SR 10-27-1981 9B
e .
GS:SES:KS Santa Monica, California, October 23, 1981
'2-t7S-t!)OZ~2 q--.13
TO: Mayor and City Council GC12 7 \981
FROM: City Staff
Subject: Santa Monica Minority Business Enterprise Program
Introduction
This report transmits information on recent changes in Federal
Rules and Regulations and recommends that the City of Santa
Monica adopt a Minority Business Enterprise Program in order to
maintain
a
continued
e 1 i g i b il i ty
for
federal financial
assistance.
Background
The United States Department of Transportation, under adopted
policy changes effective July 1, 1981, requires that all local
agencies receiving more than $100,000 per year, or per project,
in Federal Highway Administration (FHWA) funds, or receiving more
than
$500,000
per
year
in
Urban
Mass
Transportation
Administration (UMTA) Funds, must adopt a Minority Business
Enterprlse (MBE) Program.
The MBE Program adopted by any city must contain those elements
specified by pertinent Federal Rules and Regulations in order for
the city to be eligible to continue to receive Federal funds
allocated by the United States Department of Transportation.
9-/3
1
Gel 2 7 j981
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Santa Monica, California, October 23, 1981
GS:SES:KS
In the General Services Department, certain proposed projects are
dependent upon receipt of Federal funds. These include the
reconstruction of Wilshire Boulevard between Ocean Avenue and
21st Street and the installation of new traffic signals and the
upgrading of existing systems at Colorado Avenue and Ocean
Avenue; Ocean Avenue and State Highway 163; Ocean Park Boulevard
and 25th Street; Ocean Park Boulevard and 21st Street and Arizona
Avenue and 26th Street.
The Transportation Department also
depends upon Federal funds to assist in the funding of capital
expenditures as well as to support its day-to-day operation.
For the year 1981-1982, there is currently allocated to the City
of Santa Monica 1.574 million dollars in Federal Highway funds.
Pending appropriation, it is anticipated these funds will become
available on January 15, 1982.
Recommendation
It is recommended that the City Council adopt the attached
Resolution adopting the proposed City of Santa Manica MBE
Program.
Prepared by: Stan Scholl
John Jalili
Jack Hutchison
Doug McAteer
Attachment:Santa Monica MBE Program
2
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CITY OF SANTA MONICA
MINORITY BUSINESS ENTERPRISE PROGRAM
FOR FEDERALLY ASSISTED PROJECTS
1. POLICY
The City of Santa Monica (hereinafter called "City"), a
recipient of Federal financial assistance from various Federal
agencies (hereinafter called "Government"), is committed to a
Minority Business Enterprise Program (hereinafter called
"programll), in accordance with Federal Regulations issued by the
Department of Transportation (hereinafter called IIDOT"), on March
31, 1980, July 3, 1980. and on March 12, 1981. (49 CFR Part 23)
(hereinafter called "Regulations").
It is the intention of the City that minority business
enterprises shall be afforded every practicable opportunity to
participate in the performance of contracts relating to the
Cityls Federally-funded projects. The City is determined to
provide opportunities for MBE participation in the competitive
bidding process for the City's contract requirements through the
establishment of the procedures outlined herein. This program
shall apply to all Federally funded projects and programs.
It is the policy of the Clty to establish participation
goals for business enterprises owned and controlled by minorities
and by women, in accordance with the following standards:
A. Goals shall be estabished for minority or
women controlled firms in the following
categories:
1) Operating services, supplies,
materials, and equipment in programs
funded all or in part by Federal
monies (for which an annual overall
participation goal shall apply); and
2) Construction projects funded all or in
part by the Government (for which
goals shall be set on a proj ect
ba s is) .
B.
Goals shall be based
contract awards and the
the total contracts
estimated for any given
on projections of
size and nature of
and procurements
yea r.
October 23, 1981
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.
C. Goals shall be related to the availability
of MBE's who have the capability to
perform the types of services or to
furnish the types of procurements which
will satisfy the City's projected contract
needs during the course of a given year.
II. OBJECTIVES OF THE MINORITY BUSINESS ENTERPRISE PROGRAM
The objectives of this program are:
A. To identify business enterprises owned and
controlled by minorities and by women
which are qualified to provide the City
with required materials, goods, and
services.
B. To develop procedures which will acquaint
prospective minority business enterprises
with the City's contract activities and
requirements.
C. To develop the necessary
inter-departmental relationships within
the City which will facilitate
implementation of this program.
D. To assist in the improvement of the
economic level of minority business
enterprises in the Santa Monica Bay Area
by providing opportunities for the award
of Government-funded contract work to
firms owned and controlled by minorities
and by women.
III. DESIGNATION OF LIAISON OFfICER AND SUPPORT STAFF
The MBE Program shall be administered by the City's
Administrative staff under the direction of the City Manager.
