Resolution No. 8724
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RESOLUTION NO. 8724
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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
6 WHEREAS, on June 29, 1999, the City Council of the City of
7 Vernon approved Resolution No. 7364 adopting a Disadvantaged Business
8 Enterprise Program (~DBE") that established a DBE goal of thirteen
9 percent (13%) for the period October 1, 1998 to September 30, 1999;
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11 WHEREAS, in accordance with the DBE Program, the Director of
12 Community Services & Water is the DBE Liaison Officer for the City of
13 Vernon; and
14 WHEREAS, the City of Vernon presently participates, and
15 plans to participate in.the future, in program activities funded
16 wholly or in part by Federal funds; and
17 WHEREAS, all recipients of Federal Highway Administration
18 Federal funds need to adopt a DBE Program and establish their own DBE
19 goal before any funding can be released; and
20 WHEREAS, the City of Vernon has applied for Federal
21 financial assistance from the U.S. Department of Transportation, and
22 as a condition of receiving this assistance, the City of Vernon needs
23 to comply with 49 CFR Part 26; and
24 WHEREAS, Samuel Kevin Wilson, the Director of Community
25 Services & Water, submitted Vernon's draft DBE Goal and methodology
26 for the Federal Fiscal Year 2004/2005 (October 1, 2004-September 30,
27 2005) for the DBE Program to the California Department of
28 Transportation (~Caltrans") for its review and approval, and said goal
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1 and methodology for the Program was approved by Caltrans on
2 February 28, 2005; and
3 WHEREAS, on March 3, 2005, the City Clerk published a Notice
4 in the Metropolitan News-Enterprise, which was determined to be a
5 newspaper of general circulation nearest to the City most appropriate
6 for this purpose; and
7 WHEREAS, a copy of the Declaration of Publication is
8 attached hereto as Exhibit B and incorporated by reference, which
9 indicated that documentation used in the determination of the proposed
10 goal for Fiscal Year 2004/2005 provided for herein has been available
11 for inspection and comment by the public; and
12 WHEREAS, the City of Vernon agrees to adopt a DBE Program for
13 Federal Highway Administration Assisted Contracts and establish its own
14 DBE goal.
15 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
16 CITY OF VERNON AS FOLLOWS:
17 SECTION 1: The City Council of the City of Vernon hereby
18 finds and determines that the recitals contained hereinabove are true
19 and correct.
20 SECTION 2: The City Council of the City of Vernon further
21 finds that all persons have had the opportunity to be heard or to file
22 written comments to the proposed goal.
23 SECTION 3: The City Council of the City of Vernon hereby
24 approves and adopts the City of, Vernon Department of Community
25 Services Disadvantaged Business Enterprise (DBE) Program for Federal
26 Highway Administration Assisted Contracts, a copy of which is attached
27 hereto as Exhibit A and incorporated by reference.
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SECTION 4:
The City Council of the City of Vernon hereby
2 authorizes the Director of Community Services & Water as the DBE
3 Liaison Officer to execute any and all documents necessary for the
4 purpose of securing DBE Program funds and to implement and carry out
5 the purposes specified in the DBE Program for, and on behalf of, the
6 City of Vernon.
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SECTION 5:
The City Council of the City of Vernon hereby
8 directs the Director of Community Services & Water, or his designee,
9 to send a copy of this resolution to:
State of California
Department of Transportation
Attn. Sohan Basra, DBE Coordinator
District 7, Office of Local Assistance and Alameda Corridors
100 South Main Street, 12th 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 27th day of April, 2005.
~AL~.
. LEONIS C. MAL URG, M yor
ATTEST:
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BRUCE V. MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA
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COUNTY OF LOS ANGELES
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I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8724, was duly adopted by the City Council of the City of Vernon at an
adjourned regular meeting of the City Council duly held on Wednesday,
April 27, 2005, and thereafter was duly signed by the Mayor of the City
of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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EXHIBIT
A
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CITY OF VERNON
DEPARTMENT OF COMMUNITY SERVICES
DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM
FOR
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 ofDBEs 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. fu 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.
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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.Inthatcapacity.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.cfm. 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.
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.
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7. Participates with the Legal Counsel to determine contractor compliance with good faith
efforts.
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 AssistanceAgreement 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 etseq.).
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 [mancial 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.
fuformation 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 ofDBE 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.
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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 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 of Vernon. This clause applies to both DBE and non-DBE subcontractors.
XIII Monitoring and Enforcement Mechanisms (~26.37)
The City of Vemon 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:
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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 IS-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 16-1 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 (FP A).
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 FP A 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.
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
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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 ofDBE payment is the responsibility ofthe 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.
