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HomeMy WebLinkAbout1999-06-21 City Council (9)TO: FROM: City HONORABLE CITY COUNCIL City of Palo Alto Manager’s Report 8 CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES AGENDA DATE: JUNE 21, 1999 SUBJECT:APPROVAL OF THE CITY OF PALO ALTO’S 1999-2000 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM AND ADOPTION OF A RESOLUTION IMPLEMENTING THE PROGRAM RECOMMENDATION Staff recommends that Council approve the continuation of the current Disadvantaged Business Enterprise (DBE) program and adopt the resolution calling for the continuation of the FY 1999-2000 DBE goal of 25 percent for the City of Palo Alto, for work performed on Federally funded transportation projects. BACKGROUND 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 in Federally funded programs. The California 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 funds for the City’s Federally funded projects. The City of Palo Alto’s DBE program includes the following: 1.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; CMR: 281:99 Page 1 of 4 DBE contract procedures, DBE notifications, counting DBE participation, reports and records, and handling complaints; and 4. Methodology for establishing the DBE goals for the City. The recommended DBE program for FY 1999-00, 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, which is also notified that the program has been adopted, 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 three years. DISCUSSION 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 overall DBE goal required by Federal regulations is 10 percent. In FY 1994-95, Council approved the establishment of an overall DBE goal of 18 percent. That goal was chosen based on prior experience. Council increased the goal to 25 percent in FY 1996-97. The Santa Clara County Transportation Agency established a goal of 22 percent for 1996-97. Its current goal is 24 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 of Palo Alto’s contract value is much smaller, continuing a slightly higher goal of 25 percent appears to be real.istic. Since DBE goals are reviewed annually, this figure may be adjusted based on the City’s experience. Staff recommends that the City retain an overall DBE goal of 25 percent for FY 1999-2000. Two projects have been completed that have produced complete data on DBE participation attainment. They were the design phases of the Embarcadero Road Pedestrian/Bike Bridge and Path Project which achieved a 27% DBE participation and the Page Mill/Foothill Intersection Improvement Project which achieved a 15.5% DBE participation rate. The projects below are underway or planned so no achievement data is yet available: CMR: 281:99 Page 2 of 4 CURRENT PROJECTS: Traffic Signal Timing and Equipment Replacement Project budgeted at $.5 million with an 18 percent DBE goal. Page Mill/Foothill Operational Improvement Project budgeted at $1.44 million with a 10 percent DBE goal. PROJECTS PROPOSED FOR FY 1999-2000: Sand Hill Road Bridge Seismic Upgrade Project budgeted at $60,000 with a 25percent DBE goal. The Embarcadero Road Pedestrian/Bike Bridge and Path Construction Project, budgeted at $1.35 million with an 18 percent DBE goal, was approved by Council, but is on hold awaiting resolution of the railroad right-of-way dispute with the Public Utilities Commission and additional funding fi’om the Metropolitan Transportation Commission. RESOURCE IMPACT Approval of the program will have no impact on City resources. 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. ENVIRONMENTAL REVIEW Adoption of a resolution to implement a DBE program and establish goals is not considered a project under California Environmental Quality Act. No environmental assessment is required. ATTACHMENTS Attachment 1: Attachment 2: Resolution DBE Program PREPARED BY:M. Howard Edwards, Manager, Purchasing and Contract Administration CMR: 281:99 Page 3 of 4 DEPARTMENT HEAD APPROVAL: CARL YEATS,)~irector Administrative 2iervices CITY MANAGER APPROVAL: EMI~LY HARRISON Assistam City Manager CC: Bob Wu, CalTrans CMR:281:99 Page 4 or 4 ATTACHMENT 1 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM FOR FEDERALLY FUNDED CITY TP~ANSPORTATION 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, 1999 to June 30, 2000; 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, 1999 to June 30, 2000. 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 // // // // 990608 sdl 0032164 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 APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Administrative Services Director of Planning and Community Environment Chief Transportation Official 990608 sdl 0032164 2 ATTACHMENT 2 DISADVANTAGED ENTERPRISE (DBE) BUSINESS PROGRAM CITY OF PALO ALTO MAY28, 1999 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto May 1999 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto I.Policy Statement It is the policy of the City of 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 ofPalo 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 opporttmity to compete for and perform contracts. Mayor, City of Palo Alto II.Definitions Below are given the definitions, as they apply to the City of Palo 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)A Disadvantaged Business Enterprise is a small business concern, as defined by Section 3 of Small Business Act (13 CFR Part 121): 1. 