HomeMy WebLinkAboutM-90-0477eonoraoie Mayor ana
TO: Members of the City
Commission
FROM : Cesar H. Od
City Manager
RECOMMENDATION
DATE : 1j W j i 13 199U FILE
,Consultant Contract
SUEUECT: for M/WBE Disparity
Study
REFERENCES:
ENCLOSURES:
It is respectfully recommended that the City Commission authorize
the City Manager to negotiate and execute a contract, in
substantially the attached form, with the firm of KPMG Peat
Marwick, in association with Steel, Hector & Davis and H. Fox
Associates,'Inc. The purpose of this contract will be to conduct
the research required to prepare a report containing the extent
of disparity that exists between the City's procurement with
Hispanic, Black and women -owned businesses and others and to
design a prescriptive plan for the utilization of Hispanic, Black
and women -owned businesses to reduce any identified disparity.
This contract will not exceed $100,000, the funds for which have
been identified in FY190's budget. (See attachments)
BACKGROUND
Last year, the City Attorney advised the City Commission (see
attached) that a January, 1989 Supreme Court decision rendered in
the case of the City of Richmond vs. the J.A. Croson Company
dictated the need for the City to have what is commonly referred
to as a "Minority Business Disparity Study", prepared to support
the City's Minority/Women Business Affairs and Procurement
Program, should we be similarly faced with a legal challenge. At
the Commission's directive to conduct t►iis study, funds were
allocated for this activity in this year's budget, based upon a
survey of the amounts allocated for similar studies by the Dade
County School Board - $180,000, Metro -Dade County - $425,000;
Broward County Inter -Local - $250,000, and the State of Florida
$750,000.
At your directive to reduce the originally allocated amount for
this study to $100,000, we did so and received a response (see
attached) from the originally recommended firm, D.J. Miller &
Associates, declining the opportunity to negotiate a contract to
prepare the Disparity report at this amount. Subsequently, we
contacted three local firms, who had expressed an interest in
90- 477
Honorable Mayor and Page 2
City Commission Members Consultant -
Disparity Study
conducting this study, regarding their ability and continued
interest in the project.
Resultantly, we are recommending the firm of KPMG Peat Marwick in
association with Steel, Hector & Davis and a female -owned firm,
H. Fox Associates, Inc. The combined accounting and legal
expertise of these firms along with the statistical research
experience of H. Fox Associates is the basis for this
recommendation.
A
Al
i
1
I
I.
SCL CIAL, PROGRAMS AND ACOOLUM
BUDG4:IJ.
BUDC it
FYI 89
FYI 90
C41ANGE
Miscellaneous
Contingent Fund
$ 612,974
$ 655,787
$ 42,813
Miami congressional Workshop
15,000
15,000
-0-
Reim. for Official EUnctions
75,000
75,000
-0-
International Salsa
50,000
50,000
-0-
anployee drug Screening
30,000
30,000
-0-
Pre-erTloyment Physical.
-0-
65,000
65,000
Reimbursement - Abandoned Cars
20,000
20,000
-0-
Gibson Memorial Oratorical.
10,000
15,000
5,000
a mission on Status of Wcmen
25,000
25,000
-0-
Book Fair
75,000
75,000
-0-
Street Lighting
4,155,000
4,155,000
-0-
Job Outreach Project
49,000
-0-
(49,000)
Coconut Grove Playhouse
50,000
50,000
-0-
Special Events
200,000
200,000
-0-
Aviation Avenue Building
520,000
5001000
(20,000)
Financial Services
-0-
100,000
100,000
_
Police Recruitment
90,000
-0-
(90,000)
tam (Maximo Gwez Park)
-0-
35,000
35,000
Kizarnba
25,000
50,000
25,000
Debt Service - Parks Bonds
683,323
786,360
103,037
Goverrn-sent of Haiti
67,500
-0-
(67,500)
_-
Bay of Pigs veterans Assoc.
25,000
25,000
-0-
Now Music America
30,000
-0-
(30,000)
Debt Service-liiousing Bonds
411,853
-0-
(411,653)
Reserve - Self Insurance
1,000;000
11000,000
-0-
Affirmative Action Plan
45,000
45,000
-0-
coconut Grove Care
20,000
20,000
-0-
Dade Miami Criminal Justice council
35,000
-0-
(35,000)
International Trade Promotion
525,000
681,195
156,195
Minority 6 Woman Business Affairs
150,227
188,703
38,476
industrial ng sneering
703,463
703,463
-0-
Mw agement Audits
400,000
480,000
80,000
Strategic Planning
375,000
442,052
67,052
�.
