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HomeMy WebLinkAboutRES 86-164 R E S O L U T I O N BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby, authorized to adopt the Minority Business Enterprise Program Policy Manual, a copy of which is attached hereto as Exhibit "A" . PASSED BY THE CITY COUNCIL of the City of Beaumont this the day ofQ,,�,,, 1986. - Mayor - DRAFT CI TY OF BE AUMO NT MINORITY BUSINESS ENTERPRISE PROGRAM POLICY MANUAL April, 1986 EXHIBIT "A" TABLE OF CONTENTS PAGE I. POLICY STATEMENT. . . . . . . . . . .. . . . . . . ... . . . . . . . . . . . . . . . .. . . . . . . .. 1 II. LIASION OFFICER. . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 III. SUPPORT STAFF. . . . . . . . . .. .. . . . .. . . . . . . . . . .. .. . . .. . . . . . . .. .. .. . . 6 IV. PROCUREMENTS TO INSURE EQUITABLE OPPORTUNITY TO COMPETE FOR CONTRACTS AND SUBCONTRACTS. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . g V. MBE DIRECTORY. . . . . . . . . . . .. .. . . . . . . . .. . .. . . . . . . . . . . . .. . . . . . . . . . g VI . MBE/ELIGIBILITY AND JOINT VENTURES INVOLVING MBEs. . . . . . . .. . .. . 9 VII. PERCENTAGE GOALS. . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. .. . . . . . . . . . . . . . 14 VIII. PROCEDURES TO REQUIRE THAT MBE'S BE IDENTIFIED BY NAME BY COMPETITORS FOR CONTRACTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 IX. SELECTION CRITERIA TO INSURE THAT PRIME CONTRACTS ARE AWARDED TO COMPETITORS THAT MEET MBE GOALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 X. MAINTENANCE OF RECORDS AND REPORTS. . .. . . . .. .. . . . . . .. . . . . . . . . . . 24 XI. POLICY CONCERNING LEASES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 XII. THIRD PARTY CHALLENGE PROCEDURES. . . . . . . ... . . . . .. . . . . . . . . . . . . . . 25 XIII. APPEALS OF DENIAL OF CERTIFICATION AS A MBE. . . . . . . . . . . . . . . . . . . 27 XIV. DECERTIFICATION PROCEDURE. . . . . . . . . . .. .. . . .. . .. . . . . . . . . . . . . . . . . 29 XV. MINORITY BUSINESS UTILIZATION COMMITMENT. . . . . . . . . . . . . . . . . . . . . . 30 Attachment l: Schedule A/MBE Certification Form. . . .. . . . . . . . .. A1.1 Attachment 2: Schedule B/MBE Joint Venture Eligibility Form. . A2.1 Attachment 3: Schedule C/Schedule of MBE Participation Form. . A3.1 Attachment 4: Minority Business Utilization Commitment/ A4.1 Contractural Services. . . . . . . . . . . . . . . . . . . . . . . . . . Attachment 5: Minority Business Utilization Commitment/ A5.1 Professional Services. . . . . .. . . . . . . . . . . . . . .. . . . . 0 �� CITY OF BEAUMONT MI NORI TY BUSINESS ENTERPRISE POLICY MANUAL I. POLICY STATEMENT It is the policy of the City of Beaumont to involve Minority-Owned Businesses (MBEs) to the fullest extent feasible in all phases of its procurement practices, and to provide them equal opportunities to compete for contracts for construction, provision of professional services, purchases of equipment and supplies, and provision of other services required by the City. To attain these policy objectives, the City of Beaumont has adopted this Policy Statement and the attached Minority Business Enterprise Program. Minority individuals means those individuals who are citizens of the United States (or lawfully admitted permanent residents) who are Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Asian-Indian Americans, women, or handicapped individuals. Women do not have to be part of a minority group to qualify. The following definitions are applicable to this policy. (a) "Asian-Indian Americans" which includes persons whose origins are from India, Pakistan, and Bangladesh. (b) "Asian-Pacific Americans" which includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U. S. Trust Territories of the Pacific, and the Northern Marianas. (c) "Black Americans" which includes persons having origins in any of the Black racial groups of Africa. (d) "City" when used herein shall mean the City of Beaumont, however when action is required or authorized by the City, it shall mean the Liaison Officer of the City. (e) "Handicapped individual" means any person who has a disability which substantially limits one or more major life activity, including but not limited to such functions as, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working. (f) "Hispanic Americans" which includes persons of Mexican, Puerto Rican, Central or South America, or other Spanish culture or origin, regardless of race. (g) "Liaison Officer" shall mean that person designated by the City Manager to administer the City of Beaumont's Minority Business Enterprise policy. (h) "Minority Business Enterprise (MBE), or "Minority Business" means a business in which (a) at least fifty-one percent is owned by minority members, or in the case of a corporation, at least fifty-one percent /e��/� 2 s of the stock is owned by minority members; and (b) the management and daily business operations are controlled by one or more such individuals. (i) "Native Americans" which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians. The City shall make a rebuttable presumption that certain groups are minorities as indicated in the definition. The City's judgement about whether an individual is in fact a member of one of the presumptive groups will be final. If an individual has not maintained identification with the group to the extent that he or she is commonly recognized as a group member, it is unlikely that he or she will in fact have suffered the social disadvantage which members of the group are presumed to have experienced. If an individual has not held himself or herself out to be a member of one of the groups, has not acted as a member of a community of minority persons, and would not be identified by persons in the population at large as belonging to the minority group, the individual should be required to demonstrate minority disadvantage on an individual basis. For example, an individual could demonstrate that he had a Chinese ancestor. However, this hypothetical person has never lived in a Chinese-American community, has held himself out to be caucasian for driver's license or other official record purposes, has not previously claimed to be a Chinese-American, and would not be perceived by others in either the Chinese-American community or non-minority community to be a Chinese-American (or any other sort of Asian-Pacific American) by virtue of his appearance, culture, language or associations. The City would not regard this individual to be an Asian-Pacific American. t , To the extent legally practicable, the City of Beaumont will insure that all contractors providing services, materials or supplies to the City provide employment opportunities to minorities equal to those provided all other groups or individuals. Such contractors will also be expected to take. positive steps toward the utilization of qualified MBEs to the maximum extent feasible, consistent with sound procurement principles and applicable law. The City will provide assistance, when requested, to MBEs by providing instructions on the preparation of bids in compliance with procurement policy, and fulfillment of general bid requirements. In addition, the City will provide information on job performance requirements, procurement opportunities and prerequisites for bidding on contracts and submitting proposals for services. The City will seek and will use its best efforts to insure that MBEs are informed of current and future procurement activities through newsletters, including minority newspapers and other minority organizations as well as through direct contact with minority entrepreneurs. As evidence of its intent to vigorously pursue the objective of this Minority Business Enterprise Program, the City Manager has designated the Affirmative Action Officer as the MBE Liaison Officer for the City of Beaumont's related projects, who will be assisted by specific employees from each of the City of Beaumont's Departments in administering and implementing the City's Minority Business Enterprise Program. The Liaison Officer reports directly to the City of Beaumont's City Manager who, in turn, reports directly to the Mayor and City Council. 