.

------ '-l
Q. Local, Minority and Women
Business Enterprise Purchasing .
PrograIn J
 Exhibit Q

CJ:TY OF OAELAND
-DRAFT
AND
:REDEVELOPKEHT ASDel'
LOCAL, lC:NOIU~Y AND WOKEN BUSINESS EBTERPRISE 'PtJRcnsms
PROGRDI
!I!:AlJLE OF co~mr;rs

Page
Objective 1

Def.initions .l.

XII. Goals ..
IV. Program 5

v. certification 6

n. Joint ventures 7

Vl:I. counting of HBE/~E/JV participation 8

Vl:II. xaiDt&ininq HBE/WBE Participation ~1

J:X. Bid Process ~1

x. KonitoriDg .14

n. Emergency Work ~4

Protest Procedure 14
nne SUbstitution .1S

xrv Non-complia~c:e .1S

rv program :Review 1.6

Exhibit A - Small Business Size standards

of SD i
Exhibit B - SuDveD~or
Listing i~
Hinority and Women Suppliers
. LiBtiDg . .iii
Exhibit c - Affidavit of Ron-Discrimination iv
Exhibit D - progress Payment Porm for .
Su))vendors . v
 ..
'.

CIn OF OAlCLAlm
AIm
R.EDEVELQPdNT AGENCY
.HINcm.ln! "DXP and LOcu. lJUSJ:NlSS ENTBRPlUSE
.' .' PmicWIJtG . PROGIW!, :

I O:biective
To establish goals for the participation of ~ocal business
enterprise minority business enterprises .and women business
enterprises in the City of Oakland and Redevelopment Agency
purchasing contracts and to establish a prt;:)qram for the
achievement of the goals for projects $l.00,000 . and over.

%I pefinitions
1. Hinori:y group member - a person whp ·is B1ack, Hispanic,
Asian or Pacific Islander, or American :tndian or Alaskan
Nrt~e. . .
a) Black - a:Li persons having origins.. ~n any of the
Black'~~c~al groups of Africa .
• ' •• • # • '.

.... ,..;...... b) Hispanic ~ all persons of Mexican, Puerto Rican, .

: ..) CUban, Central or South· Americ;an .~escent anCl
--- Spanish culture. Spanish portuqi'iese" are eXcluded
from the ltlspanic cateqory and are. , t~ be cl.assified .
according to their race. . . .
.. .
c) Asian ~r
Pacific Islander all persons having
origins in any of the: original .. peopl.es. of the Far
East, Southeast Asia, the Indian SUbcontinent or
the Pacific Islands.
d) American Indian or Alaskan.Nat~y:e. all persons
having origins in any of the original peoples of
Nortl,1 America,
and who· maintain cultural
1c;lentifi~ations,
through tribal affiliation. or
community recognitio.n....
2. Kinority Bus1n.~ss· . Enterprise - United ~tates business
wherein the minority group ··members or stockholders have
··.at .. least Sl~ .pwn~ship· interest in the business and
possess cc:>ntrol over management, capi~al arid earnings. If
- the· busl:ness is publicly . oWne~, the . minority group
members or stockholders·must.have at 1east S~% ownership
interest in the business and possess control over
'manageJDent, capital and earnings ..
..
. Revised lO/23/95 .

Page l.
 I
; .

3. Wamen Business Enterprise - United states business

wherein women members or stockholders have at least 51%
ownership interest in the business and possess control
over management, capital and earnings. If the business
is publicly owned, the women members or stockholders must
have at least 51% ownership interest in the business and
possess control over management, capital and earnings.
4. Local Business Enterprise - a local business must meet
the following criteria at a minimum:
l.. A local business lIlust establish that it has been
located and doing business in Oakland for at least
six months preceding receipt by the city of a bid
by the local business.

2. A local business shall have paid all required

business license taxes and shall possess a current
City of oakland Business. Tax Certificate at the
time of bid opening.
3. The business conducted by the local business must
be the same as the business for which the bid is
sought.
4. The local Dusiness must have fixed office(s) or
distribution points) located within the geographic
boundaries of the city of Oakland, and the business
address (es) lIlust be listed in the "Permits and
License Paid File" with an Oakland street address.
Post office boxes, temporary locations and moveable
worksites shall not suffice to establish status as
a local business.
5. The local business must prominently display a sign
at the business premises identifying the business
as being located at the address. For the purpose
of this definition, a sign is prominently displayed
if it is clearly visible from the street upon wbich
the business is located.

6. The location of the local business must be a fixed

and established plaoe where work is carried on of a
clerical, administrative, distribution, production,
professional or . technical nature directly
pertinent to the business being certified.
7. A local business shall have staff avai1able during
normal operating hours, 8:00 a.m. to 5:00 p.m., or
during those hoUrs appropriate for the conduct of
the business.

