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Communty Benefits Plan: Local worker & SBE parntership proposal

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Trim Tab Systems and Neighborhood Leadership Institute proposal for Cuyahoga County, Ohio's first community benefits plan.

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Communty Benefits Plan: Local worker & SBE parntership proposal

  1. 1. Don Slocum, Neighborhood Leadership Institute Johnathan M. Holifield, Trim Tab Advisors Mark A. McClain, Neighborhood Leadership Institute Neil A. Dick, Dick Group Consultants August 11, 2010 Cuyahoga County-centric model to assess ongoing business and employment opportunities throughout the three phases of the project Proposal to Create, Fund, Implement and Monitor Local SBE Partnership & SBE Solutions Program Local Worker Partnership & Priority Source Hiring Program
  2. 2. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 2 Table of Contents Subject Page EXECUTIVE SUMMARY 3 INTRODUCTION 4 COMMUNITY BENEFITS OVERVIEW 5 TOTAL PUBLIC INVESTMENT AND PROJECTED ECONOMIC IMPACTS 11 A CALL TO UNPRECEDETED COLLABORATIVE ACTION 12 CONSTRUCTION ADMINISTRATION AGREEMENT 13 CREATE, FUND, IMPLEMENT AND MONITOR LOCAL SBE PARTNERSHIP 14 SBE SOLUTIONS PROGRAM 17 SBE SOLUTIONS: 21PROGRAM STRATEGIES, TACTICS & OVERSIGHT 18 PROPOSAL GUIDELINES & DELIVERABLES 25 PROPOSAL FORMAT 30 LOCAL SBE PARTNERSHIP & SBE SOLUTIONS PROGRAM MODEL 31 CREATE, FUND, IMPLEMENT AND MONITOR LOCAL WORKER PARTNERSHIP 32 PRIORITY SOURCE HIRING PROGRAM 36 PROPOSAL GUIDELINES 38 PROGRAM DELIVERABLES 40 PROPOSAL FORMAT 41 LOCAL WORKER PARTNERSHIP & PRIORITY SOURCE HIRING PROGRAM MODEL 42 ADDENDUM 43 ENDNOTES 45
  3. 3. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 3 EXECUTIVE SUMMARY These are tough economic times. Individuals, families, businesses, and governments must ensure that every investment dollar achieves the best possible outcome. Recognizing the unique opportunities presented by the Medical Mart Convention Center project, Cuyahoga County has, for the first time, undertaken serious efforts to develop a new and comprehensive approach to ensuring the best possible community outcomes. The Neighborhood Leadership Institute’s (NLI) Proposal to Create, Fund, Implement, and Monitor Local SBE Partnership & SBE Solutions and Local Worker Partnership & Priority Source Hiring Program identifies traditional concepts and pioneers new ideas to support Cuyahoga County’s efforts. Cuyahoga County has long struggled to ensure that residents and businesses enjoy equitable and widespread benefits from large-scale and publicly financed/subs idized development projects. With $900 million of public investment in the construction and operation of the Medical Mart Convention Center, which will further leverage one of our community’s greatest global economic assets – world-class healthcare – we have new opportunities to connect community aspirations to real opportunities. The recommendations, strategies, and tactics in this proposal – which is intended to be a catalytic, thought- provoking and actionable document – are neither exhaustive nor exclusive. They are designed to be the foundation of a new collaborative structure that provides ongoing community benefits leadership. NLI deems this an important first step to fulfilling the long- standing goal of ensuring taxpayers equitably participate in and benefit from the development projects they fund. Over the past decade, community benefits planning and implementation has gained significant momentum throughout America, as those benefits effectively fulfill the goals of enlarging community prosperity through: ▪ Job Development: getting residents into well- paying jobs. ▪ Small Business Development: ensuring fair and accessible contracting opportunities. Building on past successes in other communities, NLI’s core community benefits elements include: ▪ Equitable and inclusive contracting and financing for small businesses. ▪ Workforce development, including employment, training, and education. ▪ Smart Collaboration program leadership. NLI believes that, properly incorporated, these components can create a Cuyahoga County-centric model for community benefits that can be replicated throughout our area. Creating an environment that improves the lives of residents is an important leadership goal for Cuyahoga County. NLI notes that realizing meaningful community benefits usually involves the local government agencies as leading actors and implementers. Ongoing support and encouragement from Cuyahoga County, as the principal convener in this new community benefits effort, will be vitally important in attaining the full promise of the Medical Mart Convention Center. Ultimately, this effort is not about making a legally enforceable contract. It’s about employing the dynamic force of public policy to help the people and businesses of Cuyahoga County – the guarantors and financiers of the Medical Mart Convention Center – achieve fair and equitable benefits from the project they are obligated to fully underwrite. . . . $900 million public investment . . .
  4. 4. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 4 INTRODUCTION Medical Mart Convention Center In 2007, the Board of County Commissioners approved a 0.25% increase in the county’s sales tax, which currently generates approximately $39 million annually1 . These and other funds – a $9002 million public investment over 20 years – will be used to construct and operate a new exhibition hall and Medical Mart Convention Center (Medical Mart Project). The project is being jointly led by the County of Cuyahoga, Ohio, MMPI Cleveland Development LLC, and Merchandise Mart Properties Inc. (collectively, the Development Team). More Than a “Conventional” Convention Center Unlike traditional convention centers with regular open- ended missions to attract meetings and conventions, the Medical Mart Project considerably strengthens standard approaches by linking to perhaps the most promising global economic sector in Cuyahoga County – world class healthcare. This approach not only sets the Medical Mart Project apart from “conventional” convention centers, it also provides Cuyahoga County something different in kind and degree from other large- scale and publicly financed/subsidized projects such as sports stadiums that have a more targeted economic impact. Linking to and further leveraging our advantages in healthcare and medical innovation means the Medical Mart Project is a global industry play that creates terrific economic multiplier opportunities. The need to connect the people and business of Cuyahoga County to this global opportunity heightens the relevance and importance of community benefits planning and implementation. Neighborhood Leadership Institute On June 1, 2010, NLI was retained by Cuyahoga County to provide consulting services for the development of a new approach to ensuring community benefits – a comprehensive community benefits program (CBP) – in connection with the Medical Mart Project. A key component of NLI’s engagement is to create a CBP model to assess ongoing business and employment opportunities connected to the Medical Mart Project. NLI is a not-for-profit community empowerment organization that develops grassroots leadership that will, in turn, work to rebuild and support community bonds and improve the quality of life for residents throughout Greater Cleveland. Essential to NLI’s mission is connecting the aspirations of Greater Cleveland communities to existing and emerging economic opportunities. NLI Goal Statement To fulfill its charge, NLI recommends bringing together communities, education institutions, not- for-profit organizations, government, and businesses to foster meaningful collaboration and achieve enduring economic inclusion and workforce development. The initial step is to provide a “community merit hearing” for the ideas and concepts contained herein. After careful consideration and deliberation, accelerated implementation of the best ideas should be undertaken to ensure equitable benefits from the Medical Mart Project to the people and businesses of Cuyahoga County. This CBP model – the first of its kind in Cleveland and Cuyahoga County – is intended to lay the groundwork for community engagement to achieve equitable and widespread community benefits from large-scale and publicly financed/subsidized development projects. CBP elements include inclusive contracting and financing, workforce opportunities, training, education, and collaboration. By combining each of these components, we can create, fund, implement, and monitor a truly effective CBP. In addressing the initial needs and opportunities of the Medical Mart Project, however, NLI’s best hope is that this CBP serves as a model for large-scale, publicly financed/subsidized development projects throughout our area. . . . Medical Mart Project is a global industry play . . . This CBP model – the first of its kind in Cleveland and Cuyahoga County . . .
  5. 5. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 5 COMMUNITY BENEFITS OVERVIEW Community Benefits Agreements and Community Benefits Programs Note there are several key differences between the more commonly known community benefits agreement (CBA) and a CBP. Although both share the goal of securing fair and far-reaching community benefits from large-scale and publicly financed/subsidized development projects, their chief differences include: ▪ CBAs are legally enforceable contracts, generally signed by community groups and a developer. ▪ CBPs are policies adopted by a local government, with support from the developer and community organizations, and have the force of public policy. ▪ CBA processes occur prior to the signing of the development agreement between the governmental entity and the developer. ▪ CBP processes may occur after the development agreement has been signed. NLI has been retained by Cuyahoga County to provide consulting services and create a new approach to community benefits – a CBP for the Medical Mart Project, not a CBA. There are many advantages to a timely CBA process. However, NLI believes that through creativity, flexibility, and meaningful financial investment, several components of the CBP for the Medical Mart Project can yield significant community benefits to the people and businesses of Cuyahoga County. Why Community Benefits? Throughout the U.S., community benefits planning and implementation have proven to be effective tools for enlarging community prosperity by ensuring equitable and widespread benefits from large-scale and publicly financed/subsidized development projects. The following excerpt from national thought leaders makes the most compelling case for community benefits3 : Local government has played a central role in the push for urban economic development. As the federal government has slashed its contribution to urban budgets, and devolution has shifted programs like workforce development and housing construction away from federal and state governments, responsibility for major decision making on urban development is landing in the laps of elected officials and staff at the city and county level. Unfortunately, the public-private partnerships at the local level are being driven for the most part by the private sector. Although most city and county governments have “planning components,” these departments expend most of their resources on the processing of permits and other land use applications. Local governments, eager to expand their tax bases and presented with little meaningful information about the costs and benefits of their choices, often see their role as being limited to facilitating the visions and plans of developers – rather than facilitating a public vision and plan developed with the input of a wide range of stakeholders. They often rely on the job creation projections of the developer, but after construction they have little information about actual jobs created. Standards for assessing the costs and benefits of development for communities, if such standards exist, are generally applied on an inconsistent and piecemeal basis. Readers are encouraged to review the chart detailing distinctions and similarities between CBAs and CBPs in the Addendum, pp. 43-44.