Each lndividual Government-funded project or program is
administered by departmental administrative staff which will also
be responsible for the day-to-day implementation of the MBE
Program as it relates to particular projects. The City Manager
and staff shall coordinate the overall program.
IV. fOR CONTRACTS
The City shall use affirmative action techniques to
facilitate MBE participatlon in contracting activities.
October 23~ 1981
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V. USE OF BANKS UNDER MBE CONTROL
If the City at any time needs to bank funds received
from Federal agencies, then this MBE Program shall a1so apply to
the selection of banks for deposit of those funds within the
Santa Monica city limits or such other areas as may be selected
by the City Council. If no such banks exist, then the goal shall
be zero.
VI. MBE DIRECTORIES
The City shall maintain directories of local MBE firms
with capabilities relevant to general contracting requirements
and to particular solicitations. These directories will be
available to bidders and proposers on Government-funded City
projects.
VII. MBE PROGRAM IMPLEMENTATION
The staff designated under Section III of this procedure
(hereinafter called the "Project Review Committee"), shall
provide individual project review. This group shall assist in
the implementation of this program and make recommendations to
the City Council with respect to the establishment of annual
overall participation goals for the procurement categories of
professional services, supplies, materials, and equipment and
contract participation goals for individual construction
projects. In addition, these designated staff members shall
review all bids submitted for Federally-assisted contracts,
evaluate the MBE participation included in each bid~ determine
the eligibility and proper certification of the various MBE's
listed by the bidders for participation in the contract work, and
take all necessary actions to assess the responsiveness of said
bids relative to the applicable MBE requirements for such
contracts. A statement shall be made to the City Manager and the
City Council which presents the compliance of the various bidders
with the applicable MBE requirements and which recommends award
of the subject contract to the lowest responsible and responsive
bidder.
VIII.
MBE PERCENTAGE GOALS FOR THE DOLLAR VALUE OF WORK ON
CONSTRUCTldN PROJECTS
MBE goals shall be established by the Project Review
Committee for each construction project. It is the intention of
the City that the MBE goal for each contract be achieved. Goals
may be established for minority-owned and women-owned firms by
setting percentage ranges, coupled with an overall MBE
participation goal for each project. The contract goal
established for a given project shall be specified in the
contract specifications.
October 23, 1981
3
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IX. AWARD OF CONTRACT
A. General Statement. The City shall award
construction contracts to the lowest
responsible and responsive bidder. A
bidder that fails to achieve the specified
MBE goals may be condsidered eligible for
award of contract only if it can
demonstrate having made sufficient good
faith efforts to meet the goal as outlined
in the regulations. If such efforts
cannot be documented by the bidder, then
it shall not be deemed "responsibleu and
therefore, shall be ineligible for award
of the contract.
B. Determination of Lowest Respons~ble and
Respo~sive Bidder
1. Evaluation of Bids. After the bid
ope~i~g, - the Project Review Committee
shall evaluate all bid proposals and
required information submitted by
bidders for the contract to determine
a recommendation for award of the
contract to the lowest responsible and
responsive bidder.
2. Eligibility of MBE1s. The MBE's
lTsted by bidders for participation in
the contract work shall be listed in
the Cityls MBE directories. The
Committee may also accept MBE's
certified by Federal Government
agencies.
3. Oetermination of Amount of MBE
participation. The percentage goal as
established by the Project Review
Committee shall be the standard used
to evaluate whether bidders have
satisfied the MBE contract
requirements. A bidder shall not be
credited for exceeding an MBE goal.
c. Bidders Meeting MBE Goals. A bidder shall
submit a written assurance with the bid
proposal that the MBE contract goals have
been met or that reasonable efforts have
been made to meet the goals. In addition,
at the time set in the contract
specifications, the bidder shall also
submit all other information required by
October 23, 1981
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the regulations. MBE subcontractorst
supplierst and manufacturers must perform
a commercially useful function in the work
of the contract in order for their
contribution toward the total contract
work to be included in the MBE contract
participation percentages.
D. Bidders Not Meeting MBE Goals. A bidder
whO does not meet the MBE goals shall
submit a report documenting that the
bidder made sufficient reasonable efforts
to meet the goals. This report shall
follow the format outlined in the
regulations.
E. Recommendation Process for Award of
Contract. The Project Review Committee
shall review all information submitted by
the bidders and may request such
additional information from a bidder as
may be necessary to determine MBE goal
compliance.
If a bidder does not meet the MBE goal t yet is low bidt
then the Project Review Committee may recommend award of the
contract to said bidder if it can document that a good faith
effort was made to meet the MBE goal as outlined in the
regulations. If such documentation is not submitted, the Project
Review Committee cannot deem said bidder to be "responsible".
