HomeMy WebLinkAbout84-51 - Minority Business Enterprise ProgramT'
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RESOLUTION 84 -51
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
TO ADOPT A MINORITY BUSINESS ENTERPRISE PROGRAM IN CONNECTION
WITH FEDERAL AID HIGHWAY PROJECT FINANCING
WHEREAS, the U. S. Department of Transportation is authorized
to provide funding to Local Agencies for highway projects; and
WHEREAS, under regulations issued by the Secretary of Transporta-
tion under the Surface Trasnportation Assistance Act of 1982 for Federal
Aid Highway projects, recipients are required to develop a Minority
Business Enterprise (MBE) Program; and
WHEREAS, the City of Newport Beach desires to have roadway
facilities funded wholly or in part by the U. S. Department of
Transportation; and
WHEREAS, the California Department of Transportation and the
Federal Highway Administration have reviewed and approved this resolution
and proposed Minority Business Enterprise (MBE) Program as set forth on
Exhibit A, attached hereto;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the
City of Newport Beach hereby adopts the Minority Business Enterprise
(MBE) Program for the City of Newport Beach as set forth on Exhibit A.
ATTEST:
City Clerk
ADOPTED this 11th day of June , 1984
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CITY OF NEWPORT BEACH
MINORITY BUSINESS ENTERPRISE PROGRAM
I. Policy Statement
It is the policy of the City of Newport Beach to utilize Minority Business
. Enterprises in all aspects of contracting for projects financed with
Department of Transportation Federal Aid Funds to the maximum extent
feasible.
This policy is fully described in the City of Newport.Beach Minority
Business Enterprise Program,which constitutes City of Newport Beach policy
and a commitment to substantially increase Minority Business and Female
Business Utilization. This policy includes any facility funded wholly or
in part by any U.S. Department of Transportation modal element, through
Caltrans.
The City of .Newport Beach, its contractors and subcontractors, which are
the recipients of Federal -aid funds, agree to ensure that minority busi-
ness enterprises have the maximum opportunity to participate in the per -.
formance of contracts and subcontracts. In this regard, the City of
Newport Beach and al.l of its contractors and subcontractors will take all
reasonable steps in accordance with 49 CFR23 to ensure that minority
business enterprises have the maximum opportunity to compete for and per-
form contracts.
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Benjamih Nolan
Public Works Director
EXHIBIT A
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II. Minority Business Enterprises (MBE) Liaison Officer
Mr. Horst Hlawaty, Civil Engineer, is the MBE Liaison Officer for the
City of Newport Beach and shall report to the Public Works Director.
Mr. Horst Hlawaty will be assigned such staff as is necessary to fully
implement the provision of 49'CFR Part 23 and such other MBE programs as
may be required. The reporting structure of support staff is shown on
Attachment 1.
III. Duties of the MBE Liaison Officer
The MBE Liaison Officer shall develop, manage and implement the MBE
Program on a day -to -day basis. The Liaison Officer shall:
Develop and carry out technical assistance programs for MBE's.
Arrange solicitations, time for the presentation of bids, quantities,
specifications, and delivery schedules, so as to facilitate the par-
ticipation of MBE's. Where such changes are found necessary to in-
crease MBE utilization, they will be made in consultation and coopera-
tion with the functional unit involved.
Provide guidance to MBE's in overcoming barriers, such as inability
to obtain bonding or financing.
Carry out information and communication programs on contracting oppor-
tunities in a timely manner. Programs shall be bilingual where appro-
priate.
Investigate the services offered by banks owned and controlled by
minorities or women. Ensure that, where feasible, the contractor
utilizes said banks.
Utilize a listing of MBE's certified by Caltrans. Said listing to be
made available to all bidders on City of Newport Beach projects. Such
listing will include the following information: Name, address,
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telephone number, ethnic and /or sexual ownership, type of work performed
by firm.
Approve any removal and /or substitution of a Minority Business Enterprise
during contract performance. Prior to approval of substitution and /or
removal of MBE, prime contractors will be required to prove performance
of good faith efforts to replace the MBE with another eligible MBE.
. Establish overall goals for both minority and female business enter-
prises. Goals shall be evaluated on July l of each year and adjusted
as necessary.
