Resolution No. 9048s
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RESOLUTION NO. 9048
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
DISADVANTAGED BUSINESS ENTERPRISE RACE -NEUTRAL
IMPLEMENTATION AGREEMENT FOR LOCAL AGENCIES BY AND
BETWEEN THE CITY OF VERNON AND THE U.S. DEPARTMENT
OF TRANSPORTATION THROUGH THE CALIFORNIA DEPARTMENT
OF TRANSPORTATION
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;
Iand
WHEREAS, singe its adoption of the DBE, the City has adopted
a yearly DBE Program for Federal Highway Administration Assisted
Contracts and established its own DBE goal; and
WHEREAS, the latest DBE Program for Federal Highway
Administration Assisted Contracts for the period October 1, 2005 to
September 30, 2006, and DBE goal was adopted on October 12, 2005, by
Resolution No. 8868; and
WHEREAS., in accordance with the DBE Program, the Director of
Community Services & Water is the DBE Liaison Officer for the City of
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, on May 1, 2006, the U.S. Department of
Transportation, through the California Department of Transportation
("Caltrans"), completely changed to a race -neutral DBE program in
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11order to comply with a Ninth Circuit Court of Appeals decision
I1requiring a statewide DBE program eliminating race -conscious
Ilconsiderations; and.
WHEREAS, as a condition to receiving Federal assistance, the
City is required to execute a Disadvantaged Business Enterprise Race -
Neutral Implementation Agreement for Local Agencies (the `Agreement")
lwith Caltrans; and
WHEREAS, by executing the Agreement, the City agrees to
implement the Caltrans DBE which is based upon 49 CFR Part 26
requirements that the City will not, directly, or through contractual
or other arrangements, use criteria or methods of administration that
discriminate on the basis of race, color, sex, or national origin in
the award and performance of any Department of Transportation assisted
contract or in the administration of its DBE Program, or the
requirements of 49 CFR Part 26; and
WHEREAS, the City is required to provide to the Caltrans'
District Local Assistance Engineer, a completed DBE Annual Submittal
Form by June 1 of each year for the following Federal fiscal year that
includes an Annual Anticipated DBE Participation Level, methodology
for establishing the Annual Anticipated DBE Participation Level, the
name, phone number and electronic mailing address of the designated
DBE Liaison Officer and the choice of Prompt Pay Provision to be used
by the City for the following fiscal year; and
WHEREAS, by memo dated May 15, 2006, Samuel Kevin Wilson,
the Director of Community Services & Water, recommended that the
Agreement be approved and executed by June 1, 2006, in order for the
City to participate in Federal funding for the 2006-2007 fiscal year.
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1 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
2 CITY OF VERNON AS FOLLOWS:
3 SECTION 1: The City Council of the City of Vernon hereby
4 finds and determines that the recitals contained hereinabove are true
5 and correct.
6 SECTION 2: The City Council of the City of Vernon hereby
7 approves the Disadvantaged Business Enterprise Race -Neutral
8 Implementation Agreement for Local Agencies with Caltrans, in
9 substantially the same form as the copy which is attached hereto as
10 Exhibit A and incorporated by reference.
11 SECTION 3: The City Council_ of the City of Vernon hereby
12 authorizes the Mayor to execute the Agreement for, and on behalf of,
13 the City of Vernon and the Acting City Clerk is hereby authorized to
14 attest thereto.
15 SECTION 4: The City Council of the City of Vernon hereby
16 authorizes the Director of Community Services & Water as the DBE
17 Liaison Officer to execute any and all documents as shall be required
18 to implement the Agreement consistent with the terms of said
19 Agreement.
20 SECTION 5: The City Council of the City of Vernon hereby
21 directs the Director of Community Services & Water, or his designee,
22 to send two original Agreements to:
23 State of California
Department of Transportation
24 Attn. Kirk Cessna, Chief, Office of Local Assistance
25 Caltrans District 7
100 South Main Street, 12th Floor
26 Los Angeles, CA 90012
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SECTION 6: The Acting 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 24th day of May, 2006.
ATTEST:
BRUCP V. M LKENHORST, JR.
Acti y Clerk
LEONIS C. MAL�URG, Mayor
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1 STATE OF CALIFORNIA )
ss
2 COUNTY OF LOS ANGELES )
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4 I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
5 Vernon, do hereby certify that the foregoing Resolution, being
6 Resolution No. 9048, was duly adopted by the City Council of the City
7 of Vernon at a regular meeting of the City Council duly held on
8 Wednesday, May 24, 2006, and thereafter was duly signed by the Mayor of
9 the City of Vernon.
