2 weeks Ago By Natalie Anderson
PORTSMOUTH — Among Gov. Glenn Youngkin’s vetoes this legislative session was a charter update request from Portsmouth to reflect the city’s ongoing efforts to remedy significant disparities in the number of contracts awarded to women- and minority-owned businesses.Despite the veto, which the Republican governor opposed because he said it allows the city manager to “engage in race- and sex-based decision making,” city officials say they are taking steps to improve business opportunities for minority- and women-owned business enterprises.
Portsmouth City Council requested the charter change this year following a 2022 study that determined Portsmouth awarded less than 10% of its procurement contracts to women- and minority-owned businesses. The study found of the $515 million the city spent on contracts between July 2016 and June 2021, minority-owned businesses received around 2% of that money while non-minority woman-owned businesses received about 6%. Only 1.
43% was spent with African American contractors in a city with a majority Black population.To address the disparity, the council sought a charter change to allow the city manager to collect data and take action to address disparities and discrimination in the city’s awarding of contracts to women- and minority-owned businesses. City charter changes in Virginia must be approved by the General Assembly.
City Attorney Lavonda Graham-Williams said the request to update the city charter was intended to give practices the city already follows more of a “foundational basis” by making it part of the charter.“What it does do is put in our charter what we already have in place not only in our city code, but also in our procurement statute, which allows the manager to suggest to council certain actions to be taken to remedy disparities,” she said at a January council meeting.The bill passed by the General Assembly stated the Portsmouth city manager could take action to remedy the disparities as a result of a compelling government interest, an analysis documenting statistically significant disparities or direct evidence by such businesses.
“(The) city manager is authorized and encouraged to require city departments to implement appropriate enhancement or remedial measures, including race-conscious remedies consistent with prevailing law, ordinances, and resolutions,” the bill states. “City departments shall submit annual progress reports on minority-owned business and women-owned business procurement to the city manager.”‘Democrats Del.
Cliff Hayes and Sen. Louise Lucas carried the House and Senate versions of the bill, respectively. The legislation had overwhelming support, with only three delegates and one senator ultimately voting against.
In his veto message, Youngkin said the bill poses “significant constitutional, legal, administrative, and economic challenges.”“Enforcing these remedial measures could expose the City to costly lawsuits for potential violations of state or federal laws, including equal protection clauses,” the veto message states. “Policies that prioritize race or gender over qualifications may discourage competition, reduce efficiency, and undermine the city’s economic growth by eroding confidence in a fair and merit-based process.
”A city spokesperson told The Virginian-Pilot that Youngkin’s veto doesn’t impact the efforts already underway, which includes the hiring of a minority/women business enterprise manager and the implementation of city policy.Once the policy is fully implemented, the manager would be responsible for designing programs and training staff and vendors.“Other than the recent hire of the new M/WBE Manager and possibly staff for that office, no other resources are anticipated.
With some modifications in procedures and configuration, we already have the systems in place to input, monitor, and report the data necessary to evaluate the policy’s effects once it is fully implemented,” spokesperson Peter Glagola said in an email to The Pilot.Language similar to the bill is already part of Portsmouth City Code, which has been updated to allow the city manager to take action to remedy disparities if they’re found or if there’s a compelling government interest to do so. City code states the city manager must establish a program to facilitate procurement practices of such firms, and that no additional barriers should prevent such businesses from participating and vying for city contracts.
For contracts of more than $10,000, the code also mandates contractors who wish to subcontract work must include in their proposals a plan to subcontract with women-owned and/or minority-owned businesses.Among the disparity study’s recommendations was the addition of an audit clause that requires subcontractor data. Graham-Williams previously told council members that audit clauses are being added to new and renewed contracts, including the contract with Rivers Casino Portsmouth.
The city’s Economic Development Department provides information about available programs and supportive services on its website, including how to obtain small, women-owned and minority-owned business certifications. Natalie Anderson, 757-732-1133, natalie.anderson@virginiamedia.
com.
