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(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.)
(a) The Community Relations Board appointed by the Mayor will have the authority to review and report annually on the progress of the City's Minority Business Enterprise Program.
(b) The Board will review the relevant impact of the Program upon MBE's simultaneously with the quarterly review process.
(c) The Board will review annually minority contracting problems and make recommendations for the improvement of minority business development in accordance with this chapter.
(Ord. 83-75. Passed 4-4-83.)
(a) The Office of Equal Opportunity will deny certification as a minority business enterprise or MBE joint venture to any business entity which fails to meet the requirements of this chapter.
(b) The OEO shall base its denial of certification on any of the following grounds:
(1) Failure to qualify as a minority business enterprise under this chapter;
(2) Failure to provide sufficient information to the OEO on which a determination of eligibility can be based;
(3) Refusal to permit on-site inspections by the OEO staff; or
(4) Refusal to comply with a reasonable OEO request for information, data or access to records pertinent to the application for certification.
(c) If certification is denied, the OEO shall notify the applicant of the denial, in writing, within ten days, along with the reasons for the denial.
(Ord. 83-75. Passed 4-4-83.)
(a) The Office of Equal Opportunity shall periodically review the practices and status of certified MBE's to determine whether they continue to meet the eligibility requirements for certification and are conducting their business activities in accordance with this chapter.
(b) Informal compliance review shall consist of monitoring reports and information submitted by departments, MBE's and joint ventures, on-site visits or interviews and discussions conducted by the OEO staff.
(c) If the OEO discovers correctable noncompliance as the result of an informal compliance review, it may seek compliance by the MBE prior to instituting further proceedings. In such cases, the OEO shall issue a notice of noncompliance to the MBE, specifying the nature of the alleged noncompliance, and shall recommend steps to be taken by the MBE to correct the stated deficiencies. The OEO may enter into discussions with the MBE to attempt to resolve the compliance problem informally.
(d) If the informal compliance procedures result in the correction of the deficiencies, the OEO shall keep on file a copy of the notice of noncompliance, the steps taken to correct any deficiencies and the results of a follow-up investigation. If the informal compliance procedures do not result in the correction of all deficiencies, the OEO may institute formal compliance review proceedings.
(e) Upon completion of the formal compliance review process, the OEO shall prepare a report setting forth its findings.
(f) The OEO may hold an informal preliminary hearing at which the MBE shall be allowed to appear and state its position on the allegations. After an informal preliminary hearing, or without such informal hearing if the OEO so determines, the OEO shall take one of the following actions:
(1) Dismiss the allegations as unfounded; or
(2) Adopt formal charges and conduct a formal hearing on the allegations.
(Ord. 83-75. Passed 4-4-83.)
(a) Formal charges against an MBE joint venture which may result in revocation of certification may be brought and adopted on any of the following grounds:
(1) Failure to report changes in the status or activities of the business entity or its minority membership which affect the MBE's eligibility for certification; or
(2) Violation of any of the provisions of this chapter.
(b) The Office of Equal Opportunity shall give written notice of the adoption of charges to the MBE or joint venture. The notice shall set forth the grounds and reasons for the denial and shall set forth the right to a hearing and hearing procedures.
(c) A hearing before the Community Relations Board to contest the revocation of certification may be obtained by filing a written request for a hearing within ten days of the receipt of the notice of revocation. A written response to the charges may be filed with the request for a hearing or at any time prior to the conclusion of the hearing.
(d) Hearings shall be conducted in accordance with the procedures set forth in Section 168.23.
(Ord. 83-75. Passed 4-4-83.)
(a) The Office of Equal Opportunity may deny recertification of an MBE/joint venture on one or more of the grounds set forth in Section 168.19.
(b) If recertification is denied, the OEO shall notify the applicant of the denial, in writing, along with the grounds and specific reasons for the denial. Notice of denial of recertification shall also include notice of the right to a hearing and hearing procedures.
(c) A hearing before the Community Relations Board to contest the denial of recertification may be obtained by filing a written request for a hearing within ten days of the receipt of the notice of denial. A written response to the grounds and reasons for denial may be filed with the hearing request or at any time prior to the conclusion of the hearing.
(d) Hearings shall be conducted in accordance with the procedures set forth in Section 168.23.
(Ord. 83-75. Passed 4-4-83.)
(a) Hearings held in connection with denials of recertification and revocation of certification shall be conducted in accordance with the procedures set forth in this section.
(b) Upon receipt of a request for a hearing, the Community Relations Board shall set a date for the hearing and shall give the party requesting the hearing at least thirty days written notice of the date and time set for the hearing. The MBE or joint venture may waive its right to a full thirty days notice of the hearing by stating that such right is waived in the request for a hearing. If the right to thirty days notice is waived, the Board shall inform the MBE or joint venture of the hearing date and time at least ten days prior to the hearing.
(c) The Board has the authority to request the attendance of persons and the production of documents.
(d) MBE's shall have the right to be represented by counsel, present evidence and witnesses and cross-examine adverse witnesses.
(e) All hearings shall be open to the public.
(f) An electronic recording of the hearing shall be made which shall be a part of the official record of the proceedings. A copy of the recording shall be made available to the MBE, at cost, upon request.
(g) All testimony shall be given under oath or affirmation.
(h) Any person may be excluded from the hearing for conduct which interferes with the hearing process.
(i) The rules of evidence shall not strictly apply. However, the Board shall have the authority to exclude irrelevant or repetitive evidence or testimony.
(j) The official record of the hearing shall consist of the notice of the hearing, the written submissions of the MBE/joint venture, if any, the report of the Office of Equal Opportunity staff upon which the charges or denial is based, briefs and proposed findings and conclusions filed by the parties, exceptions to proposed findings and conclusions and the electronic recording of the hearing.
(k) The Board's final decision shall be based upon the record of the hearing, and a decision to revoke the certification of an MBE must be supported by a preponderance of the evidence.
(l) The final decision of the Board shall be issued, in writing, within thirty days of the date on which the charges were adopted or a notice of denial of recertification was issued by the OEO.
(m) The official record of the proceedings and actions of the Board shall be maintained by the OEO.
(Ord. 83-75. Passed 4-4-83.)