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BR CE MALKENHORST, JR.
12 Acting City Clerk
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DISADVANTAGED BUSINESS ENTERPRISE
RACE -NEUTRAL
IMPLEMENTATION AGREEMENT
FOR
LOCAL AGENCIES
DISADVANTAGED BUSINESS ENTERPRISE RACE -NEUTRAL
EffLEMENTATION AGREEMENT
For the City of Vernon, hereinafter referred to as "RECIPIENT."
Definition of Terms
The terms used in this agreement have the meanings defined in 49 CFR § 26.5.
II OBJECTIVE/POLICY STATEMENT (§26/1. 26/23)
The RECIPIENT intends to receive federal financial assistance from the U. S. Department of
Transportation (DOT) through the California Department of Transportation (Caltrans), and as a
condition of receiving this assistance, the RECIPIENT will sign the California Department of
Transportation's Disadvantaged Business Enterprise Implementation Agreement (hereinafter
referred to as Agreement). The RECIPIENT agrees to implement the State of California,
Department of Transportation Disadvantaged Business Enterprise (DBE) Program Plan
(hereinafter referred to as the DBE Program Plan) as it pertains to local agencies. The DBE
Program Plan is based on U.S. Department of Transportation (DOT), 49 CFR, Part 26
requirements.
It is the policy of the RECIPIENT to ensure that DBEs, as defined in Part 26, have an equal
opportunity to receive and participate in DOT -assisted contracts. It is also their policy:
• To ensure nondiscrimination in the award and administration of DOT -assisted contracts.
• To create a level playing field on which DBE's can compete fairly for DOT -assisted
contracts.
• To ensure that their annual overall DBE participation percentage is narrowly tailored, in
accordance with applicable law.
• To ensure that only firms that fully meet.49 CFR, Part 26 eligibility standards are
permitted to participate as DBEs.
• To help remove barriers to the participation of DBEs in DOT -assisted contracts.
• To assist the development of firms that can compete successfully in the market place
outside the DBE Program.
III Nondiscrimination (§26.7)
RECIPPIENT 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 the local agency components of the DBE Program Plan, the RECIPIENT 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 Plan with respect to individuals of a particular race, color, sex, or national
origin.
IV Annual DBE Submittal Form (§26.21)
The RECIPIENT will provide to the Caltrans' District Local Assistance Engineer (DLAE) a
completed DBE Annual Submittal Form by June 1 of each year for the following Federal Fiscal
Year (FFY). This form includes an Annual Anticipated DBE Participation Level (AADPL),
methodology for establishing the AADPL, the name, phone number, and electronic mailing
address of the designated DBELO, and the choice of Prompt Pay Provision to be used by the
RECIPIENT for the following FFY.
V Race -Neutral Means of Meeting the Annual DBE Goal (§26.51)
RECIPIENT will assist Caltrans to achieve its Overall Statewide DBE Goal by race neutral
means that may include, but are not limited to the following:
1. Advertising solicitations, scheduling bidding periods and opening times, and packaging
quantities, specifications, and delivery schedules in ways that facilitate DBE and other small
business participation.
2. Providing assistance to DBE and small businesses in overcoming limitations such as inability
to obtain bonding or financing (e.g., by such means as simplifying the bonding process,
reducing bonding requirements, and providing services to help DBEs and other small
businesses obtain bonding and financing).
3. Providing technical assistance and other services to DBE and small businesses.
4. Providing information and communication programs on contracting procedures and specific
contract opportunities (e.g., ensuring the inclusion of DBEs and other small businesses on
recipient mailing lists of bidders; ensuring the dissemination to bidders on prime contracts of
lists of potential subcontractors including DBE's and small businesses; providing the
information in languages other than English, where appropriate).
5. Implementing a supportive services program to develop and improve immediate and long-term
business management, record keeping, and financial and accounting capability for DBEs and
other small businesses.
6. Providing services to help DBEs and other small businesses improve long-term development,
increase opportunities to participate in a variety of kinds of work, handle increasingly
significant projects, and achieve eventual self-sufficiency.
7. Establishing a program to assist new, start-up firms, particularly in fields in which DBE
participation has been historically low.
8. Assisting DBEs and other small businesses to develop their capability to utilize emerging
technology and conduct business through electronic media.
