VIRGINIA BEACH
Five months ago, a Minority Business Council officer questioned the city's commitment to spending more money on minority-owned firms.
The City Council gave a firm retort Tuesday, setting a 10 percent goal for minority participation in city contracts.
"This is not a set-aside," said Mayor Meyera Oberndorf. "It is an aspirational goal."
Prescott Sherrod, who chairs the Minority Business Council, acknowledged it is a symbolic gesture. He added that if it doesn't work, he and others will work on more ways to encourage additional spending on minority firms.
"It's a start, as opposed to not going anywhere," Sherrod said at Tuesday's council meeting.
The council action comes with no penalty for failure and no specific actions on how to achieve it.
In fiscal 2007, the city spent $224.3 million on contracts for goods, services and other items; $7.6 million, or 3.4 percent, went to minority-owned companies.
Patricia Phillips, the city's finance director, said Tuesday that through the first six months of fiscal 2008, the percentage is higher. Phillips will give the council an update on minority contracting soon.
The council's new goal would apply to all competitive city contracts, as well as to the individual categories of goods and services, construction, and architectural and engineering services.
"It gives us an endpoint to aim for," Councilman Ron Villanueva said.
Staff writer Deirdre Fernandes contributed to this report.
Richard Quinn, (757) 222-5119, richard.quinn@pilotonline.com
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