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Resolution No. 7942t r' a 0 i . 1 2 3 4 5 6 7 1 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 7942 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND ADOPTING A DISADVANTAGED BUSINESS ENTERPRISE PROGRAM PURSUANT TO PART 26 OF TITLE 49 OF THE CODE OF FEDERAL REGULATIONS WHEREAS, on June 29, 1999, the City Council of the City of Vernon approved Resolution No. 7364 adopting a Disadvantaged Business Enterprise Program ("DBE") that established a DBE goal of thirteen percent (130) for the period October 1, 1998 to September 30, 1999; land WHEREAS, in accordance with the DBE Program, the Director of Community Services and Water is the DBE Liaison Officer for the City lof Vernon; and WHEREAS, the City of Vernon presently participates, and plans to participate in the future, in program activities funded wholly or in part by Federal funds; and WHEREAS, all recipients of Federal Highway Administration Federal funds need to adopt a DBE Program and establish their own DBE goal before any funding can be released; and WHEREAS, the City of Vernon has applied for Federal financial assistance from the U.S. Department of Transportation, and as a condition of receiving this assistance, the City of Vernon needs to comply with 49 CFR Part 26; and WHEREAS, on November 19, 2001, Samuel Kevin Wilson, the Director of Community Services & Water submitted Vernon's draft DBE Goal and methodology for the Federal Fiscal Year 2001/2002 (October 1, 2001-September 30, 2002) for the DBE Program to the California Department of Transportation ("Caltrans") for its review 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 and approval, and said goal and methodology for the Program was approved by Caltrans on December 3, 2001; and WHEREAS, on February 8, 2002, the City Clerk published a Notice in the Metropolitan News -Enterprise, which was determined to be a newspaper of general circulation nearest to the City most appropriate for this purpose; and WHEREAS, a copy of the Declaration of Publication is attached hereto as Exhibit "A" and made a part hereof, which indicated that documentation used in the determination of the proposed goal for Fiscal Year 2001/2002 provided for herein has been available for inspection and comment by the public; and WHEREAS, the City of Vernon agrees to adopt a DBE Program for Federal Highway Administration Assisted Contracts and establish its own DBE goal. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of. the City of Vernon further finds that all persons have had the opportunity to be heard or to file written comments to the proposed goal. SECTION 3: The City Council of the City of Vernon hereby approves and adopts the City of Vernon Department of Community Services Disadvantaged Business Enterprise (DBE) Program for Federal Highway Administration Assisted Contracts, a copy of which is attached hereto as Exhibit "B" and made a part hereof. - 2 - r , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 4: The City Council of the City of Vernon hereby authorizes the Director of Community Services and Water as the DBE Liaison Officer to execute any and all documents necessary for the purpose of securing DBE Program funds and to implement and carry out the purposes specified in the DBE Program for, and on behalf of, the City of Vernon. SECTION 5: The City Council of the City of Vernon hereby directs the Director of Community Services & Water, or his designee, to send a copy of this resolution to: State of California - Business and Transportation Agency Department of Transportation Attn. Satish Chander, Chief District 7, Office of Local Assistance and Alameda Corridors 700 N. Alameda Street, 4th Floor Los Angeles, CA 90012 SECTION 6: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 3rd day of April, 2002. ATTEST: BRUCE V. MALKENHORST, City Clerk EONIS C. MAL URG, Ma or - 3 - i 1 STATE OF CALIFORNIA ) 2 ) ss COUNTY OF LOS ANGELES ) 3 4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do 5 hereby certify that the foregoing Resolution, being Resolution No. 6 7942, was duly adopted by the City Council of the City of Vernon at a 7 regular meeting of the City Council duly held on Wednesday, April 3, 8 2002, and thereafter was duly signed by the Mayor of the City of 9 Vernon. 