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HomeMy WebLinkAbout1996-06-10 City Council (27)City of PMo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES AGENDA DATE: JUNE 10, 1996 CMR:282:96 SUBJECT:APPROVAL OF THE CITY OF DISADVANTAGED BUSINESS PROGRAM AND ADOPTION IMPLEMENTING THE PROGRAM PALO ALTO’S 1996-97 ENTERPRISE (DBE) OF A RESOLUTION REQUEST The purpose of this report is to request Council to reaffirm the City of Palo Alto’s Disadvantaged Business Enterprise (DBE) program and adopt the attached resolution (Attachment 1) implementing a DBE goal of 25 percent for fiscal year (FY) 1996-97 (page 4 of Attachment 2), for work performed on federally-funded projects. RECOMMENDATIONS Staff recommends that Council approve the continuation of the current DBE Program and adopt the resolution calling for implementation of the FY 1996-97 DBE goal of 25 percent for the City of Palo Alto, for work performed on federally-funded transportation projects. POLICY IMPLICATIONS The renewal of the resolution is consistent with City policy regarding the seeking of federal and state funds for roadway improvement and other projects. EXECUTIVE SUMMARY Federal regulations require recipients of federal funds to establish a DBE program and a DBE goal. The purpose of a DBE program is to implement a federal policy supporting, to the fullest extent possible, participation of firms owned and controlled by minorities and women CMR:282:96 Page 1 of 4 in federally-funded programs. The Califomia Department of Transportation (CalTrans) is responsible for ensuring compliance with requirements for DBE participation on projects using federal funds. The City must annually reaffirm its DBE program and establish a DBE participation goal in order for CalTrans and the Federal Highway Administration (FHWA) to continue tO release the funds for the federally-funded Intermodal Surface Transportation and Efficiency Act (ISTEA) projects. DBE Program The City ofPalo’s DBE program will continue to apply only to projects using federal funds, and includes the following: A policy statement signed by the Mayor; Ten elements that outline the requirements for designating a DBE liaison officer, and the duties of the officer; DBE contract procedures, DBE notifications, counting DBE participation toward meeting DBE goals, reports and records, and handling complaints; and 4. Methodology for establishing the DBE goals for the City. The recommended DBE program for FY 1996-97, if approved by the City Council, will again be published in a local newspaper and in various minority trade publications. Publication is intended to give notice to potential DBE bidders that the City has adopted a DBE program, and that the goals will be available for inspection for 30 days following the notice. CalTrans is also notified that the program has been adopted, and it will receive comments on the program for 45 days following the published notice. Comments are received for informational purposes only. There have been no comments on the program for the past two years. Fiscal Year 1996-97 DBE Goal Federal regulations require establishment of two types of DBE goals: 1) an overall goal for the entire program (for a one year period) and 2) contract goals for each specific prime contract. The goal is not a quota. It is, rather, a numeric objective based on the number and types of contracts to be awarded, availability of DBEs in the area, and past results of DBE utilization. The minimum required overall DBE goal is~ 10 percent. CMR:282:96 Page 2 of 4 In FY 1995-96, Council approved the establishment of an overall DBE goal of 18 percent. That goal was chosen based on prior experience. The Santa Clara County Transportation Agency has established a goal for 1996-97 of 22 percent. Since the City is in the same geographic area and is served generally by the same DBE firms available to Santa Clara County, and the City ofPalo Alto’s contract value is much smaller, a slightly higher goal of 25 percent does not appear unrealistic. Since DBE goals are reviewed annually, this figure may be adjusted based on the City’s experience. Staff recommends an overall DBE goal of 25 percent for FY 1996-97. Currently, staff is working on two federally and state-funded projects. The Embarcadero Road Pedestrian/Bike Bridge and Bike Path Extension project was funded during FY 1994- 95 at $1.35 million. The Regional Traffic Signal Operating Program was funded at $.5 million during FY 1995-96. Fiscal Year 1994-95 1995-96 1996-97 Project Embarcadero Road Pedestrian/Bike Bridge & Bike Path Extension (Design) (Page Mill/Foothill Intersection Improvement portion) Regional Traffic Signal Operating Program and Supplemental Agreement with CalTrans (in November 1995) Embarcadero RoadPedestrian/Bike Bridge and Bike Path Extension (Construction) Funding DBE Source Goal ISTEA*18% RSTOP** 25% ISTEA*18% DBE Attained 27% 15.5% In progress In progress *Intermodal Surface Transportation andEfficiency Act Regional Traffic Signal Operations Program **Regional Traffic Signal Operating Program (not out to bid yet) CMR:282:96 Page 3 of 4 In 1996-97, the Council will be asked to award a construction contract for the Embarcadero Road Pedestrian/Bike Bridge and Path Extension project, and a design contract for updating traffic signal timing. ENVIRONMENTAL ASSESSMENT Adoption of a resolution to implement a DBE program and establish goals is not considered a project under CEQA. No environmental assessment is required. ATTACHMENTS Attachment 1: Attachment 2: DBE Program Resolution PREPARED BY: M. Howard