[Economic Development Committee on April 16, 2025.]
[00:00:11]
EIGHTH, 2025 AND THE TIME IS NOW TWO O'CLOCK.I'M MAYOR PRO TEM, MARTHA CASTEX TATUM CHAIR OF OUR ECONOMIC DEVELOPMENT COMMITTEE.
AND I'D LIKE TO CALL THIS MEETING TO ORDER.
I'D LIKE TO WELCOME EVERYONE IN STAFF TODAY, UM, INCLUDING ALL OF OUR GUESTS THAT ARE HERE, UM, ADE.
WE DO HAVE, UH, COUNCIL MEMBER RAMIREZ HERE.
COUNCIL MEMBER FLICKINGER IS HERE, AND WE HAVE STAFF FROM DISTRICT B TASHA JACKSON'S OFFICE STAFF FROM DISTRICT C COUNCIL MEMBER CAYMAN'S OFFICE STAFF FROM THE DISTRICT OF DESTINATION, CAROLYN EVANS CHAZ'S OFFICE, UM, AND ALSO STAFF FROM COUNCIL MEMBER ALCORN'S OFFICE.
THANK YOU ALL FOR BEING HERE TODAY.
UM, VICE CHAIR FLICKINGER, DO YOU HAVE ANY REMARKS YOU'D LIKE TO MAKE PRIOR TO US BEGINNING? NO, MA'AM.
THIS MEETING IS OPEN TO THE PUBLIC BEING HELD IN PERSON AND VIRTUALLY.
WE ARE ALSO BROADCASTING VIA HTV COUNCIL MEMBERS AND STAFF.
IF YOU'LL HOLD YOUR QUESTIONS UNTIL THE END OF THE PRESENTATION, AND IF YOU'D LIKE TO SPEAK, WE'LL DEFINITELY GET YOU IN THE QUEUE.
UH, THERE ARE TWO MEMBERS OF THE PUBLIC WHO HAVE SIGNED UP TO SPEAK TODAY.
UM, IF YOU ARE HERE AND YOU'D LIKE TO, THERE IS A SIGNUP SHEET.
UM, OUR AMAZING INTERN, BRADEN IS MONITORING THAT SIGN
UM, AND WE CAN GET YOU TO SIGN IN THERE.
UM, WE ARE READY TO HEAR FROM THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT.
WE DO HAVE SENIOR STAFF ANALYST ANDREW BUSKER HERE, AND HE'S GOING TO PRESENT ON THE TEXAS ENTERPRISE ZONE PROPOSAL.
MR. BUSKER, IF YOU ARE READY, WE ARE READY TO HEAR FROM YOU.
SO I'M ANDREW BUSKER WITH THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT.
UM, WE'RE HERE TODAY TO TALK ABOUT, UH, TEXAS ENTERPRISE ZONE PROGRAM.
SO THE PROGRAM SPECIFICALLY, UH, WE'RE LOOKING AT THE JUNE 2ND APPLICATION DEADLINE THROUGH THE GOVERNOR'S OFFICE.
SO, TO GIVE YOU ALL A REFRESHER ON THE TEXAS ENTERPRISE ZONE, UM, IT IS CREATED OUT OF THE TEXAS TAX CODE CHAPTER 2303.
UH, IT IS ADMINISTERED BY THE STATE AS A QUARTERLY ROLLING APPLICATION PROCESS, AND IT'S INTENDED FOR COMPANIES TO INVEST IN, UM, UNDER RESOURCED CENSUS TRACKS.
UM, AND THOSE ARE UPDATED THROUGH THE, UM, THE CENSUS BUREAU, UM, CENSUS AND, UM, THAT REGULAR REPORTING.
SO A, UM, COMPANY THAT APPLIES DIRECTLY THROUGH THIS PROGRAM.
BUT IN THAT APPLICATION, IT REQUIRES A NOMINATION FROM EITHER A MUNICIPALITY OR THE COUNTY.
UM, THE STATE WOULD THEN REIMBURSE STATE SALES AND USE TAXES FOR AWARDED PROJECTS.
UH, NOMINATIONS DO NOT REQUIRE ANY FUNDING FROM THE MUNICIPALITY.
UM, FOR THE STATE ORGANIZES THE TEXAS ENTERPRISE ZONE, UH, INTO A BIENNIUM, UM, BUCKET.
SO EACH COUNTY OR MUNICIPALITY RECEIVES NINE NOMINATIONS PER BIENNIUM.
AND JUNE 2ND IS THE EIGHTH AND FINAL NOMINATION ROUND FOR THIS BIENNIUM CYCLE.
THE CITY OF HOUSTON SO FAR HAS NOMINATED FOUR PROJECTS.
UM, THREE THAT WE KNOW OF HAVE BEEN AWARDED A TZ DESIGNATIONS, AND WE'RE PROPOSING TO USE ONE OF OUR FIVE REMAINING NOMINATIONS, UH, FOR THIS APPLICATION CYCLE.
SO, THE TEXAS ENTERPRISE ZONE, UM, HAS DIFFERENT INVESTMENT, UM, CATEGORIES HERE BASED ON THE LEVEL OF INVESTMENT AS WELL AS THE, UM, MAXIMUM NUMBER OF JOBS THAT ARE INCLUDED IN IN THE PROJECT.
THE MAJORITY OF THE NOMINATIONS THAT THE CITY OR CITY COUNCIL NOMINATES, UM, IS THIS ENTERPRISE PROJECT CATEGORY.
SO BETWEEN 5 MILLION AND ALMOST 150 MILLION, UH, FOR CAPITAL INVESTMENT, AS WELL AS A MAXIMUM NUMBER OF 500 JOBS, INCLUDING NEW AND RETAINED.
SO, LOOKING AT THE NOMINATION FOR THIS CYCLE, UM, WE, THE MAYOR'S OFFICE OF ECONOMIC DEVELOPMENT PROPOSES TO NOMINATE POWELL ELECTRICAL SYSTEMS INCORPORATED.
THEY ARE A DESIGNER, MANUFACTURER AND PACKAGER OF ELECTRICAL SYSTEMS HEADQUARTERED IN HOUSTON.
THEIR PROJECTS SERVE INDUSTRIAL AND UTILITY COMPANIES IN DISTRIBUTING, CONTROLLING, GENERATING, OR MANAGING ELECTRICAL
[00:05:01]
ENERGY SYSTEMS AND OTHER DYNAMIC PROCESS SYSTEMS. NEXT SLIDE PLEASE.SO ABOUT THE PROJECT SPECIFICALLY, UM, THE COMPANY PLANS TO, UH, SPEND $8 MILLION OVER THE NEXT FIVE YEARS, AND THAT $8 MILLION WILL BE DIVIDED BETWEEN TWO DIFFERENT COMPANY LOCATIONS.
UM, EACH OF THEM ARE IN, UM, DISTRICT I, AND YOU CAN SEE ON THE MAP HERE THAT THEY'RE BOTH KIND OF EAST AND WEST OF HOBBY AIRPORT.
UM, ONE OF THE SITES IS LOCATED WITHIN AN ENTERPRISE ZONE, AND THEN THE OTHER SITE HAS SEVERAL ENTERPRISE ZONES NEARBY THE PROJECT PLANS TO, UH, CREATE 15 JOBS AND THEN RETAIN 649 JOBS.
UM, THE AVERAGE SALARY ACROSS ALL OF THESE JOBS IN THEIR APPLICATION IS ABOUT 105,000, UM, AND A HALF, UM, FOR THEIR AVERAGE ANNUAL SALARY.
UM, SO JUST AS A NOTE, THE, UM, TZ PROGRAM CAPS THE LEVEL OF BENEFIT AT 500 JOBS.
UM, SO THEY WOULD ONLY BE, UM, RECEIVING A, UM, SALES TAX REIMBURSEMENT FROM THE STATE FOR UP TO 500 JOBS, EVEN THOUGH THEY PLAN TO RETAIN MORE THAN THAT.
SO THE $8 MILLION INVESTMENT, AS I MENTIONED, IS, UH, DIVIDED BETWEEN THE TWO SITES.
UM, THE SITE LOCATED AT 8 5 5 0 MOSLEY, UM, THEY PLAN TO INVEST AND REPLACE THEIR, UH, WASTEWATER SYSTEM AS WELL AS UPGRADES TO TOOLING ASSEMBLY AND TILT TABLES AND OTHER EQUIPMENT USED IN MANUFACTURING ELECTRICAL COMPONENTS.
AND THEN THE OTHER SITE AT 7 2 3 2 AIRPORT, UH, $2 MILLION WILL BE INVESTED TO CONDUCT UPGRADES TO THE FACILITY'S HVAC AND IT INFRASTRUCTURE.
UH, IT MIGHT BE IMPORTANT TO NOTE HERE FOR YOU ALL THAT, UM, CITY COUNCIL PREVIOUSLY NOMINATED, UM, POWELL ELECTRICAL SYSTEMS, UM, IN 2013 AND AGAIN IN 2020.
UM, WHEN THE CITY NOMINATED POWELL IN 2013, THE COMPANY EMPLOYED 1,312 PEOPLE, WHILE CURRENTLY THE COMPANY EMPLOYS 1,785 PEOPLE ACROSS BOTH SITES.
SO THEY'VE HAD, UM, SIGNIFICANT GROWTH IN THE PAST, UM, LITTLE OVER 10 YEARS OR SO.
SO THE NOMINATION RESOLUTION, UH, IS INTENDED TO BE ON THE APRIL 30TH AGENDA FOR YOU ALL TO CONSIDER.
AND THEN THAT GIVES THE COMPANY ENOUGH TIME TO RECEIVE THE, UM, NOMINATION IF IT'S APPROVED, AND THEN INCLUDE THAT IN THEIR APPLICATION TO THE STATE, UH, WHICH HAS THE, THE HARD DEADLINE OF, OF JUNE 12TH.
SO, AT THIS TIME, I'LL TAKE ANY QUESTIONS.
UH, THERE ARE NO COUNCIL MEMBERS IN QUEUE, UM, COUNCIL MEMBERS OR STAFF, ARE THERE ANY QUESTIONS? SECOND VICE CHAIR, VICE CHAIR, INGER.
SO WHAT EXACTLY DO THEY GET AS FAR AS THEIR SALES TAX, THEIR REBATE? HOW MUCH MONEY IS EXPECTED TO BE RETURNED TO 'EM? SURE.
SO IF, UH, WE WILL GO BACK TO SLIDE FOUR HERE.
SO THE, THE MAXIMUM POTENTIAL REFUND IS ABOUT, IS $1.25 MILLION.
AND SO THAT IS DIVIDED OVER THE FIVE YEARS.
UM, SO IT'S ABOUT $2,500 PER JOB THAT'S IN THEIR APPLICATION.
SO HERE WOULD BE, UM, 200 AND UH, $2,500, UM, UP TO 500 EMPLOYEES.
THESE ARE EXISTING FACILITIES, CORRECT.
WHAT EXACTLY IS IT THAT WE GET OUT OF IT? WELL, WE'RE GETTING OUT OF IT ARE, UM, A REINVESTMENT IN THESE COMPANY'S ABILITY TO BE IN THE FOREFRONT OF THEIR INDUSTRY.
SO ON TOP OF A, UM, WE'LL SAY A FLUCTUATING UNCERTAIN ECONOMY, THE COMMITMENT TO RETAIN 649 JOBS IS SIGNIFICANT.
BUT POWELL'S DOING QUITE WELL.
UM, THEIR STOCK IS DOING QUITE WELL.
THE COMPANY'S DONE QUITE WELL.
YOU JUST GAVE THE NUMBERS OF JOBS THEY GREW SINCE THE LAST TIME.
SO I, I DON'T REALLY SEE THAT WE GET ANYTHING OUT OF THIS.
UM, AND I UNDERSTAND THESE ARE STATE DOLLARS AND NOT CITY DOLLARS YET.
YOU KNOW, MY CONSTITUENTS ARE AS CONCERNED ABOUT WHETHER OR NOT THE MONEY COMES OUTTA THEIR LEFT POCKET VERSUS THEIR RIGHT POCKET.
AND, AND I DON'T SEE WHAT WE ACTUALLY GET OUT OF THIS.
I MEAN, THEY'VE GOT, UM, FACILITIES IN ILLINOIS ALSO ONE IN IN OHIO, UH, CANADA AND ENGLAND.
I CERTAINLY DON'T SEE THEM MOVING ANY JOBS TO THOSE LOCATIONS.
'CAUSE I DON'T THINK THEY'RE ANY LOWER COST THAN WHAT HOUSTON IS.
[00:10:01]
WORKFORCE FOR WHAT POWELL DOES, UH, IS AS GOOD HERE AS IT IS ANYWHERE.I MEAN, I JUST REALLY DON'T SEE WHAT WE GET OUT OF THIS.
COUNCIL MEMBER RAMIREZ, THANK YOU, ANDREW, FOR THE PRESENTATION TO COUNCIL MEMBER FLICKINGER POINT.
HOW DO WE KNOW POWELL WOULDN'T HAVE CREATED THESE JOBS ANYWAY, WHETHER THEY GET THE, UH, NOMINATION OR NOT? WE DON'T.
YEAH, WE DON'T, WE DON'T, WE DON'T KNOW.
BASICALLY THE, THIS IS A TOOL FOR US TO HELP TO MAKE SURE THAT, UM, CITIZENS IN OUR COMMUNITY HAVE GOOD PAYING JOBS.
I MEAN, WHEN YOU LOOK AT THE SALARY FOR THE JOBS, UM, I THINK IT WAS LISTED AT $105,000.
THIS COMPANY IS RIGHT OUTSIDE OF HOBBY AIRPORT IN DISTRICT.
I, UM, THESE, UH, COMPANIES ARE LOOKING TO HIRE PEOPLE IN THAT AREA.
THIS IS AN OPPORTUNITY FOR FOLKS THAT LIVE IN TRADITIONALLY UNDERSERVED COMMUNITIES TO HAVE ACCESS TO JOBS THAT ARE LIVING WAGE JOBS.
UM, WE DON'T KNOW IF THEY WOULD HAVE, UM, MOVED THE JOBS OR KEPT THE JOBS HERE, BUT THIS IS JUST A, A TOOL THAT THE STATE USES TO HELP US TO INCENTIVIZE COMPANIES, UH, TO COME TO OUR CITY AND BE IN OUR CITY AND PROVIDE QUALITY JOBS TO OUR RESIDENTS.
UM, IT'S JUST ONE OF THE TOOLS.
AND AS A COMPANY, THEY ARE TAKING ADVANTAGE OF THE OPPORTUNITY TO GARNER STATE, UM, EXEMPTIONS OR FUNDS FOR THE JOB CREATION.
