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HomeMy WebLinkAbout0434.093• ~ .... ~ AUgust 5, .1993 HONORABLE CITY COUNCIL Palo Alto, California 25 AdoptioD of a pisadvantaged Business Enterprise (DBE) Program Members of the Coune i 1 : llBPOR'r 7.5 BRID' This report requests that the City Council adopt the at,tached resolution (Attachment 1) impleJnenting a Disadvantaqed Business Enterprise rDBE) program and an overall DBE qoal of 18 percent for the City of Palo Alto, to be utilized on federally funded projects in order to cOW;ply with federal requlations. The staff recommended action relates to complyinq with fede~al qovernment requirements necessary to receive federal transportation funds. BACkGJtOOllD In Marcb 1992, HTC announced plans to program the new Intermodal Surface Transportation Efficiency Act ,ISTEA) funds from the federal government into the 1993 Transportation Improveaent Program (TIP). Palo Alto participated in the process, which cuLminated in the development of the 1993 TIP. Ultimately, the only Palo Alto project to be included in the 1993 TIP ~as the Embarcadero Road Bike/Pedestrian Bridge and Bike Path Extension project, for which $320,OO~ in federal funds have been programmed. The Page MillJ Foothill Intersection Improvements projo:..-::t scored 'Jell, but just missed the funclinq cutoff and 'Was ranked second highest of the projects not funded (reference CMR:413:92, 9/10/92). Indications from CMA and HTC staff are that $792,000 for this project is now being considered for advancement into the 1993 TIP, due to the faltering of a San Francisco project. In addition~ Palo Alto's participation in this process during 1993 has resul~ed in the CMA subaittinq another Palo Alto project to MTC for programming consideration in the 1995 TIP~ This project includes $2,040,000 in federal funds for improvements at the intersections ':If Foothill/Arastradero/Miranda, Foothill/Hill viewJMiranda, and construction of a new signalized inters~ction at the Vetera.ns' CMR:434:93 , Aaministration Hospital driveway and Foothill Expr-ess..,ay~ The project appears to be 'Well positioned for receipt of federal tundin9~ In s~ary, federal funding has al~eady been approved for one project, is in the process of being approved for a second project and will likely be approved for a third project. The amount of federal/state dollars for these three proiects is approximately $J.15 million. Part 23 of Title 49 of the Code of Federd.l Regula'tio!1s requires recipients of federal fUnds to establish a DBE program and an overall OBE goal. The p~rpose of a DBE program is to implement a federal policy supportinq the !~llest possible participation of firms owned and controlled by minorities and women in proqr-ams funded by federal funds. Caltrans is r-esponsible for ensuring compliance with requirements for DSE participation on projects using federal funds. Accordingly, the City of Palo Alto must establish a DBE proqram and DBE par-ticipation goals before calt',rans anQ the Federal Hiqhway Administration (Fl~A) will release funds for these ISTEA funQed proj~cts~ DBE PROGRAM While staff is very supportive of the go~ls of the DB£ progr~m~ it is impractical to consider implementing an active DBE program for all city contracts without staffing augmentation. purchn-sinq staff currently ensures that requirements for non-discrimination are clearly spelled out in all contracts and mainta!fls documentation provided by contractors as to compliance; however, they have not been able to pursue active solicitation, technical assistance or educational programs; or to provide analysis on a project-by­ proje-~ basis as to the attainment of DBE 90al$~ as required by ~;e Code of Fader.al Requlations for pl.~ojects funded in whole or in part by federal fundEi. Since these can be accomplished. only with additional stafting. they are not recommended. Thus, th~ recommended DBE program will apply only to proje~ts u~ing federal transportation funds. The city of Palo Alto's proposed OaE program is prepared based on a format recommended by the C~ltrans' Office of Local streets and R¢ads. This program includes the following: 1. A policy statement to be siqned by the ~~yor; 2. Ten elements that outline the re~~irements for establlshinq a DBE liaison officer, and the duties of t~e officer; 3. Contract procedures ~ith respect to DBEs. DBE notifications, counting D8E participation toward meeting OBE goalS, reports and records~ and handl~n9 complaints; and 4. Method for estahlishing the DBE goals for the City. CMR:434:93 8/5/93 Page 2 • • Federal regulations require establishment of two types of DB! goals (1} an overall qoal for the entire program (usually for a one year period) and (2) contract goals for each specific p~ime 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 on DBE utilization. The minimum required overall DBE goal is 10 percent. S~aff proposes that the city council establiSh an overall goal of 18 percent for the remainder of this fiscal year from Auqust 16. 1993 to June 30, .1994. This value has been chosen because the santa Clara county Transportation Agency and the City of MOUntain View have certified DBE proqr~s with an annual goal of 18 percent. This value vas determined based, in part, on their research of availability of DSEs in this area and the County's DBE utilization of past federally funded projects. Since Palo Alto is in the same geographic area and is served generally by the same DBE firms available to the County and Mountain View, and staff has no previous experience in DBE participation or availability of DBEs in this area, the qoal of 18 percent is proposed for adoption. Since DBE goa1s Dust be revie~ed annually, this fiqure could be adjusted next year based on availability of OSBs and the Cityts experience. Federal gui~elines do allow for contracts to be awarded to success£ul consultants/contractors, who meet contract DBE goals or demonstrate that they have made a good faith effort to do so, in accordance with guidelines. Once the proposed proqram is approved by the City Council, the DSE proqram will be pul:llished in a local ne~spaper ana in various .inority trade publications. The program becomes effective from the date of publication. Subject to Council approval,. staff expects to publish it by August ~6; therefore, the program will begin August 16 and cover a period from August 16, 1993 to June 30, 1994. Beginning next year, the program could remain the same, but th~ DBB goal would be adopted on a fiscal year basis. Publication is done to give notice to prospective DBE bidders that the City has adopted a DBE ProqraI!l., and that the goals will be available for inspection for 30 days following the notice. Cal trans is also given a not~ce that the program has been adopted, and it will receive comaents on the program for 45 days following the pub.lished notics-. Comments received are for informational purposes only. Adoption o~ a resolution to establish a DBE progr~m and goals is not considered a project under CEQA~ No environmental assessment is required. CMR:434:93 8/5/93 Page 3 • RBCCww,W'lAfiOM St&tf recoamends that ccuncil adopt the attachea resolution establishing a Disadvantaged Business Enterprise Program and a DBE qoal 18 percent for the City or Palo Al~o, to be used on federally funded transportation projects. Respectfully submitted. tw. .41r "'"'-"'" .....t ABHOK K. AGGARWAL City Traffic Engineer City Manager t:f£/d~,( ;{4~ KENNETH R. SCHREIBER Director of Planning and Community Environment Attacbaent: Reso~ution Adcpting OBE Program cc: Bob wu, caltrans] Office of Local Street$ and Roads Peter Liml Office of Local streets and Roads CMR:434: 93 8/5/93 paqe " • @ ATTACHMENT 1 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF TH!! CI1'Y OF PAW ALTO ADOPTING A DISADVANTAGED BUSINESS ~!i!·B.QP1H~E' (DBS) PROGRAM POR FEDERALLY FUNDED CITY TRANSPORTATION PROJECTS WHBRBAS~ in order to compl~' with federal requirements to obtain federal funds for City L~~nsportati~-project8~ the city of Palo Al.to 'IJll.let approve and implem~!."\t a Disadvantaged Business Rnterprise (-PBE") program prior t.o app::::mtal by Caltrans and the United States Department: of Transportation \~DOT·) of any request for federal funds; WHZB.BJ\S, t.he overall goal established by t.he DBE p.rogram for DBB participation in the performance of contracts iinanced in wbole or in part with DOT funds shall be 18 percent and ahall cover the period from August 16, 199~ to June 30, 1~~4; NOW. TIlBRBFORB~ the Council of the City of Pa!o Alto does RESOLVE as follo.s: SJ:ii.vQN 1, The Council hereby adopts the "Disadvantaged Business Enterprise Program -City of Palo Alto~, a cqpy of which is a'Cta.ched hereto and incorporated herein by reference. SBCTION 2. The Ccuncil hereby establishes the overall goal of 18 percent. for DBE participa_t.ion in t.he performa.nce of contracts financed in Whole or in part with DOT funds during the period of August 16, 1993 to June 30, 1994. SBGTIQN 3. The Council hereby directs the City Manager or euch person as the City Manager tray designate to publish nevspc;:.per not-ice this year and every following year (or fiscal year r as the case may be) during the existeilce of t.his DBE Program, setting forth the goal established by the City for that year for the participation of DBB participation in the performance of 1 • contracts financed in whole or in part with DOT !unds, anO stating the time period for which the goal is effective~ ll'ITRODUCSD AND P!