Following the determination by the Project Review
Committee of the lowest responsible and responsive biddert it
shall prepare a statement on such low bidder's compliance with
the MBE policy for review by the City Council at the time that
the contract award is considered. If the City Council disagrees
with staff1s recommendation regarding the responsible low bidder.
it shall reject all bids or refer the matter back to staff for
further evaluation and recommendation. The decision of the City
Council on the award of the contractt if such a decision is madet
shall be final and binding on all parties.
F. Substitution of Subcontractors. If a
contractor. ifter ~wardJ should request
the substitution of a subcontractor
pursuant to the Subletting and
Subcontracting Fair Practices Act
(California Government Code Section 4100
et seq.). the contractor shall replace an
October 23t 1981
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MBE subcontractor with another MBE
subcontractor if such action is necessary
to maintain the required level of MBE
participation. In the event that a
contractor having made sufficient
reasonable efforts to find a substitute
subcontractor, is unable to do so, the
contractor may use a non-MBE
subcontractor, subject to the approval of
th e City.
X. MATER),ALS, SUPPLIES, AND PROF,ESSIONAl SERVI,CES
A. Goal for Materials, Supplies, and
Professional Services. The City Council,
upon reco~mendation of the Project Review
Committee, shall establish an overall goal
for MBE participation in the City's
procurement of equipment, material,
supplies, and professional services in
programs funded all or in part by Federal
monies. Exhibit B, attached hereto and
incorporated herein by this reference,
sets forth this goal. It is the intention
of the City that the annual goal be
achieved. In establishing this goal,
appropriate City staff and the City
Council shall consider the following
factors:
1. The overall projection of contract
awards in the particular areas.
2. The availability of firms owned and
controlled by minorities or women in
each category or area of specialty.
In defining the geographic area for
determining availab;l;ty~ the City
shall follow the same approach it
takes with respect to non-MBE firms
for a type of procurement.
3. The dollar amount and percentage of
procurement projected to be required
from ~sole-source~ vendors.
4. A comparison of the goal established
for the previous year to the actual
percentage utilization for that year
and the experience of the City in
obtaining participation in its
procurement and professional services
contracts from firms owned and
controlled by minorities or women.
October 23, 1981 6
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5. Unique characteristics of the
procurements of equipment, supplies,
materials, and professional services
proposed for the following year.
6. Any suggestions and information
developed from the City staff,
industry, and professional sources and
other public agencies.
7. Any other relevant criteria.
B. Annual Eval uation. At the end of each
fi scal year,' Ci ty staff shall revi ew the
overall MBE goal for the procurement
category of equipment, materials,
supplies, and professional services and
shall furnish the City Manager and City
Council with a report documenting the
overall percentage participation of firms
owned and controlled by minorities or
women. Also, this report shall recommend
an overall MBE participation goal for the
new fiscal year.
Following this review process, the City Council may
determine that it is necessary or appropriate to review the
preceding year's goal. In such event, the revised goal shall be
submitted to the Government and Exhibit B shall be amended
accordingly.
XI. PROJECTS EXEMPT FROM THIS PROGRAM
A. Transit Vehicle Procurements. The
acquis1tion of transit vehicles is
categorically exempt from this program.
B.
Other
other
e x em p t
be made
Projects. In addition, certain
projects, may be designated as
from this program. Exemptions may
in the following circumstances:
1. Projects in whic~ there are no known
MBE Contractors, subcontractors, or
suppliers who are in the business of
supplying the labor, materials,
equipment, or services sought in a
particular procurement or construction
contract.
October 23, 1981 7
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2. Projects consisting of only one or two
subtrades may be exempt from specific
MBE contract goals due to the fact
that setting participation goals for
projects with such limited
opportunitites for sub-bids could
result in restrictive bidding.
These exemptions do not imply relief
from efforts to solicit MBE bids and
sub-bids. The City will make efforts
to solicit bids from MBE's and require
that contractors solicit MBE sub-bids
for these projects whenever possible.
XII. DEFINITIONS
A. Minority Business Enterprise. A minority
DUS1ness enterprise 1s a small business
concern which is owned and controlled by
one or more minority persons or by women.
1. Small Business Concern. A small
business concern shall mean an
enterprise whith is independently
owned and operated and which is not
dominant in its field of operation and
which further meets the criteria
established by the Small Business
Administration as set forth in Section
3 of the Small Business Act (15
U.S.C.A. Section 632) and the
implementing regulations (13 eFR 212)
as amended.