AND AS, UM, A CITY, IT IS OUR VALUE PROPOSITION TO BE ABLE TO PROVIDE GOOD PAYING JOBS TO HOUSTONIANS SO THAT THEY CAN BUY HOMES SO THAT THEY CAN HAVE A GOOD QUALITY OF LIFE.
SO THIS IS JUST ONE OF THE TOOLS IN OUR ECONOMIC DEVELOPMENT TOOLBOX AS A CITY FOR US TO MAKE SURE WE HAVE, UM, QUALITY JOBS IN OUR CITY.
AND IF I COULD ADD TO THAT, THE LARGEST GROUP OF RETAINED JOBS, OUR FRONTLINE SUPERVISORS OF PRODUCTION AND OPERATING WORKERS, THEIR SALARY RANGE IS 63,000 TO 94,000.
SO THESE ARE PEOPLE WHO ARE WORKING DIRECTLY ON THE PRODUCT LINE SO THAT, YOU KNOW, IF THEY DON'T RETOOL TO CHANGE THEIR PRODUCT LINE, I MEAN, IT WOULD BE A BUSINESS DECISION IF THEY'RE GOING TO INVEST IN THIS SITE VERSUS ANOTHER SITE.
BUT WE DON'T, WE DON'T KNOW THAT WE BRING THIS TO YOU ALL IN GOOD FAITH.
COUNCIL MEMBER, MARTIN COUNCIL MEMBER, ARE YOU DONE? COUNCIL MEMBER? UM, I'LL, I'LL GO BACK IN THE QUEUE IF YOU WANT TO.
NO, UH, IS THAT WHAT THEY'VE TOLD US? THAT THEY WOULD, WOULD, UH, IF THEY GET THIS NOMINATION, THEY'LL RETOOL AND ADD SOME JOBS THAT THEY WOULDN'T OTHERWISE? YES.
SO THEY'RE, THEY ARE GETTING IMPROVED EQUIPMENT AND THEN THEY'RE ADDING 15 JOBS.
COUNCIL, YOU COUNCIL MEMBER MARTINEZ.
THANK YOU MAYOR PROTO AND CHAIR.
UM, JUST WANTED TO SAY, UH, AND YOU'VE, YOU'VE KIND OF HIT ON A LOT OF THOSE, THOSE POINTS, BUT, UH, POWELL, UH, ELECTRIC, UH, THEY, THEY'RE A, A GREAT, UH, NEIGHBOR AS WELL.
UM, UH, THEY HAVE THE BOARD MEMBER AT THE HOBBY MANAGEMENT DISTRICT, SO THEY'RE VESTED IN, IN WHAT'S HAPPENING.
AND SO, UM, TO, TO BE ABLE TO, UM, YOU KNOW, NOT, NOT JUST HELP CREATE SOME, SOME OF THIS INVESTMENT AND, AND MAKE SURE THAT JOBS ARE READILY, READILY AVAILABLE FOR, FOR RESIDENTS.
AND IT'S NOT JUST DISTRICT EYE RESIDENTS, BUT, BUT THOSE FOLKS THAT ARE WITHIN THE, THE DISTRICT EYE AREA, I THINK IT'S ALSO IMPORTANT AND TO SHARE THAT, UH, THAT THIS COMPANY IS, IS, IS NOT JUST JUST HERE JUST TO COME IN AND TAKE, YOU KNOW, TAKE THAT INCENTIVE, BUT THEY'RE ALSO INVESTED IN MAKING SURE THAT THE COMMUNITY'S SAFE, UH, MAKE SURE THAT THE COMMUNITY IS, IS SEEING BUSINESS GROW AROUND THEM AS WELL.
AND SO, UM, EXCITED ABOUT THIS.
LOOKING FORWARD TO COMING TO COUNCIL, COUNCIL MEMBER FLICKINGER, YOU TALKED ABOUT THEIR JOB GROWTH FROM THE LAST TIME.
UH, I, I ASSUME THEY RECEIVED SOME TYPE OF ABATEMENT OR INCENTIVE LIKE THIS.
WHAT WERE THE NUMBERS AGAIN? SO, UM, THEY, FIRST, THEY'VE APPLIED, THIS WILL BE THEIR THIRD TIME, UM, SEEKING NOMINATION FROM THE CITY.
AND SO THE FIRST TIME WAS IN 2013, AND THE SECOND TIME WAS IN 2020.
SO IN 2020, HOW MANY JOBS DID THEY SAY THEY WERE GOING TO ADD? I DON'T HAVE THAT IN FRONT OF ME, BUT I COULD PROVIDE THAT TO YOU.
IN 2013, UM, THEY WERE EMPLOYING 1,312 PEOPLE.
AND SO THEN THEY'RE CURRENTLY AT 1,785.
SO THEY ADDED OVER 400 JOBS YEAH.
FROM, YOU KNOW, THE PAST 10 YEARS.
UM, I MEAN, MY CONCERN TO PUT IT MAYBE A LITTLE MORE SUCCINCTLY IS I THINK WE'RE GIVING THEM A TAX BREAK
[00:15:01]
TO DO EXACTLY WHAT THEY WOULD DO IF WE DIDN'T GIVE 'EM THE TAX BREAK.I MEAN, I GUESS THAT THAT WOULD BE UP TO THE STATE IF THEY'RE DOING THEIR AWARDING FOR THIS PROCESS.
AND I THINK POWELL'S TO, TO COUNCILMAN MARTINEZ'S POINT, I THINK POWELL'S, POWELL'S A GREAT COMPANY.
UM, I THINK GOOD CITIZEN, ALL THAT, BUT THERE'S A LOT OF COMPANIES THAT MEET THEIR CRITERIA, THEY SHOULD APPLY.
WELL, AND OBVIOUSLY WHAT DO WE GOT A TOTAL OF NINE? WE HAVE NINE SPOTS.
WE'LL, AND COULD BE, I MEAN, I WOULD REALLY HOPE THAT THESE KIND OF THINGS WOULD BE, YOU KNOW, SIGNIFICANTLY ADDING TO THE EMPLOYMENT BASE COMPANIES THAT WOULDN'T BE HERE OTHERWISE, THAT TYPE OF THING.
AND EVEN, YOU KNOW, WHEN WE'RE GIVING IT TO SOMEBODY THAT WOULDN'T BE HERE, IF THERE'S SOMEBODY THAT'S ALREADY HERE DOING THE SAME WORK, YOU KNOW, THOSE PEOPLE IN ESSENCE ARE SUBSIDIZING THEIR COMPETITORS BECAUSE THE TAXES THEY PAY.
SO, TOWARDS THIS, AND COUNCIL MEMBER FLICKINGER, I, I MEAN, MR. BUSKER IS NOT GOING TO GO BACK AND FORTH ON THE LEGISLATION OF WHY THESE ARE CREATED.
IF YOU HAVE A SPECIFIC QUESTION ABOUT THIS NOMINATION, I THINK WE NEED TO DO THIS.
THANK YOU TO THE, TO THE NEXT ONE.
UH, YEAH, ANDREW, JUST FOR CLARIFICATION, SO FOR, FOR POWELL, THEY WOULD GET THE REFUND UP TO $2,500, NOT JUST FOR THE NEW JOBS CREATED, BUT FOR UP TO 500 EMPLOYEES.
IS THAT RIGHT? UP TO 500 EMPLOYEES, INCLUDING THE 15 NEW AND, UH, THE RETAINED EMPLOYEES AS WELL? YEAH.
SO IF THEY GET THE MAX REFUND ALLOWED, UH, UP TO 500 EMPLOYEES, IF I, IF MY MATH IS RIGHT, THEY'RE GETTING 1.25 MILLION.
IN, IN REBATED UM, SALES TAXES.
FOR, FOR CREATING 15 NEW JOBS AND RETAINING THE DIFFERENCE.
WE APPRECIATE YOU AND WE LOOK FORWARD TO THIS COMING ON THE COUNCIL AGENDA.
AND COUNCIL MEMBERS CAN VOTE THEIR PLEASURE AT THAT TIME.
NEXT, WE'RE GOING TO MOVE TO THE OFFICE OF BUSINESS OPPORTUNITY DIRECTOR LENCIA HORDE, AND SHE WILL PRESENT ON OUR DISPARITY STUDY UPDATES.
DIRECTOR WARD, WE'RE READY TO HEAR FROM YOU.
THANK YOU COUNCIL MEMBERS FOR HAVING ME AGAIN.
UH, TO ALL THE STAFFERS WHO ARE HERE, THANK YOU AS WELL.
UM, WE PREPARED A SMALL PRESENTATION.
UH, WE'RE COMING BACK TO JUST DISCUSS OUR COMMUNITY ENGAGEMENT AROUND THE DISPARITY STUDY, SOME OF THE FEEDBACK THAT WE'VE RECEIVED, UM, AND SOME, UM, PRESENTATIONS THAT WE'VE DONE.
SO WE'LL HIGHLIGHT SOME OF THAT.
UM, SO WE'LL START WITH THE COMMUNITY ENGAGEMENT.
UM, SO WE STARTED TO DO COMMUNITY ENGAGEMENT JUST TO GO OUT AND HIGHLIGHT, OF COURSE, UM, WHAT WAS GOING ON WITH THE DISPARITY STUDY, BUT AS WELL TO KIND OF, UM, TALK ABOUT SOME OF THE INFORMATION THAT WAS BEING, UM, PUT OUT INTO THE COMMUNITY AND MAKING SURE THAT WE ARE SHARING, UM, THE FACTS ABOUT HOW THE DISPARITY STUDY WAS CONDUCTED AND FACTS ABOUT THE DATA.
AND SO THOSE MEETINGS ALSO, UM, DISCUSSED THE LEGAL PREMISE.
WE TALKED ABOUT, UM, THE CROWSON, UM, THE CROWSON CASE, AND WHY WE DO DISPARITY STUDIES IN THOSE MEETINGS.
BUT WE ALSO TALKED ABOUT THE QUALITATIVE VERSUS THE QUANTITATIVE DATA IN THOSE MEETINGS, AND ENSURING THAT, UM, THE PUBLIC UNDERSTOOD THAT THE QUANTITATIVE DATA IS ALL SPEND.
IT IS NOT BASED ON A SAMPLE, IT'S BASED ON ALL SPEND ON ALL CONTRACTS.
AND THAT IS HOW WE, UH, DETERMINE DISPARITY.
AND THAT THE QUALITATIVE ANECDOTAL DATA IS BASED ON SAMPLE OF VENDORS.
AND THAT HAS NOTHING AT ALL TO DO WITH THE DISPARITY.
SO WE WANTED TO CLEAR UP THAT, THAT THE ANECDOTAL DATA SPEAKS TO WHY INDIVIDUALS FEEL THEY'RE DISCRIMINATED AGAINST, WHY THEY FEEL LIKE WE ARE DI MAYBE THE CITY'S HARD TO DEAL WITH.
MAYBE OUR CONTRACTS ARE CONVOLUTED, MAYBE.
BUT WHAT THE DISPARITY IS SOLELY BASED ON IS ALL THE CONTRACTS THAT WE SPEND DOLLARS ON IN THE CITY OF HOUSTON.
SO WE WANTED TO SPEAK TO THAT.
UM, WE ALSO WANTED TO TALK ABOUT THE DATA COLLECTION AND HOW THAT WAS DONE.
THAT DATA WAS COLLECTED, UM, PURELY FROM OUR SPEND FROM OUR SAP.
UM, AND IT WAS DONE OVER FIVE YEARS.
SO THAT, THAT IS UNDERSTOOD AS WELL.
[00:20:01]
WERE HELD VIA TEAMS. I WANNA THANK THE COUNCIL MEMBERS THAT SET UP THOSE MEETINGS AND BROUGHT, UM, INDIVIDUALS TO THE MEETINGS, BROUGHT ORGANIZATIONS TO THE MEETINGS.I THINK IT WAS EXTREMELY HELPFUL.
UH, WE HAD, AND THERE'S A LIST FOR YOU, UM, IN YOUR PRESENTATION, BUT WE HAD MANY OF THE CHAMBERS OF COMMERCE, UM, PRESENT, UM, THROUGHOUT DIFFERENT MEETINGS.
WE HAD MANY OF THE PROFESSIONAL ORGANIZATIONS PRESENT DURING DIFFERENT MEETINGS.
THE LARGEST MEETING THAT WE HELD WAS BASICALLY AT THE ION.
UM, AND THAT MEETING WAS THIS WEEK.
UM, AND IT WAS A VERY GREAT, IT WAS A HUGE REPRESENTATION, VERY DIVERSE MEETING OF SMALL BUSINESSES, PROFESSIONAL ORGANIZATIONS, CHAMBERS, UM, ALL OF OUR GROUPS, PRESUMPTIVE GROUPS I THINK WERE PRESENT.
AND SO THAT MEETING WENT REALLY WELL.
WE GOT LOTS OF FEEDBACK, LOTS OF QUESTIONS.
WE'VE BEEN ABLE TO ANSWER LOTS OF QUESTIONS.
SO IF YOU GO ON THROUGH THE SLIDES, THIS, THESE ARE THE GROUPS THAT REGISTERED AND ATTENDED OUR MEETINGS.
UM, WE'VE HAD LONG MEETINGS AND SHORT MEETINGS.
AND, UH, SO THOSE QUESTIONS HAVE VARIED.
UM, WE ALSO RECEIVED QUESTIONS THROUGH THE PORTAL.
WE ALSO RECEIVED QUESTIONS DURING OUR, UM, REGISTRATION FOR THE ION MEETINGS.
SO WE WERE ABLE TO COMBINE A LOT OF THEM.
WE DID LIKE A TWO HOUR MEETING.
UM, BUT WE WERE ABLE TO ANSWER QUITE A FEW OF THOSE QUESTIONS.
SO THOSE ARE ALL OUR COMMUNITY ENGAGEMENT GROUPS.
SO I'M GONNA TALK A LITTLE BIT ABOUT THE FEEDBACK THAT WE'VE GOTTEN THUS FAR.
SO ON THE DATA COLLECTION, I'VE PUT 'EM IN THE CATEGORIES FOR YOU.
UM, FOR DATA COLLECTION, UM, WE'VE GOTTEN MAKING BETTER, BETTER USE OF OUR PLATFORMS, WHICH IS SOMETHING THAT WE ARE WORKING ON UTILIZING OUR B TWO G SYSTEM MUCH MORE EFFICIENTLY THAN WE HAVE IN THE PAST.
THERE ARE, UM, HOUSTON'S ACTUALLY THE FIRST, UM, USER OF B TWO G.