\SSBD: AYES: HORS: ~BN'l': ABSTBN'l'IONS : ATrBST: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney 2 APPROVED: Mayor City Manager Director of Finance Director of Planning and Community Environme~t Chief Transportation Official • DISADV ANTAGED BUSL'ffiSS EN'-ERPRlSE (DBE) PROGRAM CITY OF PALO ALTO • DISADVANTAGED BUSINESS ENTERPRJSE (DBE) PROGRAM CITY OF PALO ALTO I. foHcy Swement It is the policy of rhe City of Palo to provide '" Disadvantaged iklsiness Ellterprises (DBE), as defined in Tid. 49 Tral1sportation. Cod. of FeDeral R'gulations (CFR) Part 23, • maximum practicable opportunity to rompete for the award of contracts which rereive financial assi stan"" from the U.~, Department of Transportation. This policy. whkl> is fully described herein. constiture. policy and commilmellt to substantially increase DBE utilization in all prog..ram .acti V 10es funded in whole or in part by any U.S, Department of Trnnsp<lrt>.tion (001) model element. The Cily of Palo Alto, its ccntr.lctors and subwntraaors, wruch are the recipients of FeDeral-aid funds, agree to ensure that DBE firms have the maximum opponunity to participate in th<: perf01'Tll8l1a of federally funded ccntracts and subcontracts. In this ~. this agency and all of lIS contractors and subcctltractors will talce all reasonable stt:ps in accordance with 49 CPR Part 23 to ""sure that DBE firms have tile maximum opportunity '" compete foc and perform contracts. MAYOR, CITY OF PALO ALTO Page I • n. . [)efinitions Below are ~v"" the definitions, .., they apply 10 the City of Palo AllO's DBE ?rogram, and .., defined in 49 CFR Pan n, of f» Disa<lvantaged Business Enterprise, and (b) socially an<! economically disadvantaged individuals: 3) A Disa<lvantaged Busines. Enterprise is a small business CCflcert1, as defined by Section 3 of the S mall Business Act (13 CFR Part 121), I. Wltich i. at least 5 I percent owned by one or more 50cially an<! eCOflOlrJcalIy disadvantaged individuals, or, in the case of publicly owoed business, at least S I perr.ent of the stock of whicn is owned by one or IOOIe socially and economically disadvantaged individual.; and 2. Whose management and daily ~usiness operations are controlled by one or more of the socially and economically disadvantaged individuals who own it and who ralre an active role in rontrol!ing the business. b) Socially and economically diMdvantaged individuals are those individuals who are citizens of the Uni.ed S ... es (or lawfully admined permanent residents) who are: 1. Wcmen~ 2. Afri<:ar. Americans; 3. Hispanic American .... -which includes persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Sp;mish or Portuguese culture or origin, regardless of race; 4. Native A merMU1s-which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiia..., s; 5. Asian-Pacific Americans-----which ineIodes persons whose family origins are in Japan, Chi~ Taiwan, Korea, V~. Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust TemlOry of the Pacific Islands, and the commonweaJth of the Northern Marianas; 6. Asian-Indian Americans--which includes persons whose family origins are in India, Pakistan, and Banl'.iadeslt; and 7. Any othet minority or individllal found to be disadvantaged by the SmaD Business Administration. Page 2 • ill. Dipdyanlj\m:! BuJine,y Ent¢fJJri:.e <PRE) I liaison Officer The V.anager of Purchasing/Contract Administration, (415) 329-2300, i, the DBE Liaison Officer for the City of Palo Alto ond "'all report to the Director of Finan",. N. DlItie;,; Qf the PRE Liaison Officer The OBE Liaison OfflCet shall manage the DBE Program on a day-Io-<!ay basi,. TypiCal duti .. include, but are noI limited 10, !N: following aotivities: • Provide I£Chnkal assistance to D8F .. when reqUe1ted; • Arnmge solicitations, time for the presentation of bids, quant!ties, specifications and delivery .s;;hedu!es, SO as to facilitate the participation of DREs. 