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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 2004-05 is the following: 13% of
the Federal financial assistance in FHW A -assisted contracts. This overall goal is broken down
into 12% race-conscious and 1 % race-neutral components.
Methodology
For Federal Fiscal Year 2004-2005 see Attachment "A".
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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 I of each year
beginning 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 Vernon's responses.
This will be due by September I 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 I 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.
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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.
xvn 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.
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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, FHW A or the DOT.
Good Faith Efforts when a DBE is Replaced 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 XIll. "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.
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. 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
FHW A. 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
.ofDBE 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.
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: i!./-z 2-0
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This Disadvantaged Business Enterprises Program is accepted by:
Date:
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ATTACHMENT A
DBE Goal Methodology 2004/2005
CITY OF VERNON
OVERALL ANNUAL GOAL-SETTING METHODOLOGY
I. FHW A ASSISTED CONTRACTING PROGRAM FOR FEDERAL FISCAL YEAR
2004/2005
The following represents the City of Vernon's projected FHWA funded contracts and
expenditures by work category for FFY 200412005:
CATEGORY PROJECT LOCATION TOTAL FEDERAL % OF TOTAL
NAME COST FUNDING FEDERAL
FUNDING
26th Street Bridge 26th Street
A Extension over Atlantic $10,745,000 $7,363,000 96.3%
Boulevard
Atlantic Blvd. Atlantic Blvd.
B Bridge Over L.A. At L.A. River $357,000 $282,000 3.7%
River
TOTAL $11,102,000 $7,645,000 100%
II. GOAL-METHODOLOGY
Step 1. Determination of a Base Figure (~26.45)ss
LACDPW elected to utilize the following methodology in establishing its Base Figure of
relative DBE availability for FFY 2004/2005:
. For the numerator:
. For the denominator:
DBE fIrms in LACDPW's bidders list (see attached)
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 1,2004.
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 Firm
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ATTACHMENT A
DBE Goal Methodology 2004/2005
The Base Figure resulting from this calculation is as follows:
Base Figure = [ (0.963) (DBEs in A) + (0.037) (DBEs in B) ]
[ Firms in A Firms in B 1
Base Figure = [(0.963) 32 + (0.037) 28 ]
[ 126 139 ]
Base Figure = [ (0.963) (0.254) + (0.037)(0.201) ]
Base Figure = [0.245 + 0.007 = 0.252 (100) = 25.2%]
Step 2:
Adjusting the Base Figure
A. Current Capacity of DBEs Measured by Actual Attainment in the recent past
Years:
No reliable information available for past 3 years.
B. Disparity Study Results:
City of Vernon has not conducted any Disparity Study.
C. Other Neighbor Agencies Annual DBE Goal:
City ofS.F. Springs - 5%
City of Bell - 6%
City of Downey - 10%
City of Los Angeles - 17%
D. Resultant Goal Adjustment:
These factors resulted in a downward adjustment of the Base Figure from 25.2% to 13%
for DBE participation in Fiscal Year 2004/2005.
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
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
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ATTACHMENT A
DBE Goal Methodology 2004/2005
consideration ofDBEs 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 2004-2005 contracts
assisted by FHW A. 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.
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EXHIBIT
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DECLARATION OF PUBLICATION
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CLAUDIA ARELLANO
CITY OF VERNON
COMMUNITY SERVICES & WATER DPT
4305 SANTA FE AVE
VERNON CA 90058
NOTICE
-DISADVANTAGED BUSINESS ENTERPRISES IN
FEDERAL-AID
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 METROPOLI-
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.601l65. The notice, a printed copy of
which. appears hereon, was published on the following
date(s): Mar 3, 2005
I declare under pena1ty'Of perjury that the foregoing is
true and correct Executed at Los Angeles, California on
03/03/05.
Metropolitan News-Enterprise
P.O. Box 60859
Los Angeles, Ca 90060
Phone: (213) 346-0033
Fax: (213) 687-3886
Cust Nom.: 011482
Cust. Ref: Nom.: DBE
Control Num.: 724067
I..IIBIIII
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NOTICE
The CIty of Vernon has set an annual
goal for Federal AscaI Year 200412005
of 13% for the utilization of Disadvan-
taged. BusiIl$S Entelprises (oae) In
FederaI-Ald HIghway projects.
The goal establlshmilnt procedure win be
all8llable for public lnspeclIon for a
period of 30 days at CIty Hall.
Vernon CIty Hall
Comm.Inlty ServIces Department
4305 Santa Fe Avenue
Vernon. CA 90058
Attn: Kevin Wilson
Cooments on this goal win be received
In the above mentioned office and by the
United States Department of Transporta-
tion, Washington, D.C. for a period of 45
days from the date of this notice.
CN724067 DBE Mar 3, 2005
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