Loading...
HomeMy WebLinkAbout2010/02/02-Minutes-HEDCCITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Present: Committee Member Jungus Jordan, Chairman Committee Member Carter Burdette, Vice Chairman Committee Member Mike Moncrief Committee Member Salvador Espino Committee Member W. B. "Zim" Zimmerman Committee Member Danny Scarth Committee Member Kathleen Hicks Committee Member Joel Burns Absent: Committee Member Frank Moss City Staff: Tom Higgins, Assistant City Manager Peter Vaky, Assistant City Attorney Marty Hendrix, City Secretary Jay Chapa, Director of Housing and Economic Development Department Guy Brown, Economic Development Coordinator, Housing and Economic Development Department William Johnson, Assistant Director, Housing and Economic Development Department Robert Sturns, Manager, Housing and Economic Development Department Other City Staff in Attendance: Cynthia Garcia, Assistant Director, Housing and Economic Development Department Ossana Hermosillo, Business Development Coordinator, Housing and Economic Development Department Henry Day, Senior Management Analyst, Housing and Economic Development Department Mark Folden, Business Development Coordinator, Housing and Economic Development Department Vicki Ganske, Senior Assistant City Attorney LeAnn Guzman, Assistant City Attorney Charlene Sanders, Assistant City Attorney Amy Ramsey, Assistant City Attorney CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 2 of 28 Guests: Dr. Eleanor Ramsey, with Mason Tillman Associates, Ltd. Franklin M. Lee, of Tydings & Rosenburg, LLP. David Berzina, Executive Vice President of Economic Development, Fort Worth Chamber of Commerce Devoyd Jennings, President and CEO, Fort Worth Metropolitan Black Chamber of Commerce Rosa Navejar, President and CEO, Fort Worth Hispanic Chamber of Commerce With a quorum of the committee members present, Chairman Jungus Jordan called the meeting of the Housing and Economic Committee to order at 1:48 p.m., on Tuesday, February 2, 2010, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas 76102. Approval of Minutes of the January 12, 2010, Housing and Economic Development Committee (Agenda Item 2) Chairman Jordan opened the floor for a motion on the approval of the minutes. MOTION: Upon a motion made by Committee Member Espino and seconded by Committee Member Hicks, the Committee Members voted eight (8) and zero (0) "nays ", with Committee Member Moss absent, to approve the minutes of the January 12, 2010, Housing and Economic Development Committee meeting. The motion carried unanimously. Written Reports: TIF Annual Report; CDBG Administrative Costs (Agenda Item 3) Chairman Jordan opened the floor for discussion on the following written reports: 1. TIF Annual Report 2. CDBG Administrative Costs Committee Espino commended the City staff on the TIF Annual Report and requested that it be placed on the City of Fort Worth's web site as it was outstanding information. City staff concurred with his request and advised that it would be added to the web site. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 3 of 28 The written reports were provided as a matter of information. There was no further discussion on this agenda item. Presentation on Proposed Economic Development Program Agreement with North Tarrant 226 Joint Venture for Construction of Timberland Boulevard (Agenda Item 4) Mr. Guy Brown, Economic Development Coordinator, Housing and Economic Development Department, spoke before the committee on the proposed economic development program agreement with North Tarrant 226 Joint Venture for construction of Timberland Boulevard. Using a PowerPoint Presentation, Mr. Brown presented the following information. He stated the project description was: North Tarrant 226 Joint Venture proposed to construct an 85,000 sq. ft. Kroger Store with an investment of $15,000,000.00. In order to facilitate the project, the developer would advance the funds and construct the two southern lanes of Timberland Boulevard from North Beach Street to the east approximately 2,000 linear feet at an estimated cost of $520,000.00. Mr. Brown presented two aerial photographs showing the location of the property adjacent to Timberland Boulevard near the intersection of Alta Vista Road. Mr. Brown also reviewed two aerial photographs that showed the portion of Timberland Roadway that would be improved. Mr. Brown advised that the developer commitment was: ■ North Tarrant 226 Joint Venture to enter into a Chapter 380 Agreement with the City to fund and construct the two southern lanes of Timberland from North Beach to the east approximately 2,000 linear feet. ■ Funding of the Chapter 380 will be contingent on developer executing a Community Facilities Agreement (CFA) with the City. ■ Construct and open a Kroger Store with a minimum investment of $15,000,000.00 and a minimum of 85,000 sq. ft. by December 1, 2012. ■ Kroger will maintain employment of a minimum of 50 employees during the agreement period. Mr. Brown presented the City's commitment as follows: CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 4 of 28 Presentation on Proposed Economic Development Program Agreement with North Tarrant 226 Joint Venture for Construction of Timberland Boulevard (cont'd) (Agenda Item 4) • Enter into a Chapter 380 Grant Agreement with the developer to provide annual program grants for a five -year term to reimburse developer for the cost of constructing the two southern lanes of Timberland from North Beach to the east approximately 2,000 linear feet as shown on the exhibit. • The grant will be based on 80% of the City's $.01 general sales tax revenues and 80% of the City's real property taxes attributable to the new Kroger Store starting the year after the first calendar year of operation. • The cumulative grant will equal the actual cost of the roadway improvements plus 6% interest applied annually to the outstanding balance. • Total grant payments cannot exceed an overall cap of $600,000.00, excluding interest. Mr. Brown presented the recommendation and next steps as follows: • The Housing and Economic Development Committee recommend to the City Council to approve an economic development program agreement with North Tarrant 226 Joint Venture to reimburse the construction of the two southern lanes of Timberland from North Beach to the east approximately 2,000 linear feet. • A Mayor and Council Communication would be prepared for the February 9, 2010, City Council meeting. Mr. Brown concluded his presentation. Chairman Jordan opened the floor for discussion and /or comments. Committee Member Espino expressed appreciation to the City staff for their work in thinking outside the box for this roadway project. He pointed out that roads were always an issue and this was a situation where the City staff was working with the developer to provide for construction of the intersection and improving Timberland that provided east west mobility. He also pointed out that South Beach Street kk,as being widened south of this location. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 5 of 28 Presentation on Proposed Economic Development Program Agreement with North Tarrant 226 Joint Venture for Construction of Timberland Boulevard (cont'd) (Agenda Item 4) Committee Member Espino requested further clarification as to whether this construction would provide Timberland opening onto Caylor as another ingress /egress into Woodland Springs and going further west. Mr. Brown responded that he did not have the answer; however, the engineer for the project was available to respond to the question. Committee Member Espino added that one of the major problems in that area was the east /west mobility. He advised of the progress on the construction of Golden Triangle Boulevard; improvements that have been made to Keller Hicks Road and that the master plan for Timberland was to eventually connect to US 377. He reiterated that he wanted to know how far Timberland would be going in a westerly direction and he indicated that the City staff could provide him this information at a later time. Committee Member Espino recommended that the committee, by consensus, support moving forward with the recommendation and next steps. There were no objections from the Committee Members. This concluded the presentation and discussion on this agenda item. Presentation on Findings of MWBE Availability and Disparity Study (Agenda Item 5) William Johnson, Assistant Director, Housing and Economic Development Department, spoke before the committee on the findings of the Minority and Women's Business Enterprise Availability and Disparity Study. Using a PowerPoint Presentation, Mr. Johnson advised the committee of the purpose of the presentation was to review availability and disparity study requirements and process; introduce Mason Tillman Associates, Ltd., the consultant on this project; provide the presentations of study findings and recommendations; advise of the next steps and to respond to questions posed by the committee. Mr. Johnson indicated that this briefing would: ■ Provide the Housing and Economic Development Committee (Committee) with an overview of the study background, findings and recommendations. • Provide the Committee with an opportunity to ask questions. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 6 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) ■ Provide the Committee with an opportunity to refer the draft final study to the Minority /Women Business Enterprise Advisory Committee (M /WBEAC) for extended and in -depth review, discussion and development of a revised MWBE Ordinance for Council adoption. Mr. Johnson advised that state and local governments were required to validate a statistically significant underutilization of minority and /or women -owned businesses before they could establish an MWBE goals -based program. He added that Availability and Disparity Studies have been deemed, by the courts, as an acceptable method to validate statistically significant underutilization and to establish recommended remedies. The City of Fort Worth's existing MWBE Ordinance was adopted on April 23, 2003, and became effective on June 1, 2003, based on a previous study. He pointed out that studies should be periodically updated. Mr. Johnson added that the City updated its study approximately every five years to determine if MWBE Ordinance revisions were needed. Mr. Johnson advised that Mason Tillman Associates, Ltd., was engaged through the Council of Governments (COG) to conduct a study update in the amount of $195,007.00. He added that the City had also engaged outside legal counsel to provide oversight of the study and assist with the subsequent development of a new M /WBE Ordinance, which was Franklin M. Lee, of Tydings & Rosenburg, LLP., at an amount not to exceed $110,000.00. Mr. Johnson advised of the timeline as follows: ■ Spring 2007 — discussions with the North Central Texas Council of Governments (NCTCOG) and several local governments regarding possible joint study. ■ Spring 2007 — NCTCOG agrees to serve as project manager of study consortium (six entities). ■ Summer /Fall 2007 — Request for Proposal developed, advertised and responses evaluated. ■ Fall 2007 — Mason Tillman Associates (MTA), Ltd., based in Oakland, California selected as consultant. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 7 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) ■ December 2007 thru February 2008 — interlocal agreements finalized by each consortium member with NCTCOG. ■ February 5, 2008 — City Council approved interlocal agreement with NCTCOG (City of Fort Worth cost was $195,007). ■ March 26, 2008 — City of Fort Worth kick off meeting conducted with MTA, Ltd., and key City departments (approximately 12 to 18 month study period began) Mr. Johnson completed his presentation and introduced Dr. Eleanor Ramsey, with Mason Tillman Associates, Ltd. Chairman Jordan interjected that what he was hearing was that this was a 30,000 foot view today and then this recommendation was going to be sent to the MWBE Advisory Committee and then a more detailed annual review would be brought back for consideration. Mr. Johnson concurred in those comments. Mr. Johnson indicated that the in -depth analysis and "heavy lifting" would be done by the MWBE Advisory Committee. He added that the study was going to be thoroughly discussed and reviewed and then a new policy would be developed. Using a PowerPoint Presentation, Dr. Ramsey reviewed the Availability and Disparity Study Briefing discussion points as follows: Management team Study objectives Research method Statistical results Recommendations Dr. Ramsey provided an overview of her company. She indicated that they were established in 1978 and they are comprised of public policy research and marketing professionals. She advised that they were an award winning company and their service divisions were Business Affirmative Action and Corporate Communications. Dr. Ramsey indicated that they had completed 108 disparity studies on time and unchallenged for 14 states, 14 counties. 