9. Implementing or developing a mentor -protege program.
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VI . Quotas (§26.43)
RECIPIENT will not use quotas or set -asides in anyway in the administration of the local agency
component of the DBE Program Plan.
VII DBE Liaison Officer (DBELO) (§26.25)
RECIPIENT has designated a DBE Liaison Officer. The DBELO is responsible for
implementing the DBE Program Plan, as it pertains to the RECIPIENT, and ensures that the
RECIPIENT is fully and properly advised concerning DBE Program Plan matters. The DBELO
has a staff of two professional employees who devote a portion of their time to the program. The
name, address, telephone number, electronic mail address, and an organization chart displaying
the DBELO's position in the organization are found in Attachment A to this Agreement. This
information will be updated annually and included on the DBE Annual Submittal Form.
The DBELO is responsible for developing, implementing, and monitoring the RECIPIENT's
requirements of the DBE Program Plan in coordination with other appropriate officials. Duties
and responsibilities include the following:
1. Gathers and reports statistical data and other information as required.
2. Reviews third party contracts and purchase requisitions for compliance with this program.
3. Works with all departments to determine projected Annual Anticipated DBE Participation
Level
4. Ensures that bid notices and requests for proposals are made available to DBEs in a timely
manner.
5.. Analyzes DBE participation and identifies ways to encourage participation through race -neutral
means.
6. Participates in pre -bid meetings.
7. Advises the CEO/governing body on DBE matters and DBE race -neutral issues.
8. Provides DBEs with information and recommends sources to assist in preparing bids,
obtaining bonding, and insurance.
9. Plans and participates in DBE training seminars.
10. Provides outreach to DBEs and community organizations to fully advise them of contracting
opportunities.
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VM Federal Financial Assistance Agreement Assurance (§26.13),
RECIPIENT will sign the following assurance, applicable to and to be included in all DOT -
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.). [Note — this language is to be used verbatim, as it is stated
in §26.13(a).]
IX DBE Financial Institutions (§26.27)
It is the policy of the RECIPIENT 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 DBELO. The
Caltrans' Disadvantaged Business Enterprise Program may offer assistance to the DBELO.
X Directory (§26.31)
RECIPIENT will refer interested persons to the Unified Certification Program DBE directory
available from the Caltrans Disadvantaged Business Enterprise Program's website at
www.dot.ca.gov/hq/bep.
XI Required Contract Clauses (§§26.13, 26.29)
RECIPIENT ensures that the following clauses or equivalent will be included in each DOT -
assisted prime contract:
A. CONTRACT ASSURANCE
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.
rd
B. PROMPT PAYMENT
Prompt Progress Payment to Subcontractors
A prime contractor or subcontractor shall pay to any subcontractor not later than 10-days
of receipt of each progress payment, in accordance with the provision in Section 7108.5
of the California Business and Professions Code concerning prompt payment to
subcontractors. The 10-days is applicable unless a longer period is agreed to in writing.
Any delay or postponement of payment over 30-days may take place only for good cause
and with the agency's prior written approval. Any violation of Section 7108.5 shall
subject the violating contractor or subcontractor to the penalties, sanctions, and other
remedies of that Section. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
Prompt Payment of Withheld Funds to Subcontractors
The local agency shall include either (1), (2), or (3) of the following provisions [local
agency equivalent will need Caltrans approval] in their federal -aid contracts to ensure
prompt and full payment of retainage [withheld funds] to subcontractors in compliance
with 49 CFR 26.29.
1. No retainage will be held by the agency from progress payments due to the prime
contractor. Prime contractors and subcontractors are prohibited from holding retainage
from subcontractors. Any delay or postponement of payment may take place only for
good cause and with the agency's prior written approval. Any violation of these
provisions shall subject the violating contractor or subcontractor to the penalties,
sanctions, and other remedies specified in Section 7108.5 of the California Business and
Professions Code. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
2. No retainage will be held by the agency from progress payments due the prime
contractor. Any retainage kept by the prime contractor or by a subcontractor must be
paid in full to the earning subcontractor in 30-ays after the subcontractor's work is
satisfactorily completed. Any delay or postponement of payment may take place only for
good cause and with the agency's prior written approval. Any violation of these
provisions shall subject the violating contractor or subcontractor to the penalties,
sanctions, and remedies specified in Section 7108.5 of the California Business and
Professions Code. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
5
3. The agency shall hold retainage from the prime contractor and shall make prompt and
regular incremental acceptances of portions, as determined by the agency of the contract
work and pay retainage to the prime contractor based on these acceptances. The prime
contractor or subcontractor shall return all monies withheld in retention from all
subcontractors within 30-days after receiving payment for work satisfactorily completed
and accepted including incremental acceptances of portions of the contract work by the
agency. Any delay or postponement of payment may take place only for good cause and
with the agency's prior written approval. Any violation of these provisions shall subject
the violating prime contractor to the penalties, sanctions, and other remedies specified in
Section 7108.5 of the California Business Professions Code. This requirement shall not
be construed to limit or impair any contractual, administrative, or judicial remedies,
otherwise available to the contractor or subcontractor in the event of. a dispute involving
late payment or nonpayment by the contractor; deficient subcontractor performance;
and/or noncompliance by a subcontractor. This clause applies to both DBE and non -DBE
subcontractors.
