HomeMy WebLinkAboutR-84-0873_ A
J-84-289
5/25/84
rr/0-5 RESOLUTION NO, 84'8 73
A RESOLUTION CRFATINE A MINORITY
PROCUREMENT RT1) RIND V0HCi;E-R PROGRAM
WHICH E` TA1)1, TI I F i :i 1P01 1 F Y t E1_ATIVE TO
THE RF [III T R I H F N T ; Of 11 i 1) 11I1N1)5 FOR
MINORTTY FI(IN Olt CI1Y 1111111 TC yl0PAKS
CON5TRU('TiON1 PRil,-1FCINCr TN CITY
PROCUP1,;f:NI M t,0f)C`)' AN1i 111!'TC:!_5; SAIL)
POL IC Y All THOR J 11 NG CON I RACT PAYHENTS TO
BE: tMT1FD TO DF=SIGNATED I-INANCIAL
TNSI T TU1 TnNS.
WHEREAS. mnr�' than 50 ; of the population of the City of
Miami is compo.3ed o f 111a0<^ and Hi ,;panics; and
W1-1ERE=A57 131 acI<s and l I i spnni c s who occupy certain
professions and occupnti.ons, including, but not limited to,
architects, enq_incers, certified public accountants,
financial advisers, attorneys, general contractors, and
skilled members of building trades, have been
disproportionately under -represented in the pool of persons
who occupy positions in the foregoing trades or professions;
and
WHEREAS, the City Commission finds that the
disproportionate under -representation by Blacks and Hispanics
=r .
in the foregoing trades and professions has be err due to
denial of of7portur,it.ie:� for training, education, and
acquisition of ex1)crience by virtue of historical
discrimination t_a:3ed Upon racez or national origin; and
WHEREAS, the City Commission finris that the foregoing
denial of opport unlit y ha:; caused diserimina,tion against
Blacks and Cti:iprirric:.s in t_he foregoing professions and trades
when they seel< business opportunities in the form of City
procurement contracts; and
WHEREAS, the City electorate has approved a Charter
Amendment authorizing certain changes in the City's general
purchases procedure which would improve small and minority
® business participation in City procurement activity; and
MMM
CITY C 014MISS11',!
MEETING or
JUL 31 1
WHEREAS, the City Manaqer has found that the risks for
the City associated with the modification of the hid bond
policy are manageable and minimal romp rc ri to I,he=3mnunt paid
indirectly by thr: City or directly 1)y 1.1-1e small minority
business, n, rosf s=snoci nt erl with the Ci ty' s current hid bond
requirements: 3nc_1
WHEREAS, this resolution will prevent 11he perpetuation
of the effccl_s of prior unwarranted discriminat.ion Vrhic..h has
heretofore impaired or foreclosed opportun.it ies for- Blacks
and Hispanics to provide (Inod ,, ervices3, supplies,
equipment, Turn i-rthings, and fi-xte_arr s, t.o t.hc Ci t.y; and
Il-IEREAS. the Ci.t.y of th ninj plans to pursue its policy of
affirmative nction to make whole the victims of prior
discrimination by the City; and
WHEREAS, adoption and implementation of this resolution
will serve the best interest of the City and will maximize
the opportunity for sma11 business concerns owned and
controlled by Blacks and Hispanics to participate in
expenditures of the City for goods and services;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. A minority procurement bid bond voucher
program is hereby created %jhich estahl -ishes a policy relative
to the re.quirementS of b:id hond�-for minority firms on City
Public !forks ;and construct io;3 131-0 IrCtS and in City
procurement of gjoods �3nd sf�riic�r�s.
Section I. The City's 11-in-Orit y Procurement Compliance
Officer who shall be apt}ointed by the City Manager ►ii11
administer the Program. Linder the said Program, a bid bond
voucher memorandum is to be issued by the. C it y' S Minority
Procurement Compliance. Officer to eliclible, minority vendors
to be submitted and accepted in lieu of a required bid bond
F
or certified
check. A
separate bid bond voucher memorandum
must be issued
to each eligible vendor for each contract upon
which the vendor
desires
to bid.
