DGS Small Business Council Meeting

Attendance: The meeting was attended by the following DGS representatives: Rita Hamilton (Chair); Russ Guarna (Alt. Chair); Eric Mandell, Lori Okamoto and Rose Schembri (SBC Liaison). Representatives from the small business (SB) community were: Elisabeth Brinton (Co-Chair); John Eskel; James Brady, Rich Dryden, Betty Jo Toccoli, Janet De Zonia, Aubry Stone, Craig Stevenson. The following special guests participated in the SBC meeting: Dennis Trinidad, State SB Advocate, Governor's Office; Ron Joseph, Director, DGS; Rosario Marin, Secretary, State and Consumer Services Agency, Paul Pendergast (presenter).

Opening remarks and comments: Ms. Hamilton welcomed attendees. She thanked the California Department of Veterans Affairs for use of the room, and thanked Stewart McKenzie for his help in coordinating the meeting site. Ms. Hamilton noted she valued the participation of each Small Business Council (SBC) member, and recognizes how difficult it is to make time for these meetings. The format has been altered to 3 hours, with a focus on major issues of concern to the small business community. Binders were sent to the SB Council members prior to the meeting to facilitate discussion and to accommodate everyone's busy schedules. Items covered today included the Governor's Executive Order (S-02-06), 2004/05 report on small business contracting activity, efforts to establish reciprocity, on-line application and self-certification process. We hope the dialogue today helps to move the issues forward. Dennis Trinidad also thanked the SBC for their participation.

Co-Chair Elisabeth Brinton also welcomed the Council and members of the small business community and general public to today's meeting. It is her hope to listen to the needs and make it work for the SBC. Diversity of groups and successful events, such as the Small Business Recognition Day on May 17, 2006 and the vendor fair contribute to the success of the organization. She thanked Dennis Trinidad for his efforts and the involvement of the Governor and the community for the successful event.

Approval of Small Business Council Charter: Members were given the information in binders that were mailed prior to the SBC meeting for their review. Ms. Brinton noted an error on page 2 regarding the committee information. Committees include: Construction, Outreach and Education, and Processes. Rose Schembri will send an e-mail to council members for further review. Item will be discussed at the next SBC meeting on September 20, 2006.
Mr. Mandell will also draft new language regarding Council membership requirements and develop information to the charter on joining the council and the new membership application for the website.

Ms. Hamilton noted for the first time, we have delayed the issuance of the report and have forced departments to give us their information. It is our intention to ensure all departments provide reports. Eric Mandell and Russ Guarna are working with these programs everyday. They work to drive the accountability of the reports and the participation numbers. We believe it's the most accurate report we have produced.

Paul Pendergast, a consultant hired by DGS PD, discussed the 5 regional events are being planned in accordance with the Executive Order. He asked for the Council's support. He presented an overall strategy for the Collaboration Conferences, as these events will be called. The tie that binds all these events is the focus on procurement. The Central Coast Conference will be scheduled August 23, 2006 in the Central Coast region. Paul noted that specific invitations will be sent to the construction industry community. He noted that there are 23,000 firms but only 1500 are certified. This will be a great opportunity for outreach and marketing to these firms. The San Diego event is also being planned, and he is working with Betty Jo Toccoli. September's event will be at the Radisson Hotel in Fresno. Specific attention will be focused on agriculture, consisting of workshops in certification and marketing their businesses. The Governor and Secretary Marin will be invited. Janet DeZonia is very interested in participating. Ms. Toccoli would be interested in participating in the San Diego event. Comment noted that the manufacturing community needs to be included in these events also. Aubry Stone stated there is a need to reach the firms in the Inland Empire area. Rita Hamilton added that our approach is regional, and it is outreach to all of California.

Ms. Hamilton reiterated the significance of the Governor's Executive Order and Governor's Action Plan. Eric Mandell stated the importance of small business and providing them access to State contracting and the Governor's desire to make a strong public statement. Directives were placed to each department and agency. The Council has a specific role to fit into this directive. At least 25 percent small business participation was required, and each agency/department is to have a small business advocate in place. It is the responsibility of Department of General Services (DGS) to monitor these reports. Partnering workshops are being planned and have been held for large procurements. DGS is working to bring SB and SVBE to meet with prime contractors. Five regional events will be planned throughout the State. Russ Guarna and his staff have been working diligently on report training and workshops. Reports broken down by Agency will be posted to our website with small business contracting numbers. Rita Hamilton and Elisabeth Brinton will be sending a letter on behalf of the SBC to agencies that met and/or did not meet the goal of 25 percent participation.

Ms. Hamilton welcomed Secretary of State and Consumer Services, Rosario Marin. Ms. Marin expressed the Governor's concern over current contracting numbers and his interest in small business. She shared how difficult it is for the Governor to personally attend every event. He has emphasized at Cabinet meetings, individual meetings, Hispanic Chamber of Commerce and the California Chamber of Commerce his interest in small business. Ms. Marin wanted to thank everyone at the meeting for their commitment to small business. She is grateful for the issues that are being addressed.

Reciprocity - see website for handouts. Russ Guarna discussed the Access Opportunity Ownership which is making it easier to be certified to do business with the State. This concept lends itself to true reciprocity. Russ stressed that his staff are working hard to make this happen. He stated we lose about 1600 small businesses in the course of a year. The Small Business Office is looking at ways to break down barriers and improve the certification process in the following areas:

Follow-up - Russ Guarna is working on this. He mentioned that the Los Angeles Metropolitan Water District presented at the last SBC meeting. Russ Guarna, Lori Okamoto and Eric Mandell met with them to find out how they're doing reciprocity. As a pilot project, we are partnering with them to exchange our small businesses and form a statewide pool. Aubry Stone, SBC member, offered to give assistance to PD's efforts.

Status of Small Business Ceiling Regulations: The small business regulation that would raise the ceiling to be a certified small business from $10 million to $12 million and to be a certified microbusiness from $2.5 million to $2.75 million will be addressed in a public comment period which will be issued the week of August 21, 2006. Look for more information on the PD website by August 21st to find out more information and public comment rules.

SBC Committee Updates

Construction Committee: Mr. Guerrero met with the committee June 28, 2006 at 8:30 a.m. He stated they reviewed the Commercial Use for Function copy of the CalTrans award contract - DVBE goal, Faye McGirr has a copy. He also shared that CalTrans is doing a disparity study in order to have their DVBE program. It should be completed by the end of the year. He wants to know if DGS wants to be involved in the study. Rita Hamilton will ask Olivia Fonseca.

Procurement Processes Committee: Elisabeth Brinton acknowledged the work of Rob Porter who recently passed away. They discussed the issues of bonding, and terms and conditions and on behalf of the Council, these issues have been elevated through DGS. DGS has offered T&C workshops. A report was just published that is accessible on the web. Action item: place on our website and send an e-mail to Council.

Public comment - Steve Ike, Delta Computer, commended the Council for the great work they are doing. This was the second meeting that he has attended. Steve Wong, Adge, commented he is very impressed with the initiatives heard today and will be applying on-line for certification. He thanked the SBC for the opportunity to be at the meeting.

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DGS Small Business Council Meeting - June 28, 2006