Establish individual project goals for minority and female business
enterprises. All projects will be evaluated for the appropriateness
of goals.
. Maintain such documentation as is necessary to verify the City of.
Newport,Beach performance of the above activities.
IV. Establishment of Overall MBE Goal
The City of Newport Beach will establish an overall goal for its use of
MBE's. This goal will be updated annually as of July 1 of each year.
The City of Newport Beach overall goal and the methodology used to deter-
mine the goal for the fiscal year beginning July 1, 1984, is shown on
Attachment 2.
V. Contract Goals
All projects receiving U.S. DOT funds will be evaluated for the appro-
priateness of MBE goals. Projects will be evaluated and goals established,
utilizing the following criteria: .
Size of project:.
Opportunities for MBE's as subcontractors, vendors, suppliers.
. Minority population of county in which work is to be performed.
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Existing MBE goals being utilized in the project area by other State,
• Federal or local jurisdictions.
• Availability of MBE's.
• Past experience on projects similar to the project being evaluated.
• Such other factors as may effect the utilization of MBE's.
• Each project will be evaluated in conformance with the above criteria.
Complete documentation will be retained of every project so evaluated.
Contracts which do not contain specific goals will contain the following
provisions:
(1) "Policy. It is the policy of the City of Newport Beach that minor-
ity business enterprises as defined in 49 CFR Part 23 shall have the
maximum opportunity to participate in the performance of contracts
financed in whole or in part with Federal funds under this agreement.
Consequently, the MBE requirements of 49 CFR Part 23 apply to this
agreement.
(2) "MBE Obligation. (i) The City of Newport Beach or its contractor agrees to
ensure that minority business enterprises as defined in 49 CFR Part 23
have the maximum opportunity to participate in the performance of
contracts and subcontracts financed in whole or in part with Federal
funds provided under this agreement. In this regard, the City of Newport
Beach or its contractors shall take all necessary and reasonable steps in
accordance with 49 CFR Part 23 to ensure that minority business enter-
prises have the maximum opportunity to compete for and perform contracts.
The City of Newport Beach and its contractors shall not discriminate on
the basis of race, color, national origin, or sex in the award and
performance of DOT- assisted contracts."
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MBE use on projects without goals will! be reported to the Liaison
Officer and will be included in City of Newport Beach reports to Caltrans
and to the appropriate DOT element. 14BE use on such projects will be
counted toward attainment of the overall goal.
VI. Public Notification
At the time of submittal of this program to the U.S. Department of
Transportation, the City of Newport Beach will publish a notice in both
minority and majority local media. Said publication shall:
Announce the City of Newport Beach overall goals.
. Inform the public that_the goals and a description.of how they were
set, are available for public inspection for a period of 30 days.
Inform the public that both U.S. DOT and the City of Newport Beach.
will accept comments on the goals for 45 days from the date of the
notice.
. The notice shall advise interested parties that comments are for in-
formational purposes only.
In addition to the foregoing, interested minority and majority contractor
organizations will. receive direct mailings of this complete program with
a request that they provide written comments to the City of Newport Beach
on this program.
VII. Contract Procedure
This plan shall be implemented through the utilization of a contract spe-
cial provision which is attached hereto. These procedures require bidders
to submit the names of MBE subcontractors and suppliers, a description of
the work each is to perform or material to be furnished, and the dollar
value of each MBE subcontract.
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VIII. MBE Notification
Projects will be advertised in local newspapers and minority focus news-
papers when possible. These ads will include reference to MBE require-
ments and will indicate MBE and WBE goals set by the City of Newport
Beach. MBE assistance centers will receive notification of projects
scheduled to be advertised. Assistance Centers, Minority Business Develop-
ment Centers and Program Management Centers will receive complimentary
plans and specifications for projects within their geographical area of
responsibility.
IX. Minority and Female -Owned Banks
The City of Newport Beach will encourage all contractors to use the ser-
vices of banks owned and controlled by minorities or females. This en-
couragement will be disseminated during pre -bid and pre - construction con-
ferences (if scheduled) and the contract specifications.