4 The City Manager, upon notification to the City Council, may waive MBE policy requirements when, in his or her opinion, the project, services, or supplies are of a nature which is not anticipated to be practical for appropriate subcontracting opportunities. II. LIAISON OFFICER The duties of the Liaison Officer shall include, however, are not limited to, the following: A. Developing, managing, implementing, and evaluating the MBE program; B. Disseminating information on available business opportunities so that MBEs are provided an equitable opportunity to bid on City contracts and requests for services. C. Maintaining and updating a directory of minority business enterprises. D. Providing assistance to City departments in resolving specific problems related to implementation of the MBE program and achievement of stated goals. E. Advising prospective contractors and others on necessary steps to bring them into compliance with requirements regarding MBE participation. F. Attending pre-bid, pre-proposal, and pre-construction conferences to y explain MBE requirements and to respond to questions. G. Reviewing bid and service proposals prior to formal advertising to make sure that proper instructions are included regarding the City's MBE requirements. H. Reviewing bids after they have been opened to verify the degree of MBE participation and to assure that those firms listed have been properly certified based on established criteria. I . Maintaining accurate and up-to-date records demonstrating MBE efforts and accomplishments. J. Assisting in the arrangement of joint ventures between MBE and non MBE firms and between two or more MBE firms. K. Submitting all reports as required. III. SUPPORT STAFF The MBE Liaison Officer shall have inter-departmental assistance to perform duties. Each department head (or his/her appointed designee) will serve as the MBE Coordinators for their respective departments. The Departmental Coordinator will be, at a minimum, responsible for: A. Notifying the MBE Liaison Officer of all contracts for professional services, materials, supplies, or capital projects. 6 f B. Notifying the Liaison Officer of approved grant awards which may result in projects, services, supplies, etc. where MBE participation would be solicited. C. Evaluating approved projects for potential MBE participation. D. Involving the MBE Liaison Officer in the entire bid or proposal process, which includes, but is not limited to: 1. Notification in advance by appropriate department of consultant and/or construction contracts. 2. Providing the MBE Liaison Officer the opportunity to review bid requests and requests for proposals (RFP) prior to their formal advertisements to insure that the City's MBE requirements have been met. 3. Notifying the MBE Liaison Officer of the time and place for all pre—bid conferences if any, so that the MBE requirements can be explained and questions answered. 4. Assuring that the Liaison Officer has an opportunity to evaluate all bids and proposals received in an effort to assure the validity of the degree of MBE participation claimed. 7 IV. PROCUREMENTS TO INSURE EQUITABLE OPPORTUNITY TO COMPETE FOR CONTRACTS AND SUBCONTRACTS The City of Beaumont will develop and use affirmative action techniques to facilitate MBE participation in contracting activities. These techniques shall include, but are not limited to: A. Arranging solicitations, time for the presentation of bids or proposals, quantities, specifications, and delivery schedules so as to facilitate the participation of MBEs. B. Providing assistance to MBEs in overcoming barriers such as the inability to obtain bonding, financing, or technical assistance by working with outside agencies to provide these resources. C. Carrying out information and communications programs on contracting procedures and specific contracting opportunities in a timely manner. D. Holding pre-bid or pre-proposal conferences to explain the projects and encourage prime contractors to use MBEs as subcontractors, etc. E. Including the City's policy for MBE participation in the bid solicitations. V. MBE DIRECTORY The City's MBE Liaison Officer is responsible for maintaining a directory to facilitate identification of MBEs with capabilities relevant to general 1 contracting requirements and to particular bid solicitations. The directory is available to bidders to assist in their efforts to meet MBE participation requirements. VI. MBE ELIGIBILITY AND JOINT` VENTURES INVOLVING MBEs To insure that the MBE program only benefits firms owned and controlled by minority individuals, the City of Beaumont shall certify the eligibility of MBEs and joint ventures involving MBEs that are named by competitors by completing Schedule A and/or B (Attachments 1 & 2). The purpose of this Policy is to identify legitimate MBEs. Business organizations being complex, it is possible to employ suspected front organizations in their attempt to comply with these policies. Investigations may include, but not be limited to, an examination of such items as relationship to non—minorities, experience, education, stock ownership, salaries, employment agreements, decision making, technical assistance, etc. Investigations may include information obtained in cooperation with other certifying agencies. A. Determination of Ownership and Control The additional following standards shall be used in determining whether a firm is 51 percent owned by minority individuals, and whether one or more of the owners control the firm. Businesses aggrieved by the determination may appeal in accordance with procedures set forth in Section XIII of this policy. I. Bona fide minority group membership shall be established on the basis of the individual's claim that he or she is a member of a minority group and is so regarded by that particular minority community. However, the City is not required to accept this claim if it determines the claim to be invalid. 2. An eligible MBE shall be an independent business, and (a) The ownership and control by minority persons shall be real, substantial, continuing and shall go beyond the pro forma ownership of the firm as reflected in its ownership documents. (b) The minority owners shall enjoy the customary incidents of ownership and shall share in the risks and profits commensurate with their ownership interests, as demonstrated by an examination of the substance rather than form or arrangements. (c) Recognition of the business as a separate entity for tax or corporate purposes is not necessarily sufficient for recognition as a MBE. (d) In determining whether a potential MBE is an independent business, the City shall consider all relevant factors, including the date the business was established, the adequacy of its resources for the work of the contract, and the degree to which financial, equipment leasing, and other relationships with non-minority firms vary from industry practice. d ! 