SR-205-002-01
EPWM: CC: AA: RO F:\DATA\SPFILES\SP-MISC\cc Reports\AdoptDBE.doc
City Council Meeting: January 9, 2001 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Recommendation to Adopt the Attached Resolution Approving the
Disadvantaged Business Enterprise Program for the City of Santa Monica
Engineering Division for Projects that Receive Federal Highway
Administration Funding
Introduction
This report recommends that the City Council adopt a resolution approving the
Disadvantaged Business Enterprise Program for the City of Santa Monica Engineering
Division for certain projects that receive federal funding from the Federal Highway
Administration.
Background
Each year, the City receives federal funds for projects including street repairs and
resurfacing, traffic signals or lighting, bridge replacement, and transportation
enhancements. The Code of Federal Regulations (CFR) No. 49, Part 26, requires that
Disadvantaged Business Enterprises (DBEs) be provided with the opportunity to
participate in federally funded projects. In order to meet this requirement, the Federal
Highway Administration (FHWA) mandates that local agencies receiving these federal
funds develop a program that establishes acceptable goals for DBE participation and helps
remove barriers to the participation of DBEs in FHWA assisted contracts.
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Discussion
The City has developed a DBE program to comply with this Federal regulation. Caltrans,
the agency responsible for administering the Federal Highway Administration funds, has
recently conducted a review of the City of Santa Monica’s DBE program for FHWA-
assisted contracts. They determined that the DBE Program and goal setting methodology
meets the basic requirements of CFR No. 49, Part 26. In accordance with Caltrans
guidelines, the DBE Program will establish annual goals for DBE participation in FHWA
funded projects that have subcontracting possibilities. The annual goal for the City Of
Santa Monica Engineering Division for Federal Fiscal Year 2000-2001 is 10%. In concert
with FHWA requirements, a notice of the goal and goal setting methodology was published
in local papers and minority focus publications on November 17, 2000, advising the public
that they may view the goal and methodology, and submit comments for a period of 45
days following publication.
The Engineering Support Services Supervisor has been designated as the DBE Liaison
Officer. In this capacity, the Support Services Supervisor is responsible for monitoring all
Engineering projects that receive FHWA funds, and implementing all aspects of the DBE
program. In the event that the DBE goals and requirements of a project are not met, the
DBE Liaison Officer, under the direction of the City Engineer, will have the authority to stop
the project and suspend payments until a resolution is secured. Previously, the City’s
Purchasing Division administered compliance with these DBE goals. New program
requirements mandated by Caltrans have facilitated development of a more extensive
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program managed by the Engineering Division, which administers Federal Highway
Administration Funds for engineering projects.
Budget/Financial Impact
There is no budget impact associated with the adoption of this program.
Recommendation
Staff recommends that the City Council adopt the attached resolution authorizing the
adoption of the DBE program for the City Of Santa Monica Engineering Division.
Prepared by: Craig Perkins, Director, Environmental and Public Works Mgmt
Tony Antich, P.E., City Engineer
Ruth Odell, Engineering Support Services Supervisor
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