HomeMy WebLinkAbout01/05/1988, C-6 - CONSIDERATION OF ADOPTING A ""DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM"" TO UTILIZE ON FEDERAL-AID PROJECTS."city of San Luis OBISPO
Sia; COUNCIL�E11
MEETING DATE:
January 5 87
REPORT fTEM NUMBER:
FROM: David F. Romero Z �W Wayne ,_ Prepared by: John Hawley J e'
I Public Works Director City Engineer Supervising Civil Engineer
SUBJECT:
Consideration of Adopting a "Disadvantaged Business Enterprise (DBE)
Program" to Utilize on Federal -Aid Projects.
CAO RECOMMENDATION:
Adopt Resolution Approving a "Disadvantaged Business Enterprise (DBE)
Program" for Federal -Aid Projects
BACKGROUND:
On June 22, 1978 the Council approved a Master Agreement between the City and
State for the expenditure of Federal Funds on approved City projects.
Currently, the City has been allocated Federal Highway Funds, specifically
Bridge Replacement and Rehabilitation Funds, for three bridge replacement
projects on San Luis Creek at Toro Street, Nipomo St., and Elks Lane.
State policy now requires that the City be responsible for administering our
federally financed projects. The administration process involves the
preparation of plans, specifications, cost estimates, advertisement, award,
inspection and contract administration. Plans and specifications must be
approved by the State prior to advertisement. As a condition for the City to
administer these projects, the City must adopt a "Disadvantaged Business
Enterprise (DBE) Program ". This DBE program is a policy statement that the
City will utilize DBE firms, as defined in the Federal Regulation 49CFR23, in
all aspects of the project contract to the maximum extent feasible. The
attached DBE program document submitted for adoption by the Council is a
standard program description utilized by numerous local agencies. The document
establishes the City's DBE program and sets minimum goals for the period
October 1, 1987 to September 30, 1988. The goal is to ensure that a minimum of
10 percent DBE firms will be utilized in all City street improvement projects
financed with Federal Funds.
SIGNIFICANT IMPACT:
Adoption of a DBE program for Federal -Aid projects willresult in slight
increases in administrative and contract costs. The amount is expected to be
minimal relative to the overall cost of the projects.
CONSEQUENCE OF NOT TAKING THE RECOMMENDED ACTION:
Federal -Aid funds allocated for city street improvement projects cannot be
utilized.
ACTION RECOMMENDED:
Adopt resolution approving a "Disadvantaged Business Enterprise (DBE) Program"
for Federal -Aid Projects.
For
r.
RESOLUTION NO. (1988 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING A DISADVANTAGED BUSINESS ENTERPRISE (DBE)
PROGRAM FOR FEDERAL -AID PROJECTS
WHEREAS, the Congress of the United States has in the 1982 U.S.
Surface Transportation Assistance Act declared it to be in the national
interest for federal funds to be expended for highway projects; and
WHEREAS, the City and the State have entered into Master Agreement
No. 05 -5016 for Federal -Aid Projects; and
WHEREAS, as a condition to receiving any Federal -Aid funds the City
agrees to comply with Federal Regulation 49CFR Part 23, "Participation by
Minority Business Enterprises in Department of Transportation Program; and
WHEREAS, the Federal Regulation includes requirements that recipients
of Federal -Aid funds adopt a "Disadvantaged Business Enterprise (DBE)
Program; and
WHEREAS, State policy requires that the City will administer its
Federal -Aid projects;
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of San
Luis Obispo, California, hereby:
1. Approves Exhibit A attached, entitled "Disadvantaged Business
Enterprise (DBE) Program ", and the Mayor is authorized to execute the
same.
2. Directs the City Clerk to transmit a copy of the adopted DBE
Program and this resolution to:
Mr. T. 0. Montague
Asst. Dist. Local Streets & Roads Engr.
California Dept. of Transportation
P. 0. Box 8114
San Luis Obispo, CA 93403 -8114
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Resolution No. (1988 Series)
Page Two
3. Directs the City Clerk upon receiving State approval of this City
DBE Program, to prepare a Public Notice to be published in the
Telegram- Tribune for one day, and transmit a "Declaration or Proof of
Publication" of said Public Notice to:
Mr. T. 0. Montague
Asst. Dist. Local Streets & Roads Engr.
California Dept. of Transportation
P. 0. Box 8114
San Luis Obispo, CA 93403 -8114
On motion of
and on the following roll call vote:
AYES:
NOES:
seconded by
ABSENT:
The foregoing Resolution was passedand adopted this
day of 1987.
