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HomeMy WebLinkAboutAgenda Statement 1982/05/18 Item 10COUNCIL AGENDA STATEMENT Items 10 Meeting Date 5-18-82 IT S Ch re no be at Tr M TITLE: Resolution ~~~~~ Approving San Diego County Region Minority Business Enterprise Program for projects funded with Federal Transportation Funds and designating the City Engineer MBE Liaison Officer in accordance with the Code of Federal Reg ulations, Title 49 Part 23 MITTED BY: City Enginee (4/5ths Vote: Yes No x ) ages to the Federal Minority B siness Enterprise (MBE) program uirements as published in the April 27, 1981 Federal Register, require each local agency to adopt their own MBE program to eligible for use of Federal Transportation funds. The ached resolution will qualify the City for receipt of Federal zsportation funds. RE OM MENDATION: That the City Council adopt resolution approving the San Diego County Region MBE program and designating the City Engineer as MBE liaison. /COMMISSION RECOMMENDATION: Not applicable. DISICUSSION: On March 31, 1980, the U.S. Department of Transportation issued ne regulations on the use of minority and female owned businesses. These regulations required State Highway agencies as well as cities, counties, metropolitan planning organizations and other recipients of U.S. Department of Transportation funds to develop specific plans for the use of Minority Business En erprises (MBE) and Women Business Enterprises (WBE), the development of goals on individual contracts, establishment of a go 1 for the overall activities of the agency, as well as other equ 1 opportunities efforts. Fo the period between August 29, 1980 and July 1, 1981, many to al agencies were allowed to use the Caltrans MBE program in lieu of developing their own. In the April 27, 1981, Federal Register, changes to the Federal MB program requirements were published which now require each loc 1 agency to adopt their own program. Recognizing this need, the San Diego Regional Federal Aid Urban Advisory Committee has developed a regional MBE program. This regional program has already been approved by Caltrans and the U.S. Department of Tra sportation for use by all local agencies within the San Diego Region. To date the County of San Diego and 12 of the 16 cities hav adopted thi s regional program. Page 1 of 7 June 8, 1981 SAN DIEGO COUNTY REGION ~1INORITY BUSINESS PROGRAM I. Policy Statement It is the policy of local government in the San Diego region to utilize Minority Business Enterprises in all aspects of contracting to the maximum extent feasible. This policy is fully described in the San Diego County, region Minority Business Program which constitutes a regional government policy and a commitment to substantially increase Minority Business and Female Business Utilization. This policy includes any program or facility funded wholly or in part by any Federal agency which requires a Minority Business Program. The local governments, their contractors and subcontractors, which are the recipients of Federal-aid funds agree to ensure thai minority business enterprises have the maximum opportunity to participate in the performance of contracts and subcontracts. In this regard local govern- ment and all of its contractors and subcontractors will take all reason- able steps in accordance with 49CFR23 to ensure that minority business enterprises have the maximum opportunity to compete for and perform contracts. G~ ~ ~~, Cha- ~n San Diego Region Federal Aid Urban Advisory Committee /~~~~~~f -2- IIl II~ Minority Business Enterprises (MBE) Liaison Officer Each local government will appoint an MBE Liaison Officer. This Officer will be assigned such staff as is necessary to fully implement the provisions of 49CFR Part 23 and such other MBE programs as may be required. The reporting structure, and duties of support staff shall be available upon request from local government. . Duties of the MBE Liaison Officer The MBE Liaison Officer shall develop, manage and implement the MBE program on a day-to-day basis. The Liaison Officer shall: Develop and carry out technical assistance programs for MBE's. Arrange solicitations, time for the presentation of bids, quantities, specifications, and delivery schedules so as to facilitate the parti- cipation of MBE's. Provide assistance to MBE's in overcoming barriers such as inability to obtain bonding or financing. Carry out information and communication programs on contracting oppor- tunities in a timely manner. Investigate the full extent of services offered by banks owned and controlled by minorities or women. Ensure that, where possible, local government utilizes said banks. Use Caltrans listing of Certified MBE's. Said listing to be made available to all bidders on local government projects. Accept Caltrans' evaluation and verification of the eligibility of all firms and joint ventures who either claim to be or others claim to be minority