8 schools, 47 districts and 25 cities. She pointed out the cities as t01lows: CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 8 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) Arlington, TX Boston, MA Bridgeport, CT Cleveland, OH Dallas, TX Davenport, IA Dayton, OH Durham, NC Fort Worth, TX Gresham, OR Houston, TX San Jose, CA Indianapolis, IN Seattle, WA Kansas City, MO Tampa, FL Knoxville, TN New Haven, CT New York, NY Oakland, CA Pittsburgh, PA Portland, OR Richmond, CA (Agenda Item 5) Dr. Ramsey reviewed the subconsultant team experience with disparity studies, legal analysis, data collection/outreach and program design. The subconsultants were as follows: The Burrell Group Consumer Market Insights Adrian Information Systems Trovada Davis Ms. Sherry Crum- Tupper Mr. Scott Emblidge, Esq. Dr. Ramsey reviewed the objects of the study as follows: • Assess market need business availability • Analyze prime contract awards • Determine if MWBE statistical disparity exists • Ascertain practices affecting any documented disparity • Prepare a legally defensible study Dr. Ramsey advised of the availability and disparity study challenges: • Outreach to ethnically diverse community • Identify all willing market area businesses • Compile all prime and subcontract awards and payments • Define best management practices to eliminate barriers CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 9 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) Dr. Ramsey advised of the consortium agencies for the study as follows: City of Fort Worth, Texas Fort Worth Independent School District The "T" City of Arlington, Texas DFW Airport North Texas Tollway Authority (Agenda Item 5) Dr. Ramsey provided the definitions of the industry groups studied as follows: • Construction ■ New construction, remodeling, renovation, maintenance, demolition and repair of any public structure or building and other public improvements • Architecture and Engineering ■ Construction management, landscape architecture, surveying, mapping services, and architecture and engineering • Professional Services ■ Services provided by attorneys, accountants, medical professionals, technical services, research planning and consultants • Non - professional services • Goods ■ Maintenance and other services which could be performed without a professional license, special education, or training ■ Materials, supplies and equipment CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 10 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) Dr. Ramsey presented information on the prime contract analysis and findings. She presented a chart showing the study years of October 1, 2002 through September 30, 2007 as follows: Industries Construction Services Architecture and Engineering Services Professional Services Non - Professional Goods Total Expenditures Total Prime Contracts 1,111 662 2,773 8,578 7,036 20,160 Dr. Ramsey presented the data requirements as follows: • Identify Prime Contract Records ■ Complete Electronic Records Provided • Reconstruct Subcontract Records • Electronic Records Provided • Prime Contractors Surveyed • Subcontractors Surveyed • Identify Available Businesses • Utilized Bidders from Contract files • Unsuccessful Bidders Lists From Project Files • Local Government Certified Lists • Trade Association Membership Lists • Business Outreach Total Prime Payments $638,173,133 $68,349,670 $68,839,866 $339,530,159 $236,417,209 $1,351,310,036 Dr. Ramsey continued her presentation with a chart showing the total prime payments from October 1, 2002 through September 30, 2007 in the market area of Dallas /Tarrant Counties. The chart showed total dollars within the market area of $1,092,094,810.00 (80.82 %) with Dallas County at 19.93% and Tarrant County at 60.89 %; the outside market area of $259,215,226.00 (19.18 %) with other Texas counties at 12.15% and outside Texas at 7.03 %. Dr. Ramsey reviewed the distribution of prime contract dollars as follows: CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 11 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) Total Contracts 20,160 Number Utilized Vendors 4,704 Total Expenditures $1,351,310,036 Dr. Ramsey presented a chart of the prime contract size analysis as follows: Under Percent Number of Percent of Number of Vendors Dollars Dollars Contracts Contracts 4 Vendors Received $360,506,117.00 27% 73 0.36% 22 Vendors Received $682,490,434.00 50% 495 2.46% 41 Vendors Received $812,891,523.00 60% 796 3.95% 4,663 Vendors Received $538,418,513.00 40% 19,364 96.05% 4,704 Vendors Received $1,351,310,036.00 100% 20,160 100.00% Dr. Ramsey presented a chart of the prime contract size analysis as follows: Dr. Ramsey presented a chart of the prime utilization by ethnicity as follows: Ethnicity Under Under Under $500,000 and Industry $25,000 $100,000 $500,000 Over Construction Services 39.69% 50.59% 72.73% 27.27% Architecture & Engineering 53.47% 77.95% 95.77% 4.23% Professional Services 86.33% 95.64% 99.24 0.76% Non - Professional Services 87.07% 95.34% 98.87% 1.13% Goods 85.16% 94.00% 98.61% 1.39% Dr. Ramsey presented a chart of the prime utilization by ethnicity as follows: Ethnicity Total Payments Percent of Total Contracts Payments Non - Minority Males $1,247,639,487.00 92.33% 17,758 Caucasian Females $49,914,328.00 3.69% 1,304 Hispanic Americans $32,174,856.00 2.38% 511 African Americans $11,354,078.00 0.84% 337 Asian Americans $9,666,979.00 0.72% 200 Native Americans $560,308.00 0.04% 50 Dr. Ramsey reviewed the business size by employees as follows: CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 12 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) Businesses 195,101 Dallas County Tarrant County State of Texas United States Fewer than 5 51% 50% 52% 54% employees statistically insignificant disparity and " - - - - -" indicating underutilization, but too few contracts to test disparity. Fewer than 20 82% 83% 85% 86% employees Goods Services and Services Professional Fewer than 100 96% 97% 97% 98% employees Yes Yes Yes Yes Yes Asian Americans More than 500 0.42% 0.29% 0.29% 0.25% employees Yes Yes Yes Americans Total 63,308 36,300 509,080 7,601,160 Establishments Dr. Ramsey reviewed the ethnicity /gender profile as follows: Businesses Dallas County Tarrant County State of Texas United States Minority -owned 29% 20% 29% 18% businesses Woman -owned 27% 28% 27% 28% Businesses Total Businesses 195,101 119,139 1,734,509 22,974,655 Dr. Ramsey presented the prime contractor disparity findings under $500,000.00 as follows with "yes" indicating there was statistically significant disparity; "no" indicating statistically insignificant disparity and " - - - - -" indicating underutilization, but too few contracts to test disparity. Ethnicity /Gender Construction Architecture Professional Non- Goods Services and Services Professional Engineering Services African Americans Yes Yes Yes Yes Yes Asian Americans Yes Yes Yes Yes Yes Hispanic Yes Yes Yes Yes Yes Americans Native Americans Yes Yes Yes -- - - - - -- Yes CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 13 