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.
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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
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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.
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