owned. Approve any removal and/or substitution of a Minority Business Enter- prise during contract performance. Prior to approval of substitution and/or removal of MBE, prime contractors will be required to prove performance of good faith efforts to replace the MBE with another eligible MBE. Develop such reporting systems as are necessary for local government to report on activities/ results of efforts in this program. Report quarterly if necessary progress and results of MBE program. Establish individual project goals for minority and female business enterprises. All projects with an estimated cost of X100,000 or more, shall be evaluated for the appropriateness of yogis. t~taintain such documentation as is necessary to verify local government performance of the above activities. IVI. Establishment of Overall Regional Goal 1. The Region will establish an overall goal for its use of MBE's and -3- 4JBE's. These goals will be updated annually as of September 30 of each year. V.I 2. The overall goal and rationale for the period October 1, 1980 through September 30, 1981 is attached herewith as Appendix A. Contract Goals All projects with an estimated value of $100,000, or more, receiving Federal Funds requiring an MBE Program will be evaluated for the appro- priateness of P-1BE goals. Projects will be evaluated, and goals estab- lished, utilizing the following criteria: Size of project. Opportunities for MBE's as subcontractors, vendors, suppliers. Pinority population of San Diego County . Existing MBE goals being utilized in the project area by other state, federal or local jurisdictions. Availability of MBE's. Past experience on projects similar to the project being evaluated. Such other factors as may effect the utilization of MBE's such as bonding capacity and gross annual income. Each project will be evaluated in conformance with the above criteria. Complete documentation will be retained of every project so evaluated. Contracts which do not contain specific goals will contain the following provisions: (1) "Policy. It is the policy of the region's local governments that havminority 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 MBE requirements of 49 apply to this agreement. (2) "MBE Obligation. (i) The recipt or its contractor agrees to ensure that minority 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 necess- ary and reasonable steps in accordance with 49 CFR Part 23 to ensure that minority 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 perform- ance of DOT-assisted contracts." ~46E use on projects without goals will be reported to the Lai son Officer and will be included in local government reports. MBE use on such projects ~'~ic~~a -4- VI VI VI] IX. will be counted toward attainment of the overall Regional goal. Leasing Goals In order to encourage hiBE's to participate in the leasing opportunities with local government the following is proposed as part of the MBE program: 1. Advertise leasing opportujnities with local government is a majority and minority media newspaper. 2. Participate in communication programs to inform MBE's of local govern- ment leasing opportunities and requirements. 3. The MBE leasing goal for the period October 1, 1980 through September 30,1981 is attached herewith as Appendix B. I. Public Notification At the time of submittal of this program to the applicable federal agency local government will publish a notice in both minority and majority media throughout the region. Said publication shall: Announce the overall Regional goals. Inform the public that the goals and a description of how they were set, are available for public inspection fora period of 30 days. Inform the public that both applicable federal agency and local government will accept comments on the goals for 45 days from the date of the notice. The notice shall advise interested parties that comments are for informational purposes only. In addition to the foregoing, interested minority and majority contractor organizations will receive direct mailings of this complete program with a request that they provide written comments to local government on this program. I. Contract Procedure This plan shall be implemented through the utilization of a contract special provision which is attached herewith as Appendix C. These procedures require: Bidders to submit the names of MBE subcontractors and suppliers. A description of the work each is to perform or material to be furnished. The dollar value of each P16E subcontract. Minority and Female Owned Banks Local Government will encourage all contractors to use the services of banks oti~~ned and controlled by minorities or r"emales. This- encouragement will bE disseminated during pre-bid and pre-construction conferences (if scheduled) and the contract specifications. - U~7~ -5- X, XIJ XII MBE P~otification All assistance centers funded by the U. S. Department of Commerce Minority Business Development Administration) will receive complimentary plans and specifications for projects within their geographical area of responsibil- ity (San Diego County). Selection Criteria for Contracts with MBE Goals. Every local government contract containing MBE goals shall be evaluated by the h1BE Liaison Officer or his/her designee to ascertain bidding contrac- tors' efforts to attain the MBE goals. The award of any project with M6E goals must be concurred with by the MBE Liaison Officer or his/her designee before said contract may be awarded. Should there be disagreement betareen local government's functional units concerning contractors' efforts to attain contract goals for MBE participation, the matter shall be referred to the local governments' City Engineer/ Public Works Director/Director of Engineering or his/her designee, for final determination. Competitors that fail to meet the MBE goals and fail to demonstrate suffi- cient reasonable efforts shall not be eligible to be awarded the contract. Any contracts that contain MBE goals, pursuant to this policy, will be monitored on an ongoing basis by project personnel during the course of construction. The f•1BE Liaison Officer is to be immediately advised of any circumstances wherein contractor compliance with the MBE provision is questionable. The contractor shall submit a final report for each project with MBE goals which includes total payments to the prime contractor as well as payments the prime contractor has made to MBE subcontractors, vendors and suppliers. If the report indicates the prime contractor has not achieved the project goals, project personnel shall attach an evalua- tion, in narrative form, of the reasons for failure to attain the goals and any corrective action that was taken. Prime contractors will be required to notify local government personnel of any situation in which regularly scheduled progress payments are not made to MBE subcontractors, vendors or suppliers. 1. MBE Set Asides Local government at this time does not plan to use the "set asides" concept to encourage P•16E's to bid local government projects. XI~II.CountinQ ~~18E Participants Local government, its contractors, subcontractors and recipients shall count P~16E partifipation in accordance with the provisions of Section 23.47, Title 49, of the Code of Federal Regulations. XIIV. Records and Reports The t•16E 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. Procedures which have been adopted to comply with this MBE policy. to MBE's. Awards ~if j'- iG'~'7~~ -6- XV. Awards to majority contractors. Final project reports concerning MBE utilization. Such other data as is needed to fully evaluate local government compliance with this program. The MBE Liaison Officer shall submit, as required, reports to any Federal agencies requesting same. Copies of reports to FHWA will be sent to CAL- TRANS. These reports will include: Number and dollar value of contracts awarded to MBE's. Description of general categories of contracts awarded to MBE's. The percentage of the dollar value of all contracts awarded during the quarter which were awarded to MBE's. Indication as to the extent of which the percentage met or exceeded the overall departmental goal. Reports shall be broken down separately by ethnic grouping and sex. Any contractors qualifying as Small Businesses will be reported separately. MBE Directory The State of California, Department of Transportation (Caltrans), maintains a listing of firms certified to be Minority Businesses in accordance with the DOT Order. This listing is in accordance with Sections 23.51, 23.53, 23.55, and 23.87 of 49 CFR. Local government will use CALTRANS' MBE listing in lieu of preparing the maintaining its own separate directory. Local government will also utilize CALTRANS' certification services for contractors and subcontractors who- desire to be counted as P1BE's and are not currently included in the CAL- TRANS' certified directory. Local government contractors will be permitted to rely upon the authen- ticity of firms listed in this directory. A contractor desiring to use an h16E not included in the CALTRANS' certified listing will be allowed to do so, but will be required to provide the appropriate certification from the MBE before such participation is counted towards award of the project. XV~. Complaints Any complaints received by local government concerning this program will be investigated by local government. Local government will endeavor to resolve said complaints within 90 days of receipt by the MBE Liaison Officer. The appropriate Federal agency will be furnished a copy of the complaint and invited to participate in the investigation/resolution. The Federal agency will receive a complete investigative report on the complaint and will be requested to concur in the proposed disposition of said complaint. Contractors and subrecipients will be directed to notify local government of any complaints they may receive concerning this program. -7- XVI~ I. Federal Mandate This policy and its contents are required by regulation promulgated by the United States Department of Transportation, 49 CFR Part 23. In the event any or all of said regulations are determined to be unlawful by a court of competent jurisdiction, this policy and its contents shall to the same extent be void, unenforceable, and not a requirement of local government. XXXXXXXXXX -/~~ ~j~~ SAN DI E GO REGION o 0 o FEDERAL AID U RBAN ADVISDRY COMMITTEE MEMBER AG NCIES ~ TIES .a wLSBSO ~MULi Vi$TA COwONa00 JEL Maw EL CAJON '_SCON 0100 IM.E wlgl dEw M LA NE54 LE.