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HomeMy WebLinkAboutAgenda Statement 1985/08/06 Item 10 COUNCIL AGENDA STATEMENT Item — (0 8.---6.-Pr- Meeting Date-7123/85 ITEM TITLE: Resolution /a2-//3 Approving a Minority Business Enterprise/Women Business Enterprise/Section 3 Plan for Community Development Block Grant-funded projects SUBMITTED BY: Community Development Directo 5ths Vote: Yes No X ) REVIEWED BY: City Manager 1" A.de The U. S. Department of Housing and Urban Development (HUD) requires cities that receive Community Development Block Grant (CDBG) funds to "take affirmative steps" to assure that local , minority and women-owned businesses are utilized, whenever possible, for procurement activities, including construction contracting. During a recent compliance review by a representative from HUD' s Region IX Office of Fair Housing & Equal Opportunity (FH&EO) , the City was found to be in nonconformance with the HUD requirement stated above. The HUD-recommended method of complying with this requirement is by developing a Minority Business Enterprise (MBE)/Women Business Enterprise (WBE)/Section 3 (small and local business) Plan, which describes the steps the City and contractors will take to utilize these types of businesses; HUD therefore requested that we adopt such a plan. Attached to the resolution is a copy of a draft MBE/WBE/Section 3 Plan, which will be sent to HUD, upon your approval (Attachment A) . Included in the plan are definitions of MBE/WBE firms (page 6) and the requirements under Section 3 (page 1 ). RECOMMENDATION: That the City Council adopt a resolution approving a MBE/WBE/Section 3 Plan for CDBG-funded projects. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Attached to the report are copies of the HUD requirements for contracting with MBE/WBE/local firms (Attachment B) . Adoption of a plan would ensure that the affirmative steps that must be taken are properly identified and applied uniformly. If these steps are not taken, in the opinion of HUD, the City's entitlement funds could be withheld. The Fair Housing and Equal Opportunity officer who monitored the City sent copies of HUD-approved MBE plans, to use as guides for developing the City's plan. The other CDBG entitlement cities in the County, the Port District and the County were contacted to determine if they were using such a plan and, if so, what goals they were using for MBE/WBE participation, and what their accomplishments were. The following are the results: a Page 2, Item Meeting Dated reefs County: 15% overall MBE/WBE - Goal 21% overall - Accomplishment San Diego: 15% MBE/5% WBE - Goal Not known by San Diego staff - Accomplishment Port District (Lindbergh Field) : 2 G 25% overall - Accomplishment Escondido has recently developed a plan and will establish goals on a project-by-project basis. Its only current project has a goal of 10% for MBE and 1% for WBE. The cities of El Cajon, La Mesa, National City, and Oceanside do not have MBE/WBE plans. It appears that these cities have not been monitored by HUD's FH&E0 office for compliance with the MBE/WBE/Section 3 requirements. Based on the results of the polling, it is recommended that the City adopt MBE/WBE goals of 15% and 1%, respectively. The 1% goal for WBE reflects the fact that there apparently is not a large pool of women contractors nor an agency which acts as a clearinghouse for women-owned businesses. Staff will continue to seek such resources. The recommended goals are guidelines for the City to measure the effectiveness of the plan. These goals can be amended at any time, based on actual experience or accomplishments, if the Council desires. An annual report will be presented to the Council detailing the year's accomplishments. Members of the Engineering Department and Community Development Department will be responsible for carrying out the objectives of the plan. Staff will make contractors fully aware of the plan' s requirements at the time bid documents and plans are disbursed and will provide contractors with resources to contact to comply with the "good faith effort" requirements. A majority of contractors will undoubtedly be familiar with the requirements, if they have bid on federally-funded projects for the City of San Diego, the County or the Port District. Notices Inviting Bids will be published in general circulation newspapers and minority focus newspapers and will be sent to the Business Development Center and the Small Business Assistance Center in San Diego. The BDC, which is sponsored by the Minority Business Development Agency under the U. S. Department of Commerce, acts as a clearinghouse for minority-owned businesses, by assisting them with reviewing bid requests and plans and developing bid packages. Prior to the bid opening, bidding contractors must make good faith efforts to solicit MBE/WBE subcontractors and must submit a Contractor Questionnaire i bi t C of plan) i th effort to subcontractors l lower income perrsons plan) . f from the local must make a good fa area. Page 3, Item /d Meeting Date= 5 At a pre-bid award conference, City staff shall review the requirements of this plan. The apparent low bidder (contractor and subcontractors) must submit a Section 3 Employment and Contracting Plan Format (Exhibit B of plan) prior to this meeting. The low bid contractor must also submit a list of subcontractors, suppliers, truckers and owners/operators of equipment, indicating which of these are minority- or women-owned. The good faith documentation which must be submitted by the contractor is listed in Part VII of the plan. If a contractor hires or attempts to hire MBE/WBE subcontractors and low income laborers from the local area, he/she will meet the good faith effort requibedder sunl unless a bidder d will not be faith effort considered wase the lowest made responsible to obtain responsible minority- and women-owned businesses. If the City determines that the apparent low bidder did not make a good faith effort, the bidder has the right to appeal this determination before the City Council . The appeal procedure is listed in Part VIII of the plan. FISCAL IMPACT: will be a incurred in ensuring thattthe plan is plan.re no known dirct is followed. Staff S time costs WPC 1658H by the City Coincil of Chula VistE C zlr�ur,�ta Dated 7-.2 3— J S� A A etc _ 13