HomeMy WebLinkAboutOrdinance 22972-10-2017 Ordinance No. 22972-10-2017
AN ORDINANCE AMENDING CHAPTER 20 "LICENSES AND MISCELLANEOUS
BUSINSS REGULATIONS," ARTICLE X, "MINORITY AND WOMEN BUSINESS
ENTERPRISES" OF THE CODE OF THE CITY OF FORT WORTH, TEXAS (2015),
AS AMENDED, BY AMENDING CERTAIN DEFINITIONS IN SECTION 20-366;
PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL PRIOR
ORDINANCES AND REPEALING CONFLICTING ORDINANCES; PROVIDING
FOR SEVERABILITY; PROVIDING FOR PUBLICATION; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Council previously adopted the Business Diversity Enterprise Ordinance
(Ordinance No. 20020-12-2011), as amended by Ordinance No. 21606-01-2015 (the "Ordinance"),
which is codified in the City Code at Chapter 20, Article X; and
WHEREAS, among other things, the Ordinance establishes a program under which goals will
be established in the awarding of certain City contracts for the utilization of certified minority business
enterprises (MBEs) and small business enterprises (SBEs) whose principal places of business are
located in the Counties of Tarrant, Denton,Wise, Parker, Johnson or Dallas(defined in the Ordinance
as the"Marketplace") or which have a "Significant Business Presence" in the Marketplace; and
WHEREAS, the Ordinance provides that a business whose principal place of business is
located outside the Marketplace nevertheless has a "Significant Business Presence" in the
Marketplace if, among other things, at least forty percent(40%)of its full-time and part-time employees
are based in the Marketplace; and
WHEREAS, pursuant to the Ordinance and Resolution No. 4690-10-2016, the City Council
has established a Minority and Women Business Enterprise Advisory Committee(the "M/WBE-AC")
to make recommendations to the City Council and the City Manager in improving the effectiveness of
the Ordinance and increasing the availability of eligible vendors and contractors to bid on City contracts
as part of the City's business diversity enterprise program; and
WHEREAS, in an effort to develop and stimulate the growth of MBE and SBE capacity in the
Marketplace,on August 18,2017 the M/WBE-AC voted to recommend that the definition of"Significant
Business Presence" in the Ordinance be amended to provide that an otherwise qualifying business
has a "Significant Business Presence" in the Marketplace if at least twenty percent (20%) of its full-
time and part-time employees are based in the Marketplace, rather than forty percent(40%); and
WHEREAS, the Ordinance further provides that a business is eligible for participation in the
City's business diversity enterprise program only if that business is certified by the North Central Texas
Regional Certification Agency (NCTRCA) or another certifying agency whose certifications are
accepted by the City; and
WHEREAS, pursuant to a recommendation by the M/WBE-AC on August 18, 2017, the City
intends to begin accepting certifications from the Dallas/Fort Worth Minority Supplier Development
Council and the Women's Business Council — Southwest, in addition to its continuing to accept
certifications from the Texas Department of Transportation as well as from NCTRCA; and
WHEREAS,the definition of"Principal Place of Business"in the Ordinance accordingly needs
to be amended to accept determinations of a business's primary location from all acceptable certifying
agencies, rather than from just NCTRCA as currently provided;
NOW,THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH,TEXAS:
Section 1.
DEFINTIONS.
The definitions of the following terms set forth in Section 20-366 (Definitions)of the City Code
are hereby amended to read as follows:
PRINCIPAL PLACE OF BUSINESS. The address listed as a business's
primary business location in the current database of the North Central Texas
Regional Certification Agency or another certifying agency whose certifications are
accepted by the City.
SIGNIFICANT BUSINESS PRESENCE. A place of business whose
Principal Place of Business is outside the Marketplace and whose location within
the Marketplace has been verified to be in existence for a minimum of 24 months
and from which (1)at least 20%of the business's full-time and part-time employees
are based in the Marketplace and (2)a Commercially Useful Function is conducted
that is significant to the specific project. A location utilized solely as a post office
box, mail drop, or telephone message center or any combination thereof, with no
other substantial work function, shall be construed to constitute a Significant
Business Presence.
Page 2
Ordinance 22972-10-2017 Amending Section 20-366 of the City Code
(Business Diversity Enterprise Ordinance)
Section 2.
CUMULATIVE NATURE.
This Ordinance shall be cumulative of all ordinances of the City, except where the
provisions of this Ordinance are in direct conflict with the provisions of such other ordinances, in
which case the conflicting provisions of such other ordinances are hereby repealed.
Section 3.
SEVERABILITY.
If any portion, section or part of a section of this Ordinance is subsequently declared invalid,
inoperative or void for any reason by a court of competent jurisdiction, the remaining portions,
sections or parts of sections of this Ordinance shall be and remain in full force and effect and shall
not in any way be impaired or affected by such decision, opinion or judgment.
Section 4.
PUBLICATION.
After the adoption of this Ordinance and in accordance with Section 2 of Chapter XXV of
the City Charter of the City of Fort Worth, Texas, the City Secretary of the City of Fort Worth is
hereby directed to have this Ordinance published in its entirety two (2) times in the official
newspaper of the City. In lieu thereof, the City Secretary may have descriptive captions or titles
that summarize the purpose of this Ordinance and the penalty for violations thereof published two
(2) times in the official newspaper of the City.
Section 5.
EFFECTIVENESS.
