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SEOPW-CRA-R-01-0062
0 4' ITEM 3G RESOLUTION NO. SEOPPW/CRA 01 " 62 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY (THE "CRA") AUTHORIZING THE CRA TO PROVIDE TECHNICAL AND FINANCIAL SUPPORT TO THE CONSTRUCTION MANAGEMENT INSTITUTE OF DADE COUNTY, INC., AS FOLLOWS: (A) FINANCIAL SUPPORT FOR THE FIRST YEAR, IN THE AMOUNT OF $90,000; AND (B) FINANCIAL SUPPORT FOR THE FIRST THREE YEARS TOTALING $168,000. WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency (the "CRA") is responsible for carrying out community redevelopment activities and projects in the Southeast Overtown/Park West Community Redevelopment Area established pursuant to the CRA Redevelopment Plan, and WHEREAS, CMI was established specifically to promote business development, administrative expertise and long-term financial stability for small and emerging construction - oriented business by means of hands on assistance through mentoring, partnering and educational advocacy; and WHEREAS, the CRA recommends that the Board of Directors authorize the Executive Director to assist The Construction Management Institute of Dade County, Inc. ("CMI") with its startup efforts; and WHEREAS, the CRA proposes to provide financial assistance to CMI in the amount of $90,000.00 in the first year, with projected total financial support in the amount of $168,000.00 over the first three (3) years. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to the Resolution are incorporated herein as if fully set forth in this Section. Section 2. The CRA Board of Directors authorizes the Executive Director to provide technical and financial support to The Construction Management Institute of Dade County, Inc., as follows: (a) financial support for the first year in the amount of $90,000; and (b) total financial support for the first three years in the amount of $168,000. • 0 ITEM 3G Section 3. This resolution shall be effective upon its adoption. PASSED AND ADOPTED t 's 21 ' day of May, 2001. Arthur E. Teele, Jr., Chairman APPROVED AND CORR9 Attorney Elm TheConstruction Management Institute ofDade County Florida A PROPOSAL Submitted to: City of Miami Community Redevelopment Agency Attention: Dipak M. Parekh Presented by: Arthur T. House April 23, 2001 SEOPW/CRA 01- 62 • E The Construction Management Institute of Dade County, Inc. CMz Table of Contents Executive Summary Introduction The Broad Problem Addressed Contributing Problems Top Ten Reasons Why Business Fail Immediate CMI Goals Long Range CMI Goals Implementation Steps Costs to Implement the Program Program Implementation Chart for Schedule of Tasks Advisory Services for Construction Firms Executive Director Credentials Testimonials Industry Papers, Lectures, Publications and Presentations Projected Annual Budget Spreadsheets 2001 - 2002 Projected Annual Budget Spreadsheets 2002 - 2003 Arthur T. House 3r. 5 Corrie Place Boynton Beach, Florida 33426 T # 561-375-9613 F # 561-641-8614 M # 561-339-1037 E # drathous0gate.net Web Site www.cminstitute.org 1 2 2 3 4 5 ri 7 A B C D E F [CA SE®PW/C]A 01- 62 The Construction Management Institute of Dade County, Inc. CMI Mission Statement CMI is a Construction Industry Consulting Firm,, established specifically to promote business development, administrative expertise and long-term financial stability for small and emerging construction - orientated businesses by means of hands-on assistance through Mentoring, Partnering and Educational Advocacy. CMI assists its Candidates in finding substantial work, gathering the necessary resources to accomplish that work and effecting meaningful economic chanqe in their businesses. Executive Summary The Construction Management Institute of Dade County, Inc. (CMI) was conceived as a construction industry Mentoring Incubator. CMI's primary purpose is to provide tangible, hands-on consultative and educational training in a structured professional* environment to disenfranchised and or otherwise disadvantaged construction orientated business candidates, struggling to compete, survive and or emerge in an - industry that has the second largest failure rate of business types in the United States. Each candidate must agree to be tenanted within our incubator, under a lease agreement, for a minimum period of eighteen months, in which time they will receive substantial streamlined training by expert industry professionals on site. Each candidate will receive a "Construction Management" certificate, Accredited by the State of Florida, covering all of the essential management disciplines necessary,for sustained growth. Candidates will attend bi-monthly classes and seminars on site. Each candidate will effectively utilize an affordable access to legal, financial, marketing, sales and business development services on site. Professional service providers along with secretarial services, as tenants of the incubator, will also be operational on site. Candidates must pay a regular monthly fee to CMI for the mandatory use and provision of these services. Successful candidates will be rotated through the system on a quarterly basis once they have completed their courses. This would offer a well -managed business and educational environment for CMI and each Candidate. During their incubation period, each candidate will pay a monthly fee of a negotiated percentage of all work they perform as a result of the assistance of CMI and it's agents. Once the candidate graduates from the incubator, he/she will be encouraged to join an Association of other graduated candidates, which will continue to provide them professional business development and entrepreneurial services. No other incubator provides all three components of success for its candidates. CMI finds work for its candidates, professionally trains them to manage their work effectively and efficiently, and provides the tools necessary for their profitability. CMI can be duplicated county by county in several forms of business structures. The incubator itself will be a Not -For -Profit entity, which houses For -Profit enterprises on site. The establishment of CMI in an economically challenged community will provide enormous opportunity for wide spread recognition that will lead to a development of extensive political capital in an era ripe for entrepreneurial outreach. ® Successful candidates will be encouraged to relocate their economically viable business operations to selected industrial complexes managed and or controlled by industry alliances. SEOPW/CMA ®i- 62 • Introduction: The objectives of this undertaking are embodied in the expected accomplishments in providing a significant and credible source of training and proactive business development pursuant to the establishment of a Construction Industry Incubator dedicated to the promotion of individual business development, administrative expertise and financial stability for various small and emerging construction - orientated businesses in Dade County, Florida. The Construction Management Institute of Dade County, Florida, hereinafter referred to as CMI, in cooperation with Florida International University, hereinafter referred to as FIU, will educate small business managers and owners in the means and methods of managing their companies for sustainable growth. CMI will house, in an in-house mentoring relationship, a minimum of twenty businesses, already active in Dade County. CMI will form training and consultative alliances with a minimum of twenty-four additional companies, in an out -of facility mentoring relationship. In-house candidates will be selected from applicants who demonstrate not only a strong desire to succeed, but they must demonstrate a measurable capacity to perform as well. Each candidate will be contractually engaged, for a period of not less than eighteen months, and no longer than twenty- four months, with CMI to participate in a structured educational agenda, along with an intensive hands-on mentoring relationship within the Institute. At the end of their relationship, each candidate and his/her company shall be awarded a "Certificate of .Achievement" in "Construction Management" from CMI. Additionally, each company will have undergone a positive and profitable_ transformation from a seat -of -the -pants management style to a structured business management environment. Candidates will receive regular and structured consultation services from Architects, Engineers, Attorneys, Marketing, Accountants and CPA's, to Project Management, Estimating, Field Supervision, and Safety Training. The methods and manner in which candidates run their businesses prior to entering the Institute will change. How they run them subsequent to their training will enhance their business career and their professional lives significantly. The Broad Problem to be Addressed: Approximately a half of a million companies start up each year in the United States. Unfortunately, within three years, four hundred thousand or eighty percent of • them have either failed outright, or are on the verge of failure within the next two years. The construction industry is one of the top three industries in the US economy SE®PW/C$A 01- 2 62 • and the second most likely industry to fail. The economy is brutal on construction firms in that they are the very first to suffer financial ruin in times of economic downturn while they are expected to immediately gear