X. Selection Criteria for Contracts with MBE Goals
Every contract containing MBE goals shall be evaluated by the MBE Liaison
Officer or his /her designee to ascertain bidding contractors' efforts to
attain the MBE goals. The award of any project with MBE goals must be
concurred with by the MBE Liaison Officer or his /her designee before said
contract may be awarded. Should there be disagreement between the City
of Newport Beach functional units concerning contractors' efforts to at-
tain contract goals for MBE participation, the matter shall be referred
to the Public Works Director or his /her designee, for final determina-
tion.
Competitors which fail to demonstrate sufficient reasonable efforts to
meet the MBE goals shall not be eligible to be awarded the contract.
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Any contracts that contain MBE goals, pursuant to this policy, will be
monitored on an ongoing basis by project personnel during the course of
construction. The MBE Liaison Officer is to be immediately advised of
any circumstances wherein contractor compliance with the MBE provision is
questionable. The contractor shall submit a final report for each project
• with MBE goals which includes total payments to the prime contractor. as
well as apyments the prime contractor has _made to MBE subcontractors, ven-
dors and suppliers. If the report indicates the prime contractor has not
achieved the project goals, project personnel shall attach an evaluation, i
in narrative form, of the reasons for failure to attain the goals and any
corrective action that was taken.
Prime contractors will be required to notify City of Newport Beach person-
nel of any situation in which regularly scheduled progress payments are
not made to MBE subcontractors, vendors or suppliers.
XI. Set- Asides
If determined necessary by the MBE LIaison Officer, the City of Newport
Beach will consider the use of MBE set - asides as a tool to achieve the
overall City of Newport Beach goal.
XII. Counting MBE Participants
The City of Newport Beach, its contractors, and subcontractors shall count
MBE participation in accordance with the provisions of Section 23.47,
Title 49, of the Code of Federal Regulations.
XIII. Records and Reports
The MBE Liaison Officer shall maintain such records, and provide such re-
ports, as are necessary to ensure full compliance with this policy. Such
records and reports shall include, as a minimum, the following informa-
tion:
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. Procedures which have been adopted to comply with this MBE policy.
Award to MBE's.
Awards to majority contractors.
. Final project reports concerning MBE utilization.
. Such other data as is needed to fully evaluate City of Newport Beach
compliance with this program.
The MBE Liaison Officer shall submit reports concerning U.S. DOT- funded
projects to Caltrans and to U.S. DOT elements as required. These reports
will include:
Number and dollar value of contracts awarded.
Number and dollar value of contracts and subcontracts awarded to MBE's.
Description of general categories of contracts awarded to MBE's..
The percentage of the dollar value of all contracts awarded during the
quarter which were awarded to MBE's.
. Indication as to the extent of which the percentage met or exceeded
the overall City of Newport Beach goal.
Reports shall be broken down separately by ethnic grouping and sex.
XIV. MBE Listing
The City of Newport Beach will utilize a listing of firms certified by
Caltrans to be Minority Businesses in accordance with the DOT Order.
This listing will be developed and maintained in accordance with Sections
23.51, 23.53, 23.55 and 23.87 of 49 CFR. This listing shall be made avail-
able to prospective contractors at no charge.
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Contractors will be permitted to rely upon the authenticity of firms
listed in this Directory. A contractor desiring to use an MBE not in-
cluded in the Caltrans certified listing will be allowed to do so, but
will be required to provide the appropriate certification from the MBE
before such participation is counted towards award of the project.
• XV. Complaints
Any complaints received by the City of Newport Beach concerning this pro-
gram will be investigated by the City of Newport Beach. The City of
Newport Beach will endeavor to resolve said complaints within 90 days of
receipt by the MBE Liaison Officer. The appropriate DOT element and
Caltrans will be furnished a copy of the complaint and may be invited to
participate in the investigation /resolution. The DOT element and Caltrans
will receive a complete investigative report on the complaint and may be
requested to concur in the proposed disposition of said complaint.
Contractors will be directed to notify the City of Newport Beach of any
complaints they may receive concerning this program.
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MINORITY BUSINESS ENTERPRISES
ORGANIZATION CHART
CITY
MANAGER
P.W.D.
