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Home My WebLink AboutIR 7417 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7417 w.,�ftiRf To the Mayor and Members of the City Council September 26, 1989 Page One *�xr • Subject: CITY-WIDE T� DISADVANTAGED SUS I NESS ENTERPRISE POLICY The City of Fort Worth currently has in place a policy (C. P. 128, July 8, 1986) aimed at increasing the level of participation of Minority and Women Business Enterprises (MBE and WBE) in all City funded procurement activities. As a result of recent Supreme Court decisions, it is necessary to implement a race-neutral Disadvantaged Business Enterprise (DBE) Policy until the completion of additional surveys and studies. Council Policy 145 has been included on the September 26, 1989 City Council agenda for action. BACKGROUND In 1978, the City Council adopted a policy that was aimed at increasing the level of participation of minority business enterprises (MBEs) on City projects funded by the Department of Transportation, primarily the Urban Mass Transportation Administration (UMTA) . The policy was revised in 1980 to include women-owned businesses (WBEs) ; and was further revised in 1983 to comply with UMTA' s requirement to change to a ' Disadvantaged Business Enterprise Program. This policy applied to only those projects which were federally funded. After program implementation, the reports submitted to UMTA reflected that there was sufficient participation by MBEs and WBEs to meet the federal requirements. In comparing the MBE and WBE participation on City- let, City-funded projects during the same time period, it became readily apparent that the level of participation was extremely low and in some areas non-existent. On July 8, 1986, in order to address this passive discrimination, the City Council adopted C. P. 123, instituting a program aimed at increasing the level of MBE and WBE participation in all City funded procurement activities. The participation by MBE and WBE firms has increased each year the program has been in existence. gOU81, ACTION§ The United States Supreme Court decision in the case of City of Richmond v. J. A. Croson Co. , 109 S. Ct. 706 ( 1989) , establishes new standards by which the constitutionality of local governments' MBE and WBE programs will be judged. In Croson, the Supreme Court held that a local government say maintain a program if it is necessary to assure that the local government is not a "passive participant" in a system of racial /social exclusion practiced by contractors in the private sect ; or if such a program is necessary to eradicate the vestiges of its own past discrimination. The Court further held ". . . that any public entity, state or federal , has a compelling interest in assuring that public dollars, drawn from the tax contributions of all citizens, do not serve to finance the evil of private prejudice. " In the concluding section of the majority opinion, ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS --- INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7417 Sicokf To the Mayor and Members of the City Council September 26, 1989 ��= Page Two rtx"y• Subject: CITY-WIDE D I SADVANTAGED BUSINESS ENTERPRISE POLICY .,73 the Court reiterated that "NIhere there is a significant statistical disparity between the number of qualified minority contractors willing and able to perform a particular service and the number of such contractors actually engaged by the locality or the locality' s prime contractors, an inference of discriminatory exclusion could arise. " Pending completion of additional surveys and studies which are required as a result of Croson, it is necessary to repeal C. P. 123 and adopt a DBE program. The DBE Program will be narrowly tailored, per the Supreme Court decision, to include the major presumptive groups in the metro- plex that have suffered as direct recipients of the past exclusionary practices in the private and public sectors. For the purposes of this policy: 1 . "Disadvantaged Business Enterprise" is defined as a business concern currently doing business and/or located in the Fort Worth Dallas metroplex meeting the following criteria: a. which is at least 51 percent owned by one or more socially and economically disadvantaged individuals, or, in the case of any publicly owned business, at least 51 percent of the stock is owned by one or more socially and economically disadvantaged indi- viduals ; and b. whose management and daily business operations are controlled by one or more of the socially and eco- nomically disadvantaged individuals who own it. C. Any person, firm, corporation, or partnership which has a current certification from the Small Business Administration under Section 8(a) of the Small Business Act. 2. "Socially Disadvantaged Individuals" means individuals who have been subject to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their qualities as individuals or capabilities as a business. 3. "Economically Disadvantaged Individuals" means socially disadvantaged individuals whose ability to compete in the free enterprise system is impaired due to diminished opportunities to obtain capital and credit as compared to others in the same rL line of business who are not socially disadvantaged. ISSUED BY THE CITY MANAGER I FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7417 �&0, an, � o�ioRr�s To the Mayor and Members of the City Council September 26, 1989 Page Three } xt �' Subject. CITY-WIDE DISADVANTAGED BUSINESS ENTERPRISE POLICY ♦ts 4. For the purpose of this Policy, the City shall presume that individuals in the groups listed below who are citizens of the United States or lawfully admitted permanent residents, are socially and economically disadvantaged. The presumption, however, is rebuttable and parties may challenge whether any particular person in one of these groups is actually disadvantaged. The groups are: a. Black Americans- persons having origins in the black racial groups of Africa; b. Hispanic Americans- persons of Mexican, Puerto Rican, and Cuban origin; and C. Women. Individuals who are not members of the presumptive groups may nevertheless be found to be socially and economically disadvantaged on a case-by-case basis. INTERGOVERNMENTAL COOPERATION An Intergovernmental Agency Group ( IAG) consisting of metroplex MBE and DBE Coordinators have been informally meeting for the past two (2) years. The IAG is comprised of the following governmental agencies : City of Fort Worth, City of Dallas, Dallas/Fort Worth International Airport, Dallas Independent School District, Dallas Community College District, Fort Worth Housing Authority, Dallas Housing Authority, Dallas Area Rapid Transit, and Dallas County. These agencies meet monthly to exchange procedural information in hopes of jointly performing activities that will reduce the cost to the perspective agencies and provide the DBE community with comprehensive programs such as joint trade fairs and workshops. In order to formalize this relationship, all participants have been requested to sign the Memorandum of Understanding that is Included as Attachment G in the background material . Unless otherwise directed by the City Council , the City Manager will sign this memorandum on behalf of the City. [ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7417 �artcoar� To the Mayor and Members of the City Council September 26, 1989 Page Four Z )A` Subject. CITY-WIDE D I SADVANTAGED BUSINESS ENTERPRISE POLICY 1073 DISPARITY STUDY The Supreme Court decision requires an independent study on disparity in the areas of DBE availability, capability and past and present discrimination in the public and private arena. Assuming such a study is conducted, it is anticipated that the IAG will be primarily responsible for developing the scope of work and preparing a Request for Proposal for consideration by the member agencies. If the authorization is granted to proceed, a formula will be developed to identify how the cost will be shared among the various agencies. DBE OFFICE Attached are the procedures used by the DBE Office to implement the program. The DBE Office will continue to monitor, collect statistical data, provide certification under the guidelines of the Policy and present progress reports to the City Manager. This policy will be discussed during the Pre-Council Meeting during September 26, 1989. If additional information is desired, it will be provided upon request. 4� Douglas Harman City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS --