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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 T 1 UTaM wr sFc;REPGQT W- �: - • '1F1�tSt�2' itFDC+p'' _ CF rXpoeXTURES BY SECTION D.t:ar3t AS CF 02/26190 05 F2SCAL. MGM' U pOQ'T20M OF YEW EXRSREC 41.aY 9; S AND AixOt� F7 31 6EpOR T SAYS ormim —; X SET tS= ONZM04E 1010 tt a 1 SAL. FIRC D0004 HGT RMATM PTUR E"114 t� xAFy �. BUCC�T Carib? YEN CL� Y-T-d I.JLST r-T-O r'irC1i:18RItNCE BCE mom C= DESCRZ?T:ON BUDGET AMtUIIL 67 i l 004=T5 IT1rFjtNAL. Smv CIMES PRINT SHOP 0.0 1 iS . Cc C I 0.0 125.300 :25.0&C — 3p0995 9GmG=T RESERVE a.o 125.400 67 j pgp4ECT 2000DO 5 T tas.�oe FWW 01 0_0 125.300 67 125.00 - 0.0 125,000 — 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 u M#"T*W fbmol iur"'s P" Mir wc-Y c4lwirtr