NOTICE OF CONTINUANCE OF PUBLIC HEARING

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The Public Hearing on the proposed amended Ordinance No. 5-20-03 will be heard by the Finance Committee on Monday, November 9, 2020 at 7 pm via Zoom webinar.

You are invited to a Zoom webinar.
When: Nov 9, 2020 07:00 PM Eastern Time (US and Canada)
Topic: Finance Committee

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A complete copy of the Ordinance is available for public review at the City Clerk’s Office and the Cranston Central Library.

“Individuals requesting interpreter services for the hearing impaired must notify the City Clerk’s Office at 461-1000 ext. 3197 seventy-two (72) hours in advance of the hearing date.”

Michael W. Favicchio, Chair Leanne Zarrella, JD
Finance Committee City Clerk

THE CITY OF CRANSTON
ORDINANCE OF THE
CITY COUNCIL
IN AMENDMENT OF TITLE 3,
OF THE CODE OF THE CITY OF CRANSTON, 2005, ENTITLED
“Revenue & Finance ”
(Bid Discounts for Local
Businesses, Minority Business Enterprises, and Women Business Enterprises)

Section 1. Title 3, Chapter 3.08, is hereby amended by adding the following:

3.08.090 - Bid Discounts for Local Businesses, Minority Business Enterprises, and Women Business Enterprises

Definitions of Terms
As used in this chapter, the following words, phrases, and terms shall be defined as set forth below:

a) “Bidder” means a Person offering or proposing to contract with the City respectively in response to an invitation to bid or to a request for proposals.

b) “Bid Discount” means the application of a percentage discount to the total amount of a bid submitted by a Bidder for a Contract solely for the purpose of bid comparisons when determining the lowest and best bid, or lowest responsible bid. The use of a Bid Discount for Bid Comparison does not alter the total amount of the bid submitted by a Bidder or the Contract executed based on a bid.

c) “Business Enterprise” means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity through which business is conducted.

d) “City” means the City of Cranston, Rhode Island.

e) “Chair” means the Chair of the Board of Contracts and Purchasing.

f) “Contract” means all types of agreements, including grants and orders, for the purchase or disposal of supplies, services, construction, or any other item. It includes awards; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts, purchase orders, and construction management contracts. It also includes supplemental agreements with respect to any of the preceding. “Contract” does not include labor contracts with employees of the municipality.

g) “Contracting Department” includes any administrative department under charge of the Mayor or any office, board, or commission treated or construed as a department of City government for any purpose under the Charter or ordinances of the City for the benefit or program of which the City enters into a particular Contract.

h) “Contractor” means any person having a contract with the City.

i) “Director” means the official authorized to enter into a Contract on behalf of a particular Contracting Department.

j) “Local Business” means a Business Enterprise that is located within the City of Cranston.

k) “Minority” means a person who is a citizen or lawful permanent resident of the United States and who is:
a. Black (a person having origins in any of the black racial groups of Africa);
b. Hispanic (a person of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race);
c. Portuguese (a person of Portuguese, Brazilian, or other Portuguese culture or origin, regardless of race);
d. Asian American (a person having origins in any of the original peoples of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands);
e. American Indian and Alaskan Native (a person having origins in any of the original peoples of North America); or
f. Members of other groups or individuals found to be economically and socially disadvantaged by the Small Business Administration under section 8(a) of the Small Business Act, as amended, 15 U.S.C section 637(a).

l) “Minority Business Enterprise” or “MBE” means a small business concern, as defined pursuant to section 3 of the Federal Small Business ACT (15 USC Section 632) and implementing regulations, which is owned and controlled by one or more minorities.

m) “Owned or Controlled” means a business which:
a. at least fifty-one (51) percent owned by one (1) or more minorities or women in the case of a publicly owned business, at least fifty-one (51) percent of the stock of which is owned by one (1) or more minorities or women, and;
b. Whose management and daily business operations are controlled by one or more minorities or women.

n) “Person” means any business, individual, organization, or group of individuals.

o) “Women Business Enterprise” or “WBE” means a small business concern, as defined pursuant to section 3 of the Federal Small Business ACT (15 USC Section 632) and implementing regulations, which is owned and controlled by one or more *minorities. *women.

*Preference for Local Producers, Local-Food Purchasers, Local Sustainable Businesses, Minority Business Enterprises, and Women Business Enterprises *Preference for Local Businesses, Minority Business Enterprises and Women Business Enterprises.

Application of Bid Discount:
A Contracting Department shall apply a Bid Discount of two percent (2%) to a bid received from a Local Business; two percent (2%) to a bid received from a Minority Business Enterprise; and two percent (2%) to a bid received from a Women Business Enterprise; provided that the maximum total Bid Discount applied under this division (a) shall not exceed six percent (6%). *For consideration as an MBE and/or an WBE, the Business Enterprise must provide documentation from the State of Rhode Island Office of Diversity Equity and Opportunity certifying the Business Enterprise as an MBE and/or an WBE. The maximum amount of any Bid Discounts applied to a bid under this division (a) shall not exceed **ten thousand dollars **fifty thousand dollars **($10,000) **($50,000.00).

