HomeMy WebLinkAboutReso 2002-132 - Fed Highway Admin Funding RESOLUTION NO. 2002- /3 2—
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING ADOPTING A REVISED DBE PROGRAM FOR THE
CITY OF REDDING AS IT PERTAINS TO FEDERAL HIGHWAY
ADMINISTRATION FUNDING AND SETTING AN OVERALL
GOAL AND METHODOLOGY FOR FEDERAL FISCAL YEAR
2002-03 OF 2.4 PERCENT
WHEREAS, as a condition of receiving Federal funds, local agencies are required to adopt a
program for the inclusion of those firms qualifying as a Disadvantaged Business Enterprise (DBE); and
WHEREAS, Federal regulations require that an annual goal and methodology be established
and actively pursued to ensure that DBE firms are encouraged to participate in the competitive bidding
process; and
WHEREAS, DBE requirements are set forth in Title 49, Part 26, of the Code of Federal
Regulations; and
WHEREAS, the U.S. Department of Transportation has entrusted Caltrans with local agency
oversight responsibility for DBE implementation;
NOW, THEREFORE, IT IS RESOLVED by the City Council that as it pertains to Federal
Highway Administration Funding the attached Caltrans-approved Disadvantaged Business Enterprise
(DBE) Program Annual Overall Goal and Methodology of 2.4% for Federal fiscal year 2002-03 be
adopted, ensuring a good faith effort to meet the established goal and ensure participation by small
business concerns owned and controlled by socially and economically disadvantaged individuals.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a
regular meeting of the City Council on the 3rd day offeptembe,r2002, by the following vote:
AYES: COUNCIL MEMBERS: Cibula, McGeorge, Pohlmeyer and Stegall
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Kight
ABSTAIN: COUNCIL MEMBERS: None
,Q, 4.,
PAT KIGHT, Mayor
Attest: Form Approved:
Apr
Connie Strohmayer, City rk David E. Tranberg,Acting Ci ttor y
CITY OF BEDDING
OVERALL ANNUAL DBE GOAL AND METHODOLOGY
FEDERAL FISCAL YEAR(FFY)2002/2003
I. Department of Transportation (DOT)-Assisted Contracting Program for FFY 2002/2003
The following represents City ofRedding projected FHWA funded contracts and expenditures by work
category and corresponding North American Industry Classification for FFY 2002/2003:
Work NAIC Estimated.........
Category Category Dollar-Value
Cypress Bridge Widening and Approaches-Project No. 5068(001)
Engineering&environmental consulting services 54133 &54162 $ 1,085,950
Shasta Yew Drive Extension-Project No. 5068(017)
Engineering &environmental consulting services 54133 &54162 $ 17,000
South Bonnyview Widening
Engineering&environmental consulting services 54133 &54162 $ 150,000
TOTAL $ 1,252,950
II. Goal Methodology
Step 1:Determination of a Base Figure*
To establish City of Redding's Base Figure of the relative availability of DBEs in relation to all comparable
firms available for City of Redding's FFY 2002/03 DOT-assisted contracting program, City of Redding has
elected to utilize the Caltrans DBE Directory of Certified Firms (filtered to represent only DBE firms within
City of Redding's relevant market area)for calculating the numerator and the U.S. Census Bureau's County
Business Patterns (CBP)within the same geographical market area to calculate the denominator, as follows:
For the numerator: Caltrans'DBE Directory of Firms in Shasta County
For the denominator: Census Bureau's CBP list of Firms in Shasta County
To derive the relative availability of DBEs,the number of DBEs available in Caltrans'DBE directory was divided
by the number of all comparable Census Bureau CBP firms available.
DBE Goal & Methodology Page 2
Application of this formula yielded the following baseline information:
Number of Ready, Willing and Able DBEs in NAIC Categories 54133 &54162=Base Figure =DBE's
Number of Ready,Willing and Able Firms in NAIC Categories 54133 &54162 CBP's
The Base Figure resulting from this calculation is as follows:
1 (DBE)
Base Figure= x 100
41 (CBE)
Base Figure=2.4%
Step 2:Adjusting the Base Figure
Upon establishing the Base Figure, City of Redding reviewed and assessed other known relevant evidence to
determine what additional adjustments, if any, were needed to narrowly tailor the Base Figure to the local
marketplace. Factors considered in determining the City of Redding's DBE participation that can be expected,
absent discrimination, included the following:
A. Current Capacity of DBEs Measured by Actual Attainments
The volume of work that DBEs performed in the City of Redding's DOT-assisted contracting program for Fiscal
Years 1997/98, 1998/99, 1999/00,2000/01,and 2001/02 based on actual DBE utilization paid report summaries,
is as follows:
Fiscal Dollars Paid to Dollars Paid DBE GOAL
Year Work Category Contractor DBE Firms Attainment%
1997-98 Highway, street, bridge, &
tunnel construction $ 6,904,926.00 $338,443.00 4.93%
1998-99 No projects
1999-00 No projects
2000-01 Engineering &environmental
consulting services $ 143,836.00 $44,159.00 30.7%
2001-02 Highway, street, bridge, &
tunnel construction $ 123,781.00 $65,052 5.3%
B. FY 2000-01 & FY 2001-02
In FY 2000-01 a City of Redding DOT-assisted contract was awarded in the amount of$2,3 84,115 with
federal funding in the amount of$1,371,000. This project was delayed until 2001-02. The documented DBE
participation is 1.55%of the total project. This project is ongoing, but all DBE payments were made in
2001/02;therefore, the attainment shown above is artificially high. With respect to actual expenditures in FY
2000-01,the City of Redding's total DBE attainment was 30.7%. While this percentage significantly
DBE Goal & Methodology Page 3
surpasses our overall annual goal of 2.4%, it is important to recognize that due to construction delays,the total
expenditure was for environmental consulting services only which represents less than 2%of our projected FY
2000-01 FHWA funded contracts and expenditures. Therefore, it is impractical to establish a realistic goal for
all components of work based solely upon engineering and environmental consulting services. As such, a 2.4%
overall goal seems appropriate.