2. Owned and Controlled. Owned and
controlled means a small business
concern whose management and daily
business operations are controlled by
minority persons or by women; and
which is (I) a sole proprietorship
legitimately owned by an individual
who is a minority person or a woman;
(2) a partnership or joint venture in
which at least 51 percent of the
beneficial ownership interest
legitimately is held by minority
persons or by women; or (3}a
corporation or other entity, including
a publicly owned business, in which at
least 51 percent of the voting
interest and 51 percent of the
beneficial ownership interest (i.e.,
October 23, 1981 8
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stock) legitimately are held and owned
by minority persons or by women.
3.
Minority Persons.
is a person wno is a
permanent resident
States and who is:
A minority person
citizen or lawful
of the United
a. Black (a person having origins in
any of the black racial groups of
Africa);
b. Hispanic (a person of Spanish or
Portuguese culture with origins in
Mexico, South or Central America,
or the Caribbean Islands,
regardless of race);
c. Asian American (a person having
or191ns in any of the original
peoples of the Far East, Southeast
Asia, the Indian Subcontinent, or
the Pacific Islands); or
d.
American Indian and Alaskan
(a person having origins in
the original peoples of
America).
Native
any of
North
e. Members of other groups or other
individuals found to be
economically and socially
disadvantaged as defined below.
In determining whether a firm is
economically and socially
disadvantaged, the City shall use
the specific criteria developed by
the Small Business Administration
under Section 8 (a) of the Small
Business Act, as amended (15
See t ion 637 (a)) and imp 1 em e n ti n 9
regulations.
(1) Socially disadvantaged
individuals are those who have
been sUbjected to racial or
ethnic prejudice or cultural
bias because of their identity
as a member of a group without
regard to their individual
qualities.
October 23, 1981 9
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(2) Economically disadvantaged
individuals are those socially
disadvantaged individuals
whose ability to compete in
the free enterprise system has
been impaired due to
diminished capital and credit
opportunities as compared to
others in the same business
area who are not socially
disadvantaged. In determining
the degree of diminished
credit and capital
opportunities, the City shall
consider, among other factors,
the assets and net worth of
such socially disadvantaged
individuals.
October 23, 1981 10
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EXHIBIT A
SAMPLE AFFIDAVIT FORM
STATE OF
COUNTY ( C ITY OF
Affidavlt of Minorlty Buslness Enterprlses
I HEREBY DECLARE AND AFFIRM that I am the
(Title)
and duly authorlzed representative of
(Name of Corporation)
whose address lS
I hereby declare and affirm that as a minority business enterprlse (MBE)
as deflned by the City of Santa Monica in the speciflcatlons for
(Contract Number and Name)
the above-narneG firm \'J111 provide information requested by said Clty to dcoument
thlS fact.
I DO SOLEMNLY DECLARE AND AFFIRM UNDER THE PENALTIES OF PERJURY THAT THE
CONTENTS OF THE FOREGOING DOCUMENT ARE TRUE AND CORRECT, AND THAT I AM AUTHORIZED,
ON BEHALF OF THE ABOVE FIRM. TO MAKE THIS AFFIDAVIT.
(Afflant)
- ( Oa te )
STATE OF
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EXHIBIT B
ANNUAL MBE GOAL FOR THE PROCUREMENT CATEGORY
OF EQUIPMENT, MATERIALS, SUPPLIES AND
PROFESSIONAL SERVICES
The City's overall MBE participation goal for the
procurement category of equipment, materials, supplies and
professional services for the Fiscal Year 1981-82 shall be 2
percent. In arriving at this goal, the City has evaluated its
total procurement expenditures, as well as the other factors
enumerated on Pages 6 and 7 of the Program.
As noted in the Program on Page 3, the MBE
participation goals for the contract category of construction
work shall be established on a project by project basis.
October 23, 1981
12
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DISTRIBUTION OF RESOLUTION
Jf ~3!~
ORDINANCE If
CouncIl Meeting Date
, -:J
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Introduced:
Agenda Item #
q _ J? (" t't -: I Ad d
I '-~ ., /)'//,,'1'"7 opte :
Was It amended?
VOTE:
AffirmatIve:
NegatIve:
Abstain:
Absent:
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DISTRIBUTION:
-
ORIGINAL to be slgnedt sealed and flIed in Vault.
NEWSPAPER PUBLICATION (Date:
)
)
Department originating staff report (
C1 tv Attornev ,Ht-!^:.-A...fJ...e__ L...)~~-ct T,fr...~. ? 6~L.4/ ) ,
, , _ ../ ~ (,;-..V, __ _ /
Agency mentIoned In document or staff report
S-
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(certIfied")
Subject file (agenda packet)
~~
Counter file
Others.
Airport
ParkIng Auth.
~-~
Planning
i/
AuditoruID
BUlldlng Dept.
