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, Geneanne Franklin, and Rose Schembri (SBC Liaison). Representatives from the small business (SB) community were: Elisabeth Brinton (Co-Chair); John Eskel; James Brady, Betty Jo Toccoli, Randall Martinez, Martin McGartland (new member), Linda Sarno (representing Kerry Osaki), Robert Brown (representing Rich Dryden).

Opening remarks and comments: Ms. Hamilton welcomed attendees. She thanked the Los Angeles Metropolitan Water District for use of the meeting room, and thanked John Arena for his help in coordinating the meeting site. The Council's theme of Access, Opportunity for contracting and growth for business, and Ownership was shared with all, and has proved to be critical to the successes the Council has achieved in the areas we have on the agenda. Ms. Hamilton thanked everyone for their attendance at the meetings and the effort it takes to attend.

Co-Chair Elisabeth Brinton remarks: Ms. Brinton stated that she realizes meetings take place quarterly, but the work continues during other times too. There is a need to recruit more members to diversify the Council's membership. We are looking for the business communities in agriculture for example, and there are other areas that we would like added to the Council. She encouraged members to think about nominations to the Council.

The Executive Order (EO) S-02-06, signed by the Governor is very significant. This Council is being given the authority to make sure the spirit and purpose of it is fulfilled. DGS has taken this very seriously and has been contacting departments to ensure accountability. Another area of progress is in raising the ceiling. A recommendation from the SBC was given to DGS over a year ago and the work in this area will soon be complete. Other issues such as procurement reform, terms and conditions and bonding issues have been worked through with the guidance of DGS, through the SBC. Processes are coming to a conclusion, meetings, hearings have been taken place. The issues raised and the solutions we provide are critical to day-to-day business operations. Ms. Brinton announced that this was her last meeting as a member and co-chair of the Council. She will begin a new job at PRIDE Industries, and is looking forward to that new opportunity. They are a partner of the State of California. Betty Jo Tocolli will take over as the co-chair, and Marty McGartland from Natoma Technology will join as an alternate to Betty Jo.

Rita added that participation and an active involvement on the Council contributes to the success of this Council. She shared some successes such as certifying small businesses - the turn around time now is 15-20 days. We now have a report card by department. Secretary Marin and Director Ron Joseph have personally met with department directors, undersecretary and secretaries. The meetings have been received very well. Through those meetings, we have also learned about department's needs. Robert Brown, California DVBE Alliance shared that he just recertified it just took less than 12 days to be certified small business and DVBE. Events have been planned as 5 regional events. Sacramento, San Luis Obispo, Fresno, San Diego, and Los Angeles. A small business and DVBE recruitment video is being produced and plans are being made for it to be shown at the conference in Los Angeles, along with another major accomplishment, with the signing of the reciprocity certification agreement between the Metropolitan Water District and the DGS. Rita encouraged members to forward the e-mails regarding the events to the business community and associates as we want to maximize participation at every event. Association participation is vital.

Upcoming Meetings: Rita reviewed the upcoming SBC meeting dates: December 4, 2006 in Sacramento at the California Department of Veterans Affairs, March 6, 2007, Sacramento at the Ziggurat Building, June 5, 2007, Sacramento at the Ziggurat Building, September 11, 2007, Los Angeles (location to be determined), and December 4, 2007, Sacramento at the Ziggurat Building.

At the last Council meeting, we reported 134 days in arrears, 1200 in back-log. As of today, we have maintained 20 days for processing certifications, and our ultimate goal is on-line certification to bring the certification to a few number of days. November is the target date for this. At the December council meeting, it is hoped we can preview the on-line process.

John Arena, MWD, asked what was the factor that reduced the number of days. Russ replied that his office has put in a front-end screening process that allows the certifying officer to certify it since it has already been reviewed and is ready for certification. The whole process has been restructured. Hundreds if not thousands of hours were put into overtime. He thanked Eric Mandell and the Outreach and Communications staff for their help.

Randall Martinez, on the Council since 1999, noted that he has seen a high level of effort from the present administration. He has seen a level of participation from DGS to look at things from a process perspective. He thanked Russ for his approach to get things done. Randall asked how many businesses are in the Metropolitan Water District and what is their certification time?

Reciprocity Update Continued (John Arena): John Arena, spoke about scorecards, and that top businesses hold their executives accountable. In the public sector, we need to have buy-in, as we can't reward staff financially. There are approximately 5,000 in their database now, up from about 3,000. 800-900 a year are on the paper side. 38% of their business is with small business. He covers 6 counties. It takes less than 24 hours to certify, as it is self-certification process. There is intense auditing in place, and random audits are generated also. We have looked at the efforts of MWD and used it as a model. Russ feels we are going in a very positive direction. We have currently certified 12,300 plus and we may have an additional several thousand in the next few months.

Public Comment (Robert Brown) stated he is self-certified on the federal level. He believes the California process is very rigorous, and is extremely well thought of when you can say you are certified by the State of California. Russ commented we want to maintain those high standards.

