The pressure starts -- is created because you've got the Gap and Brookstone and Johnson and Murphy and, you know, whatever, if you don't have a partner, what happens?
Well, then they have to... They have to make a partnership. Or what we've really tried to do is find female and minority prime vendors. We've had a number of successes that way. Or in some cases you can have a national brand like McDonald's or Burger 206 Whole - Bills 040255, et al - 5/18/04 King where you can get a minority franchisee. But to answer your initial question, if your a... Let's say you're a Chickie and Pete's and you want to get into the Airport, all other things being equal, I think that you would need to have either a minority franchisee or female franchisee or you'd have to have a partnership that reaches those percentages that we've been talking about, in order to make that entry into the Airport.
Right. And if you don't have that person on your own, I mean, how do you get one? Or I mean, how do you meet the criteria?
Well, I don't know if MBEC plays a role in trying to network people. I mean, one of the things that can happen when we have a -- one of our workshops, would be that people do have the opportunity to make themselves known to the Airport, to Marketplace, and to MBEC, that they're interested in getting into the 207 Whole - Bills 040255, et al - 5/18/04 Airport business. But they... they, the female and minority vendors, are looking to partner with somebody because they don't potentially have the wherewithal to do it themselves. And I think there is networking like that that's promoted by MBEC, but we don't play a direct role in that.
I understand. Could the person find themselves in a situation where, unless they make a partnership or have an MBE or DBE component to their proposal, that they just would not get the concession?
I guess, actually, the answer would depend on what the concession was and what the projected sales from that location would generate. If it was, for example, a bar which would generate a significant amount of revenue, and Marketplace was already either teetering or below where they needed to be 208 Whole - Bills 040255, et al - 5/18/04 with respect to meeting their obligations under the contract, they may pass over that opportunity at that time to look to fulfill their obligations with DBE participation.
And again, you're laying out to us that these are the goals.
Yes. And Councilman, I just wanted to clarify. When Jim originally gave you those goals, they were for food and beverage.
Specifically. There are three categories. Food and beverage location goal is 40 percent. Our actual achievement to date has been 49 percent. News gift is the second category. The goal there is 30 percent. The actual achievement is 30 percent.
All right. Hold 209 Whole - Bills 040255, et al - 5/18/04 on for one second. Food and beverage is...
News and gift goal of 30 percent. Actual achievement 30 percent. And then specialty retail, the goal was 12 percent. Actual achievement is 27 percent. 13
That's for locations. 15 There's another set of goals for 16 percentage of sales. In the same three 17 categories: For food the goal is 45 18 percent. The actual achievement has been 19 43 percent. 20 For news and gift, the goal was 30 21 percent. And the actual achievement has 22 been 30 percent. 23 And for specialty retail, the goal 24 was 25 percent; actual achievement, 22 25 percent. 210 Whole - Bills 040255, et al - 5/18/04
Okay. Well, you guys are running a tight ship over there. I think that, for the moment, takes care of those questions. You got down the information requests, and you'll get them to the Chair?
Yes. If you can provide any information with regard to type of business. I mean, is it bar; shoe store; food stand; pens; you know, pretzels; whatever the case may be, as well as the principal owner or principal partners, and kind of who's who in the -- who's who in the mix. Do you have -- Can you also lay out for us on a map with a key code the 211 Whole - Bills 040255, et al - 5/18/04 location of all the entities, as well as their last years?
Let them out on a map and give you an inventory of the sales?
Thank you. Are there any other questions from members of the Committee? (No response.)
Thank you, Madam 212 Whole - Bills 040255, et al - 5/18/04 President.
It was my understanding that Council members wanted Law, MBEC and Procurement to come up at the same time. Are they here?
Good afternoon. Thank you so much for your patience.
I believe there were a couple Council members that had asked that you return. I think they had some questions. I don't see anybody admitting to that. Where are the Council members? Councilman Nutter, was it you that wanted the callback?
