City Policies Purchasing Policy; Disadvantaged Contractor - 8/12/03

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                                                                       F- (2-03

                                                                      2003-64 ()




Date:               August 5, 2003

To:                 Honorable Mayor and City Commissioners

From:               Ken James, Affirmative Action Director


Re: —               Disadvantaged Contractor Recommendations

Summary of Request:


To approve the attached list of recommendations to the City’s bid proposal
process.



Financial Impact:


None


Budget Action Required:


None


Staff Recommendation:


Staff recommends approval (The City’s Equal Opportunity Committee
approved this document on 6/23/03)


Committee Recommendation:


NA
                                     PARMENTER                           OTOOLE
                                                           Attorneys at Law



                               175 West Appie Avenue «   P.O. Box 786 & Muskegon, Michigan 49443-07
                                                                                                    86
                                      Phone 231.722.1621 = Fax 291.722.7866 or 231.728.2
                                                                                         206
                                                         www.Parmenterlaw.com




  July 3, 2003


  Ken James, Affirmative Action Director
  City of Muskegon
  933 Terrace
  P.O. Box 536
 Muskegon, MI 49443-0536


 Dear Mr. James:


 You requested our opinion regarding the recommendati
                                                      ons to amend sections of the bid proposal
 process, a copy of which is attached.          I presume this applies to all bids for construction projects
 regardless of which department is overseeing the project. The
                                                               only changes arising from the
 amendments are the inclusion of paragraphs 1a, 1c, and 7.


 The amendments would:


 lL.       Require contractors to contract disadvantaged subcontractors or explain why the
           disadvantaged subcontractors were not contacted;


2.         Provide bid approval authority to the Affirmative Action Director for the
                                                                                     purpose of
           ensuring that City regulations were followed; and


3.         Add the Urban League to the list of bid document holders.                                       “

While there is no legal impediment, you may wish to consider the following:


19)        You may wish to define “disadvantaged contractor" so that contractors and
           subcontractors can comply;


2)         You may wish to treat the Urban League as you do any other bid holder,


If you have any other questions, please feel free to contact me.


Very truly yours,
       ‘       ~.    | .   ’




John C. Schrier
Direct: 231.722.5401                                                                                 ew
Fax: 231.728.2206                                                                                 G         no
E-Mail Address: jcs@parmenterlaw.com                                                     A               4 py    oe
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                                                                 Last Updated, August 5, 2003



                          Disadvantaged Contractor Recommendations


    1.       Bid contract changes
                a.   Disadvantaged Contractor Affidavit
                b.   Diversity Participation and Local Employment Effort
                c.   Affirmative Action Director review of lowest responsible bidder
             Bidder list information
   NAW EWN




             County Wide Certification
             List of Local Disadvantaged Contractors*
             Best practice efforts of other communities
             Scope of project breakdown
             Urban League as a bid document holder



Definition: Disadvantaged Contractor
For the purpose of this document a disadvantaged contractor refers to businesses that are
owned and controlled by minorities, women, and other socially and economically
disadvantaged persons. The overall goal is to create a level playing field on which
disadvantaged contractors can compete fairly for contracts and sub-contracts with the
City of Muskegon.
     Introduction


 The Affirmative Action Department recommends seven changes concerning the City of
 Muskegon’s current bid proposal process. By implementing the recommended changes
 the City will be able to enhance its bidding process to include more participation from
 disadvantaged business professionals.


    1.     Bid contract changes:


              a.    Disadvantaged Contractor Affidavit


The recommendation is that a disadvantaged contractor affidavit be added tothe City of
Muskegon current bidding forms. This affidavit would require all bidders to list all
disadvantaged contractors that were contacted to participate on the project as sub-
contractors. The bidder must clearly state which disadvantaged contractors were
contacted and, if not considered, the reason why.


              b.   Diversity Participation and Local Employment Effort


The recommendation is that attention is called to pages “v” and “vi” under the Invitation
for Bids section, and page 55 of part 3, section 2, Affirmative Action to Ensure Equal
Employment Opportunity. This department further recommends that City language
includes that Qualified Disadvantaged Contractors must be considered on City projects
and Prime Contractors/Bidders must consider utilizing Disadvantaged Contractors as sub-
contractors on City projects.


             c.    Affirmative Action Director Review of lowest responsible bidder


The recommendation is that any lowest responsible bidder referred to the City
Commission by any City Department includes the approval of the Affirmative Action
Director. This is to ensure that all regulations were met by the bidder during the bid
process.



