(a) The Office of Equal Opportunity will certify joint ventures involving minority business enterprises where such combinations will contribute to minority and nonminority business development and where the participation of minority contractors involved in such joint venture entities is substantial.
(b) Minority business enterprises participating in joint ventures must be individually certified in accordance with this chapter.
(c) Individual certification of an MBE participating in a joint venture shall not automatically qualify the joint venture for registration. Each joint venture must be certified as a separate business entity under this section in order to participate in established programs.
(d) If an MBE has not been certified by the OEO prior to its participation in a joint venture, the applications for individual certification of the joint venture may be submitted to and reviewed by the OEO simultaneously.
(e) The OEO will consider the following capitalization and financial factors in determining whether to certify a joint venture:
(1) The percentages of profits, losses and liabilities to be shared by the MBE participant;
(2) Agreements or other arrangements among the joint venture participants with regard to working capital, including, but not limited to, the following:
A. The percentage of initial capital contributions by each joint venture participant;
B. Additional capital contributions beyond initial capitalization;
C. Withdrawal of working capital; and
D. Effects of the failure to advance by the participants;
(3) The cost of construction items to each participant, including items not reimbursable;
(4) The methods and applications of returns from the sale of assets and equipment acquired; and
(5) The nature of the joint venture's banking arrangements.
(f) The OEO will consider the administrative and management structure of the joint venture, including, but not limited to, the following factors:
(1) Accounting and budgeting methods;
(2) Methods of supervision of on-site and office work and operation;
(3) Methods of purchase or other acquisition of equipment, materials, goods, services and supplies;
(4) Personnel policies and methods, including hiring, promotion and adverse actions;
(5) The manner of controlling the operations of the joint venture, including methods for decision making and resolution of disputes.
(g) The OEO will also consider additional factors affecting the relationship of the joint venture participants, including, but not limited to, the following:
(1) Arrangements among the participants for the procurement of performance and bid bonds;
(2) Arrangements among the participants for the procurement of insurance;
(3) The specific nature and proportion of the contract work to be performed by each participant;
(4) The nature of any rights to assign, transfer, mortgage, pledge or otherwise alienate any portion of the joint venture; and
(5) The nature of the rights of the participants to legally bind the joint venture.
(Ord. 83-75. Passed 4-4-83.)