3. The minority owners shall also possess the power to direct or cause the direction of the management and policies of the firm and to make day-to-day as well as major decisions on matters of management, policy, and operations. The firm shall not be subject to any formal or informal restrictions which limit the customary discretion of the minority owners. There shall be no restrictions through, for example, by-law provisions, partnership agreements, or charter requirements for cumulative voting rights or otherwise that prevent the minority owners, without the cooperation or vote of any owner who is not a minority or a woman, from making a business decision of the firm. 4. If the non-minority owners of the firm or other non-minority employees are disproportionately responsible for the day-to-day operation of the firm, then the firm is not controlled by minority individuals and shall not be considered a MBE within the meaning of this program. Where the actual management of the firm is contracted out to individuals other than the owner, those persons who have the ultimate power to hire and fire the managers can, for the purpose of this part, be considered as controlling the business. 5. All securities which constitute ownership and/or control of a corporation for purposes of establishing it as a MBE shall be held directly by minority persons. No securities held in trust, or by any guardian for a minor, shall be considered as held by a minority individual in determining the ownership or control of a corporation. S q 6. The contributions of capital or expertise by the minority owners to acquire their interests in the firm shall be real and substantial. Examples of insufficient contributions include a promise to contribute capital, a note payable to the firm or its owners who are not minorities, or the mere participation as an employee, rather than as a manager. B. In addition to the above standard, the City shall give special attention to the following circumstances in determining eligibility under this program: 1. Newly formed firms, and firms whose ownership and/or control has changed since the date of the advertisement of the contract, are closely scrutinized to determine the reasons for the timing of the formation of, or change in, the firm. 2. A previous and/or continuing employer-employee relationship between or among present owners is carefully reviewed to ensure that the employee-owner has management responsibilities and capabilities discussed in this section. 3. Any relationship between a MBE and a business which is not a MBE which has an interest in the MBE is carefully reviewed to determine if the interest of the non-MBE conflicts with the ownership and control requirements of this program. 12 C. A joint venture is eligible under this program if the MBE partner of the joint venture meets the standards for an eligible MBE set forth above, and the MBE partner is responsible for a clearly defined portion of the work to be performed and shares in the ownership, control, management responsibilities, risks, and profits of the joint venture. D. A business wishing to be certified as a MBE or joint venture MBE by the City, shall cooperate with the City by supplying additional information which may be requested in order to make a determination. E. Once certified, a MBE shall update its submission annually by submitting a new Schedule A or certifying that the Schedule A on file is still accurate. If at any time there is a change in ownership or control of the firm, the firm shall submit a new Schedule A. F. The denial of a certification by the City of Beaumont shall be final for that contract and other contracts being let by the City at the time of the denial or certification. MBEs and joint ventures denied certification may correct deficiencies in their ownership and control and apply for certification only for future contracts. G. The City shall safeguard from disclosure to unauthorized persons information that reasonably may be regarded as confidential business information, consistent with Federal, state and local law. H. The City shall require prime contractors to make good faith efforts to replace a MBE contractor that is unable to perform successfully with another MBE. The City shall reserve the right to approve all substitutions of subcontractors before bid opening and during contract performance, in order to insure that the substitute firms are eligible MBEs. VII. PERCENTAGE GOALS A. Overall Goals The overall goals for the City of Beaumont's MBE program are ten percent (10%) for construction contracts exceeding $50,000 and twenty percent (20%) for professional services exceeding $25,000. These goals shall not constitute a fixed quota. The following factors were considered in arriving at these goals: 1. The number and types of contracts to be awarded by the City during its fiscal year. 2. The number and types of MBEs that have been identified by the City. 3. The number and types of MBEs likely to be available to compete for contracts during the funding period. 4. The past efforts of the City to contract with MBEs. The overall goals shall be reviewed on an annual basis. The review process shall analyze projected versus actual MBE participation during the previous fiscal year. Whatever revisions are considered 14 necessary, shall be made and submitted to the Mayor and City Council for approval. B. Counting Participation Toward Meeting MBE Goals MBE participation shall be counted toward meeting goals set in accordance with the City of Beaumont's program as follows: 1. Once a firm is determined to be an eligible MBE in accordance with the provisions specified in this program, the total dollar value of the contract awarded is counted toward the applicable goal. 2. The City or a contractor will count toward its goals only expenditures to MBEs that perform a commercially useful function in the work of a contract. A MBE is considered to perform a commercially useful function when it is responsible for execution of a distinct element of the work of a contract and carrying out its responsibilities by actually performing, managing, and supervising the work involved. To determine whether a MBE is performing a commercially useful function, the City or a contractor shall evaluate the amount of work subcontracted, industry practices, and other relevant factors. 3. Consistent with normal industry practices, a MBE may enter into subcontracts. If a MBE contractor subcontracts a significantly greater portion of the work of the contract than would be expected on the basis of normal industry practices, the MBE shall be presumed not to be performing a commercially useful function. The MBE may present evidence to rebut this presumption to the City. p��X� 15 The City's decision on the rebuttal of this presumption is final, subject to review by the City Council. 4. The City or a contractor may count toward its MBE goals expenditures for materials and supplies obtained from MBE suppliers and manufacturers provided that the MBEs assume the actual and contractual responsibility for the provision of the materials and supplies. The City or a contractor may count its entire expenditure to a MBE manufacturer (i.e. , a supplier that produces goods from raw materials or substantially alters them before resale). The City will count 20 percent of its expenditures to MBE suppliers that are not manufacturers, provided that such suppliers perform a commercially useful function in the supply process. C. Contract Goals Contract goals will be set on specific projects which the bidder/proposer must meet or exceed or demonstrate that it could not meet despite its best efforts. The goals will be set based on the anticipated availability of qualified MBEs. As outlined in Section VII of this program, for contracts for professional services exceeding $25,000 the City has established a goal of 20% participation for Minority Business Enterprises. With construction contracts exceeding $50,000, the City has established a goal of 10% participation for Minority Business Enterprises. D. The City of Beaumont will use the following priorities: 16 1. The City of Beaumont will take every step to use a qualified minority business for contractual and professional services when available. 