UM, AND WE HAVE MOST OF THE FEATURES ALREADY IN THE SYSTEM, BUT WE ARE NOT, I DON'T THINK, UTILIZING THEM TO THE BEST OF OUR ABILITY.
SO THAT IS SOMETHING THAT WE'RE WORKING ON, WORKING ON OUR CLOUD CAPABILITY, WORKING ON AI.
SO THAT'S A LOT OF THE DATA COLLECTION IMPROVEMENTS THAT WE CAN MAKE.
UM, BUILDING EXTERNAL DASHBOARDS WAS SOMETHING THAT, UM, WE'VE GOTTEN FEEDBACK ON, UM, THE CAPABILITY OF SHARING THAT TRANSPARENTLY WITH NOT ONLY, UM, OUR PUBLIC, BUT THOSE WHO ARE IN THE APPLICATION PROCESS.
SO PEOPLE SPOKE TO THAT AS WELL.
UM, FOCUSING OUTREACH TO OUR MW SBE TO OUR DATA TRENDS, UM, WHERE WE ARE SEEING, OR WHERE WE SEE THERE WILL BE DIPS IN UTILIZATION AS WE MOVE THIS PROGRAM FORWARD.
UM, BEING ABLE TO FOCUS OUR OUTREACH ON THOSE DIPS BASED ON THE DATA AND MONITORING THAT MORE CLOSELY.
AND THEN UTILIZING OUR INTERNAL ALERTS FOR UNDER UTILIZATION IS SOMETHING THAT WE HEARD AT THE, THE LAST MEETING THAT, UM, FIRMS WERE UNDERUTILIZED, UM, AND MAYBE UNDERUTILIZED FOR MOST OF THE CONTRACT OR UP UNTIL THE END, AND WE WERE NOT AWARE OF IT, OR WE BECAME AWARE OF IT LATER IN THE CONTRACT.
AND SO, UTILIZING OUR AUTOMATIC ALERTS THAT ARE ON OUR PLATFORM TO HELP IN INFORM US AND FOR US TO INFORM THE SUBCONTRACTORS, UM, ABOUT PARTICIPATION THAT CATEGORY INCLUDES HOW WE COUNT PARTICIPATION.
INCREASING OUR MWB ENGAGEMENT FOR GOODS, UH, WAS FEEDBACK THAT WE HAD FROM ONE GROUP, UM, FOR OUR CO-OP PROGRAMS AND A LOT OF OUR GOODS THAT WE CIRCULATE.
UM, THE FEEDBACK WAS THAT THERE WEREN'T A LOT OF MINORITY GROUPS THAT WERE IN THE GOODS CATEGORY.
SO INCREASING THE OUTREACH, UH, PRESENTATIONS ON EBI, EXCUSE ME, IN THE EBI PORTAL AND BIDDING.
AND SO WE DO KNOW THAT, UM, STRATEGIC PROCUREMENT DIVISION HAS A NEW EBI PORTAL.
AND SO HAVING MORE ENGAGEMENT ALONG WITH OBO AROUND HOW YOU BID IN THE PORTAL, THE USE OF THE PORTAL, THE DOCUMENTS IN THE PORTAL, ONBOARDING OUR SUBS AND NOTICE TO PROCEED.
THERE WAS ALSO SOME FEEDBACK THAT WE RECEIVED FROM SUBCONTRACTORS THAT, UM, THEY MAY BE ON A CONTRACT AND, AND NOT KNOW IT.
AND SO TO UH, DEAL WITH THAT, WE THOUGHT WE SHOULD PROBABLY DO NOTICE TO PROCEED KICKOFFS.
WE DO THOSE WITH THE PRIMES AND THE SUBS THAT ARE INITIALLY ON THE CONTRACT.
UM, BUT WE REALIZED THAT WE COULD DO THAT EARLIER IN THE CONTRACT SO THAT WE KNOW THOSE SUBS THAT ARE COMING ON BUILDING IN TIERS FOR BIDDING AND LOOKING AT TIERED BIDDING FOR SMALLER CONTRACTORS WHO NEED TO BID ON SMALLER LEVEL CONTRACTS AND HAVING THEM BID AS PRIMES AND HAVING TIERED BID, UH, TIERED BIDS SO THAT ALL OF THE CONTRACTS AREN'T THE LARGER FIRMS THAT ARE PRIMES ALL THE TIME.
UM, AND ALSO WORKING FOR SPECIFIC OUTREACH ON SPECIFIC SCOPES OF WORK.
AS WE TALK MORE ABOUT THESE NACE CODES AND HOW THERE ARE INDIVIDUALS WHO ARE IN THE PRESUMPTIVE GROUPS THAT ARE ON NACE CODES THAT ARE USED LESS FREQUENTLY OR MAY NOT BE UTILIZED
[00:25:01]
AS MU AS MUCH.WE CAN ALSO DO OUTREACH AROUND, UM, THOSE GROUPS, UM, ON THOSE NACE CODES.
AND WE'LL TALK ABOUT THAT IN ENGAGING IN PARTNERSHIPS, ENGAGING PRIMES.
UM, SOME OF THE FEEDBACK WAS MEET UP OPPORTUNITIES BETWEEN PRIMES AND SUBS.
WE HAVE MEET THE BUYER, WHICH IS A VERY LARGE EVENT AT THE, UM, END OF THE YEAR, BUT WE ARE LOOKING AT DOING THINGS ALONG THE YEAR TO MAKE SURE, I KNOW WE'RE GONNA DO SOMETHING WITH DISTRICT I IN THE FALL TO MAKE SURE THAT WE ARE ACTUALLY GETTING THEM TO THE TABLE.
WE HAVE A LOT OF PRIMES THAT'LL SAY, OH, I WOULD, I WOULD WORK WITH SOME MORE SUBS, BUT I DON'T KNOW THEM.
UM, AND SO, YOU KNOW, THIS IS A RELATIONSHIP BUSINESS, SO MAKING SURE THAT WE'RE DOING MORE TO HAVE MORE MEETUPS THAT ARE SMALLER AND MORE INTIMATE SO THAT THEY CAN GET TO KNOW ONE ANOTHER.
UM, HAVE OUR PARTNERS HOST THOSE MEETUPS INSTEAD OF OBO BEING THE, UM, THE ENTITY THAT'S HOSTING AND, AND MOVING THAT FORWARD, WORKING MORE WITH OUR PARTNERS.
UM, SOME OF THE GROUPS THAT WE HAD, UM, THAT I DIDN'T THINK WOULD BE AT THE TABLE WERE LIKE THE MANAGEMENT DISTRICTS.
UM, A LOT OF THE MANAGEMENT DISTRICTS ARE OPEN TO HAVING THEIR FIRMS COME TO THE TABLE AS PART OF THOSE MEETUPS AND NOT JUST THE CHAMBERS, BUT, UM, THE MANAGEMENT DISTRICTS HAVE A LOT OF HANDS-ON AND THEY DO A LOT OF ACTIVITIES, A LOT OF OUTREACH, AND I THINK WE COULD UTILIZE THEM MORE EFFECTIVELY.
UM, HOSTING WITH OUR COUNCIL DISTRICTS, LIKE I TALKED, WE SPOKE ABOUT, WE TALKED DOING, UM, AN EVENT WITH DISTRICT I, BUT HAVING THEM, UM, MORE TARGETED TOWARD THE ZIP CODES WHERE WE SEE WE HAVE UNDER UTILIZATION AS WELL, HIGHLIGHTING PAYMENTS DURING, UM, PROGRESS MEETINGS CURRENTLY.
WE DO HAVE PROGRESS MEETINGS WITH DEPARTMENTS ALONG THE WAY AS WE HAVE CONTRACTS.
UM, AND AT TIMES PAYMENTS ARE LEFT OUT OF THOSE MEETINGS.
BUT MAKING THAT A STANDARD TO HIGHLIGHT PAYMENTS DURING THE PROGRESS MEETINGS AND NOT JUST HAVE IT ABOUT THE WORK, WE USUALLY TALK ABOUT THE WORK WE'LL HIT THE GOAL AND NOT NECESSARILY HIT THE PAYMENT.
UM, SOME OF THE ISSUES AROUND, SAY WITH THE ANECDOTAL FEEDBACK WHERE WE WERE SAYING WE DID A LOT OF OUTREACH, BUT PEOPLE DIDN'T WANT TO TALK, YOU'LL FIND THAT IN THIS BUSINESS, SUBCONTRACTORS ARE NOT GONNA TALK AND THEY'RE NOT GONNA SPEAK UP BECAUSE THEY DON'T WANNA BE BLACKBALLED OFF OF CONTRACTS.
UM, AND SO ONE OF THE THINGS THAT WE LOOKED AT IS HAVING OUR PARTNERS, UM, BE A PART OF THAT.
AND IF WE'RE HAVING THAT TO COME UP AT THE PROGRESS MEETINGS, WE ARE BRINGING IT UP AND IT'S NOT NECESSARILY THE SUBCONTRACTOR BRINGING IT TO THE TABLE.
SO THAT'S A PROTECTION FOR THEM.
UM, PROCUREMENT MATCHMAKING, UM, WE TALKED AND THIS, IT'S KIND OF THE SAME DEAL AS, YOU KNOW, GOING OUT AND, AND HAVING PEOPLE TO MEET ONE ANOTHER.
BUT LOOKING AT IT FROM A FORECASTING STANDPOINT, UH, WE HAVE DONE THAT IN THE PAST.
WE DO IT MORE IN THE DBE PROGRAM THAN WE DO IN THE LOCAL PROGRAM WHERE WE KNOW THE JOBS THAT ARE COMING OUT BECAUSE DDBE IS FORECASTED MORE THAN THE LOCAL PROGRAM IS.
AND SO THEY'RE FORECASTED THREE YEARS OUT, SO WE KNOW WHAT'S COMING.
BUT IF WE DO HAVE THAT OPPORTUNITY HERE TO KNOW WHAT, WHAT PROJECTS ARE COMING OUT LONG TERM, THEN WE CAN DO MORE MATCHMAKING ON THE FRONT END.
UH, VENDOR ROUND TABLES, HOSTING ROUND TABLES FOR OUR VENDORS TO PROVIDE FEEDBACK DURING THE YEAR.
UH, WE DO HAVE OUR ADVISORY BOARD WHERE, UM, VENDORS ARE ABLE TO BE AT THOSE MEETINGS.
AND WE HAVE, WE ARE ACTUALLY PROMOTING AT PEOPLE ATTEND THOSE ADVISORY BOARD MEETINGS SO THEY COULD HEAR THE UPDATES, UH, MORE FREQUENTLY.
BUT IF WE HAVE ROUND TABLES IN BETWEEN, BETWEEN OUR VENDORS, OUR PRIMES AND OUR SUBCONTRACTORS, UM, LAST YEAR WE, UH, STARTED TO PUT TOGETHER, BUT WE DID NOT ROLL IT OUT BECAUSE OF ALL THE CHANGES THAT WE SAW THAT WERE GONNA COME WITH THE PROGRAM.
UM, A SUBCONTRACTOR ENGAGEMENT PROGRAM.
A TRAINING PROGRAM, UM, MANY OTHER SUBCONTRACTORS DON'T RECEIVE THE INFORMATION THAT THE PRIMES RECEIVE.
AND SO THEY ARE KIND OF MOVING BLINDLY AND THE PRIMES ARE LEADING THEM INSTEAD OF US GIVING THEM THEIR OWN FORUM.
AND SO HAVING MORE ROUND TABLES WITH OUR SUBCONTRACTORS, UM, A CONTRACTOR FORUM, WHICH WOULD BE FOR OUR PRIMES, BECAUSE SOMETIMES THE PRIMES HAVE NOT HONESTLY READ THEIR CONTRACTS AND, AND UNDERSTOOD WHAT THEY ARE, UM, OBLIGATED TO DO.
AND SO MAKING SURE THAT WE'RE HAVING, UM, MORE CONTRACTOR FORMS WHERE THEY'RE REQUIRED TO BE A PART OF THOSE FORUMS AS PART OF THEIR OBLIGATION.
AND THEN UNDER ACCOUNTABILITY, SOME OF THE FEEDBACK WAS UTILIZING OUR PARTNERS AS ADVOCATES.
UM, THAT CAME FROM A FEW OF THE PROFESSIONAL ORGANIZATIONS.
WHEN WE MET WITH THEM, THE, UM, PROFESSIONAL ENGINEERS, UM, THEY SPOKE ABOUT, UH, AGAIN, PEOPLE NOT WANTING TO SPEAK OUT BECAUSE THEM FEELING LIKE THEY WOULD BE BLACKBALLED AND NOT USED, RIGHT? AND SO WE TALKED ABOUT THEM BEING THE ADVOCATES THAT THOSE TYPE OF WHISTLEBLOWER SITUATIONS CAN GO TO THE ADVOCATE GROUPS AND THEN COME TO US, UM, SO THAT WE UNDERSTAND WHAT WE CAN FOLLOW UP ON.
AND IT'S NOT NECESSARILY COMING FROM A SUBCONTRACTOR, UM, UTILIZING PARTNERS FOR ONGOING ANECDOTAL.
SO INSTEAD OF WAITING UNTIL THE NEXT STUDY, HAVING ANECDOTALS ALONG THE WAY AND HAVING THOSE TO BE ANONYMOUS, UM, IS
[00:30:01]
A WAY THAT WE CAN COLLECT THAT INFORMATION ONGOING BECAUSE REALLY WE, WE DO A LOT OF OUTREACH AND SOMETIMES IT'S A HIT AND MISS, RIGHT? YOU CAN HAVE AN EVENT AND HAVE TWO PEOPLE.YOU CAN HAVE AN EVENT AND HAVE 50 PEOPLE.
AND SO HAVING ONGOING ANECDOTALS WITH SOME FEEDBACK, UM, REJECTING PAY APPS WITHOUT SUB PAYMENTS.
AND SO THIS IS ALWAYS AN ISSUE WITH, UM, PROMPT PAY.
SO WE'RE SUPPOSED TO ENSURE PROMPT PAYMENT, BUT THAT IS NOT ALWAYS THE CASE ON THE FRONT END OR THE BACK END.
AND SO, UM, HAVING DEPARTMENTS CONSISTENTLY, BECAUSE WE HAVE SOME DEPARTMENTS THAT WILL NOT ISSUE THE PAYMENT IF EVERYTHING IS NOT THERE, IF THE SUBCONTRACTORS HAVE NOT BEEN PAID, IF THE CERTIFIED PAYROLL HAS NOT BEEN INCLUDED, THEN THEY WILL HOLD OUT THE PAYMENT.
BUT THEN WE HAVE OTHERS THAT DON'T.