Revised 10/23/95
page 2
..~
 ~.. A local business must possess and make available
for inspec;tiol').·· dO'cumentation . citin;.. the Oakl.and
business st;-~·e.t address· as· fQll.ows:

~'. past contracts . .

'"
'b. lis~inq in 'an ap~ropriate buyer's.quide, suCh
as tbe Oakland:· Telephone direqt.orY.
c. business license and £edera1 tax
identification number. .
d. bus in~ss .' cards.·' .'
e. stationery.
f. lease, or other written agreement for occupancy
of the oakland office.
g. telephone"bill.
9. A business bidding as a local,p~siness shall supply
the City with. all such additional information as
the City may ~~~ relevant to,make a determination
, Ol?- the bid.

staff ft Person(s) hired arid paid directly by the local

business to regularly conduct work solely on behalf
,of the business at the fixed office or fixeci
distribution point. .A telephone answering service
(of any type) sha11 not qualify as staff.
"Fixed Distribution Point: An established, non-portable
warehouse or· outside yard, owned or leased by the local
business;,w~ere'shippi~g,'receivin~ ana distribution of goods
and commodities is requl.r,ly and exclusively conducted on
behalf Qf the bl:lsiDess. by the'_ owner or 'his/her staff.
"Fixed Office": A defined and 'ded'ic~ted office space, owned
or leased' by the local ~iness'i inside, an established, non-
.p~rtable ·bu~lding. where, work of a clerical, administrative,
,profesa;iona~ ~r, producti~:h .nature' is'regulaJ;"ly and exclusively
conducted on behalf of' the business by the owner or his/her
st~ff. .
'1.. A residence 1Ii~Y qualify as:, a "fixed office"
provided that all the following conditions are met:
(a) 'I'he 'conducted, in the' residence
business
'compl~es . '~i th
and· is not in violation of
Oakland Zoning', Regulations Sections 7300
through 7324, entitled, the Home' occupation
Regulations i '

Revised 10/23/95
Page 3

',--- ._. -
 (b) The bidder/proposer has a current and valid
certification permit from the Director of City
Planni;ng, as required by Oakland Zoning
Regulations section 7304;
(c) The bidder/proposer owns at least 50% of the
right, title and interest in the subject
residence and resides therein;
(d) The bidder/proposer owns at least 50% of the
right, title and interest in the business; and
(e) The residence is the primary business location
of the business and contributes not less than
5~% of the gross receipts of said business.

5. Small Business Enterprise - united states business

which meets the definition of a minority business
enterprise or women business enterprise, and in addition,
meets' the small business size standards of the Small
Business Administration (Exhibit A).
6. city - Reference to the city or city council includes the
Redevelopment Agency, and reference to the City Manager
includes the Agency Administrator with regards to this
Proqralll.
7. Vendor - The individual partnership, corporation, joint
venture or other legal entity entering into a contract
with the City.
8. Vendor - The individual, partnership, corporation or
other legal entity entering into a contract with the
contractor to perform a portion of the work.
9. Joint venture - An .association of two or more businesses
to carry out a single business enterprise for profit for
which purpose they combine their property , capital,
efforts, skills and knowledge. Each party.to the joint
venture must hold a. current, active license in good
standing, and the joint venture must hold a current,
active' joint venture license.
:tIl: Goal.s

For purchasing contracts $lOO, 000 and over the City of Oakland
and Redevelopment Agency has established a Local Minority and
Wo~en Business Enterprise Participation Purchasing Program.

Revised 10/23/95
Page "
 The Hinor~ty and Women Business Enterprise Purchasing
Program: e~tab;L~shes
.... . .. :,'
'. ..
the· .foll~wing:.· goal~ :
. . i. ~ .4 ••

