The council voted to give first reading to an omnibus ordinance that updates city code governing minority- and women-owned-business efforts and reauthorizes the Human Affairs and Racial Conciliation Commission (HARC). City staff and the mayor said the timing and language are driven by the need to remain eligible for federal grants; staff said failing to amend the code could jeopardize significant grant funding.

Several council members pressed for clarity on new language that references executive orders and certifications related to diversity, equity and inclusion (DEI). One council member said, “I have no idea, not a clue what a DEI program is,” and asked whether references to women, minorities or race automatically convert longstanding programs into DEI programs subject to federal restrictions. Staff responded that some federal grant terms appear to require grantees to certify they do not operate programs that would be considered to “advance or promote DEI,” that FEMA has not provided detailed guidance on what those terms mean, and that the administration wants to avoid exposure to False Claims Act liability and potential treble damages if a grant acceptance is later challenged.

Council took two procedural steps: members moved to defer detailed review to a special Community Development meeting so the public and staff could vet language, and then the council approved a first reading with the understanding the ordinance would be reviewed in committee. One council member recorded a formal nay on the procedural action and others said they were not yet comfortable with the language as written.

Why it matters: staff said the changes are necessary to preserve the city’s eligibility for federal grant funding (staff cited figures in the tens of millions for grants tied to affected programs). Council members said the stakes — both for grant funding and for longstanding equity programs — require clearer definitions and more public review.

What’s next: the ordinance will return to the Community Development committee for detailed review before second reading.