(Added by Ord. No. 184,665, Eff. 1/25/17.)
(a) Subcontractor utilization relating to each Franchisee’s provision of collection services in its Franchise Zone(s) must be performed and reported consistent with the following requirements:
(1) Each Franchisee must submit quarterly reports to the Bureau of Sanitation regarding its use of subcontractors: subcontractor’s name, address, phone number, status (such as Minority Business Enterprise, Women Business Enterprise, Emerging Business Enterprise, Disabled Veterans Business Enterprise, Small Business Enterprise, and all other business enterprises), subcontractor’s City of Los Angeles Business Tax Registration Certificate number, dollar amount of subcontract work to be performed, description of subcontract work to be performed, and any other additional information as specified by the Bureau of Sanitation in writing not less than 60 days in advance of the report deadline;
(2) Each Franchisee must perform subcontractor outreach consistent with rules and regulations adopted by the Department of Public Works, Bureau of Contract Administration as the Designated Administrative Agency (DAA) to define the outreach and/or good faith effort for and evaluations of any subcontractor additions and/or subcontractor substitutions for which prior written approval by the City is required, and subject to applicable law; and
(3) Each Franchisee must submit, at a minimum, quarterly reports to the Bureau of Sanitation of any current or anticipated subcontracting opportunities during the term of the franchise. Each Franchisee must use its best efforts to identify these additional subcontracting opportunities.
i. The Bureau of Sanitation shall evaluate quarterly each Franchisee’s performance in achieving best efforts to identify additional subcontracting opportunities to increase participation by subcontractors. The Bureau of Sanitation shall develop rules and regulations as to how to determine whether each Franchisee has made these best efforts and to assign monetary penalties for failure of any Franchisee to demonstrate best efforts. These rules and regulations shall be presented for approval to the Board.
(b) The City shall not exercise any option to renew a Franchise Agreement with a Franchisee who has not complied with the requirements in Subsection (a), or who has not made efforts to develop and mentor its subcontractors, conduct any additional outreach consistent with the operative rules and regulations since the award of the Franchise Agreement to increase and balance the diversity of its utilized subcontractors, or to meet or exceed the pledged participation of each subcontractor listed at award or added as a result of any additional outreach efforts.