(1) The Director of the Department of Diversity, Equity and Inclusion shall determine and make publicly available guidelines, instructions and/or forms for the certification of qualifying Small Business Enterprises (SBEs).
(2) Eligibility Criteria for SBE Certification. A business enterprise that wishes to make application to the Department of Diversity, Equity and Inclusion to be certified as an SBE shall submit a completed SBE Certification Application, and supporting documentation affirming that the business meets all of the following minimum eligibility criteria:
(A) Is a for-profit business concern with three years average annual revenues of less than two million dollars ($2,000,000) performing a commercially useful function that is not a subsidiary of another business and is either:
(B) Is independently owned, operated, controlled and managed by one or more United States citizens whose individual adjusted gross incomes do not exceed $250,000. All persons with controlling influence shall be included for the purpose of compliance with the income limits.
(C) Has been established for at least three years.
(D) Possesses all licenses and permits required by law to perform the scope of work within the classification requested for certification.
(E) Is a business headquartered and has its primary location in the Toledo Market Area.
(3) Certified MBEs and WBEs that meet the criteria in paragraph (2) above may also certify as SBE.
(4) Ineligible Businesses. A business enterprise is ineligible for consideration for SBE Certification if:
(A) The business enterprise or one of its owners having an ownership interest greater than 10 percent has been convicted of a wage theft violation under Toledo Municipal Code Section 545.22 within the past three years.
(B) A representative of the business enterprise previously made a materially deceptive or fraudulent statement or omission or otherwise intentionally misrepresented any fact that may have been considered in making a certification determination during any certification process provided for under this Chapter within the prior three years.
(C) The business enterprise has been or is currently facing suspension or debarment as a vendor of the state of Ohio in accordance with provisions of each respective state's law and/or regulations.
(D) The business enterprise is non-compliant or delinquent in payment of income tax or payroll taxes to the City of Toledo and has not entered into a payment agreement or is noncompliant under an existing payment agreement.
(5) SBE Certification Process.
(A) Upon receipt of a submitted SBE Certification Application, the Department of Diversity, Equity and Inclusion will review and evaluate applications based upon the following criteria:
(a) The applicant meets the SBE eligibility criteria; and
(b) The application contains accurate and complete information of required in making a certification determination during the certification process.
(B) Once it is determined that a business enterprise meets the minimum eligibility requirements and is not otherwise ineligible for certification as an SBE, the Office of Diversity and Inclusion will determine the scope of the SBE's certification.
(a) Certification will be granted for only the specific areas of work in which the SBE has been found by the Office of Diversity and Inclusion to have the requisite skills, knowledge, and ability to perform in the field of endeavor in which certification is sought, as defined by normal industry practices, including licensure where required.
(b) Certification does not constitute a finding that the SBE meets the requirements that the City may have for any given contract award.
(C) Timing. The Director will make a final certification determination within 90 days after the date the Department of Diversity, Equity and Inclusion receives a satisfactorily completed application from the applicant. If certification is denied, the Director will notify the applicant in writing and specify the reason(s) for the denial. Unless the applicant is successful in a timely appeal of the denial of certification, the applicant may not reapply for the same type of certification for a period of one year from the date of the notice of denial.
(D) Certification Term. Certification as an SBE expires three years from the date of certification. SLBEs have a continuing, affirmative obligation to notify the Office of Diversity and Inclusion of any change in its circumstances affecting its continued eligibility for the SBE program.
(4) Re-Certification, De-Certification, and Suspension.
(A) Re-Certification.
(a) SBEs seeking re-certification shall submit a completed SBE re-certification application to the Department of Diversity, Equity and Inclusion no sooner than 90 days prior to the expiration of their SBE certificate.
(b) Failure of an SBE to seek re-certification by filing the necessary recertification application with the Department of Diversity, Equity and Inclusion within 60 days following the expiration of its certificate shall result in automatic decertification.
(B) An SBE may be decertified upon a finding by the Director that the SBE:
(a) Ceases to meet the eligibility and/or certification requirements for their SBE Certificate; or
(b) Has provided materially false or misleading information to the City in seeking certification or re-certification; or
(c) Has failed to perform a Commercially Useful Function under a contract; or
(d) Has allowed its SBE status to be fraudulently used for the benefit of a non-SBE firm or the owners of a non-SBE firm so as to provide the nonSBE firm or firm owners benefits from the Program for which the non-SBE firm and its owners would not otherwise be entitled; or
(e) Has exhibited gross negligence, incompetence, financial irresponsibility, or misconduct in the performance of a City contract.
(C) Where, based upon information obtained by the Department of Diversity, Equity and Inclusion, the Director reasonably makes a finding under the immediately preceding subsection (B), or as a result of automatic decertification under the subsection (A)(b) above for failure to recertify, the Director shall provide the SBE with written notice of de-certification. Upon notice of the de-certification, the business enterprise shall be prohibited from bidding upon or entering into City contracts as a certified SBE.
(5) The Director of the Department of Diversity, Equity and Inclusion may determine processes, rules or regulations regarding SBE certification and decertification in keeping with the provisions of this Chapter.
(Ord. 238-23. Passed 5-30- 23.)