State Agency Recognition Awards (SARA) Eric Mandell: We have seen a turn around with the departments and agencies, and have been promoting best practices. Last year we had between 8-10 nominations, this year it has been doubled. The event will be held on October 26, 2006. We need one more judge from the Council. It involves screening of applications and awarding the day of the event. John Eskel and James Brady offered their assistance. Caltrans was a winner last year, and we have learned from those winners and we improve the program as a whole. We have found that strong advocates promote better awareness and stronger participation goals.

Executive Order/Outreach Events (Eric Mandell) Paul Pendergast, small business consultant with DGS, has prepared the outreach flyer with dates of events. Two certification officers will be at each event, and to will be going to other outreach events. Eric thanked Dennis Trinidad, who was Master of Ceremonies for the event in Fresno. The next event is planned for October 19th which will be held at the Bonaventure Hotel. A motivational speaker and workshops are planned. Elisabeth Brinton added that procurement fairs are vital to the success of these conferences. Delegation is received from DGS, without a strong advocate, their small business participation may not be as big as it should be. Now every time a business is certified they receive notifications through our contract registry.

Engaging SBC Members in Outreach/Recruitment (Hamilton/Brinton):
Elisabeth reminded the Council members of the flyer that DGS created to say you're certified, what's next? It is the DGS' goal to empower small businesses to have the tools to be competitive and be certified, but noted they need to actively pursue the opportunities and the business. Rita wants to reactivate the advocates and re-energize the group. John Eskel would love to be included on any committee that would be involved in this effort. Paul Guerrero asked if we can get numbers of first-time awardees who were new to the system and what kinds of awards they have received.

James Brady, Council member, has concerns regarding the FSRs. He is trying to understand the process to see if there is an impediment to the process. Small business doesn't have enough time to respond and be notified to be able to participate. John Eskel, Council member, commented regarding RFIs, and that they create more work for the business.

Rita commented that successful advocates get the information to their departments. Rita discussed the flyer (SB/DVBE option). Elisabeth Brinton shared her experience in wanting to partner with a small business (a DVBE) to partner with. It was a great success story, where the advocate was empowered.

Lori Okamoto, Communications and Outreach, shared additional information about the event in San Diego and mentioned next week, the statewide Hispanic Chamber event will be happening in Sacramento. A large Asian Business event is planned on September 27, 2006 in Garden Grove. Linda Sarno, who was attending on behalf of Council member Kerry Osaki, extended an invitation to all. John Arena offered a list of contacts for Lori in Los Angeles.

SB 1436 (Figueroa) designates a small business liaison for each agency to develop a small business internet portal, which states that all business information that impacts small business must be accessible. Betty Jo believes this bill replaces AB 505.

AB 2330 - This will commission a study on small business costs (no later than October 10, 2007, Dennis needs to establish a small business advisory committee.) Will take effect on January 1, 2007. He believes this study will be of national interest.

Dennis also needs to do an annual report to the Governor and the Legislature. What items should be included in that report? What are the areas we can look at? What are the services being provided to the agencies and the impact on the small business community? Comments may be sent to: dennis.Trinidad@opr.ca.gov.

Elisabeth - DGS is looking into a Risk Analysis (we have hired a consultant) for DGS Procurement (terms and conditions relating to the size of the risk for the procurement). Bonding, sureties, don't need to be the same for a $40,000 project vs. larger procurement. This came out of discussions from SBC meetings and SB 954. There will be a "right-sizing" of the risk to the size of the project.

Betty Jo Toccoli - asked about calls she has received regarding $40 million dollars in bonding (as it relates to Caltrans customers.) Dennis Trinidad said Sunne McPeak (BT&H) is the contact. This was developed to help Caltrans. Paul Guerrero - commented brought about by the race neutral program, assistance in bonding and loans. Transportation related projects only. Paul believes this should include all procurements. (Olivia Fonseca at Caltrans should be able to address questions)

Procurement Processes Committee (Elisabeth Brinton): Combined IT and Procurement Processes. Small business input into T&C workshops. There have been changes to warranties. Risk Analysis continues. Bond requirements have been an impediment to small business. Business case - risk assessment/progress payment, Ron Joseph has given his authority to make a determination in certain procurements.

Outreach and Education (Randall Martinez): A video will be showcased on October 19th. The current script is approximately 6 minutes, as a motivation to small business. This will stream from the DGS website; it will be available to show at other events. DVD may be handed out (pending finances) at future events. A small business will be editing the video.

Prior to the next meeting, he would like the committee to meet to discuss possible ideas/recommendations for Dennis Trinidad's reports. He would like to gather information from the Council. Please provide comments to Dennis as a one-liner before the end of October.

Rita noted that strategic sourcing has been integrated into practice. The office supply contract has now expired. It went out to bid and we wanted small business and DVBE participation. Office Depot, came in 98% small business and 34% DVBE (check numbers)

Rita shared that she thinks we are missing an area of sub-contracting. Eric and Russ will be drafting a letter to our prime suppliers encouraging them to do business with small business. Rita and Rosario Marin will be signing the letter, and a copy will be sent to Council members.

Rita is continually inspired by the work of this Council to make a difference in the State. She thanked Betty Jo Toccoli for accepting the position as co-chair; welcomed Marty McGartland as Betty Jo's alternate and gave a final thank you to Elisabeth Brinton.

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DGS Small Business Council Meeting - September 20, 2006