up to perform in times of prosperity. Construction business owners and their employees touch every facet of our economic life cycle. When construction booms, trucks are purchased, .homes are built, tools are bought by the truck load, lumber and household supplies are in demand, furniture sales increase and the economy gains momentum. When the pendulum swings in the other direction we have an economy that stops as equally fast as the run up. While leading business experts and business colleges agree, there are ten top reasons for most business failures (Table I), the construction industry can point to a fundamental cause of failure. A lack of managerial training is the primary cause of small business failure in the construction industry. The proliferation of the construction industry along managerial lines has mandated a level of sophistication and specialization that all too often focuses on technological training at the expense of managerial expertise. One could not make a successful argument of a lack of technical expertise inherent in our small businesses today; however, the managerial • skills required to sustain growth just do not exist in the majority of the ranks of construction businesses today. Managerial training resolves fundamental problems such as where the next project comes from, how to gather the necessary resources to perform to expectations, how to'plan for liquidity and financial stability, how to manage operations in an effective and efficient manner to ensure long-term growth, how to attract and retain qualified employees and provide them with wages and benefits appropriate to their merits in pursuing their trade. The primary objective of the Construction Management Institute is to integrate technological expertise with an appropriate curriculum of managerial training, delivered to Institute Candidates via a structured, hands-on consultative environment. The level of expertise available to Candidates in the Institute is so intensive and formidable that without the affordable structured training in the Institute, most candidates would not be able to obtain the type of assistance they need in order to make a meaningful change in their business career. Contributing Problems: The inability of small construction orientated firms to sustain their existence may be a result of systemic problems as well as individual shortcomings. SE0PW/CRA • Universities offer significant Construction Management programs geared to that particular segment of students primarily engaged in engineering and other fields of training that lead to project management positions in industry but not to executive management of the firm. Even in many undergraduate programs, that provide a construction management curriculum, there is a significant lack of intensive training in business management. Professional Construction Managers have streamlined their corporate structures and manage significant projects without the use of in-house employees, thus the responsibility for job site specific performance rests on specialty contractors and subcontractors who are uniquely trained in their craft but woefully inadequate in terms of business management. A phenomenon builds from this. The financial risk and exposure increases as project budgets increase at the same time that specialty firms are taking on larger projects with less formal training in management. The pace at which most sophisticated projects have to be completed contributes to a lack of available time for small business owners and managers to attend to managerial training. A dependence upon work generated from the traditional bid mill practices of • contract award leads to a mindset of cutting the price to the lowest dollar possible in order to be the lowest bidder. The lowest bidder does not always submit a price that includes a profit. More often than not, the lowest price is obtained by forgetting a crucial item in the bid package. An adversarial relationship results. The owner, or contracting authority has a different agenda than the specialty contractor. They on one hand want as much for their dollars as they can possibly garnish, while the specialty contractor tries to provide as little as possible so as to generate a reasonable profit. Top Ten Reasons Why Business Fail • No. Top Ten Reasons 1. Inadequate and Inaccurate Accounting Records 2. Disregarding or Misinterpreting Financial Records 3. The Lack of Cost Containment 4. Inviting Theft and Fraud from Poor Internal Controls 5. Fai- iqq to Attain Sales Objectives 6. The Lack of Sufficient Working Capital 7. Failure to Carry Sufficient and Appropriate Insurance 8. Inabili to Adequately Train and Develop Employees 9. The Lack of Strateclic Plannin 10. The Unavailability of Professional Assistance or Advice When essary Table I ((pp SEOPW/C1� 01- 62 4 Immediate CMI Goals: 1. Establish Board of Directors from Dade County. Selection process to include, Media, Finance, Insurance, Legal, Governmental, Business, Educational, Architectural and Engineering, Suppliers, and Construction Management experts and affiliates. 2. Subsequent to successful opening, enroll 15 - 20 Candidates for timely enrollment to facility for the first 18-month cycle. 3. Establish enrollment process that will ensure 5 - 10 new Candidate enrollments per fiscal quarter of each year. 4. Submit 24 class programs to the Department of Construction Professional Regulation for State Accreditation as Continuing Education Units, CEU's (90- day approval schedule). 5. Secure facilities for outfitting of mini -offices, administrative offices, and professional or conference classrooms (this is done within 30 days of confirmation of approval by CRA). 6. Obtain immediate bid status on municipal, commercial and residential projects in Dade County (this can be done immediately through FW Dodge, CMD, etc). 7. Develop process to ensure bid capture ratio for Candidates will generate in excess of $5 million in annual contracts for their companies in the first 12- month cycle of operation ($5 - 10 Million is a conservative capture rate target for months 4 thru 15). 8. Engage full-time estimator and project manager to work with Candidates (start 30 - 45 days from formal acceptance of program by CRA). • 9. Publish a monthly Magazine to spread the news about CMI Candidates and their accomplishments on behalf of their clients (July 1, 2001 is first publication date). 10. Join ABC, AGC, CMD, CASF, BOMA, and other Associations, which lead to construction opportunities for Candidates. This is an immediate task. 11. Establish network of newspaper Editors to do stories on the Institute. Get published at least 12 times in first 6 months of operation, in leading business magazines and local newspapers. 12. Develop and initiate speaking tour of all Chambers of Commerce, Business Groups, Civic Organizations and Trade Associations for the dissemination of information about the program. Goals to be Accomplished in First 18 Months: 1. Enroll 15 - 20 in house Candidates in the first year of operation. 2. Effect a meaningful, measurable change in profitability, sales, and managerial structure for each of those Candidates within 180 days of their enrollment, such as; a.) Increase sales by 20% b.) Reduce cost of sales by 10% c.) Increase profits by 15% d.) Establish financial tools in their businesses to track cash -flow e.) Open a credit line with two vendors, and obtain a bank line of credit in one year. f.) Establish and make operational a Web Site for each Candidate. g.) Reduce bad debt & collections by 50% or more. • 3. Enroll 20 out of house Candidates in the first year of operation. SEOPW/CRA ©1- 6? 4. Effect a meaningful, measurable change in profitability, sales, and managerial structure for each of those out side Candidates within 180 days of their enrollment, such as; a.) Increase sales by 20% b.) Reduce cost of sales by 10% c.) Increase profits by 15% d.) Establish financial tools in their businesses to track cash -flow e.) Open a credit line with two vendors, and obtain a bank line of credit in one year f.) Establish and make operational a Web Site for each Candidate. g.) Reduce bad debt & collections by 50% or more. 5. Engage in Educational Agreement with FIU within first 90 - 120 days. 6. Have signed, at least $5 million in contracts for Candidates 7. Between 12th month and 18th month, enroll 15 additional in house Candidates. 8. Between 12th month and 18th month, enroll 20 additional out of house Candidates. 9. Graduate first 6 - 10 Candidates in 18th month of operation 10. Have signed, an additional $2.5 million in contracts between 12th & 18th month for Candidates 11. Every Candidate will have completed 24 Construction Management Courses. 12. Every Candidate will have spent 48 hours with in house legal counsel regarding construction contracts and other legal matters. 13. Every Candidate will have completed 48 hours of in house counsel with Insurance experts to discuss Bonding, Worker's Compensation, Liability and all types of insurance requirements for the construction industry. 14. Every Candidate will have completed 48 hours of in house Accounting and CPA counsel in discussions about financial management of construction firms. 15. Every Candidate will have completed 48 hours with each a Project Manager, and an Estimator in preparing for project bidding and or project scheduling 16. Twenty new employee jobs will be established at the entry-level position from within the Candidate businesses. 