This Ordinance shall be in full force and effect following its adoption and publication as
specified herein.
Page 3
Ordinance 22972-10-2017 Amending Section 20-366 of the City Code
(Business Diversity Enterprise Ordinance)
AND IT IS SO ORDAINED.
ADOPTED: October 24, 2017
EFFECTIVE: I p h L-
APPROVED AS TO FORM AND LEGALITY: ATTEST:
i
Peter Vaky Mary J. Kay e,
Deputy City Attorney City Secretary
M&C:-G-19145
Page 4
Ordinance 22972-10-2017 Amending Section 20-366 of the City Code
(Business Diversity Enterprise Ordinance)
Redline Depicting Changes to Section 20-366 of the City Code
(Business Diversity Ordinance)
PRINCIPAL PLACE OF BUSINESS. The address Fef1eted sted as a business's primary
business locadion in the current database of the North Central Texas Regional Certification
Agency eu �ent M.,*.,L.ase t D.•:., ' � ni r• B �r another certifying a=icv whose
Hll Vll t- database {.{U �11V 1 1111V 1'./HI 1 LG1VV VI lJ Ut7I77liL�II
certifications are accepted ie Ci
SIGNIFICANT BUSINESS PRESENCE. A place of business whose Principal Place of
Business is outside the Marketplace and whose location within the Marketplace has been verified
to be in existence for a minimum of 24 months and from which (1) at least 4"11 20% of the
business's full-time and part-time employees are based in the Marketplace and (2) a
Commercially Useful Function is conducted that is significant to the specific project. A location
utilized solely as a post office box, mail drop, or telephone message center or any combination
thereof, with no other substantial work function, shall be construed to constitute a Significant
Business Presence.
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10/24/2017 - Ordinance No. 22972-10-2017
DATE: Tuesday, October 24, 2017 REFERENCE NO.: **G-19145
LOG NAME: 17BDEAMEND2017
SUBJECT:
Adopt Ordinance Amending Chapter 20, Licenses and Miscellaneous Business Regulations, Article X
Minority and Women Business Enterprises, Section 20-366 of the City Code, to Revise Definitions of
Principal Place of Business and Significant Business Presence (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Ordinance amending Chapter 20, Licenses
and Miscellaneous Business Regulations, Article X Minority and Women Business Enterprises, Section
20-366 of the City Code, to revise the definitions of Principal Place of Business and Significant Business
Presence.
DISCUSSION:
Under the Business Diversity Enterprise Ordinance (the Ordinance), codified at Chapter 20, Licenses and
Miscellaneous Business Regulations, Article X Minority and Women Business Enterprises of the City
Code, the City Council has established a program under which goals will be established in the awarding of
certain City contracts for the utilization of certified minority business enterprises (MBEs) and small
business enterprises (SBEs) whose principal places of business are located in the Counties of Tarrant,
Denton, Wise, Parker, Johnson or Dallas (defined in the Ordinance as the Marketplace) or which have
what the Ordinance defines as a Significant Business Presence in the Marketplace. Currently, the
Ordinance stipulates that an otherwise qualifying business has a Significant Business Presence in the
Marketplace if at least 40 percent of its full-time and part-time employees are based in the Marketplace.
On August 18, 2017, the Minority and Women Business Enterprise Advisory Committee (M/WBE-AC)
voted to recommend that the definition of Significant Business Presence in the Ordinance be amended to
provide that an otherwise qualifying business has a Significant Business Presence in the Marketplace if at
least 20 percent of its full-time and part-time employees are based in the Marketplace, rather than 40
percent. City staff and the M/WBE-AC met several times during the past six months to discuss this
issue. While the Office of Business Diversity has made progress in improving subcontracting
opportunities for MBEs on City contracts, there are still challenges in meeting and/or exceeding the 25
percent aspirational MBE subcontracting goal primarily due to constraints related to vendor capacity and
the number of firms certified to bid on City work. The M/WBE-AC believes that the recommended
amendment to the Ordinance will help develop the growth of MBE firms in the area. The six counties
comprising the Marketplace is the geographic market area defined in the Availability and Disparity Study
on which the Ordinance is based.
Only those businesses that are certified by the North Central Texas Regional Certification Agency
(NCTRCA) or another certifying agency whose certifications are accepted by the City are eligible to
participate in the City's business diversity enterprise program. Currently, the City also accepts
certifications from the Texas Department of Transportation.
Logname: 17BDEAMEND2017 Page 1 of 2
At the August 18, 2017 meeting of the M/WBE-AC, the Presidents of the Dallas/Fort Worth Minority
Supplier Development Council (D/FW MSDC) and the Women's Business Council — Southwest (WBC-
SW) presented an overview of their certification programs. In an effort to further increase participation in
the City's business diversity enterprise program by qualifying businesses, the M/WBE-AC supported a
recommendation to add these agencies as appropriate third-party certifying agencies accepted by the
City.
Although the Office of Business Diversity can implement this recommendation without formal action by the
City Council, it is necessary to amend the Ordinance's definition of Principal Place of Business in order to
provide that the address of a particular business's primary business location will be established by the
agency issuing the certification. Currently, the Ordinance provides that a business's principal place of
business is determined only by NCTRCA.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that this action will have no material effect on City funds.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # mount
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # mountl
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Robert Sturns (2663)
Additional Information Contact: Gwen Wilson (2676)
Logname: 17BDEAMEND2017 Page 2 of 2