Edwards, Contract Administration Manager DEPARTMENT HEAD APPROVAL: "~. ~ Emily Harrison Deputy City Manager, Administrative Services CITY MANAGER APPROVAL: Fleming Manager CC: Bob Wu, CalTrans CMR:282:96 Page 4 of 4 ATTACHMENT 1 "i DISADVANTAGED’ BUSrNESS ENTERPRISE (DBE) PROGRAIVI CITY OF PALO ALTO DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto I.Policy Statement It is the policy of the City or Palo Alto to provide to Disadvantaged Business Enterprises (DBE), as defined in Title 49 Transportation, Code of Federal Regulations (CFR) Part 23, a maximum practicable opportunity to compete for the award of contracts which receive financial assistance from the U.S. Department of Transportation. This policy, which is fully described herein, constitutes policy and commitment to substantially increase DBE utilization in all program activities funded in whole or in part by any U.S. Department of Transportation (DOT) model element. The City of Palo Alto, its contractors and subcontractors, which are the recipients of Federal-aid funds, agree to ensure that DBE firms have the maximum opportunity to participate in the performance of Federally funded 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 the DBE firms have the maximum opportunity to compete for and perform contracts. Mayor, City of Palo Alto DBE Program, City of Palo Alto Page 6 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto July 1996 II.Definitions Below are given the definitions, as they apply to the City ofPalo Alto’s DBE Program, and as defined in 49 CFR Part 23, of (a) Disadvantaged Business Enterprise and (b) socially and economically disadvantaged individuals: A Disadvantaged Business Enterprise is a small business concern, as defined by Section 3 of Small Business Act (13 CFR Part 121): 1o Which is at least 51 percent owned by one or more socially and economically disadvantaged individuals, or, in the case of publicly owned business at least 51 percent of the stock of which is owned by one or more socially and economically disadvantaged individuals; and Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it and who take an active role in controlling the business. b)Socially and economically disadvantaged individuals are those individuals who are citizens of the United States (or lawfully admitted permanent residents) who are: 1. Women 2.African Americans; Hispanic Americans--which includes persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race; Native Americans--which includes persons who are American Indians Eskimos, Aleuts, or Native Hawaiians; Asian-Pacific Americansmwhich includes persons whose family origins are in Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust Territory of the Pacific Islands, and the commonwealth of the Northern Marinas; o Asian-Indian Americans--which includes persons whose family origins are in India, Pakistan, and Bangladesh; and Any other minority or individual found to be disadvantaged as defined by the Small Business Administration. III.Disadvantaged Business Enterprise (DBE) Liaison Officer The Manager of Purchasing and Contract Administration, (415) 329-2300, is the DBE Liaison Officer for the City of Palo Alto and shall report to the Administrative Services Department. DBE Program, City of Palo Alto Page 7 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto July 1996 IV.Duties of the DBE Liaison Officer The DBE Liaison Officer shall manage the DBE Program on a day-to-day basis. Typical duties shall include, but are not limited to, the following activities: Provide technical assistance to DBE’s when requested; 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 City departments involved; Carryout information and communication programs on contracting opportunities in a timely manner; 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 and type of work performed by firm; Prior to approval of the substitution of any DBE subcontractor, 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 for projects funded in whole or in part by U.S. Department of Transportation funds. The goal shall be evaluated annually and adjusted as necessary; Establish an appropriate individual project DBE goal for each Federal Aid Project advertised; Perform go0d-faith analysis when the project goal is not achieved; and Maintain such documentation as is necessary to verify performance of all activities included in this program. Public Notification 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: Notification that a description of how the goal was set is available for public inspection for a period of 30 days; DBE Program, City of Palo Alto Page 8 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto July 1996 Notification that the U.S. Department of Transportation (U.S. DOT), in care of the City of Palo Alto, will accept comments of the goal for 45 days from the date of notice. The notice shall advise interested parties that comments are for information purposes only. 