D. Resultant Goal Adjustment
The impact of these factors, historical DBE participation, current and projected year DBE participation,
availability of DBE's in local market(consulting vs. construction), and the minority goal defined by the federal
government for the Redding Economic Area displays no need for goal adjustment for DBE participation in the
City of Redding's DOT-assisted contracts for FY 2002/03.
III Utilization of Race-neutral and Race-conscious Methods
Of the overall annual 2.4%goal for DBE participation, City of Redding projects meeting .6%of the goal
utilizing race-neutral methods, including making efforts to assure that bidding and contract requirements
facilitate participation by DBEs and other small businesses; encouraging prime contractors to subcontract
portions of the work that they might otherwise perform themselves; and providing technical assistance, and
other support services to facility consideration of DBEs and other small businesses. The remaining 1.8%of the
goal is anticipated to be accomplished through race-conscious measures, which includes establishing contract
specific goals on contracts with subcontracting possibilities, when needed,to meet City of Redding's overall
annual DBE goal.
IV Public Participation in Setting Overall Annual DBE Goals
In conformance with Public Participation Regulatory Requirements of 49 CFR Part 26.45 and Caltrans Local
Assistance Procedures Manual (LAPM)-Chapter 9,this goal analysis has been reviewed with minority, women,
local business chambers, community organizations, and other U.S. DOT recipients. These entities are
knowledgeable about the availability of disadvantaged and non-disadvantaged businesses and the effects of
discrimination on contracting opportunities for DBEs within City of Redding's marketplace.
Additionally, City of Redding will publish a Public Notice in general circulation media, announcing the City of
Redding Public Works Department's proposed overall annual goals for the FY 2002/03 contracts assisted by
DOT. Such Notice will inform the public that the proposed goals and their rationale are available for
inspection at the City of Redding during normal business hours for 30 days following the date of the Public
Notice and, that the City of Redding and FHWA will accept comments on the goals for 45 days from the date
of the Public Notice. The required public participation provision will be fully satisfied prior to submitting City
of Redding's DBE Program and Overall Annual DBE Goal for final review and approval.
CITY OF REDDING
DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM
I Definitions of Terms
The terms used in this program have the meanings defined in 49 CFR §26.5.
II Objectives /Policy Statement (§§26.1, 26.23)
The City of Redding (hereinafter referred to as CITY) has established a Disadvantaged Business
Enterprise (DBE) program in accordance with regulations of the U.S. Department of
Transportation (DOT), 49 CFR Part 26. The CITY has received Federal financial assistance
from the Federal Highway Administration (FHWA), and as a condition of receiving this
assistance, the CITY will sign an assurance that it will comply with 49 CFR Part 26.
It is the policy of the CITY to ensure that DBEs, as defined in part 26, have an equal opportunity
to receive and participate in DOT-assisted contracts. It is also our policy:
To ensure nondiscrimination in the award and administration of DOT-assisted contracts;
To create a level playing field on which DBEs can compete fairly for DOT-assisted
contracts;
To ensure that the DBE Program is narrowly tailored in accordance with applicable law;
To ensure that only firms that fully meet 49 CFR Part 26 eligibility standards are
permitted to participate as DBEs;
To help remove barriers to the participation of DBEs in DOT-assisted contracts; and
To assist the development of firms that can compete successfully in the market place
outside the DBE Program.
The City Engineer has been delegated as the DBE Liaison Officer. In that capacity, the City
Engineer is responsible for implementing all aspects of the DBE program. Implementation of
the DBE program is accorded the same priority as compliance with all other legal obligations
incurred by the CITY in its financial assistance agreements with the California Department of
Transportation (Caltrans).
The City Engineer has disseminated this policy statement to the City Council of the City of
Redding and all the components of our organization. We have distributed this statement to DBE
and non-DBE business communities that perform work for us on DOT-assisted contracts by
publishing this statement in general circulation, minority-focused and trade association
publications.
III Nondiscrimination (§26.7)
The CITY will never exclude any person from participation in, deny any person the benefits of,
or otherwise discriminate against anyone in connection with the award and performance of any
contract covered by 49 CFR Part 26 on the basis of race, color, sex, or national origin.
In administering its DBE program, the CITY will not, directly or through contractual or other
arrangements, use criteria or methods of administration that have the effect of defeating or
substantially impairing accomplishment of the objectives of the DBE program with respect to
individuals of a particular race, color, sex, or national origin.
IV DBE Program Updates (§26.21)
The CITY will continue to carry out this program until the CITY has established a new goal
setting methodology or until significant changes to this DBE Program are adopted. The CITY
will provide to Caltrans a proposed overall goal and goal setting methodology and other program
updates by June 1 of every year.
V Quotas (§26.43)
The CITY will not use quotas or set asides in any way in the administration of this DBE
program.
VI DBE Liaison Officer (DBELO) 026.45)
The CITY has designated the following individual as the DBE Liaison Officer, Bill Goodwin,
City Engineer, City of Redding, 777 Cypress Avenue, P.O. Box 496071, Redding, CA 96049,
telephone 530-225-4170, e-mail address bgoodwin@ci.redding.ca.us. In that capacity, the City
Engineer is responsible for implementing all aspects of the DBE program and ensuring that the
CITY complies with all provisions of 49 CFR Part 26. This is available on the Internet at
osdbuweb.dot.gov/main.cfm. The City Engineer has direct, independent access to the Director
of Development Services concerning DBE program matters. The DBELO has a staff of 28
employees who devote a portion of their time to the program. An organization chart displaying
the DBELO's position in the organization is found in Attachment A to this program.