2. If a minority business cannot be utilized, then a majority business who subcontracts with a minority firm for a percentage of the contract will be given priority. For the purpose of improving the chance of entrepreneurship of minority persons, the City of Beaumont will allow a minority person to be employed by a non-minority and still be utilized as a minority professional service or contractor. All rights of subcontracting will be observed between such a union as long as the following regulations are observed. (a) A bona fide agreement is drawn up and signed, subcontracting a portion of the work to the MBE. (b) The percentage amount and dollar value is presented before the contract is awarded. (c) The most feasible bidder/proposer agrees to provide, within six days of notification by the City that it is the most feasible bidder/proposer, a list of specific minority businesses it anticipates utilizing, the purpose for which each minority business enterprise will be utilized, and the dollar amount to be expended for each minority business enterprise. The City will request information from the next feasible bidder/proposer. (d) If awarded a contract, the bidder/proposer further agrees to furnish a report listing minority business utilization and the dollar amount expended for each service or subcontract upon request by the City of Beaumont. (e) If it appears during the course of the project that less than the agreed MBE percentage will be expended to minority businesses, the agreement may be suspended, terminated, or the City may exercise any other remedies which it may have as a result of breach of the agreement. This provision shall not apply, however, provided the bidder/proposer can demonstrate to the City's satisfaction that; (1) the expenditure shortfall is not the fault of the bidder/proposer, or (2) the bidder/proposer will make up the shortfall during the balance of the contract period. 3. If a minority business contractor or professional service cannot be utilized and the majority bidder/proposer cannot subcontract with a minority firm, a majority firm having an Affirmative Action Plan and furnishing such plan to the City will be given next priority. 4. If the steps above do not result in any minority participation or use of a firm with an Affirmative Action Plan, the City Manager may approve the use of a majority business which will provide an ,�� —�� 18 Affirmative Action Plan within six months after contract award or provide a development plan to meet the City's goals. 5. The City will institute a program to certify minority businesses who meet the criteria of this policy. The program will verify the minority status of the proposers, contractors, and subcontractors selected under the policy and will assist new minority businesses in obtaining certification. The City Manager of the City of Beaumont (and/or his designee) will be responsible for administering these policies. A list of local minority business enterprises will be maintained at the office of the City Manager and the City Clerk and shall be available to all persons desiring such information. This list shall not be considered the sole source of identification of potential minority business enterprises. E. Geographic Area The City of Beaumont and contractors shall seek local MBEs. If the goals cannot be met by using MBEs from this geographic area, the City and contractors shall expand the search to a reasonable wider area. VIII. PROCEDURES TO REQUIRE THAT MBEs BE IDENTIFIED BY NAME BY COMPETITORS FOR CONTRACTS In solicitation for City contracts that provide opportunities for MBE participation, the City shall indicate its goals for the use of firms owned and controlled by minority persons. 19 A. All bidders/proposers will be required to submit a written assurance of meeting the goals in their bids or proposals by completing the applicable Minority Business Utilization commitment (Attachments 4 & 5). B. Within a reasonable period of time after the opening of bids, and before the award of the contract, the City shall require all bidders wishing to remain in competition for the contract to submit Schedule C (Attachment 3) which provides: 1. The names and addresses of MBE subcontractors; 2. A description of the work each is to perform; and 3. The dollar value of each proposed MBE subcontract. C. The time allowed for submission of Schedule C will be set for individual contracts and may vary, depending on circumstances. D. Agreements between a bidder/proposer and a MBE in which the MBE promises not to provide subcontracting quotations to other bidders/proposers are prohibited. IX. SELECTION CRITERIA TO INSURE THAT PRIME CONTRACTS ARE AWARDED TO COMPETITORS THAT MEET MBE GOALS To insure that prime contracts are awarded to competitors who meet MBE goals, the following selection criteria is outlined: 20 A. If any competitor offering a reasonable price meets the MBE contract goal, the City shall presume that all competitors that failed to meet the goal have failed to exert sufficient reasonable efforts, and consequently are ineligible to be awarded the contract. B. To implement this presumption, the City shall determine whether the competitor offering the lowest price of firms meeting the MBE contract goal has offered a reasonable price for the contract. 1. If it is determined that this competitor has offered a reasonable price, the City shall award the contract to the firm. 2. If the City determines that such competitors' prices are not reasonable, it shall consider the next price offered by the competitor with the highest percentage of MBE participation of those firms that failed to meet the goal. If the City determines that this price is reasonable, it shall award the contract to this competitor. 3. If it is determined that this price is not reasonable, the City shall consider the other competitors that failed to meet the goal in order of their percentage of MBE participation until it selects one with a reasonable price. 4. If it is determined that no competitor with MBE participation has offered a reasonable price, the City may award the contract to any competitor that demonstrates that it has made sufficient reasonable efforts to meet the MB contract goal. 21 ® C. To decide whether a price offered by a competitor is reasonable, the l City shall use the same criteria that it would use to determine whether, if the competitor had made the only offer to perform the contract, the City would award the contract. D. To demonstrate sufficient reasonable efforts to meet the MBE contract -goal, a contractor shall document the steps it has taken to obtain MBE participation, including, but not limited to, the following: 1. Attendance at a pre-bid conference, if any, scheduled by the City to inform MBEs of subcontracting opportunities under a given solicitation. 2. Advertisement in general circulation media, trade association publications, and minority-focus media at least 20 days before bids or proposals are due. If 20 days are not available, publication for a shorter reasonable time is acceptable. 