  6. 6. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 6 Therefore, while economic development projects are often heavily subsidized by taxpayer dollars, they produce decidedly mixed results for city [and county] dwellers. While many of these projects bring sorely needed jobs and tax revenues back to areas that have been disinvested, there is usually no guarantee that the “ripple effects” of the projects will benefit current residents. Many new developments cause inner-city gentrification, pushing out low-income residents as housing prices raise. Other projects create large numbers of dead-end low-wage retail and service sector jobs, leaving low income, families, mostly people of color, mired in an endless cycle of poverty. While some Smart Growth proponents have advanced the notion that development should be governed by the “Three E’s” – the economy, the environment, and equity – few if any jurisdictions have pursued “growth with equity” policies in a systematic way. Consequently, even after investing billions of dollars in economic development, metropolitan regions continue to experience spiraling poverty, sprawling, unplanned growth, a crisis of affordable housing, and declining quality of life for low and middle-income communities. Large-scale expenditures on economic development therefore present a host of questions for local government: ▪ What is the role of the public sector in guiding urban growth? ▪ What information is needed for local governments and community stakeholders to make informed choices about economic development? ▪ How can communities take advantage of nearly $50 billion in annual investment in local economies to address growing inequality and urban poverty and create a renaissance in urban areas across the country? ▪ What conditions or performance measures should be attached to public subsidies and major and use entitlements? ▪ What are the goals of economic development? ▪ Is it desirable to maximize democratic, civic participation in the economic development process and, if so, what is the best means to do so? ▪ What new partnerships can be built to avoid the fractured land use politics of the past several decades? Taking into account these ideas, NLI believes that through effective planning, funding, implementation, and monitoring, real community benefits can be conferred on people and businesses through: ▪ Workforce Development: getting residents into well-paying jobs. ▪ Small Business Development: ensuring fair and equitable contracting opportunities. Community Benefits Gain Momentum Across America Over the past decade, local residents’ successful pursuit of comprehensive community benefits has gained substantial momentum. The chart below shows how large-scale and, in some cases, publicly financed/subsidized development projects are accountable to the people who live in impacted areas and/or help finance them.
  7. 7. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 7 Summary Descriptions of Community Benefits and Large-Scale Public/Private Projects Cleveland Medical Mart Convention Center Columbia University Manhattanville Expansion Smilow Cancer Hospital at Yale- New Haven Consol Energy Center, multi- purpose arena (Pittsburgh) Gateway Center at Bronx Terminal Market Mall Project scale and characteristics More than 500,000 square feet of showrooms, exhibit space, and conference center 17 acres, adding about 6.8 million square feet to the university, including a new business school and science facilities 14-story, 500,000 square feet 720,000 square- foot hockey and basketball arena and concert venue 1 million square feet of retail space and 2,600 parking spots for a new mall that will include national “big box” retailers, restaurants, local businesses, and a possible hotel Public subsidies and other financing Cuyahoga County funds a total of $900 million, with $425 million for construction No public financing (City of New York may contribute to housing fund) Yale-New Haven Hospital obtained funds through equity, bond financing, and a major fundraising campaign Funded by a $7.5 million annual payment for 30 years from the Pittsburgh casino, $7.5 million a year from a state economic development fund backed by slot machine revenues, and $4 million a year from the Penguins Not available Total project cost $425 million $6-7 billion $467 million $321 million $500 million
  8. 8. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 8 Summary Descriptions of Community Benefits and Large-Scale Public/Private Projects Cleveland Medical Mart Convention Center Columbia University Manhattanville Expansion Smilow Cancer Hospital at Yale- New Haven Consol Energy Center, multi- purpose arena (Pittsburgh) Gateway Center at Bronx Terminal Market Mall Overview of projected economic impacts Cuyahoga County4 Construction phase: - 1,556 jobs - $334 million in local spending for goods and services - $297.3 million in estimated total payroll - $588 million total economic impact Operation phase (Annual): - $124 million in spending on goods and services - $7 million in total public tax revenues - $205 million total economic impact - 14,000 construction jobs - Nearly 6,000 new university jobs with competitive health, educational, and retirement benefits - An average of 1,200 construction- related jobs per year for the next 25 years - Created more than 1,200 new, permanent jobs - 350 additional jobs will be created in other companies in the service sector as a direct result - 2,067 total jobs at its peak in 2008 (including 980 construction jobs) - Generates nearly $5 million in building permits to the City of New Haven - $3-4 million in payments in lieu of annual tax payments to the City of New Haven Center and ancillary development: - 5,000 new jobs - Housing for 2,500 - $20 million in additional tax revenue 5,000 new construction and retail jobs
  9. 9. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 9 Summary Descriptions of Community Benefits and Large-Scale Public/Private Projects Cleveland Medical Mart Convention Center Columbia University Manhattanville Expansion Smilow Cancer Hospital at Yale- New Haven Consol Energy Center, multi- purpose arena (Pittsburgh) Gateway Center at Bronx Terminal Market Mall Build-out period 2010 - 2012 Over the next 25 years 2006-2009 2008-2010 2006-2009 Overview of community benefits MMPI and MMPI Cleveland (the developer) goals: - Twenty-five percent in value of subcontracts awarded to SBEs certified by the county - Forty percent of contractors’ and subcontractors’ workforces hold residency in Cuyahoga County - Twenty percent of contractors’ and subcontractors’ workforce hold residency in Cleveland Columbia University will provide: - $76 million for a flexible benefit fund, allocated across various community benefits - $50 million for in-kind services, including $30 million toward a K-8 school - $20 million for housing - $4 million for legal services to help those displaced by the development Yale-New Haven Hospital will: - Provide $1.2 million for housing and economic development - Hire 500 area residents over a five-year period - Establish a comprehensive training program that includes at least 50 career ladder opportunities and provides $300,000 in funding per year - Contribute $500,000 over five years to the city’s youth initiative - Provide $700,000 over five years to fund two outreach positions through the city’s health department Urban Redevelopment Authority, City, County, and Pittsburgh Penguins will: - Fund a professional Master Development Plan - Provide $2 million for a grocery store - Provide at least $300,000 for job-referral programs - Ensure residents are first referred for new jobs - Fund $500,000 per year for 6 - 12 years ($3-6 million) to support community and economic development, education and youth services, and drug, alcohol, and mental health services Related Cos. (the developer) will provide $3 million over five years to fund: - First-source job referral and hiring program - Training and apprenticeship program - Business development program for MBE/WBEs
  10. 10. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 10 Economic Leakage vs. Wealth Retention CBPs are wealth-retention tools. A local economy is like a bucket of water, and one of the worst liabilities a community can have is a leaky bucket – an economy that loses wealth as fast as it builds and attracts it. Leveraging the Medical Mart Project to incent the growth of SBEs and employ local workers ultimately empowers communities to better sustain themselves. As local development money flows to SBEs and workers through CBP inclusion initiatives, it is retained longer by local communities. This wealth-retention strategy strengthens and revitalizes commerce and creates new jobs. The economic multiplier effects of local SBE and worker-inclusion incentives will promote community wealth retention throughout Cuyahoga County and enhance prosperity throughout the region. Critical Leadership Role for Cuyahoga County Government For purposes of government leadership, it is important to note that most CBAs in effect in the United States in June 2009 directly involve local government actors, and local government agencies often help advocacy groups and developers implement CBAs and support them programmatically5 . Experience has yielded powerful lessons that should not be forgotten. Foremost among them is that the overall projected economic impact of developments of this scale and magnitude will not be achieved without creating, funding, implementing, and monitoring a program of comprehensive community benefits. By undertaking this CBP process, Cuyahoga County government has already taken the first important step to ensuring that widespread, equitable community benefits are provided to the people and businesses of Cuyahoga County. Time Is Of the Essence To further leverage the expected extraordinary economic impact of the Medical Mart Project, NLI recommends that accelerated positive efforts be immediately undertaken by the Development Team to use SBEs, including minority- and women- owned businesses, and local workers as sources of goods, services, and labor whenever possible. It is imperative that the Development Team stipulate the inclusion of local SBEs and workers as a term and condition of contract and subcontract awards. In light of the new relationships than can be formed and the anticipated economic impact of the Medical Mart Project, NLI further recommends that special programs be created for local SBEs and workers to successfully compete for business and employment opportunities arising from the project. Local SBEs and workers, governments, communities, unions, contractors, and subcontractors all stand to benefit from new, collaborative equity and inclusion efforts.