MAYOR
ATTEST:
CITY CLERK
M �! • Y i 1! •
APPROVED:
City Administrative Officer
City AY$orney
Public Works Director
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ity E ineer
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EXHIBIT "A"
DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM
CITY OF SAN LUIS OBISPO
I. Policy Statement
It is the policy of the City of San Luis Obispo to utilize
Disadvantaged Business Enterprises (DBE) and firms as defined in 49 CFR
Part 23 in all aspects of contracting for projects funded in whole or in
part by any U.S. Department of Transportation model element to the maximum
extent feasible. This policy which is fully described herein constitutes
policy and commitment to substantially increase DBE Utilization in all
program activities funded wholly or in part by any U.S. Department of
Transportation model element.
This Agency, its contractors and subcontractors, which are the.
recipients of Federal -aid funds, agree to ensure DBE firms have the
maximum opportunity to participate in the performance of contracts and
subcontracts. In this regard, this Agency and all of its contractors and
subcontractors will take all reasonable steps in accordance with 49 CFR
Part 23 to ensure that DBE and firms have the maximum opportunity to
compete for and perform contracts.
II. Disadvantaged Business Enterprise (DBE) Liaison Officer, Director of
Public Works, is the DBE Liaison Officer for this agency and shall report
to the City Administrative Officer. He will be assigned such staff as is
necessary to fully implement the provision of 49 CFR Part 23 and such
other DBE programs as may be required.
III. Duties of the DBE Liaison Officer. The DBE Liaison Officer shall
deveiop, manage and implement the DBE Program on a day -to -day basis. The
Liaison Officer shall:
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• Develop and carry out technical assistance programs for DBE's.
• Arrange solicitations, time for the presentation of bids, quantities,
specifications, and delivery schedules so as to facilitate the
participation of DBE's. Where such changes are found necessary to
increase DBE utilization, they will be made in consultation and
cooperation with the functional unit involved.
• Provide guidance to DBE's in overcoming barriers, such as inability to
obtain bonding or financing.
• Carry out information and communication programs.on contracting
opportunities in a timely manner. Programs shall be bilingual where
appropriate.
• Investigate the services offered by banks owned and controlled by
Disadvantaged Business Enterprises.
" Unless noted elsewhere herein the listing of DBE's certified by
Caltrans will be utilized. Said listing is to be made available to
all project bidders. Such lising will include the following
information: Name, address, telephone number, ethnic and /or sexual
ownership, type of work performed by firm.
• Prior to approval of the substitution of any DBE sub - contractor, the
prime contractors will be required to prove performance of good faith
efforts to replace the DBE with another eligible DBE.
" Establish a DBE overall annual goal. The goal shall be evaluated
annually and adjusted as necessary.
• Establish an appropriate individual project DBE goal for each Federal
Aid Project advertised.
• Perform good faith analysis when the project goal is not achieved.
• Maintain such documentation as is necessary to verify performance of
all activities included in this program.
IV. Public Notification
1. At the time of submittal of this program to the State Department of
Transportation, a notice in both minority and majority local media
will be published. Said publication shall include:
• The annual overall DBE goal.
" Notification that a description of how the goal was set is available
for public inspection for a period of 30 days.
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• Notification that both U.S. DOT and this agency will accept comments
on the goal for 45 days from the date of the notice. The notice shall
advise interested parties that comments are for information purposes
only.
2. This program will be reaffirmed by public notice annually at the time
of publication of overall goal. If substantial changes are made to
this document, the entire document shall be subject to notification
noted in (1) above.
3. In addition to the foregoing, interested disadvantaged and majority
contractor organizations will receive direct mailings of this complete
program.
V. Establishment of Goal
1. The DBE goal will be established both annually (overall) and on a per
contract basis. The overall goal will be based on planned contract
activity for the coming year. The overall goal established will be
subject to methodology and procedures established in 49CFR Part 23,
Subparts (C) and (D) and take effect on October 1st of each year.
2. The overall DBE goal established with this initial program is 10% and
covers the period October.l, 1987 to September 30, 1988.
3. Individual project goals will be established based on the following -
criteria:
" Attainment of established overall goals.
Size of project.
• Opportunities for DBE's as subcontractors, vendors, and suppliers.
* Minority population of geographic area in which work is to be
performed.
DBE goals being utilized in the geographic area by other State,
Federal or local jurisdictions.
Availability of certified DBE's.
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* Past experience on projects similar to the project being evaluated.
" Such other factors as may affect the utilization of DBE's.
Complete evaluation documentation will be retained for each project.
