Call to Order:  Rita Hamilton, Deputy Director, Procurement Division and Council Co-Chair Betty Jo Toccoli called the Department of General Services (DGS) Small Business Council (SBC) meeting to order at 1:05 p.m.

Attendance:  The meeting was attended by the following DGS representatives: 
Rita Hamilton (Chair), Russ Guarna (Alt. Chair), Eric Mandell; and Rose Schembri (SBC Liaison).  Members of the SBC who were present:  Betty Jo Toccoli (Co-Chair);John Arena, Jerry Bircher, James Brady, Rich Dryden, Renee Fraser, Paul Guerrero, Chuck Lott, Randall Martinez, Heather Miller, Linda Sarno, Erica Thompson

 

New members were welcomed, Jerry Bircher, representing California Small Business Association, Chuck Lott, American Electronics Association, Renee Fraser, National Association of Women Business Owners, and Erica Thompson, Sacramento Metropolitan Chamber of Commerce.  The SBC Council is very pleased to have their representation and participation.

 

The following members' absences were excused:  John Eskel, Gene Hale,
Michael Ruiz

 

The following members were absent:  Larry Brooks, Stephen McGlover, Tracy Stanhoff, Randy Twist, Aubry Stone

 

Special Guests:  Sam Wallace, Business, Transportation and Housing Agency;
Marc Webber, Governor's Office - Interim Small Business Advocate; Will Bush, Interim DGS Director; Andrew Chang, DGS Chief Deputy Director, Gloria Anderson, Robin Borden, and Karl West - Office of Small and Disabled Veteran Business Services (presenters), Matt Bender, DGS Legislation.

 

 

Today's meeting will focus on the online certification demonstration and statistics will be shared.  New Small Business regulation changes and program updates will be provided, as well as highlighting the various collaboration and outreach events that have been scheduled for 2007.  Ms. Hamilton also stressed the importance of attending the SBC meetings and a future meeting schedule was distributed.  Please mark your calendars and plan on attending.  Members were reminded to confirm that Rose has updated addresses for future mailings.

Approval of Prior Meeting Minutes (December 12, 2006):  Motion made to approve the minutes.   Mr. Guerrero seconded the motion, the minutes were approved.  

Demonstration of New Online Certification - Karl West & Robin Borden, Office of Small and Disabled Veteran Business Services (OSDS)

Enhancements are being made currently to the online certification process.  Robin and Karl shared that once businesses are certified online, the system will take that information and put them into the Subscription Outreach Service.  Rita commended them for their effort and told everyone they have received the Department of General Services' (DGS) Superior Accomplishment Award.  They each have received a certificate along with a check in the amount of $500.

 

 

Gloria Anderson - As of February 28, 2007, 12,644 have been certified as small business with an additional 173 firms which are DVBE only.  The net increase from May 2006 to February 2007 was almost 4%.  Prior to the online certification process, many of our certifications can be attributed to the efforts of our Outreach and Communications Branch.  As of March 1st, paper applications are being processed in approximately 20 work days.  We now have 2 computers available for businesses that choose to apply and be certified in person in the lobby reception area of the OSDS.

 

Effective January 11, 2007, the DGS completed the regulatory process to increase the maximum gross annual receipts for small business certification from $10 million to $12 million.  The Office of Administrative Law approved the increase.  We were able to upgrade the online and paper applications and this increase will result in more certifications.  Microbusiness was at $2.5 and has been raised to $2.75 million dollars.  A broadcast was issued to announce the change.

 

Ms. Anderson talked with various departments regarding their process to capture dollars spent with SBs and DVBEs using the State's Visa card, referred to as the Cal-Card.  As a result, SB and DVBE participation could be understated.  The Procurement Division has a new project with our Cal-Card Unit to exchange VISA merchant numbers or federal employer identification numbers with U.S. Bank in order to receive reports electronically.  Our goal is to be able to tell the State agencies how much was spent with SB and DVBE firms in June 2007.  We need to refine this process.  For some departments, Cal-Card spend is huge, with over $550 million for State purchasing.  Eric Mandell, Manager, Outreach and Communications shared that our "How to Do Business with the State" outreach, tells about the Cal-Card VISA, as a mechanism of purchasing and raising awareness.

 

The OSDS has been informing the advocates and the buyers that under $100,000, they have the option of going to at least 2 SB or 2 DVBE firms and an award can be made to the certified SB or DVBE.  We have a template we share with State agencies to assist them to let their vendors know how they can get certified to participate in an award using the SB or DVBE option.  $131,000 is the limit for public works contracts using this option.

 

Ms. Anderson also noted that departments can use the State Contract & Purchasing Registration Systems (SCPRS) to enter their data to document these purchases to certified firms.  For consulting services contracts, additional screens were created for data necessary for a yearly report so departments can draw out this information more efficiently.  We will let them know if we can capture the Cal-Card spend.