AND SO HAVING THAT CONSISTENT ACROSS THE BOARD, WHICH WOULD BE THE BUY-IN FROM OUR DEPARTMENT DIRECTORS, BUT IT'S SOMETHING THAT WOULD HELP OUR SUBCONTRACTING COMMUNITY.
UM, AND IMPROVING PROMPT PAY, IMPROVED PROMPT PAYMENT.
AND THAT'S, THAT'S ONE OF THE RECOMMENDATIONS FOR ACCOUNTABILITY.
AND THEN IN PARTNERSHIPS, UM, ONE OF THE, UM, UM, ITEMS THAT OR UM, FEEDBACK THAT WE RECEIVED WAS TRAIN THE TRAINER FOR CERTIFICATION CLINICS.
WE CURRENTLY HAVE CERTIFICATION CLINICS, UH, WHERE WE'LL HAVE OUR TEAM GO OUT AND THEY WILL, UM, PROVIDE ASSISTANCE TO THOSE WHO WANT TO BECOME CERTIFIED BY HELPING THEM TO FILL OUT THEIR APPLICATION, KIND OF WALKING THEM THROUGH IT AND HELPING THEM UNDERSTAND THE DOCUMENTS THAT ARE REQUIRED.
UM, IT, YOU'RE NOT COMPLETE AT THAT POINT.
UM, BUT WHEN THEY'RE OUT OF THE OFFICE, OF COURSE THEY'RE NOT CERTIFYING.
SO I WOULD PREFER THAT THEY'RE IN THE OFFICE.
AND SO WE TALKED ABOUT HAVING ORGANIZATIONS THAT WE TRAIN, UM, TO PROMOTE THOSE CLINICS FOR US AND CONDUCT THOSE CLINICS FOR US.
UM, SOME OF THE CHAMBERS AND MANAGEMENT DISTRICTS WOULD LIKE TO HOLD SPEED PARTNERING.
THEY CALL IT SPEED DATING, BUT I CALL IT SPEED PARTNERING.
UM, SO THAT THEY BRING OUT THE ENTITIES AND DO MORE OF THOSE, LIKE I SAID, ONE-ON-ONES, UH, EVERYBODY SAID THAT THEY NEED TO PUT THE SUBS IN FRONT OF THE PRIMES MORE OFTEN.
UM, AND SO THAT WAS SOME OTHER FEEDBACK, UM, NOTIFICATIONS OF LOW AVAILABILITY TO INCREASE CERTIFICATIONS.
AND SO, UM, WELL I HAVE A COUPLE OF, UM, EXAMPLES ON THE NEXT FEW PAGE.
SO YOU CAN SEE HOW WE LOOK AT AVAILABILITY.
BUT WHERE WE SEE THERE IS LOW AVAILABILITY.
WE COULD DO MORE OUTREACH DEFINITELY AROUND AREAS WHERE WE DON'T HAVE ENOUGH VENDORS IN THOSE, UM, AREAS.
UM, UTILIZING MORE VIDEO PRESENTATIONS FOR OUR OUTREACH WAS ONE OF THE SUGGESTIONS.
UM, WE TALKED ABOUT OUR MWB REPORT THAT IS, UM, PUBLISHED, UM, BUT THAT VERY FEW PEOPLE READ.
AND SO, UM, ONE OF THE FEEDBACKS WAS THAT WE DO A VIDEO AND SEND OUT THAT VIDEO THAT JUST HIGHLIGHTS THE INFORMATION, SEND IT TO ALL THE CHAMBERS, PARTNERING WITH, UM, GREATER HOUSTON PARTNERSHIP, PARTNERING WITH HTV, UM, AND, AND OTHER MEDIA POINTS TO KIND OF PUSH THAT OUT SO THAT IT'S NOT JUST WRITTEN PAPER 'CAUSE NOBODY LIKES TO READ ANYMORE, BUT READING IS FUNDAMENTAL.
SO THAT IS, UM, THAT'S THAT SECTION.
I'M GONNA TALK A LITTLE BIT ABOUT THE NEW GOALS.
I KNOW THIS IS SMALL, IT'S VERY SMALL FOR ME.
IT'S THE ONLY WAY I COULD GET IT ON THE SAME PAGE.
I WANTED TO KINDA HIGHLIGHT WHAT IT LOOKS LIKE SIDE BY SIDE.
SO WE TOOK, UM, AS YOU CAN SEE HERE IS A CONSTRUCTION SPEED CUSHIONS EXAMPLE.
AND ON THE LEFT WHAT YOU HAVE IS A CONSTRUCTION RELATED PROJECT, UM, FROM 2022 IS A HPW PROJECT, $2 MILLION.
AND THESE ARE, THIS IS HOW WE DETERMINE THE GOALS, BASICALLY.
SO WHAT YOU'LL SEE HERE IS THAT THE, THE SCOPES OF WORK HAS BEEN OUTLINED, THE NA CODE IS OUTLINED, THE DOLLAR AMOUNT THAT WE HAVE IN THERE, WHAT PERCENTAGE OF THE CONTRACT THAT IS.
THEN YOU'LL SEE IN COLUMN E, THE CERTIFIED FIRMS THAT WE HAVE THAT ARE AVAILABLE, WILLING AND WORK ABLE TO WORK ON THAT.
THE TOTAL NUMBER OF FIRMS BASED ON THE CENSUS DATA.
ONCE WE DO THE CALCULATION, YOU'LL HAVE A, A GOAL ON THE RIGHT.
AND SO PREVIOUSLY, UM, AT THE BOTTOM, WHAT YOU'LL SEE IS THE CALCULATED CONTRACT SPECIFIC GOAL.
YOU'LL SEE A 6.04, WHICH IS ROUNDED UP TO SIX.
AND A WB A 1.95 THAT'S ROUNDED UP TO TWO.
UM, IF WE WERE TO, AND THESE NUMBERS ARE NOT, THIS IS, UH, LIKE AN ESTIMATE THAT WE DID, WHICH DID LIKE KIND OF A PUSHUP OUT OF WHAT THE EXISTING SPS ARE AND WE PUSHED THEM INTO THE CATEGORY.
UM, AND WHAT WILL FALL OUT IN THE SAME, SAME NA CODES, SAME EXAMPLE, JUST, UM, MIGRATING OUR SBS OVER OUR W MBE WHO ARE HISPANIC OVER TO THE SBE PORTION.
THE MBE CATEGORY GOAL WOULD BE 10.61.
THE WB WILL ROUND IT UP TO FIVE.
THE SB WILL BE ROUNDED UP TO WELL ROUNDED TO 11.
SO THAT'S AN EXAMPLE OF CONSTRUCTION.
[00:35:02]
TRY TO DO EACH CATEGORY.SO YOU CAN SEE PROFESSIONAL SERVICES AND ENGINEERING IS OUR NEXT EXAMPLE.
UM, THIS IS FOR A, UM, ARCHITECTURE ENGINEERING DESIGN SERVICES FOR THIRD WARD MULTI-SERVICE CENTER.
THIS IS FROM ACTUALLY A RECENT 1 20 25.
UM, AND WHAT YOU'LL HAVE HERE IS JUST THE ARCHITECTURAL SERVICES AND THE NACE COAST FOR THIS SPECIFIC CONTRACT AND HOW THAT'S CALCULATED OUT ON, UM, CONSTRUCTION GOALS.
YOU ARE REQUIRED TO MEET THOSE GOALS SEPARATELY.
ON THE OTHER GOALS IS A COMBINED GOAL, WHICH MEANS THAT WE ADD IT UP AND YOU CAN MAKE THE GOAL ACROSS THE BOARD.
UM, THE GOAL FOR THIS ONE, MWBE IS 20.14 ON THE UPDATED ONE.
WITH THE SBE, YOU'VE GOT MBE 15 WBE SEVEN SBE FOUR.
AND SO THAT'S BASED ON THE AVAILABILITY IN THOSE AREAS.
UM, THIS ONE IS PROVIDING THE CITY OF HOUSTON WITH SAFETY EQUIPMENT FOR OUR TRAFFIC CONTROL.
UM, THIS WAS FROM 2022 A HBW CONTRACT SPECIFIC, UM, REVIEW.
AND THIS ONE YOU HAVE, UM, SUPPLIES, STENCILING, SPECIALIZED FREIGHT DELIVERY AND THOSE NACE CODE, THE AVAILABILITY OF FIRMS. UM, THE GOAL AT THAT POINT WAS 3.96 WITH THE NEW CALCULATION.
THAT GOAL WOULD BE MBE EIGHT, WBE SEVEN SBE THREE.
AND THEN THE NEXT ONE, LAST ONE SERVICES.
SO THIS IS ALL THE NEW CATEGORIES.
OF COURSE, WE'RE SEPARATING GOODS AND SERVICES OUT.
SO FOR SERVICES, WE ARE LOOKING AT A LANDSCAPE AND GROUND MAINTENANCE CONTRACT.
UM, AND THIS IS THE, THESE ARE THE NACE CODES THAT APPLY WHEN YOU DO THE COMBINED GOAL, IT'S 14.21, ROUNDED TO 14.
AND WITH THE NEW CALCULATION, UH, THE MBE IS EIGHT, THE WBE IS FOUR, AND THE SBE IS SIX.
AND SO AS YOU CAN SEE, THE, UM, GROUPS THAT SHIFT OVER THE NEW AVAILABILITY FALLS INTO THE SMALL BUSINESS ENTERPRISE CATEGORY.
AND THIS SHOWS THE AVAILABILITY JUST FOR THIS CONTRACT.
THIS IS, OF COURSE, WE DO THEM CONTRACT SPECIFIC FOR THEM ALL.
SO THIS IS NOT LIKE STANDARD THAT IT WOULD CHANGE EACH TIME DEPENDING ON THE NACE CODES THAT WE USE.
SO, UM, TO WRAP UP, UM, OUR NEXT STEPS IS TO TAKE THE INFORMATION THAT WE RECEIVE AND GO BACK AND SEE HOW WE CAN PUT THAT INTO OUR POLICIES AND IF THERE'S SOME CHANGES THAT WE'LL MAKE TO THE ORDINANCE AND TO COME BACK, UH, WITH THOSE, UM, ITEMS AND TO MOVE THIS FORWARD.
THAT IS THE END OF MY PRESENTATION QUESTIONS.
UM, I WILL TELL YOU THAT I LOVE THE COMMUNITY FEEDBACK.
I THINK, UM, A LOT OF TIMES THE PEOPLE CLOSEST TO THE PROBLEMS TYPICALLY HAVE GOOD SOLUTIONS.
UM, SO THE FEEDBACK THAT WE'VE RECEIVED FROM A LOT OF THE STAKEHOLDERS HAS BEEN HELPFUL TO ME.
ONE OF THE THINGS THAT I HEARD IN THE CONVERSATION ON MONDAY THAT WAS A LITTLE SURPRISING TO ME, AND I WANTED TO KIND OF FIGURE OUT HOW THIS ACTUALLY HAPPENS, IS PEOPLE WERE SAYING, UM, I WAS ON A CONTRACT AND I DIDN'T KNOW I WAS ON A CONTRACT.
HOW DOES, HOW DOES THAT HAPPEN? I MEAN, IF I'M A PRIME, UH, I MEAN, DID THAT MEAN THAT A PRIME IS ACTUALLY PUTTING AN MWBE ON THE CONTRACT WITHOUT THEIR KNOWLEDGE? I MEAN, YES MA'AM.
THERE NO CHECKS AND BALANCE FOR THAT.
I MEAN, WHAT I THOUGHT ABOUT AFTER, AFTER THE MEETING WAS LIKE, UM, THE DONATION BOXES,
I MEAN, HOW DO YOU, SO HOW DO YOU SUBMIT A CONTRACT WITHOUT TALKING TO A SUB? THAT IS AN ONGOING IRRITATION FOR ME.
UM, AND A PAIN POINT FOR MYSELF AND THE DEPARTMENT.
UM, AND SO AT THE FRONT END, YOU ARE SUPPOSED TO AS A PRIME, GO AND SPEAK TO THESE PEOPLE AND SAY, HEY, THESE ARE THE ITEMS THAT I NEED FOR THIS CONTRACT.
'CAUSE WE'RE TELLING YOU THE PERCENTAGE UP FRONT AND THIS IS HOW MUCH YOU'RE, HOW MUCH WORK CAN YOU DO IT? ARE YOU ABLE TO DO IT AND GIMME THE QUOTE FOR IT? RIGHT? AND THEN THEY SEND IT OVER TO US A LOT OF TIMES, UH, REALLY WHAT HAPPENS IS THEY WAIT UNTIL THE LAST DAY, THE DAY BEFORE THEY GO INTO THE DIRECTORY, THEY FIND A NACE CODE, THEY SELECT SOME PEOPLE, THEY PUT 'EM ON THERE, THEY SEND 'EM THROUGH THE PARTICIPATION PLAN.
SO NOW WE MOVE TO NOTICE TO PROCEED AND WE GET TO IT.
IF IT'S CONSTRUCTION, YOU MAY HAVE SOMEONE THAT STARTS NOW.
YOU MAY HAVE SOMEONE THAT STARTS NEXT
[00:40:01]
YEAR OR SUB, I MEAN, SO WE WILL SAY, YOU KNOW, YOU'RE GONNA USE THESE SUBS AND THEY'LL GIVE US LOIS AND THEN THEY GIVE US SUBCONTRACTOR AGREEMENTS ALONG THE WAY.UM, SO TO YOUR POINT, SOME OF THE THINGS THAT WE TALKED ABOUT THAT I TALKED ABOUT THAT WE'RE INSTITUTING IN THE NEW FISCAL YEAR IS THAT YOU WON'T GET ACCESS TO THE SYSTEM UNLESS YOU GIVE US SUBCONTRACTOR AGREEMENTS, WHICH MEANS THAT YOU'VE ACTUALLY TALKED TO THAT SUB, YOU HAVE AN AGREEMENT WITH THEM AND THEY KNOW THEY'RE GONNA WORK.
UM, AND THAT IS BECAUSE ONCE WE OPEN IT UP, THEN THEY JUST KEEP GOING, RIGHT? WE ALSO HAVE THE ISSUE OF I PUT FOUR PEOPLE ON HERE AND THEN I GET HALFWAY THROUGH AND I DEVIATE TO WHO I REALLY WANTED TO WORK WITH.
SO I'LL PUT SOME RANDOM FOLK ON THERE AND THEN I'LL GO FIND SOME PARTNERS OR THEY'RE MY USUAL SUSPECTS, AND THEN I DEVIATE TO THE USUAL PEOPLE.
UM, SO TO DEAL WITH THAT, WE'RE DOING, UM, THE SAME THING, WE'LL PROBABLY, HOPEFULLY ALLEVIATE A LOT OF THAT IS AT KICKOFF TO HAVE THOSE SUBCONTRACTORS AVAILABLE FOR THE KICKOFF MEETINGS.