10 11�`--------- BRUCE V. MALKENHORST, City Clerk 12 13 (SEAL) 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 - EXHIBIT 0 DECLARATION OF PUBLICATION STATE OF CALIFORNIA COUNTY OF LOS ANGELES CALUDIA ARELLANO CITY OF VERNON CONflviUNITY SERVICES & WATER DPT 4305 SANTA FE AVE VERNON CA 90058 NOTICE DBE GOAL The undersigned says: I am over the age of 18 years and a citizen of the United States. I am not a party to and have no interest in this matter. I am a principal clerk of the N ETROPOLI- TAN NEWS -ENTERPRISE, a newspaper of general cir- culation in the City of Los Angeles, the Judicial District of Los Angeles, the County of Los Angeles, and the State of California, as adjudicated in Los Angeles Superior Court Case No. 601165. The notice, a printed copy of which appears hereon, was published on the following date(s): Feb 8, 2002 I declare under- penalty of perjury that the foregoing is true and correct. Executed at Los Angeles, California on 02/08/02. 7i Sign METROPOLITAN NEWS -ENTERPRISE 210 S. Spring St. Los Angeles, CA 90012 Phone: 213-346-0033 Fax: 213-687-3886 Cust. Num.: 011482 Control Num.: 639581 Cust. Ref. Num.: DBE GOAL PUBLIC NOTICE The City of Vernon has set an annual goal for Fiscal Year 2001t2002 of 13% for the utilization of Disadvantaged Business Enterprises (DBE) in Federal -Aid Highway projects. The goal establishment procedure will be available for public inspection for a period of 30days at City Hall. Vernon City Hall Community Services Department 4305Santa Fe Avenue Vernon , CA 9W58 Attn: Kean Wilson Comments at this goal will be re- ceived in the above mentioned office and by the United States Department of Transportation. Washington. D.C. for a period of 45 days from the date of this notice. CN639581 OBE GOAL Feb 8. 2002 Page 1 of 1 EXHIBIT CITY OF VERNON DEPARTMENT OF COMMUNITY SERVICES OF ilG FOUMflE s lq'ELY DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM MI FEDERAL HIGHWAY ADMINISTRATION ASSISTED CONTRACTS This Program is in accordance with Title 49 of the Code of Federal Regulations Part 26 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM CITY OF VERNON, Department of Community Services & Water 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 Vernon 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 of Vernon has applied for Federal financial assistance from the DOT, and as a condition of receiving this assistance, the City of Vernon will sign an assurance that it will comply with 49 CFR Part 26. It is the policy of the City of Vernon 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: 1. To ensure nondiscrimination in the award and administration of DOT -assisted contracts; 2. To create a level playing field on which DBEs can compete fairly for DOT -assisted contracts; 3. To ensure that the DBE Program is narrowly tailored in accordance with applicable law; 4. To ensure that only firms that fully meet 49 CFR Part 26 eligibility standards are permitted to participate as DBEs; 5. To help remove barriers to the participation of DBEs in DOT -assisted contracts; and 6. To assist the development of firms that can compete successfully in the market place outside the DBE Program. The Director of Community Services has been delegated as the DBE Liaison Officer. In that capacity, Mr. Kevin Wilson 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 of Vernon in its financial assistance agreements with the California Department of Transportation (Caltrans). The City of Vernon has disseminated this policy statement to the City Council 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 of Vernon 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 of Vernon 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 of Vernon will continue to carry out this program until the City of Vernon has established a new goal setting methodology or until significant changes to this DBE Program are adopted. The City of Vernon 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 of Vernon will not use quotas or set asides in any way in the administration of this DBE program. VI DBE Liaison Officer (DBELO) (§26.25) The City of Vernon has designated the following individual as the DBE Liaison Officer: Mr. Kevin Wilson, Community Services Department, 4305 Santa Fe Avenue, Vernon, California 90058; E-Mail Kwilson@ci.vernon.ca.us. In that capacity, Mr. Wilson is responsible for implementing all aspects of the DBE program and ensuring that the City of Vernon complies with all provisions of 49 CFR Part 26. This is available on the Internet at osdbuweb.dot.gov/main.cfrn. Mr. Wilson has direct, independent access to the City Administrator concerning DBE program matters. The DBELO has a staff of 2 professional employees who devote a portion of their time to the DBE program. For the organization chart see Attachment "A". 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. Ensures that notices inviting bids are available to DBEs in a timely manner. 3. Identifies contracts so that DBE goals are included in solicitations (both race -neutral methods and contract specific goals) and monitors results. 