City of San Antonio Economic Development Department Presentation on Small Business Economic Development Advocacy SBEDA

1. 1 City of San AntonioEconomic Development DepartmentPresentation onSmall Business Economic Development Advocacy (SBEDA) Program2008

2. 2 Agenda Objectives SBEDA History Key Definitions SBEDA Goals, Certification & Point System SBEDA Forms SBEDA RFP/RFQ & Low Bid Process SBEDA Office How SBEDA Works FY 2006-2007 Total Contracting Dollars Success Stories Contact Information Questions & Answers

3. 3 SBEDA Objectives

4. 4 SBEDA Objectives A strategy to help local businesses grow Provides a remedy to remove disparity Promote utilization of minority & women-owned businesses through city contracting Use of public contracting to expand private sector participation for local businesses Grow local small businesses in non-traditional business categories Remove obstacles preventing small business from competing for City contracts Provide increased competition for City contracts

5. 5 History of City�s Small Business Program

6. 6 History 1983-1988--City establishes initial small business program through Equal Employment Opportunity Dept. 1987-S.A. Hispanic Chamber conducts study showing that less than 2% of City contracts are awarded to Small, Minority & Women-Owned Businesses 1988--Mayor Cisneros appoints Small Business Commission to evaluate local small business issues 1988--City Council adopts a small business ordinance resulting from a report containing 40 specific recommendations Entitled: �Small Business Development: Towards a Stronger San Antonio Economy�

7. 7 History (cont.) Key Features of the Ordinance: Establish Small Business Committee composed of citizens Advises the City Council and the City Manager on methods to improve effectiveness of the program Require all City prime contractors to submit Good Faith Effort Plan (GFEP) to include Small, Minority, Women-Owned Business Enterprises Provide resources for staffing of a Small Business Program within the Economic Development Department Establish contracting goals for small businesses in: Purchasing Construction Professional Services Leases & Concessions

8. 8 History (cont.) Provide preference points in professional/lease contracts for local small businesses Establish a performance tracking system Provide for the certification of Minority & Women-Owned Business Enterprises Where possible, �Break-Up� large contracts into smaller contract Promotes opportunities Hold City Staff accountable through performance measures

9. 9 History (cont.) January 1989--Croson vs. City of Richmond decision established the requirement of proving underutilization to determine goals for contracting Prohibits Race Based Set-Aside Programs Affirms Race Based Goals Program Must have a Disparity Study with corresponding Availability Analysis City Council directs staff to complete a Disparity Study to comply with the Supreme Court decision City Council supports the continuation of a Race Base Goals program under �voluntary-compliance� approach April 1989--City begins implementation M/WBE Contracting utilization increases from 2% to 15% Alamodome project is the first major public project that incorporates Small Business goals Aviation Department adopts Small Business Concessions program

10. 10 History (cont.) 1992 - City completes Disparity Study. Study conducted by National Economic Research Associates (NERA) Study shows that the city underutilized businesses owned by: Hispanics African-Americans (most severe disparity) Women Other Minorities Measures availability of business in San Antonio Metropolitan Area April 1993 - City Council adopts ordinance to implement findings and remedy underutilization

11. 11 History (cont.) 1995--Specific African American Business Enterprise (AABE) Goals established 1998--Centralized SMWBE certification established through creation of the South Central Texas Regional Certification Agency Founding Members Include: City of San Antonio San Antonio Water System City Public Service VIA Metropolitan Transit District San Antonio Housing Authority 2002-San Antonio City Council renews Small Business Contracting Ordinance

12. 12 History (cont.) On 11/30/06, City Council adopted SBEDA policy to: 1) began the coordination and implementation between other governmental agencies in updating the new Business Availability Disparity Study; and, 2) established selection criteria for federally funded Aviation Department contracts. On 4/12/07, SBEDA Ordinance amended for Alternative Construction Delivery Methods (ACDM): 1) criteria evaluates economic impact; and, 2) developed �Emerging Diversity� format to result in more meaningful development and utilization of small businesses with greater impact to local economy

13. 13 Key Definitions

14. 14 Key Definitions Local Business Enterprise (LBE) Headquartered in San Antonio Non-HQ must be within Bexar County (1-year) Branch offices qualify - at least 10 employees Minority Owned Business (MBE) Hispanic, African - American, Asian, Native-American and Disabled Must have 51% ownership Must be local

15. 15 Key Definitions (cont.) Woman-Owned Business Enterprise (WBE) Gender Based - regardless of Ethnic Status Must have 51% ownership Must be local African-American Business Enterprise Owned by African-American group member Must have 51% ownership Must be local

16. 16 Small Business (SBE) Tied to specific industry SBA size standard Architecture & Engineering (A&E): less $4,500,000 Annual revenue Construction: Less than $31,000,000 Minority & Women-Owned Enterprise (M/WBE) Combined�minority and non-minority women Must have at least 51% ownership Established to promote M/WBE principal ownership

17. 17 Historically Underutilized Enterprise (HUE) Local (LBE) Minority (MBE including AABE) Women (WBE) Small (SBE) HUE applies to discretionary contracts where preference points are applied Not to be confused with State of Texas HUB Certification.