  11. 11. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 11 TOTAL PUBLIC INVESTENT AND PROJECTED ECONOMIC IMPACTS Medical Mart Project’s $900 Million Total Public Investment Means Considerable Economic Impacts As illustrated below, in addition to the public investment of $900 million over 20 years, including $425 million for construction, the Medical Mart Project is expected to generate outstanding economic impact6 : PROJECTED ECONOMIC IMPACT MEDICAL MART PROJECT City of Cleveland Cuyahoga County Construction Phase 1,258 Jobs - $255 million in local spending for goods and services - $247.1 million in estimated total payroll - $4.9 million total city payroll tax Construction Phase 1,556 Jobs - $334 million in local spending for goods and services - $297.3 million in estimated total payroll $468 million total City of Cleveland economic impact $588 million total Cuyahoga County economic impact Operation Phase – Per Convention (based on 5,000 delegates/convention) $4.2 million in spending on goods and services $278,000 in total public tax revenues* $6.7 million total economic impact - City of Cleveland $8.2 million total economic impact – Cuyahoga County Annual Economic Impact (based on 25 conventions/year): $124 million in spending on goods and services $7 million in total public tax revenues7 $168 million total economic impact – City of Cleveland $205 million total economic impact – Cuyahoga County
  12. 12. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 12 A CALL TO UNPRECEDENTED COLLABORATIVE ACTION Aggregate Organize Leverage (A.O.L.) The local SBE and worker inclusion planning and implementation strategies and tactics that follow lay the foundation for accountability and results. However, planning strategies and implementation tactics alone are not enough. They must lead to collaborative action by community, business, and government leaders. With apologies to America OnLine, in the several components of the CBP, NLI encourages the Development Team to lead the call to A.O.L.: ▪ Aggregate essential civic, government, health, and human services, as well as community, economic, education, foundation, and business resources ▪ Organize the resources into useful and actionable forms (partnerships and programs) ▪ Leverage the resources to the hilt, completing collaborative, high-impact programs, projects, and initiatives that further CAA and CBP goals Unprecedented collaboration – employing the A.O.L. model – will enable not merely singular, but rather much-desired exponential results. With today’s high- pressure global economy, there’s never been a better moment to harness the unique power of a local place- based development – the Medical Mart Project – to renew our area by creating sustainable jobs and educational, artistic, cultural, and other economic opportunities for our residents. Smart Collaboration NLI further encourages the Development Team to complement the A.O.L. model with Smart Collaboration strategies, defined as interconnected groups of citizens, institutions, organizations, and businesses that achieve targeted, high-impact objectives. Smart Collaboration will yield the highest return from the Medical Mart Project for Cuyahoga County. Smart Collaboration is neither “ambiguous” collaboration without sound reason and clear necessity, nor “political,” where participants are determined by biased or other misguided considerations. Smart Collaboration focuses on who and what are needed for positive community outcomes – nothing more, nothing less. Smart Collaboration must include government, philanthropic, and not-for-profit organizations, educational institutions, businesses and advocacy organizations, and others whose cooperation is key to strengthening such efforts. The operational theory girding Smart Collaboration is that, through high-leverage organizing – connecting the market knowledge and expertise of citizens with the talents and resources of government, business, philanthropy, and education – large-scale, intelligent collaboration can further empower Cuyahoga County residents to take full advantage of opportunities created by the Medical Mart Project. Smart Collaboration Aggregate Organize Leverage
  13. 13. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 13 CONSTRUCTION ADMINISTRATION AGREEMENT This proposal is designed to fulfill, and perhaps exceed, the SBE and local worker inclusion goals and objectives set forth in the Medical Mart Project Construction Administration Agreement. Overview The Construction Administration Agreement (CAA), by and between the Development Team, dated Jan. 7, 2010, provides a roadmap for the design, construction, furnishing, equipping, and operation of the Medical Mart Project. It clarifies the general concepts that were set forth in the Development Agreement of April 16, 2009, and the Letter of Intent with the City of Cleveland, of May 4, 2009, and creates processes and procedures for the timely and cost-efficient completion of the Medical Mart Project. Important goals of the CAA promote local SBE and worker inclusion by contractors and subcontractors. Below are the local SBE and worker inclusion provisions of the CAA: ARTICLE 4, DESIGN OF THE FACILITY – 4.21 Local Business Participation. 4.21.1 Developer shall, to the extent practicable, solicit services from local architects, engineers, consultants, and other service providers in connection with the planning and design of the Facility. Developer understands and acknowledges that the County is committed to providing equal opportunities to [SBEs], and that the County, in choosing Developer, expects Developer to further the County's initiative by considering, throughout the Project, potential [SBE] contractors, subcontractors, and suppliers that Developer can utilize to perform the Work. 4.21.2 The County shall provide Developer with the written policies and procedures applicable to each of the County programs referenced in this Section 4.21 so that the same can be implemented by Developer and included, as applicable, in each contract or agreement entered into in connection with Development, design, construction, furnishing, or equipping of the Facility (including the Architect Agreements and the Construction Agreement). ARTICLE 5, CONSTRUCTION OF THE FACILITY – 5.13 Local Business and Resident Participation. 5.13.1 Developer shall, to the extent practicable, solicit services from local architects, engineers, consultants, contractors, and other service providers. Developer understands and acknowledges that the County is committed to providing equal opportunities to [SBEs], and that the County, in choosing Developer, expects Developer to further the County's initiative by considering, on a per-Phase basis, potential [SBE], contractors, subcontractors, and suppliers that Developer can utilize to perform the Work. To achieve this purpose, Developer shall use commercially reasonable efforts to cause contractor to comply with the SBE Program and to use good faith efforts to achieve the following goals: 5.13.1.1 Twenty-five percent (25%) in value of Subcontracts shall be awarded to SBEs certified by the County. 5.13.1.2 Forty percent (40%) of Contractor's and Subcontractor's workforce shall hold residency in Cuyahoga County, and twenty percent (20%) of Contractor's and Subcontractor's workforce shall hold residency in the city of Cleveland. Definitions "Contractor" shall mean a general contractor, construction manager, or design-builder selected and engaged by Developer to provide pre- construction, construction, or design-build services to one or more Phases. "Subcontractor" shall mean any Person in privity with Contractor or any other subcontractor at any tier to perform a portion of the Work. Subcontractors include suppliers of materials or equipment.
  14. 14. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 14 CREATE, FUND, IMPLEMENT, AND MONITOR LOCAL SBE PARTNERSHIP Through the CAA, the Development Team has expressed its commitment to SBE opportunities. Accordingly, these businesses should be aggressively solicited and encouraged to participate in the procurement activities of the Medical Mart Project. Further, NLI recommends that the Development Team encourage all contractors to provide for the participation of SBEs through partnerships, joint ventures, sub-awards, and other contractual opportunities. To advance these goals, NLI recommends the implementation of a Local SBE Partnership. Creating Local SBE Partnership To fulfill and exceed the SBE inclusion goals and further capitalize on long-term hospitality and tourism (H&T) and health sciences business opportunities enabled by the Medical Mart Project, NLI recommends the Development Team enter into a memorandum of understanding (MOU) with targeted community partners to form a Local SBE Partnership. A Local SBE Partnership is a network of large businesses; small, minority- and women-owned businesses; advocacy organizations; and service providers that accelerate SBE competitiveness. By combining the market knowledge and expertise of Cuyahoga County’s leading SBEs and service providers with the talents and resources of the Development Team, a Local SBE Partnership will better prepare SBEs for business opportunities with the Medical Mart Project. Local SBE Partnership Guiding Principles Four guiding principles are embedded in a Local SBE Partnership: 1) Provide opportunities for SBEs 2) Achieve actual SBE participation 3) Minimize risk 4) Deliver results on-time, on schedule, and within budget Approaches such as matchmakers and traditional SBE development programs effectively expose SBEs to new contract opportunities. However, NLI recommends that the Development Team and Local SBE Partnership take the additional step of helping SBEs develop the necessary capability to win a reasonable amount of business contracts with the Medical Mart Project. The Local SBE Partnership should be a productive option to assist the Development Team in ensuring that SBEs have real opportunities, bolstered by real capabilities, to achieve positive outcomes. Purpose of the Local SBE Partnership The Local SBE Partnership should operate through all three phases of the Medical Mart Project: 1) Design and Construction 2) Operation 3) Long-term H&T and Health Sciences Entrepreneurship and Other Business Opportunities The purpose of the Local SBE Partnership is to assess ongoing business and new entrepreneurship opportunities throughout the three phases of the project and to work with the Development Team to implement strategies, programs, and initiatives that further leverage the project to grow local SBEs. SBE inclusion generates job opportunities for Cuyahoga County residents and keeps money circulating within the local economy to achieve a greater return of community benefits from the development.
  15. 15. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 15 Local SBE Partnership efforts include: ▪ Establishing a program to create opportunities for SBEs to benefit from the economic activity generated by the Medical Mart Project, including long-term H&T and health sciences entrepreneurship and other business opportunities. ▪ Coordinating with relevant businesses and advocacy and assistance organizations to initiate a program to increase participation in the planning, construction, operation, and maintenance of the Medical Mart Project and to capitalize on long-term H&T and health sciences entrepreneurship and other business opportunities. ▪ Consulting with the Development Team at regular intervals regarding the progress of SBE inclusion. Provisions of the Local SBE Partnership MOU Provisions of the Local SBE Partnership MOU will facilitate customized technical assistance, education, and training of SBEs from the city of Cleveland and Cuyahoga County, as set forth in the CAA, for business opportunities with and enabled by the Medical Mart Project. The Local SBE Partnership MOU will include: 1) Technical assistance, education, and training programs paid for with funds provided under the CAA and performed by providers approved by the Development Team and Local SBE Partnership. 2) Consulting with the Development Team at regular intervals regarding the progress of the technical assistance, education, and training provided under the CAA. 3) Ensuring that SBEs receive technical assistance, education, and training to build capacity in the precise areas requested by Medical Mart Project contractors and subcontractors. 4) Assistance in gathering, organizing, and reporting data to ensure effective monitoring and measurement of efforts. Local SBE Partnership Development Targets The Local SBE Partnership shall, to the extent permissible by law, target support services and business opportunities to: ▪ SBEs located in the city of Cleveland ▪ SBEs located in Cuyahoga County Content of SBE Technical Assistance, Education, and Training Programs Local SBE Partnership technical assistance, education, and training development programs funded under the CAA may include: 1) Capability Assessment 2) Infrastructure Development - People - Process - Technology - Capital 3) Leadership Development 4) Access to Capital 5) Access to Bonding 6) Certification 7) Deal-Making 8) Growth Planning 9) Mentoring 10) Overall understanding of SBE strengths and weaknesses and opportunities for development Service providers who receive funds from the Development Team and Local SBE Partnership must consult both entities about the design and implementation of all programs.