1.· A goal . of' . 69% of·. the .'. cpntra~t

amount for the
participation' of ···Lbcal . bU$ines~enterprises.
2. '. ··.A :'goal;' . o'f ''"'38'%· of. the. 'con1:;ract the .~ount for
·partiC?~p.at.io~ .of ·lIlin.orlty ·'b\1~i.n~~s enterprises in City
purchasing' t?onfracts:. . : , . '.
."3 •. A.q~al tif 5%' of th~'contract ~o~t· for· the particip~tion
of 'women' bus·~ess· enter.prise~ in City purchasing
con1;ractts • ..
a) . :., 50% of' the· Minor.ity' ,B\lsiness 'Enterprises should
.. qua.lifY ·a.s·"small business enterprises.
bl .,. 'A'
busin'es's' owtie·ci.. ·.by minority women may be coUnted
! . . ,' towards ful':E-illment of eith~r- ·the. qoal for th~
parti~ipation"" of· women, business.' .~n1:erprises or
mi'nority buSiness enterprises,.. but ,not both .
.n Pr.oaram
The City' sball. require that vendQrs bidding on local city
.... ,,:t. purChasing contracts abide by the provisions of the Minority
';' and Womell Business Enterprise Purchasing :Program and .ake
e.~ery effort to obtain local, minority and wOmen Dusiness
enterprise p_rticipa.tio~. Failure to provid.~ the infprmation
referenced in various .'sections o,f ·this prQqru" will 'result in
a determination by the city that the .. ;·vend~r is not a
r~sponsible bi~der ~ It is ·the intention of the City to award
purcha'siiig c6ntracts" ~o the lowestr.~spons~bl,e bidder who }las
achieved, . or ~i!l'd~ a· qobd f'aith effort..::t~ achieve, the goals
. for local, . lninority ·and.· .·.women ': busines~ enterprise
'.' .part:icipation... ., ,
In order to
achieve the goals for minority and. women business
~terpr~se pu~bhasing ~articipation, ~e vendor may award a'
porti.Of;l(S). of' 'the contract to ~pna fide . local, minority or
tr.!om~n
. own~d . firms', . :local, Einority;· or :WOlll~n . owner-operated
equipment', local, minority or women. brokers,. local, m.inority
or women suppliers or '. prefabricators .
A local, lDinority or women business enterprise wi~l. be
.. c~nsidered bona fide if the local, minority or WOlDen 'group
_~.ers' o~ership interests ar~ real and continuing and not
crea1::ad solelr to.' meet the. ~ity's go~ls fQ~. loc~l, m.inority
and women bus~ness enterprl.Se· pl:lrchas~n9 par-t::ic;:.~pati~n.

Revised 10/23/95
. Page 5

.... __ ....
 The local, minority or women business enterprise must perform
work or provide services and/or supplies and not lU~ely act as
a passive conduit.
Where a minority or women business enter-prise acts as broker
or aqent, only the commission or fee earned may be counted
towards the vendor qoals. 'l'his commission or fee will not be
. counted if the minority or women business enterprise performs
no substantive service.
In the event the city has reason to question the ownership of
a local, minority or women business enterprise, the burden of
proof is on the claimant and/or vendor to provide document-
ation to sUbstantiate the local, minority or women ownership
of the business. .

V certification
Local, minority and women bu~inesses Nust be certified prior
to submittal of a bid or proposal in order to receive credit
towards the achievement of the local, minority and women
goals. Firms must be certified by the City or an agency
approved by the City. .
'l'he city will use 49CFR Part 23 as the procedure for the
certification of ~ocal, minority and women businesses.
FirlUS intentionally. falsifying their status as a local,
minority or woman business will be debarred from bidding on
future city work for a period of three (3) years.
Leverage Buyout: in the event an individual(s) purchases an
existing business by incurring debt from the prior business
owner (i.e.,) the prior business owner sells the business to
local, m.inority or womel) individuals, which pays less than 50%
down and agrees to pay the l\)alance in insta~1ments or another
similar credit arranc;rement), the ownership interest of the
individual(s) cannot be subject to control or exercise of
discretion of the prier business owner. The prior business
owner's relationship to the local, minority or women
individuals, must be that of creditor, only.
As a creditor I the prior business. owner and the local,
minority or women individuals must enter into an agreement
whereby the local, minority or women individual makes an
unconditional, fixed and certain obligation to pay the prior
business on extended credit.

Revised 10/23/95
page 6
 ~h~ 'prior ~usiness owner must:
.~. Have 'noequitl" intere~·t. in' th~ new bus~ness othEir than
that of a creditor;
. 2. Sha11'have ne·rights to share in the profits ana losses
.of' the, newly. ~ormed bu.sines~;" . ,
3. . Shari have····no right;" to exer~ise' 'control .. of the newly
formed business; and
Shall not. eXtend any other service or item of value to
" the neWly formed' 'busin~ssr' ~less th~ m~nority' or women
individual(s}- compensat~s ,·the prior oWner Ior the fair
market . va'·lue· of such service. or .i t~m extended. For
example: . .
a) No sharing of eq~ipment or employees.
b) No rentinq of space or equipment.· at below fair
market value. ·

VI Joint veptures
When~ver a joint venture involves a business owned by local,
.......) ~Qrities or 'women, the vendor shall provide the City with a'
ful.l account of the' nature of ~e local, nnority or women
~wnersh~p interest, the basis for the creation of the joint
ventur$, . ~a the particular financial. participation and
administrative responsibi.lit;1es of the in~erested p·arties.
Such' joint· ·venture partnership o~, '. other mUlti-entity
relationship shall ensure that the participating business
owned by lQcal, minorities or women has a commensurate share
o.~ the prcfi~ o~. lOE?s' to be. ·realized from the joint venture.