The DBELO is responsible for developing, implementing and monitoring the DBE program, in
coordination other appropriate officials. Duties and responsibilities include the following:
1. Gathers and reports statistical data and other information as required.
2. Reviews third party contracts and purchase requisitions for compliance with this program.
3. Works with all departments to set overall annual goals.
4. Ensures that bid notices and requests for proposals are available to DBEs in a timely manner.
5. Identifies contracts and procurements so that DBE goals are included in solicitations (both
race-neutral methods and contract specific goals) and monitors results.
6. Analyzes the CITY's progress toward goal attainment and identifies ways to improve
progress.
7. Participates in pre-bid meetings.
8. Advises the CEO/governing body on DBE matters and achievement.
9. Chairs the DBE Advisory Committee.
10. Participates with the legal counsel and project director to determine contractor compliance
with good faith efforts.
City of Redding-DBE Program Page 2 of 17
11. Provides DBEs with information and assistance in preparing bids, obtaining bonding and
insurance.
12. Plans and participates in DBE training seminars.
13. Provides outreach to DBEs and community organizations to advise them of opportunities.
VII Federal Financial Assistance Agreement Assurance 026.13)
The CITY will sign the following assurance, applicable to all FHWA-assisted contracts and their
administration as part of the program supplement agreement for each project:
The recipient shall not discriminate on the basis of race, color, national origin, or sex in the
award and performance of any DOT-assisted contract or in the administration of its DBE
Program or the requirements of 49 CFR part 26. The recipient shall take all necessary and
reasonable steps under 49 CFR part 26 to ensure nondiscrimination in the award and
administration of DOT-assisted contracts. The recipient's DBE Program, as required by 49 CFR
part 26 and as approved by DOT, is incorporated by reference in this agreement.
Implementation of this program is a legal obligation and failure to carry out its terms shall be
treated as a violation of this agreement. Upon notification to the recipient of its failure to carry
out its approved program, the Department may impose sanctions as provided for under part 26
and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the
Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).
VIII DBE Financial Institutions
It is the policy of the CITY to investigate the full extent of services offered by financial
institutions owned and controlled by socially and economically disadvantaged individuals in the
community, to make reasonable efforts to use these institutions, and to encourage prime
contractors on DOT-assisted contracts to make use of these institutions.
Information on the availability of such institutions can be obtained from the DBE Liaison
Officer. The Caltrans Disadvantaged Business Enterprise Program may offer assistance to the
DBE Liaison Officer.
IX Directory (§26.31)
The CITY will refer interested persons to the DBE directory available from the Caltrans
Disadvantaged Business Enterprise Program website at www.dot.ca.gov/hq/bep.
X Overconcentration (§26.33)
The CITY has not identified any types of work in DOT-assisted contracts that have a
overconcentration of DBE participation. If in the future the CITY identifies the need to address
overconcentration, measures for addressing overconcentration will be submitted to the DLAE for
approval.
City of Redding-DBE Program Page 3 of 17
XI Business Development Programs (§26.35)
The CITY does not have a business development or mentor-protégé program. If the CITY
identifies the need for such a program in the future, the rationale for adopting such a program
and a comprehensive description of it will be submitted to the DLAE for approval.
XII Required Contract Clauses (§§26.13, 26.29)
Contract Assurance
The CITY ensures that the following clause is placed in every DOT-assisted contract and
subcontract:
The contractor or subcontractor shall not discriminate on the basis of race, color, national origin,
or sex in the performance of this contract. The contractor shall carry out applicable requirements
of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure by the
contractor to carry out these requirements is a material breach of this contract, which may result
in the termination of this contract or such other remedy as recipient deems appropriate.
Prompt Payment
The CITY ensures that the following clauses or equivalent will be included in each DOT-assisted
prime contract:
Satisfactory Performance
The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory
performance of its contract no later than 10 days from the receipt of each payment the prime
contractor receives from the CITY. Any delay or postponement of payment from the above
referenced time frame may occur only for good cause following written approval of the CITY.
This clause applies to both DBE and non-DBE subcontractors
Release of Retainage
The prime contractor agrees further to release retainage payments to each subcontractor within
30 days after the subcontractor's work is satisfactorily completed. Any delay or postponement
of payment from the above referenced time frame may occur only for good cause following
written approval of the CITY. This clause applies to both DBE and non-DBE subcontractors.
XIII Monitoring and Enforcement Mechanisms (§26.37)
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 in accordance with
the following:
City of Redding—DBE Program Page 4 of 17
After Contract Award
After the contract award the CITY will review the award documents for the portion of items each
DBE and first tier subcontractor will be performing and the dollar value of that work. With
these documents the RE/Contract Manager will be able to determine the work to be performed
by the DBEs or subcontractors listed.
Preconstruction Conference
A preconstruction conference will be scheduled between the RE and the contractor or their
representative to discuss the work each DBE subcontractor will perform.