Police (en-
forcement?) /
~ha~ /
~ Recr/Parks _ ~
/ ~port~ 1-/
Treasurer
EnVIron. Servo
FIndnce
Fire
E:ai~
Library
~ / ~Jj
~,
~
Manager
p:
SEND J:.WO"" COPIES OF ALL ORDINANCES
TO CODED SYSTHIS A ttn Peter MClSleacie Others.,
PROFESSIONAL tCENTER Total
ROUTE 71
BRIELLE, NEW JERSEY 08730
TOTAL COPIES '
/I" .
c!g-ct/C-!-
GS:SES:KS 4t Santa Monica, Californ~ October 27, 1981
City Council Meetlng 10-27-81
RESOLUTION NO. 6386
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA MONICA ADOPTING
THE SANTA MONICA MINORITY BUSINESS
ENTERPRISE PROGRAM
WHEREAS,
recent
changes
in
Federal
Rules and
Regulations require the City of Santa Monica to adopt a Minority
Business Enterprise Program in order to be eligible to receive
financial assistance; and
WHEREAS, the continuing receipt of Federal funds is
essential for current and future expenditures of the City of
Santa Monica; and
WHEREAS,
the
participation
in Federally-assisted
projects by minority or female owned businesses ;s encouraged by
policies incorporated in the Santa Monica Minority Business
Enterprise Program,
1
GS:SES:KS _ Santa Monica, californe. October 27, 1981
City Council Meet""g 10-27-81
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1.
To adopt the Santa Monica Minority Business
Enterprise Program attached hereto and incorporated by reference.
SECTION 2. To direct the City Manager to submit the Santa
Monica
Minority Business Enterprise Program to appropriate
Federal agencies for their approval.
SECTION 3. The City Clerk shall certify to the adoption of
this resolution and thenceforth and thereafter the same shall be
in force and effect.
APPROVED AS TO FORM:
~~.~'-~
Ci ty Attorney -
2
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ADOPTED AND APPROVED THIS
3rd
DAY
OF
~ovembeT
, 1 981 .
{/11A YOR II
! HEREBY CERTIFY THAT THE FOREGOI~G RESOLUTION
NO. 6386
WAS DULY ADOPTED BY THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AT A REGULAR MEETING THEREOF HELD ON
November 3
, 1981 BY THE FOLLOWING COUNCIL VOTE:
AYES:
COUNCILMEMBERS: Conn, Edwares, Press, Zane,
Mayor Yannatta Goldway
NOES:
COUNCILMEMBERS: None
ABSENT:
COUHCILMEMBERS: Jennings, Reed
ABSTAIN: COUNCILMEMBERS: None
ATTEST:
~7q~
C I T Y C L ER K
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CITY OF SANTA MONICA
MINORITY BUSINESS ENTERPRISE PROGRAM
FOR FEDERALLY ASSISTED PROJECTS
1. POLICY
The City of Santa Monica (hereinafter called l'City"), a
recipient of Federal financial assistance from various Federal
agencies (hereinafter called "Government"), is committed to a
Minority Business Enterprfse Program (hereinafter called
"Program"), in accordance with Federal Regulations issued by the
Department of Transportation (hereinafter called "DOT"), on March
31, 1980, July 3, 1980, and on March 12, 1981, (49 CFR Part 23}
(hereinafter called "Regulations").
It is the intention of the City that minority business
enterprises shall be afforded every practicable opportunity to
participate in the performance of contracts relating to the
City's Federally-funded projects. The City is determined to
provide opportunities for MBE participation in the competitive
bidding process for the City's contract requirements through the
establishment of the procedures outlined herein. This program
shall apply to all Federally funded projects and programs.
It is the policy of the City to establish participation
goals for business enterprises owned and controlled by minorities
and by women, in accordance with the following standards:
A. Goals shall be estabished for minority or
women controlled firms in the following
categories:
1) Operating services, supplies,
materials, and equipment in programs
funded all or in part by Federal
monies (for which an annual overall
partiCipation goal shall apply); and
2) Construction projects funded all or in
part by the Government (for which
goal s shall be set on a proj ect
basis}.
B.
Goals shall be based
contract awards and the
the total contracts
estimated for any given
on projections of
size and nature of
and procurements
year.
October 23, 1981
1
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C. Goals shall be related to the availability
of MBE's who have the capability to
perform the types of services or to
furnish the types of procurements which
will satisfy the City.s projected contract
needs during tbe course of a given year.
II. OBJECTIVES OF THE MINORITY BUSINESS ENTERPRISE PROGRAM
The objectives of this program are:
A. To identify business enterprises owned and
controlled by minorities and by women
which are qualified to provide the City
with required materials~ goods~ and
services.
B. To develop procedures which will acquaint
prospective minority business enterprises
with the City's contract activities and
requirements.
C. To develop the necessary
inter-departmental relationships within
the City which will facilitate
implementation of this program.