4. Analyzes the City of Vernon's progress toward goal attainment and identifies ways to improve progress. 5. Participates in pre -bid meetings. 6. Advises the City Council on DBE matters and achievement. 7. Participates with the Legal Counsel to determine contractor compliance with good faith efforts. 3 8. Provides DBEs with information and assistance in preparing bids, obtaining bonding and insurance, if so requested. 9. Provides assistance to outreach to DBEs and community organizations to advise them of opportunities. VII Federal Financial Assistance Agreement Assurance (§26.13) The City of Vernon 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 of Vernon's Department of Community Services 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 of Vernon 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 of Vernon has not identified any types of work in DOT -assisted contracts that have an overconcentration of DBE participation. If in the future the City of Vernon identifies the need to address overconcentration, measures for addressing overconcentration will be submitted to the DLAE for approval. 4 XI Business Development Programs (§26.35) The City of Vernon does not have a business development or mentor -protege program. If the City of Vernon 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 of Vernon 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 of Vernon 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 of Vernon. 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 of Vernon. This clause applies to both DBE and non -DBE subcontractors Release of Retainame 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 of Vernon. This clause applies to both DBE and non -DBE subcontractors. XIII Monitoring and Enforcement Mechanisms (§26.37) The City of Vernon 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: After Contract Award After the contract award the City of Vernon 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 City of Vernon 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 Monitorin 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. 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 6 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 Keening 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. 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 of Vernon's commitment to require bidders list information to be submitted to the City of Vernon 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 of Vernon 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 of Vernon 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 of Vernon's overall goal for the Federal Fiscal Year 2002 is the following: 13% of the Federal financial assistance in FHWA-assisted contracts. This overall goal is broken down into 12% race -conscious and 1% race -neutral components. Methodology For Federal Fiscal Year 2001-2002 see Attachment `B". Process The City of Vernon's bidders list will be used to determine the overall goal. As part of establishing an overall goal, the City of Vernon will make good faith efforts to consult with minority, women and general contractor groups; community organizations and officials; and business organizations. With that consultation referenced the City of Vernon will submit the draft overall goal information (amount of overall goal, the method to calculate the goal, and the breakout of estimated race -neutral and race -conscious participation) on June 1 of each year beginnigg in 2001 to the DLAE, for preliminary comments. Once the DLAE has responded with preliminary comments and the comments have been incorporated into the draft overall goal information, the City of Vernon 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 of Vernon's principal office for 30 days following the date of the notice, and informing the public that City of Vernon 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 websites will be the normal media to accomplish this effort. The notice will include address to which comments may be sent and addresses (including offices and websites) where the proposal may be reviewed. The overall goal resubmission to the DLAE, will include a summary of information and comments received during this public participation process and the City of Vemon's responses. This will be due by September 1 of each year beginning in 2001 to the DLAE. The DLAE will have a month to make a final review so the City of Vernon may begin using the overall goal on October 1 of each year. XV Contract Goals (§26.51) The City of Vernon will use contract goals to meet any portion of the overall goal the City of Vernon 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 of Vernon 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 of Vernon will direct the transit vehicle manufacturer to the subject requirements located on the Internet at http://osdbuweb.dot.gov/programs/dbe/dbe.htm. XVII Good Faith Efforts (§26.53) Information to be Submitted The City of Vernon 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 of Vernon 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. 