The 'joint venture,: partnership ~~, o~~r '~ulti-entity relation-

ship. shall be ~n writing. Joint - ventures., -partnerships or
other ~ulti'-entity relationships must confot"m.tc? the pertinent
laws .whi.ch govern the creation of such. bUSiness a~angements.
" The City' sh~ll have the 'right to ·review same' and determine if
such arrangement' i'~ . proper 'within the requirements of the
Local, Min'ority and Women' Business Enterprise Purchasing
ProgriUl. .' .
. .
In order for' the City . to consider a j oint venture as being
bona fide, a joint venture agreement must be subinitted to the
City for approval. As a .minimum , the joint venture agreement
Dust include the following prQvisions:

Revised 10/23/95
page 7
 l.. Purpose and length of the j oint venture i
2. Location of the joint venture office;
3. License of the joint venture (if required) ;
4. Name, ethnic and gender qroup of aJ.l joint venture
partnersj
5. Actual work to be performed by the joint venture
partners;
6. Management and control of the joint venture partners;
.
7. Responsibilities of the joint venture partners;
8. Capitalization of the joint venture partners;
9. Financial participation of the joint venture partners;
10. Profit and loss of the joint venture partners;
~l.. Compensation to the joint venture partners;
~2. Rental of equipment or space agreements for the joint
venture;
13. Bonding and insurance for the joint venture; and
~4. Dissolution of the joint venture.

VII countinq of LBEIHBEI1lBEI:JV Pe.rticipation

MBE/WBE/JV participation shall be counted toward meeting the
goals as described in the following sections:
~. Payments to a LBE/MBE/WBE contractor or subcontractor
which cOlDpensates the LBE/MBE/WBE for work which it
.actually performs by its own forces may be counted. The
work performed must provide· a commercially useful
function. In the event that a minority business is owned
and controlled by women, the firm may be counted eitber
'towards the achievement of the goal for minority or
women, but not both.

Revised 10/23/95
Page 8

•
 a) , A, LBE/MBE/WBE is considered to be provicii.ng a
commercially useful function w~en it i~ responsible
• for execution 'of a distinct element of the work and
carries'· out 'it's responsibil~ti~s ,by actually
,perfopning, manaqing and/or supervisinq the work
'involved.' To determine whether.a ,~E/MBE/WBE is
.pe;rforminq ~ c~ercially useful function, 'the City
shall' evaluate 'the amount of, 'work ~~bcontracted.,
industry practices, and other rel~v~nt factors.
b) Consistent withnormal, industry. practices, a
LBE/MBE/WBE may enter into subcontr.acts. J:f a
LB:e:/~E/WBE subcontracts a significantly greater
portion 'or the work, of the contJ;'act., ~an, would be
expected o~ t~e b~sis of normal industry practices,
the LBE/MBE./WBE' shall, ,be, preswne~' not to be
providing a commerc~ally useful function. The LBE/
ImE/WEE may present' eviden.ce ~ t~, "reput this pre-
sumption tp the City. The City's decision on th~
rebuttal of this presumption is fin~l.
2. Payments to and women' 'owner operator of
minority
equ~pment ~i~l be credited 100% towards the achievement
of the MBE or WB~ goal but not both. 'rhe local, minority
or w~en owner-operator of equipment must own or be
purchasihg the equipment. Rental of equipment will not
.
.
_.""
I
b~ considered as being owner-operated.

3. A portion of" 'the 'payment ,to a join~ venture which

includes', a, LBE/MBE/WBE as a partner may be counted
towards acbiev'ement of the qoa~s... 'rhe portion of the
contract amount which compensates the j oint venture for
the work performed ,by the LBE/HBE/WBE 'partner may be
counted. 'The joirit ventur~ lIlU~t be approyed by the City
pri~r to any c~edit being given towards the achievement
of the qoalS. ", ' . . ." ':

4. A portion, Of ..' the payment to LBE/MBE/WBE'manufacturers,

fabricators, suppliers" or regular dealers, may be
counted towards' achievem~t of, ,the goals e'. Sixty -percent
',,{60%) of the purchase price.,pf goods' and s\lpplies will ~e
, credited' towards the 'achievement of the LBE/MBE/WBE
goals.
a) "For purposes'of this . section, , a ~anufacturer is a
f~rm that operates Or maintains . a factory or
establishlnent that produces on the' premises the
mat~rlals or supplies purchased.