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) Ethnicity /Gender Construction Architecture Professional Non- Goods Services and Services Professional Engineering Services Minority Business Yes Yes Yes Yes Yes Enterprises Women Business Yes Yes Yes Yes Yes Enterprises Minority and Yes Yes Yes Yes Yes Women Business Enterprises Dr. Ramsey presented the prime contractor disparity findings under $25,000.00 as follows with "yes" indicating there was statistically significant disparity; "no" indicating statistically insignificant disparity and "- - - - - -" indicating underutilization, but too few contracts to test disparity. : Ethnicity /Gender Construction Architecture Professional Non- Goods Services and Services Professional Engineering Services African Americans Yes Yes Yes Yes Yes Asian Americans No No Yes Yes Yes Hispanic Yes Yes Yes Yes Yes Americans Native Americans Yes Yes Yes -- - - - - -- Yes Minority Business Yes Yes Yes Yes Yes Enterprises Women Business Yes Yes Yes Yes Yes Enterprises Minority and Yes Yes Yes Yes Yes Women Business Enterprises Dr. Ramsey reviewed the subcontractor utilization by ethnicity for three industries of construction, architecture and engineering, and professional services: CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 14 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) Ethnicity Total Payments Percent of Payments Non - Minority Males $239,210,432 49.96% Caucasian Females $129,919,496 27.14% Hispanic Americans $63,420,532 13.25% African Americans $21,734,234 4.54% Native Americans $15,153,688 3.17% Asian Americans $9,338,834 1.95% No $478,777,217 100% (Agenda Item 5) Total Subcontracts 5,736 2,116 1,074 507 86 223 9,742 Dr. Ramsey presented the information on the subcontract disparity findings. She reviewed the disparity findings for the period of October 1, 2002 through September 30, 2007 as follows, with "yes" indicating statistically significant disparity and "no" indicating statistically insignificant disparity: Ethnicity /Gender Construction Architecture and Professional Services Services Engineering African Americans Yes No Yes Asian Americans Yes No No Hispanic Americans Yes No No Native Americans No No No Minority Business Yes No No Enterprises Women Business No No No Enterprises Minority and Women Yes No No Business Enterprises Dr. Ramsey reviewed the program recommendation and presented the race and gender conscious remedies as follows: MWBE Program • Continue to: o Establish Overall MBE Goals o Set Contract Specific MBE Goals for Construction and Protessional Services CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 15 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) • Establish MBE Small Contracts Rotation Program • Require Minority Participation on Evaluation Panels 2. Fort Worth Program Enhancements • Expand Assistance to M /WBEs to Meet Insurance Requirements • Evaluate Bonding Requirements • Expand Expedited Payment Program 3. Best Management Practices • Expand Unbundling Policy • Develop Mentor /Protege Program • Implement Construction Direct Purchasing Dr. Ramsey concluded her presentation. Chairman Jordan opened the floor for comments and /or questions. Committee Member Moncrief expressed appreciation to Dr. Ramsey for her presentation. He referenced slide number 33 of her presentation to the suggestion that the City establish a MBE small contracts rotation program. He requested further clarification of this program. Dr. Ramsey advised that the concept was that the City would take some of the small contracts or informal contracts and set them aside for a rotation program. She added that the companies that met the City's size requirement would have to go through a certification process to verify that they were that size. The City would set up a process whereby they could prequalify by having their rates approved and bonding approved and thus when there was a contract, the next contractor on the list got called for that project contract. She pointed out that it was more cost effective for them to do their bids because the contractors do not have to go through the City's competitive bidding process. She emphasized that it would open up business for the small businesses that could comply. Committee Member Moncrief indicated that he felt this was something that the City could consider. He then asked Dr. Ramsey to give him a grade on the City of Fort Worth's MWBE efforts and the policies and procedures that were in place. He indicated that from her presentation he saw some results that he was not pleased with; however, there were others that he was pleased with. Dr. Ramsey indicated that she felt the City was doing a good job. She added that she felt that the City had some good programs in place and had a strong staff for doing that process. She suggested that the Minority Business Office was only as strong as the managers were uniform in their approaches. She stated that one of the issues of who got used was how CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 16 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) contracts were advertised and what the managers did in their evaluations as to what decisions they made, even when there were goals. She indicated that they could make decisions without adhering to those goals. She also explained that the City should make sure that its public relations were at their best, so that when companies were listed on a contract, it was important that they were used. She added that the people that would know if they were being utilized would be the people that were managing those contracts on a day to day basis. She pointed out that the City of Fort Worth should have a very strong compliance program where at the end of the contract there should be a review of the contract to verify that the list of terms was utilized. She added that this might penalize the prime contractor if they were not used. Subsequently, that subcontractor that was listed thought that they were going to get the work and then they got no money as a result of not being used. She added that it was the managers throughout the City who are in a position to partner with the Minority Business Office. She felt this would provide for much better results. Committee Member Moncrief expressed appreciation for Dr. Ramsey's presentation and her comments. He added he felt the City of Fort Worth had worked extremely hard in this effort and it had not been an after thought. He stated that it had not been on the "back burner ", it had been on the "front burner" and it had remained there; however, he added that it could always use improvement. Committee Member Hicks spoke about the program being around since the 1980's. She referenced slide 31 and indicated that she was pleased