Before work can begin on a subcontract, the local agency will require the contractor to submit a
completed "Subcontracting Request," Exhibit 16-B of the LAPM or equivalent. When the RE
receives the completed form it will be checked for agreement of the first tier subcontractors and
DBEs. The RE will not approve the request when it identifies someone other than the DBE or
first tier subcontractor listed in the previously completed "Local Agency Bidder DBE
Information," Exhibit 15-G. The "Subcontracting Request" will not be approved until any
discrepancies are resolved. If an issue cannot be resolved at that time, or there is some other
concern, the RE will require the contractor to eliminate the subcontractor in question before
signing the subcontracting request. A change in the DBE or first tier subcontractor may be
addressed during a substitution process at a later date.
Suppliers, vendors, or manufacturers listed on the "Local Agency Bidder DBE Information" will
be compared to those listed in the completed Exhibit 16-I of the LAPM or equivalent.
Differences must be resolved by either making corrections or requesting a substitution.
Substitutions will be subject to the Subletting and Subcontracting Fair Practices Act (FPA).
Local agencies will require contractors to adhere to the provisions within Subletting and
Subcontracting Fair Practices Act (State Law) Sections 4100-4144. FPA requires the contractor
to list all subcontractors in excess of one half of one percent (0.5%) of the contractor's total bid
or $10,000, whichever is greater. The statute is designed to prevent bid shopping by contractors.
The FPA explains that a contractor may not substitute a subcontractor listed in the original bid
except with the approval of the awarding authority.
The RE will give the contractor a blank Exhibit 17-F, "Final Report Utilization of Disadvantaged
Business Enterprises, First Tier Subcontractors" and will explain to them that the document will
be required at the end of the project, for which payment can be withheld, in conformance with
the contract.
Construction Contract Monitoring
The RE will ensure that the RE's staff (inspectors) know what items of work each DBE is
responsible for performing. Inspectors will notify the RE immediately of apparent violations.
City of Redding-DBE Program D- ,
•
•
When a firm other than the listed DBE subcontractor is found performing the work, the RE will
notify the contractor of the apparent discrepancy and potential loss of payment. Based on the
contractor's response, the RE will take appropriate action: The DBE Liaison Officer will
perform a preliminary investigation to identify any potential issues related to the DBE
subcontractor performing a commercially useful function. Any substantive issues will be
forwarded to the Caltrans Disadvantaged Business Enterprise Program. If the contractor fails to
adequately explain why there is a discrepancy, payment for the work will be withheld and a
letter will be sent to the contractor referencing the applicable specification violation and the
required withholding of payment.
If the contract requires the submittal of a monthly truck document, the contractor will be
required to submit documentation to the RE showing the owner's name; California Highway
Patrol CA number; and the DBE certification number of the owner of the truck for each truck
used during that month for which DBE participation will be claimed. The trucks will be listed
by California Highway Patrol CA number in the daily diary or on a separate piece of paper for
documentation. The numbers are checked by inspectors regularly to confirm compliance.
Providing evidence of DBE payment is the responsibility of the contractor.
Substitution
When a DBE substitution is requested, the RE/Contract Manager will request a letter from the
contractor explaining why substitution is needed. The RE/Contract Manager must review the
letter to be sure names and addresses are shown, dollar values are included, and reason for the
request is explained. If the RE/Contract Manager agrees to the substitution, the RE/Contract
Manager will notify, in writing, the DBE subcontractor regarding the proposed substitution and
procedure for written objection from the DBE subcontractor in accordance with the Subletting
and Subcontracting Fair Practices Act. If the contractor is not meeting the contract goal with this
substitution, the contractor must provide the required good faith effort to the RE/Contract
Manager for local agency consideration.
If there is any doubt in the RE/Contract Manager's mind regarding the requested substitution, the
RE/Contract Manager may contact the DLAE for assistance and direction.
Record Keeping_and Final Report Utilization of Disadvantaged Business Enterprises
The contractor shall maintain records showing the name and address of each first-tier
subcontractor. The records shall also show:
1. The name and business address, regardless of tier, of every DBE subcontractor, DBE vendor
of materials and DBE trucking company.
2. The date of payment and the total dollar figure paid to each of the firms.
3. The DBE prime contractor shall also show the date of work performed by their own forces
along with the corresponding dollar value of the work claimed toward DBE goals.
City of Redding—DBE Program PAOP A of 11
When a contract has been completed the contractor will provide a summary of the records stated
above. The DBE utilization information will be documented on Exhibit 17-F and will be
submitted to the DLAE attached to the Report of Expenditures. The RE will compare the
completed Exhibit 17-F to the contractor's completed Exhibit 15-G and, if applicable, to the
completed Exhibit 16-B. The DBEs shown on the completed Exhibit 17-F should be the same as
those originally listed unless an authorized substitution was allowed, or the contractor used more
DBEs and they were added. The dollar amount should reflect any changes made in planned
work done by the DBE. The contractor will be required to explain in writing why the names of
the subcontractors, the work items or dollar figures are different from what was originally shown
on the completed Exhibit 15-G when:
• There have been no changes made by the RE.
• The contractor has not provided a sufficient explanation in the comments section of the
completed Exhibit 17-F.
The explanation will be attached to the completed Exhibit 17-F for submittal. The RE will file
this in the project records.
The local agency's Liaison Officer will keep track of the DBE certification status on the Internet
at www.dot.ca.gov/hq/bep and keep the RE informed of changes that affect the contract. The RE
will require the contractor to act in accordance with existing contractual commitments regardless
of decertification.
The DLAE will use the PS&E checklist to monitor the CITY's commitment to require bidders
list information to be submitted to the CITY from the awarded prime and subcontractors as a
means to develop a bidders list. This monitoring will only take place if the bidders list
information is required to be submitted as stipulated in the special provisions.