FIELD MBE TRAFFIC
ENGINEER LIAISON OFFICER ENGINEER
ATTACHMENT 1
MINORITY BUSINESS ENTERPRISE OVERALL GOALS
FISCAL YEARS
(July 1, 1984 - June 30, 1985)
(July 1, 1985 - June 30, 1986)
During Fiscal Year 1984/85, the City will request
U. S. Department of Transportation monies to retain a consultant
to prepare final -plans and specifications for widening Pacific
Coast Highway between MacArthur Boulevard and Newport Boulevard.
Maximum consideration will be given to Minority Business Enterprise
participation, to the extent possible, in selecting a consultant.
The construction of Pacific Coast Highway using U. S.
Department of Transportation monies, is anticipated in Fiscal
Year 1985/86. The City has established for this project a
participation goal of at least ten (10) percent by Minority
Business Enterprises and at least (1) percent participation
for business owned and controlled by women.
ATTACHMENT 2
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9nis project is subject to Part 23, Title Or Code of Federal Regulations entitled
"Participation by Minority Business Enterprise in Department of Transportation
Programs." Portions of the Regulations are set forth in the "Federal Requirements,"
section 6 -1.05, of these special provisions, and the Regulations in their entirety
are incorporated herein by this reference.
Aftpidders shall be fully informed respecting the requirements of the Regulations=
IWarticular attention is directed to the following matters.
(a) A Minority Business Enterprise (MBE) must be a small business concern as
defined pursuant to Section 3 of the U. S. small Business Acti
(b) An MBE may participate as a prime contractor, subcontractor, joint '
venture partner with a prime contractor or subcontractor, or vendor of materials or
suppliesi
(c) An MBE joint venture partner must be responsible for a clearly defined
portion of the work to be performed in addition to satisfying requirements for
ownership and control. The MBE joint venturer must submit Schedule B of the
Regulations=
(d) An :+BE must perform a onanercially useful function, i.e., he must be
responsible for the execution of a distinct element of the work and must carry out
its responsibility by actually performing, managing and supervising the works
(e) Credit for an MBE vendor of materials or supplies is limited to 20 per-
cent of the amount to be paid to the vendor for the materials, unless the vendor
manufactures or substantially alters the goods. .
(f) An MBE must be certified before credit can be allowed toward the MBE goal.
Caltrans MBE Directory identifies MBEs which have been certified. This MBE
Directory may be obtained from the City.
(g) Noncompliance by the Contractor with the requirements of the regulations
constitutes a breach of this contract and may result in termination of the contract
or other appropriate remedy for such breach.
(h) Bidders are encouraged to utilize services offered by banks owned and
controlled by minorities or women.
MBE GOALS FOR THIS PRDQE=. The City has established for this project a Minority
Business Enterprise (MBE) participation goal of percent and pecent
participation goal for business owned and oantroMeMbby women (WBET.—
It is the bidder's responsibility to make a sufficient portion of the work avail-
able to subcontractors and suppliers and to select those portions of the work
material needs consistent with the available MBE subcontractors and suppliers, so
as to assure meeting the goal for MBE participation.
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GENERAL. The bidder's attention is directed to the provisions in Section 3, "Award
and Execution of Contract," of the Standard Specifications and these special
provisions for the requirements and conditions concerning submittal of MBE informa-
tion, award, and execution of contract.
MBE INPORMATIGN. The apparent successful bidder (low bidder) shall submit MBE
Allhinformation to the office at which bids were received no later than 2:00 p.m.
f the day following the bid opening, unless a later time is authorized by the
City. Other bidders need not submit MBE information unless requested to do so by
the City. When such request is made, the MBE information of such bidder shall be
submitted within 5 days, unless a later time is authorized by the City. The
information shall includes ..
(1) Names of MBEs to be used, with a complete description of work or supplies
to be provided by each and the dollar value of each such MBE transaction;
(Note. MBE subcontractors for signal and lighting items, if there are such
items oo work, must have been named in the bid. See section entitled *Subcontract-
ing" of these special provisions.)
(2) A "Minority and inn Business Enterprise Questionnaire" (Schedule A) for
each MBE not already certified.
(3) Schedule B for each TIDE joint venturer.