XIV Local Assistance Procedures Manual
The RECIPIENT will advertise, award and administer DOT -assisted contracts in accordance with
the most current published Local Assistance Procedures Manual (LAPM).
XV Bidders List (§26.11)
The RECIPIENT 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 the firms.
XVI Reporting to the DLAE
RECIPIENT will promptly submit a copy of the Local Agency Bidder -DBE Information (Exhibit
15-G or Exhibit 10-0 of the LAPM) to the DLAE at the time of execution of consultant or
construction contract award.
RECIPIENT will promptly submit a copy of the Final Utilization of DBE participation to the
DLAE using Exhibit 17-F of the LAPM immediately upon completion of the contract for each
consultant or construction contract.
XVII Certification (§26.83(a))
RECIPIENT ensures that only DBE firms currently certified by the California Unified
Certification Program will participate as DBEs on DOT -assisted contracts.
0
XVIH Confidentiality
RECIPIENT will safeguard from disclosure to third parties, information that may reasonably be
regarded as confidential business information consistent with federal, state, and local laws.
Leonis C. Malburg, Mayor
City of Vernon
Attest:
Bruce V. Malkenhorst, Jr., Acting City Clerk
Date:
Phone Number: (323) 583-8811, Ext. 260
Approved as to Form:
Eric T. Fresch, City Attorney
This California Department of Transportation's Disadvantaged Business Enterprise Program Plan
Implementation Agreement is accepted by:
Date:
[Signature of District Local Assistance Engineer]
[Print Name of District Local Assistance Engineer]
7
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro —Tern
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
May 30,.2006
-.0i — .
4305 Santa Fe Avenue, Vernon, California 90058
telephone (323) 583-8811
State of California
Department of Transportation
Attn: Kirk Cessna, Chief, Official of Local Assistance
Caltrans District 7
100 South Main Street, 12th Floor
Los Angeles, CA 90012
SOL BENUDIZ
Police Chief
MARK C. WHITWORTH
Acting Fire Chief
LEWIS J. POZZEBON
Director of Environmental Health
S. KEVIN WILSON
Director of Community Services
SHARON L. DUCKWORTH
Acting City Treasurer
Re: Disadvantaged Business Enterprise Race -Neutral Implementation
Agreement for Local Agencies
Dear Mr. Cessna:
Transmitted herewith are two executed agreements, as referenced above,
approved by City Council on May 24, 2006, through Resolution No. 9048.
Please return one fully executed original agreement to the
undersigned.
If you have any questions regarding this matter, please call Mr.
Sherwood Natsuhara at (323) 583-8811 ext. 305..
Very truly yours,
el ly --Gir
Deputy City Clerk
NG:dr
cc: S. Kevin Wilson
Resolution No. 9048
Agreement File No. 06-068
zglu�lvcly wubugtrial
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
4305 Santa Fe Avenue, Vernon, California 90058
telephone (323) 583-8811
May 30, 2006
Mr. Kirk Cessna
Department of Transportation, Office of Local Programs
100 S. Main Street
Los Angeles, California 90012
Dear Mr. Cessna:
SOL BENUDIZ
Police Chief
MARK C. WHITWORTH
Acting Fire Chief
LEWIS J. POZZEBON
Director of Environmental Health
S. KEVIN WILSON
Director of Community Services
SHARON L. DUCKWORTH
Acting City Treasurer
C-lc-6
The amount of the Annual Anticipated DBE Participation Level (AADPL) and methodology are
presented herein, in accordance with Title 49 of the Code of Federal Regulations Part 26, and the State of
California, Department of Transportation Disadvantaged Business Enterprise (DBE) Program Plan. The City of
Vernon submits its AADPL information and has established an AADPL of 13 % for the Federal Fiscal Year
2006-2007, beginning on October 1, 2006 and ending on September 30, 2007.