  16. 16. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 16 Actions and Timeline The Development Team should ensure that the Local SBE Partnership commences by September 2010. Fiscal Oversight The Development Team should provide fiscal oversight. Facilitation, Management, and Monitoring NLI brings together strong advocates from many different organizations and disciplines and can provide convening, facilitation, and management services to the Local SBE Partnership and its programs. Facilitation and management services include identifying and recommending groups and stakeholders for participation, as well as convening, establishing, and providing ongoing staff support to the Local SBE Partnership. Additionally, NLI can provide leadership for monitoring and measuring performance and compliance with CAA goals. Funding To fulfill and exceed the SBE inclusion terms of the CAA, and to capitalize on long- term H&T and health sciences entrepreneurship, and other business opportunities, NLI recommends that the Development Team provide $5 million of seed funding over 10 years ($500,000 per year, renewable annually based on meeting established goals). Tools to measure the return on this community investment of approximately 0.5% of the $900 million total public investment will be developed and implemented. Further, it is anticipated that the seed investment will be supported by the Development Team and Local SBE Partnership’s joint fundraising from other public, private, and philanthropic sources. Long-term funding is necessary to ensure that the collaboration between the Development Team and the Local SBE Partnership extends beyond the design and construction phase, and into the operation and ongoing H&T and health sciences entrepreneurship, and other business opportunities phases. Funds will be used to build the long-term momentum necessary for SBEs to develop alongside the growth and success of the Medical Mart Project and the new H&T and health sciences business opportunities, and will pay the costs of: 1) Conducting classes to prepare SBEs to become more competitive candidates for Medical Mart Project business opportunities and long-term business opportunities resulting from the project. 2) Providing technical assistance, education, and training support services for SBEs taking such classes or for those SBEs identified by the Local SBE Partnership as reasonably likely to be competitive for the Medical Mart Project, and long-term business opportunities, with the assistance of such support services. 3) Convening, facilitating, and managing the Local SBE Partnership and its programs, projects, and initiatives. 4) Operating, managing, and monitoring the SBE Solutions Program. 5) The Development Team should cooperate with the Local SBE Partnership to obtain additional funds from private, philanthropic, and government sources to support SBE inclusion programs. 6) At the conclusion of the term of the MOU, any unused funds will revert to the Development Team. Initial Local SBE Partnership Program ▪ SBE Solutions Program
  17. 17. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 17 SBE SOLUTIONS PROGRAM Background and Vision Healthy local businesses are a basic component of strong, sustainable communities. They provide essential amenities and generate job opportunities for residents that keep money circulating within the community rather than draining it outward as fast as it is attracted. SBEs, including minority-owned and women-owned enterprises, face particularly daunting challenges, including access to capital, equitable contracting prospects, and joint-venture and partnership opportunities. Additionally, many local businesses are often overlooked in major development projects in favor of larger businesses from outside the area. Such biases inhibit growth opportunities and stifle community development. SBE Solutions overcome those challenges and biases by leveraging the Medical Mart Project to achieve equitable SBE inclusion. SBE Solutions – Creation To meet and exceed the SBE inclusion goals set forth in the CAA and to capitalize on long-term H&T and health sciences entrepreneurship, and other business opportunities, NLI recommends that the Development Team and Local SBE Partnership establish SBE Solutions. SBE Solutions – Purpose The purpose of SBE Solutions is to leverage the Medical Mart Project to considerably accelerate SBE growth and development, including minority- and women-owned business enterprises, through comprehensive, construction-related, H&T and health sciences business, technical assistance, education, and training. Additionally, SBE Solutions creates new entrepreneurship, business development, and contracting opportunities and facilitates capital formation and investment to fuel SBE growth. The successful implementation of SBE Solutions advances each of these purposes. SBE Solutions – Development NLI recommends that the Development Team ensure that all contractors and subcontractors have access to SBE Solutions, as the program should provide a pool of competitive SBEs for available business opportunities with the Medical Mart Project. Contractors and subcontractors should receive prompt, cost-free referrals of qualified SBEs. Strategies that increase SBE access to and capacity for contracts are one way of building additional community benefits into large-scale public developments, such as the Medical Mart Project. SBE contracting programs, such as SBE Solutions, reflect a nationwide community benefits movement. Communities are organizing around large-scale and publicly financed/subsidized development projects to achieve equitable benefits, such as business opportunities for local SBEs. The economic activity generated by the Medical Mart Project, which should lead to new H&T and health sciences entrepreneurship, and other business opportunities, can support SBE growth and serve as a critical job-creating engine.
  18. 18. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 18 SBE SOLUTIONS: 21 PROGRAM STRATEGIES, TACTICS, AND OVERSIGHT To create SBE Solutions, the following strategies and tactics should be considered and further refined, and the best ideas should be adopted and implemented: 1) SBE Development as a Regional Economic Development Priority. As a matter of government policy, NLI recommends that Cuyahoga County express the strategic regional economic development case for SBE development, leveraging supplier inclusion achievements to create a lasting positive economic impact on the county. Below are compelling illustrations of Ohio and Cuyahoga County’s SBE characteristics that present overwhelming job creation and other demographic realities of the strategic importance of SBE development. 2) Establishing Goals. Setting quantifiable goals for making purchases from SBEs is critical to the success of any supplier-inclusion program. Goals set the necessary performance standards. They are established by customer requirements, benchmarking, and historic best-performance standards. SBE goals should be tailored to the local community and blended into overall Development Team goals. SBE Solutions’ inclusion goals should focus on : a. Construction: Ensuring that all bid specifications related to construction activity include SBE procurement goals. Compliance and verification would be key issues, since corruption and misrepresentation are rampant in this industry. b. General Procurement: Ensuring that all bid specifications related to general procurement include SBE goals, including a historical review for basic goods and services that are and are not competitively bid, to uncover overlooked opportunities. c. Professional Services: Ensuring that professional services contracting include SBE participation. Professional services providers include attorneys, law firms, doctors, architects, engineers, accountants, actuaries, insurers, staffing firms, nurses, IT experts, financial services professionals, and many more. They provide significant new opportunities for SBE inclusion. 3) New Business Classifications. SBE Solutions should not use race-based classifications, as they can be legally problematic. However, economic- based classifications are without legal risk. The Development Team and Local SBE Partnership should explore employing the tools of Equitable Competition TM to create new business classifications based on size and revenue. Equitable Competition TM tools create an environment of fair and reasonable competition. They retain the vital competitive tension in the contracting process that is necessary to keep contracting prices in check by requiring similarly situated businesses to compete against one another: a. SBEs compete against other SBEs b. Larger businesses compete against other larger businesses c. SBEs do not compete against larger businesses d. Larger businesses do not compete against SBEs Economic-based contracting programs could include: a. Set-aside classifications for contracts, where only a certain class of businesses would be eligible to bid on certain contracts. b. Subcontracting economic inclusion criteria for defining and determining the lowest and most responsive bid for larger contracts.
  19. 19. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 19 To ensure the new classifications reflect local market realities, the Development Team and Local SBE Partnership should consider the following Ohio and Cuyahoga County SBE statistics: SBA Office of Advocacy: SBE Profile – OHIO 8, 9 Ohio Small Businesses Market Characteristics 2006 Ohio SBEs, total number 923,021 (SBA: An SBE is defined as fewer than 500 employees) 2007 Ohio SBEs, without employees 718,986 2006 Ohio SBEs, with employees 204,035 2006 Ohio SBEs, percent of total employers 98.2% of Ohio’s employers are SBEs 2006 Ohio SBEs, percent of private-sector employment 48.6% of Ohio’s private-sector employment is from SBEs 2006 Ohio SBEs, total income (non-farm income) $26.9 billion 2006 Ohio SBEs, average income (non-farm income) $29,150 per SBEΏ Ohio SBEs, new jobs created SBEs created all of the state's net new jobs from 2004 to 2005 Ώ Ohio SBE total income (non-farm) divided by total number of Ohio SBEs. Cuyahoga County SBE Profile10 Cuyahoga County SBEs Market Characteristics 2007 Cuyahoga County SBEs, total number 35,934 2007 Cuyahoga County SBEs, less than 50 employees 33,583 (93%+ of total SBEs) 2007 Cuyahoga County SBEs, less than 20 employees 30,125 (83%+ of total SBEs)
  20. 20. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 20 New Entrepreneurial/Small Business Enterprise TM Classifications Based on Ohio and Cuyahoga County SBE market characteristics – especially considering that: a. there are nearly 36,000 SBEs in the county, b. the average income for Ohio SBEs is about $29,150, and c. more than 83% of county SBEs have less than 20 employees, yet, statewide, SBEs are creating the overwhelming majority of net new jobs – the Development Team and the Local SBE Partnership should explore developing new business classifications for the Medical Mart Project that better reflect the local SBE market. Currently, to become eligible for the Cuyahoga County SBE Program, a business must demonstrate it has been in continuous operation in the category or the related category for which it is requesting certification for one year, and that its annual gross revenues or its total workforce are at or less than the SBE Program standards established by the U.S. Small Business Administration set forth below. To ensure access to meaningful business contracting opportunities, using the principles of Equitable Competition TM , NLI recommends that the Development Team and Local SBE Partnership establish new Entrepreneurial/Small Business Enterprise TM (E/SBE) classifications, to more accurately reflect the realities of Cuyahoga County. The current SBE classifications and proposed E/SBE classifications are set forth below. Current SBE Classifications and Proposed New E/SBE Classifications Category Current SBE Gross Revenues or Total Workforce Proposed E/SBE Gross Revenues or Total Workforce Percentage Change (Approx.) Most manufacturing 500 employees 50 employees - 90% All wholesale trade industries 100 employees 25 employees - 75% Most retail & service industries $6 million $1.8million - 70% Most general & heavy construction industries $28.5 million $5.7 million - 80% All special trade contractors $12 million $2.4 million - 80% Architectural/engineering $4 million $1.6 million - 60% Law firms $6 million $1.8 million - 70% Consultants $6 million $1.8 million - 70%
  21. 21. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 21 4) Contract Financing. Through SBE Solutions, the Development Team could consider offering lines of credit to qualified SBEs to finance Medical Mart Project contracts, wherein the borrowing SBE assigns payments due from performance of a contract to the Development Team. Advances can be made under a line of credit based on invoices billed for completed work. As invoices are paid, additional advances can be made. Contract financing programs authorize lines of credit for up to one year and provide advances on receivables for as much as 90% of billed receivables. The basic objective of the contract financing tool is to guarantee loans or make loans to SBEs for working capital, machinery, or equipment to execute contracts, thus further enabling SBEs to seek, win, and fulfill such contracts. 5) SBE Growth Program, Fund, and Authority11 Cuyahoga County could investigate legislation to create the SBE Growth Program, Fund, and Authority as a component of SBE Solutions. The SBE Growth Program, Fund, and Authority would allow the formation of a $25 million private investment fund to provide Cuyahoga County-based SBEs the capital they need to build capacity, grow, and create new jobs and wealth in the county. . The following describes how the SBE Growth Program, Fund, and Authority possibly could be structured: a. Program The SBE Growth Program could create a haven, i.e. an “advantaged environment,” for SBEs by incenting the creation and increasing the flow of private investment dollars to such companies through the SBE Growth Fund. These dollars could be backed by Cuyahoga County and administered by an SBE Growth Authority, whose members would be appointed by Cuyahoga County. b. Fund The SBE Growth Fund could be secured by Cuyahoga County up to a specified maximum loss, first through program revenues or, if insufficient, through proceeds from the sale of transferable tax credits that may be claimed against the county property tax (on real estate) and Commercial Activity Tax. c. Authority The SBE Growth Authority would be responsible for establishing guidelines and setting criteria for the awarding of investment dollars from the SBE Growth Fund, thereby giving a boost to SBEs in Cuyahoga County at no direct cost to taxpayers. d. Legislation would: I. Establish the SBE Growth Program (Program) to make loans to and invest in Cuyahoga County-based SBEs. II. Establish the SBE Growth Authority (Authority) to oversee the Program. III. Direct the Authority to create the SBE Growth Fund (Fund) and associated lending and investment policy. IV. To carry out the Program’s objective, permit the Fund to designate one private, for-profit investment fund manager to serve as the administrative entity. V. Provide for the one-time issuance from Cuyahoga County to the Authority a total of $25 million in non-refundable tax credits for 20 years against the county property tax (on real estate) and Commercial Activity Tax that the Authority may then sell to provide security against potential losses incurred under the Program. VI. Permit the original purchaser of such tax credit to sell or transfer it.
  22. 22. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 22 VII. No more than a total of $1.25 million in tax credits could be claimed in any one fiscal year. VIII. Prohibit the Authority from selling a credit that may be claimed after 20 years from the creation and issuance of the credit. IX. Specify that the transfer of tax credits to, or use of the proceeds received from, the sale of tax credits by the Authority does not constitute an obligation of Cuyahoga County. 6) B2B Incentive. Cuyahoga County should explore working with the State of Ohio to create a pilot program to reduce dollar-for-dollar the amount of taxable income under the Commercial Activity Tax for companies doing business with SBEs located in the county. For example, if Company X conducts $2 million in business with an SBE located in Cuyahoga County, Company X’s taxable income under the Commercial Activity Tax is reduced by $2 million, an appreciable tax savings. The income earned by the SBE through this program would be fully taxable, as prescribed under the Commercial Activity Tax. Consequently, Cuyahoga County realizes the Commercial Activity Tax revenue from the SBE, which it lost from Company X. In theory, this approach is a tax-shifting tool, not a tax- elimination tool. This measure would incent companies to do business with SBEs in Cuyahoga County, and is not intended to eliminate or undermine tax revenue to Cuyahoga County or the State of Ohio. 7) Accelerated Certification. Only SBEs that have been certified by an accredited third-party agency should be eligible for participation in SBE Solutions. Use of certified suppliers helps prevent the use of “front” companies. It is imperative that the certification process be accelerated to ensure that SBEs have fast and fair opportunities to compete for Medical Mart Project business through all three phases of the project. 8) Accountability. The Development Team should be accountable for reaching SBE goals. The best organizations include this in performance appraisals, along with cost savings, product/service quality, and reduced procurement cycle times. What gets measured gets done.
  23. 23. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 23 9) Strategic Sourcing. Correctly packaging bids to take advantage of local SBE availability, as well as providing these suppliers with equitable procurement opportunities, must be an ongoing and proactive process for the Development Team. Forecasting purchasing requirements and matching those requirements to local SBEs saves time, mitigates risk, and also ensures a wider range of suppliers. Strategic sourcing is part of effective supply chain management and helps ensure that SBE suppliers get a fair opportunity to compete. The Internet is an excellent tool to help locate and learn about prospective suppliers by reviewing their websites. To ensure success, strategic sourcing lists should be included in the sourcing plans used by the Development Team’s purchasing and contracting teams. Strategic sourcing helps avoid the “we can’t find anybody” syndrome. 10) Subcontracting. SBE Solutions should include a subcontracting component. Contractors invoice the general contractor, and subcontractors invoice contractors. Subcontracting is essential, since many of its procurement dollars are typically spent with SBE suppliers. 11) Prompt Payment Provisions. The Development Team could consider requiring contractors and subcontractors to incorporate prompt-payment clauses in every contract that obligate them to pay SBEs within a given number of days after receiving payment from the general contractor. Prompt payment should be required only for satisfactory completion of work. 12) Offer Advance Payments. Lack of up-front capital prohibits many SBEs from bidding on public contracts. One way to increase access to public contracts is to offer advance payments to competent SBEs that are unable to begin work without initial financial assistance. The Development Team could consider providing advance payments of 10-15% of the total contract value, with a maximum advance payment cap, which would significantly increase prospects for SBE success. 13) Break Up Large Contracts. The Development Team can increase SBE access to Medical Mart Project opportunities by breaking up large contracts into smaller opportunities. This allows competent SBEs with lower capacities to bid on such contracts. 14) Technical Support. To mitigate risk and build capability, both of which help SBEs fulfill their contracted responsibilities, SBE Solutions should provide comprehensive training. This could include bidding assistance and advice, and resources such as lending entities, public- and private-sector financing, workforce assistance, business consultants, and more. 15) Education. The Development Team, contractors, and subcontractors should be educated on how to successfully work with SBE Solutions. The best programs include ongoing education in marketing, technology adoption, and business alliances. 16) Mentorship Programs. Mentoring opportunities for large, well-established businesses to coach aspiring SBEs should be a component of SBE Solutions. A mentor-protégé relationship helps SBEs by providing basic support and technical assistance, as well as by developing a relationship that can be the source of future business opportunities. It also brings in large firms as partners and allies in the movement to grow and develop SBEs. Mentor- protégé relationships may also grow into future business alliances. 17) Awards Program. Development Team employees who extend extra effort to make SBE Solutions a success should be widely recognized and celebrated to reward them and encourage others to provide their best efforts.
  24. 24. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 24 18) Annual Report. Over the course of the Medical Mart Project, the Development Team and the Local SBE Partnership should publish an annual report highlighting each contractor’s and subcontractor‘s successful efforts to include SBEs in contracting opportunities. 19) E-Commerce. An effective SBE Solutions e- procurement system ensures transparent, accurate tracking of procurement and includes an online vendor directory and registration system, electronic notification of procurement opportunities, e-business education and mentoring opportunities for suppliers, and SBE e-commerce participation goals. 20) Marketing. SBE Solutions should provide networking among contractors, subcontractors, SBEs, and procurement staff and serve as an information source for all bidding news and updates. The marketing function would publish an electronic newsletter, as well as other collateral for all potential and actual bidders. 21) Benchmarking. The Development Team and Local SBE Partnership should benchmark SBE Solutions, both internally and externally. Benchmarking outside of the program is a good way to get breakthrough results. A good source from which to obtain benchmarks is an industry group. Benchmarking must be conducted periodically to keep SBE Solutions current. SBE Solutions – Oversight NLI recommends that SBE Solutions be jointly overseen by the Development Team and Local SBE Partnership, which would assist with program design, fundraising, and outcome monitoring. In the event of a change in the organization that operates and manages SBE Solutions, the Development Team and Local SBE Partnership should jointly recommend and retain a replacement.