with some of the things that she was seeing and the progress that had been made as it compared to other entities that the City went into the study with who were newer down this path. She referenced other pieces in the study that she felt raised the issue of "I told you so!" She referenced the statistical percentages of where African Americans and Hispanic Americans were not getting the percentages of contracts that the Council would like to see. She explained that she was particularly concerned with the prime contractors under the $25,000.00 amount, understanding that it was harder to do when it was a larger contract. She indicated that she liked some of the ideas that Dr. Ramsey suggested when dealing with those contracts so that the City could insure that staff was not going to the same people time after time. She referenced slide 30. She stated she was concerned when she looked at the percentage of Hispanic Americans and African Americans and how low the numbers were in that slide. She stated that obviously there was still work to be done. She explained that she looked forward to hearing back from the MWBE Committee later this year. She stated that she was excited that the City was not letting Sundra Davis (former Director of the City's MWBE Program) go into retircment. She added that Ms. Day is was a resident of District 8 and she was CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 17 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) excited that Ms. Davis was willing to be the District 8 representative on the MWBE Advisory Committee. Committee Member Hicks indicated that she would be appointing Ms. Davis at the City Council meeting this evening and she requested the support of the City Council for this appointment so that Ms. Davis could start work on the committee at their meeting to be held on Thursday. Committee Member Hicks commented that she was very proud of the work that had been done over the last 25 years. She added that obviously the City Council and residents had benefitted from previous City Councils that ensured that the City had a policy that would be something that other entities, both in Tarrant County and elsewhere, would want to emulate. She pointed out that there was more work to be done. She commended the City staff on their work to date. Committee Member Espino explained that the reason that the City had a disparity study was that it provided a legal justification for an MWBE or MBE program. He requested further clarification on the difference between "prime contractors" and "subcontractors ". He explained that there was a function in state law where the City was governed by state law on the bidding practices. He questioned how the City would address the prime contractor issues where the City did have disparities when the City was bound by state law on finding the lowest bidder or the best bid. He then referenced the sub - contract analysis and explained that as he understood the information, the City had done a good job with the women business enterprises and the study showed there was no disparity there. He added that this finding would have to be one of the challenges that would have to be looked at by the MWBE Advisory Committee. Committee Member Espino stated that what he now questioned was did this program just then become an MBE program. Committee Member Espino explained that his overall question was what were the challenges that they see on the prime contractor and subcontractor and how could those be addressed. Chairman Jordan explained that the City Council had worked very hard with the area Chambers of Commerce in trying to bridge that gap between the subcontractors and the large contractors, trying to get to the large contractors in an effort to build capacities. He stated that in looking at some of the recommendations that had been presented; the City Council may have a false expectation of trying to get small contractors to be big contractors. He added the rotation recommendation might be the better solution to what the City has done. He stated that in working with the MWBE Advisory Committee, he felt this recommendation would probably come back to the Council. He indicated that was his thought in looking at the presentation. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 18 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) Dr. Ramsey indicated that it was indeed the case that a little bit of involvement prevails particularly on the construction side. She stated that the committee would see that were a considerable number of prime contracts that were smaller, thus the potential was there. She stated that the question was what were the variables. She stated that additionally, some of the contracts needed to be broken out into smaller contracts. She pointed out that the inclination was to roll them up into larger contracts. Dr. Ramsey stated that she knew there was a general concern that staffing was being reduced nationally and it was problematic to have smaller contracts. She felt consideration needed to be given to that and some costs that would pay for the buyer /manager would be getting lower prices if the City used smaller companies. She stated that once the contracts were made smaller and once this was done, the City would find that the capacity would be able to affectively compete with that area. She indicated that this was her major recommendation on the formal contracts. She reiterated that the City should start breaking those large contracts down. Committee Member Scarth pointed out that on the larger contracts it does take the larger contractors to complete those projects and some companies have been owned for generations. He pointed out also that in most cases the non - minority white male owned companies had been in business longer than the minority companies. He added that he felt it would take time to build capacity through the use of the Hispanic Chamber and Metropolitan Black Chamber to grow to be the size where they could compete for and handle some of the larger contracts. He indicated that those were certainly the days that the City was looking for and striving for. Committee Member Scarth pointed out that there had been previous discussion on the fact that contracts were less expensive and it was costing less these days to build a building or a road than it did several years ago. He stated that now there were 20 to 25 companies bidding on contracts when in the past there was only four or five. He added he stated that only to illustrate the fact for the City's tax payers that it did make sense for the City to continue to work with the minority chambers to build capacity. He added that the more people that could bid on a contract, the better the competition would be and the lower the contracts prices go. He added he felt those were dollars well spent and it was a good thing for the City to continue to do what the City had done and that was to provide financial support for the minority chambers to try to build capacity. He stated that when the economy does start to come out of the recession, the City would have a larger number of pools for those people to bid for the contracts large and small, which would drive the prices down, which in turn saved money for the tax payers and would get more people involved in the game. He indicated that he felt this was where the loop was closed for the tax payers and the reason that it was important for the City. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 19 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) Committee Member Zimmerman explained that in the company that he used to work for (Lockheed Martin) one of the difficulties that they found with doing this business was that the successful companies get bought. He stated that then they become big companies. He requested to know if the consultants had looked at what kind of turnover there was in the business base to see how dynamic this group was. Dr. Ramsey indicated that this issue was not part of the consideration of the issue of larger companies. She added that she felt it was a phenomenon of the last 5 to 10 years, particularly on the engineering side. Chairman Jordan expressed appreciation for the study work. Mr. Johnson provided a clarification of the distinction of looking at disparities at the prime contractor level and subcontractor level. He stated MWBE programs by their very nature were subcontractor programs. He added that it was not unusual to see a disparity at the prime contractor level. He stated in addressing the whole prime contractor issue, the Chamber partners that were here at the meeting play a key role in that as well as the existing Business Assistance Center in terms of providing technical assistance that targets in specific ways particular industries and particular construction and professional services and looking at how the City can encourage those companies to facilitate their growth. Mr. Johnson advised of the next steps in this process as follows: Staff recommends that: • Mason Tillman Associates, Ltd., perform a brief optional supplemental analysis (nexus analysis) to: o Analyze M /WBE participation in an M /WBE goals environment (City of Fort Worth) vs. none M /WBE goals environments (applicable AD Study Consortium Members) • The Committee refers final draft study and the supplemental analysis (nexus analysis) to the Minority /Women Business Enterprise Advisory Committee for extended in -depth review and development of a revised M /WBE Ordinance. • City Council adopts proposed revised M %WBE Ordinance by August 2010. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 20 of 28 Presentation on Findings of MWBE Availability and Disparity Study (cont'd) (Agenda Item 5) Mr. Johnson presented the list of Ad Study Ad Hoc Committee Organizations (sample organizations) as follows: 1. Tarrant County Asian chamber 2. Fort Worth Metropolitan black Chamber of Commerce 3. Fort Worth Hispanic Chamber of Commerce 4. American Indian Chamber of Commerce 5. Fort Worth Chamber of commerce 6. Women in Construction 7. Quoin (AGC) 8. Consulting Engineers Council 9. American Institute of Architects 10. Hispanic Contractors Association 11. Black Contractors Association 12. Minority Business Development Council 13. Women's Business Council 14. Tarrant County Contractors Association Chairman Jordan opened the floor for further discussion. There was none. He expressed appreciation again for the presentations. This concluded the presentations and discussion on the agenda item. Economic Development Activity Update (Agenda Item 6) Jay Chapa, Director of the Housing and Economic Development Department, advised that everything that his department did involved a partnership. He explained that at the request of Chairman Jordan, City staff was asked to bring forward an economic development update. He advised that David Berzina, Executive Vice President of Economic Development for the Fort Worth Chamber of Commerce would be speaking on the activities of the Fort Worth Chamber of Commerce; City staff member Robert Sturns, Manager of the Housing and Economic Development Department, would be providing the report on the work of the City; Devoyd Jennings, President and CEO, Fort Worth Metropolitan Black Chamber of Commerce would be giving their report and Rosa Navejar, President and CEO, Fort Worth Hispanic Chamber of Commerce, would be providing their report. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 21 of 28 Economic Development Activity Update (cont'd) (Agenda Item 6) ► Fort Worth Chamber of Commerce — David Berzina, Executive Vice President of Economic Development Mr. Berzina introduced himself and explained that his presentation would focus on the Chamber's marketing efforts to bring in enterprise and companies and the capital investments associated with that enterprise. He introduced several of his staff members: Lacey Creger, who distributed to the committee members packets of information on the Chamber and who worked with the RFP process and Melody Whitson, Director of Local Business Development. Mr. Berzina talked about the great working relationship that existed between the Chamber staff and the City staff. He advised that the Chamber was a 501(c)6 (for lobbying efforts) and a 501(c)3 (economic development). He pointed out that there were 2300 Chamber investment members and on the economic development side there were 132 investors, all of which provided the funding for the operation of the Chamber. He emphasized that they did not take any public funds from the City or state, or federal government. Mr. Berzina began his presentation with a review of the Fort Worth Chamber's outreach programs as follows: • CoreNet Global (Corporate Real Estate Network): • Brings together the entire spectrum of the corporate real estate industry • Links a community of 7,000 corporate real estate professionals throughout the world. • Bi- annual meetings — alternate throughout U. S. (Dallas 2008) • IAMC (Industrial Asset Management Council): ■ Association of industrial asset management and corporate real estate executives, their suppliers and service providers, and economic deveopers ■ 501 member ■ Bi- annual professional forums • TexasOne Program ■ Governor Perry's economic development outreach program to market Texas in a dynamic and competitive manner ■ 160 members include Texas communities and businesses of all sizes ■ Quarterly board meetings; business recruitment missions to