Section 3.
(a)
Minority
vendors desiring to participate in
said Program
must:
(i)
register with the City as minority
business enterprise under the
provisions of 0rdinanr:c No. 9775;
attest in writinq to their inability
to secure or afford the appropriate
bid bond(s).
(b)
The City's
Minority Procurement Officer shall:
(i)
review requests for participation
and estnbl i-)h e1.igi1)i.I i t.y upon
satisfactory proof of vendor
compliance with subsection (a)
hereof;
recommend to the Chief Procurement
Officer those vendors who are
eligible to participate in this
Program.
(c)
Eligible
minority vendors will be allowed to
participate in this Program:
(i)
until they have received and
performe(t s-it isfactorily on three
bid or
until. thi--ty fail to comply with the
requirements of the Program; or
until they fail to accept an award
of bid; or
(iv)
until they fail to perform under a
contract, awarded by the City; or
3
(v) until it is determined that they can
secure or afford to purchase a bid
bond on their own.
Section 4. As a means of implementinq the goals of the
said Program (a) minority, vr-nrior, elinihle under said Program
and (b) ill _ minnri{y rntri(,risf-, who hove complied
with t h r ro"Iisi_ratinn t)?nns of ordinance No, 9775 may
request. that for mon i r,s found to he di_.je by thr, city
under any cone r.)r1 be i;;r;ued i o ,^i(i vendor or business
enterprisr� sand fore,,ardcrI directly to a financial institution
designated by snid vrndor or hu:,inesr) enterprise. Said
request shall hr drantrd, rub ject to the approval of the City
Manager, or his de i ranee .
PASSED AND ADOPTED thisal_ day of July , 1984.
v-
EST:
PREPARED AND APPROVED BY:
4 �'__
DEPUTY CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
r
ITY ATTORNEY
' •' 7
Honorable Mayor and Members :.r1�:
of the City Commission
Minority Procurement
Program Bid Bond
Vouchers
rpo%ll Howard V. Gary ,EFERENCES.
City Manager n
NCLJSURES:
It is recommended that the City
Commission adopt the attached
policy r0.50111t•ion creating; a
Minority t3u nine s Enter —prises Bid
Bond Vouchers Svst-cm for certain
public workt5 Projects and the pro—
curemcrlt of certain gocd~ and services.
BACKGROUND
You previsouly were requested to consider the adoption of new
performance bond policies to assist in providing greater
opportunitie.= for minorities to do business with the City. A
second obstacle to a rh4 evir[[ the goals of the City Commission for
minorityart.i�_i;�r�t it�nv.l.ti���r_ ale hid bond. bid bond is
simply a lw the selected succe:.afr.l bidder not
accept ;.ire a d tof btii ,fy u,i 11 b(? c )rnpeni t c d for actual
cost i nci.'r—e" S1C'L11( i. � }:;t"' !t( _ E s. >. ?' jr tC ?' u' i'J 1' 1 _ ttlG biel or t0
SC18Gu t11E` nr X'U - u a 1 i f iC `.1 er. .he bid l onl', :�7 3r<3T1`rG#"'� may
b"e in a for;, of a cor-t rf•i.ed ci-ieck, a cortifirate by a bonding
company or -somc, other ac-.-ep talbl- e liquid security.
Bid bonds prr-,sent.E v probl<.i for :.�om.e minority firms because:
(1) Smali. P•Ii.noraty firms are often unable to secure bid
bond cc:ri a.f " .
(2) Sma1l often are required to pay
excessive ( L :v m- rkta,L r.At-) furs tc secure bid bonds.
o l.len do no" .i::,vt.. the !-esources to
pro. id . :.c b, ,1d� or r_orc h <ri ont: i~c je� t it a time.