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: Mr. Kevin Wilson, DBE Liaison Officer and his staff. The City of Vernon 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 of Vernon 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: City Council, City of Vernon, 4305 Santa Fe Avenue, Vernon, California, 90058. 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. 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 of Vernon 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. 10 Good Faith Efforts when a DBE is Renlaced on a Contract The City of Vernon 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 of Vernon'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, our 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 (§26.55) The City of Vernon 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 of Vernon 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 of Vernon 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. Monitoring Payments to DBEs We will require prime contractor 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 of Vernon, Caltrans or FHWA. This reporting requirement also extends to any certified DBE subcontractor. Payments to DBE subcontractors will be reviewed by the City of Vernon 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 of Vernon - Final utilization of DBE participation will be reported to the DLAE using Exhibit 17-F of the Caltrans' LAPM. 11 Confidentiality The City of Vernon will safeguard from disclosure to third parties information that may reasonably be regarded as confidential business information, consistent with Federal, state, and local laws. Date: e KevOilso—n This Disadvantaged Business Enterprises Program is accepted by: Date: 12 ATTACHMENT CITY OF VERNON OVERALL ANNUAL GOAL -SETTING METHODOLOGY I. FHWA ASSISTED CONTRACTING PROGRAM FOR FEDERAL FISCAL YEAR 2001/2002 The following represents the City of Vernon's projected FHWA funded contracts and expenditures by work category for FFY 2001/2002: CATEGORY PROJECT LOCATION TOTAL FEDERAL o OF TOTAL NAME COST FUNDING FEDERAL FUNDING A Traffic Signal Santa Fe $986,000 $500,000 6.2 Synchronization Avenue from 25"' Street to 57t' Street B 26 Street Bridge 261ft Street $20,979,000 $7,363,000 91 Extension over Atlantic Boulevard C Corridor 26 Street and $225,050 $225,050 2.8 Feasibility Study Soto Street TOTAL $22,190,050 $8,088,050 100% II. GOAL -METHODOLOGY Step 1. Determination of a Base Figure (§26.45) LACDPW elected to utilize the following methodology in establishing its Base Figure of relative DBE availability for FFY 2001/2002: For the numerator: DBE firms in LACDPW's bidders list (see attached) For the denominator: Firms in LACDPW's bidders list (see attached) The City of Vernon will calculate its weighted Base Figure by first determining the number of ready, willing and able DBEs in its Bidders List by work category, and dividing the number of DBEs by the total number of firms in the same work category. Through this method, the City of Vernon can measure availability by the number of firms that directly participated in, or attempted to participate in, the City of Vernon FHWA- assisted contracting between October 1, 1999 and June 1, 2001. Pagel of 3 Attachment cont'd Application of this formula yields the following baseline information: Number of Ready, Willing and Able DBEs = BASE FIGURE Number of All Ready, Willing and Able Firms The Base Figure resulting from this calculation is as follows: Base Figure = [ (0.062) (DBEs in A) + (0.91) (DBEs in B)+ (0.028) (DBEs in C) ] [ Firms in A Firms in B Firms in C ] Base Figure = [ (0.062) 8 + (0.91) 20 + (0.028) 12 ] [ 36 77 76 ] Base Figure = [ 0.013 + 0.24 + 0.004 ] Base Figure = [ 0.257 ] 100 = 26% Step 2: Adjusting the Base Figure Upon establishing the Base Figure, since the City of Vernon has not had any FHWA funding in the last three (3) years, the City of Vernon reviewed Los Angeles County Department of Public Works (LACDPW) projects as listed, to determine what additional adjustments, if any, were needed to tailor the Base Figure to the LACDPW's marketplace. Factors considered in determining the base figure are the following: A. Approved DBE Goals The City of Vernon shares the same marketplace with the following agencies with approved DBE goals: • LACDPW (15%) • City of Los Angeles (17%) • City