',Revised ~O/23/95

page 9

'-", "-0 _ _-
'---.. _
....• --_.
 ·.
b. For purposes of this section, a regular dealer is a
firm that owns, operates, or maintains a store,
warehouse or other establishment in which the
materials or supplies required for the performance
of the contract are bought, kept in stock, and
regularly sold to the public in the usual course of
business. To be a regular dealer, the firm must
engage in, as its principal business, and in its
own na~e, the purchase and sale of the products in
question. A regular dealer in such bulk items as
steel, cement, gravel, stone and petroleum products
need not keep such products in stock, if it owns or
operates distribution equipment. Brokers and
packages shall not be regarded as manufacturers or
regular dealers within the meaning of this section.
5. Ten percent (10%) of the amount paid to LBE/MBE/WBE
brokers as commission, may be counted towards the goals.
6. One hundred percent (~OO%) of the amount paid to
LBE/MBE/WBE trucking brokers will be counted towards the
goals if the broker has:
a) Signed agreements that all trucking wi~l be
performed by LBE/MBE/WEE truckers;
b) a licertified roster" showing that all truckers are
certified LBE/MBE/WBEi and
c) a' signed statement on a "certified roster" that
indicates that 100% of revenue paid by the broker
will be paid to LBE/iMBE/WSE truckers listed on the
II certified roster".

7. Trucking brokers who do not meet the criteria of item 6

will only receive credit for the commission fee earned
and the actual dollar amount of work performed by
LBE/MBE/WBE truckers.

8. Payments to LBE/MBE/WBE firms that are not vendors-

.subcontractors, suppliers, manufacturers, regular
dealers, brokers, truckers or owner-operator of equipment
shall be credited towards the goals as follows:
a) The fees or commission charged for providing
professional, technical, conSUltant or managerial
services and/ or 'assistance in the procurement of
essential personnel, £acilities, equipment,
materials or supplies required for performance of
the con.tract will be counted, provided that the

Revised 10/23/95
Page 10
 •

.·City agrees the' 'fees or· commission is reasonable

'and . not excessl.ve ·.as cOlnpared with fees or
commis:~'icn customarily. allpw~.d.. for simi1ar
serviees.···
.b) . 'The fees. charged for delivery of m~t:erials and
supplies ~equired on a job .site ..(but not the cost
of: the· materials anQ. supplies the~~e~ves) when the
hauier, trucker,.' "or delive;ry service is not also
; .., the. manufacturer' of' or a reqular dealer in' the
. mater;i.als and suppiies" will ~ counted, provided
. that ~~e city agrees the fee is· ~easonable and not
excessive as compared.with fees customarily' allowed
for similar services. .

c) .The f~es ~r commission charqea for providing bonds

'. or . ipsurance . specifically· . ~~quil;~d ~or the
perfbrinance of" the contrac:t w~.11: be counted,
prQvided t~at the City agrees the fees or
coimniss'ion .'is reasonable' and not excessive as
compared with fees or co~ission customarily
allowed for similar services.

VI~X Maintaining HBEIWBE Participation

,-' ..
\

._-'
I
contractors must maint.ain the LBE/MBE/WBE percentages
indicated at time of contract award throughout the term of the
contract. This includes any increase of the contra.ct by
amenament or', change order.
Should . th~ vendor (s) 'fail to ,~aint.ain the·. do~lar amount for
LBE/MBE/WBE participation, the city may impose a penalty equal
to the·amcunt that should have been awarded to maintain the
part:i.cipat~6n' 'stated' in the ·bid. J:f the participation ~evel
stated.in the ~id is' less than the city qoals,. the vendor must
achieve the goals a's to the change' order 'or amenc1ments or·
demonstrat.e .a good f!1ith effort.
zx· .'Bid tt.ocess
"

ven~ors shall. notify local, minority and women vendor

associations and business development ~enters of their
intention t.~ .sol~c;.1: .. local, minority and women business
'ent~rise participation at least two (2) weeks prior to the
bid or prcp~sal due. datesopening. Such. notification shall he
by regist'ered or certified mail. Vendors shall also seek out
local, minority or women suppliers, .'manufacturers, brokers,
~ckers or owner~operators of equipment ,by making positions
~d opportunities known to the' news media servicing minority
and women vendors.
So as to afford 'local, minority and women suppliers and

~J
Revised ~O/23/95

Page 1·1 ~

. ---_.._- - ----_.
A;J
 prefabricators an opportunity to participate in the work,
vendors shall notify local, minority ana women suppl.ier
associations or clearinghouses of their supply or
prefabrication needs at least two (2) weeks prior to the bid
opening. Such notification shall be by registered or
certified mail.
1. Bid Opening - Vendors must submit with their bid a
listing of all LBE/MBE/WBEs that will be utilized on the
project. Vend-ors must list the respective doll.ar amounts
for LBE/MBE/WBEs. LBE/MBE/WBBs must be certified prior
to submittal of the bid in order for credit to be applied
towards the goals. In addition to any other documents
required by the bid specifications, the vendor shall
submit the List of vendors (Exhibit B).
2. Vendors must submit with their bid an Affidavit of Non-
Disciplinary or Investigatory Action form attesting that
no adverse action has been taken against them by Equal
Employment opportunity commission (EEOC), state of
California Department of Fair Employment and Housing
(DFEH) or the u.s. Department of Labor Contract
Compliance Program (OFCCP) or to provide an explanation
for any such actions, except where legal action is
pending (Exhibit C).
3. Pre-award Meeting - The City will review the three lowest
bidders to determine whether or not the goals have been
achieved or documentation of a good faith effort has been
made by the bidders. The three apparent low bidders will
be required to attend a pre~award meeting to determine
compliance with the Local, Minority and Women Business
Enterprise Purchasing Program. The bidders shall provide
the city with the bid doc~ents or price quotes received
from the three lowest bids received from vendors,
suppliers, truckers, and owner-operator of equipment to
be used on the project. This list should include name,
address, telephone number, trade, contact person(s) and
the total dollar amount of the subcontract.. The vendor
shall also indicate the businesses claiming to be owned
by local, minorities or women.·