3. Written notification to MBEs that their interest in the contract is solicited. 4. Efforts made to select portions of the work proposed to be performed by MBEs in order to increase the likelihood of achieving the stated goal. 5. Efforts to negotiate with MBEs for specific sub-bids including at minimum: (a) The names, addresses, and telephone numbers of MBEs that were 22 D contacted; (b) A description of the information provided to MBEs regarding the plans and specifications for portions of the work to be performed, and (c) A statement of why additional agreements with MBEs were not reached. 6. Concerning each MBE, the competitor contacted but rejected as f unqualified, and the reasons for the competitor's conclusion; g 14 7. Efforts made to assist the MBEs contacted that need assistance in obtaining bonding or insurance required by the competitor or City. E. Competitors that fail to meet MBE goals and fail to demonstrate sufficient reasonable efforts shall not be eligible to be awarded the contract. F. To insure that all obligations under contracts awarded to MBEs are met, the City shall review the contractor's MBE involvement efforts during the performance of the contract. The contractor shall bring to the attention of the City of Beaumont, any situation in which regularly scheduled progress payments are not made to MBE contractors. G. In the case of a proposal for professional services in which legal or ethical considerations prohibit specific dollar amounts to be provided 23 with proposals, MBE utilization shall be considered in the normal selection and negotiation process for such services. The City shall consider MBE efforts on an individual basis. X. MAINTENANCE OF RECORDS AND REPORTS A. ,In order to monitor the progress of its MBE program, the City shall maintain a record keeping system which will identify and assess MBE contract awards, prime contractors' progress in achieving MBE subcontract goals and other MBE affirmative action efforts. B. Specifically, the City shall maintain records showing: 1. Procedures which have been adopted to comply with the requirements of this program. 2. Awards to MBEs. These awards shall be measured against projected awards and/or goals. To assist in this effort, the City shall obtain regular reports from prime contractors on their progress in meeting contractual MBE obligations. MBE certification is a continuous requirement and must be maintained throughout the life of the contract; therefore, the City may request a MBE status report at any time during said contract. C. Records shall be available, upon request, to an authorized officer or employee of the government. D. The City shall prepare reports quarterly for review by the City Manager and City Council. These records shall include as a minimum: 24 lee& � 1. The number of contracts awarded to MBEs. 2. A description of the general categories of contracts so awarded. 3. The dollar value of contracts so awarded. 4. The percentage of the dollar value of all contracts awarded during this period which were awarded to MBEs. 5. An indication of whether, and the extent to which, the percentages met or exceeded goals. XI . POLICY CONCERNING LEASES The City of Beaumont shall not exclude MBEs from participation in business opportunities by entering into long-term exclusive agreements with non-MBEs for the operation of major construction or professional related activities or major activities for the provision of goods and services. XII. THIRD PARTY CHALLENGE PROCEDURE A. To challenge the eligibility of a firm that the City has certified, the following procedure is outlined. 1. Any third party may challenge the minority status of any individual, if that individual is an owner of a firm certified by or seeking certification from the City as a minority business. / 25 The challenge shall be made in writing to the City. 2. With its letter, the challenging party shall include all information available to it relevant to a determination of whether the challenged party is in fact an independent minority firm. (a) If the City determines that there is not reason to believe that the challenged party is not a valid minority business, the City shall so inform the challenging party in writing. This terminates the proceeding. (b) If the City determines that there is reason to believe that the challenged party is not an independent minority firm, the City shall begin a proceeding as provided in the following paragraphs 3 thru 6. 3. The City shall notify the challenged party in writing that his or her status as a MBE has been challenged. The notice shall identify the challenging party and summarize the grounds for the challenge. The notice shall also require the challenged party to provide the City, within a reasonable time, information sufficient to permit the City to evaluate his or her status as a minority business. 4. The City shall evaluate the information available to it and make a proposed determination of the challenged party. The City shall notify both parties of this proposed determination in writing, setting forth the reasons for its proposal. The City shall provide an opportunity to the parties for an informal hearing, at le—t6 /iLn 26 which they must respond to this proposed determination in writing or in person. 5. Following the informal hearing, the City shall make a final determination. The. City shall inform the parties in writing of the final determination, setting forth the reasons for its decision. 6. In making the determination called for in this procedure, the City shall use the standards set forth in Section VI of this policy. 7. During the pendency of a challenge under this attachment, the presumption that the challenged party is a MBE shall remain in effect. XIII. APPEALS OF DENIAL OF CERTIFICATION AS A KBE A. Filing Any firm which believes that it has been wrongly denied certification as a MBE or joint venture may file an appeal in writing, signed and dated, with the City of Beaumont. The appeal shall be filed no later than 180 days after the date of denial of certification. The MBE Liasion Officer may extend the time for filing or waive the time limit in the interest of justice, specifying in writing the reasons for so doing. Third parties who have reason to believe that another firm has been wrongly denied or granted certification as a MBE, or joint venture may so advise the liasion officer in writing giving reasons for such beliefs. This information is not considered an appeal pursuant to this section. B. Status of Certification During the Investigation The MBE Liasion Officer may at his/her discretion, deny the MBE, or joint venture in question eligibility to participate as a MBE in City contracts let during the pendency of the investigation, after providing the MBE, or joint venture in question an opportunity to show cause by written statement to the Liasion Officer why this should not occur. C. Cooperation in Investigation All parties shall cooperate fully with the investigation. Failure or refusal to furnish requested information or other failure to cooperate is a violation of this procedure. D. Determinations Determinations shall be made by a three member panel of City employees appointed by the City Manager. The panel makes one of the following determinations and informs the MBE or joint venture in writing of the reasons for the determination: (1) The MBE or joint venture is certified; or (2) The MBE or joint venture is not eligible to be certified and is denied eligibility to participate as a MBE in any City contract 4A�� 28 i� a • until a new application for certification is approved