of Maywood (15%) • City of Commerce (10%) B. Resultant Goal Adjustment These factors resulted in a downward adjustment of the Base Figure from 26% to 13% for DBE participation in Fiscal Year 2001/2002. III. UTILIZATION OF RACE -NEUTRAL AND RACE -CONSCIOUS METHODS Of the overall annual 13% goal for DBE participation, the City of Vernon's projects meeting 1 % of the goal utilizing race -neutral methods, including making efforts to assure Page 2 of 3 Attachment cont'd that bidding and contract requirements facilitate participation by DBEs and other small businesses; distributing plans and specifications to various organizations including those which offer assistance to DBEs; participation in vendor fairs which may be attended by DBEs and providing technical assistance, and other support services to facilitate consideration of DBEs and other small businesses. The remaining 12% of the goal is anticipated to be accomplished through race -conscious measures, which includes establishing contract specific goals on contracts with contracting possibilities, when needed, to meet the overall annual DBE goal. IV. PUBLIC PARTICIPATION 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 Vernon's marketplace. Additionally, the City.of Vernon will publish a Public Notice in general circulation media, announcing the proposed overall annual goals for the FY 2001-2002 contracts assisted by FHWA. Such notice informs the public that the proposed goals and their rationale are available for inspection at the department during normal business hours for 30 days following the date of the Public Notice and that the City of Vernon will accept comments on the goals for 45 days from the date of the Public Notice. Page 3 of 3 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS BIDDER'S LIST FHWA-ASSISTED PROJECTS ADVERTISED OCTOBER 1, 1999 TO JUNE 1, 2001 1. Roadway Resurfacing and Reconstruction: All American Asphalt AM Concrete Arbor Care Arrow Concrete Cutting BA Construction, Inc. Beador Construction Company, Inc. Blue Diamond Materials BRM Equipment, Inc. Bruce Frambes California Traffic Maintenance Calmex Engineering Camilo Lopez, Inc.(C.L. Concrete) Carlos Villegas Electric, Inc Chris' Tree Service Chrisp Company Civil Works Company Covarubias Bros. R. and T. Cooper Electric, Inc. C. T. & F, Inc. Damon Construction Dial Construction Dynaelectric Emma Corporation Excel Paving Company R. Fox Construction Gentry Brothers, Inc. Golden West Fence Company Granite Construction Granstrom Masonry Griffith Company Gueno Development Highli ht Electric Hillside Contractors Hood Corporation J. D. Jimenez Concrete Contractors, Inc. J & S Sign Company, Inc. Jezowski & Markel JV Landclearing K. A. S. Equipment and Rental L. A. Signal Landscape FIX Los Angeles Engineering, Inc. Linemaster Madison Paving, Inc. Manhole Adjusting Contractors, Inc. Marina Landscape Maverick Electric Martinez Concrete, Inc. Mobassally Engineering, Inc. Nobest, Inc. R. J. Noble Company Roy Allen Orange County Striping The Patterson Company, Inc. Pavement Recycling Systems, Inc. Pattern Concrete of Southern California Pavement Coatings, Inc. P.C. I., Inc. Prism Engineering Ramirez Construction Regan Paving Rivera Irrigation Ruiz Engineering RVC Roadway Construction, Inc. S & M Landscape, Inc. Sequel Contractors, Inc. Signal Installation & Repair, Inc. Silvia Construction, Inc. Southern California Landscape Sullivan Concrete Textures Steiny and Company, Inc. Sterndahl Enterprises, Inc. Stevens Tree Experts Sudhakar Company Sully -Miller Contracting Company T.C.I. Trademark Traffic Loop Crackfilling, Inc Traffic Operations, Inc. V & E Tree Service, Inc. West Coast Milling Works, Striping and Marking Participation: 16182 =18.3 % 2. Traffic Signal/Street Lighting Systems and Modifications: Alcorn Fence Company Alert Barricade, Inc. Amicale, Inc. Advanco Constructors BA Construction, Inc. Blue Sky Remediation C. T. & F., Inc. California Electrical Services Dalaj International Corp. Direct AN Dynaelectric Electro-Air Fern Electric & Control Company G & F Concrete Cutting Gildersleeve Electric Granite Construction Hillside Contractors, Inc. HSQ Technology Kingston Constructors J & S Sign Company JFL Electric, Inc. KRC Safety Company, Inc. Linemaster, Loopmaster Maverick Electric, Inc. National Electrical Contractors, Inc. Peterson -Chase General Engineering Construction, Inc. Sachs Electric Company Signal Installation & Repair, Inc. Signal Maintenance, Inc. Steiny and Company, Inc. Stevens Construction, Inc. Taft Electric Company TDS Engineering VT Electric, Inc. 4-Con Engineering, Inc. Participation: 8/36 = 22.2 % 3. Bridge Seismic Retrofit: A & M Construction Accurate Concrete Sawing Ace Restoration Alcorn