    2.   Bidder list information:


The recommendation is that an official list of all bid holders be maintained in City
Clerk’s office. The list should include name of business, contact person, business
address, telephone number, fax number, and email address if applicable. This
information is to be available upon request to any individual wishing to be considered as
sub-contractor.


   3,    County Wide Certification:


This department recommends that the City of Muskegon continues to work with other
county agencies in formalizing a certification process.
    4, List of Local Disadvantaged Contractors:

 The Affirmative Action Department will maintain an accurate list of local disadvantaged
 contractors and this same list will be provided to all bid holders.

 Please note, once the County Wide Certification process is complete, the Affirmative
 Action Department will maintain a certified list of local disadvantaged contractors.

    5. Best practice efforts of other communities:

 The Affirmative Action Department will remain abreast of new practices and current
 trends utilized by other communities that may enhance our efforts. If deemed necessary,
 new recommendations will be made.

    6. Scope of project breakdown:

 The City of Muskegon will continue to include on its construction sheets all jobs broken
 down by job specification. This is to ensure that sub-contractors can know the specific
 needs of the project and focus their particular trade.

    7. Urban League as a bid document holder:

 ‘The recommendation is that the Urban League of Greater Muskegon, located at 425
 Catawba, Muskegon, MI, 49442, is named as a bid document holder. Bids mailed to the
 Urban League are for viewing purposes only. Anyone interested in bidding on a City of
 Muskegon project must pick up bidding forms from the City Clerk’s office. By naming
 the Urban Leagues as a bid holder, bid documents will be available for view at the City of
 Muskegon in the Clerk’s, Engineer’s, and Affirmative Action offices, as well as the
 Urban League of Greater Muskegon.




_-Adopted by the Equal Opportunity Committee on, June 23, 2003
                                                                       Chairperson




 Approved by the Muskegon City Commission on, August 12, 2003
                                                                       Mayor
                                                       INVITATION FOR BIDS


                                                CITY OF MUSKEGON, MICHIG
                                                                         AN

        Project Title      H-1564 NIMS ST. & IRWIN AVE.
                                                        , WOOD ST. TO GETTY ST,

        The City of Muskegon, Michigan
                                              will receive sealed bids until 2:00
                                                                                  p.m. local time on May 20,
        2003 at the City Clerk's Office,
                                           City Hall 933 Terrace Street, Musk
                                                                               egon, Michigan, at which time
        and place alf bids will be publi
                                         cly opened and read aloud for
                                                                         the following Project:

       “Items of work include:
       Asphalt: 7,495 Sq. Yd. Aggregat
                                       e Base Course 22A @ 8" C.LP
                                                                     .; 1,838 Tons Various Bit
       Mix (3C @ 165#/Sq. Yd. & 4C
                                    Mod. Polymer Asphalt   @ 220#/Sq. Yd.); 4,910 Lin. Ft.
       Concrete Curb & Gutter F-4
                                   Mod.; 1,972 Cu. Yd. Excavati
                                                                on; 7,130 Sq. Yd. Removing
       Pavement; and other related
                                    items (Engineer’s estimate is
                                                                  $324,104.30)
       or:                  a
      Concrete: 270 Tons Various
                                    Bit. Mix (3C @ 165#/Sq. Yd. &
                                                                  4C Mod. Polymer Asphalt @
      220#/Sq. Yd.); 8,555 Sq. Yd. Conc
                                        rete Pavement w/6” Integral Curb
                                                                          Non-Reinforced;
      1,047 Cu. Yd. Excavation; 7,13
                                     0 Sq. Yd. Removing Pavement
                                                                   ; and other related items
      (Engineer's estimate is $426,419
                                       .30)
      Copies of Plans and Specificat
                                     ions may be obtained on or after,
                                                                       May §, 2003 by depositing $25
      with the City     Clerk for each set.        Deposit will be refunded
                                                                if Documents are returned in good
      condition within 10 days after Bid
                                         Opening. An amount equal to
                                                                       five percent (5%) of the Bid
      must be submitted with each
                                     Bid Proposal in one of three
                                                                   forms acceptable to the City
      Muskegon    . Contract documents may be exam                                               of
                                                   ined at the following locations:

