[ad_1]
SOUTH BEND — A city employee who worked on South Bend’s efforts to support minority- and women-owned businesses has been fired, raising questions among Black Lives Matter South Bend organizers about the city’s commitment to historically disadvantaged populations. There are growing concerns about whether they are working together.
A termination letter dated Dec. 8 shows the city fired Anthony Northern for his “ineffective performance” and repeated disregard for city policies. Northern has been with the city since 2018, where he worked as an economic engagement specialist, comprehensive project manager and assistant director of business development, he said.
Caleb Bauer, executive director of the Office of Community Investment, fired Northern. In a termination letter obtained by the Tribune through a public records request, Bauer said Northern shared “pricing information for City contracts” with companies that were planning to bid on those contracts. It is claimed that
Bauer said Northern also failed to properly develop and administer a program called the Small Business Opportunity Fund for all South Bend residents and businesses. The program was designed to direct American Rescue Plan funds to small businesses through small grants and low-interest loans, Bauer told the Tribune.
Northern said in a written statement to the Tribune that he has never directed companies to bid on city contracts at specific prices. He said he spent months gathering potential minority contractors and helping them through the bidding process.
He said his vision has always been to build a more diverse business community with more people of color and women. He said he did this primarily through the Small Business Assistance Suite. The suite assists owners with budgeting and provides technical assistance.
What happened between the employee and the company?
The shared pricing accusation refers to a small project that installed rubber speed humps and signs on city streets. Because the contract is worth less than $50,000, Northern held informal negotiations with three black business owners last year to help make a bid to the city’s Public Works Commission.
Michael Schmidt, an attorney with the Public Utilities Commission, said under state law it’s normal for smaller contracts for urgent issues to have less bargaining.
But Bauer said by sharing pricing strategies, the city risks undermining fair competition among bidders.
“City employees generally should not discuss pricing strategies or budgetary information with someone who is actively competing for city contracts,” Bauer told the Tribune in general terms Wednesday.
Activists have raised concerns
Black Lives Matter South Bend held a press conference last week questioning Northern’s firing and criticizing the slow rollout of financial support from the Opportunity Fund. But the group defended Northern, blaming bias against black contractors in part for the delay in funding.
Among those upset is Kat Redding, a BLM organizer and owner of Legacy Consulting & Renovation, a small business involved in the bid.
Redding lamented that she and two other contractors were unable to win a bid despite following the city’s complicated procedures. The contractor paid for the necessary permits, and during the summer she also participated in the installation of two rubber speed humps. Redding said she believes they should be paid for their work.
Bauer said in a statement to the Tribune that the summer installation is a voluntary training session for companies interested in competing for contracts with the city. It was intended to provide hands-on experience and education regarding the city’s labor standards.
Bauer said bidders are not entitled to a city contract, even if it costs money to qualify. The Public Works Commission has the sole authority to award projects, and the company offering the lowest price often wins.
City performance on minority and women business spending
As a Black woman, Redding also drew attention to the city’s lackluster history of disbursing funds to minority- and women-owned businesses.
The 2021 ordinance updates the city’s Minority and Women’s Business Inclusion Program, separate from the Opportunity Fund. The program sets a goal for the city to purchase at least 6% of all goods, services and utilities from businesses owned primarily by people of color and women.
The city relied on a disparity study to establish the legal basis for the program. But Bauer said that under federal and state law, the city cannot direct money from the Opportunity Fund or other funds based on race, gender or other protected classes.
The city has not made appreciable progress in its MWBE program. In 2022, minority- and women-owned businesses were paid 4.5% of the city’s goods and services, according to city data. In 2018, the figure was 4.8%, but it reportedly dropped to 2.4% in 2021.
Northern said in a statement that he apologized to South Bend’s black and brown people, who have historically faced some of the city’s worst economic hardships.
“They (minority and women business owners) will have to endure long periods of economic hardship because I will not be able to work well with my colleagues in city government to work for them. I am truly sorry,” Northern wrote. “But I am grateful to them and my colleagues for leaning into this inclusion effort and building something transformative.”
South Bend Mayor James Mueller disputes the idea shared by Redding and Black Lives Matter organizers that the city continues to fail to include disadvantaged businesses in the bidding process Ta.
“We cannot guarantee a contract with any contractor,” Mueller said. “What we can do is work with these people and make sure they have opportunities.”
Bauer said the city will host a free training at the Technology Resource Center on Jan. 18 for businesses to explain the bidding process for city contracts.
Email South Bend Tribune city reporter Jordan Smith at JTsmith@gannett.com. Follow him on X: @jordantsmith09
[ad_2]
Source link
