YOUNGSTOWN Panel: Fund minority program

Officials are seeking several hundred thousand dollars in funding.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The city's human relations commission wants council to fund a minority loan program as soon as possible.
If that doesn't happen, local minority and female companies won't get contracts for the $163.5 million school construction project, officials say.
William M. Carter, the commission's executive director, told members Tuesday there is little money to lend minority contractors so they can provide performance bonds.
The school district is awarding construction contracts now. Carter said minority companies could lose those contracts if they can't secure such bonds.
Carter said he's had no success finding stray money for the minority program in the city budget.
What's been discussed
City council members have talked in recent weeks about directing up to $600,000 to the program. Council hasn't made a decision on where that money might come from. Council's finance committee has a meeting tonight to review the recently approved 2003-04 budget for the city's federal money.
Council members have discussed redirecting federal money from other priorities, such as demolition, to the minority fund. They have also talked about redirecting park money.
The human relations commission, which oversees the minority program, unanimously agreed to request that council set aside some money. The resolution didn't specify how much.
Minority and female companies typically are small and have weak cash flow. They rely on the city for performance bonds, which must cover the entire value of a contract. The bonds guarantee a company's performance on the job. The company returns the money when the contract is complete, assuming there are no claims against it.
Minority contractors tend to get contracts ranging from $20,000 to $60,000, Carter said.
The fund has about $22,000 available.
Lack of funds
One minority company is in line for a $37,000 contract to do electrical work at Harding Elementary School. There isn't enough money to provide the performance bond, Carter said. The company could lose the contract, he said.
Carter has screened and qualified other companies for the minority program while awaiting the schools project. There is no money to help them if they do receive contracts, he said.
Al Curry, a human-relations member, said he has explained the quandary to a couple of city officials. Curry also is the school district's equal employment opportunity contract compliance officer.
The schools don't have money to lend for performance bonds, he said. The schools can't use construction money for such bonds either, Curry said.
rgsmith@vindy.com