17. The office of Administrative Services will be turned into a Sole Proprietorship or small S-Corp by the end of 18 months. A successful in- house Candidate will own the business. 18. A Strategic Alliance will be developed by and between CMI and a Construction Related Law Firm, Insurance Agency, CPA Firm, Lending Institution, Major Equipment Supplier, Major Vendors and Truck Dealers. 19. A Strategic Alliance will be established by and between CMI and all construction related Trade Associations operating in Dade County. 20. The groundwork for establishing a Construction Industry Credit Union Service, and a Legal Defense Fund will be set in motion between the 12th and 18th month of operation. Long Range CMI Goals: 1. From the fees generated by CMI operation - Form Legal Defense Fund and support a Law Student each year, for their subsequent participation in CMI • Candidate issues upon their Graduation. Student shall be selected from within Miami/Dade County and would probably be sought from within the ranks of candidates and or their family members. SEOPW/M 01- 62 6 • 2. From the fees generated by CMI operation - Form and or Joint Venture with a Credit Union to support the purchases of capital expense items such as tools, trucks and equipment necessary for sustained growth. 3. Transform the Institute to a Cooperative, whereby each Candidate can obtain significant economies of scale through buying alliances, industrial supplier and vendor alliances, and possibly own a fractional percentage of overall ownership in the parent entity. 4. Prepare for additional Candidate space at the 18-month time -line. 5. Through market research, develop businesses for Candidates„ by means of recognizing business needs, gathering the resources for the Candidate, and assisting them in starting and building their business. Examples would be that of starting an Administrative Business to provide executive suite services, a Trade Magazine for support of other Candidates, tool and equipment rental businesses, trucking services, and labor provider services. Implementation Steps: 1. Present Proposal to City of Miami, Community Redevelopment Agency and to - City Commissioner Johnny Winton by April 23, 2001 2. Seek approval or commentary by May 15, 2001 3. Pending approval - or modification for approval is required; start search for Board of Directors by May 7, 2001. 4. Start search for facility on May 15, 2001 after approval of CRA 5. Seek initial seed capital of $24,467on May 15, 2001 - expected by June 151n, 2001 6. Outfit administration office - install computer and telephone systems. 7. Advertise for, hire local individual - bilingual - to assist in complete administrative duties. 8. Have all CEU courses submitted to State by June 1, 2001, expect them to be approved by State by July 30, 2001 9. Simultaneously develop and print all collateral brochures, and all documentation required to run facility. 10. Have 5 in-house Candidates pre -enrolled by July 15, 2001 11. Prepare to occupy facility by July 5, 2001 12. Begin estimating training July 5, 2001 and project management training July 25, 2001 13. Secure potential projects for and with Candidates by August 15, 2001 14.Officially begin structured - perpetual enrollment process on July 30, 2001 The Costs to Implementation the Program: Projection for CMI for 2001 - 2002 begin on June 1, 2001 and run through May 31, 2002. CMI total revenue is expected to approximate $247,875 over the first twelve months of operation. The contribution to revenue from in-house and self produced operations are expected to be approximately 71% of revenue and the desired CRA contributions are estimated to be 29% of projected revenue for the first year. An immediate influx of CRA funding is required to fund several of the crucial start up costs and to prepare approximately 1,500 square feet of office space (within a space of 6,000 - 9,000 SF for future use). The CRA is expected to assist in finding adequate space for this venture. CMI would prefer a free rent status for the first six to twelve months to allow for fit up work to be completed and to give the Institute an isopportunity to build up a minimal reserve for continued operations. The first year CRA contribution is budgeted at $90,000 over twelve months. With the largest months contributions in the first two months, then tapering off throughout the year. 0.1- 62 SEOPwiORA ® (See: CMI Monthly Budget Spreadsheet) CMI will anticipate gradual declining CRA contributions to extend throughout the second and third years of operation. Any contributions provided will be minimal and shall not exceed $4,000 per month in the second year and $2,500 per month in the third year. A total CRA contribution of approximately $168,000 over three years is projected. The most significant expenses will be incurred in the first three months of operations. Those expenses include tenant fit -up (anticipating a facility in reasonably good condition), computer system development, course development and certification through the State of Florida. Development of all printed collateral materials and advertising pieces such as brochures, flyers, ads in newspapers and the like, will take place in the first two months. Essential to providing new work opportunities for Candidates, is obtaining that work, and once obtained, scheduling the resources to accomplish the work. To this purpose an estimator and project manager will be brought on line to initiate these important undertakings. These two salary items can be pushed into the second and or third month of operation. And, within three to four months shall approach self-sufficiency. is SEOPW/MA 01- 62 r-IJ Ah tT. z1: ID Task Name ril may June Jul August 04/15 104122 104/29 105106 05/13 05120 05/27 06103 06110 06117 06124 07/01 07/OS 07/15 07/22 07/29 08/05 08/12 08/19 108126 1 PRESENT PLAN TO CRA Approval Process Start Preliminary Search for Board of Dir. Start Preliminary Search for Facility Apply for Initial Funding Payment Anticipated Receipt CRA Payment Enter into Lease - Issue Deposit Prepare Course Applications to State Send Course Materials to State Course Materials Reviewed by State Advertise Courses----------------- Choose -Occupy Facility Schedule Utilities Select Phones & Computer System Select Office Furniture & Equipment Outfit Primary Administrative Offices Design Collateral Brochures Write News Releases Engage CMD, FW DODGE Engage ABC, AGC, CASF, BOMA, ICRI Develop Speaking Tour to Chambers etc 04123 ,,,..• ... 6/01 1 ------------- �`► ---- ............. .... _ .-,..... .............. ... .......... 2 3 4 5 6 7 8 9 10 11 12 14 15 16 17 18 19 20 21, Project: CMI2P Date: Sun 04/22/01 Task Split Progress Milestone -; ` Summary Rolled U Task °::.: _._..._..._....._�...- Rolled Up Split „ • ,.•,..•,. •,,,,.. Rolled Up Milestone O ° •: ::• ,., .•:.. Rolled Up Progress External Tasks = - '- - Project Summary r' Page 1 • C J ID i Task Name ril 04/15104/22 • Ma y 10 4/29 105106 105/13 105/20 105/2 7 106/ 3 June 1 �O 06117 06124 lul`�,, July A t 07i_01 07/08 107/15 07/22 07 /29 nRinn I nail 21 _68/1 9 10817 22 Develop Call Targets for Contributions Design Web Page(s) for CMI Miami Layout First CMI Magazine Print First CMI Magazine Distribute First Magazine Write Ad for Bilingual Admin Staff Place Local Ad for Staff Interview Staff Position Hire Admin Staff Write Ad for Estimator & PM Interview Estimator Hire Estimator Interview Project Manager Hire Project Manager Sign First 5 Candidates Courses Begin In -House Advisory Services Begin Professional Services Begin Mentoring Services Begin Proposals Begin to be Distributed initial Contracts Negotiated for Candidates 06115 77 06105 : .. . .......... 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 C-) NOD Project: CM12 Date: Sun 04/22/01 Task Split - Progress Milestone. Summary Rolled Up Task Rolled Up Split Rolled Up Milestone Rolled Up Progress External Tasks Project Summary r. Page 2 0 ADVISORY SERVICES FOR CONSTRUCTION FIRMS A Tremendous Resource An independent advisor can be a tremendous resource for any small or emerging construction business. Owners, committed to continuously developing their companies while maintaining active control, have supported outside advisors as sound managerial advice. For approximately what you would pay each day for a cup of coffee, Danish and a newspaper, you can obtain unlimited access to the best consulting and advisory services in the construction industry. What Is an Advisor or Outside Board Member? An advisor is an outside professional, serving in an informal capacity for the purpose of providing support and assistance to small or emerging businesses. An advisor can provide technical expertise and knowledge in key areas affecting business operations, industry issues, and financial performance. Among other advantages: an advisor can provide a sounding board to evaluate business ideas and opportunities; aid in developing a succession and ownership transition process; and provide counsel and support to company management while encouraging self-discipline and accountability. Advisor or Board Membership "Whom do I leave out?" is the first question many small and or emerging business owners ask when establishing an active outside advisory board. "How can I possibly include all the deserving candidates - my