The CITY will bring to the attention of the DOT through the DLAE any false, fraudulent, or
dishonest conduct in connection with the program, so that DOT can take the steps (e.g., referral
to the Department of Justice for criminal prosecution, referral to the DOT Inspector General,
action under suspension and debarment or Program Fraud and Civil Penalties rules) provided in
§26.109. The CITY also will consider similar action under our own legal authorities, including
responsibility determinations in future contracts.
XIV Overall Goals (§26.45)
Amount of Goal
The CITY's overall goal for the Federal fiscal year FY 2002/2003 is the following: 2.4% of the
Federal financial assistance in FHWA-assisted contracts. This overall goal is broken down into
.6% race-neutral and 1.8% race-conscious components.
City of Redding-DBE Program Page 7 of 17
Methodology
In conjunction with the preparation and adoption of the budget for each fiscal year, the City
Engineer, in consultation with the Department of Development Services, will conduct an
analysis of the projected numbers, types of work, and dollar amounts of contracting
opportunities that will be funded, in whole or in part, by U.S. DOT, FHWA, financial assistance
for that fiscal year.
Pursuant to 49 CFR 26.45, the CITY will develop a base figure based upon the relative
availability of DBEs in relation to all comparable firms available for the CITY's DOT-assisted
contracting program. The CITY will utilize the Caltrans DBE Directory of Certified Firms
(filtered to represent only DBE firms within the CITY's relevant market area) for calculating the
numerator and the U. S. Census Bureau County Business Patterns (CBP) within the same
geographical market area to calculate the denominator. To derive at the relative availability of
DBEs, the number of DBEs available in Caltrans' DBE directory will be divided by the number
of all comparable CBP firms available.
Upon establishing the Base Figure, the CITY will review and assess other known relevant
evidence to determine what additional adjustments, if any, will be needed to narrowly tailor the
Base Figure to the local marketplace. Factors to be considered in determining the City's DBE
participation that can be expected, absent discrimination, may include but not be limited to the
following:
• Current capacity of DBEs measured by actual attainments over the prior three year period
• Current year actual DBE goal attainment
• Utilization of goals approved by another agency
Breakout of Estimated Race-Neutral and Race-Conscious Participation
Of the overall annual goal for DBE participation, the CITY projects meeting 25% of the goal
utilizing race-neutral methods, including making efforts to assure that bidding and contract
requirements facilitate participation by DBEs and other small businesses; encouraging prime
contractors to subcontract portions of the work that they might otherwise perform themselves;
and providing technical assistance, and other support services to facility consideration of DBEs
and other small businesses. The remaining 75% of the goal is anticipated to be accomplished
through race-conscious measures, which includes establishing contact specific goals on contracts
with subcontracting possibilities, when needed, to meet the CITY's overall annual DBE goal.
Process
Starting with the Federal fiscal year 2001, the amount of overall goal, the method to calculate the
goal, and the breakout of estimated race-neutral and race-conscious participation will be required
annually by June 1 in advance of the Federal fiscal year beginning October 1 for FHWA-assisted
contracts. Submittals will be to the Caltrans' DLAE. An exception to this will be if FTA or
FAA recipients are required by FTA or FAA to submit the annual information to them or a
designee by another date. FHWA recipients will follow this process:
City of Redding—DBE Program P.R. sa .,f 17
Once the DLAE has responded with preliminary comments and the comments have been
incorporated into the draft overall goal information, the CITY will publish a notice of the
proposed overall goal, informing the public that the proposed goal and its rationale are available
for inspection during normal business hours at the CITY's principal office for 30 days following
the date of the notice, and informing the public that the CITY comments will be accepted on the
goals for 45 days following the date of the notice. Advertisements in newspapers, minority focus
media, trade publications, and web sites will be the normal media to accomplish this effort. The
notice will include addresses to which comments may be sent and addresses (including offices
and websites) where the proposal may be reviewed.
The overall goal resubmission to the Caltrans DLAE, will include a summary of information and
comments received during this public participation process and CITY's responses. This will be
due by September 1 to the Caltrans DLAE. The DLAE will have a month to make a final review
so the CITY may begin using the overall goal on October 1 of each year.
If there is a design build please refer to Appendix B of this Model DBE Program.
XV Contract Goals (§26.51)
The CITY will use contract goals to meet any portion of the overall goal the CITY does not
project being able to meet by the use of race-neutral means. Contract goals are established so
that, over the period to which the overall goal applies, they will cumulatively result in meeting
any portion of the overall goal that is not projected to be met through the use of race-neutral
means.
Contract goals will be established only on those DOT-assisted contracts that have subcontracting
possibilities. Contract goals need not be established on every such contract, and the size of
contract goals will be adapted to the circumstances of each such contract (e.g., type and location
of work, availability of DBEs to perform the particular type of work). The contract work items
will be compared with eligible DBE contractors willing to work on the project. A determination
will also be made to decide which items are likely to be performed by the prime contractor and
which ones are likely to be performed by the subcontractor(s). The goal will then be
incorporated into the contract documents. Contract goals will be expressed as a percentage of
the total amount of a DOT-assisted contract.
XVI Transit Vehicle Manufacturers (§26.49)
If DOT-assisted contracts will include transit vehicle procurements, the CITY will require each
transit vehicle manufacturer, as a condition of being authorized to bid or propose on transit
vehicle procurements, to certify that it has complied with the requirements of 49 CFR Part 26,
Section 49. The CITY will direct the transit vehicle manufacturer to the subject requirements
located on the Internet at http://osdbuweb.dot.gov/programs/dbe/dbe.htm.
City of Redding-DBE Program Pnap 9 of 17
XVII Good Faith Efforts 026.53)
Information to be Submitted
The CITY treats bidders'/offerors' compliance with good faith effort requirements as a matter of
responsiveness. A responsive proposal is meeting all the requirements of the advertisement and
solicitation.
