City of Milwaukee

1
City of Milwaukee Milwaukee Metropolitan
Sewerage District (MMSD)

• Disparity Study
• Informational Meeting
• August 28, 2009

2
Acknowledgements

• African American Chamber of Commerce
• American Indian Chamber of Commerce of Wisconsin
• Hispanic Chamber of Commerce of Wisconsin
• Hmong Wisconsin Chamber of Commerce
• Multicultural Entrepreneurship Institute, Inc.
• Milwaukee Area Workforce Investment Board
• National Association of Minority Contractors
• The Business Council
• Wisconsin Black Chamber of Commerce

3
Agenda

• Update on the Effectiveness Study 2007
• Explanation of the MORE Ordinance
• Share information relative to the Disparity Study
  2009-2010
• Discuss ways in which you can be involved
• Questions/Comments/Concerns

4
Update on the Effectiveness Study 2007
Recommendations
RECOMMENDATION STATUS UPDATE
Accept certifications from five other local certification agencies Ongoing discussion Disparity Study
Establish uniform subcontracting policies Penalties for failure to list subcontractors on bid documents Substitution of subcontractors after award of contract Better EBEP enforcement Ongoing discussions with DPW and City Attorneys office
Waive bond requirements/Revise insurance requirements When practical and doesnt increase the Citys liability
Prompt payment procedures Prompt Payment Provision Implemented
Complaint procedures for subcontractors Created EBE Hotline
Track all subcontract bidders Created Business Sense software EBE Business Directory available via website
Disparity Study Common Council support Mayor support Disparity Study is currently underway
5
Update on the Effectiveness Study 2007
Recommendations
RECOMMENDATION STATUS UPDATE
Post all sole source contracts Ongoing discussion EBEP receives all sole source requests Business Sense
Unbundle large contracts This is done on a case-by-case basis
Website enhancements Procurement Services EBEP
Pay mobilization to EBE Contractors Revolving Loan Program Adjustments as necessary
Publicize EBE outreach efforts Emerging Business Sustainability Conference Disparity Study Information Business Sense EBE Business Directory Ongoing discussion Technical Assistance Workshop Series
6
MORE Ordinance

• Emerging Business Enterprise (EBE)
• The level of EBE participation on City
  Development and Public Works Projects increases
  as follows
• Construction increase from 18 to 25
• Purchase of Services 18 (no change)
• Purchase of Professional Services 18 (no
  change)
• Purchase of Supplies 18 (no change)
• Residence Preference Program (RPP)
• Increases from 25 to 40
• To ensure the participation of City Residents in
  City Development Projects, The developer will be
  required to ensure that 40 of worker hours
  required for construction of the project be
  performed by unemployed or underemployed
  residents. In addition, the RPP residence
  boundary is expanded to include the entire City
  of Milwaukee.

7
MORE Ordinance

• Prevailing Wage
• All contractors will be required to pay
  prevailing wages to all employees working on the
  respective project through any and all
  contractors. Prevailing wage standards are set by
  the Department of Workforce Development.
• Apprenticeship Ratio
• An appropriate apprenticeship ratio will be
  identified for all specific trades on the City
  Development Project. The City of Milwaukee will
  utilize the current Department of Workforce
  Development standards in setting appropriate
  apprenticeship ratios.
• First Source Employment Program
• All contractors will be required to utilize the
  First Source Employment Program (FSEP), which is
  a program operated by the Milwaukee Area
  Workforce Investment Board (MAWIB), through an
  agreement with the City of Milwaukee. FSEP will
  be the first source in recruitment efforts for
  all contractors that will actively hire for both
  new and replacement employment opportunities. The
  goal of FSEP is to ensure that City residents are
  considered first for both new and replacement
  employment opportunities on City Development
  Projects.

8
MORE Ordinance

• Local Business Enterprise (LBE)
• An award standard will be applied in all bids so
  that an otherwise responsive and responsible
  bidder, which is a Local Business Enterprise,
  shall be awarded the contract, provided that its
  bid does not exceed the lowest bid by more than
  5 and/or 25,000.  An additional number of
  points, equal to 5 of the maximum number of
  points used in the evaluation of Request for
  Proposals (RFPs), shall be applied to increase
  the total score attained by a local business
  enterprise.

9

• Disparity Study 2009

10
Disparity Study 2009-2010

• Corporate Experience and Capacity
• Key Personnel
• Business Plan
• Timeline
• Questions and Answers

11
Corporate Experience and Capacity

• D. Wilson Consulting Group, LLC is a ready,
  willing and able certified Wisconsin MBE and DBE
  vendor qualified to conduct the Disparity Study
  for the City of Milwaukee and the Milwaukee
  Metropolitan Sewerage District
• Small Management Consulting Firm specializing in
  conducting Disparity Studies.