customers, suppliers, friends, banker, accountant lawyer, family "? Each small and or emerging business situation is unique; however, the best answer to this question is to leave them all out. Management team members working in the business should attend, present, and participate in meetings, but should not be members of an advisory board. Professional advisors such as your banker, attorney, and accountant are often trusted and useful sources of advice. These advisors are already working for you and may not be the right people to challenge you. However, some business owners have found it pays to make exceptions for advisors who are experienced, perceived as trusted and objective, and have is broad exposure to top executives in a wide range of businesses. Always take care that advisors do not dominate your board. Some of the best business advisors include academic professionals, people who hold other directorships or advisory board roles, professionals who are knowledgeable in your particular industry and its products or services, and other presidents, entrepreneurs, and business owners. Avoid choosing people because you might get along well with them. Compatibility is great, but objective debaters who can explore and discuss issues and ideas without alienating their fellow advisory board members or business owners are best. Advisory Structure We suggest including advisors who will press you to grow and help you be accountable, not just people who will make you feel comfortable. Meetings are usually held on a quarterly basis or more frequently if necessary. As a professional courtesy, an annual stipend is usually provided. In general, those who serve on business advisory boards do not perform this service based on financial need. Role of the Advisor or Board Member Items typically reviewed by an outside Advisor board include: the development of a strategic business development direction; the implementation of the company's strategic plan; succession and ownership transition plans; the procurement of significant funding and or an increase in bonding capacity; national business development activities; the evaluation of new business opportunities; annual capital and operating budgets; quarterly financial results compared to targets; management information systems; conducting an exclusive, confidential search to fill executive level positions; and employee or community relations. Advantages of an Advisor or Board Member The businesses we have had the privilege of serving have enjoyed several advantages of working with an Advisor. Our fresh, creative and unbiased perspective is one advantage. Advisory members offer 1-- 62 SEOPW/CR& objectivity, accountability, and assistance to business owners in clarifying their various roles. Sometimes, business owners cannot tell whether their thinking represents family, manager, or owner perspectives. IF Advisory members can help you see which "hat' you seem to be wearing on a given topic. Finally, advisors can bring affirmation and confidence, assure the promise of business continuity, and allow for open communication. Despite these advantages, we find that less than twenty percent of family firms have active, outside advisors. A Misconception Traditionally, advisors are usually thought of as a fancy governance system for a public company or an honorary relationship in a community organization — not as a resource for the private company or closely held family business. Unfortunately, many construction company owners do not realize they can easily afford significant outside, high caliber experience from objective and unbiased professional Advisors. We encourage you to consider engaging us as an Advisory source. Use the information provided on this page to help you determine if an advisory board is right for your business. Speak with other small and or emerging business owners who have created and developed these boards. The research in the family business field indicates that the presence of an active outside advisory member will contribute to your survival and growth. of- 02 r1 It ,DO INDUSTRY CREDENTIALS: 1992-2001 Executive Business Development & Project Management: Construction Management Institute Palm Beach County, Florida Executive Consulting and Advisory staff to Construction Businesses both Domestic and Abroad. Significant involvement in management decision making and program implementation. Project responsibilities included consultation services from initial concept development, preliminary estimating, contract negotiations and signing, vendor/subcontractor selection, permit acquisition, project management, requisitioning, to closeout. Extensive involvement during the Design/Engineering phase with Owners and Owners Reps. Spearheaded client Funding for projects, cash flow, capital equipment purchases, facilities expansion and other financing requirements. Projects include hi -rise condominiums, industrial facilities, hotels, retail centers and PUD projects. Multiple references available. 1989-1992 Executive Project Management/Owners Rep. Lempster Common Associates Inc. Lempster, NH Co-Designed/Developed Shopping Center. Site selection to lease -out and sale of project. Responsible for Planning & Zoning presentations. Obtained 100 % project financing. Project managed entire process, from site -work, pump -septic system, construction, to tenant fit -ups. Negotiated all leases, with primary Post Office tenant, grocery store, restaurant, FW Dodge Plan Center, and others. Played significant role in helping to start each business in center, and or obtain financing for tenants. Created 100 % occupancy. Simultaneously Project Managed projects in Condo, Apartment and Retail Construction Markets during this time frame. 1990-1992 Assistant Director of Construction Operations Associated Grocers of N.E. Manchester, NH Construction Management Overview. $220 MM Wholesale Grocery Cooperative and distribution firm. Involved in support operations from site selection to build -out. Extensive experience in store layout, design and fit -up. Convenience stores, gas stations, supermarkets, and restaurants. Territory: Five States, 280 locations. Responsibilities: site selection, design development, and construction overview & support services. Other duties: workers' compensation investigations, multi state recycling activity, transportation, construction, facilities maintenance, environmental issues, and super -fund fuel spill reclamation. This position was down -sized. Excellent written reference available. 1986-1990 Project Manager GCS Construction Managers Manchester, WH PM duties included finding work and managing the same. Responsible for signing work and managing it - PM Resume worth $ 30 million during this time frame. Extensive construction projects on Eastern Seaboard. Extensive knowledge of New England. Extensive project involvement in Condominium Construction, PUD, and Apartments. Additional project types included Retail, Professional, Strip Malls, Restaurants and Tenant fit -ups. Left this position to develop shopping center as owner's representative, and to take a position with Assoc. Grocers. Excellent written reference available. 01- 62 SEOPwiCRA 1983-1986 Project Manager (Also completed undergraduate degree full-time) Baybutt Construction Keene, NH Project Management responsibility for US Army Reserve Center, Post Office, Health Care Facility, Keene High School, other small projects (First time in State that a CM contract was issued on a school project and awarded before a bond issue.) Assisted in the Marketing focus to turn Baybutt into a Multi - State recognized premier School Contractor. This company was closely held by family and offered no opportunity to gain advancement. Excellent written reference available. 1978-1983 Project Manager American Patterson International Patterson, NJ Project Management duties focused on high -end architectural glazing and curtain -wall systems on high- rise commercial projects. Additional focus was on interior specialty glass rails and architectural metals. Projects included but are not limited to Rutgers University Library, Air France Terminal at Dulles, Giant Stadium, Meadowlands Racetrack, Trenton Federal Building, Multiple Retail Complexes, Hotels and Professional Buildings. Full cycle PM responsibility from design to completion. Other project in Connecticut and NE - Landmark Square, GTE, Conoco, UPS, Multiple Shopping Centers, National Liquor Distributors, McDonalds, Burger Kings, A&P, Sears, Radio Shacks, Milford Library, New Cannon Post Office, EDUCATION: MBA 1994 Magna-Cum-Laude. New Hampshire College. Graduate School of Business. BS Management 1985 Cum-Laude. Keene State College. DBA Management - Construction & Marketing NOVA Southeastern University 2001 (pending dissertation) SIGNIFICANT ACTIVITIES and ACCOMPLISHMENTS: * Average 4 — 6 profitable Contract Awards Annually — Mostly Negotiated. * Appointed Owners Rep for $ 37 Million + Construction Projects in Bahamas * Published & Lectured 200+ times on Construction Management Topics * Member of Multiple Chambers of Commerce, CRA and Business Development Boards. * Construction Management Adjunct Professor (Graduate Level) * Experienced in International Construction Management Projects * Extremely Computer Literate - From Desk -Top, 4-Color Magazine Publishing, Web Page Design * Extensive computer