Cuyahoga County Introduces Legislation To Loosen Performance Bonding Rules
FOR IMMEDIATE RELEASE
Media contact(s):
Jeane’ Holley: (216) 698-2544 or [email protected]
CUYAHOGA COUNTY INTRODUCES PERFORMANCE BOND LEGISLATION
Seeks flexibility to provide fair contracting opportunities for all businesses
CLEVELAND – On Tuesday, July 23, 2013, County Executive Ed FitzGerald and Councilman Pernel Jones, Jr., co-sponsored legislation introduced before the Cuyahoga County Council that will provide the county with flexibility to make performance bond and insurance determinations as appropriate for each individualized contract. The legislation does not remove the performance bond requirements altogether, but rather allows the Director of Law to make determinations on a case-by-case basis without being tied to inflexible state law requirements.
“We have heard the concerns of small, minority, and female business owners in our community. This legislation allows those business owners who do not have the capability or resources to obtain bonds to compete with larger businesses for contracting opportunities,” said Cuyahoga County Executive Ed FitzGerald. “This legislation is another step towards ensuring that all businesses, no matter the size, will have a fair opportunity to contract with the county.”
"The legislation before us builds on Council's momentum of establishing open and fair contracting procedures, enacting a strict code of ethics, and removing bad apples through our debarment policy,” said Pernel Jones, Jr., Cuyahoga County Council Member, District 8. “As the Chair of the Public Works Committee, my focus has always been on removing unnecessary and unreasonable barriers to inclusion for the under-served but deserving businesses in our community,"
The legislation fulfills recommendations made by the Economic Inclusion Task Force who identified performance bonds as a primary barrier to county contracting with small, minority, and female-owned businesses. The Task Force studies issues of economic diversity and inclusion in Cuyahoga County and was created as part of Executive FitzGerald’s Western Reserve Plan. The primary goals of the Task Force are to examine and develop the county’s employment practices, contracting practices, and promote diversity and inclusion in development projects in Cuyahoga County.
Majeed G. Makhlouf, Cuyahoga County Director of Law said, "This legislation enables Cuyahoga County to reap the benefits of its home rule powers. It establishes flexibility to determine performance bond requirements on a contract-by-contract basis within a comprehensive risk management plan that fits the county's specific needs.”
The county is currently conducting a Disparity Study to determine whether its business practices are, in fact, making it possible for all willing and able businesses, especially those designated as Minority Business Enterprises (MBEs) and/or Female Business Enterprises (FBEs), to be eligible to contract with the county and subcontract with county’s prime contractors. The study is expected to be completed in the first quarter of 2014.
The performance bond and insurance legislation was referred to the Cuyahoga County Public Works Committee for discussion and deliberation.
