City of Virginia Beach Minority Business Council 2011 Annual Report October 25, 2011 Presented by Wanda Cooper, MBC Chair 1

P U R P O S E The MBC serves as an advisory agency to the City Manager and the City Council with respect to the City's procurement policies and procedures. 2

VISION To be “the leading influence in connecting contractor resources with City opportunities.” 3

MISSION “Advance and facilitate an environment of business opportunities, focusing on increasing expenditures to minority, woman and service disabled veteran-owned businesses by the City of Virginia Beach as a means to further the City’s economic development and vitality.” 4

SIGNIFICANT INITIATIVES…. which create opportunities Bonding Waiver Resolution Bonding has been a longtime issue with SWaM-certified firms Offers bonding relief for non-transportation construction projects under $500,000 Allows prequalification of prime contractors Provides relief to a perceived barrier for SWaM-certified firms Small Business Enhancement Ordinance Those contracts that utilize subcontractors must include at least 50% of the subcontracted work to DMBE-certified firms or display Good Faith Efforts Solicitations will be sent to all DMBE-certified SWaM firms within a 50 mile radius Pre-bid meetings will include an outreach listing to assist prime contractors with obtaining minority participation from DMBE-certified SWaM firms The MBC has recognized various barriers which may contribute to limiting the ability of small, woman, minority and service-disabled certified firms to obtain City contracts. In an effort to relief some of those barriers, the MBC brought forth legislation addressing (1) Bonding – resolution allows for the prequalification of firms based on the identified risks of the non-transportation construction projects and (2) Small Business Enhancement – an ordinance which focuses on the MBC’s continued efforts to obtain additional minority participation through City spending. It is the vision of the MBC that by implementing these two policies will aid in the continued effort to increase the participation of small, woman, minority and service-disabled firms and aid in their ability to obtain additional city contracts. 5

SIGNIFICANT INITIATIVES…. which create opportunities (continued) MBC Associate Program Allows interested business owners to become a part of the Council as an Associate Afforded preferential consideration in the event a permanent position becomes available on the Council 6

CONSTRUCTION ISSUES Minority subcontracting plans are not always followed Action Taken Contractor Performance Evaluation will now reflect if prime followed subcontractor Plan Small Business Enhancement Program adopted September 27, 2011 will require certified small businesses to be 50% of subcontracting (or reason why not) to be a responsive bid 9 Projects completed in FY11 - $4.9 M 3 of 9 self performed (1 minority prime) 6 of 9 used subs: 2 had plans to use minority subs, but used no minority subs 1 minority prime 3 had small minority participation Minority subcontracting $441,308 or 7.50% Minority participation overall $1.2M or 24.4% 9 projects completed totaling $4,866,435 6 utilized subcontractors - $3,767,861 ($491,087 OR 13.03% awarded to DMBE-certified firms) Blue Ridge General ($97,838 OR 19.59%) B & R Construction ($14,600 OR 3.43%) Sun Bay Contracting ($374,049 OR 98.69%) Pre-con Construction ($0 OR 0.00%) Power Mechanical ($4,600 OR 2.49%) A & W Contractors ($0 OR 0.00%) 3 self-performed - $1,098,574 Sun Bay Contracting ($804,000 – DMBE-certified minority small) Best Repair Company ($102,755 – DMBE-certified small) Four C Construction ($191,819 – DMBE-certified small) 7

PARTICIPATION RESULTS During the fiscal year there have been a number of contracts previously awarded to minority firms which have come to an end which resulted in a slight decrease in the overall participation of those and other minority firms with city procurements. It is the intent of the MBC that the implementation of the two ordinances related to Bonding and Small Business Enhancement, that the city will begin to realize a steady and consistent increase in the minority participation throughout FY12 and beyond.

PROGRESS & STAFF INITIATIVES The City has filled the vacant position of Minority Business Coordinator and hired an additional staff member to manage Title VI Civil Rights related to the Urban Construction Initiative. Active collaboration with the Department of Minority Business Enterprise (DMBE) office established within the City Hall building Working to incorporate the City’s commitment to minority participation earlier in the procurement process Development of project specific SWaM outreach listing to assist prime contractors with identifying and partnering with minority firms Presentation of the Mayor’s video which promotes minority participation Upcoming 16th Annual Expo & Conference “Connect & Grow Your Business” to take place November 3, 2011 at the Virginia Beach Conference Center The City has been taking great strides in promoting the use of SWaM firms and additionally provide guidance to their business growth and development. Keeping in stride with such, the City has filled the vacant position of Minority Business Coordinator and also added an additional staff member to assist with the development and implementation of the Title VI Civil Rights related to the City’s Unified Certification Initiative. Through the collaborative efforts of the Department of Minority Business Enterprise and the City; area small, woman, minority and service-disabled firms will be afforded the onsite assistance of DMBE staff with their certification process concerns. The DMBE office is located on the third floor of the City Hall Building and is maintained by Mr. Vincent Powell; who will be available every Monday and Wednesday between the hours of 9am and 4pm. 9

MINORITY BUSINESS COUNCIL City Council Liaisons Councilman Glenn Davis Councilman Bob Dyer School Board Liaison Dr. Esther Monclova-Johnson Members Wanda Cooper – Chair Linda Bright – Vice Chair Amma Guerrier – Financial Counselor Byron Williams, Sr. – Secretarial Officer Carla Bailey Ferdinand Perez Edwin Tirona Sheila Johnson John Williams Delceno Miles Justo Manglicmot 10