Minority/Women Business Enterprise Ordinance Recommendations Business Development August 25, 2009

2 Increase Graduation Program Net Worth to $2.3M Would allow firms more opportunity to grow before reaching graduate status.Would allow firms more opportunity to grow before reaching graduate status. Provides M/WBE firms more time to mature & stabilize within our program.Provides M/WBE firms more time to mature & stabilize within our program. The $750K net worth was established in 1992 and is outdated.The $750K net worth was established in 1992 and is outdated.

3 Certify Large M/WBE Firms as Graduates Allows larger minority & women firms to receive certification Graduate firms are limited to larger projects within Professional services and Construction; however… Potentially allows for greater participation in the categories of “goods & commodities” and “other services”

4 Overall M/WBE Goals for Each Category Architect & Engineering Services ConstructionOther Services Goods and Commodities Current Overall Goal 24%25%24%10% Revised Overall Goal 27%25%27%10%

5 Increase Sliding Scale Limits Increase Sliding Scale Limits Contract Amount Previous (Oct. ’98 – Jan. ’02) Current (Jan. ’02 – Present) Proposed New Scale 0 - $100K7.5%08% $100K-$500K5%5.5%7% $500K-$750K3%5.5%6% $750K-$2M3%4%5% >$2M-<$5M3% 4% ($2-5M) >5M3%

6 GFE Recommendation Good Faith Effort - The efforts undertaken by a contractor to obtain minority/women-owned business enterprises participation in a contract, and shall include all the following: Notice – or fax : 7days –Scope of work –How to obtain plans & specs –Bonding information –Bid submittal deadline –24 hr notice for addenda Follow-up Documentation of any shortfalls in the M/WBE goals Documented BDD resource usage

7 GFE Recommendation The following may be substituted for any one of the aforementioned criteria: –Utilize the Disney Entrepreneur Center to host workshops that will inform M/WBE firms on how to better prepare for sub-contracting opportunities; or –Participation in Orange County sponsored “How to do Business” workshops or match maker events to become more familiar with certified M/WBE resources

8 MWBE Ordinance Recommendations Summary 1.Increase business networth to $2.3M 2.Certify firms as Graduate firms 3.Modify (improve) good faith effort criteria 4.Sliding scale correction 5.Modify the participation goals 6.Other minor changes