SO WE REACH OUT AND SAY, HEY, YOU'RE ON THIS BID AT THE KICKOFF.
SO IS THERE ANY WAY ON THE DOCUMENTATION WHEN THEY BID THAT WE COULD SAY, UM, HAVE YOU SPOKEN TO THESE, UH, YOU KNOW, HAVE THEY AGREED TO BE A PART OF THIS BID? SO THEY SEND AN LOI, I THINK THEY'RE NOT TRUE.
THEY, THEY SEND AN LOI IS REQUIRED.
SO THEY SEND A LOI AND SOMEBODY'S SIGNATURE IS ON THERE.
UM, BUT I CONSTANTLY HAVE PEOPLE SAYING, I DIDN'T KNOW I WAS ON THERE.
UM, OR I FIND OUT LATER AND WE REACH OUT TO THEM 'CAUSE IT'S BEING UNDERUTILIZED.
LIKE WHEN YOU ALL SEE THE VERIFICATION IS BEING UNDER, THEN WE'LL REACH OUT AND SAY, YOU'RE BEING UNDERUTILIZED.
HAVE THEY REACHED? AND THEY'LL BE LIKE, NO, I DIDN'T EVEN KNOW I WAS ON THERE.
OR I TALKED TO 'EM ONE TIME AND THEN THEY NEVER REACHED OUT, GOT TO ME AGAIN.
I, I, I THINK THAT'S, THAT'S A LITTLE DISINGENUOUS.
AND THAT I THINK THAT IF COMPANIES ARE DOING THAT, THERE NEEDS TO BE SOME TYPE OF SOMETHING, A CONVERSATION ABOUT, UM, NOT DOING THAT AS THEY MOVE FORWARD.
WE HAVE, UM, I'VE ONLY BEEN HERE A FEW MONTHS, UM, BUT I HAVE HAD ONE, UM, COMPANY THAT HAD A PATTERN OF, UM, UTILIZING THE SAME PARTICIPATION PLAN AND THEN, UM, DEVIATING TO THE SAME OTHER FIRMS. UM, AND SO AFTER HAVING A CONVERSATION IN PERSON, UM, AND SAYING, YOU KNOW, IF, IF YOU KNEW IT, 'CAUSE THEY SAID, WELL, THE WORK ORDERS CHANGED.
WELL THEY, IT'S THE SAME WORK.
SO IF IT CHANGED THE LAST TIME AND THEY WEREN'T READY, WHY DID YOU THINK IT WAS GONNA CHANGE THIS TIME? AND THE SUBS WEREN'T GONNA BE, WERE GONNA BE READY.
UM, AND SO THIS TIME THEY'VE COME IN WITH A DIFFERENT PLAN WITH DIFFERENT PLAYERS.
AND SO THE OTHER THING THAT WE'VE UM, ACTUALLY PUSHED AROUND WITH, UH, PROCUREMENT IS HAVING INCENTIVES FOR COMPANIES TO UTILIZE DIFFERENT FIRMS. UM, AND NOT TO COME IN WITH THE SAME FIRM EVERY TIME YOU HAVE TO ROTATE, YOU GOTTA HAVE DIVERSITY AND THE DIVERSITY.
SO WE WANT YOU TO ROTATE, YOU KNOW, I KNOW YOU HAVE A RELATIONSHIP, BUT WE HAVE A LOT OF FIRMS THAT YOU CAN, TO YOUR POINT, WE HAVE A LOT OF FIRMS HERE WE CAN WORK WITH.
AND SO DON'T USE THE SAME FIRM EACH TIME.
MAYBE ROTATE 'EM AROUND AND DO EVERY TWO OR THREE, BUT WE ARE AT, WE ARE LOOKING AT DOING THAT COUNCIL MEMBER MARTINEZ.
UM, SO FIRST, YOU KNOW, TO THAT QUESTION, UM, THAT'S ONE OF THE REASONS WHY WE WANT, WE ARE GONNA BE HOSTING IN THE FALL OF, UH, COFFEE WITH THE CONTRACTORS, RIGHT? BECAUSE SOME OF THESE UNFORTUNATELY SUBS DON'T KNOW THAT THEY'RE BID BEING PUT ON, ON SOMEBODY'S BID.
UM, AND WE WANNA MAKE SURE WE CAN HELP CLOSE THE GAP.
UH, WE'VE HAD A VENDOR CERTIFICATION WORKSHOP AS WELL.
THANK YOU AND YOUR TEAM, UH, FOR HELPING TO HOST THAT IN.
AND WE'RE LOOKING AT DEFINITELY DIVING DEEPER INTO THESE KIND OF, UH, UH, UH, ACTIVITIES AWARENESS.
UM, AS, AS YOU'VE BEEN DOING THIS COMMUNITY FEEDBACK THE PAST FEW WEEKS, UM, THERE'S A LIST OF, OF DIFFERENT THINGS, WHETHER IT'S, UH, A ROTATING PROGRAM, YOU KNOW, REALLY FOLLOWING THROUGH WITH THAT TIER BIDDING, UH, BREAKING UP PACKAGES POSSIBLY.
UM, IF, IF THIS WAS IMPLEMENTED TWO, THREE YEARS AGO AND ACTUALLY BEING FOLLOWED THROUGH, DO YOU THINK THAT THERE WOULD BE DISPARITIES, UH, DISPARITY NOW IF IT WAS IMPLEMENTED TWO OR THREE YEARS AGO? YEAH, A LOT OF THE COMMUNITY FEEDBACK THAT FOLKS ARE ASKING FOR, FOR OFFICE OF BUSINESS OPPORTUNITY TO DO, UM, YOU KNOW, IF YOU BROKE UP A PACKAGE THAT WAS, LET'S SAY A CONSTRUCTION PACKAGE AND IT'S 15, $20 MILLION MM-HMM
AND INSTEAD OF DOING A PRIME AND YOU THEN JUST SEPARATE IT AND DO DEMO, YOU KNOW MM-HMM
A CONCRETE DEMO AND YOU JUST PUT THAT PACKAGE OUT THERE AND THAT WAY YOU ALLOW FOR A STRONGER SMALL BUSINESS OPPORTUNITY IN THAT SENSE, DO YOU THINK THAT THERE WOULD BE A DISPARITY? NOW? I THINK THERE MAY STILL BE A DISPARITY, BUT I THINK WE WOULD HAVE MORE SUBS AS PRIMES, MORE SMALL BUSINESSES WHO WERE PRIME CONTRACTORS.
AND THAT'S WHAT WE ACTUALLY WANT PEOPLE TO GET TO.
[00:45:01]
PEOPLE TO BE SUBS FOR 20 YEARS.I, I TALKED TO A FIRM ON MONDAY, IT'S LIKE, WE WOULD LOVE TO BE A PRIME, BUT THE WAY THE PACKAGES ARE BREAK BROKEN UP WITH THEY, WELL, THEY'RE GETTING LARGER AND LARGER, SO, RIGHT.
SO THAT'S A DEPARTMENTAL THING THAT I CAN'T GET IT TO, BUT I WOULD LOVE FOR THE DEPARTMENTS TO BREAK THEM DOWN JUST BECAUSE IT'S, UM, COUNTERACT IT'S, IT'S JUST COUNTERPRODUCTIVE TO WHAT WE'RE TRYING TO DO TO GET COMPANIES TO BE PRIMED AND, AND TO THAT.
RIGHT? I THINK THAT'S THE, THAT'S BEEN THE, THE, UM, THE REASONING WHY WE HAVE THIS PROGRAM IS TO ULTIMATELY HAVE FOLKS GRADUATE, RIGHT? UM, TO NOT JUST BE A-A-A-M-M-W-B, UH, YEAH, M-M-W-B-E.
UM, AND SO WORKING WITH OTHER DEPARTMENTS TO BREAK DOWN, BREAK THOSE CONTRACTS DOWN IS IMPORTANT.
AND I THINK, YOU KNOW, AS FOLKS THAT ARE LOOKING AT THE COMPLIANCE SIDE, I THINK Y'ALL SHOULD HAVE A VOICE IN SAYING, YOU KNOW, WE WANT TO CREATE A, A ECOSYSTEM THAT IS ACTUALLY BUILDING STRONG SMALL BUSINESS COMMUNITY THAT ULTIMATELY ARE PRIMES.
UM, AND, AND AGAIN, I THINK, I THINK IF WE'VE EITHER WOULD'VE, UH, IMPLEMENTED OR HAVE FOLLOWED THROUGH WITH SOMEONE LIKE THE ROTATING PROGRAM THAT THAT'S BEEN THERE, THAT HASN'T REALLY, YOU KNOW, BEEN PUT, PUT FORTH IN A, IN A WAY WHERE, UM, FOLKS ARE ACTUALLY, IT'S NOT JUST THE SAME SUB OR IT'S NOT THE SAME, UH, SAME PRIME.
UM, SO I, I HAVE CHALLENGES, YOU KNOW, THAT, YOU KNOW, WITH, I STILL HAVE CHALLENGES WITH THE DISPARITY STUDY.
AND IF I COULD BE PUT BACK IN THE QUEUE, GO AHEAD, FINISH.
UM, I STILL HAVE CHALLENGE WITH THE DISPARITY STUDY BECAUSE I FEEL LIKE, UM, THE OFFICE OF BUSINESS OPPORTUNITY, AND I KNOW THIS IS LANDED ON YOUR LAP DIRECTOR, UM, HAS NOT REALLY DONE THEIR DUE DILIGENCE TO ENSURE THAT THEY'RE GROWING BUSINESS IN A WAY WHERE, UM, THERE'S REAL OPPORTUNITY.
UM, AND I'LL BE BACK, I'LL, I'LL GET BACK IN THE QUEUE.
COUNCIL MEMBER FLICKINGER, THE, THE DISCUSSION ABOUT SUBS NOT BEING AWARE THAT THEY WERE ON HAS, THAT GOT A LOT TO DO WITH HOW WE END UP WITH THESE SHORTFALLS AND MEETING THE GOALS.
UM, IT DEPENDS ON THE CONTRACT.
SO SOMETIMES THE SHORTFALL IS, IS DUE TO THE CITY.
SO SOMETIMES THE SHORTFALL IS BECAUSE ESPECIALLY IN A LOT OF OUR, UM, HBW CONTRACTS, WHETHER THEY ARE WORK ORDER AND JOB ORDER CONTRACTS, WE, YOU ALL SEE A LOT OF THAT WHERE WE SAY THEY ARE SATISFACTORY DUE TO GOOD FAITH EFFORTS BECAUSE THE PRIME DID ALL OF THAT THEY WERE SUPPOSED TO DO.
BUT WE WILL CHANGE THE SCOPE OF WORK.
SOMETIMES WE DESCOPE WORK, SOMETIMES WE HAVE CONTRACTS THAT ARE FOUR OR FIVE YEARS, WE DON'T GET TO THAT WORK.
OR WE'LL HAVE, UM, CONTRACTORS ON A CONTRACT IN 2022.
WE DON'T GET TO THE WORK TILL 2023.
NOW I DON'T HAVE THE CAPACITY BECAUSE WHAT I BID ON IN 2022, IT'S TAKEN US SO LONG TO GET TO IT.
I'M ON THREE OTHER JOBS AND I WON'T BE ABLE TO WORK THAT ONE.
UM, WHERE I DON'T THINK IT'S SO MUCH, IT'S NOT A GOOD THING THAT THEY'RE PUTTING SUBS ON THERE, BUT YOU ARE ABLE TO DEVIATE.
SO IF YOU USE THE DEVIATION PROCESS THE WAY THAT YOU'RE SUPPOSED TO USE IT, YOU SHOULD BE ABLE TO GET ANOTHER FIRM IF SOMEONE CANNOT DO THE WORK.
JUST SEEMS LIKE IF I'M COUNTING, YOU KNOW, I SLAP DOWN COMPANY A'S NAME AND THEN COMPANY A DOESN'T KNOW ABOUT IT.
AND COMPANY A FOR WHATEVER REASON, CAN'T OR WON'T DO THE WORK.
SO, AND SOMETIMES WE GET WHERE THEY, WHERE THEY'LL PUT SOMEONE ON THERE AND THEN BECAUSE YOU DIDN'T HAVE THAT CONVERSATION UP FRONT, SO YOU DIDN'T GET THE CORRECT BID, THEN WHEN YOU COME TO GET THE WORK, YOU TELL 'EM TO BID ON IT AND THEN YOU DON'T WANNA AGREE WITH THEIR PRICE.
LIKE THAT'S NOT FAIR TO THE SUB.
SO SOMETIMES WE'LL LOCK 'EM IN AND SAY, THIS IS WHAT YOU, YOU KNOW, HAVE THERE FOR THE NEW PROGRAM.
WE WOULD, WE ARE PUTTING IN THE POLICIES, UM, SIMILAR TO THE DBE PROGRAM, THAT IF YOU PUT SOMEONE ON THERE, WE HAVE TO APPROVE THAT DEVIATION.
SO THERE ISN'T THIS WISHY WASHINESS.
SO IF YOU PUT 'EM ON THERE AT THE BEGINNING, YOU GOTTA WORK WITH 'EM UNLESS THEY AGREE TO COME OFF OR WE APPROVE THE FACT THAT THEY'RE NOT A GOOD CONTRACTOR.
THANK YOU CHAIR AND THANK YOU DIRECTOR FOR THE UPDATE.
WHEN WE HAD THE LAST MONTH'S ECONOMIC DEVELOPMENT COMMITTEE MEETING, WE HAD A LOT OF PUBLIC SPEAKERS AND WE HEARD ABOUT, UM, BONDING CAPACITY.
WE HEARD ABOUT PAYMENT AND THE GRADUATION PROGRAM, A NUMBER OF THINGS.
ARE THOSE COMPONENTS THAT CAN ALSO BE INCLUDED AS WE LOOK AT THIS STUDY? IMPROVEMENTS TO THE PROGRAM OVERALL? YES.
SO THOSE WERE SOME OF THE RECOMMENDATIONS.
UM, LOOKING AT OUR GRADUATION.
SO WE HAVE DONE, NOT A LOT, SO I DON'T WANT IT TO SOUND LIKE WE'VE DONE 50,000 WAIVERS.
WE HAVE NOT, BUT THE PROGRAM DOES ALLOW FOR WAIVERS, WHEREAS OTHER PROGRAMS, WHEN YOU GRADUATE, YOU GRADUATE, UM, BUT YOU'RE GRADUATING FROM A NACE CODE.
SO A LOT OF TIMES PEOPLE WILL COME BACK IN A DIFFERENT NACE CODE, SO THEY KIND OF KNOW HOW TO DO THAT.
