SR 01-26-1988 6G
. 7-~ :J-~02-0/ 41 ,- G
JAN 2 6 l~B
GS:SES:DA:CP:sm
council Meeting:
1/21/88
January 26, 1988
Santa Monica, California
TO:
Mayor and city council
FROM:
City Staff
SUBJECT:
Recommendation to Adopt a Resolution Approving a
Revised Disadvantaged Business Enterprise (DBE)
Program for the City of Santa Monica for certain
Federally-Funded Street and Road Public Works
Projects.
INTRODUCTION
This report recommends that the city Council adopt a
resolution to approve a revised Disadvantaged Business Enterprise
(DBE) program for the City of Santa Monica for certain
federally-funded street and road public works projects and
designate the city Engineer as the DBE Liaison Officer for the
City.
BACKGROUND
Each year the city receives federal funds for various types
of projects including street repairs, handicapped accessibility
and traffic signal improvement projects. The Code of Federal
Regulations No.49, part 23, requires that Disadvantaged Business
Enterprises (DBE) be provided with the maximum opportunity to
participate in federally funded proj ects.
To meet this
requirement, the federal regulations mandate that agencies
receiving federal aid funds have a program that establishes
acceptable goals for Disadvantaged Business participation in
procure~ent activities and provide guidelines and support
activities to assist the DBE community in achieving those goals.
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JAN 2 6 1988
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Pursuant to these federal regulations, the city Council adopted a
Minority Business Enterprise Program on February 16, 1982 which
applied to the receipt of financial assistance from various
Federal agencies.
DISCUSSION
Caltrans, the agency responsible for administering u.s.
Department of Transportation funded street and road projects, has
conducted a review of the city of Santa Monica's DBE program and
is recommending a few technical and administrative changes. The
DBE program changes which have been proposed by Caltrans
encompass two main elements: 1) the adoption of the standard
Caltrans-approved DBE program format; and 2) the designation of
the City Engineer as the City's liaison officer. It should be
noted that the Caltrans DBE program will continue to be a subset
of the overall City WMBE program and that any federally-required
procedures will be undertaken in coordination with the ongoing
WMBE activities. The specific components of the standard
Caltrans program format do not entail any substantive variation
from the formal DBE program adopted by the City council in 1982.
In accordance with Caltrans guidelines, the DBE program will
establish annual goals for DBE participation in Federal aid
funded projects based on the minority population of the Southern
California area and based on the type of work to be done. The
annual goal for Santa Monica Federally Funded projects for fiscal
year 1987/88 is 13% (see Attachment A) .
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In addition to the annual goals, individual project goals will
be developed based on the size of the project and the
availability of DBE firms with the aim of meeting the annual
goals.
Caltrans publishes its list of acceptable goals for 17
different work categories and project sizes. (See Attachment B.)
Caltrans determines these percentages from data about the number
and size of DBE owned vendors and contractors located in the area
(County) where the project is occurring.
The Liaison Officer shall be responsible for monitoring all
federally-funded public works projects for compliance with the
Caltrans approved DBE goals and requirements. In the event that
the DBE goals and requirements of a project are not being met,
the Liaison Officer shall have the authority to stop the project
and suspend payments until an appropriate resolution is achieved.
(See Attachment c.)
BUDGET/FINANCIAL ANALYSIS
There is no budget impact associated with the adoption of
this program.
RECOMMENDATION
It is recommended that the City Council adopt the attached
resolution containing the revised Disadvantaged Business Business
Enterprise program for federally-funded street and road public
works projects and appoint the city Engineer to be the
Disadvantaged Business Enterprise Liaison Officer.
Prepared by: stan Scholl, Director of General Services
Desi Alvarez, P.E., city Engineer
Craig Perkins, Sr. Management Analyst
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Attachment: Resolution for Adoption
DBE Program Description
Attachment A, List of acceptable Project Goals
Attachment B, Santa Monica 1987/88 DBE Goals
Worksheet
Attachment C, The Reporting structure
ccdbe
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RESOLUTION NO. 7547{CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA MONICA ADOPTING THE
SANTA MONICA DISADVANTAGED BUSINESS
ENTERPRISE (DBE) PROGRAM
WHEREAS, federal rules and regulations require the City of
Santa Monica to adopt a Disadvantaged Business Enterprise Program
in order to be eligible to receive federal final~ial assistancer
and
WHEREAS, the participation in federally assisted projects by
disadvantaged businesses is encouraged by policies incorporated
in the Santa Monica Disadvantaged Business Enterprise Program,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The Santa Monica Disadvantaged Business
Enterprise program, attached hereto and incorporated by
reference, is adopted.