by the City. XIV. DECERTIFICATION PROCEDURE A. Reasons for Decertification The City reserves the right to decertify an existing MBE for any of the following reasons. (1) The firm's structure has changed to the extent that the business is no longer owned or controlled by an eligible person(s); (2) The business is no longer active; (3) The business is not financially responsible; (4) The business is not competent to do the work for which it was certified in accordance with generally accepted industry standards; (5) The firm has refused or failed without good cause to perform the work for which it was certified; and (6) The business has failed to comply with the City's request for documents, including an annual Schedule A, or other documents required for continuation of certification, or has failed or refused to permit inquires of bonding companies, banking institutions, previous and/or existing contractors and clients to ascertain the history of the firm's financial responsibility and contract performance. Failure to permit such inquires and submittal of necessary documents will be grounds for decertification. B. The decertification processes is as follows: I. Irregularities of any certified MBE business with regards to ownership, control, financial responsibility or competency, including refusal or failure to perform will be reported to the liaison officer in writing. If the irregularity is verified, the liaison officer will issue a written notice to the MBE detailing the verified irregularities and stating why decertification is being recommended. This notice will indicate a specific date (within 30 working days) for the certified party to meet with the MBE Liaison Officer and/or any other panel designee(s) involved in the decertification process. This meeting will provide the MBE the opportunity to defend or clarify the firm's irregularities. The City reserves the right to the final decertification decision. All written rebuttals must be submitted to the liaison officer within ten working days of the decertification meeting. 2. Decertification firms may re-apply for certification one year from the date of the final order. XV. MINORITY BUSINESS UTILIZATION COMMITMENT The Minority Business Utilization Commitment is to be included in all bid solicitations. Attachment 4 outlines the City of Beaumont's MBE policy as it pertains to construction contracts; likewise, attachment 5 outlines the same for professional services. MBE bidders/proposers are to review the Policy statement and indicate where provided, their proposed priority in achieving the City's MBE goals. 31 (Attachment 1) Schedule A Page 1 CITY OF BEAUMONT MINORITY BUSINESS ENTERPRISE CERTIFICATION FORM 1. Name of Firm 2. Address 3. Phone Number ( ) 4. Legal Structure: ( ) Sole-Proprietorship ( ) Joint Venture ( ) Partnership ( ) Corporation ( ) Other, Specify 5. Nature of Business: ( ) Contractor ( ) Professional ( ) Purchasing Description: 6. Number of Years in Business Contractors - Attach a work history which identifies projects, who work was for, location, amount of contract, a starting and completion dates for the past three (3) years. Professionals and Vendors - Attach a complete description of the company, and details on types of work/clients associated with the company. 7. Ownership: Identify those who own 5% or more. Columns e and f need be filled out only if the firm is less than 100 percent minority owned. Use the following codes for race information: B=Black; H=Hispanic; C=Caucasian; and O=Other (specify). (a) (b) (c) (d) (e) (f) Years of Ownership Voting Name Race Sex Ownership Percentage Percentage A1.1 SCHEDULE A Page 2 7a. With firms less than 100 percent minority owned, list the contributions of money, equipment, real estate, or expertise of each of the owners. Name Money Equipment Real Estate Expertise 8. CONTROL OF FIRM: Identify by name, race, sex, and title in the firm those individuals (including owners and non-owners) who are responsible for day-to-day management and policy decision-making, including, but not limited to, those with prime responsibility for: Name Race Sex Title Financial Decisions Management Decisions, such as estimating, marketing/sales, hiring/ firing of management personnel, & purchases of major items/supplies Supervision of Field Operations 9. For each of those listed in question 8, provide a brief summary of the person's experience and number of years with the firm, indicating the person's qualifica- tions for the responsibilities given him/her. A1. 2 SCHEDULE A Page 3 10. Describe or attach a copy of any stock options or other ownership options that are outstanding, and any agreements between owners or between owners and third parties which restrict ownership or control of minority owners. 11. Identify any owner (see item 7) or management official (see item 8) of the named firm who is or has been an employee of another firm that has an ownership interest in or a present business relationship with the named firm. Present business relationships include shared space, equipment, financing, or employees as well as both firms having some of the same owners. 12. What are the gross receipts of the firm for each of the last three years? Year ending $ Year ending $ Year ending $ 13. Name of bonding company, if any: Bonding Limit: 14. Are you authorized to do business in the state as well as locally? Yes ( ) No ( ) Licenses Held: 15. Indicate if this firm or other firms with any of the same officers have previously received or been denied certification or participation as an MBE and describe the circumstances. Certifying Authority: Date: Certifying Authority: Date: Certifying Authority: Date: A1.3 4-f41-10KV SCHEDULE A Page 4 AFFIDAVIT CERTIFICATION OF ELIGIBILITY "The undersigned swears that the foregoing statements are true and correct and include all material information necessary to identify and explain the operations of (name of firm) as well as the ownership thereof. Further, should any contract be awarded or services required, the undersigned agrees to provide through the prime contractor or, if no prime, directly to the City current, complete and accurate information regarding actual work performed on any project, the payment therefore and any proposed changes, if any, of the foregoing arrangements and to permit the audit and examination of books, records and files of the named firm by authorized representatives of the City or the Federal funding agency, if any. Any material misrepresentation will be grounds for terminating any contract which may be awarded and for initiating action under Federal or State laws concerning false statements." NOTE: If, after filing this Schedule A and before the work of this firm is completed on any contract with the City, there is any significant change in the information submitted, the City of Beaumont must be informed of the change through the prime contractor or directly. Signature Name Title Date Corporate Seal (where appropriate). Date State of County of A1 .4 SCHEDULE A Page 5 On this day of , 19 before me appeared to me personally known, who being duly sworn, did execute the foregoing affidavit, and did state that he/she was properly authorized by (name of firm) to execute the affidavit and did so as his/her free act and deed. Notary Public Commission Expires A1.5 SCHEDULE B Page 2 7 . What is the claimed percentage of MBE ownership? 