Thank you. First, Mr. Gamble, I needed to ask you about implementation of two provisions, one of the Philadelphia Code, and one from the Home Rule Charter. First, there was a bill that was passed a couple years ago that sought to 213 Whole - Bills 040255, et al - 5/18/04 have a goal of 40 percent of the residents, 40 percent low income individuals employed on projects conducted by the City of Philadelphia. I'd like to get an update on that and how you've been overseeing that particular provision of the Philadelphia Code.
You were referring to dash... Let's see. 17-1000. We 15 started implementing that -- 16
-- in January of this year? I'm sorry. July of last year. We implemented the beginning of that. And it is a self-certification type process that we put on all of our public works contracts, that --
I'm sorry, Commissioner. Say that again. You started... 214 Whole - Bills 040255, et al - 5/18/04
Started July of last year, where we put on all our public works contracts.
And I found out about it last year, as you recall, sir, that we had -- it was -- You had brought it to our attention about this bill that we were not aware of, and this is why we started back in the --
Well, I don't know. We were never informed. So, based on the information we received from you, we 215 Whole - Bills 040255, et al - 5/18/04 implemented the project at that time.
Okay. All right. Tell me about it. What's happened since that time?
Well, we put on all our public works bids that they require that they have 40 percent using the HUD determination of low and moderate income.
How many contracts would that have been since you started utilizing this in July of '03?
Yes. They submitted -- 216 Whole - Bills 040255, et al - 5/18/04 They submitted their... all the requirements that we asked them to submit. And it was a self-certifying situation, where we couldn't actually go out and -- and -- and -- and certify that the individuals that work for us. They had to submit to us their information, and then we in turn will put it into the file.
And after you put it into the file, what did you do then?
So how do we know whether people are actually complying?
Because we're asking them to do a self-certifying, and if information they have given us is not accurate, then they will be -- they will be disbarred.
But how would you ever know whether the information is 217 Whole - Bills 040255, et al - 5/18/04 accurate if you don't check it?
We -- We do not have the resources to go out and check every contract that we have regarding this. So what we have done, there's a program --
Well, don't you think it might be helpful just to -- I don't know -- randomly sample a few of them? And... I mean, that will kind of --
We have not done spot checks, sir. But we are going to do because we have found out that in order to make sure that the contractors are actually doing what they're supposed to do, we have to go out and do it such. But as of today, we have not done so, no. 18
Well, let me ask this question: I mean, would it be... I appreciate the offer. Would it be helpful to amend this, to require it?
This is a provision of the Philadelphia Code, section 218 Whole - Bills 040255, et al - 5/18/04 17-1000, as you indicated.
I mean, we could amend this and require checking or at least some sampling of a certain percentage of contracts. I mean, Commissioner, let me assure you the purpose was not just to get people to fill out a sheet of paper, on the theory that they could take a chance, say that it was correct, send it to you, you put it in the file, and if no one ever checked, they'd just figure, you know, today's my lucky day because I know no one in the government is ever going to check to see what's going on, so how will I ever get penalized? I mean, you know that that could not be the goal here.
Right. I understand that. And as I indicated earlier, sir, is that, no, we have not -- we have not done it. But it is the -- It is our... It will be done, though.
You're 219 Whole - Bills 040255, et al - 5/18/04 committing to that now?
What we're going to do is that we will -- we will basically sample -- random sampling of the contracts.
Well, so far what we -- As I said, we're done 56. So I would say maybe a third of those 56 will be random sampled.
Okay. When would you be able to report to us your findings, and when do you expect to start the random sampling?
You said you're going to do a third of them? 220 Whole - Bills 040255, et al - 5/18/04
All right. So you're going to start July 1 checking on contracts that --
Right. And then what we will do is that we will randomly sample... We'll do a third of those 56, and then we'll do a third yearly of all the -- of all the contracts.
Okay. Do you have the personnel to be able to do this or are you going to utilize another agency?
Got to utilize the staff that I have. 221 Whole - Bills 040255, et al - 5/18/04
Very good. I appreciate that. Okay. So, when do you think you'll be able to report something to the Council?
Yes. October -- By the -- By the -- By the October -- The end of October, October 30th.