Office of Professional C7anpliance
259,123
231,437
(27,686)
-A
Say Front Park Trust
-0-
245,382
245,382
CmVrehensive Planning Consultant
-0-
78,000
78,000
Set Aside Ordinance
-0-
125,000
125,000
Sunshine Stacie Bonds
-0-
612,756
612,756
-
Economi.c Cbn ultant
-0-
48,000
48,000
Miami New World Canter
-0-
50,000
50,000
Special Assestmt District Taxes
-0-
56,000
56,000
BTloyee Training
-0-
20,000
20,000
Subtotal
10,732,4r3
$11,954,13
1,2210 76
Total
34,370,492
$34,670,471
0 299,979
13
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AMtUIIL
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i
l 004=T5
IT1rFjtNAL. Smv CIMES PRINT SHOP
0.0
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125.300
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—
SECT:aN 81
D.J. Miller & Associates
Jay.
8
June 4, 1990
Ms. Adrienne McBeth
Office of Minority & Women
Business Affairs
300 Biscayne Boulevard Way
#400
Miami, Florida 33131
Dear Ms. McBeth:
You will recall that our estimate for conducting a disparity study Is $200,000. While we
never reached detailed negotiations during the selection process, based on our
extensive experience and considerable expertise, we believe this to be an accurate
estimate. As we discussed, there are tasks with which the City could assist, allowing
for some reduction, but without negotiating a detailed work plan, it is impossible to
accurately reflebtany cost reduction. Further, you will recall that this figure Is premised
on several assumptions regarding the availability and retrievability of the database
necessary to conduct the study. The invalidity of any one of these assumptions could
impact our cost estimate.
The City of Miami disparity study may be the single most important Initiative
undertaken by the City on behalf of the minority and women business constituency in
this century. It will provide the foundation for continuance of a race -conscious program
designed to bring parity to business relationships between MWBEs and the City. In
that light, It is more than a minority Issue, it Is an economic development concern
which has major implications for the future economic well-being of the Ctty of Miami.
We were quite surprised at the cavalier and almost disrespectful treatment of the
subject matter by the City Commission last week. it is unfortunate that this matter was
not handled In the same atmosphere and with the same consideration as a financial
audit, begause it is equally, If not more Important.
D. J. Miller & Associates has the established expertise, experience and track record to
conduct your disparity study. Moreover, our familiarity with the minority and women
business community would afford you some economy -of -scale in both cost and time.
We pride ourselves on a quality work product, however, and will not compromise our
so 4
615 Peachtree Street. Suite 911 * Atlanta, Georgia 30309 *404/976.75M * FAX: 404/976-205
Y d
Ms. Adrienne McBeth
Page 2
professional integrity or the quality of work essential for this study by accepting a fee
which we know at the outset to be wholly inadequate. We would hope that the
commitment of the City of [Miami would not allow this either. We must, based on your
current offer of $100,000, decline to assist you with the proposed disparity study.
Thank you for your consideration of our firm.
Sincerely, A
g,4,o� aPA/
Clara H. Axam
D. J. Miller & Associates, Inc.
CHA/aw
=; JUN-20—SO WED 1 1 :44
MW
Peat Marwick
Certified Public Accountants
One Owne Tower
suite 2000
2 South Olecoyne Boulowd
Mleml, A 33131
Ms. Adrienne Macbeth
Office of WWB Affairs
300 Biscayne Boulevard Way
Suite 400
Miami, F1. 33131
Dear Ms. Macbeth:
P.02
Ioiophone 305 3N 23M Tetvc60er 305 677 0544
ECEIVED
June 13, 1990 �UN 14 1990
r
City of Miami
NW*i'Wm hbo AIM
We are pleased to express our continued interest in conducting a Minority Business Enterprise
Disparity Study for the City of Miami (the City).
The scope of this study was described in detail in our proposal dated February 23, 1991J. This
proposal was prepared in accordance with the terms established in your invitation for Letters
of Interest and Qualifications.
We would be able to provide the services specified in our proposal for $100,000. KPMO Peat
Marwick, Steel Hector & Davis, and H. Fox Associates, Inc. arc participants in the Disparity
Study recently commissioned by the State of Florida Department of General Services. We
anticipate that certain economics can be achieved due to our involvement in that study.
The $100,000 budget should be adequate to enable us to conduct a iogally sound and
statistically rigorous study.
We look forward to discussing with you any questions or cuncurns regarding tho study.
Very truly yourq,
KPMG Peat Marwick
44-ft 4r. "�
Waltvr F, Whitney
Partner
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