'Where s~h changes are found necessary to increase DBE utilization, they will be made in consuitation a,..,d cooperation with the departments involved; • Carry out information and oammunicatieon programs on contracting opporrunities in • timely manner; • Unless noted elsewhere herein, the listing of OBEs certified by Caltrul' will be utilized. Said listing is 10 be made available 10 all project bidders. Such listing will include the foGowing infO!'11JAtion: name, address, tclephone number, ethnic and or SOlluai ownenhip and type of work performed oy finn; • Prior to approval of !he substitution cf any OBE subcontractor. the prime conlI>clOn will be required 10 prove perfonnan"" of good-faith efforts to replace tI-.e DBE with anotI1er eligible DBE; • Establisll a OBE o-.-eraIl annual goal for projects funded in whole or in part by U.S. Department of Transportation funds. The goal shall be evalual<d annually and adjusl<d as necessary; • Establish an appropriate indIvidual project DBE goal for each Federal Aid Project advertised; • Perform good-rutb anaIy.is when the project goal is not achieved; and • Mainlain soch docIlm<ntation as i. neressary to verify perform= of all activities included in !hi. program. Page3 • v. Public Notification 1. At the time of submitta1 of Ibis program to the Stale Department of Transpor1ation, , notice in both minority and majority local media will b<" publisfle<i. Said publication shall incl ude: • The annual overall DBE goal; • Notification tbal a description of how the goal was set is av-o:lilable for public inspection to< • period of 30 days; • Nooftcation thaI the U.S. Departmenl of Ttarlsportation (U.S. DOT), in care of the City of !'cio Alto, will ac<ept comments of the goal for 45 day. from the dale of nctlce. The notice shall advise interested parties that comment!. axe for information purposes only. 2. This program will be: reaffirmed by public notice al'nuclly at the time of pubolication of overall goal. If sIJbstar!ti.al C!'.a.'1gN are made to this document, the entire document shall be subject kJ notification noted in .. J .• above. 3. In addition to the foregoing, copies of this complete program .. 111 be ,,-.ailed to interested caJ= certified fums in the local area. VI. Fspblj1tunen' of Goal 1. The DBE gual will be: estab\u:hed bolh annually (over.!.ll) and on a per<entract basis. The ovcr..n goal wiU be based on planned contract activity for the coming y=. The ov....n goal established will be subject (0 methodology aod procedures established in 49 CFR Part 23. Subparts (C) and (D) aod take effect on July 1 of each year, herein after. 2, The overall DBE goal e!.1ahIished with this initial program is 18 percent and coveTS the period August 16, 1993 to June 30, 1994. 3. In<!l,,jdual project goals will be established based ()() the following crtteria: • Attainment of established overdli goals; • Siu oi project; • Opportunities (Clr DBE as SUbcontractors, vendors, and suppliers. • ).tlnoriry population of geographic area in \\-<bien "Jork lS to be performed; Page 4 • • OBE goal. being utilized in the grographic ..... by other Slate, Federal. or local jurisdiction~; • Availability of cenified ORE.; • Past aperience on projects similar to the project being evaluated, and • S"ch other {actors as ""'y affect the utilization of OBEs. Complete evaluatioo documentation will be retUned for each project. 4. Proj<ets that are funded in whole or in ;>art by U.S. Depanment of TrlIIIsponaIion fund., and which de nO! contain a specilk goal, wlli contain the following provisions: A. '~. It i. the policy of the Department of Transportation that disaduntaged business enterprises as defLned in 49 CFR Pan 23 shall have tbe maximum opponunity to participate iII the perfonnance of contracts financed in whole or in part with Federal fu nd. under this agreemenL Consequently, the OBE requin:ments of 49 CFR Part 23 apply 10 this agreement .• B. 'PBE Obli~. (i) The TtCipient or its contractor agrees 10 ensure that c!i.sadvantaged business enterprises as defined in 49 CFR Part 23 have !he maximum opponunily to participate in !he perfotmance of contracts and subconttacts fina.1<e<l in whole or in pan with Federal funds provided under this agreement. In this reg,ard, all recipients or eontracb:H'5 shall take all necessary and reasonable steps in acwrdance with 49 CFR Part 23 to ensute that disadvantaged business enterprises have !he maximum opportunily to compete for and perfonn contracts . .Recipients and their oont:ractGrs shall not discriminate. on the basis uf race. color. national origin Of sex in the award and performanr:e of OOT -assisted contracts." YD. :Contract PmcOOute This program .hall be implemented through the utilization of a contract special provision, which will be provided! upda~ as necessary by the Cily These procedures required biddea 10 submit the names of OBE su!