D. To assist in the improvement of the
economic level of minority business
enterprises in the Santa Monica Bay Area
by providing opportunities for the award
of Government-funded contract work to
firms owned and controlled by minorities
and by women.
III. DESIGNATION Or LIAISON OFFICER AND SUPPORT STAFF
The MBE Program shall be administered by the City's
Administrative staff under the direction of the City Manager.
Each individual Government-funded project or program is
administered by departmental administrative staff which will also
be responsible far the day-to-day implementation of the MBE
Program as it relates to particular projects. The City Manager
and staff shall coordinate the overall program.
IV. FOR CONTRACTS
The City shall use affirmative action techniques to
facilitate MBE partiCipation in contracting activities.
October 23~ 1981
2
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V. USE OF BANKS UNDER MBE CONTROL
If the City at any time needs to bank funds received
from Federal agencies, then this MBE Program shall a1so apply to
the selection of banks for deposit of those funds within the
Santa Monica city limits or such other areas as may be selected
by the City Council. If no such banks exist, then the goal shall
be zero.
VI. MBE DIRECTORIES
The City shall maintain directories of local MBE firms
with capabilities relevant to general contracting requirements
and to particular solicitations. These directories will be
available to bidders and proposers on Government-funded City
projects.
VII. MBE PROGRAM IMPLEMENTATION
The staff designated under Section III of this procedure
(hereinafter called the "Project Review Committee"), shall
provide individual project review. This group shall assist in
the implementation of this program and make recommendations to
the City Council with respect to the establishment of annual
overall participation goals for the procurement categories of
professional services, supplies~ materials, and equipment and
contract participation goals for individual construction
projects. In addition~ these designated staff members shall
review all bids submitted for Federally-assisted contracts,
evaluate the MBE participation included in each bid, determine
the eligibility and proper certification of the various MBE's
listed by the bidders for partiCipation in the contract work, and
take all necessary actions to assess the responsiveness of said
bids relative to the applicable MBE requirements for such
contracts. A statement shall be made to the City Manager and the
City Council which presents the compliance of the various bidders
with the applicable MBE requirements and which recommends award
of the subject contract to the lowest responsible and responsive
bidder.
MBE PERCENTAGE GOALS FOR THE DOLLAR VALUE OF WORK ON
CONSTRUCTION PRUJECTS
MBE goals shall be established by the Project Review
Committee for each construction project. It is the intention of
the City that the MBE goal for each contract be achieved. Goals
may be established for minority-owned and women-owned firms by
setting percentage ranges, coupled with an overall MBE
participation goal for each project. The contract goal
established for a given project shalT be specified in the
contract specifications.
v r r I .
October 23, 1981
3
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IX. AWARD OF CONTRACT
A. General Statement. The City shall award
construction contracts to the lowest
responsible and responsive bidder. A
bidder that fails to achieve the specified
MBE goals may be condsidered eligible for
award of contract only if it can
demonstrate having made sufficient good
faith efforts to meet the goal as outlined
in the regulations. If such efforts
cannot be documented by the bidder~ then
it shall not be deemed uresponsibleu and
therefore, shall be ineligible for award
of the contract.
B. Determination of Lowest Responsible and
Responsive Bidder
1. Evaluation of Bids. After the bid
opening, the Project Review Committee
shall evaluate all bid proposals and
required information submitted by
bidders for the contract to determine
a recommendation for award of the
contract to the lowest responsible and
responsive bidder.
2. Eligibility of MBE's. The MBE's
1 i s t e d by bid de r s for' p a" r tic i pat ion i n
the contract work shall be listed in
the Cityls MBE directories. The
Committee may also accept MBE's
certified by Federal Government
agencies.
3. Determination of Amount of MBE
part1cipat'on~ The percenta~e goal as
established by the Project Review
Committee shall be the standard used
to evaluate whether bidders have
satisfied the MBE contract
requirements. A bidder shall not be
credited for exceeding an MBE goal.
C. Bidders Meeting MBE Goals. A bidder shall
submlt a written assurance with the bid
proposal that the MBE contract goals have
been met or that reasonable efforts have
been made to meet the goals. In addition,
at the time set in the contract
specifications. the bidder shall also
submit all other information required by
October 23, 1981
4
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the regulations. MBE subcontractors~
suppliers, and manufacturers must perform
a commercially useful function in the work
of the contract in order for their
contribution toward the total contract
work to be included in the MBE contract
participation percentages.
D. Bidders Not Meeting MBE Goals. A bidder
wno does not meet tne MBE goals shall
submit a report documenting that the
bidder made sufficient reasonable efforts
to meet the goals. This report shall
follow the format outlined in the
regulations.
E. Recommendation Process for Award of
~ontract. rhe ProJect Revi.w Committee
shall review all information submitted by
the bidders and may request such
additional information from a bidder as
may be necessary to determf ne . MBE goal
compliance.
