QUESTION
Council Member Stevens Explores Swift Payment Practices for MWBEs
0:56:54
·
3 min
Council Member Althea Stevens raises questions about prompt payment practices for MWBEs, focusing on a specific 10-day payment policy within the construction mentoring program. Michael Garner, Chief Business Diversity Officer, explains the policy's successful implementation and plans for expansion. Discussions highlight the challenges MWBEs face with city contracts due to delayed payments and explore strategies for making the payment process more equitable across the board.
Speaker 9
0:56:54
Good morning.
0:56:55
I just have a question because I know in the testimony, it was stated that you'll be paying in WBEs within 10 days after receiving the after the invoice is submitted.
0:57:07
Can you talk a little bit about that process and how how you got to this?
0:57:11
I would love to hear
Speaker 5
0:57:11
more about that.
0:57:12
That's for our construction mentoring program.
Speaker 2
0:57:15
Mhmm.
Speaker 5
0:57:16
When we build that program at the SCA and at the MCA, We wrote policies that indicates that when a contractor completes a portion of their contract, They submit a accurate invoice.
0:57:34
The terms and conditions or our policies dictate that that contractor must be paid in 10 business days.
Speaker 9
0:57:42
And I asked that just because I'm trying to figure out why we're not doing that more throughout more of our contracts and the rest of it through the city because that's one of the major issues that we hear not only with businesses, but also not profit buyers.
0:57:54
So just wanting to get more clarity over, like, How do we if we're seeing that this is working and obviously it's gonna work as people want their money, how do we now do this more holistically throughout some of our other contracts?
0:58:05
And is that part of the conversations, especially with all the MWEs moving forward?
0:58:10
Is that something that you guys are planning on?
Speaker 5
0:58:12
Certainly, those conversations are taking place.
0:58:15
I would also say that FMTA, one of the chairs that I worked for, indicated that when we experiences best practices within programs, let's talk about expanding that best practices throughout the organization.
Speaker 10
0:58:30
Yeah.
Speaker 5
0:58:31
And so we basically are in the process of implementing this citywide construction mentoring program.
0:58:38
That is gonna be a written policy.
0:58:40
We're going to focus on that, and then once it's working, have other conversations about how we expand that.
Speaker 9
0:58:47
Thank you.
0:58:48
I would love to be a part of those conversations and thinking about how we could expand that because I think it's something we need to really be moving towards in the city where people are doing the work and still not getting paid for it in a timely manner, and it's just not acceptable.
0:59:00
And so I'm I'm just happy to hear that that is even something that's being discussed
Speaker 5
0:59:03
And, absolutely, I can tell you also as well that when we get emails and complaints about firms not getting paid, in a customer service response, we are all hands in in working with the agencies, identifying the problem, and ensuring that those firms get paid.
Speaker 9
0:59:23
Yeah.
0:59:24
Because we're especially our MWE's.
0:59:26
These are a lot of them are small, and they can't they can't sustain it.
0:59:30
And so a lot of businesses stray away from city contracts because the model that we have just isn't equitable.
0:59:37
And so just making sure we're thinking about that as we're rolling out w b e's and how we're making sure we're setting them up for success because I've had multiple conversations where folks are saying, I don't even go after those contracts because I can't do reimburse it.
0:59:50
Like, that's just not the structure.
0:59:51
I don't have a $100,000 to pay upfront and then get reimbursed.
0:59:54
And so we really have to think about when we're saying, like, we want it equitable, and we wanna make sure people have us, that is a huge barrier in this work.
1:00:02
So but like I said, I like to hear that and and wanna continue to have that conversation.
Speaker 5
1:00:05
Absolutely.
1:00:06
And and we we share the same sentiment of of creating an environment that's conducive to the growth and development of our M and WB Firms.
Speaker 9
1:00:14
Thank you.
Speaker 1
1:00:15
Thank you.
1:00:16
Next, we'll have questions from council member, Narcis.
Speaker 11
1:00:22
Thank you.
1:00:23
Good morning for being here.
1:00:24
Thank you, cheer.
1:00:25
One other thing.