4. Projects which do not contain a specific goal will contain the
following provisions:
A. "Policy. It is the policy of the Department of Transportation
that disadvantaged business enterprises as defined in 49 CFR
Part 23 shall have the maximum opportunity to participate in the
performance of contracts financed in whole or in part with Federal
funds under this agreement. Consequently,, the DBE requirements of
49 CFR Part 23 apply to this agreement."
B. DBE Obligation. (i) The recipient or its contractor agrees to
ensure that disadvantaged business enterprises as defined in
49 CFR Part 23 have the maximum opportunity to participate in the
performance of contracts and subcontracts financed in whole or in
part with Federal funds provided under this agreement. In this
regard, all recipients or contractors shall take all necessary and
reasonable steps in accordance with 49 CFR Part 23 to ensure that
disadvantaged business enterprises have the maximum opportunity to
compete for and perform contracts. Recipients and their
contractors shall not discriminate on the basis of race, color,
national origin, or sex in the award and performance of
DOT- assisted contracts."
VI. Contract Procedure
This program shall be implemented through the utilization of a
contract special provision which will be provided /updated as necessary by
Caltrans' Division of Local Streets and Roads. These procedures require
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bidders to submit the names of DBE subcontractors and suppliers, a
description of the work each is to perform or material to be furnished,
and the dollar value of each DBE subactivity.
VII. DBE Notification
Projects will be advertised in local newspapers and minority focus
newspapers when possible. These ads will include reference to DBE
requirements and will indicate the DBE project goal.
DBE supportive service assistance centers will receive notification of
projects scheduled to be advertised. Such Centers will be afforded the
opportunity to receive complimentary plans and specifications for projects
within their geographical area of responsibility.
VII. Selection Criteria for Projects with DBE Goal
Every project containing a DBE goal shall be evaluated by the DBE
.Liaison Officer or his /her designee to ascertain bidding contractors'
efforts to attain the DBE goal. The award of any project must be
concurred with by the DBE Liaison Officer or his designee before said
contract may be awarded. Should there be disagreement between functional
1. units concerning contractors' efforts to attain contract goals for DBE
participation, the matter shall be referred to John Dunn, City
Administrative Officer or his designee, for final determination.
Competitors that fail to meet the DBE goal and fail to demonstrate
sufficient reasonable good faith efforts shall be declared non - responsive
and ineligible for award of the contract.
All contracts that contain a DBE goal, pursuant to this policy, will
be monitored on an ongoing basis by project personnel during the course of
construction. The DBE Liaison Officer is to be immediately advised of any
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circumstances wherein contractor compliance with the DBE provision is
questionable. The contractor shall submit a final report for each project
which includes total payments to the prime contractor as well as any
payments the prime contractor has made to DBE subcontractors, vendors and
suppliers. If the report indicates the prime contractor has not achieved
the project goal, project personnel shall attach an evaluation, in
narrative form, of the reasons for failure to attain the goal and any
corrective action that was taken.
Prime contractors will be required to notify the Agency of any
situation in which regularly scheduled progress payments are not made to
DBE subcontractors, vendors or suppliers.
IX. Set - Asides
If determined necessary by the DBE Liaison Officer, DBE Set - Asides
.will be considered as a tool to achieve annual overall goals.
X. Counting DBE Participants
This Agency, its contractors, and subcontractors shall count DBE
participation in accordance with the provisions of Section 23.47,
Title 49, of the Code of Federal Regulations.
XI. Records and Reports
1. The DBE Liaison Officer shall maintain such records, and provide
such reports, as are necessary to ensure full compliance with this
policy. Such records and reports shall include, as a minimum, the
following information:
• Awards to DBE's
• Awards to majority contractors.
• Final project reports concerning DBE utilization.
• Such other data as is needed to fully evaluation compliance with this
program
2. The DBE Liaison Officer shall submit reports to Caltrans and /or to
the appropriate U.S. DOT element as required. These reports will
include:
• Number and dollar value of contracts awarded.
• Number and dollar value of contracts and subcontracts awarded to
DBE's.
" Description of general categories of contracts awarded to DBE's.
• The percentage of the dollar value of all contracts awarded during the
year which were awarded to DBE's.
" Indication as to the extent of which the percentage met or exceeded
' the overall goal.
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µ Reports shall be broken down separately by ethnic grouping.
XII. Complaints
Any complaints received by the Agency concerning this program will be
investigated by the DBE Liaison Officer who will endeavor to resolve said
complaints within 90 days of receipt. The appropriate DOT element and
Caltrans will be furnished a copy of the complaint and may be invited to
participate in the investigation /resolution. The DOT element and Caltrans
will receive a complete investigative report on the complaint and may be
requested to concur in the proposed disposition of said complaint.
Contractors will be directed to notify the Agency of any complaints
they may receive concerning this program.
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