proficiency. Primavera, Project, CPM, Quest, Timberline, Excel, Word, etc. PROFESSIONAL MEMBERSHIPS & ASSOCIATIONS (Past & Present) * Charter Member Construction Business Development Assoc. (CBDA) * VP of Boynton Ocean District Association (BODA) * Chamber of Commerce (BBCC) * American Marketing Assoc. (AMA) & Academy of Management (AM) * United Subcontractors & Vendor Association (U-SAVE) * Associated Builders & Contractors (ABC) * V.P./Sec. International Concrete Restoration Institute (ICRI) * Assoc. Gen. Contractors of America (AGC) * State/Federal Injury & Illness Reporting Certificate. * Recipient of several Chamber of Commerce Awards. * Liberty Mutual Safety Certificate Award. * Co -Chair School Board Building Committee. * Job Hazard Analysis Certificate Award. Liberty Mutual. * Workers' Compensation Certificate Award. CIVIC, COMMUNITY INVOLVEMENT — HONORS & RECOGNITION * Rotarian of Year of 1995-1996. District Governor's Rep. 1996-1997 — President 95-96 94 * As Rotary President 95-96, Lead Club to Win Top 3 Honors in District of 53 Clubs SEOPW/CRA 01- 62 * Volunteer: Economics Teacher/Junior Achievement * Big Brother to three children for 14 years. ADJUNCT TEACHING * Florida International University, Davie, Florida. Construction Financing Graduate 1999 - 2000 Construction Economic Analysis 2000 Economic Planning forConstruction 2000 Emerging Technologies Graduate 1999 * Florida Atlantic University, Boca Raton, Florida. Project Management, Computer Information, Under -Grad, CEU, 1998-99 Arthur T. House 5 Corrie Place Boynton Beach, FL 33426 561-966-2820 drathous@gate.net I-] It Of- 62 SEOPW/CRA TESTIMONIAL & REFERENCES "Mr. House has always impressed me as a professional who is orientated toward contributing a high degree of proficiency, integrity, cooperation, and attention to detail in all of his undertakings. I have known him to manage all ... with great diligence and strict adherence to fiduciary accountability. His contract administration is exacting, fair and equitable. You will find him to possess a high level of energy aimed at providing competent service to his constituents." - Scott Patten, President GCS, Inc. Construction Managers Manchester, New Hampshire "During my many years in business, when I was either the CFO of a Fortune 500 company or the President of a successful Chicago bank, I have always been hesitant to write letters of recommendation. But, in the case of Mr. House, I am quite pleased and confident. Art has a unique ability not only to understand the technical aspects of a job but also the financial controls required to meet the budget. He is also one of the most energetic individuals I have ever met and he, therefore, creates an energetic environment all around him. This is contagious and it manifests itself in visible increases in productivity." If you are looking for a consultant, educator, or any other executive type person who, "requires honesty, energy, integrity, reliability, dependability, intelligence, construction experience, financial acumen, and just plain common sense, then look no further than Art House." - H. S. Brown, President Big Sky Enterprises, Inc. Jupiter FL "Art ... took over a $1 million project that was over budget and beyond schedule. As a result of his aggressiveness communication abilities, with all parties involved, he completed the project ahead of time and on budget. Art brought a great deal of energy to this firm and has been a motivational force in the field. I would say his most outstanding characteristics are his ability to assess situations rapidly and to perform in a highly professional manner with straightforwardness of character and honesty. I rate him as a superior [consultant] ... He has performed all of his duties with demonstrated skill and integrity. " - David R. Bolles Director of Marketing & Development Baybut Construction Corp., Keene, N.H. "Art House has provided us with exemplary consulting service. He has demonstrated his expert knowledge in the construction industry, and especially here in New Hampshire, where it was revealed that New Hampshire is his home state, and he is intuitively connected to many of those we do business with already. We have found Art to be a consultant who possesses a comprehensive background and wealth of experience in the construction industry - from Executive Management, Marketing & Business Development„ Finance and Human Resources to Estimating, Project Management and Project Costing. We recommend him most highly to any construction industry firm - especially here in New Hampshire." Paul Baillargeon, President Contract Openings, Inc., Londonderry, N.H. "Art has a deep-seated, sincere desire to help, to discover the root of the problem and seek a remedy for it. He's willing to go way beyond what many are willing to do. In the consulting business, reputation is stock in trade, and Art is most reliable. It's nice to come across someone who gives you more than you expect." - Harry Brown Gold Coast Real Estate School Boca Raton, Florida The work performed by Art House is very substantial and I am pleased with what he has provided me. He has spent considerable time on providing me with Excel spreadsheets and other tools to help SF,®J?W/CRA ®1- 62 • • me to manage my Cash Flow. I have found Art to be professional and very helpful. I would definately recommend him most highly to anyone in the construction trades. Troy Greenberg, President Greenberg's Custom Cabinets "Art negotiated a contract with our Architectural/Engineering firm, pursuant to his consultation responsibilities with the School Board for a new Grammar School. Art was instrumental in negotiating equitable fees for our services, and the actual cost of construction with the General Contractor. Art's consulting involvement resulted in a fast -tracked project, which finished four months ahead of schedule and $118,000 under budget. Art is sincere, dedicated and driven by a sense of fairness and an appreciation of the complexities of our difficult industry." - Kirk Wilkenson AIA Wilkenson & Associates, PA, Manchester, N.H. "We especially want to acknowledge the professional performance of Mr. House, whose energetic interest and performance was in our opinion, instrumental in securing the timely completion of this $ 8.2 million project." - Anthony Leketa, PE Army Corp. of Engineers - Dept. of the Army N. Y. District Area Office -- "In Art's capacity as the Executive Project Manager on several impressive concrete restoration projects in Florida and overseas, I have found his extensive background in heavy commercial construction to have given him the requisite credentials to run just about any project I could imagine. On all of the projects that I have worked on with him, I have found him to be highly skilled, sincere and dedicated to providing excellent, high quality service to not only his clients but, to all persons affiliated with the project at hand." - Richard Kurzman Double E Constructors Fort Lauderdale, Florida "Mr. House has assisted me, in many significant ways, on several major concrete restoration projects in Florida and abroad. He was specifically responsible for site inspections and pre -project planning which is required in the pre -bid documentation phase, and the subsequent prequalification and selection process of contractor analysis and contract execution. Art is extremely competent and very professional, and highly articulate. He has always impressed me with his willingness to give more of himself, than one would expect, not only to his clients but, to mine as well. If there was ever a man to assist you, or to consult with you, in [construction] and or executive project management, then Mr. House would be that person." - E. Al. Reppert, PE F! Cert. No 29993 Delray Beach, Florida "With over 50 locations in South Florida alone, Art's professionalism and quality workmanship has been a much needed relief for our company. We have been able to rely on Art and his endless list of prequalified subcontractors for extremely difficult, and often deadline oriented projects, many of which were multi -faceted and very detailed. Art has always come through for us, been wonderfully detailed, honest, fairly priced, and quick to respond to our most urgent needs. He has provided us with detailed estimates, which he has always lived up to, as well as providing us with a working budget to assist our company in providing the best services and most reasonable prices to our clients. I would recommend Art House to you for any and all construction, consulting, budgeting, and subcontracting needs, in all phases of your important projects." - Peter Mickley, Area Manager Central Parking Systems Miami, FL "Art's most outstanding characteristics are honesty, straightforwardness of character, and a sincere dedication to help others to attain their goals" - Ron Tourgee, Ph.D. Keene, N.H. D1M CRA 01. - 62 0 "Art directed us toward new ways to use our expertise. He gave us more information in 90 minutes than any ten consultants could provide in a month. He's enthusiastic, supportive and inspiring - and that's catching" - Margaret Runchey, President CS3 Consulting Jupiter, Florida "Cranmore Ridge Condominium PUD, took Art only 30 days to negotiate ... $ 4.1 million ... the biggest contract NBB had in 31 years." - Doing Business in Concord New Hampshire Business Review Manchester, New Hampshire "By restructuring our existing business