Purchasing & Procurement Oversight Committee Agendas & Minutes

PURCHASING & PROCUREMENT OVERSIGHT COMMITTEE (PPOC) IDA Conference Room – 6th Floor – Ruppert Sargent Building Meeting Minutes – October 19, 2011 (CORRECTED) Call to Order – Michael Graves, Chairman, called the meeting to order at 12:30 p.m. Committee Member Attendance: A roll call was taken by Jessica Spencer: Members Present – Michael Graves, Chairman; William Brown, James Crocker, Eddie Deerfield, Eugene Johnson, Dave Pearson, George Wallace and Lauren Yee Members Absent – Martin Cross (with notification), Crystal Kleiber (with notification), Teresa Walker (with notification) Staff and Citizen Attendance: Legal Representation: None Staff Present: Jessica Spencer, Arnelia Hancock, Pete Peterson, Suzy Scott, Victor Hellman, Doris McRae and Teresa Hudgins (recorder) Staff Absent: Karl Daughtrey, Denise Howard Citizens in Attendance – Edwin Boone (Sunshine Carpets) and Joshua Echols (VA Tech student) Approval of Minutes: The minutes of the September 21, 2011 meeting were unanimously approved. Old Business Response to Question from Citizen – Mr. Graves stated the response to Mr. Boone’s question last month was forwarded and the correspondence was received. With Mr. Boone not being present at this time, Mr. Graves requested the committee discuss the New Business items. New Business Compliance Reports – Ms. Spencer presented an overview of the annual small purchases report, PPOC YEAR REPORT DEPT SMALL PURCHASES FY 2011. She defined a “small purchase” as a purchase less than $10,000, up to $9,999.99 per purchase. Each department on the report has various line items indicating how money was appropriated within each department. Ms. Spencer explained she reviewed each department to gain an understanding of their M/WBE utilization. Definitions of the various line items (e.g., CPO Purchase Order, Fund 20 Routing) were discussed. Ms. Spencer explained IT and Finance defined these items indicating how department and sub-department money is allocated. Mr. Deerfield shared that, after reviewing this report, he felt the departments have really “come alive” on this. He pointed out 1 department at 300%, 5 departments at 100%, 4 departments over 50% and 9 departments ranging from 20%-50%. This is a good report indicating that departments are paying attention and M/WBE utilization is increasing. Regarding the departments with little or no activity, Ms. Spencer stated staff will follow-up with them to discuss and recommend how M/WBE utilization can be increased within their department. Mr. Johnson inquired about previous PPOC discussions regarding City Council acknowledging departments for successful M/WBE efforts. He asked if this has been accomplished. Ms. Spencer replied department recognition by Council has not yet happened. Ms. Spencer stated the next step would be for her to develop a summary for the City Manager indicating the departments who have been successful with M/WBE utilization efforts. This can be reviewed by Pete Peterson and/or George Wallace prior to forwarding it to the City Manager. Ms. Spencer reviewed the next compliance report (6 slides) comparing FY10 and FY11 statistics. She reviewed the following reports: City of Hampton & Schools Prime Awards, City of Hampton & Schools Sub-Contracting M/WBE Utilization, and City of Hampton & Schools Contracts under $100,000. All reports indicated increases in M/WBE utilization in FY11 either in dollar amounts or in number of contracts. Discussions were held regarding subcontracting challenges and strategies to encourage M/WBE utilization. Mr. Deerfield requested a FY11 report for band instrument purchase and repairs. Ms. McRae replied this report could be provided. Ms. Spencer will insure Mr. Deerfield receives this report. Program Updates Newsletter - Ms. Hancock reported she has been working on the newsletter. Once completed and approved in-house, she will email a copy to members for their comments and suggestions prior to distribution. Report to City Council – A date needs to be scheduled to present the Minority Business Program’s annual update to City Council. Ms. Spencer anticipates this to be presented to Council in November. Disparity Study Solicitation – Ms. Spencer reported she has started to work on the Disparity Study solicitation. She contacted Portsmouth City Schools regarding their solicitation and focused primarily on their scope of work, description, selection criteria for awards, etc. Ms. Spencer expects to complete a draft this week to send to Mr. Peterson and Mr. Wallace for their review and input. Department of Minority Business Enterprise (DMBE) – Mr. Brown inquired about the new DMBE office in Hampton. Ms. Spencer reported Vincent Powell, Business Development Specialist with the DMBE, has established an office on the 6th floor of the Ruppert Sargent Building on Tuesdays and Thursdays each week from 9:00 a.m. to 4:00 p.m. The DMBE has a formal lease agreement with Hampton for this office for three years. 2 Mr. Powell works with citizens who require assistance completing their SWaM and DBE certifications and also plans to assist Hampton solicit firms for larger contracts. With his engineering background, Ms. Spencer hopes Mr. Powell will also visit local job sites to assist M/WBE subcontractors perform better on the job. Mr. Powell plans to attend a PPOC meeting in the future to meet the members. Partnering for Success Workshop – This workshop was held on September 29 and there were 22 attendees. The presentation was very good and the follow-up evaluations were positive. Staff followed up with some of the attendees who completed a short survey regarding what they wanted to do to complete their next business step. Staff anticipates planning a Part II of this workshop that will help attendees develop joint venture contracts and learn financing options. Procurement Report – Due to recent department workload, Ms. McCrae has been unable to complete this report. She will complete and present the report at November’s meeting. Announcements: There were no further announcements reported. Public Comments: Joshua Echols – Mr. Echols is currently working on his Master’s degree from Virginia Tech and wanted to attend the meeting for information regarding Hampton and what it is doing. Edwin Boone – Mr. Boone stated that unless some weight is put on the department heads and Procurement, it’s just a dog chasing its tail. If the quarterly reports are non-compliant with what the PPOC has established, the department heads need to be let go. They need accountability instead of allowing them to continue saying “We’re trying.” Regulations need to be put on them. Adjournment: There being no further business, the meeting was adjourned at 1:15 p.m. Next Meeting – The next meeting will be held on Wednesday, November 16, 2011 in the IDA Conference Room, 6th floor, Ruppert Sargent Building, 1 Franklin Street, Hampton, VA 23669. Copies forwarded to: Mayor Molly Joseph Ward James A. Peterson, ACM Michael Graves, PPOC Chairman Vice-Mayor George E. Wallace Karl S. Daughtrey Lauren Yee, PPOC Vice-Chairman Councilman Christopher G. Stuart Jessica Spencer Crystal Kleiber Councilman Will Moffett Arnelia Hancock James Crocker Councilwoman Angela Lee Leary Doris McRae Eugene Johnson Councilman Ross A. Kearney, II Denise Howard Teresa Walker Councilman Donnie Tuck Victor Hellman Martin Cross School Board Member, Dave Pearson Suzanna Scott Eddie Deerfield City Manager, Mary Bunting William Brown 3