8. Ownership of joint venture: (This need not be filled in if described in the joint venture agreement, provided by question 6. ) (a) Profit and loss sharing (b) Capital contributions, including equipment (c) Other applicable- ownership interests 9. Control of and participation in this contract. Identify by name, race, sex, and "firm" those individuals (and their titles) who are responsible for day-to-day management and policy decision making, including, but not limited to, those with prime responsibility for: Name Race Sex Title Financial Decisions Management Decisions, such as estimating, marketing/sales, hiring/ firing of management personnel, & purchases of major items/supplies Supervision of Field Operations A2.2 (Attachment 2) SCHEDULE B Page 1 CITY OF BEAUMONT MINORITY BUSINESS ENTERPRISE JOINT VENTURE ELIGIBILITY (This form need not be filled in if all joint venture firms are minority owned. ) 1. Name of Joint Venture 2. Address 3. Phone Number ( ) 4. Identify the firms which comprise the joint venture. (The MBE partner must complete Schedule A.) (a) Describe the role of the MBE firm in the joint venture. (b) Describe very briefly the experience and business qualifications of each non-MBE joint venture. 5. Nature of the joint venture's business 6. Provide a copy of the joint venture agreement. A2.1 ze f6�� SCHEDULE B Page 3 AFFIDAVIT JOINT VENTURE "The undersigned swear that the foregoing statements are correct and include all material information necessary to identify and explain the terms and operation of the joint venture and the intended participation by each joint venturer. Further, should any contract be awarded or services required, the undersigned covenant and agree to provide to the City current, complete and accurate information regarding actual joint venture work and the payment therefore and any proposed changes in any of the joint venture arrangements and to permit the audit and examination of the books, records and files of the joint venture, by authorized representatives of the City or the Federal funding agency, if any. Any material misrepresentation will be grounds for terminating any contract which may be awarded and for initiating action under Federal or State law concerning false statements. " Note: If, after filing this Schedule B and before the completion of the joint venture's work on any contract with the City, there is any significant change in the information submitted, the City must be informed of the change through the prime contractor or directly. Name of Firm Name of Firm Signature Signature Name Name Title Title Date Date Date State of County of A2.3 SCHEDULE B Page 4 On this day of 19 before me appeared tome personally known, who, being duly sworn, did execute the foregoing affidavit, and did state that he/she was properly authorized by (firm) to execute the affidavit and did so as his/her free act and deed. Notary Public Commission Expires (Seal) Date State of County of On this day of , 19 before me appeared , to me personally known, who, being duly sworn, did execute the foregoing affidavit, and did state that he/she was properly authorized by (firm) to execute the affidavit and did so as his/her free act and deed. Notary Public (Seal) Commission Expires Date State of County of A2.4 (ATTACHMENT 3) CITY OF BEAUMONT SCHEDULE OF MBE PARTICIPATION (Schedule C) Date of Report Department Total Contract Amount $ Project No. NAME OF PRIME CONTRACTOR/ Location PROPOSER TYPE OF WORK (ELECTRICAL, PAVING, ETC.) PROJECTED NAME OF MINORITY AND CONTRACT ITEMS OR PARTS THEREOF COMMENCEMENT & AGREED CONTRACTOR ADDRESS TO BE PERFORMED COMPLETION DATE FOR WORK PRICE The undersigned will enter into a formal agreement with MBE Contractors for work listed in this schedule conditioned upon execution of a contract with the City of Beaumont. NOTE: 1. Any business listed above must have Schedule A on file with the City. 2. Schedule C is due no later than working days after bid opening. TITLE A3.1 (ATTACHMENT 4) a CITY OF BEAUMONT MINORITY BUSINESS UTILIZATION COMMITMENT CONTRACTUAL SERVICES The City of Beaumont has adopted a plan to assure minority involvement in City contracts. It is the goal of the City of Beaumont to award at least ten percent of all construction contracts (over $50,000 per contract) to qualified minority business enterprises each year. It is the ultimate goal of the City to have its letting of contractual services contracts reflect the demographic make-up of the City. The term "minority business" means a business in which (a) at least fifty-one percent is owned by minority members or, in the case of a corpjr4tion, at least fifty-one percent of the stock is owned by minority members; and (b) the management and daily business operations are controlled by one or more Such individuals. For the purposes of the preceding sentence, minority group memberQ means those individuals who are citizens of the United States (or lawfully admitted permanent residents) who are Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Asian-Indian Americans, women, or handicapped individuals. Formal definitions of the foregoing may be obtained in the Minority Business Enterprise Program Policy Manual and may be reviewed in the City Clerk's office located in Room #180 in City Hall. In order to obtain our goal, the City of Beaumont will use the following priorities: 1. The City of Beaumont will take every step to use a qualified minority business as a prime contractor when available. 2. If a minority business cannot be utilized as a prime contractor, then a majority business who subcontracts with a minority contractor for a percentage of the contract will be given priority. For the purpose of improving the chance of entrepreneurship of minority persons, the City of Beaumont will allow a minority person to be employed by a non-minority and still be utilized as a minority contractor. All rights of subcontracting will be observed betTaee« such a union as long as the following regulations are observed. (a) A bona fide contract is drawn up and signed, subcontracting a portion of the work to the MBE. (b) The percentage amount and dollar value is presented before the contract is awarded. A4.1 o p (c) The lowest bidder agrees to provide, within six days of notification by the City that it is the apparent lowest bidder, a list of specific minority businesses it anticipates utilizing, the purpose for which each minority business enterprise will be utilized, and the dollar amount to be expended for each minority business enterprise. The City will request information from the next lowest bidder. (d) If awarded a contract, the bidder further agrees to furnish a report listing minority 'business utilization and the dollar amount expended for each service or subcontract upon request by the City of Beaumont. (e) If it appears during the course of the project that less than the agreed MBE percentage will be expended to minority businesses, the contract may be suspended, terminated, or the City may exercise any other remedies which it may have as a result of breach of the contract. This provision shall not apply, however, provided the contractor can demonstrate to the City's satisfaction that; (1) the expenditure shortfall is not the fault of the contractor, or (2) the contractor will make up the shortfall during the balance of the contract period. 3. If a minority business contractor cannot be utilized and the majority contractor cannot subcontract with a minority contractor, a majority contractor having an Affirmative Action Plan and furnishing such plan to the city will be given next priority. 