Fence R.J. Allen Arrow Concrete Cutting Ashco, Inc. Beador Construction Company, Inc. Brand Scaffolding R. J. Bullard Construction; Inc. Concrete Coring Company Concrete Cutting, Inc. Contractor's Rigging and Erectors G. B. Cooke, Inc. D & N Concrete Pumping, Inc. Dalaj International Corporation Dywidag Systems, Inc. Fiberwrap Franklin Reinforcing Steel Company, Inc G & F Concrete Cutting, Inc. GLM Contractors, Inc. Harbor Company Hillside Contractors, Inc. Hubbs & Ferrante Intra-American Foundation & Drilling, Inc J & J Cutting MW Steel T.td Jmar corporation Yang Kin Kylo Construction Corp. Los Angeles Engineering, Inc. Mastermind Builders J. McLoughlin Engineering Company, Inc. John S. Meek Company Mitchell Pacific Constructors, Inc. Mejia Steel Welding Mendez Concrete, Inc. MJ Contractor Murphy Industrial Coatings Amicale, Inc. Arrow Concrete Company, Inc. Avar Construction Systems Berry General Engineering Contractors, Inc. Boardman Construction CalMex Engineerin , Inc C.A. Rasmussen, Inc. Cinco Iron Works, Inc. Crockett Drilling Service, Inc. Crown Fence C. T. & F. C & W Fence Company, Inc. Diversified Landscape D & M Rebar D & N Concrete Pumping Dywidag Systems International D. W. Powell Construction, Inc. Far East Landscape Foundation Pile Franklin Reinforcing Steel GLM Contractors Golden State Fence Granite Construction Greenfield Construction Haitbrink Asphalt Paving Harbor Company, Inc. High Light Electrical Hubbs & Ferrante Intra-American Foundation & Drilling, Inc J & M Land Restoration Kon-Struct Construction Company La Core Construction, Inc. Los Angeles Engineering, Inc. M & K Metal Company Macro Z Technology Company The Mahaffey Companies Malcolm Drilling Martinez Construction MCM Construction, Inc. Multiple Plant Services Murphy Industrial Coatings Oberg Contracting Corp. Pete & Sons Penhall Company PKB Construction, Inc. Quality Hydroseeding Pro -Contracting R. E. Williams & Sons Reyes Construction Revco, Smith & Reynolds Rock Structures Construction Company Samrod Corporation Sandcastle Sudhakar Company, Inc. Super Seal & Stripe Techno Coatings T.M. Engineering Union Construction Painting Union Engineering Company, Inc. United Steel Placers Universal Asphalt Company Vandani Construction Company, Inc. Venzon Corporation Vista Steel Company VT Electric Western Paving Contractors, Inc Western Waterproofing William P. Young Construction Participation: 20/77 = 26.0 % 5. Bridge Barrier Railing Replacement: A & M Construction Ace Fence Company Alcorn Fence Company Bannaoun Engineers Beador Construction Company, Inc. Bowe Contractors Dalaj International Corporation G & F Concrete Cutting GLM Contractors, Inc. Hillside Contractors, Inc, ICC Kon-Struct Construction Company Kylo Construction Corp. Los Angeles Engineering, Inc. Metropole McLaughlin Construction, Inc. Olivas Valdez, Inc. Penhall Company Peterson -Chase TM Engineering Vimer Industries Vista Steel 4-Con Engineering, Inc. Participation: 3/23 = 13.0 % 6. Bridge Painting: , American Barricade Dalaj International Corp. G & F Concrete Cutting Larry Basner Sand Blasting Macro-Z Technology Modern Alloys Murphy Industrial Coatings, Inc Paramount Scaffold Company Robison-Prezioso, Inc. Sunrise Painting Techno Coatings, Inc. Union Construction and Painting Company Wang Milestone Construction, Inc. Wellsona Iron & Engineering Participation: 4/14= 21.4% 7. Curb Ramps: A & R Construction Corp. Alpha Omega Builders Amicale, Inc. B & D Contractors, Inc. Calex Engineering Company Cancino Construction Company, Inc. Chris' Tree Service Civil Works Corporation CJ Construction, Inc. H. B. Covey, Inc. Damon Construction Company Han and Kim Construction, Inc. Kalban, Inc. L.A. Signal L. G. T. Enterprises, Inc. Los Angeles Engineering Moore Electric Ranco Corporation Vido Samarzich, Inc. Saliba Corp. Smithson Electric Stevens Tree Service V & E Tree Service Participation: 1/23 = 4.3% VIII• Consulting Services: AAA Lead Consultants and Inspections Advanced Engineering Design Agbabian Associates Agra AMEC Earth Environmental Arcon Athalye Consulting Engineers Bayez and Patel Ben C. Gerwick, Inc. Berryman & Hennigar BFL Owen Biggs Cardosa Associates Bing Yen & Associates Brown & Root Cadre Design Group Carter -Burgess Century Diversified, Inc. CH2M Hill Computer Aided Structural Technology(C.A.S.T.) Diaz-Yourman D'Leon Consulting Engineers Corp. DMJM Dokken Engineering DRC Consultants EQE Engineering, Inc. E.W. Moon, Inc. Earth Mechanics FPL & Associates Frederic R. Harris, Inc. Fred Huang & Associates Geo-Environmental, Inc. Geofon Geotechnical Consultants, Inc. GKO & Associates Group Delta Consultants(The LKR Group) GVD Diversified Harding Lawson Associates(Alpha Engineering) HDR Engineering, Inc. HNTB