structure, our Purchasing Policies, and our Debt Structure, as recommended by Art House, we will save, via cost reductions, $168,000 per year, which goes directly to the bottom -line. Art installed several significant Financial Reporting Systems for better interpretation of our financial condition in a timely fashion. He made recommendation to us to streamline our business into one Corporation. This ... will boost profitability through economies of scale, eliminate duplicate tasks, and give us financial tools for management decision -making. Art worked diligently to create a business plan for us to approach lending institutions for necessary long- term funding requirements for business growth. By implementing several cost -reduction recommendations, and modifying our labor rate structure, we will increase our total Gross Profit margins by 52% this year alone. Art has proven to be highly articulate and knowledgeable about matters that will help us implement meaningful change in our business operations, which will bring value to our business. We look forward to having Art House back to continue to work with us to achieve our goals." - Rob Heintzman, General Manager J.R.'s Specialist Shop, Inc., Louisville, KY "To say that'Art House' has been helpful to my business would be an understatement. His knowledge of the legal and technical side of sub -contracting has gone a long way toward giving me the insights in the field where my expertise is lacking. His consulting with me in reading and understanding of contracts and Lien Laws has given me confidence. As a small struggling company, having the services of Mr. House has been a much needed boost." - Mary Margaret Heaton, Owner A Concept in Carpet Pompano Beach, Florida "Art is a tremendous source of information and assistance as I've `grown' my construction consulting practice. His knowledge of and background in the construction industry are considerable. Furthermore, his natural inclination to approach every conversation as a consultant/educator results in clear explanations, doable strategies, and significant recommendations for improvement. I have personally solicited his advice on numerous occasions, and have observed him offering suggestions to others who have turned to him for help. He is a people person, has practical experience, has a no-nonsense bottom -line approach and knows what he's talking about: exactly the type of teacher I would have liked to have had as a student at the University of Florida Building Construction program. He lends credibility from an industry perspective, as many construction professionals are skeptical of "academics" who lack hands-on expertise. His unique combination of academic and technical credentials serve students, clients and administration well." - Margaret Runchey, President CS3 Consulting Services Palm Beach Gardens, Florida "Art House is a polished professional with a high degree of personal standards for performance and quality. His strong analytical and interpersonal skills enable him to be one of the most talented 10 decision -makers and creative problem solvers. He also has a strong sense of situation and is able to lead others as necessary. His prior business experience is and has been a significant asset. Art is motivated to succeed and is willing to pay the price in hard work to attain that success. I found him to 01- 62 • C] be of high moral fiber and believe he would be a valuable asset to any institution. He has the disposition and character commensurate with and expected of a professional." - Dr. Peter T. Di Paolo NOVA Southeastern University And President of Integrated Consultants International Plantation, Florida "Art is a true marketer. He finds not only new markets but new ways of penetrating old markets. He gets people back to work." - Steve Casey - Construction Consulting West Palm Beach, Florida "If Art says he'll find you work - you better start looking for manpower." - Tom Wilcox Wilcox Electric Newport, New Hampshire "Art told me he could find me $1 million in new site -work in one year. Well, $ 960,000 in three months was all I could handle." - Mike Parrott MWP Construction Keene, New Hampshire "Art called me with a complete business opportunity. He had the numbers worked out and the possibilities outlined. He helped me with the startup, and he's still helping me. A casual meeting turned into a good business opportunity for me." - William Bier, Wellington, Florida "Art is a gold mine." - Tom McGrevey TPM Consulting - Concord, N. H. "Meeting Art was the best thing that happened to my company in a long time. Art helped me find work immediately." - Bill Shields, President Classic Paint & Waterproofing Fort Lauderdale, Florida "Art provides good network contacts and several leads for jobs came from them. He ... gets things done." - Ken Grant, President Grant Builders Wellington, Florida "Art will find you plenty of work and get you paid." - Darrell Dodge, President Dodge Construction "Art impresses me as a person who is willing to invest his time and energy where ever he is needed. I have found him to be honest and forthright in any connection I have had with him." - Don Primrose, President Primrose Glass & Aluminum Keene, New Hampshire "Art introduced us to, and we signed, in excess of $ 3 million in new contract work in the last twelve months alone. He's off to a great start in fiscal 1999. If you or your company would like to find, SE®PW/CRA 01-- 62 • • negotiate, manage and complete serious construction work - you don't need to look further. Art outperformed all of my expectations." - Richard Kurzman Double E Constructors Fort Lauderdale, Florida "In my 25+ years in business few people ... have ever really made a very good impression on.me. However, a number of years ago I met Art House, who had a vision for making a difference in the property ,management, construction, and related affiliated idustries ... Well, talk is ... cheap so I took the wait and see approach. SURPRISE! SURPRISE! Some people actually attain what they set out to accomplish. Not only has Art accomplished what he set out to do ... but, he is setting new standards in connecting many affiliated professionals through ail means of communications. We at Integrity Services feel truly blessed to be a part of what Art and his organization are accomplishing for all of us." - Kenneth Mack President Integrity Services Painting & Waterproofing & Caulking, Inc. Jupiter, Florida "Art is great at 'business matchmaking' - he puts sources and resources together." - Allison Pruitt West Palm Beach, Florida "Thanks Art - I needed your help - and you were there. The world needs more like you." - Dan Buckless Tory Pines Golf Resort Jaffrey, New Hampshire "Art is extremely knowledgeable about the construction business. He provides concise and timely advice." - Steve Gastright, President Poly-Ti-Kote, Inc. Pompano Beach, Florida "Art helped me collect fees that were unfairly tied up ... he reviewed the contracts with me, researched the pertinent laws and gave me the armor and ammunition to collect the amount due. He is willing to share his knowledge in a most constructive way." - Mary Margaret Heaton A Concept in Carpet, Inc. Fort Lauderdale, Florida "Art's professionalism, knowledge, experience and good nature has made him an asset to our company and a pleasure to work with. We have enacted his recommendations and look forward to great results. When we need consulting services again, rest assured we will be calling Art House again." Andrew Bassi, President Mineral Masters Corporation, West Chicago, IL "Art completed the first phase of a project with us - and we are more than pleased. I was especially impressed with how fast and efficiently Art grasped our corporate culture - he was efficient, quick and extremely knowledgeable. I would like to share a comment made by my Finance Officer - "This was the best money we ever spent." Jodie Bernire, President ISE - Magtech, Houston, Texas • SEOPW/ORA 01 - 62 0 • PAPERS, LECTURES, PUBLICATIONS & PRESENTATIONS (Presented or written by Arthur T. House from 1990 to 2001) Publication Titles, Places of Presentation or Publication All Articles are available on request. * Evolution of Construction Management (P) (L) * A Life Cycle Perspective: The Life of a Construction Project (P) * The Construction Management Evolution: A Mature Approach to Sophisticated Projects (P) * Hire Education: Key To Success in Industry (P) (S) * Condo Associations Do Well to Study Competitive Bidding (HR) * Concrete Restoration: Basic Supply -and -Demand Economics (HR) * Yes You Can "CAP" Concrete Restoration Costs (P) (F) (W) * Construction Site Safety: A Competitive Advantage for Contractors (L) * Where the Affluent Meet the Effluent (HR) * Bid Awarding Systems: The System Works - The Methods Don't (P) (W) (F) * Strategic Marketing: Business Development Practices for the Firm (P) * Construction Industry Bid Methodology (P) (W) (F) * Marketing Opportunities: On -Line fir the Construction Industry (P) * Safety First: Do it Right (P) * Concrete Corrosion: Where the Affluent Meets the Effluent (P) (W) * Florida Construction Site Safety: It's Everyone's Responsibility (P) * Can't We Just Paint It? (P) * You May be Held Liable for Avoiding Repairs: Your Choice (P) * Forming Meaningful Strategic Alliances: Partners in Success (P) (F) ' Building Strategic Alliances with Construction Service