HomeMy WebLinkAboutAgenda Statement 1982/05/18 Item 10COUNCIL AGENDA STATEMENT
Items 10
Meeting Date 5-18-82
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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
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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
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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
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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.
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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
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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.
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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
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SAN DI E GO REGION o 0 o FEDERAL AID U
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October 8, 1981
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E. A. Kubichek N ' ~ ~' C~
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P. Box 81406 •
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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.
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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.
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R. J. MA SMAN, Chairman
Federal id Urban Advisory Committee
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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)
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