Los Angeles, Mexico, New York and South America, signature events hosted by Governor throughout the year CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 22 of 28 Economic Development Activity Update (cont'd) (Agenda Item 6) ► Fort Worth Chamber of Commerce — David Berzina, Executive Vice President of Economic Development (cont'd) • DEW Marketing Team: • Alliance of economic development organizations in the Dallas /Fort worth area working to promote the region to location consultants and corporate real estate executives • Members include 45 economic development organizations • Website and marketing materials, business recruitment missions, and trade show attendance. • TEDC (Texas Economic Development Council) • Association dedicated to the development of economic and employment opportunities in Texas • Over 900 economic development professionals, volunteers, and elected officials • Quarterly conferences, training seminars and economic development lobbying component • Team Texas — 50 community marketing arm • ICSC (International Council of shopping Centers) • Trade organization for the international shopping center industry • Over 60,000 members in more than 80 countries • Partner with Sundance Square, Downtown Fort Worth, Inc., Hillwood, City of Fort Worth, Walsh Ranch and Synergy Properties Group for annual ICSC Recon Convention in Las Vegas • Masonic Home success Mr. Berzina talked about the consultant outreach efforts and advised of the site selection/consultant efforts through Los Angeles, Chicago and New York consultant marketing trips and Deloitte, Ernst & Young, Cushman Wakefield, Grubb & Ellis, CB Richard Ellis, PricewaterhouseCoopers and Binswanger. He also spoke about their Chamber's marketing outreach which included marketing materials /printed materials, print advertising, in the Southern Betsiness & Development and Site Selection Malta. inc, North Texas Data Exchange "available real estate ". their website and demographic infonnation. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 23 of 28 Economic Development Activity Update (cont'd) (Agenda Item 6) ► Fort Worth Chamber of Commerce — David Berzina, Executive Vice President of Economic Development (cont'd) He presented talking points on their international marketing through: China & Canada Trade missions; outreach efforts to foreign consulate offices — Houston/Dallas, Greater Dallas Regional Chamber (DFW Marketing Team), World Affairs Council, Sister Cities /China/Toluca, Fort Worth City staff and Tarrant County staff. Mr. Berzina spoke about their prospect activity in 2009 and that there were 79 total projects, with 44 in manufacturing, data center /call center 18, office /headquarters 22 and District /warehousing at 6. He indicated that for 2010 there were nine (9) new projects, with 8 in manufacturing and 1 for district warehousing. He indicated that there were 16 projects that were viable carry over from 2009. Mr. Berzina elaborated on their observations and challenges. He stated that Texas was the No. 1 State for Business from CEO Magazine, 2009; there was a high level competition, 4A and 4B sales tax — state 556 cities — DFW Metro area 108. He spoke about the City's high tax rate and show the rates of other competitive cities of Dallas at 0.74790; Houston at 0.63875; McKinney at 0.58550; San Antonio at 0.56569; Irving at 0.54060; Plano at 0.48860; Frisco at 0.46500; Austin at 0.42090 and Roanoke at 0.37512. He also talked about the impact fees and the tax abatement threshold — inside the Central City at $250,000 and outside Central City at $10 million. Mr. Berzina spoke about the acquisition flurry as follows: November 3, 2009: Berkshire Hathaway /BNSF BNSF — Fortune 142 Berkshire Hathaway's largest acquisition ever S44B December 14, 2009: Exxon Mobil /XTO Exxon Mobil (Fortune 1) & XTO (Fortune 330) $31 B plus $ l OB existing debt Wise diversification play by Exxon January 4, 2010: Chesapeake Sells 25% Barnett Shale Play France's Total SA will pay $2?513 CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 24 of 28 Economic Development Activity Update (cont'd) (Agenda Item 6) ► Fort Worth Chamber of Commerce — David Berzina, Executive Vice President of Economic Development (cont'd) January 4, 2010: Novartis Acquires Majority Control of Alcon 52% additional stake in Alcon $28.1B 77% majority stake — total cost $38.513 Mr. Berzina then spoke about the Fort Worth Chamber of Commerce Economic Development Department. He advised that it was The Institute for Supply Management. He pointed out that the ISM Manufacturing Report on Business was: • Issued the first business day of each month • The Institute's Business Survey Committee was composed of 300 purchasing and supply executives who responded to a monthly questionnaire designed to elicit facts about changes in production from the previous month. • PMI was a composite index based on new orders, production, employment, supplier deliveries and inventories (each weighed at 20 %) • A PMI reading above 50 percent indicated that the. manufacturing economy was generally expanding; below 50 percent indicated that it was generally contracting. • A PMI in excess of 41.2 percent, over a period of time, generally indicated an expansion of the overall economy. Mr. Berzina presented a chart showing the Manufacturing ISM Report on Business showing the activity for 2009. He showed another chart which reflected information of manufacturing at a glance for November and December of 2009. Mr. Berzina advised of the employment situation as: ■ The number of persons who experienced some unemployment in 2008 increased by 6.1 million to 21.1 million in 2009 CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 25 of 28 Economic Development Activity Update (cont'd) (Agenda Item 6) ► Fort Worth Chamber of Commerce — David Berzina, Executive Vice President of Economic Development (cont'd) ■ Since the start of the recession in December 2007, both the number of unemployed persons and unemployment rate have doubled in the U.S. ■ Unemployment rate for persons without a high school diploma reach 11.7% while the unemployment rate for those with a college degree was a low 3.5% ■ Last month Texas had the largest over - the -month increase in employment adding 17,300 jobs. Mr. Berzina reviewed charts showing the unemployment rate, the U. S. annual light vehicle sales, the new construction building permits and value, annual permits for new construction, DFW residential foreclosures, DFW commercial foreclosures, the S & P 500 index for 2000 to 2009, the Dow Jones Industrial Average and the NASDAQ Composite Index. Mr. Berzina concluded his presentation. Chairman Jordan expressed appreciation to Mr. Berzina for his informative presentation