Relationships (P) * Community Economic Development: Changes Silently Coming (P) * Partnering: The Responsible Construction Process (P) (F) * Contracting Through Competitive Bid Process (W) (P) * Continuing Education Crucial to Business Success (P) * Develop a Preventive Maintenance Program: A Wise Investment (P) * Relationship Marketing in the Construction Industry (P) * Construction Industry Market Orientation (P) * Predicting General Contractor Failure: A Statistical Approach (P) * Partnering: A Construction Methodology (P) (F) * Community Economic Development: Be Careful What You Wish For (P) * Only One King in Parking: An Executive Profile (P) * Keep The Lowest Bidder (P) * Cathodic Protection: An Alternative to Excessive Restoration Costs (P) (W) * Clear Skies Ahead: For Construction Management (P) * Negotiated Construction Management Agreements (P) * Expectancy Theory in Construction (P) (F) * Responsibility for Condominium Concrete Repairs (P) (F) * Financing Restoration Projects (P) * You Are Where You Live: Your Building Creates Your Image (P) * When Florida Shutters (P) * Concrete Restoration Opportunities Overseas: Be Careful (P) * Segmentation Marketing: Identify the Perfect Client Mix (P) * Work Force Development; Training the Right Staff for the Future (P) * Economic Realities of Concrete Restoration: (P) (W) * Strategic Planning for the Construction Firm (P) (W) * Escalating Commitment to Failed Course of Action (P) (W) * When to Keep the Lowest Bidder (P) (F) * Roofing Matters: Be Responsible (P) 01- 62 " General Contracting: Qualities to Look For (P) * Lowest Bidder: Sometimes the Apple - Sometimes the Worm (P) (F) " Hiring Rules ... Do Not Applyl (P) * Truth in Advertising (P) * Industry and Academic Partnerships (P) * Construction Management Education (P) • Spotlight on Excellence (L) " Lending To Condo Associations (P) * Elder malls: Sophisticated Shopping Experience for Elderly (P) * Women in Rotary, (R) * Ten Steps To Take When: Hiring an Engineering Firm (P) (F) * Experience Wins Contracts (P) * Marketing For Architectural & Engineering Firms (P) • Death, Taxes and Deterioration (P) * Relationship Marketing in Construction (P) (F) * Positioning the Retail Establishment (L) * Avoiding Chapter 11: Early Warning Signs (L) • Commitment -Trust: In the Service Sector (P) * Construction Loan Servicing: Banks Can Delegate the Risk (P) (L) " Global Opportunities: Mexico & The Construction Industry (L) , (P) * Construction Management Agreements Predicated on Commitment -Trust (P) * No One Buys Retail Anymore 1 (P) * Affirmative Action in Construction in Construction: Is It Moral? (P) (L) (S) * Developing a Sustainable Competitive Advantage (P) * Ethics and Management (L) (S) • Strategic Advances on the Internet: For the Construction Firm (P) (W) ' Public Agency Construction: Bottomless Pit For Taxpayer Money (P) (L) (R) " Developing a Quality Consulting Firm (S) * Break -Even Management (L) (S) * Shake -Out Good for Consumers (N) * Marketing Orientation (F) (P) " Design/Build Conflict of Values (B) * Licensing Laws For Contractors (P) * Public Relations: Methods to Show Your Strengths (P) (W) * The Art of Construction Management, (N) (B) ' Contractors Aim For Success (P) * What Property Managers Look For In Hiring Professionals? (P) * Super -Centers Vie For Position (P) " Benefits of Joining Trade Associations (N) • Mother Nature and Concrete Deterioration (P) • Marketing Your Construction Services (P) (W) (F) Property Management & Construction Review (P); Contractor Marketing Magazine (C); Rotary Matters, (R); New Hampshire Business Journal (N); Hi -Riser (HR); Academic (A); Public Speaking Engagements (S); Progressive Builder Magazine (M); New Hampshire Business Review (B); Seminars, Lectures, Presentation (L); Who's Who in South Florida Construction (W); Florida Construction Journal (F) SEOPW/CRA 01" 92 • Revenue 400 CRA 401 Leases 402 Course Booklets 403 In House Classes 404 Outside Classes 405 Mentoring 406 Professional Income 407 Fees From Sales 408 Consulting 409 Donations Returns & Allowances Total Revenues Cost of Revenues 410 Materials 411 Sundry Supplies 412 Shop Costs 413 Shop Labor Costs 414 Labor Costs Other Other Other Other Other Other Other Other 420 Travel & Subsistence 421 Sub -Contractors 422 Equipment Rentals 423 Bond Fees 424 General Excise Taxes 425 Other Direct Costs 426 Builder's Risk Insurance 427 Damage Claims 428 General Liability Other Other CMI Incubato 0 Monthly Budget Tot for 2002 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 100.00% 0.00% 5.00% 6.00% 7.00% 9.00% 10.00% 10.00% 10.00% 10.00% 11.00% 11.00% 11.00% 90,000 24,467 14,575 9,525 6,433 4,500 4,500 4,500 4,500 4,250 4,250 4,250 4,250 5,700 0 - 285 342 399 513 570 570 570 570 627 627 627 75 0 2 5 5 7 8 8 8 8 8 8 8 13,500 0 675 810 945 1,215 1,350 1,350 1,350 1,350 1,485 1,485 1,485 0 27,600 200 400 900 1,500 2,000 2,400 2,800 3,000 3,400 3,400 3,800 3,800 6,000 0 300 400 500 500 600 600 600 600 600 600 700 40,000 0 0 0 2,500 3,500 4,000 .4,500 5,000 5,000 5,000 5,000 5,500 40,000 500 750 1,000 1,750 2,500 3,000 3,500 4,000 5,000 6,000 6,000 6,000 25,000 0 0 1,500 2,000 2,000 2,500 2,500 2,500 2,800 2,800 3,200 3,200 0 247,875 25,167 16,987 14,482 16,032 16,735 18,928 20,328 21,528 22,978 24,170 24,970 25,570 Other SbUPW/CRA U_-- 62 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100.0% 0 90,000 5,700 75 13,500 0 27,600 6,000 40,0 40,0 25,000 0 247,875 0 0 0 0 0 0 0 0 0 C>� 0 0 0 0 0 0 0 0 0 0 0 0 • • • CMllncubator Monthly Budget Tot for 2002 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 100.00% 0.00% 5.00% 6.00% 7.00% 9.00% 10.00% 10.00% 10.00% 10.00% 11.00% 11.00% 11.00% 100.0% Other 0 0 0 Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Cost of Revenues Labor Burden Expenses (Direct Costs) Other 0 0 Other 0 0 Other 0 415 Labor Fringe Benefits 0 416 Workers Comp.lnsurance 0 0 417 FICA/Medicare Taxes 0 0 418 State Unemployment 0 0 419 Federal Unemployment 0 0 Other 0 0 Other 0 0 Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Labor Burden Expenses Total Cost of Revenues 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gross Profit 247,875 25,167 16,987 14,482 16,032 16,735 18,928 20,328 21,528 22,978 24,170 24,970 25,570 247,875 General and Administrative Expenses 0 0 0 0 2,500 500 Advertising 2,500 1,250 1,250 0 0 0 0 0 0 501 Course Development 2,400 1,200 1,200 0 0 0 0 0 0 0 0 0 0 2,400 • Tot for 2002 May-01 100.00% 0.00% 502 State Certification 600 200 503 Brochure Development 1,500 1,500 504 Computer System 2,500 1,500 505 Dues & Subscriptions 500 250 506 Membership in Trade Asso 1,000 250 507Insurance 1,100 1,100 508 Banking Expense 250 21 509 Office Supplies & Expense 500 42 510 Temp Office Staff 2,500 208 511 Promotional Expense 1,500 125 512 Office Repairs & Fit Up 11,250 6,000 513 Executive Director 50,000 4,167 514 Estimator Salary 30,000 2,500 515 Project Manager Salary 30,000 2,500 516 Administrative Salary 20,000 1,667 517 Travel Expense 500 42 518 Plans & Specifications 500 42 519 Utilities 5,000 417 520 Rent - Mortgage 9,000 750 521 Employee Goodwill 0 522 Profit Sharing Plan Expens 0 523 Employee Training 500 42 524 Property Maintenance 250 21 525 Real Property Taxes 0 530 Penalties 0 531 Trade Shows 1,000 83 533 FICA Taxes -Admin. 500 42 534 State Unemployment Tax - 500 42 535 Federal Unemployment Ta 1,000 83 556 Interest Expense Non Ded 0 557 Entertainment 50% Non-D 500 42 558 Non -Deductible General E 0 559 Gifts 0 560 Political Contributions 0 561 Non -Deductible Expenses 0 Other 0 Other 0 562 Mentoring Expenses 10,000 833 563 Legal & Professional 10,000 833 564 Financial MentorsEopw/ 10,000 833 CRA J1- 62 0 CMllncubator • Monthly Budget Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 5.00% 6.00% 7.00% 9.00% 10.00% 10.00% 10.00% 10.00% 11.00% 11.00% 11.00% 100.0% 400 0 0 0 0 0 0 0 0 0 0 600 1,500 1,000 0 0 0 0 0 0 0 0 0 0 2,500 250 0 0 0 0 0 0 0 0 0 0 500 250 250 250 0 0 0 0 0 0 0 0 1,000 0 0 0 0 0 0 0 0 0 0 0 1,100 21 21 21 21 21 21 21 21 21 21 21 252 42 42 42 42 42 42 42 42 42 42 42 504 208 208 208 208 208 208 208 208 208 208 208 2,40 125 125 125 125 125 125 125 125 125 125 125 1,5 5,250 0 0 0 0 0 0 0 0 0 0 11,250 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 50,004 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 2,500 2,500 2,500 2,500 2,500 2,500 .2,500 2,500 2,500 2,500 2,500 30,000 1,667 1,667 1.667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,004 42 42 42 42 42 42 42 42 42 42 42 504 42 42 42 42 42 42 42 42 42 42 42 504 417 417 417 417 417 417 417 417 417 417 417 5,004 750 750 750 750 750 750 750 750 750 750 750 9,000 0 0 42 42 42 42 42 42 42 42 42 42 42 504 21 21 21 21 21 21 21 21 21 21 21 252 0 0 83 83 83 83 83 83 83 83 83 83 83 9 42 42 42 42 42 42 42 42 42 42 42 5 42 42 42 42 42 42 42 42 42 42 42 504 83 83 83 83 83 83 83 83 83 83 83 996 0 42 42 42 42 42 42 42 42 42 42 42 504 0 0 0 0 0 0 833 833 833 833 833 833 833 833 833 833 833 9,996 833 833 833 833 833 833 833 833 833 833 833 9,996 833 833 833 833 833 833 833 833 833 833 833 9,996 CMI Incubaot • Monthly Budget Tot for 2002 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 100.00% 0.00% 5.00% 6.00% 7.00% 9.00% 10.00% 10.00% 10.00% 10.00% 11.00% 11.00% 11.00% 100.0% 565 Misc. Professional Expens 7,500 625 625 625 625 625 625 625 625 625 625 625 625 7,500 566 Concept Development Fee 5,000 5,000 0 0 0 0 0 0 