+oNpwp„ N4il0 NYL CI October 8, 1981 OCE4NSIDE >Ow4r SsN DIEGO SaN a+a wc05 SANTEE VISTA CALTIi4N5 NCTDB ~_~ , sDlaroe c, . -- -. COIN TY OF 5 N DIEGO Iv _ ~ -~ ~ 1 Mr . E. A. Kubichek N ' ~ ~' C~ Di trict Local Assistance Engineer ,~~ ;_ ~_; ~- - ~.w Tcuyv'j, LiS~rll.t 11 _ ~ _ P. Box 81406 • Sa Diego, CA 92138 -~ .,. _ c -• ~.~ At ention: Mr. Martin De r Mr. Kubichek, S JECT: Annual Revision of MBE Overall Goals _ Th San Diego Region MBE Program was approved by your Agency effective July 28 , 1981. Section IV of our Regional MBE Program req].:ires an annual revision of our D1BE/WBE overall goals as of September 30 each year. On September 16, 1981 our b]BE Subcommittee met to review and update the Regional b]B Program overall goals. The Subcommittee found that over the past two months th Program has existed, only five of our twenty local agencies have been able to ad pt the Regional b]BE Program, and that no local agency project requiring an MBE pr gram has been submitted to CALTRANS. The Subcommittee in their review, there- fo e concluded that there is insufficient statistical data to revise our MBE ov rall goal at this time. Ba ed on this lack of .Program performance data. the Subcommittee made the followira_ re ommendations concerning the revision of the MBE overall goals for fiscal year 19 2. ftE 'ONII'~IENDATIONS 1. Extend the existing San Diego Region MBE overall So goal until September 30, 1982 at which time we will evaluate the statistical data generated on Regional MBE projects over the year to develop a new goal-for fiscal year 1983. 2. Revise the ti1BE/WBE ratio to approximately 5 to 1 in accordance with FHS9A suggestions and as supported by CALTRANS current MBE listings to 0.8$ minimum ]~TE3E •participation and 4.2s minimum h]BE participation for a total overall b]BE goal of S~. 3. Request CALTRANS by hlid August 1982, provide the MBE Subcommittee with the statistical information necessary to update the fiscal year 1983 ~]BE and WBE overall goals. -f ~~j~ i On Octob r 8, 1981 the FAU Advisory Committee accepted these recommendations and directed this letter be sent to you for subsequent transmittal to CALTRANS Head- quarters and FHS4A as appropriate. Should y u have any questions concerning our review or revision of the overall goals, p e/ase cont/act Ken Karnes at 565-5811. OrrJi~~ l ~i7racd d' R. J. MA SMAN, Chairman Federal id Urban Advisory Committee RJM:KCK• as cc: FA AC Members Mis SllbCVIL~iittE$ - ~" ~-• F ~, ~~ w~,U :, :' ~- _ ~ i t SAN DIEGO REGION o 0 o FEDERAL AID URBAN ADVISORY COMMITTEE MEMBER AGENCIES CITIES Ca gL58AD ,:HULA VIST COAONaDO TEL MAq EL CaJON ESCON OiDO IMPS g1aL dE CN La MESA LE \tON Gq0 E NanON4L Ct v April 1 , 1982 CCEANSIOE OWav S4N DIEGO SaN n.tAgCOS $aNTEE V 1574 CA LTg4N5 vCT08 $OMT09 COUNTY OF AN DIEGO Mr. Qilliam J. Robens Dev lopment Services Administrator Cit of Chula Vista P,O. Box 1087 Chu a Vista, CA 92012 Dean Mr. Robens, San Diego Region Minority Business Enterprise (MBE) Program App oximately eight months ago you received the attached package on the Region Minority Business Enterprise (MBE) Program. As explained previously, any local agency intending to finance a public works construction contract wit Federal Transportation Funds must have their own MBE program. The att ched Program as developed by the San Diego Region Federal Aid Urban Adv'sory Committee will meet this requirement for your City. To ate the County and twelve of the sixteen cities have adopted this regional pro ram. Your City is not amoung those who have adopted the Regional Program. You adoption of the Regional MBE Program is encouraged. On ?-arch 11, 1982 the FAUAC approved a recommendation to distribute an additional $1. million of Federal Aid Urban (FAU) Funds. As a result of this action, you City should receive an additional $64,187 of FAU funds. Your receipt of hose funds is dependent upon your approval of the Regional MBE Program or a s'milar program meeting the Federal U.S. DOT requirements. Sho~ld you have any ruestions concerning your City's involvement with the Reg onal h1BE Program., please contact Ken Karnes at 565-5811. Ver truly yours, ~ ~~. R. MASSPt11N, Director Dep rtment of Public ;~,orks RJC1 KCK:cas Attachments cc: ~ Dean Martin (CALTRANS) .~ ~~~~o - ~~ %ti, \ ~~ '~ :~ _ C~ j y , /~ ~~, ~' I ~,~