01-16-2001 - Disadvantaged Business Enterprise (DBE) ProgramCity of West Covina
Memorandum
TO: Daniel G. Hobbs, City Manager
and City Council
FROM: Thomas M. Mayer
Public Works Director/City Engineer
AGENDA
ITEM NO. C-6c
DATE January 16, 2001
SUBJECT: DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM
SUMMARY: One of the requirements to receive Federal Funds for street improvements is to
have a current Disadvantaged Business Enterprise (DBE) Program. The adoption
of the attached resolution approves a new DBE program in place of the existing
program.
BACKGROUND:
The State of California Department of Transportation (CalTrans) has notified all local agencies
receiving Federal -Aid Highway funds that to continue complying after October 1, 2000 with all
the elements of the new Federal DBE Regulations in accordance with Title 49, Part 26 of the
Code of Federal Regulations (CFR), each local agency must implement a new DBE Program and
establish an annual overall goal prior to submitting a "Request for Authorization" to proceed with
a Federal -Aid Project.
CalTrans has been entrusted with local agency oversight responsibility for DBE implementation
by the Federal Highway Administration (FHWA). Previous DBE requirements (49 CFR 23) are
now superseded by the new regulations (49 CFR 26). With two federally funded City projects,
Merced Avenue Reconstruction from Walnut Avenue to Valinda Avenue and South Azusa
Median Landscape from Aroma Drive to Nelson Street, nearing the construction stage, the new
DBE program is ready for adoption.
DISCUSSION:
The City has prepared the new DBE Program draft and submitted it to CalTrans for its approval.
Recently the City received approval of the new DBE Program from CalTrans, pending the adoption
of a resolution approving the program by the City Council.
The new DBE Program contains the following key elements:
• The City will ensure non-discrimination in the award and administration of the Department of
Transportation (DOT) - assisted programs.
• The City Engineer is responsible for implementing all aspects of the DBE Program.
• The City of West Covina will provide to CalTrans a proposed overall goal and goal setting
methodology and other program updated by June 1 of every year.
• The City will sign all FHWA assisted contracts and their administration as part of the program
supplement agreement for each project.
• The City of West Covina will refer interested persons to the DBE directory available from the
CalTrans DBE program.
• The City will ensure that the prime contractor upon satisfactory completion of work pays each
subcontractor no later than ten days after receipt of each payment from the City and, in addition,
the prime contractor shall release retainage to each subcontractor with 30 days after the
subcontractors' work is satisfactorily completed.
• The City will assign a Resident Engineer (RE) or contract manager to monitor and track actual
DBE Participation through contractor and subcontractor reports of payments.
• The RE will ensure construction contract monitoring.
• The City of West Covina's overall goal for the Federal Fiscal Year 2000-2001 is 14% which is
broken down into 12% race -conscious and 2% race -neutral components.
• The City will use contract goals to meet any portion of the overall goals.
• If the bidder's proposal does not meet the contract goals, the City treats bidder's offers with
good faith effort requirements as a matter of responsiveness.
• The City is responsible to provide the final utilization of DBE Participation report to CalTrans.
XAAGENDA - 2001\DBE Program_Revision.doc
. 0
Daniel G. Hobbs, City Manager
and City Council
Page 2 — January 16, 2001
Presently, the City has submitted a Federal funds request for the Merced Avenue Reconstruction
Project and is now in the process of submitting the second project -South Azusa Avenue Median
Landscaping. In order to complete the process, it is necessary to approve a new DBE program.
OPTIONS:
The only option is not to approve the new DBE program. That decision would, in effect, reject the
Federal funds for City street improvement projects.
FISCAL IMPACT:
The Merced Avenue Reconstruction project and South Azusa Avenue Median Landscaping
project will utilize about $670,000 and $330,000 in Federal funds respectively. In the event the
DBE program is not approved, the City would forego about $1.0 million in Federal funds.
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, APPROVING AND ADOPTING
A DISADVANTAGED BUSINESS ENTERPRISE (DBE)
PROGRAM AND DIRECTING ITS IMPLEMENTATION.
Prepared by:
rd
FA PEP
=I r
DM -
Principal Engineer
Reviewed and approved by:
Thomas M. Mayer
Public Works Director/ ity Engineer
Attachment: Resolution
X:\AGENDA-2001\DBEPrograryLRevision.doc 2000-188 jmg