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 byone or more of the socially and economically disadvantaged individuals who own it and who take an active role in controlling the business. DBE Program, City of Palo Alto Page 1 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto May 1999 b)Socially and economically disadvantaged individuals arethose individuals who are citizens of the United States (or lawfully admitted permanent residents) who are: 1. Women o 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 Americans--which 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 commonwealh of the Northern Marinas; Asian-Indian Americans--which includes persons whose family origins arein India, Pakistan, and Bangladesh; and Any other minority or individual found to be disadvantaged as defined by the Rnall Business Administration. III.Disadvantaged Business Enterprise (DBE) Liaison Officer The Manager of Purchasing and Contract Administration, (650) 329-2319, is the DBE Liaison Officer for the City of Palo Alto and shall report to the Administrative Services Department. 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 forthe presentation of bids, quantities, specifications and deliveb, 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; Carry out information and communication programs on contractingopportunities in a timely manner; DBE Program, City of Palo Alto Page 2 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto May 1999 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, ethnicity and/or gender of the 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 good-faith analysis when the project goal is not achieved; and Maintain such documentation as is necessary to verify performance of all activities incltded in this program. Public Notification At the time of submittal of this program to the StateDepartment of Transportation, a notice in both minority and majority local media will be published. Said publication shall inchde: ¯ Notification that a description of how the goal was set is available for public inspection for a period of 30 days; Notification that the City of Palo Alto (on behalf of the Department of Transportation (U.S. DOT)), 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. DBE Program, City of Palo Alto Page 3 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM VI. Establishment of Goal City of Palo Alto May 1999 The DBE goal will be established both annually (overall) and on a per-contract basis. The overall goal will be basedon planned contract activity for the coming year. The ocerall 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. o o 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 1996-97 25 percent 1997-98 No Projects 1998-99 25 percent Proposed 1999-2000 25 percent 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. 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: A."Polic_£. 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 DBE Program, City of Palo Alto Page 4 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto May 1999 part with federal funds under this agreement. Consequently, the DBE requirements of 49 CFR Part 23 apply to this agreement." Bo "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 wil 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 ofPalo Alto’s current established bid process, interested CalTrans certified DBE firms withifi 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. Competitors who fail to meet the DBE goal and fail to d~monstrate 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 ongdng basis by project personnel during the course of construction. The DBE LiaisonOfficer is to be immediately advised of any circumstances wherein contractor compliance with the DBE provisionis questionable. DBE Program, City of Palo Alto Page 5 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto May 1999 The contractor shall submit a final report for each project which includes total payments to the prin~ 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 ard any corrective action that was taken. Prime contractors will be required to notify the City of Palo Alto DBE Liaison Officer via the projea manager of any situation in which regularly scheduled progress payments are not made to DBE subcontractors, vendors, or suppliers. Xo Counting the DBE Participants The City of Palo Alto, its contractors and subcontractors shall count DBEParticipation in accordance with the provisions of Section 23.47, Title 49, of the Code of Federal Regulations. XI.Records and Reports 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 informaion: 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. The DBE Lia’ison 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; 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 orexceeded the overall goal. DBE Program, City of Palo Alto Page 6 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM City of Palo Alto May 1999 Reports shall be broken down separately by ethnic grouping and gender. XII. Complaints Any complaints received by the City concerning this program will beinvestigated by the City of Palo Alto. The City of Palo Alto will endeavor to resolve said complaints within 90 days ofreceiat by the DBE Liaison Officer. The appropriate DOT element and CalTrans will be furnished acopy 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 theCityofany complaints they mayreceive concerning this program. End of Document DBE Program, City of Palo Alto Page 7