               Builders & Traders Exchange, Gran
                                                  d Rapids
               F.W. Dodge Publishers, Grand
                                              Rapids
               City Engineer's Office, Muskegon
                                                City Hall

     Attention is called to the fact that
                                          the City requires: that the Contract
     work force insofar as
                                                                               or consider hiring local
                                   possible; that not less than the
                                                                    salaries and
                                                                           wages set forth in the
     Specifications must be paid; that
                                        14% minority and 6.9% female are
                                                                          the goals established for
     Participation in each trade; that
                                        the Contractor must ensure empl
                                                                         oyees and applicants for
     employment are not discriminate
                                       d against based upon their race,
     national origin, handicapped                                       creed , color, religion, sex,
                                        condition nor veteran backgrou
                                                                       nd; and that all pertinent regulati
     must be complied with.                                                                                ons
                                    No bid may be withdrawn with
                                                                 in sixty (60) days after bid open
                                                                                                   ing.
     The City of Muskegon reserv
                                   es the right to reject any or
     Irregularities                                              all bids or to waive any info
                  in the biddin
                                g.
                                                                                               rmalities or

-. APre-Bid Conference will be held
                                    in the second floor conference room
   at 10: 00 a.m. on May 13,                                            (Rm. 203) at City Hall,
                             2003, at whi             ch time and place any
                                                                 questions regarding this Proj
     Could be Presented. Minutes from said Pre-Bid                                             ect
         ract,
                                                   Conf eren ce will become and Addendum to the
  oo
                                                                      CITY OF MUSKEGON,
                                                                                                     MICHIGAN
 :
     PUBLISH:          may 3 2003                                     By:   Gail
                                                                               A. Kundinger,        City       Clerk
                                                                        ”                     9            ,

      he City witl provide necessary appropriate          ADA POLICY
        I9 tapes for th                           auxiltiary aids services, for                                               {
                        e                                                       example, signers for the heari                i
                                                                                                               ng impaired,
        8 Notice to the Visually impaired, etc., for disabled persons who want ot atten
                         City. Contact:                                                   d the meeting, upon twenty-fou
                                                                                                                          r



                                               Gail A. Kundinger, City City Clerk
                                           933 Terrace Street, Muskegon, Mi 49440
                                            (231) 724-6705 or TDD (231) 724-6773

                                                                Vv
            NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION TO ENSURE EQUAL
                     EMPLOYMENT OPPORTUNITY (Executive Order 11246}

1.       The Bidder's attention is called to the “Equal Opportunity Clause” and the “Standard
         Adopted Equal Employment Specifications” set forth in Part 3, Section Il, of the these
         Documents.


         The goals and the timetables for minority and female participation, expressed in
         percentage terms for the Contractor’s aggregate workforce in each trade
                                                                                 on all
         construction work in the covered area, are as follows:


                   TRADE                       GOALS FOR PARTICIPATION IN EACH TRADE
                                                      MINORITY                    FEMALE

                   ALL                                    14%                         6.9%



         These goals are applicable to all the Contractor’s construction work (whether or not
         itis Federal or Federailly-assisted) performed in the covered area. If the Contractor
         performs construction work in a geographical area located outside of the covered
         area, it shall apply the goals established for such geographical area where the work
         is actually performed. With regard to this second area, the Contractor also is subject
         to the goals for both its Federally involved and nonfederaily involved construction.



     The Contractor's compliance with the Executive Order and regulations in 41 CFR Part
     60-4 shall be based on its implementation of the Equal Opportunity Clause, specific
     affirmative action obligations required by the specifications set forth in 41 CFR 60-
     4.3(a), and its efforts to meet the goals. The hours of minority and female
     employment and training must be substantially uniform throughout the length of the
     Contract, and in each trade, and the Contractor shall make a good faith effort to
     employ minorities and women evenly on each of its projects. The transfer of
                                                                                   minority
     or female employees or trainees from contractor to contractor for from project to
     Project for the sole purpose of meeting the contractor's goals shall be a violation
                                                                                         of
     the Contract, the Executive Order, and the regulations in 41 CFR Part 60-4.
     Compliance with the goals will be measured against the total work hours performed.

