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HomeMy WebLinkAboutItem #30 - Discussion ItemL-1 26 CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANCUM Honorable Mayor and Members TO. of the City Commission FROM; Cesar H. Odio City Manager February 20, 1987 BATE: FILE: SUBJECT: Miami Tel e-Communications Inc.: Affirmative Action and Minority Procurement REFERENCES: ENCLOSURES: Memo Following is an analysis of the compliance of the cable television licensee with the provisions of Article XI of the City of Miami Cable Television License Ordinance relating to affirmative action, local purchasing and hiring, and minority business enterprise participation. The analysis uses information derived from Miami Cablevision's Annual Report for 1986, dated January 15, 1987. (Effective January 16, 1987, the licensee became Miami Tele-Communications, Inc.) Affirmative Action Section 1103 (a) of the cable license ordinance requires that the licensee make a positive and good -faith effort to hire minorities, women and other protected groups if available and qualified. The attached evaluation by Hattie Daniels, Assistant Director, Department of Internal Audits and Reviews, finds that although improvement occurred in the past year, serious deficiencies still exist in a number of areas. Miami Tel e-Communications, Inc. has stated its intention to comply fully with the provisions of the cable license ordinance and to correct problems that existed under previous management. Therefore, Miami Tele-Communications, Inc. has been requested to submit to the City Manager for approval, by April 1, 1987, a written affirmative action plan in accordance with the provisions of Section 1103. This plan should indicate how Miami Tele- Communications, Inc. will achieve the requirement of the ordinance that the percentage of each minority/sex group within each level of employment (including top management, middle management, and supervisory and technical positions) must reasonably approximate or be equal to the racial and ethnic composition of the City. Miami Tele-Communications, Inc. has also been requested to submit, in accordance with Section 1103 (d), the affirmative action plans of its significant subcontractors, parents, subsidiaries, and affiliates, covering their activities in Miami. Ti'S G U SSi,4N 0 7 Honorable Mayor and -2- Members of the City Commission February 20, 1987 Additionally, Miami Tel e-Communications, Inc. has been requested to provide reports reflecting its progress toward meeting equal employment goals on a quarterly basis, supplementing its required annual report. These reports will be made on forms supplied by the City of Miami, and will make monitoring more timely and effective. Local Purchasing and Minority Business Enterprise Participation Section 1101 of the cable license ordinance requires the licensee to use firms located in the City, insofar as practicable. Section 1106 requires reasonable and good faith efforts by the licensee to procure from or use qualified minority business enterprises for twenty (20) percent of the total dollar amount of any and all contracted expenditures by the licensee (excluding factory direct purchase terms or items purchased from a sole source of supply), with the 20 percent equally allocated among black and Hispanic minority business enterprises. The licensee reports that in 1986 the total dollar amount of all contracted expenditures (as defined in Section 1106 of the license ordinance) was $1,032,189. Local purchases amounted to a total of $564,897, with $410,543 going to local minority businesses. Calculated as a percentage of the total dollar amount, minority participation is 39.7%; calculated as a percentage of the total local dollar amount, the percentage rises to 72.7%. With regard to the allocation of participation to black and to Hispanic firms, 85%, or $350,233, of the company's purchases from minority businesses went to local Hispanic businesses; 15%, or $60,310, went to local black businesses. The cable licensee has exceeded the goal of 20% procurement from minority businesses. However, procurement