Compliance Monitoring

The Finance Director shall implement and enforce the provisions of this Code. The Finance Director’s duties shall include, but not be limited to:
(a) Reviewing all submittals and other information required or necessary under this Code to determine whether a particular Person qualifies for certification or approval as a Local Business, or a Minority Business Enterprise, or a Women Business Enterprise and is in compliance with this Code;
(b) Notifying an affected Contracting Department that the certificate or approval pertaining to a particular person is or is not currently effective with respect to the matters for which the same were issued;
(c) Initiating and receiving complaints of non-compliance with this Code; and
(d) Investigating complaints pertaining to non-compliance with this Code and recommending appropriate sanctions.

The Finance Director shall monitor a Contractor’s compliance with its bid representations of its qualification(s) as a Local Business or a Minority Business Enterprise, or a Women Business Enterprise during the performance of a Contract it was awarded because of applying a Bid Discount or Evaluation Credit. If the Finance Director determines that there is cause to believe that a Contractor failed to qualify as a Local Business or Minority Business Enterprise or Women Business Enterprise as represented in its bid or proposal, the Finance Director shall notify the Contractor of the apparent breach of or default under the contract. The Finance Director may require a Contractor or Bidder to submit such reports, information and documentation as reasonably necessary to determine its status as a Local Business or Minority Business Enterprise or Women Business Enterprise in the performance of its Contract.

The Finance Director shall maintain complete and accurate records of the use of Local Business or Minority Business Enterprises’ or Women Business Enterprises’ goods, materials, supplies, or services in performance of the Contracting Department’s Contracts, including the dollar value of orders supplied by Local Business or Minority Business Enterprise or Women Business Enterprise, the nature of the goods, materials, supplies, or services provided, and the name and address, and the qualifications of each Local Business or Business Minority Business Enterprise or Women Business Enterprise as such.

Sanctions for Noncompliance
If the Finance Director determines that a Contractor is in breach or default with respect to any representation regarding its status as a Local Business or Minority Business Enterprise or Women Business Enterprise when the Contractor would not have been the lowest bidder or recommended proposer for a Contract but for application of any Bid Discount(s) or Evaluation Credit(s) based upon that status, the Finance Director, in addition to other remedies available with respect to the foregoing or other defaults under any Contract in question, may recommend that the Contracting Department Director cancel the contract and declare a forfeiture of any performance bond.

Responsibilities of Chair and Contracting Departments
The Chair and each Contracting Department shall:
(a) Endeavor to maximize the purchase of Local Business, Minority Business Enterprise, and Women Business Enterprise goods, materials, supplies, or services in contracts; and
(b) Develop lists of Local Business, Minority Business Enterprise, and Women Business Enterprise for whose goods, materials, supplies, or services the City typically contracts.

Contracts with Other Governmental Entities as Contractors
Contracts or other agreements between the City and other political subdivisions, governmental, or quasi-governmental agencies, under which those entities receive money from or through the City for the purpose of contracting with Business Enterprises to perform projects in the City, shall encourage Business Enterprises to comply with the provisions of this chapter in awarding, administering, and implementing the contracts.

Reports:
The Finance Director shall submit a report, annually, on by July 1, detailing the utilization of this chapter in the awarding of city contracts and purchasing.

Violations; Penalty
(a) No Person shall willfully falsify, conceal or cover up by a trick, scheme, or device a material fact, or make any false, fictitious, or fraudulent statements or representations or make use of any false writing or document knowing the same to contain any false, fictitious, or fraudulent statement or entry in any matter administered under this chapter.
(b) No Person shall fraudulently obtain, attempt to obtain, or aid another Person fraudulently obtaining or attempting to obtain a Local Business or Minority Business Enterprise or Women Business Enterprise Bid Discount or Evaluation Credit.
(c) In addition to other remedies available with respect to violations of divisions (a) and (b) of this section, the Finance Director may recommend to a Contracting Department Director, and a Contracting Department Director may:
a. to the Director of Law that the City take such legal action, whether civil or criminal, as the Director of Law deems appropriate;
b. a Bidder, Contractor, or other Business Enterprise from eligibility as Contractor, subcontractor, or Local Business or Minority Business Enterprise or Women Business Enterprise for providing goods, materials, supplies, or services to the City for a period not to exceed two (2) years; or
c. Make a claim for payment of damages, including but not limited to any liquidated damages specified in the Contract.

Section 3: This Ordinance shall take effect upon its final adoption.

Sponsored by:
Councilmembers
Donegan and Stycos.

Referred to:
Finance Committee June 1, 2020

11/5/20

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