SECTION 2. The City Manager shall submit the Santa Monica
Disadvantaged Business Enterprise Program to appropriate federal
agencies for their approval.
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SECTION 3. The city Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in force and effect.
APPROVED AS TO FORM:
~M.
ROBERT M. MYERS
CITY ATTORNEY
~
ccdber
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Adopted and approv
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I hereby certify that
was duly adopted by the C
Resolution No. 7547(CCS)
the city of Santa Monica
at a meeting thereof held on January 26, 1988 by the following
council vote:
Ayes: Councilmembers: Finkel, Jennings, A. Katz, H.
Katz, Reed, zane, Mayor Conn
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: None
ATTEST:
~h-U~
~lerk
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Program Description
for
Local Agencies
DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM
(FHWA encourages the use of this standard
program description in accordance with Code
of Federal Regulations 49, Part 23,
Section 23.45 and other related sections>
Caltrans, Division of Local Streets and Roads, Rev. 9-17-87
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DISADVANTAGED BUSINESS ENTERPRISE (DBE)
PROGRAM
CITY/COUNTY OF: Santa H::mJ.-ca
I. Poli~y Statement
It is the policy of the
C~ty of Santa Z,bmca
to utili~e Disadvantaged Business Enterprises (DBE) and
firms as defined in 49CFR Part 23 in all aspects of
contracting 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 CPR 23 to ensure that DBE and firms
have the maximum opportunity to compete for and perform
contracts.
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II.
III.
Disadvantaq~BU5iness Enterprise (DBE~iaison Officer
Desi A1 varez , City EnqJneer
is the DBE Liaison Officer for this agency and shall
report to the C1.ty Iv'ill1ager . HelShe will be
assigned such staff as is necessary to fully implement the
provision of 49CFR Part 23 and such other DBE programs as
may be required. The reporting structure and duties of
support staff are shown on ~ttachment A
Duties of the DBE Liaison Officer
The DBE Liaison Officer shall develop, manage and
implement the DBE Program on a day-to-day basis. The
Liaison Officer shall:
o Develop and carry out technical assistance programs
for DBE's.
o Arrange solicitations, time for the presentation of
bids, quantities, specifications, and delivery
schedules so as, to facilitate the participation of
DBE's9 Where such changes are found necessary to
increase DBE utilization, they will be made in
consultation and cooperation with the functional
unit involved~
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o Provide guidance to DBE's in overcoming barriers,
such as inability to obtain bonding or financing.
o Carry out information and communication programs on
contracting opportunities in a timely manner.
Programs shall be bilingual where appropriate.
o Investigate the services offered by banks awned and
controlled by Disadvantaged Business Enterprises.
o 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 listing will include the following
information: Name, address, telephone number,
ethnic and/or sexual ownership, type of work
performed by firm.
o prior to approval of the substitution of any OBE
sub-contractor, the prime contractors will be
required to prove performance of good faith efforts
to replace the DBE with another eligible DEE.
o Establish a DEE overall annual goal. The goal shall be
evaluated annually and adjusted as necessary.
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o Establish an appropriate individual project DBB goal
for each Federal Aid Project advertised.
o Perform good faith analysis when the project goal is
not achieved.
o 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
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minority and majority local media will be published.
Said publication shall include:
o The annual overall DBE goal.
o 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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Notiljjation that both u.s. DOT4Ifd 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 OBE 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 23,
Subparts (e) and tD) and take effect on October 1st
of each year.
2. The overall DBE goal established with this initial program
is 13% and covers the period October 1, 19]2 to September
30,1988.
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3. Individual project goals will be established based on
the fallowing criteria:
o Attainment of established overall goals.
o Size of oroject.
o Opportunities for DSE's as subcontractors, vendors,
and suppliers.
o Minority population of geographic area in which
work is to be performed.
o DBE goals being utilized in the geographic area by
other State, Federal or local jurisdictions.
o Availability of certified DBE's,
o Past experience on projects similar to the project
being evaluated.
o Such other factors as may effect the utilization of
OBE's
Complete evaluation documentation will be retained for each
project.