from Hispanic and black businesses is far from equally allocated. The licensee's 1986 year-end unaudited financial statements were used for this analysis, with additional information furnished by Mr. Barry Kerr, System Manager, Miami Tele-Communications, Inc., regarding expenditures subject to the provisions of Section 1106 of the Cable Television License Ordinance. An independent audit has not been performed. RA Honorable Mayor and -3- Members of the City Commission February 20, 1987 Spanol Communications The Cable Television License Ordinance encourages minority business enterprise participation and local hiring and purchasing. To the extent that can be determined from the licensee's reports presently available to the City, Miami Tele- Communications, Inc. is currently in compliance with the 20% minority business participation provision of the license ordinance. However, it should be noted that the contract with Spanol Communications, a Hispanic business, accounted for 62% of the licensee's reported minority participation. Without Spanol, if all other minority business participation remained the same, the percentage of minority participation would fall to 27% of total dollar amount of local contract expenditures, and to 15% of the total dollar amount of all contract expenditures. As far as any breach of contract, it would be a matter between Spanol Communications and Miami Tele-Communications, Inc. CHO:MSS 3 CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO. Sue Smoller Cable Administrator Hattie M. Daniels, s a.v�Dkctor FROM- Department of Inter ai Audi is and Reviews DATE: February 19, 1987 FILE. SUSPECT: Miami Cablevi Sion Affirmative Action Report - Evaluation REFERENCES: ENCLOSURES: Chart I reflects a total employment of 145; 16 (11%) White, 40 (28%) Black and 89 (61%) Hispanic. These figures reflect equity with the City of Miami population of 19% White, 24% Black and 60% Hispanic. Chart II presents a profile of the department by gender. Males represent 66% (95) and females 34% (50). Women are underrepresented at 34% compared to 53% of the population. Underrepresentation is defined as having less than seventy (70) percent of the percentage of that minority group in the population. For women 70% of 53 woul d be 37%. The number and percentage of females have declined each year from 1984 representing 44% (85), 38%(57) and 34% (50) each year respectively. Section 1103, EEO, of the Cable license ordinance requires a representative workforce wherein the percentage of each minority/sex group within each level of employment must approximate or be equal to the ethnic composition of the City. An assessment of Miami Cablevisfon's achievement of this requirement reflects an increase in minority representation in the management/supervisory level. Blacks increased from 2 (12%) to 6 (23%). Similarly, Hispanics increased from 6 (35%) to 11 (42%). Although the number of women increased from 5 to 7 their percentage declined from 29% to 27%. The category of professional includes 1 employee, a Hispanic female, representing 100%. It was noted in last years report that Chart I and Chart II were not consistent. The error was not corrected in this years report. Again Chart I January 1986 shows 2 employees in the professional category and compared to 3 in Chart II. An additional error appears in Chart II January 1987. The total number of professionals should reflect 1 female. Blacks represent 55% (18) of the employees in the technical category, Hispanics 30% (10); and women 3% (1) unchanged from last year. Although the percentage of Hispanics increased from last.year 23% (8) to 30% (10) they along with women remain seriously underrepresented in this category. The company acknowledges that more intense affirmative action efforts are needed to increase the female applicants flow in this area. However, this is the same response as last year. It would be I/ ISM Sue Smoi ler February 19, 1987 Page 2 more appropriate to address the specific actions taken in 1986- 1987 to achieve this objective. This would demonstrate a "good faith effort" to increase female representation in the technical category. The clerical category is predominantly female 67%, 33 of 49 employees. Hispanics represent 67% (33) and Blacks 31% (15). Blacks increased significantly from lop to 31% which corrects a deficiency noted in last years report. The sales category which referred to incorrectly as paraprofessional exceeds the workforce representation for Hi spani cs at 94. (34) . In contrast 81 acks 3% (1 ) and women 22% (8) are underrepresented more seriously than, in 1986 at 8% (3) and 32 (13) re-spectively. The company reports no significant change and minority representation is compatible with the City's population. Direct Sales is a critical area in which Miami Cablevision should report the steps taken during this year to increase Black and female representation. Most of the recommendations ma de by the Ci ty regarding strengthening the affirmative action * reporting format of Miami Cablevision appear to have been ignored by the company. Job categories remain inconsistent with the Cable Communication Policy Act of 1984 and City reporting procedures. Additional documentation requested along with Affirmative Action Plans of subcontractors were never submitted. Therefore the evaluation of this report is based on the company's presentation on the status of affirmative action. In summary, the company has made progress in a number of areas. Minority and female representation as a function of total empl oyment approximates their complement in the population. Improvement is also shown in the management/supervisory category acid in achieving equity for Blacks in the clerical area. The company is not in compliance with Section 1103 as it relates to parity with the ethnic population within the technical and sales categories. The percentage of Hispanics increased from last year to 30% but remain underrepresented. Likewise women hold only 3% of the technical positions which was unchanged from last year. Similarly in the sales category, Blacks and women are seriously underrepresented at 3% and 22% respectively. The Ordinance further requires the Licensee to make a positive and good -faith effort to hire minorities and women if available 5V Sue Smoller February 19, 1987 Page 3 and qualified. This requires that affirmative steps must be taken to achieve this goal. It is unacceptable to merely state that minorities and women are unavailable or unqualified. Other than acknowledging that the problem exists no documentation was submitted to demonstrate efforts to remedy the deficiency. M I • ' ; MIM1I CAuLEVISION EEO STATISTICAL REPORT' - ,,JANUARY. 1981• ., ANNUAL .. REPORT `UPDATE-' i J(jbCAll ORY J A N U A R Y 1 9 8 6 C U R R E N T W B U TOTALS BY JOB CATEGORY N B II TOTALS BY JOB CATEGORY I•fvI(S;SUPEI(V• PRU1'tSSI0HAlS 'iKIMICIANS 9(537) 2(12y) 6(357) 17 9(357) 6(237.) 11(42%) 26 (: -0- 1(50%) 1(50y) 2 -0- -0- 1(10(A) 1 7(22%) 19(557.) 8(237.) 34 5(15%) 18(557.) 10(3(17.) 33 cinaLA1S 6(107) 14(25%) 37(657) 57 1(2%) 15(317.) 33(6r,) 49 PAi411' MiSSIONAL 3 (EY) 3 (M.) : 35 (M7.) 41 1(37.) 1(37) 34 (91,%) 36 145000) U1J'N�Y C.di 1UlA1S 25(167.) 39(267) 87(587.) 151(1007.. ' 40(287.) 89(61T) . •J 4) 1 i f f ro h CHART 11 MIAMI CABLEVISION MAI.E/rENALE' STATISTICAL REPORT iJANUARYJ987'' , ANNUAL REPORT UPDATE. J A11 UAItY 1986 CURRENT i 1.1ALES F EMALES TOTALS BY JOB CATMORY NA1.ES r ENAI.ES TOTALS PER JOBCATECOItY ?t F 14 D N 14 R !1 It F s}xt u;iLclbtY F! 8 fi ti R it SUPERV. 7(41r.) t(11',:} 3(17Y.) 2{Ill) -0- 1(3T/.) 3(17''/) 1(331) 12 1 5 2 i7(277.) -0- 5(1`%,) -0- 7(277.) -0- 2(37.) -O- 1(47.) -0- 4(157) 10007) t9 -0 - 7 -0- 1 — 33 1 4077) IR(557) 10007.) 1{37) -0- -0- 32 'tdJf u0b.) 190� U) 8(23%) I(A -0- -C- ut7'i�Y trim) 7{31r.) It(19i:) 4(7l) 6(l(t/.) 26(46`/.) 20 36 _0_.1 4(Si7) 12(247) '2(i(71"l.) 1(27) 11.('t2) 12l(4l7.} _16 11I. M4k _ Pout-* 3(74) t(rv:) 23(5G/_)1 -0- ,,• 7( �) 1,21,-) 12(2%) 42{271} 28 1-3 1(3",'.) 1.{3%} 5S(377) -0- 4(27_) -0- 17(9'7) 8(227.) 2R 8 114217) 95(ffl) uruiVlY Willis Iit(11'�) 31(2tt1.) r , f5(2rG) 8(57.) 94(fi2%} 57(31l7) 12(9X) 2R(19%.) COMPANY TOTALS 151' 1 . C011PANY TOTALS 145 E