     The Contractor shall provide written notification to the Director of the Office of
     Federal Contract Compliance Programs within 10 working days of award
                                                                                 of any
     Construction subcontract in excess of $10,000 at any tier
                                                               for construction work under
     the Contract resulting from this solicitation. The notification shall list the name,
     address and telephone number of the subcontractor; employ
                                                                 er identification number
     of the subcontractor; estimated dollar amount of the subcontract;
                                                                       estimated starting
     and completion dates of the subcontract; and the geograp
                                                              hical area in which the
     Contract is to be per
                           formed.


     As used in this Notice, and in the Contract resulting from this solicitation,
     a                                                                             the
         Covered area” is the City of Muskegon, County
                                                       of Muskegon, State of Michigan.




                                                vi
                          NOTICE OF REQU
                                         IREMENT               FOR AFFIRMATIV
                                                                              E ACTION
                          TO INSURE EQUA
                                         L EMPLOYMENT
                                                      OPPORTUNITY AN
                                                                                               D
                             PROHIBITING DISC
                                              RIMINATION               IN EMPLOYMENT
                                          (Federal Execut
                                                          ive Order 1124
                                                                         6)
                                      Michigan: Elll
                                                     ot-Larson    Civil Rights Ac
                                                                                  t

   The attention
                 of bidders fg Par
                                   ticularly called
   applicants for                                   to the requirem
                  employment
                               are not discri                       ents for ensuri
                                               minated agains                       ng that employ
                                                              t.                                   ees and




           The contractor
                           will not discrimi
           because of religi                  nate against any
                             on, race, color, na                  employee or appl
                                                 tional origin, age,                  icant for employ
          marital status,                                                                                   ment
                          handicapped, or                              sex, helght, weight
                                              status as a Viet                              , famillal status,
          affirmative action                                     nam era veteran.
                              to ensure that ap                                     The contractor
          during employme                        plicants are empl                                      will take
                            nt, without rega                          oyed and that em
                                               rd to  their religion, rac                pl oy ee  s ar e treated
          height, Weight, famili                                          e, color, national
                                 al status, marital sta                                       Ori gin , ag e, Sex,
         background, Su                                 tus, handicapped co
                          ch action shalt inc                                   ndition or veteran
         upgrading, demoti                      lud e, but not be lim
                             on, or transfer; re                       ited to, the follow
                                                  cruitment or recr                        ing: employment
         termination; ra                                              uitment advertisi                         ,
                         tes of Pay or ot                                                ng, layoff or
                                           her forms of co                                                           :
         appr enticeship.                                    mpensa   tion; selection
                                                                                      for training, Incl
                                                                                                         uding            .
                                                                                                                         Cv
                                     LOCAL EMPLOY
                                                  MENT             EFFORT




                        LABOR STANDARD
          EMPLOYMENT AN                  S PROVISIONS
                        D PREVAILING WA
                                        GE AND SALARY
                                                                                REQUIREMEN     TS
  H@ attention of bi
                     dders Is particula
foncerning the paymen                   rly called to the
                                                          requirements Co
                         t of not less than the                            ve
 ; a to conditio                                  Prevailing wage and sa red In these documents
                   ns of amployment                                       la ry rates specifled, an
   Ployees,                              with respect to cer
                                                             tain categories an                     d In
                                                                                 d classifications
                                                                                                   of
a laborers and mechan
than Once each week, anic
                        d
                          s employed by this cont
                          wi th                         ract shall be pald uncond
   ht deductions 28 ar
                                ou t su bs eq ue nt de du ction or rebate on any it ionally and not less
  -~A@gon),
                       e permitted by the ap
                                                  plicable regulatio              ac count (except such
                                                                       ns issued by the Clt
                                                                                            y of




                                                     55
                                     Disadvantaged Contractor Affidavit

Please provide the name(s) of all Disadvantaged subcontractors from whom you solicited bids for this project
and additional information below.

Disadvantaged Contractor:     Contact Person:       Contact Method/Date:          Decision (Yes or No):

1.




~f the Disadvantaged Contractors listed above, please indicate why they will not be used on this project.

Disadvantage Contractor:             Decision/Reason:

1.

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