UM, BUT THERE IS A GRADUATION PROCESS AND THERE IS A PROCESS.
THE WAIVER PROCESS IS NOT JUST YOU ASKING FOR A WAIVER, IT'S ACTUALLY A CRITERIA THAT YOU HAVE TO MEET IN ORDER TO COME BACK IN, UH, FOR THAT.
UM, THE BONDING ISSUE IS REALLY SOMETHING THAT WE'VE BEEN TALKING ABOUT WITH LEGAL, BECAUSE
[00:50:01]
THAT'S REALLY NOT OUR PURVIEW.UM, BUT THAT IS SOMETHING THAT WE FIND THAT CAN BE DIFFICULT FOR SMALLER FIRMS, ESPECIALLY ON CONSTRUCTION, WHERE IT'S JUST LIKE, YOU'RE GOING IN TO PAINT WHY YOU NEED A MILLION DOLLAR BOND.
SO IT JUST, YOU KNOW, IT'S SOMETHING THAT, THAT WE NEED TO WORK WITH LEGAL ON.
SO THAT WAS ALSO A RECOMMENDATION.
UM, A RECOMMENDATION FROM THE STUDY WAS PROMPT PAY.
UM, SOME OF THE PROMPT PAY WE CAN, UM, INFLUENCE ALONG WITH THE DEPARTMENT.
UM, AGAIN, HAVING DEPARTMENTS TO WORK MORE CLOSELY WITH.
WE HAVE SOME DEPARTMENTS WHERE CLEARLY WE GO INTO THE PROGRESS MEETING.
IF THE PAY APP HASN'T BEEN COMPLETED, THE CERTIFICATION, UM, I'M SORRY, CERTIFIED PAYROLL ISN'T IN, THEY'LL HOLD IT AND SAY, GET ALL OF YOUR SUBS CONFIRMED AND THEN WE'LL PAY YOU.
THAT'S WHAT METRO DOES AND WE SHOULD DO IT HERE AS WELL.
BUT, UH, WE'RE NOT CONSISTENT ACROSS ALL OUR DEPARTMENTS THAT WAY.
SO FROM FROM TODAY WE HAVE, WE HAVE THE UPDATE.
AT SOME POINT THE STUDY COMES BACK TO COUNCIL, BUT WHAT YOU'RE SUGGESTING IS CHANGES TO THE STRUCTURE THAT YOU HIGHLIGHTED IN THE SLIDES, UH, FROM THE, THE OLD WAY VERSUS THE NEW WAY THAT COME WITH THE STUDY.
IS, IS THAT IN WRITING SOMEWHERE, HOW THAT'S BROKEN DOWN OR WHAT SPECIFICALLY THOSE CHANGES ARE? SO IT'S PART OF THE, THE RECOMMENDATION.
SO THE HIGHLIGHTED PORTIONS THAT YOU SAW TODAY, SHOWING THE EXAMPLES MM-HMM
IS JUST AN EXAMPLE OF HOW THAT WOULD FLESH OUT LONG TERM.
SO IT'S NOT LIKE, UM, THE RECOMMENDATION IN THE ORDINANCE, THAT'S NOT WHAT IT IS.
SO IT'S HOW WE DO THE WORK AND HOW WE COME UP WITH THE GOALS.
I JUST WANTED YOU GUYS TO HAVE A, A VISUAL OF WHAT IT LOOKS LIKE ONCE PEOPLE GRADUATE INTO THE SVE AND WHAT THAT GOAL WOULD LOOK LIKE.
ARE YOU ASKING IF THIS IS IN THE ORDINANCE THAT'S GONNA COME TO COUNCIL BEFORE WE VOTE ON IT? RIGHT.
YOU MEAN THE, LIKE THE COMMUNITY FEEDBACK IF THAT'S IN THE ORDINANCE? NO, NO, NO.
THE THE POLICIES, THE CHANGES THAT WE WERE, THAT WERE SHOWN FROM THE TWO SLIDES, HERE'S HOW, OR THE, THE TWO EXAMPLES ON THE ONE SIDE.
UM, COUNCIL MEMBER MARTINEZ, YOU'RE BACK IN THE QUEUE.
UM, SO BACK TO I GUESS THIS SLIDE TWO CAPACITY.
UM, RIGHT NOW IN THE CURRENT, CURRENT UH, PROGRAM, WHAT'S, WHAT IS IT TO GRADUATE OUT IF YOU DIDN'T GET A RIGHT WAIVER? WHAT, WHAT DOES THE COMPANY LOOK LIKE IF YOU DIDN'T GET A WAIVER? YEAH, IT'S BASED ON YOUR SIZE STANDARDS, WHICH IS BY THE NACE CODE.
SO AN EXAMPLE I USUALLY GIVE IS THE 5 4 1 3 3 0, WHICH IS THE PROFESSIONAL SERVICE, THE ENGINEERING ONE, THE SIZE STANDARD IS $25.5 MILLION ON THAT NACE CODE OF REVENUES OVER FIVE YEARS, RIGHT? MM-HMM
SO WE WOULD AVERAGE THAT OUT AND YOU WOULD DO THAT AT RENEWAL.
WHEN YOU SEND IN YOUR RENEWAL, WE SEE THAT THEN YOU'VE ACTUALLY WENT OVER THAT, THEN YOU GRADUATE.
SO ABOUT 25 FOR PROFESSIONAL SERVICES, WHAT'S IT FOR? CONSTRUCTION AND WHAT IS IT FOR GOODS AND SERVICES.
OH, I'LL HAVE TO SEND THAT TO YOU.
WELL, IT, IT IS, BUT IT'S ALSO IMPORTANT FOR MY COLLEAGUES TO KNOW, RIGHT? MM-HMM
BECAUSE WHEN WE TALK ABOUT SHIFTING GROUPS INTO SB RIGHT? AND GRADUATING THEM, UM, AND THEY ARE NOT AT A $25 MILLION REVENUE, RIGHT? UM, IT'S ALMOST LIKE WE'RE SETTING THEM UP TO FAIL TO REALLY BE WITHIN A DISPARITY IN ANOTHER PROGRAM.
UM, AND SO I JUST WANNA MAKE SURE, UM, AGAIN, AS WE'RE CONTINUING TO HAVE THESE CONVERSATIONS, AND I'VE HAD THESE CONVERSATIONS WITH SEVERAL GROUPS AS WELL, MANY OF THEM THAT YOU'VE BEEN MEETING WITH, UM, IS, IS I STILL SEE CHALLENGES WITH, WITH, WITH HOW, UM, WE'RE LOOKING AT THE RECOMMENDATIONS THAT WERE PRESENTED TO US ABOUT SIX WEEKS AGO.
UM, IF, IF A, I'M A CONSTRUCTION COMPANY AND MY REVENUE IS ONLY 1510, UM, NOW I'M BEING FORCED INTO AN SBE PROGRAM, UH, BECAUSE OF OF THE DISPARITY STUDY RECOMMENDATIONS, UM, HOW SUCCESSFUL WILL I BE? UM, WILL I BE ABLE TO CONTINUE TO REALLY FULFILL THE BUSINESS? AND IF YOU'RE AT A CERTAIN, IN A CERTAIN BRACKET NOW AND BONDING, YOU DON'T HAVE ENOUGH BONDING CAPACITY, UM, YOU KNOW, IT'S TROUBLING TO KNOW THAT A LARGE AMOUNT OF FOLKS THAT WILL BE FORCED INTO ANOTHER PROGRAM, SBE WILL NOW BE STRUGGLING OR NOT HAVE THE, THE, THE REVENUE TO BE ABLE TO PUSH THROUGH THE BONDING CAPACITY TO BE ABLE TO PUSH THROUGH.
AND SO, UH, I THINK THOSE NUMBERS ARE, I THINK WE ALL NEED TO SEE THAT TO REALLY UNDERSTAND WHENEVER YOU START LOOKING AT THIS EXAMPLE, UM, YOU KNOW, WHEN YOU'RE SHIFTING OVER FROM MB WB AND NOW YOU'RE INCLUDING SB, UM, YOU KNOW, WILL YOU, WILL YOU HAVE THE CAPACITY WITHIN THE MB IN THE, IN THE FUTURE EXAMPLE, BUT ALSO WILL THE SBS BE ABLE TO ACCOMPLISH THOSE GOALS OR BE ABLE TO PARTICIPATE, UH, BECAUSE THEY'RE JUST NOT A GRADUATING WITHIN THE NASCO THAT YOU'RE TALKING ABOUT 25 MILLION FOR PROFESSIONAL SERVICES.
[00:55:01]
SO THE, UM, SO I WANNA ADDRESS THAT A LITTLE BIT.SO I THINK THAT THE SIZE STANDARD THAT YOU'RE SPEAKING OF, IT REMAINS THE SAME.
SO IF YOU WERE PERFORMING AT A CERTAIN LEVEL AS AN MBE, IT'S GONNA BE THAT AS AN SBE, 'CAUSE WE'RE NOT CHANGING THAT QUALIFICATION OR THAT SIZE STANDARD.
SO YOU'RE NOT GONNA GRADUATE OR NOT GRADUATE, YOU'RE GOING TO GO INTO THE CATEGORY AND STILL COUNT TOWARD THE PARTICIPATION, RIGHT? AND SO THE PARTICIPATION IS GONNA BE BASED ON WHAT THE GOAL COMES OUT TO BE AND HOW THAT AVAILABILITY SHIFTS FROM THE MBE TO THE SBA, RIGHT? SO IF WE HAD 10 APPLES IN THE MBE AND WE PUT THOSE 10 APPLES IN THE SBE, THEN AVAILABILITY, SBE IS NOW 10, RIGHT? AND SO THOSE SAME GROUP, THAT SAME GROUP IS COMPETING IN THAT CATEGORY.
AND WHEN WE LOOK AT WHETHER OTHER ENTITIES ARE GOING INTO THE CATEGORY, SOME OF THE PROTECTIONS THAT WE'VE TALKED ABOUT IS ADDING THE PERSONAL NETWORK, WHICH IS KIND OF KEEPING THAT GROUP SMALL, BUT THAT SIZE STANDARD IS STILL CONSIDERED THE SBA SMALL BUSINESS SIZE STANDARD.
SO WE ARE NOT LOOKING AT THEM AT A DIFFERENT STANDARD OF, UM, OPERATION.
UM, I GUESS, UM, YOU KNOW, NOW THEY'RE, YOU KNOW, SO RIGHT NOW AN SBE IS MAKING 25 MILLION PROFESSIONAL SERVICES, RIGHT? THAT'S THEIR NASCO THAT'S WHAT THEY'RE, THAT'S WHAT THEY'RE SHOWING AS REVENUE.
THAT IS, THAT IS THE MLB, RIGHT? AND LET'S SAY THE MB, THAT'S, YOU'RE IN AAA AND YOU'RE BEING FORCED TO BE PUT INTO MLB WHO HAS, YOU KNOW, YOU KNOW, THEY HAVE A LOT MORE REVENUE, THEY HAVE A LOT MORE BONDING CAPACITY, AND NOW YOU'RE GETTING PUT INTO THAT.
AND ALTHOUGH, YOU KNOW, YOU, YOU'RE SHIFTING OVER IN SB, WILL YOU BE ABLE TO COMPETE WITH THOSE THAT ARE ALREADY EXISTING IN SB THAT HAVE MORE, MORE RESOURCES? SO THE SBE CATEGORY FOR US SHOULD BE COMPARABLE TO THE MBE CATEGORY AS FAR AS SIZE.
NOW WE ARE JUST TALKING ABOUT SIZE STANDARDS AND WHO'S IN THE SIZE STANDARD EXISTING NOW THAT COULD BE GOING ON, RIGHT? SO IN THE, IN THE CATEGORY NOW, THERE CAN BE COMPANIES THAT HAVE, THERE ARE LARGER AND SMALLER, AND THERE'S SOME THAT HAVE MORE THAN OTHERS.
IT'S THE SAME THING WHEN YOU GO INTO THE SBA.
YOU HAVE COMPANIES THAT ARE LARGER AND SMALLER, BUT OUR STANDARD IS THE SBA SMALL BUSINESS SIZE STANDARD.
SO IF WE STICK TO THAT, THEN THOSE GROUPS REMAIN THE, WHAT WE CONSIDER SMALL BUSINESSES.
BUT WE KNOW THAT SMALL BUSINESSES CAN BE A WHOLE GAMUT.
UM, AND THAT'S WHERE WE GET TO THE POINT OF IF WE CAN PULL THE DATA AND DO SOME TARGETS WITH THOSE SMALL BUSINESS AND LOOK AT, IF WE'RE GONNA HAVE, SAY, CONTRACTS THAT ARE $200,000 THAT THOSE SMALL BUSINESSES CAN GO FOR SEPARATELY, AND THEY CAN BE A PRIME ON THAT.
WHY NOT DO SOMETHING LIKE THAT AS A POLICY WITHIN THE PROGRAM INSTEAD OF NOT DOING THE PROGRAM? AND, AND THAT'S WHERE, AND I APPRECIATE THAT, RIGHT, THAT SHIFT OF ACTUALLY BEING VERY TARGETED ABOUT, UH, GROWING SMALL BUSINESS.
BECAUSE, YOU KNOW, AS WE ALL KNOW, UM, YOU KNOW, AND ALTHOUGH IT HASN'T GROWN OFFICIAL LEGS AT THE STATE LEVEL, I THINK IT, THERE HASN'T BEEN A SET IT, UM, UH, A PERSON TO BE ABLE TO JUMP ON.
I THINK IT'S A HOUSE BILL FOR, TO GET RID OF MWB.
AND THEN OF COURSE, AT THE FEDERAL LEVEL, WE'RE SEEING THIS PUSH AS WELL.
UM, I THINK I, I, I FEEL LIKE WE'RE, WE'RE UTILIZING A LOT OF ENERGY TO, TO PUT, TO SAVE SOMETHING THAT MIGHT BE GONE WHEN WE CAN REALLY BE PUTTING A LOT OF MORE EMPHASIS INTO AN SB PROGRAM THAT IS GENDER RACE NEUTRAL, AND JUST CREATING THOSE SPECIFIC PROGRAMS, POLICIES, UH, THAT COULD BE REALLY BENEFICIAL FOR EVERYONE, RIGHT? IT'S OPEN TO EVERYONE, EVERY SMALL BUSINESS.
AND THEN YOU CAN TARGET THOSE 200,000 CONTRACTS AND THEN THE $15 MILLION CONTRACTS.
