Fiscal Note
No Appropriation is Required. This proposed ordinance creates an alternative remedy whereby a contractor that DCR determined has failed to meet the AA plan may agree with the City to help to fund programs to increase the number of SBE, DBE, MBE and WBE, or to increase diversity in the trades. The agreement is voluntary. In this way, the remedy seeks to solve an AA issue, not simply return funds to the City’s general fund or to a TID. The amount paid to the City under an agreement is a negotiated figure, but is not to exceed the value of the shortfall in hiring under the contract. As any agreement would be voluntary by the contractor, the fiscal impact is unknown.
Title
Creating Section 39.02(9)(g)13. of the Madison General Ordinances to provide an alternative remedy of funding programs related to Affirmative Action.
Body
DRAFTER'S ANALYSIS: The City’s Affirmative Action ordinance, Sec. 39.02, MGO, requires certain contractors to submit plans to set and reach utilization goals for employees of color, women and targeted business enterprises -- Small Business Enterprises (SBE), Disadvantaged Business Enterprises (DBE), Minority Business Enterprises (MBE), Section 3 Business Enterprises (S3BE) and Women’s Business Enterprises (WBE). If a contractor fails to carry out its plan, the Affirmative Action Division has limited and blunt remedies: terminating the contract, assessing liquidated damages of up to $10,000, or debarring the contractor. None of these remedies increase the number of targeted businesses available to meet future AA goals. Some contractors claim it is difficult to meet those goals due to a shortage of targeted businesses. Nor do these remedies allow for the improvement of diversity in the trades, another problem faced by those trying to achieve AA goals.
This ordinance creates an alternative remedy whereby a contractor that DCR determined has failed to meet the AA plan may agree with the City to help to fund programs to incre...
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