and advised of the need to conclude the meeting due to time constrains before the Pre - Council Meeting of the Fort Worth City Council. He apologized to Mr. Jennings and Ms. Navejar. He requested that they speak briefly before the committee and come back before the committee at the committee's next meeting for a full presentation. ► City of Fort Worth Housing and Economic Development — Robert Sturns, Manager, Housing and Economic Development Department Due to the lack of time remaining in the meeting, this presentation was passed over. ► Fort Worth Metropolitian Black Chamber of Commerce — Devoyd Jennings, President and CEO, Fort Worth Metropolitan Black Chamber of Commerce Mr. Devoyd Jennings, President and CEO, of the Fort Worth Metropolitan Black Chamber of Commerce spoke briefly on the activities of the Metropolitan Black Chamber. He advised of several events that brought people to Fort Worth, i.e.. the Familiarization Tour. He CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 26 of 28 Economic Development Activity Update (cont'd) (Agenda Item 6) ► Fort Worth Metropolitian Black Chamber of Commerce — Devoyd Jennings, President and CEO, Fort Worth Metropolitan Black Chamber of Commerce (cont'd) spoke about their Construction Services Program which could be utilized to deal with some of the problems that had been presented at this meeting. He spoke about the passing of one of their employees, Ricky Allen, and that his position had been recently filled. Mr. Jennings introduced to the committee members Alan R. Smith, who would now be in charge of their Construction Services Program. Mr. Jennings provided background information on Mr. Smith's experience. He introduced Barbara Bolden, Membership Coordinator, and Miss Bostick, their assistance, who had to leave the meeting. Mr. Jennings spoke about their two leadership programs, the Young Entrepreneurs Program (ages 14 to 18) and PATHS Forward Program, for older adults. Mr. Jennings spoke about bidding for the "best value" and that this provided for opportunities to look at lowest bid and look at other factors in the bid to provide for other opportunities. Mr. Jennings recognized Major Attaway, their Director of Economic Development. Mr. Attaway spoke about a new company that they had brought to the City of Fort Worth. He recognized Ms. Marilyn Locus, with McConnell, Jones, Lanier and Murphy, LLP. He indicated that her company moved to Fort Worth as a result of their Fam Tour. Mr. Jennings introduced Anthony Birkerstand, who was one of the young contractors that had grown up in their contractors program under Ricky Allen, and advised that he was doing work all over the City. Chairman Jordan apologized for the lack of time at the meeting for his presentation and advised that he would be first on the agenda for the next meeting. ► Fort Worth Hispanic Chamber of Commerce Activities for FY 2009 — Rosa Navejar, President and CEO, Fort Worth Hispanic Chamber of Commerce Ms. Rosa Navejar, President and CEO of the Fort Worth Hispanic Chamber of Commerce, spoke briefly before the committee. She stated that they would be back next month to make a full report. She pointed out that their Chamber was into building capacity for diverse business and also looking at what the Hispanic population was doing here in North Texas. She added that they were taking on an issue with workforce development and also education. She stated that they had several components they were doing on workforce. She advised of several events that they were sponsoring this year. Ms. Navejar also advised of their work with the Convention and Tourism Bureau and referenced a 7000 bed night conference that was coming to Fort Worth in 2012. She concluded her comments and advised that they would be back next month. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 27 of 28 Economic Development Activity Update (cont'd) (Agenda Item 6) Chairman Jordan thanked Ms. Navejar for her brief presentation and apologized for the lack of time. He opened the floor for questions and /or comments. He advised that he was going to throw out a challenge to the Chambers. He indicated that the Fort Worth City Council was going to try to accelerate a lot of the road construction in the City and he challenged the Chambers to work with the City in order to spread the diversity and to also get the "best value" on those contracts. He challenged them to offer recommendations on how those projects could be accelerated and be completed in a faster way. This concluded the presentation and discussion on this agenda item. Executive Session (Agenda Item 7) Chairman Jordan advised that there was no need for the Executive Session on the items listed as follows: A. Seek the advice of its attorneys concerning the following items that are exempt from public disclosure under Article X, Section 9 of the Texas State Bar Rules, as authorized by Section 551.071 of the Texas Government Code: (i) legal issues related to any current agenda items; B. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third party; and, C. Discuss or deliberate negotiations relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. This agenda item was passed over. Request for Future Agenda Items (Agenda Item 8) Chairman Jordan requested that both of the Chambers' presentations be placed on the next agenda, as well as a statement on economic forecasting from each of the three Chambers as to where the City stands economically. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 28 of 28 Date of Next Regular Meeting — March 2, 2010 (Agenda Item 9) Chairman Jordan advised that the next regular meeting of the Housing and Economic Development Committee would be held on Tuesday, March 2, 2010. Adiourn (Agenda Item 10) With no further presentations or discussions, Chairman Jordan adjourned the regular meeting of the Housing and Economic Development Committee at 3:04 p.m., on Tuesday, February 2, 2010. These minutes approved by the Housing and Economic Development Committee on the 2 "d day of March, 2010. APPROVED: (f � Qa--� Jungus q rdan, hairm Minutes Prepared by and Attest: Marty Hendrix, Oity Secretary, CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 2, 2010 Page 28 of 28 Date of Next Regular Meeting — March 2, 2010 (Agenda Item 9) Chairman Jordan advised that the next regular meeting of the Housing and Economic Development Committee would be held on Tuesday, March 2, 2010. Adiourn (Agenda Item 10) With no further presentations or discussions, Chairman Jordan adjourned the regular meeting of the Housing and Economic Development Committee at 3:04 p.m., on Tuesday, February 2, 2010. These minutes approved by t Economic and Community Development Commit e on the 2 °d day of March, 2010.