AND AGAIN, THIS IS, THIS IS ME OVER THE LAST SIX WEEKS HAVING SEVERAL CONVERSATIONS, THINKING ABOUT IT WHEN I'M AT HOME, THINKING ABOUT IT, WHEN I'M ON PHONE CALLS, ON DIFFERENT MEETINGS.
I, I WANNA MAKE SURE THAT AS WE'RE DOING THIS, THIS SHIFT, UM, AND I'LL CLOSE WITH THIS, UH, THAT WHEN WE'RE DOING THIS SHIFT, THAT WE'RE BEING VERY INTENTIONAL ABOUT SMALL BUSINESS ACROSS THE BOARD, UH, WHERE WE'RE NOT BRINGING ANY OTHER DISPARITIES OR CHALLENGES TO OTHER FOLKS.
AND THANK YOU FOR THE PRESENTATION DIRECTOR AND ALL YOUR WORK ON THIS, UH, TOPIC.
I HAD A QUESTION ABOUT AVAILABILITY AND HOW, UM, THE AUTHORS OF THE STUDY MEASURED AVAILABILITY.
CAN YOU WALK ME THROUGH THAT? HOW THEY MEASURED AVAILABILITY? UM, THEY LOOKED AT THE MARKET, UH, FOR AVAILABILITY FOR THIS REGION, UM, USING CENSUS DATA AND DUN BRADSTREET DATA.
UM, THEY PULL THAT AVAILABILITY DOWN AND THEN THEY MEASURED IT AGAINST THE NUMBER OF CERTIFIED FIRMS THAT WE HAVE, UM, IN OUR DIRECTORY.
AND THEN THEY LOOKED AT THE, THE SPIN THAT WE HAD IN THOSE AREAS.
SO, UM, YOU MENTIONED CENSUS AND DUN AND BRADSTREET.
SO ARE WE TALKING US CENSUS DATA?
[01:00:01]
YES.AND, UM, DUN AND BRADSTREET? YES.
UH, DID THEY GO BACK BEHIND ANY OF THAT INFORMATION PROVIDED BY THE CENSUS OR DUN AND BRADSTREET TO SEE IF IT WAS ACCURATE? YES.
WHAT, WHAT DID THEY DO? SO, MY UNDERSTANDING IS THEY, UM, HAD STATISTICIANS THAT WENT THROUGH THE DATA TO MAKE SURE THAT THEY HAD TAKEN OUT OUTLIERS FOR BUSINESS THAT HAD GONE OUT OF BUSINESSES, UM, BUSINESSES THAT WERE NO LONGER IN BUSINESS.
'CAUSE THE CENSUS HAS TAKEN OVER A PERIOD OF TIME.
AND SO THEY WENT TO SCRUB THE DATA THAT WAY, IS MY UNDERSTANDING.
AND HOW DID THE STATISTICIANS KNOW WHICH BUSINESS HAS GONE OUTTA BUSINESS OR NOT? SO SOME OF THE, UH, MY UNDERSTANDING IS THERE WERE PHONE CALLS.
UM, THEY CALLED THOSE BUSINESSES IN THE REGION.
THEY DID AN OUTREACH TO THOSE BUSINESSES IN THE REGION.
UM, WE DO THE SAME THING WHEN SOMEONE COMES IN TO SAY, BE CERTIFIED, WE WILL CHECK THEIR WEBSITE TO SEE IF IT'S ACTUAL WEBSITE TO SEE IF IT'S STILL UP.
UM, AND SO MY UNDERSTANDING IS THOSE ARE THE STEPS THAT THEY TOOK FOR US FOR THE BACKGROUND.
IS, IS THAT RAW DATA AVAILABLE IN THE, IN THE APPENDIXES? UM, I BELIEVE IT IS.
AND IF IT'S NOT, IT'S IN THE, THE RAW DATA.
THE, THE APPENDIX IS COMBINED DATA, AND SO THAT'S AGGREGATED DATA, BUT IT'S PROBABLY IN THE RAW DATA.
AND THEN JUST POINT OF INFORMATION.
UM, MADAM CHAIR, DO YOU KNOW WHEN THIS IS COMING BACK TO FULL COUNSEL? I DO NOT KNOW THE EXACT DATE, BUT WE REFERRED IT BACK FOR 30 DAYS, SO WE COULD PROBABLY COUNT DOWN THE NUMBER OF DAYS.
I THINK THAT'S, THAT'S APRIL 23RD IS THE 30TH DAY OR THE DATE IT'S COMING BACK TO COUNCIL.
WE, WE JUST, YEAH, APRIL 23RD IS A BREAK.
WE'LL GET THE DATE THAT THE MAYOR WANTS TO PUT IT BACK ON.
ANY OTHER QUESTIONS? UH, COLLEAGUES, IF NOT, UM, DIRECTOR HOR, THANK YOU AGAIN, YOU AND YOUR TEAM FOR ALL OF THE OUTREACH AND THE WORK THAT Y'ALL HAVE DONE THERE.
THERE'S BEEN, UM, GOOD, UM, COMMUNITY ENGAGEMENT.
UM, AND WE'LL KEEP TALKING ABOUT IT TO MAKE SURE THAT WE ARE ALLOWING OPPORTUNITY FOR ALL OF OUR SMALL BUSINESSES TO THRIVE A CITY.
I THINK THAT, UM, WE JUST HAVE TO KEEP WORKING ON IT.
WE CAN ALWAYS IMPROVE ON OUR BEST.
WE DO HAVE TWO PUBLIC SPEAKERS.
LAURA MARILLO WITH THE HISPANIC CHAMBER OF COMMERCE.
WELL, FIRST OF ALL, TO THE DIRECTOR, THANK YOU FOR YOUR, UM, COOPERATION ON THIS MATTER, UH, TO MEMBERS OF CITY COUNCIL AND THE ADMINISTRATION.
WE WANNA SAY THAT, UH, THIS HAS CERTAINLY BEEN VERY CHALLENGING.
THERE HAS BEEN A LOT OF DISCUSSION.
SPECIFICALLY, I WAS ASKED TO REPRESENT NOT ONLY THE HISPANIC CHAMBER OF COMMERCE, BUT MANY OF YOU RECEIVED A DOCUMENT IN THE LAST FEW DAYS, WHICH WAS, UM, WHAT WE ARE PROPOSING AS CONSIDERATION AFTER SPEAKING TO MANY STAKEHOLDERS, INCLUDING THE HISPANIC CHAMBER, THE ASIAN CHAMBER, AND TO AMERICAN CHAMBER, THE NATIONAL ASSOCIATION OF MINORITY CONTRACTORS, RHCA, THE SOUTH ASIAN CHAMBER OF COMMERCE, A A BA OF HOUSTON, MANY OTHERS, INCLUDING THE, UH, ARCHITECTS AND ENGINEERS HERE IN HOUSTON AND OTHERS.
AND YOU FIND ALL OF THEIR LOGOS IN OUR PRESENTATION.
HAVING SAID THAT WAS COMMENTING WITH SOME OF MY COLLEAGUES.
IT'S INCREDIBLE THAT WE STAND BEFORE YOU TODAY TO EVEN HAVE THIS CONVERSATION AND THAT IT IS SPECIFICALLY COME UP AS PART OF THE ONGOING FEDERAL CASE.
AND WE UNDERSTAND THAT WE'RE WORKING WITHIN THOSE PARAMETERS.
AND SO AFTER MUCH CONVERSATION AND ENGAGEMENT WITH STAKEHOLDERS, IT HAS BEEN OUR RECOMMENDATION THAT IN ORDER TO ENSURE A PLAYING FIELD FOR ALL BUSINESSES, THAT THE BEST WAY TO MOVE FORWARD IS JUST TO URGE YOU ALL TO CONSIDER THE ESTABLISHMENT OF A SMALL BUSINESS ENTERPRISE PROGRAM THAT WOULD AFFORD THE PARTICIPANTS TO HAVE A PLAYING FIELD.
AGAIN, WITH A VARIETY OF OPPORTUNITIES AS IT RELATES TO SOME OF THE THINGS THAT WERE DISCUSSED HERE.
[01:05:01]
CONTRACT CONTINUITY, THAT IT PROTECT HOUSTON PERFU, UM, PROCUREMENT FROM FUTURE LEGAL CHALLENGES.AND THERE WERE SEVERAL POINTS THAT I WON'T GO INTO BUT ARE IN THE DOCUMENT, BUT SPECIFICALLY THIS ESTABLISHMENT OF THIS COMPREHENSIVE SMALL BUSINESS ENTERPRISE THAT WOULD INCLUDE THE TRANSFER OF THESE SMALL BUSINESSES SEAMLESSLY.
AND THAT THERE ARE THOSE OPPORTUNITIES FOR THOSE WHO WANT TO OPT OUT AND CONTINUE CITY OPERATIONS WAS AMONG THE HIGHEST.
HAVING SAID THAT, WE CONTINUE WITH OUR POINT THAT WE DO NOT ACCEPT THE DISPARITY STUDY AS BEING INCLUSIVE.
SPECIFICALLY IF YOU LOOK AT LATINAS AND ASIAN WOMEN, WE KNOW THAT LATINAS ACROSS THE COUNTRY ARE THE FASTEST GROWING MINORITY GROUP AS IT RELATES TO ENTREPRENEURSHIP, GROWING THREE TIMES MORE THAN ANY OTHER GROUP.
AND SO WE URGE YOU ALL, AND WE THANK YOU FOR SLOWING THIS DOWN SO THAT THERE COULD BE MORE DIALOGUE.
WE KNOW WE NEED AN ADVISORY GROUP THAT CAN PROVIDE INPUT AND FEEDBACK FROM INDIVIDUALS WHO ACTUALLY ARE GOING THROUGH THESE EXPERIENCES.
I HEARD A LOT OF CONVERSATION ABOUT WORKSHOPS AND THINGS OF THAT NATURE.
WE ARE HERE TO PROVIDE SOLUTIONS.
YOUR CHAMBER OF COMMERCE IN HOUSTON IS ON SIX RADIO STATIONS ON KHOU 11.
ON SUNDAYS, WE HAVE AN AUDIENCE REACH OF OVER 3 MILLION, MANY SMALL BUSINESS OWNERS THAT WE COMMUNICATED COULD NOT MAKE IT.
BUT DAVID AND JOSE AND OTHERS, MUSTAFA ARE HERE BECAUSE THIS IS IMPORTANT TO THEM.
AND WE WANT TO BE PART OF THE SOLUTION.
SO AS THIS GROUP AND THE OFFICE OF BUSINESS OPPORTUNITY DECIDE TO ENGAGE, UTILIZE US, CALL US, LET'S GET YOU ON THE RADIO, LET'S GET YOU ON TELEVISION, LET'S WORK TOGETHER.
MAYOR PRO TEM, THANK YOU FOR ALWAYS REACHING OUT AND KEEPING YOUR HISPANIC CHAMBER, COMMERCE AND OTHERS IN THE LOOP OF THIS.
IT IS VERY CONCERNING AND WE JUST WANNA FIND AN EQUITABLE SOLUTION AS WE MOVE FORWARD.
IF YOU HAVE ANY SPECIFIC QUESTIONS, MUFA TAMEZ IS HERE.
HE WAS LEAD WITH MYSELF, UH, BOBBY SINGH AND GREG GRAY AS WE COLLABORATED TO BRING IN THESE OTHER GROUPS.
BUT HE'S BEEN INTEGRAL IN WHAT YOU HAVE BEEN SENT.
SO IF YOU HAVE ANY SPECIFIC QUESTIONS, I KNOW HE'S HERE AND WE'LL BE HAPPY TO ADDRESS THOSE.
SO IS THAT A DOCUMENT THAT YOU SUBMITTED, UM, TO THE OFFICE OF BUSINESS OPPORTUNITY? I THINK IT WAS SUBMITTED TO THE COUNCIL MEMBERS FIRST AS AGAIN, A DRAFT, BUT I'LL ASK MUSTAFA TO CONFIRM.
YEAH, I DON'T, I DON'T HAVE IT.
SO I DON'T KNOW IF WE, IT WAS GONE TO OUR, OUR DISTRICT BOXES OF WHAT COUNCIL? WE'LL, WE'LL RESUBMIT ABSOLUTELY.
WE CAN GET THOSE AND WE'LL ABSOLUTELY GET IT TO O THE DIRECTOR'S SAYING THEY DON'T HAVE IT EITHER, SO WE WANNA MAKE SURE THAT EVERYONE HAS THE DOCUMENT GOT IT.
SO THAT WE CAN REVIEW IT AND ACT ABSOLUTELY.
UM, COLLABORATE, UH, WITH ALL OF THE STAKEHOLDERS.
COUNCILMAN RAMIREZ, ARE YOU STILL IN THE QUEUE? I AM.
THANK YOU, UH, MADAM CHAIR AND THANK YOU FOR BEING HERE, DR.
UM, SO YOU'RE PROPOSING THAT THE CITY MOVE TO AN ALL SBE PROGRAM, IS THAT CORRECT? CORRECT.
AND YOU'RE REPRESENTING NOT ONLY THE HISPANIC CHAMBER OF COMMERCE, BUT WHAT OTHER GROUPS TODAY? THE ASIAN AMERICAN CHAMBER OF COMMERCE, THE INDO AMERICAN CHAMBER, NAMAC, RHCA, SOUTH ASIAN CHAMBER OF COMMERCE, A A BA, THE UH, KOREAN AMERICAN CHAMBER, THE, UH, FILIPINO CHAMBER, THE A SIE RISE, A API, AND THE HOUSTON HISPANIC ARCHITECTS AND ENGINEERS AND OTHERS THAT WE HAVE BEEN COLLABORATING WITH AND HAVE COME TO THE TABLE VERY QUICKLY TO TRY TO FIND A SOLUTION.
ARE ARE THERE ANY OTHER GOVERNMENTAL ENTITIES IN THE AREA THAT HAVE MOVED TO AN ALL SBE PROGRAM THAT YOU KNOW OF? METRO.
METRO HAS METRO'S BEEN DOING IT FOR SOME TIME NOW, SO THIS IS NOT UNIQUE.
THANK YOU, UH, CHAIR, MADAM CHAIR.
AND, UH, THANK YOU FOR COMING BEFORE US.
BUT MY QUESTION WAS, WELL, LET ME FIRST MAKE A STATEMENT I I'M CERTAINLY INTERESTED IN THAT IS FAIRNESS ACROSS THE BOARD.
THAT CHALLENGE IS WHAT WE HAVE TO DO.
AND FOR ONE, I'M, I'M LOOKING FORWARD TO IT.
I REMEMBER THE YEARS, I'M AN OLDER GUY, BEEN AROUND THIS TOWN A LONG TIME.