Each solicitation for which a contract goal has been established will require the bidders/offerors
to submit the following information to the City Engineer, City of Redding, 777 Cypress Avenue,
P.O. Box 496071, Redding, CA 96001 no later than 4:00 p.m. on or before the fourth day, not
including Saturdays, Sundays and legal holidays, following bid opening:
1. The names and addresses of known DBE firms that will participate in the contract;
2. A description of the work that each DBE will perform:
3. The dollar amount of the participation of each DBE firm participation
4. Written and signed documentation of commitment to use a DBE subcontractor whose
participation it submits to meet a contract goal;
5. Written and signed confirmation from the DBE that it is participating in the contract as
provided in the prime contractor's commitment; and
6. If the contract goal is not met, evidence of good faith efforts.
Demonstration of Good Faith Efforts
The obligation of the bidder/offeror is to make good faith efforts. The bidder/offeror can
demonstrate that it has done so either by meeting the contract goal or documenting good faith
efforts. Examples of good faith efforts are found in Appendix A to part 26 which is attached.
The following personnel are responsible for determining whether a bidder/offeror who has not
met the contract goal has documented sufficient good faith efforts to be regarded as responsive:
City Engineer and his/her support staff.
The CITY will ensure that all information is complete and accurate and adequately documents
the bidder/offeror's good faith efforts before a commitment to the performance of the contract by
the bidder/offeror is made.
Administrative Reconsideration
Within 10 days of being informed by the CITY that it is not responsive because it has not
documented sufficient good faith efforts, a bidder/offeror may request administrative
reconsideration. Bidder/offerors should make this request in writing to the following
reconsideration official: Jim Hamilton, Director of Development Services, 777 Cypress Avenue,
P.O. Box 496071, Redding, CA 96049, telephone 530-225-4020, e-mail
jhamilton@ci.redding.ca.us. The reconsideration official will not have played any role in the
original determination that the bidder/offeror did not make or document sufficient good faith
efforts.
City of Redding—DBE Program Page 10 of 17
As part of this reconsideration, the bidder/offeror will have the opportunity to provide written
documentation or argument concerning the issue of whether it met the goal or made adequate
good faith efforts to do so. The bidder/offeror will have the opportunity to meet in person with
the reconsideration official to discuss the issue of whether it met the goal or made adequate good
faith efforts to do so. The CITY will send the bidder/offeror a written decision on
reconsideration, explaining the basis for finding that the bidder did or did not meet the goal or
make adequate good faith efforts to do so. The result of the reconsideration process is not
administratively appealable to Caltrans, FHWA or the DOT.
Good Faith Efforts when a DBE is Replaced on a Contract
The CITY will require a contractor to make good faith efforts to replace a DBE that is
terminated or has otherwise failed to complete its work on a contract with another certified DBE,
to the extent needed to meet the contract goal. The prime contractor is required to notify the RE
immediately of the DBE's inability or unwillingness to perform and provide reasonable
documentation.
In this situation, the prime contractor will be required to obtain the CITY's prior approval of the
substitute DBE and to provide copies of new or amended subcontracts, or documentation of
good faith efforts. If the contractor fails or refuses to comply in the time specified, the CITY's
contracting office will issue an order stopping all or part of payment/work until satisfactory
action has been taken. If the contractor still fails to comply, the contracting officer may issue a
termination for default proceeding.
XVIII Counting DBE Participation 026.55)
The CITY will count DBE participation toward overall and contract goals as provided in the
contract specifications for the prime contractor, subcontractor, joint venture partner with prime
or subcontractor, or vendor of material or supplies. See the Caltrans' Sample Boiler Plate
Contract Documents previously mentioned. Also, refer to XIII. "After Contract Award."
XIX Certification (§26.83(a))
The CITY ensures that only DBE firms currently certified on the Caltrans' directory will
participate as DBEs in our program.
XX Information Collection and Reporting
Bidders List
The CITY will create and maintain a bidders list, consisting of information about all DBE and
non-DBE firms that bid or quote on its DOT-assisted contracts. The bidders list will include the
name, address, DBE/non-DBE status, age, and annual gross receipts of firms.
City of Redding-DBE Program Page 11 of 17
Monitoring Payments to DBEs
Prime contractors are required to maintain records and documents of payments to DBEs for three
years following the performance of the contract. These records will be made available for
inspection upon request by any authorized representative of the CITY, Caltrans, FHWA, or
DOT. This reporting requirement also extends to any certified DBE subcontractor.
Payments to DBE subcontractors will be reviewed by the CITY to ensure that the actual amount
paid to DBE subcontractors equals or exceeds the dollar amounts stated in the schedule of DBE
participation.
Reporting to Caltrans
The CITY - Final utilization of DBE participation will be reported to the DLAE using Exhibit
17-F of the Caltrans' LAPM.
Confidentiality
The CITY will safeguard from disclosure to third parties information that may reasonably be
regarded as confidential business information, consistent with Federal, state, and local laws.
Pat Kight, Mayor Date:
This Disadvantaged Business Enterprises Program is accepted by:
[Signature of DLAE] Date:
City of Redding—DBE Program p,,,,. ,1 „r ,^1
APPENDIX A TO PART 26--GUIDANCE CONCERNING GOOD FAITH EFFORTS
I. When, as a recipient, you establish a contract goal on a DOT-assisted contract, a bidder must,
in order to be responsible and/or responsive, make good faith efforts to meet the goal. The bidder
can meet this requirement in either of two ways. First, the bidder can meet the goal, documenting
commitments for participation by DBE firms sufficient for this purpose. Second, even if it
doesn't meet the goal, the bidder can document adequate good faith efforts. This means that the
bidder must show that it took all necessary and reasonable steps to achieve a DBE goal or other
requirement of this part which, by their scope, intensity, and appropriateness to the objective,
could reasonably be expected to obtain sufficient DBE participation, even if they were not fully
successful.