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4. Projects which do not contain a soecific 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 DEE
requirements of 49 CFR Part 23 apply to this
agreement.-
B. ~BE Obliga~ion. (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 contacts 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."
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VI. Contract Procedure
This program shall be imolemented through the utilization
of a contract special provision w~ich will be
provided/updated as necessary by Caltrans' Division of
Local Streets and Roads. These procedures require bidders
to submit the names of DEE 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 newspagers and minority
focus newspapers when possible. These ads will include
reference to OBE 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 respopsibility.
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VIII. Selection Criteria for Projects with DBE Goal
Every project containing a DBE goal shall be evaluated by
the DaE Liaison Officer or his/her designee to ascertain
bidding contractors' efforts to attain the DBB goal. The
award of any project must be concurred with by the OBE
Liaison Officer or his/her designee before said contract
may be awarded. Should there be disagreement between
functional units concerning contractors' efforts to attain
contract goals for DBE partici9ation, the matter shall be
referred to the
Cl.ty Manager
or his/her designee, for final determination.
Comgetitors 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
?ersonnel during the course of construction. The DBE
Liaison Officer is to be immediately advised of any
ci~cumstances 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
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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,
DEE Set-Asides will be consider as a tool to achieve annual
overall goals.
x. Countinq DBE P~rticipants
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.
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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:
o Awards to OBE's.
o Awards to majority contractors.
o Final project reports concerning DBE utilization.
o Such other data as is needed to fully evaluate
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:
o Number and dollar value of contracts awarded.
o Number and dollar value of concracts and subcontracts
awarded to DBE's.
o Description of general categories of contracts awarded
to DBE's.
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o The percentage of the dollar value of all contracts
awarded during the year which were awarded to DEE's.
o Indication as to the extent of which the percentage m~t
or exceeded the overall goal.
o Reports shall be broken down separately by ethnic
grouping.
XII. Comolaints
.
Any complaints received by the Agency concerning this
program
will be investigated by Desi Alvarez
.
He/She will endeavor to resolve said complaints within 90
days of receipt by the DBE Liaison Officer. 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
pro~osed 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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ATTACHMENT "A"
CITY OF SANTA MONICA
DEE WORKSHEET FOR PROJECTS TO BE CONSTRUCTED IN 1987-88
WITH FAD FUNDS
Descriptiop
Est. Project
Cost
% DBE
r_eq' d*
$ DBE
regld
Traffic Signal Upgrade S
Traffic Cont=ollers
Pico Boulevard re~urfacing
Colorado Avenue reconstruc-
tion
wilshire Boulevard land-
scaping
650,000
108,000
230,000
12%
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16%
18%
8%
78,000
-0-
36,800
730,000
131,400
450,000
36,000
$2,168,000 $282,200
$282,200/$2,168,000 = 13%
* Based on Caltrans range of acceptable project goals
12-11-87
(dbeproj)
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ATTACHMENT &~C"
THE REPORTING STRUCTURE
CITY MANAGER
. RESO~VES INTtFt- OEPARiM~AL OlSPUT'tS
RE:GAFl:JING (OSE) M~7TEFl~
LiAISON OFFICER-CITY ENGINEE:R
. OV:-i's=:~ Tl'iE ~EVE_OF"MEt-,-, MANAGEME/I,'7
ANC IMPl...E MENT.c..TION o~ T... E: Cl7Y (0 BE)
PROGRA ,.,.,
. Recommends FINAi..(O e E} PO~C'Y.ANO
reques ts ADJUSTM::NTS IF NE~ESSARY
LIAISON OFFICER DESIGNEE
,
. RESF'ONSIS~:: FOR OAJ~v AOMINIST;te.710N
o=- PROGRAM
. PEFlFORMS GOOD FAlTH APiA~..:':'SlS WHEN
DR:iJ:::- GOll.;..s AR~ N~ ACHltvE::
. MON'TORS OMPL1ANCE 'It'l'-!; COBE)DROGRAh'
~ONTRACTORS~SU8CO~TRACTOR~
,vENDORS, AND SUPPLIERS