18. 18 SBEDA Goals, Certification and Point System

19. 19 Contracting Categories & Goals FY 2005-2006 Construction Goal MBE 24% WBE 11% AABE 1.5% SBE 50% Procurement MBE 15% WBE 10% AABE 3% SBE 50% Prof. Services MBE 31% WBE 10% AABE 2.2% SBE 50% *Within 2.5% margin of business availability

20. 20 MBE-WBE-AABE Certification Required Work with EDD, Small Business Office to prioritize businesses that need assistance for certification Refer to �Communication Restrictions� SBEDA Firms must be certified through the South Central Texas Regional Certification Agency (SCTRCA) OR Approved by the City�s Director of Economic Development Proof of certification must be submitted with the proposal/bids www.sctrca.org

21. 21 Purpose of SBEDA Preference Points Designed to encourage non-local companies to sub-contract with local companies Local companies gain expertise $$ remain in local economy Provides incentive for non-local companies to open San Antonio Branch office Results in job creation and investment in S.A.

22. 22 Performance Standard Percentage Points Clarify Performance Standard Percentage Points -- 20% TOTAL SA Headquartered Business: 10% of the selection criteria points Non-Local Prime Contractors can receive points for using local businesses-proportional to amount of work performed by local subcontractors (i.e. 50% to local =5 points) Primes who have branch office will receive 6% of the selection points Historically Underutilized Enterprises (HUEs): 5% of the selection criteria points Primes who subcontract with HUEs can receive points proportional to amount of work performed by HUEs (i.e., 50% to HUEs = 2.5 points) S/MBEs and/or S/WBEs must be certified by SCTRCA or approved by Director of Economic Development to be considered HUEs. Small Business Program Compliance: 5% of the selection criteria points Submission/approval of List of Subcontractors/Suppliers or Good Faith Effort Plan 1% for meet/exceed MBE goal; 1% for meet/exceed WBE goal; 1% for meet/exceed AABE goal; 1% for meet/exceed SBE goal

23. 23 List of Subcontractors/Suppliers and Good Faith Effort Plan Proposals less than $200,000 in value shall include a List of Subcontractors/ Suppliers For proposals of $200,000 or more a Good Faith Effort Plan must be attached List of Subcontractors/Suppliers and Good Faith Effort Plan forms are attached to Ordinance #2007-04-12-0396 (www.sanantonio.gov/edd)

24. 24

25. 25 SBEDA Office

26. 26 How SBEDA Works Provides contractors with: Listing in S/M/AA/WBE directory and a computerized S/M/AA/WBE database which are used by prime contractors and City contracting officials. Bid Board listing of contracting opportunities from the City, State and other governmental agencies and prime contractors Construction Plans Review Room that displays specifications and plans for all City Public Works construction and other agency projects Assistance in completing forms required by the City�s SBEDA policy Monthly contracting bulletin The �Contracting Insider�, a quarterly newsletter providing valuable information on issues concerning small businesses and client success stories Identification of financial assistance programs

27. 27 FY 2006 � 2007TOTAL CONTRACTING DOLLARS $235,980,964

28. 28 Small Business Program Success Stories Purchasing Presto-Printing Commonwealth Computers TRC Computers Maldonado Nursery Professional Services Estrada-Hinojosa The Foster Group Debra Dockery-Architects C.C. Garcia-CPA Alamo Architects Services Alamo Travel Terra-Summa Communications Providence Real Estate Construction E.Z. Bel Construction San Antonio Constructors De La Garza Fence Lozano Trucking Leases & Concessions Catering By Nick All-Star Concessions Chelsea/Blimpies--W. Franklin Venice Art Terrazo RK Group

29. 29 Contact Information Melissa Aguillon, Manager City of San Antonio Economic Development Department Frost Bank Tower 100 W. Houston St., Suite 1900 210-207-3900 www.sanantonio.gov/edd

30. 30 Questions and Answers