QUESTION
How does the Port Authority report MWBE utilizations to EDC, and what enforcement mechanisms exist for compliance?
1:17:44
·
6 min
The Port Authority shares MWBE awards and payment rates on JFK redevelopment projects with the EDC, but no specific enforcement mechanisms exist for compliance with MWBE goals.
- The Port Authority reports MWBE awards and payment information twice a year at airport board meetings.
- Information includes breakdowns of awards to minority groups and women-owned businesses (WBE), as well as local business enterprises (LBE).
- The EDC and the city lack specific provisions in the lease for enforcing MWBE performance compliance.
- EDC receives MWBE participation information at the same time as the public, with no advance notice.
- Discussion noted the Port Authority's softened penalties for not meeting MWBE goals during the COVID-19 pandemic, but current enforcement status remains unclear.
Brooks Powers
1:17:44
How was EDC?
1:17:46
Helping to hold the state accountable to MWBE utilization goals.
1:17:52
Does the port authority report any information about its MWBE utilizations to EDC.
1:17:58
And if so, what information is provided and is that only in those quarterly meeting?
1:18:04
Minutes, or what's the frequency of that information if you do get it?
Jennifer Sun
1:18:09
The port authority has been sharing MWE awards and payment rates on each of the JFK redevelopment projects, including the port authorities, investment, in roadways and utilities and presentations that look like the same presentations as what's shared at the community advisory council.
1:18:31
Seoul.
1:18:31
They've shared those twice at the 2 airport board meetings that were convened last year.
1:18:39
So we see, for example, you know, a breakdown of awards and payments for MBEs And then within the MBE categories, the awards to Asian, black, and Latino contractors, and then to WBE and to LBEs based on tiers for the port authority, terminal 1846.
Brooks Powers
1:19:06
And what power does EDC or the city have to enforce?
1:19:10
And I know the majority leader asks variation of this question, but what power does EDC or the city have to enforce the Port Authority's compliance, particularly with that goal?
Jennifer Sun
1:19:21
I don't think there are specific provisions in the lease that speak to enforcement mechanisms or remedies.
1:19:29
That are specific to MWBE performance, either in the original lease, and I think in the lease extension.
Mikelle Adgate
1:19:40
Chair, if I could just follow-up about the the MWE participation and where and how those numbers are reported.
1:19:49
I will say that, you know, in in my prep materials, we do have the presentation that was shared at the Community Advisory Council meeting back in November.
1:20:00
And there are multiple slides that speak directly to what Jennifer just described.
1:20:07
So there are things about MWE and LBE participation all the way through September 2023.
1:20:15
So that was made available to the public at that meeting and is now available on the JFK redevelopment website as well.
Brooks Powers
1:20:22
So EDC doesn't get it in advance of those meetings.
1:20:25
You just get it when they put it
Mikelle Adgate
1:20:28
out publicly.
1:20:29
Yeah.
1:20:29
That's right.
1:20:30
As as Jennifer has been to describing the airport board as as this fun this meeting, this function, we get very similar the exact same information.
1:20:41
Of course, we're happy to go back and and confirm that those slides are the same.
1:20:46
But from a cursory view, all of the material is consistent and publicly available online.
Brooks Powers
1:20:53
Would we be able to get a copy of one of the reports that you've received from the port authority?
Mikelle Adgate
1:20:59
Yes, we we said to paraphrase that we're happy to share that while we confirm ourselves as well.
Brooks Powers
1:21:08
It's also my understanding that the board of commissioners within the Port Authority had softened the penalties for not meeting the MWE go during co the COVID 19 pandemic.
1:21:19
Has EDUC been following that?
1:21:21
And do you know if that decision has been reversed now that we're on the other side of pandemic.
Mikelle Adgate
1:21:28
I am not aware of sort of the intricacies of the port authorities relationship between the board of commissioners and and the redevelopment.
1:21:39
From what I'm seeing about the materials that are made available, it seems that they are tracking based on the commitments made in the 2021 lease extension.
Brooks Powers
1:21:50
I I do think it's worthwhile for EDC to definitely follow, like, movement by the board of commissioners as it pertains to JFK in particular because, again, like, as a landlord and one that has certain items that are prescribed in the least.
1:22:10
I think this is one of those that kind of speak to that as well.
1:22:14
What role does EDC play in well, you're you're saying you don't have a role in overseas in the MWE parts a patient.
1:22:22
Because in the lease, it talks to the more recent extension it spoke to, like, certain community benefits that the Pollo Authority was to do and and to be working in closer collaboration and and partnership with the city.
1:22:43
So has any of that happened?
1:22:45
And I know you're ramping up, but has any of that happened at all yet?
Jennifer Sun
1:22:52
Share respectfully, is there a specific community initiative, maybe that you can provide as an example, of
Brooks Powers
1:22:59
I'm in a community initiative.
1:23:01
I'm just focusing on the MWE participation, like, how we're holding accountable, the port authority because, again, the lease leaves room for the port to work more closely with the city.
1:23:13
It can very well be like the city saying, we're gonna, you know, create access to capital through SBS, or it it can even be the city that's doing something.
1:23:23
Right?
1:23:23
Not saying solely it's support authority, but just wanting to know Has any of that happen, you know, what role is EDC kind of taken in that space?
Jennifer Sun
1:23:36
We've started to have this conversation Because in reviewing, I think the latest MWE rates, we noticed that in terminal 6, for example, they are not achieving the 30% minimum MWDBE participation.
1:23:51
And so that has prompted a conversation at EDC.
1:23:54
We haven't had this conversation with the port authority yet.
1:23:57
About, you know, better understanding why that's happening.
1:24:01
And then, you know, naturally, we would wanna understand what is the port authority doing, what is that terminal developer doing, in order to shore up, supporting more MWD participation in that project.
1:24:14
And then where there's an opportunity for SBS and the mayor's office even given their you know, keen focus on increasing MWDU participation in construction and other contracts, how we might be able to work together to supplement what's happening today.
Brooks Powers
1:24:33
Thank you for that.
1:24:37
I'm gonna jump to community engagement concerns and I'll end off with the intro 134 question.