  25. 25. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 25 PROPOSAL GUIDELINES AND DELIVERABLES SBE Solutions – Operation and Management Proposals The Development Team and Local SBE Partnership should seek proposals from qualified SBEs, business counselors, and service providers (Providers) to operate and manage SBE Solutions. Proposals should build on local SBE assets, respond to the needs of SBEs and larger businesses, and commit to the goals outlined in the CAA and above. Proposals should also describe clear strategies and programs for outreach and support to local SBEs. The Development Team and Local SBE Partnership should strongly encourage collaborations that enhance overall program success. Scope of SBE Solutions ▪ Part I Foundation Services ▪ Part II. Outreach ▪ Part III. Capability/Development Services Part I. SBE Solutions Foundation Services Foundational elements in SBE Solutions include marketing, recruitment, and registration. These functions are critical for an effective program, and the Providers should have the experience and capacity to perform in these key areas: Foundation Services Marketing 1) Create website with FAQ on SBE Solutions 2) Link website to collaboration partners 3) Promote SBE Solutions in partner newsletters, e-mail blasts, and meetings Recruitment 1) Develop a list of potential SBE recruits from collaborating partners 2) Identify recruits through referral network 3) Convert recruits to registered SBEs Registration 1) Create an SBE registration repository with pertinent information 2) Sort and stratify SBEs by industry group, size, service offerings, etc. 3) Create capability to match and align SBEs with Medical Mart Project opportunities Part II. SBE Solutions Outreach The Providers should ensure the performance of outreach services necessary for SBE Solutions at all stages of its planning, construction, and operation. Such outreach efforts are necessary to: ▪ Inform Cuyahoga County taxpayers, SBEs, contractors, subcontractors, and SBE advocacy organizations and service providers of SBE Solutions, as well as provide program updates ▪ Foster local community involvement in SBE Solutions to assist in developing and continuously improving SBE Solutions ▪ Expand the contractor and subcontractor database to provide greater opportunities The Providers should ensure collaboration with local community organizations and SBE and economic development organizations to perform the outreach services. Outreach to SBEs A proactive program is needed to reach out to SBEs. This involves attending trade fairs, launching a website, advertising, etc. Outreach is essential to learning, leveraging, and growing the capabilities of SBE suppliers. The following outreach solutions and strategies would encourage SBE participation: 1) Work with SBE-focused groups whose missions support inclusion. 2) Emphasize the importance of soliciting certified SBEs for subcontracting opportunities at pre-bid conferences and in the bid documents. Strongly encourage and/or require contractors and subcontractors to solicit bids for subcontracts from SBEs.
  26. 26. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 26 3) Hold meetings to share detailed information with contractors and subcontractors concerning the bidding and good-faith-efforts requirements. 4) Assess the effectiveness of SBE Solutions and identify opportunities to enhance it by evaluating SBE participation and compliance, as well as by reviewing the good-faith efforts of contractors and subcontractors, as required in bid packages. 5) Develop contracting and subcontracting opportunities unique to each phase of the Medical Mart Project based on local SBE availability, and target them for SBE Solutions opportunities. Develop these opportunities and contact interested SBEs no later than 10 working days prior to the bid opening to provide a list of contractors and subcontractors that plan to participate. 6) Build new and strengthen existing business relationships through networking. Continue communicating with other Northeast Ohio governments and public agencies and the private sector to find out how their SBE outreach programs work and to share best practices and ideas to improve programs. 7) Enhance the Medical Mart Project website by including the outreach plan and guidelines, listing good-faith efforts, creating links to SBE resources, and creating awareness of specific subcontracting opportunities. 8) Make available to SBE-focused organizations and agencies a list of subcontracting opportunities when identified, no later than 10 working days prior to bid openings, and a list of contractor and subcontractor bidders that SBEs may wish to contact for subcontracting consideration. 9) Maintain a database specifically for SBEs, contractors, and subcontractors to ensure those firms have access to up-to-date information. 10) Advertise upcoming bid opportunities in SBE, minority-, and women-focused local media. Outreach to Development Team The Providers should work with the Development Team to: 1) Attend the scheduled pre-bid conference to explain SBE requirements to prospective bidders. 2) Identify and notify prospective contractors, subcontractors, and SBEs of potential contracting opportunities. 3) Maintain documentation of any contacts, correspondence, or conversation with SBEs in an attempt to meet SBE Solutions goals. 4) Jointly review all requirements of SBE Solutions prior to an award recommendation for any contract. 5) During the construction phase, review documentation for contract payments for compliance with SBE use commitments and other requirements. Outreach to Contractors and Subcontractors The Providers should work with contractors and subcontractors to: 1) Attend scheduled pre-bid conferences. 2) Identify or determine work areas of a subcontract where SBEs may have an interest in performing work. 3) Ensure that SBE goals are listed in the request for proposal. 4) Identify on bid documents the SBEs that would be used on the project, with corresponding total dollar values of the bid and an affidavit listing the value of the SBEs’ services and good faith outreach efforts. 5) Document evidence of outreach to SBEs for review by the Development Team and Local SBE Partnership. 6) Ensure that contractors and subcontractors provide one of the following, upon being named the apparent successful bidder:
  27. 27. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 27 a. An affidavit that includes a description of the portion of work to be executed by SBEs, expressed as a percentage of the total contract price, which is equal to or more than the applicable goal; or b. Documentation of all good-faith efforts to meet the goal if the percentage is not equal to the SBE inclusion goal. The documentation should include evidence of all good-faith efforts, including any advertisements, solicitations, and evidence of other specific actions demonstrating recruitment and selection of SBEs for participation in the contract. Failure to comply with these requirements is grounds for rejection of the bid and awarding it to the next lowest and most responsive bidder. 7) Ensure that, at any time, if it becomes necessary to replace an SBE subcontractor, the Development Team and Local SBE Partnership are immediately advised in writing of the circumstances. Contractors and subcontractors must be required to make good-faith efforts to replace SBE subcontractors with other SBE subcontractors. 8) Ensure that if additional subcontracting opportunities become available, contractors and subcontractors make good-faith efforts to solicit bids from SBEs. Part III. SBE Solutions Capability/Development Services This involves the Providers’ performance and/or provision of comprehensive services and technical assistance to SBEs enrolled in SBE Solutions. The Providers help SBEs further develop the skills, knowledge, and overall capability to succeed. Capability/Development services and technical assistance may include: 1) Developing literature and/or providing training or workshops on: a. how to become a certified SBE with the Development Team b. how to obtain financing and bonding c. how to properly complete necessary paperwork d. how to bid on or propose a project 2) Matching contractors and subcontractors with SBEs 3) Obtaining feedback from contractors, subcontractors, and SBEs regarding the successes and challenges of the project 4) Assisting in gathering, organizing, and reporting data Capability/Development Service Deliverables12 The Providers should have the experience and capacity to provide and/or ensure the provision of comprehensive capability/development services and technical assistance, such as: Training and Development 1) People Training—addresses interpersonal soft skills (customer service, quality, timely performance, etc.) 2) Financial Training—addresses the financial aspects of a business (financial planning, money management, banking, etc.) 3) Business Training—addresses the “ins and outs” of business (entrepreneurship, business planning, marketing, etc.)