II. In any situation in which you have established a contract goal, part 26 requires you to use the
good faith efforts mechanism of this part. As a recipient, it is up to you to make a fair and
reasonable judgment whether a bidder that did not meet the goal made adequate good faith
efforts. It is important for you to consider the quality, quantity, and intensity of the different
kinds of efforts that the bidder has made. The efforts employed by the bidder should be those
that one could reasonably expect a bidder to take if the bidder were actively and aggressively
trying to obtain DBE participation sufficient to meet the DBE contract goal. Mere pm forma
efforts are not good faith efforts to meet the DBE contract requirements. We emphasize,
however, that your determination concerning the sufficiency of the firm's good faith efforts is a
judgment call: meeting quantitative formulas is not required.
III. The Department also strongly cautions you against requiring that a bidder meet a contract
goal (i.e., obtain a specified amount of DBE participation) in order to be awarded a contract, even
though the bidder makes an adequate good faith efforts showing. This rule specifically prohibits
you from ignoring bona fide good faith efforts.
IV. The following is a list of types of actions which you should consider as part of the bidder's
good faith efforts to obtain DBE participation. It is not intended to be a mandatory checklist, nor
is it intended to be exclusive or exhaustive. Other factors or types of efforts may be relevant in
appropriate cases.
A. Soliciting through all reasonable and available means(e.g. attendance at pre-bid
meetings,advertising and/or written notices)the interest of all certified DBEs who have
the capability to perform the work of the contract. The bidder must solicit this interest
within sufficient time to allow the DBEs to respond to the solicitation. The bidder must
determine with certainty if the DBEs are interested by taking appropriate steps to follow
up initial solicitations.
B. Selecting portions of the work to be performed by DBEs in order to increase the
likelihood that the DBE goals will be achieved. This includes, where appropriate,
breaking out contract work items into economically feasible units to facilitate DBE
participation, even when the prime contractor might otherwise prefer to perform these
work items with its own forces.
C. Providing interested DBEs with adequate information about the plans, specifications,
and requirements of the contract in a timely manner to assist them in responding to a
solicitation.
City of Redding- DBE Proeram D,.,.,, 1'2 -r ,
D. (1) Negotiating in good faith with interested DBEs. It is the bidder's responsibility to
make a portion of the work available to DBE subcontractors and suppliers and to select
those portions of the work or material needs consistent with the available DBE
subcontractors and suppliers, so as to facilitate DBE participation. Evidence of such
negotiation includes the names, addresses, and telephone numbers of DBEs that were
considered; a description of the information provided regarding the plans and
specifications for the work selected for subcontracting; and evidence as to why additional
agreements could not be reached for DBEs to perform the work.
(2) A bidder using good business judgment would consider a number of factors in
negotiating with subcontractors, including DBE subcontractors, and would take a firm's
price and capabilities as well as contract goals into consideration. However, the fact that
there may be some additional costs involved in fording and using DBEs is not in itself
sufficient reason for a bidder's failure to meet the contract DBE goal, as long as such
costs are reasonable. Also, the ability or desire of a prime contractor to perform the work
of a contract with its own organization does not relieve the bidder of the responsibility to
make good faith efforts. Prime contractors are not, however, required to accept higher
quotes from DBEs if the price difference is excessive or unreasonable.
E. Not rejecting DBEs as being unqualified without sound reasons based on a thorough
investigation of their capabilities. The contractor's standing within its industry,
membership in specific groups, organizations, or associations and political or social
affiliations (for example union vs. non-union employee status) are not legitimate causes
for the rejection or non-solicitation of bids in the contractor's efforts to meet the project
goal.
F. Making efforts to assist interested DBEs in obtaining bonding, lines of credit, or
insurance as required by the recipient or contractor.
G. Making efforts to assist interested DBEs in obtaining necessary equipment, supplies,
materials,or related assistance or services.
H. Effectively using the services of available minority/women community organizations;
minority/women contractors' groups; local, state, and Federal minority/women business
assistance offices; and other organizations as allowed on a case-by-case basis to provide
assistance in the recruitment and placement of DBEs.
V. In determining whether a bidder has made good faith efforts, you may take into account the
performance of other bidders in meeting the contract. For example, when the apparent successful bidder
fails to meet the contract goal, but others meet it, you may reasonably raise the question of whether, with
additional reasonable efforts, the apparent successful bidder could have met the goal. If the apparent
successful bidder fails to meet the goal, but meets or exceeds the average DBE participation obtained by
other bidders, you may view this, in conjunction with other factors, as evidence of the apparent successful
bidder having made good faith efforts.
City of Redding—DBE Program PA4P. 14 of 17
APPENDIX B -- TO BE USED FOR DESIGN-BUILD CONTRACTS
The following are hereby incorporated into the Agency's Disadvantaged Business Enterprise
(DBE) Program:
II Objectives /Policy Statement (§§26.1, 26.23)
At the end of the first paragraph, add the following:
The Agency recognizes that certain modifications are necessary to adapt the
program for use in connection with design-build contracts, and has therefore established
certain procedures applicable to design-build DBE contracts under the DBE Program. Public
Contract Code Section 4109 requires subcontractors to be identified by the prime contractor
for the subletting or subcontracting of any portion of the work in excess of one-half of 1
percent of the prime contractor's total bid Exceptions are only in the cases of public
emergency or necessity, and then only after a finding reduced to writing as a public record of
the awarding authority setting forth the facts constituting the emergency or necessity. The
written public record of the awarding authority/Agency as to either emergency or necessity is
attached hereto (See Appendix C for sample).