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. In addition to the foregoing, copies of this complete program will be mailed to interested CalTrans certified firms in the local area. IV. Establishment of Goal 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 49 CFR Part 23, Subparts (C) and (D) and take effect on July 1 of each year, herein after. The overall DBE goal was established with an initial 18 percent and followed the schedule below: 1993-94 18 percent 1994-95 18 percent 1995-96 18 percent Proposed 1996-97 25 percent 3.Individual project goals will be established based on the following criteria: Attainment of established overall goals; Size of Project; Opportunities for DBE 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; Past experience on projects similar to the project being evaluated; and Such other factors as may affect the utilization of DBE’s. Complete evaluation documentation will be retained for each project. DBE Program, City of Palo Alto Page 9 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto July 1996 Projects that are funded in whole or in part by U.S. Department of Transportation funds, and which do not contain a specific goal, will contain the following provisions: "Pol__qlj~. 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." "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." VII.Contract Procedure This program shall be implemented through the utilization of a contract special provision, which will be provided/updated as necessary by the City. These procedures require 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. VIII.DBE Notification In addition to the City of Palo Alto’s current established bid process, interested CalTrans certified DBE firms within the local area will also receive notification of projects schedules. IX.Selection Criteria for Projects with DBE Goal Projects funded in whole or in part with U.S. Department of Transportation funds 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/her designee before said contract may be awarded. Should there be disagreement by the contracting department concerning the contractors’ efforts to attain contract goals for DBE participation, the matter shall be referred to the DBE Liaison Officer or his/her designee, for final determination. DBE Program, City of Palo Alto Page 10 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto July 1996 Competitors who fail to meet the DBE ggal and fail to demonstrate sufficient reasonable good- faith efforts shall be declared nonresponsive 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 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 City of Palo Alto DBE Liaison Officer via the project manager of any situation in which regularly scheduled progress payments are not made to DBE subcontractors, vendors, or suppliers. Counting the DBE Participants The City of Palo Alto, 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. XIo 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. Records will be provided by the project managers. Such records and reports shall include, as a minimum, the following information: o Awards to DBE’s; ¯’Awards to majority contractors; ¯Final overall project reports will include DBE utilization status; and ¯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. Department of Transportation 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; DBE Program, City of Palo Alto Page 11 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto July 1996 Description of general category of contracts awarded to DBE’s; The percentage of the dollar value of all contracts awarded during the year which was awarded to DBE’s; Indication as to the extent of which the percentage met or exceeded the overall goal. Reports shall be broken down separately by ethnic grouping and sex. XII. Complaints Any complaints received by the City concerning this program will be investigated by the City of Palo Alto. The City of Palo Alto 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 proposed disposition of said complaint. Contractors will be directed to notify the agency of any complaints they may receive concerning this program. End of Document DBE Program, City of Palo Alto Page 12 ATTACHMENT 2 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALOALTO ADOPTING A DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM FOR FEDERALLY FUNDED CITY TRANSPORTATION PROJECTS WHEREAS, in order to comply with federal requirements to obtain federal funds for City transportation projects, the City of Palo Alto must approve and implement a Disadvantaged Business Enterprise ("DBE") program prior to approval by Caltrans and the United States Department of Transportation ("DOT") of any request for federal funds; WHEREAS, the overall goal established by the DBE program for DBE participation in the performance of contracts financed in whole or in part with DOT funds shall be 25 percent and shall cover the period from July i, 1996 to June 30, 1997; NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION i. The Council hereby adopts the "Disadvantaged Business Enterprise Program City of Palo Alto", a copy of which is attached hereto and incorporated herein by reference. SECTION 2.’ The Council hereby establishes the overall goal of 25 percent for DBE participation in the performance of contracts financed in whole or in part with DOT funds during the period of July i, 1996 to June 30, 1997. SECTION 3. The Council hereby directs the City Manager or such person as the City Manager may designate to publish newspaper notice this year and every following year (or fiscal year, as the case may be) during the existence of this DBE Program, setting forth the goal established by the City for that year for the participation of DBE participation in the performance of 1 960603 lac 0031335 contracts financed in whole or in part with DOT funds, and stating the time period for which the goal is effective. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: Senior Asst. City Attorney City Manager Deputy City Manager Administrative Services Director of Planning and Community Environment Chief Transportation Official 2 960603 lae 0031335