  28. 28. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 28 4) Technical Training—addresses technical aspects of business (computer systems, engineering, technology, etc.) 5) Construction Training—addresses skills specific to the construction industry (bidding, blueprint reading, estimating, etc.) 6) Specialty Skills Training—addresses specialty skills on an as-needed basis SBE Delivery Capabilities 1) Infrastructure Development—enhance delivery capabilities for SBEs around people, processes, and technology to support the execution of business opportunities 2) Leadership Development—enhance leadership skills of C-level executives through executive coaching 3) SBE Certification a. Accelerate the certification process b. Support SBEs in acquiring certification c. Make certification as simple as possible 4) Bonding a. Determine instances when bonding should not be required b. Support SBEs in acquiring bonding c. Identify strategic business partner(s) to serve as primary suppliers of SBE bonding 5) Capital Access a. Support SBEs in acquiring capital b. Provide SBE access to existing capital pools c. Define creative capital alternatives 6) Deal Making a. Support SBEs in developing win-win business deals with larger Medical Mart Project contractors and subcontractors 7) Growth and Development a. Support SBEs in defining and executing a growth strategy. Address people, processes, technology, leadership, capital, and certification needs using a pool of skilled/specialty resources. Contractor and Subcontractor Services 1) SBE Solutions Registration a. Create an SBE repository with pertinent information b. Create the capability to match and align SBEs with contractors and subcontractors 2) Supplier Diversity Spend a. Support contractors and subcontractors in making supplier diversity more robust b. Support the creation of formal accountability for supplier diversity c. Support metrics and measures around supplier diversity 3) SBE Mentoring Support a. Mentor/Protégé b. Project Financing c. Bonding Support Construction-Specific SBE Capability/Development Service Deliverables13 The Providers should have the experience and capacity to provide construction-specific capability/development services and technical assistance, such as: 1) Construction blueprint reading, accounting, estimating, documents, specs, and management courses 2) Supervisory training programs, including leadership and motivation 3) Seminars and programs, such as building- information modeling and workers’ comp seminars
  29. 29. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 29 4) Trade association meetings to meet peers and possibly join, pending becoming a union signatory contractor 5) Information on construction apprenticeship programs 6) Opportunity to use Green Sheet services and job-placement opportunities 7) Legislative programs and committee meetings to learn about legislative issues affecting contractors 8) Opportunity to be listed on the Providers’ website to market their company 9) Opportunity to network at special events 10) Labor relations matters 11) Wage rate information 12) Fringe benefit administration 13) Immigration assistance 14) Solicitation guidance – Information and guidance to help SBEs distinguish among worthy, legitimate organizations and dubious, illegal solicitations. 15) Safety Training a. OSHA 10-hour and 30-hour b. OSHA 500 c. First-aid/CPR training d. Classes such as fall protection, scaffold, trenching, confined space, etc. 16) Safety training at Construction Safety Council 17) Opportunity to be ally with OSHA and create possible future partnership with OSHA 18) Operation Safe Site a. Job inspections available upon request and scheduling b. On-site safety meetings conducted by a safety professional c. Assistance with OSHA citations and informal conferences d. Telephonic assistance with interpreting OSHA regulations and job-site safety requirements e. All-in-one posters, start-up kits, OSHA code books, and additional safety information 19) Online services a. Tips for toolbox safety meetings available for download with sign-in sheet for meeting documentation b. OSHA training c. Posting of new developments to reach construction industry
  30. 30. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 30 PROPOSAL FORMAT Proposals should outline the following: 1) Summary of program goals, objectives, and expected results (maximum one page) a. Brief statement of your organization’s mission, history, and population served b. Goal(s) should correspond to the Development Team and Local SBE Partnership goals outlined above, adjusted to reflect organizational capacity. c. Objectives that are specific and measureable, along with time-limited statements that answer the questions, “What steps will you take to achieve the goal, and in what timeframe will they be achieved?” Objectives should respond to the program deliverables outlined above. 2) Program narrative (maximum five pages). This section should detail the information summarized in the first section and should include descriptions of: a. The city of Cleveland and Cuyahoga County SBE markets b. The organization’s history and track record in providing SBE services, including the above-described foundation services, outreach, capability/development services, and technical assistance c. The specific activities and services that will be offered, along with a timeline detailing when each service/activity will be implemented d. Proposed partners e. How progress toward goals and objectives will be measured and evaluated 3) Program budget (maximum one page). 4) A list of grants received by the organization in the last 12 months for SBE development programming (sources and amounts) and a list of any expected additional support. 5) A list of the organization’s current Board of Directors, including each member’s name, title, and organizational affiliation. Eligible Organizations NLI recommends that the Development Team and Local SBE Partnership give preference to SBEs and community-based SBE service providers and advocacy organizations with a track record of providing meaningful services to local SBEs. Members of the Development Team and Local SBE Partnership associated with any organization submitting proposals to operate SBE Solutions should disqualify themselves from the review and selection process. Timeline and Process for Proposal Submission, Review, and Approval 1) The deadline for proposal submissions will be ____________________, 2010. 2) The proposals will be reviewed by the Development Team and Local SBE Partnership and approved, or provisionally approved subject to revisions, by ____________________, 2010. 3) After provisional approval, the proposals will be reviewed by the Development Team and Local SBE Partnership for final approval by _____________________, 2010.
  31. 31. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 31 The Development Team: Cuyahoga County MMPI MMPI Cleveland Local SBE Partnership: Large businesses and small, minority- and women-owned businesses, advocacy organizations, and service providers Business Opportunities and Contracts for Cleveland and Cuyahoga County Small Businesses SBE Solutions Program Medical Mart Convention Center Project Local SBE Partnership and SBE Solutions Program Model
  32. 32. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 32 CREATE, FUND, IMPLEMENT, AND MONITOR LOCAL WORKER PARTNERSHIP Creating a Local Worker Partnership To meet and exceed the local workforce inclusion goals set forth in the CAA, and further capitalize on long-term H&T, health sciences, and construction-related employment opportunities enabled by the Medical Mart Project, NLI recommends that the Development Team enter into an MOU with targeted community partners to form a Local Worker Partnership. A Local Worker Partnership is a network of workforce- development organizations and social and human services providers that unite to improve local-worker competitiveness. By combining the market knowledge and expertise of Cuyahoga County’s leading provider organizations with the talents and resources of the Development Team, the Local Worker Partnership will better prepare local workers for employment opportunities with the Medical Mart Project and long- term H&T and health sciences opportunities enabled by the project. Local Worker Opportunities Because of the scale of the public investment – $900 million – and the direct link to the region’s growing H&T and flourishing health sciences industries, the construction and operation of the Medical Mart Project can: 1) Help Cuyahoga County better compete in state, national, and global markets to attract healthcare innovations, research dollars, patients, and specialists. 2) Create more than 1,200 jobs in Cleveland and 1,500 jobs in Cuyahoga County during construction. 3) Help the H&T sector reach critical mass by activating a set of multipliers to create long- term jobs for local workers, and help develop opportunities for local-worker education and training in H&T and health sciences. Purpose of the Local Worker Partnership The Local Worker Partnership operates through all three phases of the Medical Mart Project: 1) Design and construction 2) Ongoing operation 3) Long-term employment opportunities in H&T, health sciences, and construction-related fields The purpose of the Local Worker Partnership is to assess ongoing employment opportunities (including current and future workforce, education, literacy, and training needs) throughout the three phases of the Medical Mart Project, and to work with the Development Team to implement strategies, programs, and initiatives that leverage the Medical Mart Project by addressing long- term unemployment among local workers. These efforts include: 1) Establishing targeted job-readiness and worker training programs in construction, H&T, and health sciences 2) Hiring and referral initiatives for pre- construction, construction, and permanent H&T and health sciences jobs 3) Developing a continuum of workforce- development services for unemployed persons, including life-skills development, construction, health sciences, H&T career ladder/pathway programs, and incumbent worker training 4) Ensuring that Zero Tolerance policies are incorporated into all workforce, education, literacy, and training initiatives 5) Working collaboratively with community organizations, including labor unions, contractors, subcontractors, and SBEs, including minority- and women-owned companies, to increase workforce diversity 6) Gathering, organizing, and reporting data for effecting monitoring and measurement
  33. 33. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 33 Provisions of the Local Worker Partnership MOU Provisions of the Local Worker Partnership MOU facilitate customized training and employment of job applicants and prospective job applicants from the city of Cleveland and Cuyahoga County, as set forth in the CAA, in the Medical Mart Project and in long-term H&T, health sciences, and construction-related opportunities enabled by the project. The Local Worker Partnership MOU will include: 1) Job training programs paid with funds provided under the CAA and delivered by providers approved by the Development Team and Local Worker Partnership. 2) Consulting with the Development Team at regular intervals regarding the progress of job training and employment provided under the CAA. 3) Ensuring that job applicants, including residents who are participants in a rehabilitated ex- offender job training program, receive job training in the precise skills requested by Medical Mart Project contractors and subcontractors and demanded by H&T and health sciences employers. 4) Securing H&T training in the management, marketing, and operations of restaurants and other foodservices, lodging, attractions, recreation events, and travel-related services, as well as the health sciences, to take advantage of long-term job opportunities enabled by the project. 5) Conducting the following assessments and competencies: a. Workforce, education, literacy, and training situational needs assessment b. Partner program and service delivery capabilities c. Partner resource capacity and availability Construction, H&T, and Health sciences Work Experience Programs The Development Team and Local Worker Partnership will ensure that prospective employees who participate in training programs under the CAA are afforded construction work experience jobs in the Medical Mart Project and long-term H&T and health sciences employment opportunities. To the extent permissible by law, and consistent with local workforce-inclusion provisions set forth in the CAA, residents in the city of Cleveland and Cuyahoga County will be targeted for work-experience program placement opportunities. Local Worker Partnership Development Targets To the extent permissible by law, and consistent with local workforce-inclusion provisions set forth in the CAA, enrollment opportunities in all workforce development, education, literacy, and training programs will be made available to: 1) Low-income individuals living in the city of Cleveland, defined as up to 80% of Cleveland’s median household income 2) Low-income individuals residing in Cuyahoga County, defined as up to 80% of Cuyahoga County’s median household income 3) Moderate-income individuals living in the city of Cleveland, defined as up to 120% of Cleveland’s median household income 4) Moderate-income individuals living in Cuyahoga County, defined as up to 120% of Cuyahoga County’s median household income 5) Individuals residing in the city of Cleveland and Cuyahoga County currently working in construction-related, H&T, and health sciences jobs and eligible for incumbent-worker training
  34. 34. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 34 Content of Workforce, Education, Literacy, and Training Programs Workforce development, education, literacy, and training programs funded under the CAA may include literacy enhancement, job-readiness, life-skill development, rehabilitated ex-offender re-entry, construction-related subject matter, long-term H&T and health sciences career ladder/pathways, incumbent- worker training, and other programs as approved by the Development Team and Local Worker Partnership. Service providers that receive funds from the Development Team and Local Worker Partnership must consult both entities about the design and implementation of all programs. Special Note on H&T Jobs and Sustainable H&T Development14 With the Medical Mart Project, the people of Cuyahoga County are investing heavily to strengthen the H&T sector of our local economy. Leaders in the community benefits field have noted that the increasing importance of the H&T economy and the gradual, unyielding shift from heavy manufacturing presents new challenges to our economic well-being. Most notable is the quality of many of the jobs in the H&T industry. Progressive communities have learned that H&T jobs need not be low-paying, dead-end positions. Cuyahoga County, along with other local governments, communities, and H&T industry leaders should work together to develop and implement policies and strategies that create pathways to the middle class. In short, NLI recommends that Cuyahoga County support principles of sustainable H&T development. Cuyahoga County should consider several approaches to ensure sustainable H&T development15 1) Conduct a full audit of hotel leases and redevelopment agreements that enjoy public subsidy. Residents deserve to know the full : story behind the agreements upon which our H&T industry is built. 2) Hold public hearings on the costs and benefits of the H&T industry to Cuyahoga County residents and discuss the costs and benefits of subsidizing and investing in the H&T industry. 3) Future Cuyahoga County agreements to assist in hotel and other H&T development should require a Community Benefits Impact Study to examine the impact of development, subsidies, job creation, and compensation on workers and residents. 4) Explore government policy options for raising standards at hotels and other H&T amenities, as workers and residents deserve to benefit from the taxpayer largesse provided to our H&T industry. These and other efforts can help ensure that the H&T industry, which Cuyahoga County taxpayers will heavily subsidize, yields the kind of quality jobs and other opportunities that the citizens expect and demand. Actions and Timeline NLI recommends the Development Team ensure that the Local Worker Partnership commences by September 2010. Fiscal Oversight The Development Team should provide fiscal oversight. Facilitation, Management, and Monitoring NLI can bring together strong advocates from many different organizations and disciplines and provide convening, facilitation, and management services to the Local Worker Partnership and its programs. Facilitation and management services include identifying and recommending groups and stakeholders for participation and convening, as well as establishing and providing ongoing support to the Local Worker Partnership. Additionally, NLI can provide leadership for monitoring and measuring performance and compliance with CAA goals. . . . H&T jobs do not need to be low- paying, dead-end positions.
