating. Mr. Jenkins advised the entire list of 550 companies registered with Palm Beach County is updated nightly. The County also updates certifications on a yearly basis. Documentation is required to be filed with the County on a bi-annual and annual basis. The proposed business advisory board would be appointed by the Commission to advise on the activities of the small/minority businesses within Boynton Beach. Commissioner McCray suggested rather than a business advisory board perhaps utilizing the Chamber of Commerce would be an option. Mr. Jenkins advised partnering with the Chamber of Commerce to establish the advisory board was part of the plan. The proposed board's responsibilities would address issues and concerns of small business, develop strategies to address those issues and implement outreach programs to educate and help the small and minority businesses succeed. Mr. Jenkins cautioned the program can be customized to fit the needs of the Commission and the City of Boynton Beach. Mr. Hawkins stressed a partnership with the Chamber of Commerce would be critical for the program to succeed. Mayor Taylor admonished the control of the program would need to remain with the City of Boynton Beach. Commissioner Ensler envisioned a possibility of preferential treatment being given to those businesses who were members of the Chamber of Commerce and creating an implied requirement to join the Chamber. Mayor Taylor pointed out many small businesses cannot afford to join the Chamber of Commerce. Mr. Hawkins added the goals, guidelines and rules would have to be set by the City Commission and the Chamber of Commerce would be a partner only. Mr. Jenkins continued his presentation with the program benefits to qualified businesses being as follows: · Increased opportunities to do business with the City · Technical and business development assistance · Workshop/Conference notifications and invitations · City bid opportunities · Increased opportunities to subcontract with prime contractors · Competitive opportunities to provide needed goods and services 3 Meeting Minutes Minority - Small Business Enterprise Workshop City Hall - Boynton Beach, FL July 28, 2006 Commissioner Ensler felt there needed to be a better understanding of the need for budgeting additional dollars and staff to implement and maintain the program. Mr. Jenkins advised $50,000 had already been allocated in the 06/07 budget. Mr. Hawkins added himself and Mr. Jenkins would be the staff involved with the Procurement staff being ancillary. Mr. Hawkins stressed there would be no legal requirement to do business with anyone. It would be strictly a voluntary program. Mayor Taylor clarified the preference would be the definition and boundaries of the local market area. Attorney Cherof explained when the policies are decided upon, an ordinance would be drafted that would be scrubbed of any and all offensive terms. Mr. Jenkins continued that to alleviate any hindrances for the small business, payment and performance bonds could be waived on project costs up to $200,000 or assist them in securing the bonds. Also lowering the insurance requirements or assistance in obtaining insurance could be provided. Another option would be to implement a threshold policy to waive competitive bidding for expenditures with a qualified small or minority business. It was determined that the priority would remain to be fiscally prudent with taxpayer monies. Goals would also need to be set on the program to help not only the program grow, but also for small and minority businesses to grow. The goal would be to graduate the companies from the small/minority business environment to primary or general contractor status. Vice Mayor McKoy felt the design of the program was important because other cities would be reviewing the City of Boynton Beach's program. Commissioner Ferguson requested a list of the 32 small/minority businesses before making a decision. If the majority of the businesses involved personal services, there would not be a need for a program. Commissioner Ensler contended the problem was much bigger than the City of Boynton Beach and the program was fundamentally the right thing to do. Mr. Hawkins added it would be critical to the economic base of the City. Mayor Taylor declared there was consensus to move forward with the program. Commissioner McCray reiterated his desire to see more public relations effort to market the City of Boynton of Beach. Mr. Hawkins announced a formal recommendation would be brought before the Commission on August 15th. There being no further business to come before the Commission, Mayor Taylor closed the workshop at 11:25 a.m. 4 Meeting Minutes Minority - Small Business Enterprise Workshop City Hall- Boynton Beach, FL July 28, 2006 ATTEST: In. 5