Public Contracting and Supplier Diversity City of Grand Rapids Presented by: City of Grand Rapids and the Monday Group

Purpose of Today’s Meeting Update: Changes; Issues; Progress on EBO Programs in Grand Rapids Role of the Monday Group assisting the City of Grand Rapids and as a model resource for other public entities in Michigan.

Pre-Proposal 2 Program City moved away from quotas and mandates Incentives programs developed for contractors who contributed to the City’s Sustainability Plan (Strategic Plan).

Grand Rapids – Sustainability Plan Social Equity Prosperous Economic Enrich Lives Clean Environment Incentives in All Major Areas of City’s Sustainability Plan

Acceptance Diversity and Inclusion Programs Private Public Not-for-Profit “EQUAL BUSINESS OPPORTUNITY (EBO) PROGRAMS CONSTRUCTION, GOODS and PROFESSIONAL SERVICES”

Proposal 2 Impact Diversity and Inclusion Programs Continued Private Public Not-for-Profit

Post-Proposal 2 Impact Not for distribution – unpublished EBO Special Report Update – October 2011

What’s Making a Difference? Micro-Local Business Enterprise Designation & “THE MONDAY GROUP”

MICRO-LOCAL BUSINESS ENTERPRISE DISADVANTAGED Business owners with limited capital resources are at a disadvantage when doing business ECONOMIC SIZE Smaller than small businesses are economically challenged when doing business LOCATION Limited geographical area influence All conditions must be met to be qualified as a Micro-Local Business Enterprise New Approach

City of Grand Rapids Micro-Local Business Enterprise (Micro-LBE) New class of small businesses meeting special requirements. Location - Kent County, over 6 months Size - 25% SBA Size Standard, 2 or more years Ownership - owner’s Net Worth $250,000 or less RWA - Registered online with CCR & GR Purchasing Eligible businesses include all groups: ¤Minority Business Enterprises, ¤Women Business Enterprises, ¤Veteran Owned Business, ¤Non-Minority/Women Business Enterprises

Micro-LBE Impact Micro-LBE 22.8%, 2009; 29.2%, 2010 Up Hill but Up!

The Monday Group Connection Includes invested parties to build consensus. Helped develop the Micro- LBE program. Sounding board for proposed policies. Resource for others building diversity and inclusion programs in construction.

Who is Monday Group? Public and Private Organizations Dykema Excavators; K&R, Inc. Mobile Air; Taylor Electric

Purpose of Monday Group Connects Owners with large and small contractors who have demonstrated diversity and inclusion. Develops collaborative environment with area financial institutions. Education of members and community.

Accomplishments Monday Group members have worked collaboratively for fair and inclusive supplier and contractor diversity programs. ◦ Resulted in initiatives and outcomes that have benefited the local contracting community Monday Group has worked out many litigation issues and shared their potential value with private, not-for-profit, and public sector entities.

Benefits United Front. Community Support for City Policies. Collaborative efforts. ◦ Expand programs to other entities. ◦ Modify and improve the Micro- LBE program. ◦ Banking.

Private Partners Spectrum Health > 15%. VanAndel Institute 19% Grand Rapids Community Foundation >20%. KROC Center/Salvation Army 17% Eastern Floral 20%

What do these Plans all have in Common? CEO mandate with accountability and measurement of success or failure. Minority participation is a requirement, not a suggestion. Smaller bid packages to accommodate a larger pool of companies. Community and business outreach. Contractors inclusion plan is submitted with their bid. (MDOT)

A Plan for Everyone Cities/counties/municipalities Public school districts Public universities and colleges Not-for-Profit Organizations For-Profit Businesses (Private or Publicly- owned) YOU CAN ADOPT NEW OR PROVEN CONCEPTS FOR YOUR ORGANIZATION

Review Successful diversity programs are: ◦ Driven by the owner. ◦ Accomplished by CMs selected by the owner There are working models in West Michigan that can be adapted to your organization. Plan now for future projects.

Next Steps We want you to utilize the Monday Group model. We want to partner with you in developing contractor and supplier diversity. Let us Help you and Learn from you.

Questions/Comments

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