12
Corporate Experience and Capacity

• 20 years of Disparity Study experiences
• Over 40 Disparity Studies
• Local and State Government
• City of Phoenix
• City of Tucson
• Pima County
• Washington Suburban Sanitary Commission
• State of Alaska Department of Transportation
  Public Facilities
• Colorado Department of Transportation

13
Corporate Experience and Capacity

• Current and Past Clients
• Alaska Department of Transportation Public
  Facilities (Completed)
• Alaska Railroad Corporation
• Municipality of Anchorage
• City of Tucson and Pima County (Completed)
• Colorado Department of Transportation (Completed)
• Montana Department of Transportation
• Draft Final Report Submitted

14
Corporate Experience and Capacity

• Fields Brown, LLC
• Largest minority owned law firm in the Kansas
  City Metropolitan Area
• A V rated firm
• Two senior partners have practiced together for
  35 years and have over 60 years of combined
  litigation experience
• The firm represents Fortune 100 companies and
  governmental agencies
• The firm specializes in employment law,
  commercial litigation, insurance and workers
  compensation defense, constitutional law and
  public finance.

15
Corporate Experience and Capacity

• Gonzalez Saggio Harlan, LLP
• Local, Minority-Owned Law Firm, second largest
  minority-owned law firm in the Country
• Firm specializes in Equal Opportunities and
  Employment
• Litigation experience in employment, public
  accommodations and credit discrimination

16
Organizational Structure
17
Project Organization

• Deirdre D. Kyle - Project Manager
• Conducted over 40 Disparity Studies since 1989
• Partner-In-Charge of Disparity Study Research for
  MGT of America, Inc. for six years
• Pioneer in Developing Disparity Study Methodology
• Developed one of the first availability/goal
  setting study methodologies accepted by FHWA
  after 49 CFR 26 was authorized
• Litigation Experience
• B.S. Political Science, Florida State University

18
Project Organization

• Charlotte Robinson, Esq. Legal Advisor and
  Policies, Procedures and Program Review
• 23 years of experience in Transportation and
  Environmental Law
• Served as Chief Transportation Counsel for the
  Colorado Department of Transportation
• Special Advisor to the CDOT to oversee its first
  disparity study
• Co-counsel in the defense of the CDOT and State
  of Colorado in the first Adarand Constructors,
  Inc. v. Colorado case
• J.D. University of Denver
• B.A. University of Georgia, Journalism

19
Project Organization

• Jeff Ling, Ph.D. Availability and Statistics
• Lead the availability and statistical analyses in
  over 10 disparity studies
• One of the first in the industry to include
  multivariate regression analysis in disparity
  study research
• Taught Statistics at 3 Universities
• PhD Florida State University, Political Science
• M.S. Florida State University, Political
  Science
• B.A. University of Tampa, Political Science

20
Project Organization

• Todd Osborn - Availability and Statistics
• Lead the availability and statistical analyses in
  over eight disparity studies
• One of the first in the industry to include
  multivariate regression analysis in disparity
  study research
• Taught Statistics at Florida State
• ABD Florida State University, Political Science
• M.A. Bowling Green State University, Political
  Science
• B.A. Kent State University, Political Science
  (magna cum laude)

21
Project Organization

• Debbie Griffin Contract Data Collection and
  Analysis
• 30 Years of Experience in Project Management and
  Organization
• Utilization Data Collection and Analysis for Five
  Disparity Studies
• Management Responsibilities for Purchasing, DBE
  programs and Facilities for a state
  Transportation Authority
• M.A. University of North Florida, Education
• B.S. University of North Florida, Education

22
Project Organization

• Avery Goodrich, Jr., Esq. - Policies and
  Procedures and Anecdotal Analysis,
  Recommendations
• Partner, Gonzalez Saggio Harlan, LLP
• Member, Equal Opportunities and Employment
  Department
• Served as District Director, U.S. Department of
  Labor's Office of Federal Contract Compliance
  Programs (OFCCP) Columbus, Ohio
• Participated in over 100 compliance reviews and
  audits of federal contractors and subcontractors
  required to prepare and implement affirmative
  action programs   
• Provided technical assistance on policies,
  regulations, and procedures of the OFCCP to
  federal contractors, subcontractors, construction
  firms, local units of government and constituency
  groups within the Midwest Region

23
Project Organization

• Avery Goodrich, Jr., Esq. - Policies and
  Procedures and Anecdotal Analysis,
  Recommendations  
• - Served as Executive Director, City of Chicago,
  Department of Planning and Development,
  Empowerment Zone Program 
• Developed and implemented strategies to
  administer Chicago's Empowerment Zone/Enterprise
  Communities redevelopment program.
•  Served as Associate, Target Group, Inc.
• Assisted developers, corporations and general
  contractors with the design and implementation of
  their affirmative action and diversity plans   
• Served as Research Specialist, Charne, Glassner
  and Taitelman
• Prepared evidentiary reports, interviewed
  witnesses, and research municipal zoning
  requirements and histories for the City of
  Milwaukee's desegregation lawsuit. 
• J.D. University of Toledo, College of Law
• B.A. Howard University, Political Science