If the vendor bas not achieved the goals for local, minority
and women business enterprise participation, the city shall
determine whether the vendor made a good faith effort to
achieve the goals. This will be done by reviewing the
docu~entation sub.mi~ted by the vendor.

Revised 10/23/95
Page 1.2
 The vendor shall. nQtify LBE/MBE/WBE :Qusinesses of thei.r intent '
.to solicit participat~on from the~e qroups.~t ~east two (2)
week~:.prior :to the suDmittal··of a bid. . , ' '.' ....

As a minimum, the vendor'shall take the. fOllo~i~$ steps:

l.. Adv~~se in three (3) publications, the 'City'S
~ffi¢ial .~oca1 newspaper; a.~nority/women business
publica1;~on ·.-and a· maj or pusines·s publi·cation). The
. advertise~m~t in' such publi.cations shQuld appear
two . weeksr 'prior ·to submittal 'of ·bid . qr
proposal.
·The· advertisement: must ciescribe the' commodation
being.' sol,icited and qive the." 'nallle ~rid telephone
number' o'f 'a contact ~erson with kriC?wl~dqe of the
bid prop·o·sal. . . ~
2. Two (~ ), '. w~~s prfor· to .' th~ biQ or proposa~ due
,·date,."letters~" 'must·:be s~nt certified return re-
;'ceipt reques~ed·· to LBE/MBE/WSE ~si}.·u~sses. The
'lettE¢ lill:lS.t describe. the commod.~ty ':~o" be purcha$ed
or' scope 'of work. being 'solicited, insurance
requiremEUlts, c~ntact pers;;on ~ith ~ow~edge of the
'project, when bids are .due and wl;l~e specifications
and plans' can be 'obtained.' As a minimum, the
vendor shall send four (4) letters to loca1
....... businesses, three (3) letters to minol;"ity .
businesses and one (~) letter to women businesses
for each commodity.
:3 il Two "(2) weeks prio~ to the' bid· or proposal due
.date, letters should. be s,end. certified return
receipt requested td LBE/~E/WBE business
associa.tion~· and development. ce:nte~s or any other
re~a~ed a9~cy" which dissE!lUinat~s p~d information
to LBE./~E/WBE businesses ~ Let~er!ii ,must be sent to
minim~ of'. four' (4) organizations .and contain the
infonijation stated': in item nwn}:)er 2 abo-vee
"

4. Descr~b.e efforts to' enter'. in~o joint. venture

arranqemen~s with LBE/MBE/WBE bu~inesses. Provide
a description of 'efforts to . ~nter into joint
,venture arrangements.

Revised 10/23/95
Paqe 13

.... _--- .- .... _.. -_..

 5. Describe assistance provided to LBE/MBE/WBE
businesses relative to:
a) Review of specifications or documents issued
by the City;

b) Review of work to be performed by the sub-

vendors;
c) Describe or document efforts und.ertaken to
encourage majority sub-vendors to utilize
LBE/MBE/wBE businesses;

d) Document any other effort undertaken by the

vendor to encourage the participation of
LBE/MBE/WBE businesses; and
e) Report responses and proposals received from
LBE/MBE/WBE businesses. This report should
indicate the a.ctions taken by the vendor in
response to the proposals received from
LBE/MBE/WBE businesses and from joint ventures
which include LBE/MBE/WBE businesses. In
cases where proposals have been rej ected by
the vendor the reason(s) for rejection shall
be indicated.
X Monitoring
To ensure compliance with the program the vendor must ensure
that the City has the right to review all records and
documents of the vendor, as well as all vendors. Failure to
allow the City to review the records may result in a penalty
of 1% of the contract amount or $1,000 per day, whichever is
less. Such refusal shall be deemed a material breach of
contract which may result in termination of the contract. In
addition, the vendor or vendors may be debarred from partici-
pating in future City contracts.
No substitution. can be made of a listed local, minority or
women vendor, ·trucker, manufacturer I supplier and owner
operator of equipment without the approval of the City.
Should the prime vendor fail to achieve the LBE/MBE/WBE
participation listed at the time the contract is awarded, the
City ~ay impose a penalty equal to the amount that should have
been awarded to the LBE/MBE/WBE.

