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HomeMy WebLinkAbout12/12/2000, C2 - DISADVANTAGED BUSINESS ENTERPRISE PROGRAM 2001 council j acenda RepoRt °.mUT C IT Y OF SAN L U IS O B I S P O FROM: Mike McCluskey,Director of Public Work Prepared By: Wayne Peterson, City Engine SUBJECT: Disadvantaged Business Enterprise Program 2001 CAO RECOMMENDATION Approve Disadvantage Business Enterprise Program for Federal Fiscal Year 2001 and authorize City Administrative Officer to sign program. DISCUSSION Each year the City must adopt a Disadvantaged Business Enterprise (DBE) program. The program is required by the Federal Government for expenditure of Federal grant funds only. It requires that a percentage of each Federal dollar spent on our projects be paid to DBE businesses. This program is not used to guide expenditure of state or local funds. State law does not allow the City to require participation of DBE businesses. Federal law does. Last year new Federal DBE regulations were adopted that affect all recipients of Department of Transportation (DOT)-assisted contracts. The Department of Transportation required recipients to prepare a new DBE program. The new program requires local agencies to prepare and adopt either the Model Program or their own DBE program including goals consistent with the State program and with Federal regulations. The CalTrans Local Assistant and City staff recommend the Council adopt a program based on the "Model Program"provided by CalTrans and adopt the goals developed by the City based on a State approved methodology. The amount of DBE participation in City projects has been established at 8%. The basis for this number is explained in the program and on the attached document titled "Disadvantaged Business Enterprise Program&Methodology". The City has advertised the program for 30 days and made it available for review and input from the public for a total of 45 days. This is as required in the Federal Regulation. No comments have been received as of the date this staff report was prepared. If comments are received between now and the Council meeting they will be forwarded. CONCURRENCES The proposed DBE Program has been reviewed by CalTrans and we have been authorized by them to proceed. C2-1 Council Agenda Report-Disadvantaged Business Enterprise Program 2001 Page 2 FISCAL IMPACT The adoption and use of a DBE program is required to expend Federal money. The program requires that a percentage of each Federal dollar spent on our projects be paid to DBE businesses. It does not apply to any local money we expended on a project. Currently the City receives Federal money to support our transit system and improve and maintain our bridges and highways. Community Development Block Grants (CDBG) also require conformance with these regulations. This program only addresses Department of Transportation issues. When the City expends CDBG funds it will have to go through a similar process. ALTERNATIVES This program is only required if we are to expend Federal money provided by the DOT. If the City does not use this money we do not need to adopt or implement this program. Attachments Selected Sections from-DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM In Council Reading File Disadvantaged Business Enterprise Program Disadvantaged Business Enterprise Program &Methodology gAsmte&federal pmgrams\dbe datakity dbe progtam\2000 progmmkar.doc C2-2 Attachment Selected Sections from- DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of San Luis Obispo, California I Definitions of Terms The terms used in this program have the meanings defined in 49 CFR §26.5. II Objectives/Policy Statement (§§26.1, 26.23) The City of San Luis Obispo has established a Disadvantaged Business Enterprise(DBE) program in accordance with regulations of the U.S. Department of Transportation (DOT), 49 CFR Part 26. The City of San Luis Obispo has received Federal financial assistance from the DOT, and as a condition of receiving this assistance, the City of San Luis Obispo will sign an assurance that it will comply with 49 CFR Part 26. It is the policy of the City of San Luis Obispo to ensure that DBEs, as defined in part 26,have an equal opportunity to receive and participate in DOT-assisted contracts. It is also our policy: To ensure nondiscrimination in the award and administration of DOT-assisted contracts; To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts; To ensure that the DBE Program is narrowly tailored in accordance with applicable law; To ensure that only firms that fully meet 49 CFR Part 26 eligibility standards are permitted to participate as DBEs; To help remove barriers to the participation of DBEs in DOT-assisted contracts; and To assist the development of firms that can compete successfully in the market place outside the DBE Program. The Director of Public Works has been delegated as the DBE Liaison Officer. In that capacity, The Director of Public Works is responsible for implementing all aspects of the DBE program. Implementation of the DBE program is accorded the same priority as compliance with all other legal obligations incurred by the City of San Luis Obispo in its financial assistance agreements with the California Department of Transportation (Caltrans). City of San Luis Obispo has disseminated this policy statement to the City Council and all the components of our organization. We have distributed this statement to DBE and non-DBE business communities that perform work for us on DOT-assisted contracts by publishing this statement in general circulation,minority-focused and trade association publications. C2-3