If a bidder does not meet the MBE goal, yet is low bid,
then the Project Review Committee may recommend award of the
contract to said bidder if it can document that a good faith
effort was made to meet the MBE goal as outlined in the
regulations. If such documentation is not submitted, the Project
Review Committee cannot deem said bidder to be "responsible".
Following the determination by the Project Review
Committee of the lowest responsible and responsive bidder, it
shall prepare a statement on such low bidder's compliance with
the MBE policy for review by the City Council at the time that
the contract award is considered. If the City Council disagrees
with staff's recommendation regarding the responsible low bidder~
it shall reject all bids or refer the matter back to staff for
further evaluation and recommendation. The decision of the City
Council on the award of the contract, if such a decision is made,
shall be final and binding on all parties.
F. Substitution of Subcontractors. If a
contractor, after award, should request
the substitution of a subcontractor
pursuant to the Subletting and
Subcontracting Fair Practices Act
(California Government Code Section 4100
et seQ.), the contractor shall replace an
October 23, 1981
5
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MBE subcontractor with another MBE
subcontractor if such actlon is necessary
to maintain the required level of MBE
participation. In the event that a
contractor having made sufficient
reasonable efforts to find a substitute
subcontractor, is unable to do so, the
contractor may use a non-MBE
subcontractor, sUbject to the approval of
the City.
X. MATERIALS, SUPPLIES, AND PROFESSIONAL SERVICES
A. Goal for Materials, ~upplies, and
Professional Services. The City Co~ncil,
upon recommenaat1on of the Project Review
Committee, shall establish an overall goal
for MBE participation in the City's
procurement of equipment, material,
supplies, and professional services in
programs funded all or in part by Federal
monies. Exhibit B, attached hereto and
incorporated herein by this reference,
sets forth this goal. It is the intention
of the City that the annual goal be
achieved. In establishing this goal,
appropriate City staff and the City
Council shall consider the following
factors:
1. The overall projection of contract
awards in the particular areas.
2. The availability of firms owned and
controlled by minorities or women 1n
each category or area of specialty.
In defining the geographic area for
determining availability, the City
shall follow the same approach it
takes with respect to non-MBE firms
for a type of procurement.
3. The dollar amount and percentage of
procurement projected to be required
from nsole-source" vendors.
4. A comparison of the goal established
for the previous year to the actual
percentage utilization for that year
and the experience of the City in
obtaining participation in its
procurement and professional services
contracts from firms owned and
controlled by minorities or women.
October 23, 1981 6
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5. Unique characteristics of the
procurements of equipment~ supplies.
materials, and professional services
proposed far the following year.
6. Any suggestions and information
developed from the City staff,
industry, and professional sources and
other public agencies.
7. Any other relevant criteria.
B. Annual Evaluation. At the end of each
fiscal year, City staff shall review the
overall MBE goal for the procurement
category of equipment, materials,
supplies, and professional services and
shall furnish the City Manager and City
Council with a report documenting the
overall percentage participation of firms
owned and controlled by minorities or
women. Also, this report shall recommend
an overall MBE participation goal for the
new fiscal year.
Following this review process, the City Council may
determine that it is necessary or appropriate to review the
preceding year's goal. In such event, the revised goal shall be
submitted to the Government and Exhibit B shall be amended
accordingly.
XI. PROJECTS EXEMPT FROM THIS PROGRAM
A. Transit Vehicle Procurements. The
acquls1tlon of translt vehlcles is
categorically exempt from this program.
B.
Other
other
exempt
be made
Projects. In addition, certain
projeits. may be designated as
from this program. Exemptions may
in the following circumstances:
1. Projects in which there are no known
MBE Contractors, subcontractors, or
suppliers who are in the business of
supplying the labor, materials,
equipment, or services sought in a
particular procurement or construction
contract.
October 23, 1981 7
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2. Projects consisting of only one or two
subtrades may be exempt from specific
MBE contract goals due to the fact
that setting participation goals for
projects with such limited
opportunitites for sub-bids could
result in restrictive bidding.
These exemptions do not imply relief
from efforts to solicit MBE bids and
sub-bids. The City will make efforts
to solicit bids from MBE1s and require
that contractors solicit MBE sub-bids
for these projects whenever possible.
XII. DEFINITIONS
A. Minority Business Enterprise. A minority
Dus1ness enterprise is a small business
concern which is owned and controlled by
one or more minority persons or by women.
1. Small Business Concern. A small
business concern shall mean an
enterprise whith is independently
owned and operated and which is not
dominant in its field of operation and
which further meets the criteria
established by the Small Business
Administration as set forth in Section
3 of the Small Business Act (15
U.S.C.A. Section 632) and the
implementing regulations (13 CFR 212)
as amended.