  35. 35. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 35 Funding To fulfill and exceed the local worker inclusion terms of the CAA and capitalize on long-term H&T and health sciences employment opportunities enabled by the Medical Mart Project, NLI recommends that the Development Team provide seed funding in the amount of $5 million over 10 years ($500,000 per year, renewable annually based on meeting established goals). Tools to measure the return on this community investment of approximately 0.5% of the $900 million total public investment will be developed and implemented. Further, it is anticipated that the seed investment will be supported by the Development Team and Local Worker Partnership’s joint fundraising from other public, private, and philanthropic sources. Long-term funding is necessary to ensure that collaboration between the Development Team and the Local Worker Partnership extends beyond the design and construction phase and into the operation and ongoing employment opportunities in H&T, health sciences, and construction-related fields. Funds will be used to build the long-term momentum that is vital for local workers to develop concurrently with the growth and success of the Medical Mart and new H&T and health sciences employment opportunities, and to pay the costs of: 1) Conducting classes to prepare targeted applicants to become pre-apprentices in the construction trades and long-term workers in H&T and health sciences. 2) Providing social and human support services for local workers taking such classes, or who are identified by the Local Worker Partnership or the Priority Source Local Worker Referral System as people who are, with the assistance of such support services, reasonably likely to be employable within the Medical Mart Project or within long-term H&T, health sciences, and construction-related opportunities. 3) Convening, facilitating, and managing the Local Worker Partnership and its programs, projects, and initiatives. 4) Operating, managing, and monitoring the Priority Source Program. 5) At the conclusion of the term of the MOU, any unused funds will revert to the Development Team. Initial Local Worker Partnership Program ▪ Priority Source Hiring Program
  36. 36. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 36 PRIORITY SOURCE HIRING PROGRAM Background and Vision The CAA provides an excellent opportunity to ensure that local residents share in the benefits of constructing and operating the Medical Mart Project. It creates opportunities for new collaborative relationships among community-based organizations, government, contractors, subcontractors, unions, and businesses connected with the project. These new relationships create special opportunities for targeted local workers to apply for building trades apprenticeships and develop a diverse group of qualified local candidates for other long-term H&T, health sciences, and construction- related employment opportunities resulting from the project. Priority Source Program To meet and exceed local workforce inclusion goals set forth in the CAA and capitalize on long-term H&T and health sciences employment opportunities, NLI recommends that the Development Team and the Local Worker Partnership establish the Priority Source Hiring Program (Priority Source Program). Priority Source Program – Purpose The purpose of the Priority Source Program is to combine both job training and preparation and referral services to create an innovative program that: 1) Provides or ensures the provision of job preparation, counseling, education, training, and social and human supportive services, thereby increasing the overall competitiveness of job applicants 2) Serves as the priority, or first, source for direct job referrals and placement of qualified city of Cleveland and Cuyahoga County residents and for enrollment in pre-apprenticeship training programs 3) Provides training in the management, marketing, and operations of restaurants and other foodservices, lodging, attractions, recreation events, and travel-related services to take advantage of long-term H&T jobs enabled by the project 4) Serves as a direct job-referral service for long- term health sciences job training and employment Priority Source Program – Development NLI recommends that the Development Team ensure that the Priority Source Program is a material provision in all contractor and subcontractor agreements. The program should provide early access to targeted applicants for available jobs, and contractors and subcontractors should receive prompt, cost-free referrals of qualified, trained, and ready-to-work applicants. Approval of the CAA, with local workforce inclusion goals, should represent a meaningful first step in collaboration between the Development Team and community- based organizations. However, this opportunity will only be fully realized when the strategic and tactical steps needed to complement the construction phase of the Medical Mart Project, along with long-term H&T and health sciences employment opportunities for local workers, are identified and established. Throughout the country, innovative programs demonstrate how new local workers can successfully enter the building and construction trades and realize new career ladder/pathways opportunities in other promising sectors, positioning themselves for greater economic prosperity. These programs measure success by the job placement and retention of their participants, and frequently include creative approaches to recruitment, pre-apprenticeship training, case management, support services, job readiness, and mentoring.
  37. 37. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 37 Priority Source Program – Concentration16 1) Construction-Related: Careers in designing, planning, managing, building, and maintaining the built environment. 2) Health Sciences: Planning, managing, and providing therapeutic services, diagnostic services, health informatics, support services, and biotechnology research and development. 3) Hospitality and Tourism: Encompassing the management, marketing, and operations of restaurants and other foodservices, lodging, gaming, attractions, recreation events, and travel-related services. Priority Source Program – Construction Phase Requirements Through the Priority Source Program, Medical Mart contractors and subcontractors agree to hire first from this local source, which helps them reduce recruitment and training costs. To establish the Priority Source Program, the following steps should be taken: 1) Agree to Participate. The Development Team should require and/or encourage contractors and subcontractors to participate in the Priority Source Program. It is preferable to include language about the program in any project labor agreements. 2) Provide Seed and Operating Money. The Development Team should provide seed and operating investment to set up the Priority Source Program, including provision of “wrap- around” social and human support services. 3) Provide Space. The Development Team should provide space for an office in which to run the Priority Source Program at job sites. This brings the program closer to contractors and subcontractors at the site, thereby better serving their needs. Priority Source Program – Oversight The Priority Source Program should be jointly overseen by the Development Team and the Local Worker Partnership, which would assist with program design, fundraising, and monitoring outcomes. In the event of a change in the organization that operates and manages the Priority Source Program, the Development Team and Local Worker Partnership should jointly recommend and retain a replacement entity. Conflicts with Collective Bargaining Agreements Contractors and subcontractors who are subject to collective bargaining agreements that may conflict with the terms of the Priority Source Program are not required to participate in the program but may elect to voluntarily participate. Security Applicants hired under the Priority Source Program should be required to meet any applicable industry security requirements and standards.
  38. 38. Local SBE Partnership & Local Worker Partnership Neighborhood Leadership Institute 38 PROPOSAL GUIDELINES Priority Source Program – Operation and Management Proposals The Development Team and Local Worker Partnership should seek proposals from qualified workforce development, job training, and social and human services providers (Providers) to operate and manage the Priority Source Program. Proposals should build on local workforce assets and respond to the needs of contractors, subcontractors, and H&T and health sciences employers, as well as those of local workers. Proposals should demonstrate a commitment to the goals outlined in the CAA and above. The proposals should also outline clear strategies, programs, and initiatives for outreach to the local workers. The Development Team and Local Worker Partnership should strongly encourage collaborations that enhance overall program success. Scope of Work The Priority Source Program will provide and/or ensure provision and coordination of services, including: 1) Pre-Apprenticeship Training. Improving basic skills and preparing local workers for an apprenticeship program. Such programs help potential entrants to the building trades and construction apprenticeship system develop their job skills and trade readiness so that they are prepared to gain employment as apprentices or in related occupations. The Providers should design and implement an effective pre-apprenticeship training program that could include an overview of the construction trades and offer exposure to the workplace culture through visits and training at actual construction sites. It could also teach basic applied math and terminology used in construction, provide health and safety instruction, train workers in the use of basic tools, and offer daily physical conditioning exercises. 2) Support Services. Many local workers do not currently meet the requirements for the construction and building trades’ pre- apprenticeship training courses or for placement in an apprenticeship program. These local workers could be excluded from Medical Mart Project and other job opportunities unless targeted efforts are made to provide them with effective social and human support services. The Providers should design and implement social and human support services that should include culturally competent intake, assessments, and determination of eligibility for social and health support services; individualized case planning and management; mentoring; access to reliable transportation; information and referral to local training providers; creation of and support for learning community cohorts; direct employment services aimed at building work histories; work readiness and soft-skills training; and individualized follow-up and retention services. 3) Job Opportunities and Applicant Pool. The Providers should design and implement specific outreach systems to effectively develop and match the pool of priority job applicants with available positions offered by contractors and subcontractors.

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