I figured you'd want as much time in October as possible.
What we have done, we have submitted the resolution to the Department of Records, so that we can request, if they're in a meeting -- in the -- in the meetings that need to be held on that ordinance. We are looking at beginning July 1, where we will actually begin the process. Vendors --
I'm sorry. Say what you said earlier. You're submitting something to the Department of Records to figure out whether you need to have any 223 Whole - Bills 040255, et al - 5/18/04 meetings?
Right. No. We have to do a resolution. And the resolution 5 goes -- Regulations. Thank you. And the regulation goes to -- to -- to the board of --
Okay. And then they will -- If no one -- If there is not a hearing that's been scheduled, then as of June the 6th we will actually -- actually begin with the actual process.
But we're going to -- But we're actually going to start the actual program July 1st...
...where vendors will 224 Whole - Bills 040255, et al - 5/18/04 begin to sign up so that we can certify beginning in the next several weeks.
What's been going on in the time between when the voters approved it last November and now? What have you been doing?
What we have -- What we've done is gone through a process of trying -- of trying to come up with automated process, in order to certify vendors. We didn't want this to be a paper process, but one of automation. So we're in the process of putting that together. We have a -- We have a system that will -- that will go live in the next couple weeks.
Well, what we're -- what we're doing is, we're putting on our web site, as well as putting it in our bids that would -- that's going out, on all our bids, to indicate that there's a local preference; and in order to be get that 225 Whole - Bills 040255, et al - 5/18/04 preference you must be certified; and you can be certified by going online and filling out -- filling out an application.
Okay. Will you do any advertising either in major or local newspapers? Will you send anything to the various businesses? I mean, for instance, we must have a list of all of the business privilege licensed --
Okay. All right. And you expect... All right. So a five percent bid preference. You're going to do regulations over to the Records Department so --
Yeah. They have 226 Whole - Bills 040255, et al - 5/18/04 regulations. That's going to be advertised.
June 6th is basically where they were saying that the regulation will actually take effect on June 6th, if there is no -- if there is no hearing at that time.
...request. Well, when did you send the regulation to Records?
We sent the regulations 227 Whole - Bills 040255, et al - 5/18/04 over May 3rd.
All right. And if no hearing or other problem, you expect the program to take effect July 1.
Okay. All right. The other question I have -- And this now goes to MBEC, although, Madam Chair? Is there any other member that has their light on?
Okay. All right. I'd like to get a better understanding -- And you'll probably go through this a few times before the end of this fiscal year. I'd like to get a little better understanding of the relationship 228 Whole - Bills 040255, et al - 5/18/04 between Procurement and the Minority Business Enterprise Council as contracts and bids come in. Tell me a little bit about the interaction between the two organizations.
Okay. We interact with -- with MBEC on a -- on a -- on a day-to-day basis -- on a daily basis. All of the procurement contracts of bids that we put out, before we put them out, we send them to MBEC to get a determination, as far as the ranges are concerned. So we don't send anything out unless MBEC has gived us -- either said yes to a range or no to a range. But they have -- But they see each and every one that we send out.
Well, we will still -- we put that we have -- that we have a -- a minority business program, and then we would ask if they will -- if we can get 229 Whole - Bills 040255, et al - 5/18/04 participation. So we -- we do put that in. And we do track to see if -- We track those bids that do not have -- have ranges on them, but actually come in with ranges, where they will -- will basically go out and -- and -- and get participation.
What happens on the professional services side? Does Procurement --
That's the way the City is set up. We're only responsible for supply, services, equipment and public works contracts. Professional services contracts are up to the... each individual department, and they do not come through Procurement.
Is that a regulation? Is there an ordinance? Is 230 Whole - Bills 040255, et al - 5/18/04 there something within the Home Rule Charter that determines that?
The charter Basically says -- It -- It -- It says that Procurement will handle supply, service, equipment, and public works.
And have you ever been called for input or information regarding a professional services contract?
Please identify yourself for the record for the stenographer.
My name is Michael Williams, Deputy Finance Director, Director of Minority Business Enterprise Council.