Revised 10/23/95
Page .14
{

VendQrs must provide, Exhibit 0, with each progress payment

.indicating payments made to' 'LBE/MB.E/WB~s ..i~ order to receive
subsequent progress payments.
I .! •

'XI: Emerg'pcy Wark

. LBE/tmE/WBE f'ir.ms wi~l be qiven prio:r;~ty consideration for
emerqency type work commensurate with the qoa~s of this
progru. A ~istinq of available LBE/MBE/WBE firms will be
.. established on' an annual basis to b~~ed for emergency work.

XZI Protest, Prooedure .

In the ~veht a ~eter.minatiQn is made- that 'the apparent 10w
bidder has not made a 'qood .faith '.effort to achieve the Ideal"
..min~:r;;ity and ~omen business enterprise participation goals,
said p~y shall have the' right .to :pro:t;.est s~ch determination
.b~f~re.the·Ci~y·co~cil·. 'The city sp.a~l notify said party by
certifieci or registered mai~ of the da~$ when the Council will
consider the rejeCtion of the Did of ·the apparent low bidder
apd also hear an.d. 'consider the' protest.

·.if'the' 'council sustains the determination that a good faith

effort was not made, the Council shall award the contr~ct to
lowest responsible bidder.
Substitution
Prime'vendors who have entered into a co;ntract wi th the City
cannot ~ti1lstitute a listed MBE/WBE/LB! ~ithout the approval of
the City. " . '. . '.' .' . , .

subst~tution of ~E/wBE/LBE will .. be'qra~te,d.1JY, the city on the

following ~on'd~ ~ions; . . ' . '. ...... ,
1. A Written' statement' from. the listed ~~/WBE Lbe
agreeinq to the substitution; .
2.. When the' MBE/WBE/LBE has .been.; .q·:j.ven· a ~easonable
opportunity ·to ekecute a contract., .fai.ls to or refuses
to execute a written ~ contract when _such written
contract i~ based upon the City's conditions an scope
~f .work:
3. When a MBE/VlBE/LBE becomes· bankrupt or. insolvent;
4. When the MBE/WBE/LBE fails to,' or refuses to perform
its contracts;
Revised 10/23/95
Paqe 1S

----.. -_ ....-._---
,
--- ...... .
 5. When the MBE/WBE/LBE fails or refuses to met contract
insurance requirements; or
6. When the city or the duly authorized officer determines
that the work performed by the MBE/WBE/LBE is substant-
ially unsatisfactory,. or not in accordance with the
contract agreement, or that the MBE/WBE/LBE is
substantially unsatisfactory, for not in accordance with
the contract agreement, or that the MBE/WBE/LBE
substantially aelaying or disrupting the progress of the
work.
Prior to the approval of the prime consultant's request for a
substitution,the city shall give notice in writing, to the
MBE/WBE/LBE of the prime consultants's request for a
substitution and/or the reason for such request. Such notice
shall be served by certified or registered mail to the last
known address of the MBE/WB~/LBE. The listed MBE/WBE/LBE who
has been so notified shall have five working days in which to
submit written objections to the substitu~ion to the City.
Failure to file such written objections shall constitute the
MBE/WBE/LBE consent to the substitution.
If written objections are filed, the City shall give notice in
writing of at least five working days to the MBE/WBE/LBE of
the hearing by the city on the prime vendor request of the
substitution.
xrv Non-compliance
Should the prime vendor fail to maintain the stated dollar
amounts of award of any listed vendor, the city may impose a
penalty equal to the dollar amount of the vendor's ~mount.
In addition, failure to comply with these provisions will
result in a monetary penalty of ~% or $1,000 per day of the
contract, which ever is less and shall be deemed a material
breach of the contract of which termination of contract may
result. In addition, the prime vendor or subvendor may be
debarred from participating on future City and Redevelopment
Agency contracts for ~ period of up to one (1) year.
xv program Review
The Local, Minority and Women Business Enterprise Purchasing
Program will be periodically reviewed by the Ci ty Manager.
Changes in the program which are required to effectively
administer the program may be made by the City Manager. A
quarterly review of all Local, Minority and Women Business
Enterprise Purchasing Program contracts will be provided to
the city Council.

Revised lO/23/95
Page 1.6
 t.X1I1 U I L n
SMALL IlUSIN llZE sTAtlDARDS DE soA

ona tables, a business Is sm." II

Its ' ~ver~gB Bnnual re~elp'G lho lasl 3 liscal years do not excBed $7.6 million . .

Small II lis avarage annual ocalpls lor lhe 1051 3 yoeredo nof e,coed $1 T million.

