§ 324-11. MBE and WBE Certification.

(a)

Requirements. To be eligible for certification as an MBE, each applicant must meet the definition of an MBE in Section 324-1-M. To be eligible for certification as a WBE, each applicant must meet the definition of a WBE in Section 324-1-W1.

(b)

Certification Process.

(1)

A business seeking certification as an MBE or WBE must:

(A)

Submit an application to the department on the prescribed form, affirming under penalty of perjury that the business qualifies as a city of Cincinnati MBE or WBE as those terms are defined in Section 324-1-M or Section 324-1-W1, respectively; and

(B)

If requested by the department, the applicant must provide any and all materials and information necessary to demonstrate active participation in the control, operation, and management of the business.

(2)

The department will review and evaluate applications, and may reject an application based on one or more of the following: the applicant does not meet the requirements of the definition of an MBE or WBE, as applicable; the application is not complete; the application contains false information; or the applicant has not provided materials or information requested by the director.

(3)

The director will make a certification determination within 90 days after the date the city receives a satisfactorily completed application from the applicant. If certification is denied, the director will notify the applicant in writing and specify the reason(s) for the denial.

(4)

Firms certified as an MBE or WBE by other government agencies will be required to be certified under this chapter regardless of other certification. The city manager may provide by rules and regulations for an expedited or summary process for certification by the city if the business has a current MBE or WBE certification from agencies specifically identified in those rules and regulations.

(c)

Period of Certification. The certification is valid for a two-year period beginning on the date the city certifies the applicant as an MBE or WBE.

(d)

Recertification. Upon expiration of the two-year certification period, a business that desires recertification must return a completed recertification form as provided by the city and comply with the requirements of subsections (b)(1)(A) and (b)(1)(B) of this section.

(e)

Revocation of Certification.

(1)

The director shall revoke the certification of a business if it is determined that the business was certified in error; the business no longer meets the definition of an MBE or WBE, as applicable; or the business fails to provide requested information in connection with a certification review conducted by the department.

(2)

The director shall permanently revoke the certification of a business if it is determined that the certification was fraudulently obtained or that the firm allows its certified MBE or WBE status to be fraudulently used to obtain economic benefits for a firm that is not a certified MBE or WBE or for the owners of a firm that is not a certified MBE or WBE. In addition to certification revocation, any participant in the fraudulent use of certified MBE or WBE status for the benefit of another person or entity that is not a certified MBE or WBE shall be guilty of a misdemeanor of the first degree, punishable by imprisonment for up to six months and/or a fine of up to $1,000.00.

(3)

The director shall provide the MBE or WBE with written notice of the revocation of certification, subject to the right to request reconsideration and to request a hearing as provided in Section 324-35 of this chapter.

(f)

Certification Reviews. The department will conduct random certification reviews of certified businesses by auditing them to verify that the information submitted by a business is accurate and that the business remains eligible after certification has been granted. Certification reviews may be conducted for any business for which the city determines a certification review is warranted. Businesses subject to certification reviews must provide the department, within seven days of the request, with any information requested to verify the certification eligibility of the business. Audits may include one or all of the following as reasonably necessary to ensure that all eligibility standards are satisfied:

(1)

Business owner interviews;

(2)

Employee and/or subcontractor interviews;

(3)

Interviews with bidders, contractors, vendors or suppliers involved in a joint venture or contractual relationship with the business enterprise;

(4)

Interviews with any other person who may have knowledge or relevant information relating to a business enterprise's eligibility for certification as an MBE or WBE;

(5)

Record and document review; or

(6)

Job site inspection.

(g)

Joint Ventures.

(1)

On a contract-by-contract basis, an MBE or WBE may apply for certification of a joint venture with another MBE or WBE or with a non-MBE or non-WBE firm.

(2)

The MBE or WBE joint venture participant must be certified in the area of work to be undertaken as a member of the joint venture.

(3)

A holding company cannot be an MBE or WBE participant in a joint venture.

(4)

The MBE or WBE participant in the joint venture must not be an affiliate of the non-MBE or non-WBE firm.

(5)

The joint venture must have a business structure set forth in a signed written agreement that clearly and specifically defines the participation of each party in the contribution of property, capital, efforts, skills and knowledge.

(6)

The MBE or WBE member of the joint venture must have an interest in the control, management, risks and operation of the joint venture commensurate with the member's percentage of participation in the joint venture, and the profit or loss of the joint venture should be distributed between the participants in proportion to the interest in the joint venture.

(7)

The MBE or WBE that is a member of the joint venture must be responsible for a distinct, clearly defined portion of the work to be performed with its own forces, equal to its share in the ownership, control and management of the joint venture.

(8)

The certification of a joint venture will be limited to the duration of the contract for which certification as a joint venture was requested and shall terminate upon completion of the city contract for which the joint venture was formed.

(Ordained by Ord. No. 308-2015, § 1, eff. Jan. 1, 2016)