>contractors and .uppliers, • description of the work each is to perform or materi.a1 to be furnished and the doUar value of each OBE .u!>activity. VID. PRE NcnificaJjon In addition to !he Cily of Palo Alto', current established bid process, interesled Caltnns cenified OBE firms within :.~e local area will also receive notification of projects scheduled. PageS • IX. $elec:!jon Cri1erje. for Proio:cu with ME Goa! Projects funded in whole or in port wirh U. S. Department of Tran'p"rtation funds oontaining • DBE goal shall be evaluated by rhe DBE Liaison Officer or his/beT designee 10 ascertain l>idding contractors' efforts 10 attain lhe DBE goal. ~ .ward of any project must be concurred with by rhe DBE Liai.soo Officer or hislher designee before said conlI>C\ may 1>, awarded. Should there be disagreem"", by the conrracting department coocerning the contractors' efforts to attain contnlCt goals for DBE participation, !he matter sball be referred to rhe DBE Liaison Officer or hislher .resignee, (0< final determin.atiOll. Competilors who fail to meet the DBE goal and fail to demonslr1lte sufficient rea.sonah)e good-fairh efforts shall be declared nonresponsive and ineligible for award of the cootract. All contracts that conrain a DEE goal, Plirsuatlt to this policy. will be monirored on an ongoing ~..s by project personnel dlJring the CO:Jr5e of construction. The DBE Liaison Officer is to be i mmcdiately advised of all Y circ\J mstances wherein contracll'Jr compliance with the DBE provision is questionable. The contractor shall submit a final report for eacb project which includes total pa.yments to the prime ccntf2Ctor 'is wen as any payments the prime contractor has made to DBE SlJbcoo.t~ctors, vendors, and suppliers, If the repon indicates the prime contractor has not achieved the project goal, project personnel .shall attach an evaluatioo, in narrative form, of the reason:s. fOY failure 10 attain the goal and any corrective action th.t was taken. Prime contractors will be required 10 notify the City of Palo Alto of any si tuation in wbic/l regularly scI1eduled progress payments are not made '0 DBE subcontractors, vendors, or suppliers. x. eoontin& DBE Participant; The City of Palo alto, its contractors and subeentractors shall count DBE participation in acrordance with the provisions of Section 23.47, TItle 49, of tile Code of Federal Regulations. XI. Records and RewrlS I. The DBE Liaison Officer shall maintain such records and provide sl\cl1 reports as are necessary to ensure fuD compliance with this policy. Such records and reports shall indude, as a minimum, the following infonnatiOfl: • Awards Iv OREs; • A.wards. to nl'ajority rontractors; • Final overall project reports will include DBE utilization status; and • Such other data as is needed to fully evaluate compliance with this prognun. Page 6 • 2. The DBE LWson OffICer .haIl submit reports to Caltf1!1\s andior tn the appropriate U.S. Depanment of Transportation element as requiw:l. These report> will in<:lude: • N1Jmber and dollar value of CQI1~ a\\<ifded; • Number and dollar 'Value of C(lntr.1cts aM Sllbcontrac.ts awarded to 08Es; • Description of general category of cootracts awarded to ORes; • The percentage of the dollar "wue of aU contracts awa.roed during the year which was awarded 10 DBEs; • Indication as to the uteflt of which the percentage met or c"ceeded the over.ill goo), • Reports shall be broken down separately by ethnic grouping and sex. XII. Cpmplaints Any complaints recaved by the City cor.ce:ning this program will be investigared by the City of Palo Alto. The City of Palo Altn will endeavor to resolve said complaints within 90 days of recap! by the DBE Liai'<Jn Officer. The appropriale DOT element and C:1ltnllls will be fu;-nished • oopy of the complaint and may be invited to pa."1icipate in the investigation/rosol u "OIl, The DOT element and C:1ltrans wiU recave • complete investigative report on the complaint and may be req" .. ted to concur in the proposed disposition of said complaint. Conttactors will be directed to notify the agency of ""y complain\> they may teceive ooncesning thi. program. Page 7 "''-'