XIII Monitoring and Enforcement Mechanisms (§26.37)
At the end of the first paragraph below "After Contract Award", add the following
paragraph:
After Design-Build Contract Award
As described in the Section entitled "GOOD FAITH EFFORTS" below, each proposer for an
Agency design-build contract will be required to submit a DBE Performance Plan as part of a
responsive proposal Following award of a design-build contract and during both the design
and construction portions of the project, the design-build contractor will be required to submit
documentation, in the form of progress reports described below, to show that the design-build
contractor is meeting the contract goal for the project, or if the goal is not being met, the
design-build contractor must submit satisfactory evidence that it has made good faith efforts,
in accordance with that Section, to meet the goal Evidence of good faith efforts, as described
in 49 CFR Part 26 Section 26.5349 and Appendix A, will be monitored by the Agency
throughout the duration of the design-build project.
At the end of the first paragraph below "Preconstruction Conference", add the following
sentence:
The contractor will promptly provide the Agency with the information required
by the form entitled "Local Agency DBE Information" upon selection of any DBE or other
subcontractor not previously identified by the design-build contractor. During the course of
the contract, differences must be explained and resolved by either making corrections or
requesting a substitution.
City of Redding- DBE Program Page 15 of 17
•
At the end of the fourth paragraph below "Construction Contract Monitoring", add the
following paragraph:
The contractor will provide DBE Progress Reports to the Agency with each
invoice and will provide an annual report on or before August 1 of each year of the design-
build contract Each report must also include a narrative summary stating whether the
contractor is on target with respect to the DBE goal set forth in the design-build contract,
whether the goal has been exceeded (stating the amount of the excess), or whether the
contractor is behind target (stating the amount of the deficit).
XVII Good Faith Efforts (§26.53)
At the end of the third paragraph below "Information to be Submitted", add the following
items:
Z A DBE Performance Plan containing a detailed description of the design-build
contractor's planned methodology for achieving the DBE goal stated in the contract,
including a description of the good faith efforts the design-build contractor
intends to undertake to achieve that goal
8. A design-build proposal must also include an affidavit that the proposer will either attain
the DBE goals for the design-build contract or will exercise good faith efforts to do so.
At the end of the first paragraph below "Demonstration of Good Faith Efforts", add the
following sentence:
If it is a design-build contract, each contractor proposing will be required to submit a
DBE Performance Plan as part of a responsive proposal and good faith efforts.
Pat Kight, Mayor Date:
This Disadvantaged Business Enterprise Program for design-build contracts is accepted by:
[Signature of DLAE] Date:
City of Redding—DBE Program Page 16 of 17
APPENDIX C
RESOLUTION OF THE (Agency Name) REGARDING NECESSITY
OR EMERGENCY FOR SUBSEQUENT SUBCONTRACTOR
IDENTIFICATION AND SELECTION FOR DESIGN-BUILD
CONTRACTS
(REQUIRED BY PUBLIC CONTRACT CODE SECTION 4109
ENTITLED "Public Emergency Grounds For Change")
A. EXPLANATION OF PUBLIC NECESSITY OR EMERGENCY:
B. FACTS CONSTITUTING THE PUBLIC NECESSITY OR
EMERGENCY:
C. FINDINGS:
D. RESOLUTION FOR SUBSEQUENT IDENTIFICATION OF
SUBCONTRACTORS:
E. ADOPTION OF PROCEDURE TO BE USED BY DESIGN-BUILD
CONTRACTOR FOR SUBSEQUENT IDENTIFICATION OF
SUBCONTRACTORS:
F. CERTIFICATE OF SECRETARY
1. MOTION MADE AND DATE
2. VOTING RESULTS
3. SIGNATURES:
(a) (Secretary)
(b) (Chairperson)
City of Redding-DBE Program Page 17 of 17
0
OI
O
m
C
W
r—Th r—'1 rTh
`a> 'o
r o3
p c OON
5 ^ > f=Z QyEF
Um
z.
85 6
U >.
F tmU
eL
F m W ar U
_ Fcn
m cW
oo
^LL
Zo
'al — 2 ami
3 '> c r—.,s, r— ,‘ r—.‘
U o c EnL
N m c co
W y m
U
61 C'1] cl m y
.3y
5 Q U U fl
a Q P L >• O03 � c J d N
`� � � YY-' YYY
U r:7—) „, /
.§-ci Fr C/]
tri 00 .
��+ C�.�y E f--1 r-1 �1
• V gli
O ` 7 Y cC
Ta
V U m
To mc ai m
E U
V C.) Nn — 0) U
O1O m m C
S O d
m am nu”) CD
C a N 8-
c
c °) c p L .
CO3mZpp � f — n C —
m
' FN�0w _ _ `T' YYY
w 0u)� o . D U•v) c m Q U
U `....—J
m
c
w c r c)
„..........s, L 8 L r wLU w
U 8 F- U U _ N F
cF c U m 0) S
CD 0
td
c` N C U C W H
Y U E Q W No -0 E W W E N w ,- E N m
>, - � � N E m 8QW
c a)U /— N '.j I"' (Cp C ~ C 2 p ~ O C
m OI F > l0
U C t� W LL @ C� N U
2 N
Q Pc15 cm J N O U 2 J p ~>
C cF >o
CL yW m CO
a U UO Lc �� d O U c U
0 Q U ` o J ` p / t