HomeMy WebLinkAbout2020/11/17-Attachments-M&C 20-0841City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/17/20 M&C FILE NUMBER: M&C 20-0841
LOG NAME: 08FY2020BUSINESS EQUITY ORDINANCE
SUBJECT
(ALL) Approve the Availability and Disparity Study, Adopt New Business Equity Ordinance to Repeal and Replace Chapter 20, Article X of the City
Code and Replace All Previous Minority and Women Business Enterprise Ordinances and Adopt a Business Equity Firm Annual Goal of 25%
RECOMMENDATION:
It is recommended that the City Council:
1. Approve the attached Availability and Disparity Study conducted by CH Advisors, Inc.;
2. Adopt the attached Business Equity Ordinance with an effective date of January 1, 2021 that will replace all previous minority and women
business enterprise ordinances; and
3. Adopt an Business Equity Firm Annual Goal of 25 percent.
DISCUSSION:
This new Business Equity Ordinance represents a major revision to the City's existing Business Diversity Enterprise (BDE) Ordinance (Ordinance
Number 20020-12-2011) and will replace it. In March 2019, the City signed a contract with CH Advisors, Inc. to perform an Availability and
Disparity Study (the "Study"). CH Advisors, Inc. used quantitative data sources such as the City contract and vendor records, contract information
from prime vendors, US census data, ecetera, and qualitative data sources to include interviews with stakeholders, business owners, city staff and
other Texas disparity studies. CH Advisors, Inc. worked closely with the Economic Development Department, Office of Business Diversity staff,
and conducted extensive outreach to community stakeholders, prime vendors, minority and women businesses, advocacy groups, Minority and
Women Business Enterprise Advisory Committee (MWBE-AC), and City internal stakeholders over a period of twelve months and received
feedback as part of the Study. In May 2020, upon receipt of the completed Study and over a period of three months, the Diversity and Inclusion
Chief Equity Officer/Director held a series of virtual meetings (briefings on the study findings and recommendations) to the City Manager and
leadership team, individual Council members, department heads, Business Equity staff and the Public. In May and June, Colette Holt of CH
Advisors, Inc. and Christina Brooks, held a series of virtual meetings and presented the Study findings and recommendations to the Mayor and
City Council members, CMO, department heads, MWBE Advisory Committee, and Public.
The Study was subsequently used as the guiding document and starting point for determining what substantive ordinance changes would be
appropriate in response to the study. The Department of Diversity and Inclusion, Chief Equity Officer, with support from staff and input from the
departments, conducted an in-depth and extensive review process to formulate proposed changes to the existing BIDE Ordinance. The findings of
the Study resulted in redefining the City's Marketplace, the geographic area now three counties, Tarrant, Dallas, Johnson, and the boundaries of
the City of Fort Worth extending into or bordering the three additional counties of Denton, Parker and Wise. Based on the Study research, the input
of the M/WBE-AC, feedback from community stakeholders, vendor interviews, and the City internal stakeholders, the major proposed Ordinance
changes include: replacing the current four BIDE programs with a narrowly -tailored M/WBE program; Business Equity firms can count their self -
performance on prime contracts; increased ability to set race and gender specific goals on a contract -by -contract basis; enhanced internal
processes to strengthen participation of Business Equity Firms (minority -owned and women -owned businesses); increased threshold for setting
Business Equity goals on projects from $50,000.01 to $100,000.00; and more as stated in the ordinance attached to this M&C; added incentives
to encourage Business Equity participation as primes; and the establishment of more narrowly -tailored annual overall goals. The Study
recommended an Annual Goal of 25%.
Business Equity goals can only be legally used to the extent to which there is statistically significant underutilization in specific race and/or gender
categories. The courts consider availability and disparity studies like the Study to be an acceptable method to validate underutilization. This
Business Equity Ordinance provides for a Program that addresses specific statistically significant underutilizations, is a product of the historical
progress realized by the previous Business Diversity Enterprise Ordinance and continues to provide Business Equity Firms with opportunities to
compete for and participate in City procurement opportunities.
State and local governments are legally required to periodically validate whether there continues to be a statistically significant underutilization of
Business Equity firms in order to continue to apply Business Equity goals. Therefore, the new Business Equity Ordinance requires a new disparity
study to begin five years after the effective date of the ordinance.
The existing BIDE Ordinance was adopted by the City Council on December 13, 2011 and became effective on June 1, 2012. If adopted, the new
ordinance will become effective on January 1, 2021 and terminate December 31, 2030 unless reauthorized after completion of the required
disparity study referred to above. This effective date allows for sufficient transition time to further educate all stakeholders and to make the
necessary changes to the existing processes, forms and documents.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that approval of these recommendations will have no material effect on City funds.
Submitted for City Manager's Office bT. Fernando Costa 6122
Originating Business Unit Head: Christina Brooks 8988
Additional Information Contact: Gwen Wilson 2676
Angela Rush 6155