4. If the steps above do not result in any minority participation or use of a contractor with an Affirmative Action Plan, the City Manager may approve the use of a majority business which will provide an Affirmative Action Plan within six months after contract award or provide a development plan to meet the City's goals. S. The City will institute a program to certify minority businesses who meet the criteria of this policy. The program will verify the minority status of the contractors and subcontractors selected under the policy and will assist new minority businesses in obtaining certification. The City Manager of the City of Beaumont (and/or his designee) will be responsible for administering these policies. A list of local minority business enterprises will be maintained in the office of the City Manager and the City Clerk and shall be available to all persons desiring such information. This list shall not be considered the sole source of identification of potential minority business enterprises. A4.2 � s M MINORITY BUSINESS UTILIZATION COMMITMENT I. DISCRIMINATION PROHIBITED Contractor, in the execution, performance or attempted performance of this Contract shall not discriminate against any person or persons because of sex, race, religion, color, or national origin; and Contractor hereby covenants and agrees that it has fully complied with the provisions of the Minority Business Enterprises Policy of the City of Beaumont and that no employees or employee-applicant has been discriminated against by Contractor. The Contractor must be an equal opportunity employer. II. MINORITY BUSINESS ENTERPRISES The undersigned agrees to comply with priority number of the Minority Business Enterprises Policy as outlined in this document. It is understood that the City of Beaumont will utilize this priority system in the evaluation of all bids. Name of Company Date Signature Title A4.3 (ATTACHMENT 5) CITY OF BEAUMONT MINORITY BUSINESS UTILIZATION COMML THE NT PROFESSIONAL SERVICES The City of Beaumont has adopted a plan to assure minority involvement in City agreements for professional services. It is the goal of the City of Beaumont to award at least twenty percent (20%) of all professional services agreements (over $25,000 per agreement) to qualified minority business enterprises each year. It is the ultimate goal of the City to have its letting of professional service agreements reflect the demographic make-up of the City. The term "minority business" means a business in which (a) at least fifty-one percent (51%) is owned by minority members or, in the case of a corporation, at least fifty-one percent (51%) of the stock is owned by minority members; and (b) the management anc daily business operations are controlled by one or more such individuals. For the purposes of the preceding sentence, minority group members means those individuals individuals who are citizens of the United States (or lawfully admitted permanent residents) who are Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Asian-Indian Americans, women, or handicapped individuals. Formal definitions of the foregoing may be obtained in the Minority Business Enterprise Program Policy Manual and may be reviewed in the City Clerk's office located in Room 180 in City Hall. In order to obtain our goal, the City of Beaumont will use the following priorities. I. The City of Beaumont will take every step to use a qualified minority business for professional services when available. 2. If a minority business cannot be utilized for professional services then a majority business who subcontracts with a minority firm for a percentage of the contract will be given priority. For the purpose of improving the chance of entrepreneurship of minority persons, the City of Beaumont will allow a minority person to be employed by a non-minority and still be utilized as a minority professional service. All rights of subcontracting will be observed between such a union as long as the following regulations are observed. A5.1 ° k a (a) A bona fide agreement is drawn up and signed, subcontracting a portion of the work to the MBE. (b) The percentage amount and dollar value is presented before the contract is awarded. (c) The most feasible proposer agrees to provide, within six days of notification by the City that it is the most feasible proposer, a list of specific minority businesses it anticipates utilizir^, the purpose for which each minority business enterprise will be utilized, and the dollar amount to be expended for each minority business enterprise. The City will request information from the next feasible proposer. (d) If awarded a contract, the proposer further agrees to furnish a report listing minority business utilization and the dollar amount expended for each service or subcontract upon request by the City of Beaumont. (e) If it appears during the course of the project that less than the agreed MBE percentage will be expended to minority businesses, the agreement may be suspended, terminated, or the City may exercise any other remedies which it may have as a result of breach of the agreement. This provision shall not apply, however, provided the proposer can demonstrate to the City's satisfaction that; (1) the expenditure shortfall is not the fault of the proposer, or (2) the proposer will make up the shortfall during the balance of the agreement period. 3. If a minority business firm cannot be utilized and the majority proposer cannot subcontract with a minority firm, a majority firm having an Affirmative Action Plan and furnishing such plan to the City will be given next priority. 4. If the steps above do not result in any minority participation or use of a firm with an Affirmative Action Plan, the City Manager may approve the use of a majority business which will provide an Affirmative Action Plan within six months after agreement execution or provide a development plan to meet the City's goals. 5. The City will institute a program to certify minority businesses who meet the criteria of this policy. The program will verify the minority status of the proposers and subcontractor selected under the policy and will assist new minority businesses in obtaining certification. A5.2 The City Manager of the City of Beaumont (and/or his designee) will be responsible for administering these policies. A list of local minority business enterprises will be maintained at the office of the City Manager and the City Clerk and shall be available to all persons desiring such information. This list shall not be considered the sole source of identification of potential minority business enterprises. Where legal or ethical considerations prohibit specific dollar amounts to be provided with proposals, proposals shall only be required to indicate the anticipated MBE percentage when the anticipated agreement amount exceeds $25,000. Should the final agreement amount exceed $25,000, all MBE requirements shall be met. A5.3 R r MINORITY BUSINESS UTILIZATION COMMITMENT I . DISCRIMINATION PROHIBITED Proposer, in the execution, performance or attempted performance of this agreement shall not discriminate against any person or persons because of sex, race, religion, color, or national origin; and proposer hereby covenants and agrees that it has fully complied with the provision of the Minority Business Enterprises Policy of the City of Beaumont and that no employees or employee-applicant has been discriminated against by Proposer. The Proposer must be an equal opportunity employer. II. MINORITY BUSINESS ENTERPRISES The undersigned agrees to comply with priority numbervof the Minority Business Enterprises Policy as outlined in this document. It is understood that the City of Beaumont will utilize this priority system in the evaluation of all proposals. Name of Company Date Signature Title A5.4