The Contract Compliance Officer/Personnel Director shall determine the eligibility of LBEs, MBEs and FBEs for participation in city eligible projects according to the following standards:
(A) Bona fide minority group memberships shall be established on the basis of the individual’s claim that he or she is a member of a minority group and is so regarded by that particular minority community.
(B) An eligible LBE, MBE or FBE under this program shall be an independent business. The ownership and control by local individuals, minorities or females shall be real, substantial, and shall be indicated by customary incidence of ownership, as demonstrated by an examination of the substance rather than the form of ownership and operating arrangement.
(C) The local, minority or female owners must possess the power to direct or cause the direction of the management and policies of the firm and to make day-to-day, as well as any, decisions on matters of management, policy and operations. The firm shall not be subject to any formal or informal restrictions which limit the customary discretion of the local, minority or female owners. There shall be no restrictions by partnership agreements, charter requirements, or other arrangements which prevent the local, minority or female owners from making a business decision of the firm without the cooperation or vote of any owner who is not local, minority or female.
(D) In such instance, where the actual management of an LMFBE is contracted out to individuals other than the owner, those persons who have the ultimate power to hire and fire the managers and, for the purpose of this chapter, be considered as controlling the business.
(E) All securities which constitute ownership or control of an entity for purposes of establishing it as a LBE, MBE or FBE must be held directly by local, minority or female individuals. No securities held in trust or by any guardian for a minor shall be considered held by local individuals, minorities or females in determining the ownership or control of a corporation.
(F) The Contract Compliance Officer/Personnel Director, shall make investigation of LBE, MBE and FBE ownership arrangement beyond formal documents submitted by such entities if the firm is newly formed or the firm has local, minority and/or female ownership of less than 100%; there is a previous or continuing employer-employee relationship between or among present owners; a business which is not a LBE, MBE or FBE has an interest in such entity; or the ownership of the firm has changed since documents have been submitted to the Contract Compliance Officer/Personnel Director.
(‘68 Code, § 2-1707) (Ord. 603, passed 8-15-83)