A bid bond or ui era r:4 nt c e� 3sary to di.-ccurL g.. vendors from
submitting bids for wi-_ C4i ';kit<y may be unable or u.1G.,lilint3 to
perform should they receive the award. The bid bond insures that
Honorable Mayor and Members
of the City Commission
Page 2
.-- z
should the vendor refuse a legitimate award of bid that the City
will be reimbursed for any cost incurred. This process
discourages fri.vil..ous bids.
In order- L, provide a ;treater opportunity for small minority
firms to do husiness with the City, it is possible to modify
existinr bid bond r,--.(jui_rc.Ticnt;s without, placing the C: ,-v at
signifi.cant ri>k< ilac basis of the hi.d bond requi r,e;.gent is
"tradition aI They .-ire not:, required by City Cock. They are
appropriate in m�-ny ca"es end in the last :several years nave been
utilized (_-,n1.y two timc5 t.0 recover money ; or t:.he City. The
present syrt,c, C n )c ii'iociif icci to -ccomodatG 1<:7;�F? srlal.l. minority
firms unable t,,:.) s(-;curo a i^.factory bid bond without p1�,3cing
the Cit risk. The establishments of a bid bond
vendor SV t,em i:. rcc.o;+r�endrei.
Requirements for a minority proceurement bid bond voucher
system would include:
A. Minority vendors desiring to participate must:
(1) be registered trio: the City as a minority vendor.
(2) attest in ti,ri`.;irat; `o their inability to secure or
afford the appropriate bid bond(s).
B. The Minority Procurener�t Co pliance Gf:icer will:
(1) review request for partivipa�icn and establish
eligibility.
(2) recoi-O-Mend to ti"ie Chief` Pr-ocurement Officer vendors
to be- i:,c!ad(::d _r; t i1 1)rograr-:.
C. A bid bon." voucher UM Will 'De, i-SL'Qd to eligible
m i n o r, 'y e n,dors t o be .Tubm -L.t cal i_ ir:>u of a required
bid bond or cert_k A bid b c,nu voucher
memorandum. roust by i ;sued to e :C:i eli ible vendor for
each bid. 'This 1,'1UMor-.noum will be provided by the
Minority Procurement Compliance Officer.
s
ra
■
Honorable Mayor and Members
of the City Commission
Page 3
D. Eligible minority vendors will be allowed to participate
in this program:
(1) Until they have received and performed
satisfactorily on three bid awards.
(2) Until they fail to comply with the requirements of
the program.
(3) Until. t,hry fail to accept an award. of bid.
(4) Until tchey fail to perform under a contract awarded
by the Czt,�7.
(5) Until. ii, i de:ter<<,il�ec t.;7L.t They cpin secure or
afford to purcha c bid bond. can their own.
CHECKS TO F"IttANCIAL, INSTITUTIONS
An additional problem identified by minority vendors involves
establishing a line of credit with finnncia). a.r�st;.tt.rt:lGn �.
Contractors can redtice costs if they are ate?l e, to purch-se
materials in larger qua ntities. 0f i, f'n it 1,: al i A f J. ri,iI i. o
impossible for certain .c-nd rs t :, ._',.:'Di_`,...i: fficient
credit to m l.e bulk rurch c. r u.. ; r e �,., r; 4 r� a.._1 t:►1c:ors by
agreeing if r-,auestei , tc rp, y:nC!r"I"I r the. cc.tIil ct,
directly tG ta; finvnciu? Lr,.=,titut.icr,. !-• ci;.:ci; i.l.t cclitinue to
be made pal able to the cents, cicr . he Cis �Yi 1.1 no, -become
involved in rah��IL, e 1.,c.- IeC_31 arran�emie, i i y develop between the
financial and the contractor. i4G have been advised
by the Gffyce of Law that nailing, checks to financial
insitutitions if requested in writing the contractor should not
create any additional liability for the City.