Small·II lis average annual recolpla lor precoedlng 3 IIscel yeine"do nol a,ceed $1"4 minion.

prevlou8 3 Yeafs " previoul 3·yeara

In Million. $ nollo Exceed In Millions $ n"llo Exceed

IC,,,p'ellr.g & Flooring M~In'enance

IC"ncr"sls Work " CI"anlno &' lJyslng '(lncludlng "rug cleaning sorvlcss)
JEI"clrlcal Work Computef Malnlenonce SeMcDs
IE1<cavallng & ,Found allan Work Compulor Programming Ssrvlca.
laying and Olhar.,Floor Work General Construction (f'rlme Convaclo~s)
Bnd Glazing Work Oala. ProcessIng Sorvlces· . .'
11~::~a~:~~,o~or Erecllon 01 Building Equip. O",do,lno (al 10a.I' 40% yardago adverUsed "
II Siono Solllrig & Othar Siona Work plens or specs; 'or 40% m,usl bs 'd ons with squlpmanl
IP" lnlino. Peperhanglng & Oecoralln9 " owned by dredging 'concBms)
IPI,ashlrlng, "Drywall, Acousllcal & Insulallon Worl< ' Pre,le,.. I,,"al Archlleclural & Englnaa~ng " Svc,
.... IIJm'"nO, Heeling ,(EKeepl Eleclrlc) & Nr Condilloning Food Services ·
IA clo llrlU & Sheel MOlalWork Jarlllorlat. & Cu"slodlsl Saivlces

I
;;~;;:~~II:;rada Conlraclors Nol Elsewhare Class iliad
Sla.1 "Eracllon .
Laundry SelvlClle (lncluda. Unan eupply, dlap,,"r .arvlces,
Industrial laundaring) " '
Ilia. Marbla & MosalcWork Molorcar Renlal .\ Laaslng 'Sarvlces (Includ.s; huck
Well D'"l1ng' - & leasing servlCtlG) -:
IW',""kln,n & Dam 0111 on WOlk Ssrvl"". - GanGral(any sarvle.. nol spacilically donned
SBA ragulaUons. '

Indspandently , and oparaled"

2. Not domlnanl In lis 'liaid'
3. Ha. la.s than 500, employs.s
- ',~, .'

Indus Ural Bids and WIH

Non-resldantlal bids" oU,ar Iha" Induslrlal bldg and '/fill High
Highway and Sireel ConsirucUon,"eKeapl elavalad hlghw~ya.
Brlrlga. IUllnal & elavBled highways conslrucllon
Walar & .awar plpellnae, communioatlns and powar IIna conslructlon
Heavy conslruotlon aKeapl dradglng NEC " Roy. fR Vol. M,
M22~ 02lflfv3
 I:.XnlDl1: U

MINORITY, WOMEN AND LocAL BUSINESS VENDOR LISTING

The Contrador herewith submits a complete lisl of Vendors to be used on the project. The Contractor agrees that no changes will be made in this
list without the approval of the Director of Public Works. . . .
Print/Type Company Name:
~ ---------------------------------------------------
1. Vendor LisIiDI: Signed:
-----------------------------------------------
List all Vendors to be used on the project by name, addressed, type of conunodlty provided, dollar amount and check appropriate
box(es) If minority owned or women-owned, local business enterprise.

IA Name of Address, City Type of Dollar Ownership

Vendor & Phone Number commodities to be provided Amount MOB WBB SLBE

.
I

L- - ----- - - - - - -- -~--- --

t-
Sub llstlr nnlVendor
\
Revll tOIl 8196
 Exhibit C

-j

AFJ'n)AV'IT" OF ,NON-DI:ScnLZHDy em DlVESnGATOltY Acncm

I certi£y that the' rioe, DFEH or the OFCCP has not -taken aqa.j.nst
disciplinary or investiqatcry .action aqainst ~B - Fil:m. tt ~ such
action nas- been taken, attached hereto is a detalled. exp1anatiam ot,
the reason for 'such a-cticn, the part:y institutiilq- such action and'
the status- or outc,ome of such acticn. , -
I dec~are under penalty of perjurY that the foreqoinq is true and
ca~ect to the best of my knowleaqe.

signature Date

In witnass whereof; the undersigned has e~ecutad this instrument

this. day of I 1.99 __

(Signature and Ti.tle)

(Name of Firm)"

(street Ad.dress)

(City, state ,and Zip Code)

SUbscribed and sworn 'to before ~e this ______ day of --~_______ i
199__

~ctary Public
My cammission expires

. ,.

-.---.----~
 PROGRESS PAYMENT FORM
FOR
Exhibit 0
SUS-VENDORS

Phone Numbar

Compliance Offtcer _ _ _ _ _ _ _ __
Vendor

Sub-Vltftr::kn cantract AlDaunt Paym8llt far Paymant

At BId ODHlng Date thlaPerlacl YTD

.'

.-

Name & TItle Date

Under penalty of perjury the undersigned agr8~s tha1 the foregoing information Is true and correct.