24
Project Organization

• Marvin Pratt Anecdotal Data Collection and
  Public Outreach
• Former Mayor of the City of Milwaukee
• Re-established Town Hall Meetings
• Drivers License Reinstatement Program
• Former Common Council President
• Authored Residency Preference Program
• Building Inspection Internship Program
• Disadvantaged Business Program
• Former member of the Economic Development
  Committee
• B.A. Marquette University, Political Science

25
Project Organization

• Marvin Pratt Anecdotal Data Collection and
  Public Outreach
• Former Mayor of the City of Milwaukee
• Re-established Town Hall Meetings
• Drivers License Reinstatement Program
• Former Common Council President
• Authored Residency Preference Program
• Building Inspection Internship Program
• Disadvantaged Business Program
• Former member of the Economic Development
  Committee
• B.A. Marquette University, Political Science

26
Business Plan

• Legal Review
• Prepare a detailed legal review of relevant
  federal and state (specifically the 7th Circuit)
  court cases.
• Our legal team will insure the methodology used
  to conduct this study complies with the federal
  standards
• Our legal team will be involved in drafting the
  recommendations for this study

27
Business Plan

• Policies, Procedures and Program Review
• Review written materials addressing the City and
  MMSD Policies and Procedures and other written
  materials including previous disparity studies
• Interview key personnel to include MWBE officers,
  procurement staff and government officials
• Interview representatives of Trade and
  Professional Associations and,
• Other key stakeholders

28
Business Plan

• Data Collection
• Conduct a Data Assessment to identify potential
  electronic and paper data sources
• MMSDs Financial System
• MMSDs Excel file of Subcontractors
• City FMIS System
• Lawson Software
• PeopleSoft Software
• City Contract and/or Project Files

29
Business Plan

• Develop a data collection methodology for review
  and approval
• Business Categories for 2005 2008 include
• City
• Construction Services
• Professional Services including AE
• Goods and Services

30
Business Plan

• Develop a data collection methodology for review
  and approval (contd.)
• Draw 100 percent of construction and AE
  contracts
• Work with the University of Wisconsin Milwaukee
  and Marquette University Equal Opportunity
  Program (EOP) to identify and hire students to
  conduct data collection
• Supervise and train students for subcontract data
  collection
• Detail oriented individuals
• Schedule students in 4 8 hour blocks
• Conduct quality control and data verification

31
Business Plan

• Market Area
• For the City and MMSD
• By each Business Category
• Location of Prime Contractors
• Number of Contracts Awarded and by Percentage
• Number of Firms Awarded Contracts and by
  Percentage
• Relevant Market Area
• Determined by where 75 percent of all dollars
  awarded
• Milwaukee MSA
• Counties outside Milwaukee MSA

32
Business Plan
AVAILABILITY CRITERIA FACTORS
Ready Resource Readiness Managerial Readiness Financial Readiness
Willing Market Value of Work Estimated Return Request To Enter The Market Competition Strategy Commitment of Ownership
Able Resource Allocation Alliances or Partnerships Agency Relationships
33
Business Plan

• Availability
• Create database of relevant vendor, bidder and
  subcontractor data
• Collect listings from other public jurisdictions
  and organizations
• Compare overlap of the public and private
  databases to eliminate any redundant entries
• Summary of Availability Analyses for each Group
  Identified in the Utilization Analysis

34
Business Plan

• Conduct Disparity Analysis
• Develop Report Layouts
• Calculate Disparity Indices Based on Availability
  and Utilization Data for Each Business Category
  and Sub-category
• Subject Disparity Analysis to Statistical Tests
  to Determine Significance

35
Business Plan

• Survey Results will be used for the Regression
  Analysis as well as Availability
• Conduct Regression Analysis
• Review data collected from vendor survey
• Select econometric models necessary for
  determining the casual factors related to
  utilization
• Summarize the findings and like possible
  predictors to programs, initiatives and other
  factors

36
Business Plan

• Private and Public Sector Analysis
• Secondary data collection
• Primary data collection of firm characteristics
  in relevant market area
• Project potential market characteristics in
  private sector based on analysis of survey data

37
Business Plan

• Anecdotal Analysis
• Conduct 60 Individual Interviews
• SMWBE and Non-SMWBE Firms
• Business Categories
• Assist City and MMSD with Public Hearings
• Facilitate Two Public Hearings
• City MMSD provide facilities, advertising and
  court reporters

38
Timeline

• Process will take approximately 12 months to
  Complete Study
• Several of the components overlap and are needed
  to make the study more comprehensive

39
Conclusion

• Extensive Experience in Disparity Study Research
• Positive Litigation Experience
• Experienced Sub consultants with Local Presence
• Attorney Involvement in Each Major Area of the
  Study
• Our Team is 100 percent Minority Owned

40
Disparity Study 2009-2010

• Questions?
• Comments?
• Concerns?