Corporation Imbsen & Associates, Inc. Inca Engineers, Inc. JMEC Engineering Kaiser Engineers, Inc Kimley-Horn & Associates LAN Engineering(Peter Lim & Associates, Lim and Nascimento) MAA Engineering Consultants, Inc. Mark Thomas & Company, Inc. Martin & Huang Martin, Rivett & Olson, Inc. McLean & Schultz McDaniel Engineering MGE Engineering Moffatt & Nichol Engineers Owen Group, Inc. PBS&J, Inc. Parikh Parsons Brinckherhoff Parsons Transportation Group, Inc. PCI RBF(Robert Bein, William Frost & Associates) RNF & Associates Rubicon Ruth & Going Schaaf & Wheeler Simon Wong Engineering SOH & Associates Sverdrup Civil, Inc. Tetratech(ASL Consulting Engineers) Trans Pacific T. Y. Lin, International URS Greiner Woodward Clyde VLG Engineering W. Koo & Associates Washington Infrastructure Services(MK Centennial) Willdan Associates WRECO Participation: 12/76 = 18.4% SUPPORTING DOCUMENTS CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro -Tern WM. `BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator/City Clerk FAX (323) 826-1438 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 April 16, 2002 Mr. Satish Chander, Chief State of California Business and Transportation Agency Department of Transportation District 7, Office of Local Programs 700 North Alameda Street, 4`" Floor Los Angeles, California 90012 RE: DISADVANTAGED BUSINESS ENTERPRISE PROGRAM Dear Mr. Chander: EDUARDO OLIVO City Attorney FAX: (562) 869-1883 KEVIN WILSON Director of Community Services & Water FAX: (323) 826-1435 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 826-1425 STEVEN E. PARKER Fire Chief FAX: (323) 826-1407 BRUCE W. OLSON Police Chief FAX: (323) 826-1481 C-lc Transmitted herewith is a copy of the executed Resolution No. 7942 approved and adopted by the Vernon City Council on their meeting held April 3, 2002 approving and adopting a Disadvantage Business Enterprise Program pursuant to Part 26 of Title 49 of the Code of Federal Regulations. If you have any questions regarding this matter please contact my office. Thank you. Very trilly yours, /amuelKevin Wilson, P.E. Director of Community Services & Water SKW/ca Enclosure a Bruce V. Malkenhorst, City Administrator OFFICE OF THE CITY ADMINISTRATOR/CITY CLERK INTER -OFFICE MEMORANDUM DATE: April 15, 2002 TO: Kevin Wilson, Director of Community Services & Water FROM: Nelly Giron, Assistant Chief Deputy City Clerk RE: Resolution No. 7942 Disadvantaged Business Enterprise Program Attached herewith, for your transmittal, is a copy of the above referenced.approved by the City Council on April 3, 2002. NG:mt i Y -v CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro —Tern WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator/City Clerk FAX (323) 826-1438 City Council City of Vernon Honorable Members: �, ^ EDUARDO OLIVO W t City Attorney FAX: (562) 869-1883 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 March 28, 2002 KEVIN WILSON Director of Community Services & Water FAX: (323) 826-1435 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 826-1425 STEVEN E. PARKER Fire Chief FAX: (323) 826-1407 BRUCE W. OLSON Police Chief FAX: (323) 826-1481 The Federal Highway Administration (FHWA) is requesting that all recipients of (FHWA) funds adopt a Disadvantage Business Enterprises (DBE) Program to establish their own DBE goals before any funding can be released. On December 3, 2001, Caltrans approved the DBE Program for FFY 2001-2002 submitted by the Community Services and Water Department. Submitted herewith for the record is a proof of the Public Notice publication and it is hereby recommended that the City of Vernon's DBE Program be approved and a resolution adopted. Very truly yours, Bruce V. Malkenhorst City Administrator/City Clerk BVM/gm G- w A COMMUNITY SERVICES & WATER DEPARTMENT OFFICE MEMORANDUM TO: Bruce V. Malkenhorst, City Administrator FROM: Samuel Kevin Wilson, Director of Community Services & Water DATE: March 27, 2002 SUBJECT: DBE PROGRAM All recipients of FHWA federal funds need to adopt a Disadvantaged Business Enterprise (DBE) Program and establish their own DBE goal before any funding can be released. In a letter from the State dated December 3, 2001 the City's draft DBE goal and methodology for FFY 2001/2002 was approved. The City has published a public notice in a general circulation media announcing our proposed overall annual goal for FFY 2001/2002 contracts assisted by FHWA. The next step for the City is to adopt a resolution approving the program. A copy of the resolution with the proof of public notice publication must be mailed to Caltrans for their files. It is my recommendation that the City Council approve the DBE program. SKW/ca Enclosures c: City Attorney