Fiscal Note
Ordinance No. ORD-19-00057 (Leg file 54449) passed in 2019, allows the Affirmative Action Division Manager to reach voluntary agreements with contractors who have failed to meet affirmative action plan and/or contract requirements. Under these agreements, contractors provide payments to the City that will be used to support programs that grow Small Business Enterprises, Disadvantaged Business Enterprises, Minority Businesses Enterprises, Section 3 Business Enterprises, and Women’s Business Enterprises. Payments from these agreements have totaled over $637,000 as of 2024.
The proposed resolution authorizes a contract to support the Associates in Commercial Real Estate (ACRE) program at a total cost of $225,000 over three years. The $75,000 for the contract is included in the Department's 2025 Adopted Operating Budget within the Purchased Services major; the same amount will be included in 2026 and 2027 operating budgets. No additional City appropriation required.
Title
Authorizing the Mayor and City Clerk to enter a three-year, sole-source contract with Local Initiatives Support Corporation (LISC) for the Associates in Commercial Real Estate (ACRE) program.
Body
WHEREAS, City loan documents contain provisions related to the hiring of targeted business enterprises, and compliance for those requirements is reviewed by the Department of Civil Rights; and
WHEREAS, as a method of efficient and meaningful settlement for non-compliance, Chapter 39(9)(g)(13) of the Madison General Ordinances states:
The AA Division Manager may reach a voluntary agreement with a contractor claimed to be in violation of this ordinance. The agreement shall provide for payments to the City by the contractor to support a program or programs to enhance the growth of DBE, MBE, WBE or SBE in the greater Madison area, or to enhance the diversity of membership in the apprenticeship and trades.
WHEREAS, the Affirmative Action Division Manager has negotiated settlements and received settlement monies;
WHEREAS, the mission of Local Initiatives Support Corporation (LISC) is to help forge resilient and inclusive communities of opportunity across America-great places to live, work, visit, do business and raise families;
WHEREAS, the Associates in Commercial Real Estate (ACRE) Program is an industry-supported initiative that recruits and retains people of color for careers in commercial real estate;
WHEREAS, the goal of the ACRE program is to expand diversity and inclusion in the commercial real estate industry, including the fields of development, property management, and construction;
WHEREAS, the program offers students the opportunity to expand their knowledge of the industry while creating a valuable network of fellow students, ACRE graduates and industry professionals;
WHEREAS, the program includes working with experienced professionals to provide a better understanding of the real estate industry, as well as a hands-on approach to develop experience;
WHEREAS, the ACRE program started at Marquette University in 2004 as a means to expand opportunity for participants of color in the commercial real estate industry;
WHEREAS, the program has had 13 cohorts totaling 324 graduates;
WHEREAS, LISC requires sponsorship of the ACRE program to proceed;
WHEREAS, the City of Madison wishes to partner with LISC for their ACRE program to ensure that the program is accessible to future Madison participants;
WHEREAS, the partnership seeks to create new connections to Madison that are open to the entire ACRE alumni network and build on the legacy of ACRE with additional alumni events, technical assistance and financial resources;
NOW, THEREFORE, BE IT RESOLVED, that the Mayor and City Clerk are hereby authorized to execute a contract and/or any other documents as may be necessary to effectuate the transaction, all of which are subject to the approval of the City Attorney.