Bidders whose submittal for (1) above indicates they will meet the stated MBE goal
need not submit any further MBE information, unless the City in its review finds
that the goal has not been net in which case additional information will be re-
quested by the City. The additional information may be requested to clarify
claimed MBE participation, add MBE participation, or demonstrate that a good faith
effort has been made to meet the"MBE goal. Such information shall be submitted
promptly upon request by the City.
It is the bidder's responsibility to meet the goal of MBE participation or to
provide information to establish good faith effort to do so. Such.information
should include the following:
(4) The names and dates of advertisement of each newspaper, trade paper, and
minority -focus paper in which a request for MBE participation for this project was
placed by the bidder;
(5) The names and dates of notices of all certified MBEs solicited by direct
nail for this project;
(6) The items of work for which the bidder requested subbids or materials to
be supplied by MBEs=
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(7) The names of MBEs who submitted bids for any of the work indicated in (6)
above which were not accepted, the name of the subcontractor or supplier that was
selected for that portion of work, and the reasons for the bidder's choice. (If
the reason was price, give the price bid by the rejected MBE and the price bid by
the selected subcontractor or supplier);
(8) Assistance that the bidder has extended to MBEs identified in (7) above
• to remedy the deficiency in the MBEs subbids;
(9) Any additional data to-support a demonstration of good faith effort, such
as contacts with MBE assistance agencies.
AWARD OF CONTRACT. The award of contract, if it be.awarded, will be to the lowest `
responsible bidder whose proposal complies with all the requirements prescribed and
who has met the goal for MBE participation or has demonstrated, to the satisfaction
of the City, good faith effort to do so. meting the goal for NBE participation or
demonstrating, to the satisfaction of the City, good faith efforts to do so is a
condition for being eligible for award of contract.
SUBCOMhCTI1 G. Attention is directed to the provisions in the Section
"Subcontracting," of the Standard Specifications, Section "Proposal Requirements
and Conditions," Section "Submission of Minority Business Enterprise Information,
Award, and Execution of Contract" elsewhere in these special provisions and this
special provisions.
The tME information furnished under the Section "MBE Information," of these special
provisions is in addition to the subcontractor information required to be furnished
under said Section "Subcontracting."
In accordance with the Federal MBE regulations [Section 23.45(f)(2), part 23,
Title 49 CFR):
1. No substitution of an MBE subcontractor shall be made at any time without
the written consent of the City; and
2. If an MBE subcontractor is unable to perform successfully and is to be re-
places, the contractor will be required to make good faith efforts to replace the
original MBE subcontractor with another AIBE subcontractor.
The "Subletting and Subcontracting Fair Practices Act" (Government Code Sections
4100 -4113, inclusive) applies to the items of signals and lighting and requires
subcontractors, if used for such work, to be listed in,the prime contractor's
proposal; prohibits the substitution of subcontractors, except as therein author-
ized; and provides for penalties for violations of the Act. Bidders are cautioned
that this listing requirement is in addition to the requirement to provide a list
of MBE subcontractors after the opening of the proposals. Each bidder shall, with
respect to the items of signals and lighting, list in his proposal:
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1. 7ne name and the location of the place of business of each subcontractor
who will perform work or labor or render services to the prime contractor in or
about the construction of the work or improvement, or a subcontractor licensed by
the State of California who, under subcontract to the prime contractor, specially
fabricates and installs a portion of the work or improvement according to detailed
drawings contained in the plans and specifications, in an amount in excess of one-
half of one percent of the prime contractor's total bid.
2. The portion of the work which will be done by each such subcontractor.
elonly one subcontractor shall be listed for each such portion.
A sheet for listing the subcontractors, as required by the Subletting and Sub-
contracting Fair Practices Act, is included in the proposal.
MBE RECORDS. She Contractor shall maintain records of all subcontracts entered
into with certified MBE and female subcontractors and records of materials
purchased from certified MBE and female suppliers. Such records shall show the
name and business address of each MBE and female subcontractor or vendor and the
total dollar mmunt actually paid each MBE and female subcontractor or vendor.
Upon completion of the contract, a summary of these records shall be prepared and
certified correct by the Contractor or his authorized representative, and shall be
furnished to the Engineer within 30 days after acceptance by the City.
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