I REMEMBER THE YEARS WHEN THE NWBE WAS INSTITUTED WHERE THERE WAS VERY LITTLE MINORITY PARTICIPATION, WHETHER IT WAS COMING FROM ANY MINORITY AND CARDS.
BLACK AMERICAS LED THAT AS WELL IN ORDER TO ASSURE THE CITY THAT WE WOULD HAVE FAIR PLAYING FIELD.
AND I'M FOR THAT, I THINK THAT WE'LL GROWING CITY AND THAT'S NECESSARY, BUT I HOPE THAT GOING FORWARD, THAT
[01:10:01]
PLA THAT FAIR PLAYING FIELD WILL GO FORWARD.THE VERY DOCUMENT THAT YOU'RE READING RIGHT THERE, THERE'S ONLY BEEN A FEW COUNCIL MEMBER RECEIVE THAT.
AND I MEAN, I THINK THAT, UH, I'M GLAD THAT THE QUESTION WAS ASKED BECAUSE I'M INTERESTED IN MAKING SURE THAT IT'S FAIRNESS ALL ACROSS AND CERTAINLY NOT JUST WITH A FEW COUNCIL PEOPLE, BUT ALL OF US GONNA HAVE TO VOTE ON IT AND ALL OF US GONNA HAVE TO GIVE OUR INPUT TO IT.
SO I APPRECIATE IT AS QUICK AS WE CAN GET IT.
UM, 'CAUSE I THINK THAT THAT, YOU KNOW, BEING IN THE RIM OF A BIBLE SAYS, SHOWING THE VERY APPEARANCE OF EVIL, AND I'M NOT SAYING IT IS, DON'T GET ME WRONG, BUT I'M JUST SAYING FOR THE BENEFIT SO THAT WE CAN GO FORWARD IN SHOWING FAIRNESS, THEN I THINK IT WOULD BE BENEFICIAL THAT ALL OF US HAVE THAT DOCUMENT, MADAM CHAIR.
AND I'M HOPING THAT THAT WOULD BE PUT OUT AS SOON AS POSSIBLE SO WE COULD GET TO THE, THE AREA YOU'RE TRYING TO GET TO.
AND REST ASSURED THAT MUSTA, I WILL FORWARD THAT AND THAT'S EXACTLY HOW WE FEEL AS IT RELATES TO THE DISPARITY STUDY THAT THERE WERE JUST A FEW PEOPLE INVOLVED IN THAT.
SO WE'RE SAYING THE SAME THING.
SO I'M HAPPY WE'RE ON THE SAME PAGE.
WELL, THE DISPARITY STUDY, MAY I ANSWER? THE DISPARITY STUDY WAS DONE BY THE, UM, YOU KNOW OBO, CORRECT? YEAH, WELL, AN OUTSIDE, WELL, THEY HAD AN OUTSIDE CONSULTANT.
THEY DIDN'T, THEY HAD A CONSULT THROUGH THEIR OFFICE AND THEY USED THE EFFICIENCY STUDY ALSO.
NOW, WE, WE HAD SOME SIMILARITIES, UM, THAT THE EY EFFICIENCY STUDY ALSO SHOWED THAT SOME OF THE SAME COMPANIES ARE RECEIVING, UM, THE, THE BUSINESS FROM THE CITY.
SO THERE WAS SOME, SOME OVERLAP WITH THE RESULTS THAT SAID THE SAME THING.
WELL, THEY RECEIVED THAT VERY SHORTLY, I'M SURE.
AND IF YOU HAVE ADDITIONAL QUESTIONS, I REALLY HOPE THAT YOU ALL REACH OUT TO MUSTAFA, WHO'S BEEN HOSTING A LOT OF THE ABSOLUTELY ONE-ON-ONE CONVERSATIONS, HOWEVER WE CAN ASSIST.
OUR NEXT SPEAKER IS DOMINIC MAZA HERE.
UM, I WAS AT METRO THIS MORNING, SUBJECT TOOK TO 96 TO THE RED LINE.
UH, AND THEN AFTER THE MEETING I TOOK TO, UH, 85 AND WALKED OVER.
SO MULTIPLE MODES TO GET HERE.
UH, ONE THING THAT, UH, JUST HEARING THIS, AND THIS IS, I'VE WRITTEN THIS, THE 65, AND I THINK ALL Y'ALL NEED TO RIDE THE 65, THIS AND THAT, THAT IS THE UNITED NATIONS OF HOUSTON.
AND WE'RE GETTING TO WHY I'M SAYING THAT IS WE'RE GETTING TO A POINT IN THE CITY WHERE EVENTUALLY, AND I HOPE IT HAPPENS, THAT WE WILL HAVE NO ONE ETHNIC GROUP HAVING THE MOST PEOPLE HERE.
TO ME THAT WOULD BE MARTIN LUTHER KING'S GOAL ACHIEVED HERE.
SO WHAT IS THAT GONNA DO WITH, WITH WHAT WE'RE DISCUSSING HERE? WE GOT, UH, HOUSTON COULD DEVELOP IN A WAY THAT, UH, THE FEDERAL LAW, WE ARE SO FAR AHEAD OF WHAT THE FEDERAL LAW WAS DESIGNED FOR.
UH, I THINK THIS IS SOMETHING WE, WE NEED TO LOOK AT, BUT IT'S A, IT IS A, IT'S AN ATTAINABLE GOAL.
SECOND OF ALL, NUMBER ONE, AND, UH, I'M THINK WITH THE STUFF AT, UH, GRB, THE EXPANSION WITH THE ECONOMY AT IT IS, I THINK WE NEED TO HAVE A STOP OR REAL LOOK AT THAT SITUATION.
I KNOW IT'S BY HOTEL TAX AND STUFF LIKE THAT, BUT SUPPOSE THE ECONOMY DROPS AND WE'RE BUILDING ALL THIS STUFF.
THERE'S NO MONEY TO PAY THE BONDS AND STUFF THAT COULD COME BACK TO THE HORSESHOE BECAUSE THE GRB IS ACTUALLY OWNED BY THE CITY OF HOUSTON, WHICH IS OWNED BY ALL OF US.
SO I THINK THAT, AND MAYBE WE NEED TO BRING THAT UP, THAT GRB SAYING, LET'S PUT IT TO THE VOTE OF THE PEOPLE.
WHY NOT? LASTLY, THE 500 BUS SERVICE TO THE AIRPORT.
THERE NEEDS TO BE AN EXPRESS SERVICE TO THE AIRPORT.
UH, IAH TERMINAL C, THAT'S NO PROBLEM.
BUT IT ONLY STOPS ONE PLACE AT THE GRB.
IT'S, IT'S ON, IT'S ACTUALLY DESIGNED NUMBER ONE.
IT'S ALREADY PUT INTO SERVICE BEFORE THE BOARD PUT ITS, UH, HAND PRINT ON IT.
I JUST CAME FROM METRO TODAY, SO I, I, I KNOW WHAT'S, WHAT'S GOING ON.
BUT MY THING IS, THERE ARE PEOPLE ALSO WHO WORK AT THE AIRPORTS THAT NEED MORE SERVICE AT, FROM THAT END OF THE CITY, OTHER THAN THE 1 0 2, UH, IAH EXPRESS, WHICH GOES THROUGH GREENSPOINT.
[01:15:01]
AND I THINK, AND WILLIE, YOU, YOU GO TO METRO MEETINGS, I THINK THIS THING NEEDS TO BE STOPPED.IS IS ACTUALLY LIKE, OH, WE ONLY WANT CONVINCING PEOPLE TO RIDE OUR BUS.
NO, IT'S FOR EVERYBODY TO RIDE THE BUS.
SO I THINK, UH, WILLIE, I CAN WORK WITH YOU AND MAYBE YOU NEED TO GO TO THE METRO BOARD NEXT WEEK, AND THIS THING NEEDS TO STOP TO WHERE THAT BUS CAN COME INTO TOWN SO THAT EVEN THE WORKERS CAN GO.
OR IF I NEED TO GO TO HOBB OR IAHI CAN TAKE A SERVICE.
I DON'T HAVE TO TRANSFER ALL THE WAY TO GRB TO GO BACK.
AND THANK YOU FOR LETTING ME SPEAK.
WE APPRECIATE YOU BEING HERE TODAY.
OUR NEXT PUBLIC SPEAKER IS RAY GUTIERREZ.
HOW ARE Y'ALL DOING TODAY? DOING WELL, THANK YOU, SIR.
UH, YOU KNOW, I GUESS MS. MOORE HAD OTHER ISSUES TO GO TO.
I THINK THE LAST TIME I SPOKE AT THIS HORSESHOE WAS 2006.
WE ARE MAKING DECISIONS BASED UPON INFORMATION THAT MAY NOT BE CORRECT.
UH, MORE IMPORTANTLY, UH, THIS SITUATION WE'RE GONNA, WE'RE GONNA DO TODAY OR IN THE FUTURE, IS GOING TO BE HERE AFTER Y ALL Y'ALL LEAVE.
SO THE VOTE THAT Y'ALL PUT ON THIS IS EXTREMELY CRITICAL.
ALRIGHT? I DON'T THINK WE HAVE A, A, A PLATFORM OR, OR UNDERSTAND HOW SHE'S GONNA ROLL OUT THE SBE, RIGHT? I DON'T THINK SHE'S, UH, TALKED TO GENERAL CONTRACTORS TO SEE HOW THEY'RE GONNA BE ACCEPT THIS PROGRAM EITHER.
SO MWBES ARE GENERALLY 24, 20, 20 5%.
SHE IS GOING TO MOVE A GROUP OUT AND GIVE THEM 5% AS AN SBE OR 10%.
IT IS, IT IS NOT SHE IS GOING TO DO IT.
IT'S, IT'S THE, YEAH, WELL, IT'S THE, THE, THE PLAN, THE PROCESS.
SO WE GOTTA IDENTIFY WHAT THE IMPACT IS GONNA BE FOR THE SMALL BUSINESS, RIGHT? RIGHT.
ALL WE'VE HEARD IS WHAT, WHAT WE THINK IS CORRECT, RIGHT? UH, THAT THE SAME GROUP THAT WAS GOING TO DO THE SAME PLAN AT HARRIS COUNTY, THEY REMOVED THEM FROM CONSIDERATION.
UH, SO MY THINKING IS THAT, THAT THE, THE DATA THAT WE, WE SAW AND WHAT WE, WHAT WE'RE GONNA MAKE A DECISION ON, WE NEED TO BE REALLY LOOKING AT VERY HARD.
I KNOW THE, WE'RE ALL, WELL, SOMEBODY'S WORRIED ABOUT THE, THE JUDGE HIT'S EVENT THAT IT'S GONNA, THE JUDGE THAT IS OVERSEEING THE LAWSUIT FOR THE, UH, LANDSCAPER IN SPRING.
SO THAT'S IMPACTING, THAT'S, THAT'S, THAT'S WHAT THIS IS ABOUT.
WE'RE TRYING TO GET A PLAN PRIOR TO THAT TO BE ABLE TO GET A, A BETTER SEMBLANCE OF HOW OUR PROGRAM'S GONNA WORK, BUT AT THE SAME TIME, MAKE, TAKE CONSIDERATION OF WHAT THE PLAN IS GOING TO BE.
IF WE'RE MOVING TOO FAST, WE NEED TO ASK FOR, FOR TIME TO REALLY THINK ABOUT IT, RIGHT? MM-HMM
IF HE'S NOT GIVING US THE TIME, THEN I AGREE WITH AN ALL SBE PROGRAM.
ALRIGHT? BECAUSE THEN IT'S, IT'S A PLAIN PROGRAM THAT EVERYBODY CAN, CAN WORK IN, RIGHT? IF YOU'RE TAKING GROUPS OUT OF SPECIFIC AREAS, THAT IS THEIR EXPERTISE.
I'M NOT GONNA SAY THAT THERE'S A MILLION HISPANICS IN HOUSTON, BUT THERE'S PROBABLY A MILLION HISPANICS IN HOUSTON.
SO YOU'RE TAKING THOSE GROUPS OUT OF, OUT OF AN AREA AND PUT 'EM INTO SBE, RIGHT? AND SEPARATING THOSE GROUPS.
UH, WHICH MOST OF THOSE GUYS, IF THEY'RE DOING THE MOST, THE MAJORITY OF THE WORK, THAT'S THE WORKFORCE.
UH, THE OTHER THING IS THE WAIVERS THAT WE HAVE, THERE ARE STILL PEOPLE THAT ARE DOING BUSINESS THAT ARE DOING 25, $30 MILLION.
NOW, I DON'T KNOW WHO SHE LOOKED AT OR, OR THE, THE ENTITY LOOKED AT ON THE LARGE HISPANIC BUSINESSES.
UH, THERE'S SOME HISPANIC LARGE PRIMES, UH, SCR DONE BY $200 MILLION IN CIVIL WORK CONCRETE.
UH, THAT'S BIG CITY STUFF, RIGHT? UH, THEY'RE LIKE THE, UH, PITCOCK, UH, WILLIAMS BROTHERS, BUT I DON'T KNOW EXACTLY WHERE SHE GOT ALL THE DATA, RIGHT? I HAVEN'T SEEN IT YET.
I DIDN'T SEE THE, THE PEOPLE THAT, THAT WERE PART OF THE LARGER GROUP OF HISPANICS THAT, THAT ARE DOING THE MAJORITY OF THE WORK THEY, THEY SAY IN HOUSTON.
BUT THEN YOU'RE DEPRIVING ALL THE SMALLER BUSINESSES, UH, TO BE ABLE TO FLOURISH IN THOSE AREAS.
SO THE KEY IS IDENTIFY THESE ISSUES BEFORE WE MOVE FORWARD.
IDENTIFY A PLAN THAT WE CAN LIVE WITH, RIGHT? BECAUSE IF, IF WE'RE GONNA ADJUST THE
[01:20:01]
PERCENTAGES OF FOR SMALL BUSINESS FROM MWB TO SBE, THAT'S GONNA IMPACT EVERYBODY.BUT THANK Y'ALL FOR ALLOWING ME TO SPEAK.
COUNCIL MEMBERS, UH, IT, THERE ARE NO OTHER SPEAKERS IN THE CHAMBER TODAY.
BEFORE WE ADJOURN, I'D LIKE TO REMIND EVERYONE THAT OUR NEXT SCHEDULED ECONOMIC DEVELOPMENT COMMITTEE MEETING IS WEDNESDAY, MAY 21ST AT 2:00 PM AND THIS MAY CHANGE BASED ON OUR BUDGET WORKSHOPS.
I KNOW OUR CHAIR IS HERE AND WE'VE GOT BIG PLANS FOR BUDGET SEASON.
UH, THANK YOU ALL FOR BEING HERE AND FOR YOUR ENGAGEMENT.