2. Owned and Controlled. Owned and
control led means a small business
concern whose management and daily
business operations are controlled by
minority persons or by women; and
which is (1) a sole proprietorship
legitimately owned by an individual
who is a minority person or a woman;
(2) a partnership or joint venture in
which at least 51 percent of the
beneficial ownership interest
legitimately is held by minority
persons or by women; or (3)a
corporation or other entity, including
a publicly owned business, in which at
least 51 percent of the voting
interest and 51 percent of the
beneficial ownership interest (i.e.,
October 23~ 1981 8
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stock) legitimately are held and owned
by minority persons or by women.
3.
Minority Persons. A
15 a person wno lS a
permanent resident
States and who is:
minority person
citizen or lawful
of the United
a. Black (a person having origins in
any of the black racial groups of
Africa);
b. Hispanic (a person of Spanish or
Portuguese culture with origins in
Mexico, South or Central America,
or the Caribbean Islands,
regardless of race);
c. Asian American (a person having
orlg1ns in any of the original
peoples of the Far East, Southeast
Asia, the Indian Subcontinent, or
the Pacific Islands); or
d.
American Indian and Alaskan
(a person having origins in
the original peoples of
America).
e. Members of other groups or other
individuals found to be
economically and socially
disadvantaged as defined below.
In determining whether a firm is
economically and socially
disadvantaged, the City shall use
the specific criteria developed by
the Small Business Administration
under Section 8 Ca) of the Small
Business Act, as amended (15
Section 637 (a)) and implementing
regulations.
Native
any of
North
(1) Socially disadvantaged
individuals are those who have
been sUbjected to racial or
ethnic prejudice or cultural
bias because of their identity
as a member of a group without
regard to their individual
qualities.
October 23, 1981 9
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(2) Economically disadvantaged
individuals are those socially
disadvantaged individuals
whose ability to compete in
the free enterprise system has
been impaired due to
diminished capital and credit
opportunities as compared to
others in the same business
area who are not socially
disadvantaged. In determining
the degree of diminished
credit and capital
opportunities~ the City shall
consider~ among other factors)
the assets and net worth of
such socially disadvantaged
individuals.
October 23~ 1981 10
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EXI..!:B:T ;.
S~~.dPLS AFF:DAV I~ F::Rt~
ST~TE O~
CaU~~7Y {::TY OF
!if"" cav' t of r1110rlty 9us 1 ~ess Er.terpr'ses
- ~ERE9v DECLARE ~ND AFrIR~ that: am tre
(Tltle}
ane auly authorlzed repreSentatlve of
(~ame of Coroorat1on)
whose address 1S
I ~ereby ceclare and afflrM that as a minor]!y bus11ess ente~prlse ~MBE)
as jef1ned JY :he :lty of Santa ~onlca in the spec,f1cat1ons for
;Contract ~u~ber and Name)
the above-naTed ~,~ ~,11 provlde ln~orTat1Gn ~equEs:ed Dy sald Clty to dcou"-ent
;;'11 5 fac"!:
I 00 SOL;::MNL Y DECLo\RE Ar-:D AF;:T~M UNon Tr.E PE:!AL TIES OF ilERJURY ~~AT THE
:O~TENTS OF T~E FOREGOlNG DOCU~ENT 4RE TR~E ~ND :OR~ECT, AND T~AT I pM ~UTHORIZ~D.
ON BEHALF OF THE ABOVE F:RM, TO VAKE THIS AF~IJAVIT
(Aff'ant)
,Date)
STATE JF
CCUNTY (CITY) OF
day of
, 1981, before 7e,
On t'11 S
, the unders1gned offlce~, personally appeared
, known to ~e to oe the person describec 'n
the foreg01ng ~ff1dav1t and ackpowiedged ~hat he (s~e) executed ~~e sare ]n :re
caoacity tr,e~e'n stated ana for t~e ~urDoses tr.ere1n contalneo
:r Wl:~ess thereof, I rereunto set ~y ~ana and off1clal seal.
('1otary?u!Ji1C)
~y Comw1ss'on =X~lres
OctO;Jer 23. :gp~
!~
e
.
EXHIBIT B
ANNUAL MBE GOAL FOR THE PROCUREMENT CATEGORY
OF EQUIPMENT, MATERIALS, SUPPLIES AND
PROFESSIONAL SERVICES
The City's overall MBE participation goal for the
procurement category of equipment, materials, supplies and
professional services for the Fiscal Year 1981-82 shall be 2
percent. In arriving at this goal, the City has evaluated its
total procurement expenditures, as well as the other factors
enumerated on Pages 6 and 7 of the Program.
As noted in the Program on Page 3, the MBE
participation goals for the contract category of construction
work shall be established on a project by project basis.
October 23, 1981
12