0 0 0 0 0 5,000 Other 0 0 Other 0 0 Other 0 0 Other 0 0 Other 0 0 Other 0 0 Other 0 Total Gen and Administrati 219,850 34,210 25,560 16,210 16,210 15,960 15,960 15,960 15,960 15,960 15,960 15,960 15,960 219,10 Net Income from Operations 28,025 -9,043 -8,573 -1,728 -178 775 2,968 4,368 5,568 7,018 8,210 9,010 9,610 28,005 Other Income/Expenses 0 600 Other Income 0 0 601 Dividend Income 0 0 602 Legal Defense Fund Expen -4,204 -350 -350 -350 -350 -350 -350 -350 -350 -350 -350 -350 -350 -4,200 603 Credit Union Fund Expens -4,204 -350 -350 -350 -350 -350 -350 -350 -350 -350 -350 -350 -350 -4,200 604 Education Reinvestment -11,210 -934 -934 -934 -934 -934 -934 -934 -934 -934 -934 -934 -934 -11,208 605 Gain (Loss) Fixed Asst. Ds 0 0 606 Gain (Loss) Investment Sal 0 0 607 Federal Income Tax Refun 0 0 608 State Income Tax Refund 0 0 700 Federal Income Tax 0 0 701 State Income Tax 0 0 999 Suspense 0 Total Other Income/Expen -19,617 -1,634 -1,634 -1,634 -1,634 -1,634 -1,634 -1,634 -1,634 -1,634 -1,634 -1,634 -1.634 -19;60 0 Net Income 8,407 -10,677 -10,207 -3,362 -1,812 -859 1,334 2,734 3,934 5,384 6,576 7,376 7,976 8,397 W 1 0 • Revenue 400 CRA 401 Leases 402 Course Booklets 403 In House Classes 404 Outside Classes 405 Mentoring 406 Professional Income 407 Fees From Sales 408 Consulting 409 Donations Returns & Allowances Total Revenues Cost of Revenues 410 Materials 411 Sundry Supplies 412 Shop Costs 413 Shop Labor Costs 414 Labor Costs Other Other Other Other Other Other Other Other 420 Travel & Subsistence 421 Sub -Contractors 422 Equipment Rentals 423 Bond Fees 424 General Excise Taxes 425 Other Direct Costs 426 Builder's Risk Insurance 427 Damage Claims 428 General Liability Other Other S$ Other Tot for 2003 May-02 Jun-02 Jul-02 100.00% 8.33% 8.33% 8.33% 48,000 4,000 4,000 4,000 15,000 1,250 1,250 1,250 350 29 29 29 21,000 1,750 1,750 1,750 15,000 1,250 1,250 1,250 45,000 3,750 3,750 3,750 18,000 1,500 1,500 1,500 80,000 6,667 6,667 6,667 60,000 5,000 5,000 5,000 15,000 1,250 1,250 1,250 0 0 0 0 317,350 26,446 26,446 26,446 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 OPW/CRA 0 0 01- 62 CMI Incubator Monthly Budget Aug-02 Sep-02 Oct-02 8.33% 8.33% 8.33% 4,000 4,000 4,000 1,250 1,250 1,250 29 29 29 1,750 1,750 1,750 1,250 1,250 1,250 3,750 3,750 3,750 1,500 1,500 1,500 6,667 6,667 6,667 5,000 5,000 5,000 1,250 1,250 1,250 0 0 0 26,446 26,446 26,446 Nov-02 Dec-02 Jan-03 8.33% 8.33% 8.33% 4,000 4,000 4,000 1,250 1,250 1,250 29 29 29 1,750 1,750 1,750 1,250 1,250 1,250 3,750 3,750 3.750 1,500 1,500 1,500 6,667 6,667 6,667 5,000 5,000 5,000 1,250 1,250 1,250 0 0 0 26,446 26,446 26,446 • Feb-03 Mar-03 Apr-03 8.33% 8.33% 8.33% 4,000 4,000 4,000 1,250 1,250 1,250 29 29 29 1,750 1,750 1,750 1,250 1,250 1,250 3,750 3,750 3,750 1,500 1,500 1,500 6,667 6,667 6,667 5,000 5,000 5,000 1,250 1,250 1,250 0 0 0 26,446 26,446 26,446 100.0% 0 48,000 15,000 350 21,000 15,000 45,000 18,000 80,00� 60,00. 15,000 0 317,350 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CMllncubator Monthly Budget Tot for 2003 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 100.00% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 100.0% Other 0 0 Other 0 0 Total Cost of Revenues 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Labor Burden Expenses (Direct Costs) Other 0 Other 0 0 Other 0 0 415 Labor Fringe Benefits 0 416 Workers Comp. Insurance 0 417 FICA/Medicare Taxes 0 0 418 State Unemployment 0 0 419 Federal Unemployment 0 0 Other 0 0 Other 0 0 Other 0 0 Labor Burden Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Cost of Revenues 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gross Profit 317,350 26,446 26,446 26,446 26,446 26,446 26,446 26,446 26,446 26,446 26,446 26,446 26,446 317,350 General and Administrative Expenses 500 Advertising 2,500 208 208 208 208 208 208 208 208 208 208 208 208 2,500 501 Course Development 400 33 33 33 33 33 33 33 33 33 33 33 33 400 r • Tot for2003 May-02 Jun-02 100.00% 8.33% 8.33% 502 State Certification 250 21 21 503 Brochure Development 2,000 167 504 Computer System 1,000 1,500 1,000 505 Dues & Subscriptions 500 250 250 506 Membership in Trade Asso 1,000 250 250 507Insurance 1,100 1,100 0 508 Banking Expense 250 21 21 509 Office Supplies & Expense 750 63 63 510 Temp Office Staff 1,000 83 83 511 Promotional Expense 2,500 208 208 512 Office Repairs & Fit Up 3,750 313 5,250 513 Executive Director 60,000 5,000 5,000 514 Estimator Salary 40,000 3,333 3,333 515 Project Manager Salary 45,000 3,750 3,750 516 Administrative Salary 30,000 2,500 2,500 517 Travel Expense 500 42 42 518 Plans & Specifications 500 42 42 519 Utilities 5,000 417 417 520 Rent - Mortgage 9,000 750 750 521 Employee Goodwill 0 0 522 Profit Sharing Plan Expens 0 0 523 Employee Training 1,000 83 83 524 Property Maintenance 400 33 33 525 Real Property Taxes 0 0 530 Penalties 0 0 531 Trade Shows 2,000 167 167 533 FICA Taxes -Admin. 750 63 63 534 State Unemployment Tax - 750 63 63 535 Federal Unemployment Ta 1,500 125 125 556 Interest Expense Non Ded 0 0 557 Entertainment 50% Non-D 1,000 83 83 558 Non -Deductible General E 0 0 559 Gifts 0 0 560 Political Contributions 0 0 561 Non -Deductible Expenses 0 0 Other 0 0 Other 0 0 562 Mentoring Expenses 15,000 1,250 1,250 563 Legal & Profes Tonal a 6 2 15,000 1,250 1,250 1,250 564 Financial KQnJJrs 15,000 1,250 SEO,PW/CRA • • CMllncubator Monthly Budget Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 100.0% 21 21 21 21 21 21 21 21 21 21 250 167 0 0 0 0 0 0 0 0 0 0 2,500 0 0 0 0 0 0 0 0 0 0 500 250 250 0 0 0 0 0 0 0 0 1,000 0 0 0 0 0 0 0 0 0 0 1,100 21 21 21 21 21 21 21 21 21 21 252 63 63 63 63 63 63 63 63 63 63 756 83 83 83 83 83 83 83 83 83 83 10 208 208 208 208 208 208 208 208 208 208 2,4 0 0 0 0 0 0 0 0 0 0 5,563 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 39,996 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 45,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 42 42 42 42 42 42 42 42 42 42 504 42 42 42 42 42 42 42 42 42 42 504 417 417 417 417 417 417 417 417 417 417 5,004 750 750 750 750 750 750 750 750 750 750 9,000 0 0 83 83 83 83 83 83 83 83 83 83 996 33 33 33 33 33 33 33 33 33 33 396 0 0 167 167 167 167 167 167 167 167 167 167 2,0 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 756 125 125 125 125 125 125 125 125 125 125 1,500 0 83 83 83 83 83 83 83 83 83 83 996 0 0 0 0 0 0 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 1,250 1,250 1,250 1,250 1,250 1,250 1.250 1,250 1,250 1,250 15,000 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 • 565 Misc. Professional Expens 566 Concept Development Fee Other Other Other Other Other Other Other Total Gen and Administrati Net Income from Operations Other income/Expenses 600 Other Income 601 Dividend Income 602 Legal Defense Fund Expen 603 Credit Union Fund Expens 604 Education Reinvestment F 605 Gain (Loss) Fixed Asst. Ds 606 Gain (Loss) Investment Sal 607 Federal Income Tax Refun 608 State Income Tax Refund 700 Federal Income Tax 701 State Income Tax 999 Suspense Total Other Income/Expen Net Income CMI Incubato• • Monthly Budget Tot for 2003 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 100.00% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 100.0% 9,000 750 750 750 750 750 750 750 750 750 750 750 750 9,000 2,500 208 0 0 0 0 0 0 0 0 0 0 0 208 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 21,588 21,588 21,588 21,588 21,588 21,588 21,588 270,C 46 270,900 25,375 28,338 21,838 21,838 21,588 46,450 1,071 -1,893 4,607 4,607 4,857 4,857 4,857 4,857 4,857 4,857 4,857 4,857 47,252 0 0 0 0 0 6,968 -581 581 -581 -581 -581 -581 -581 -581 -581 -581 -581 -581 -6,972 -6,968 -581 -581 -581 -581 -581 -581 -581 -581 -581 -581 -581 581 6,972 -11,613 -968 -968 -968 -968 -968 -968 -968 -968 -968 -968 -968 -968 -11,616 0 0 0 0 0 0 0 0 0 0 0 0 0 -25,548 -2,130 -2,130 -2,130 -2,130 -2,130 -2,130 -2,130 -2,130 -2,130 -2,130 -2,130 -2,130 -25,E 0 20,903 -1,059 -4,023 2,477 2,477 2,727 2,727 2,727 2,727 2,727 2,727 2,727 2,727 21,692 CITY OF MIAMI, FLORIDA 41 ITEM 3G INTER -OFFICE MEMORANDUM TO Chairman Teele and DATE: May 21, 2001 FILE Members of the CRA Board SUBJECT: Resolution authorizing the CRA to provide Technical and Financial FROM: �� support to The Construction REFERENCESManagement Institute of Dade Dipak M. Parekh '� ENCLOSURES: County, Inc. Executive Director Resolution 0 RECOMMENDATION It is recommended that the Board of Directors of the Southeast Overtown/Park West Community Redevelopment Agency authorize the Executive Director to provide technical and financial assistance to The Construction Management Institute of Dade County, Inc. Financial support for the first year is recommended at $90,000, with projected total financial support for the first three years in the amount of $168,000. BACKGROUND The Construction Management Institute is a construction industry consulting firm, established specifically to promote business development, administrative expertise and long-term financial stability for small and emerging construction -orientated businesses by means of hands-on assistance through mentoring, partnering and educational advocacy. The Construction Management Institute assists its candidates in finding substantial work, gathering the necessary resources to accomplish that work and effecting meaningful economic change in their businesses. Funding Source: General Fund Account Number: 689004.550011.6.860 SEOP'W/ CRA ®162