 

 

Matt Bender introduced himself to the Council and attendees.  Mr. Bender handles Legislative bills for the Procurement Division.  Over 2700 potential bills have been introduced this year.  He is still reviewing the bills that implement small business.  He writes the analyses of bills that go to Agency.  He is available to members of the Council and he shared his email address and contact information and welcomes input.  He can be reached via email at matt.bender@dgs.ca.gov or by phone (916) 376-5044.    John Arena, SBC member, requested a copy of the analysis Matt Bender provided on SB 608 and 610 (small business incentives).  Matt Bender also noted the reports he prepares for the Governor's Office are considered confidential and privileged correspondence.  The department does not take a position on bills, but he would be happy to engage in dialogue to hear your position.  It's an important part of how we make a decision to the Governor's Office.

 

An Outreach and Collaboration Conference schedule was provided to the members.  As a result of the Governor's Executive Order (EO) S02-06 which raised the visibility of small business, Eric Mandell's staff has been working closely with Governor's small business advocate at Business, Transportation and Housing (BTH).  Large collaboration conferences are being piggybacked to accompany large successful events.  These events are most successful when you can attend and support them share the information with your constituents so they can benefit also.  Mr. Mandell thanked Rich Dryden, SBC Member who has held Town Hall DVBE meetings, and credited the success to these meetings as a partnership effort.  The Memorandum of Understanding (MOU) was signed with the Metropolitan Water District.  We must constantly build on these partnerships for the benefit of all.    Rich Dryden asked that we let the Council know what changes are being made to the event calendar.  Renee White Fraser, SBC Member, asked if we can count how many attended these conferences.  It would be nice to know how many businesses are being certified at these events also.  Eric said it would be very meaningful to track our successes.  NAWBO found that testimonials given at events proved to be successful.  Eric share we do have a forum called "Success Stories", where we share tips, and provide feedback.  John Arena, SBC member, shared the small business recruitment video we produced was very helpful.  In approximately 3 weeks, updates to the video should be made, and will be distributed to all.  Heather Miller, SBC Member, asked about the focus of our Customer Forums.  Eric responded that they are targeted to State offices for training.  We also do Resource Exchanges, targeting specific areas.  Rita will be sending out information to all members.

Randall Martinez, SBC Member, asked what we do to make ensure small businesses (SBs) and Disabled Veteran Business Enterprise (DVBEs) are included in the bid process.  Rita Hamilton responded that we do aggressive outreach and partnering conferences to include them in this process.   Betty Jo Toccoli asked on behalf of the Council , if they link to our online SB/DVBE certification application.  This was pended as an action item.  In response to this action item, Rita Hamilton provided an email to the Council stating, yes, they can link to our online system.

 

 

Mr. Wallace discussed EO 11-06 - and 6 events have been planned before July.  (Infrastructure CalTrans -Prime contractors events).   By the next SBC meeting, he will have a schedule of these events he can share with all the members.  Rita asked Rose to put Mr. Wallace on the agenda for the next meeting on June 5, 2007.

 

 

Mr. Arena has identified 4700 potential small businesses.  DGS and MWD are working on a broadcast to MWD's registered firms that we believe fit the State's criterion for SB certification.  We don't want small businesses to enter the same information here and at Metropolitan Water District (MWD).  We are adding the ability for MWD registered firms to enter their MWD account # during the online certification process with the State so we will be able to count how many went online and how many indicated that they are willing to share their certification information for reciprocity purposes.  MWD has been a great partner.

   

John Arena shared the MWD has gone from paper to online certifications with approximately 400 small businesses certified per year, which is an increase to over 2,000 per year.

Rita Hamilton noted that scheduling and attending Committee meetings are very important to the success of the Council, and reminded all committee chairs that meetings should be occurring and reports to the Committee need to be provided.

 

Randall Martinez needs clarification on TACPA/EZA from the December 12, 2006 meeting.  Paul Guerrero clarified if you are within the zone, you can get an additional 5 percent preference.  The DGS can't identify the TACPA zones.  Rita will get more information to Randall.

 

Betty Jo Toccoli - Small Business Day will be held on May 30, 2007, at the Sacramento Convention Center.  Legislators want to participate.  Governor's Office has been invited.  Susan Kennedy attended from the Governor's Office last year, and provided the keynote address.

James Brady - mentioned there are expiring IT contracts, and would like to know if there has there been any outreach to these expiring contracts.  Rita Hamilton has been working with the State CIO, Clark Kelso, to see if the platform specifications need updating.  Schedule is not yet completed.  Part of our process is that we identify what we need to purchase, such as desktops, laptops, etc.

 

Chuck Lott - Procurement Reform is going on with AeA and ITAA.  What is going on to update the SBC on these industry groups, and what is the proper forum?  Rita responded that this is important for the SBC to know.  The DGS has been working on a response to see how we can meet the needs of the IT business community.  Rita said this could be added to the next agenda.  Agency level is aware of the importance.

 

Public Comment Period (open to the public, members will not comment): 
Theresa Giordano, expressed her thanks on the outreach effort by the Procurement Division to Rita Hamilton and Eric Mandell's staff.  The labs, workshops, and events that are scheduled at the DGS are extremely helpful to her and her staff.

   

Rich Dryden - The Annual DVBE Conference will be held on June 13-14, 2007 in Anaheim.

 

John Arena - His affiliates want to know about the SBC.  This action item will be given to the Process Committee, Randall Martinez for handling and follow up.  

 

Meeting adjourned at 3:01 p.m.

Updated : 8/27/2007