The City of Vernon herein submits Exhibit 9-13, Local Agency DBE Annual Submittal Form with
Attachment "A".
If you have any questions, please contact Sherwood Natsuhara of my staff at (323) '583-8811, Ext. 305.
Enclosures
Very trt y y s,
Awl"U":
l vi" n Wison, P.E.
Director of Community Services & Water
%gingludy wnbugriar
Local Assistance Procedures Manual
EXHIBIT 9-B
DBE Annual Submittal Form
Exhibit 9-13 Local Agency DBE Annual Submittal Form
TO: CALTRANS DISTRICT 7
Kirk Cessna, District Local Assistance Engineer
100 S. Main Street, Los Angeles, CA 90012
The amount of the Annual Anticipated DBE Participation Level (AADPL) and methodology are presented
herein, in accordance with Title 49 of the Code of Federal Regulations, Part 26, and the State of California,
Department of Transportation Disadvantaged Business Enterprise (DBE) Program Plan.
The City of Vernon, submits its AADPL information.
We have established an AADPL of 13 % for the Federal Fiscal Year 2006 /2007, beginning on October 1, 2006
and ending on September 30, 2007.
Methodoloa
See Attached Methodology
Disadvantaged Business Enterprise Liaison Officer (DBELO)
Samuel Kevin Wilson, 4305 Santa Fe Avenue, Vernon, CA 90058; Phone: (323) 583-8811, Ext. 245; Fax:
(323) 826-1435; E-mail: kwilson@ei.vemon.ca.us
Prompt Pay
Federal regulation (49 CFR 26.29) requires one of three methods be used in federal -aid contracts to ensure
prompt and full payment of any retainage, kept by the prime contractor or subcontractor, to a subcontractor.
(Attached is a listing of the three methods. On the attachment, the City of Vernon has designated which prompt
payment provision the local agency will use.)
Submitted by:
(Sin&Wi0iLoeffi.Agkncy Recipient
Samuel Kevin Wilson
(Print Name of Local Agency Recipient)
Reviewed by Caltrans:
(Signature of Caltrans District Local Assistance Engineer [DLAED
Distribution: (1) Original —DLAE DBE Annual Submittal Form (05/01/06)
(2) Copy -local agency after signing by DLAE
Date
(323) 583-8811, Ext 245
Phone Number
Date
Page 9-35
LPP 06-01 May 1, 2006
EXHIBIT 9-13 Local Assistance Procedures Manual
Local Agency DBE Annual Submittal Form
(Attachment)
Prompt Payment of Withheld Funds to Subcontractors
Federal regulation (49 CFR 26.29) requires one of the following three methods be used in federal -aid contracts to
ensure prompt and full payment of any retainage kept by the prime contractor or subcontractor to a subcontractor.
Please check the box of the method chosen by the local agency to ensure prompt and full payment of any
retainage.
❑ No retainage will be held by the agency from progress payments due to the prime contractor. Prime.
contractors and subcontractors are prohibited from holding retainage from subcontractors. Any delay or
postponement of payment may take place only for good cause and with the agency's prior written approval.
Any violation of these provisions shall subject the violating contractor or subcontractor to the penalties,
sanctions, and other remedies specified in Section 7108.5 of the California Business and Professions Code.
This requirement shall not be construed to limit or impair any contractual, administrative, or judicial
remedies, otherwise available to the contractor or subcontractor in the event of a dispute involving late
payment or nonpayment by the contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors
❑ No retainage will be held by the agency from progress payments due the prime contractor. Any retainage
kept by the prime contractor or by a subcontractor must be paid in full to the earning subcontractor in 30-
days after the subcontractor's work is satisfactorily completed. Any delay or postponement of payment may
take place only for good cause and with the agency's prior written approval. Any violation of these
provisions shall subject the violating contractor or subcontractor to the penalties, sanctions, and remedies
specified in Section 7108.5 of the California Business and Professions Code. This requirement shall not be
construed to limit or impair any contractual, administrative, or judicial remedies, otherwise available to the
contractor or subcontractor in. the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a subcontractor. This clause
applies to both DBE and non -DBE subcontractors.
Z The agency shall hold retainage from the prime contractor and shall make prompt and regular incremental
acceptances of portions, as determined by the agency of the contract work and pay retainage to the prime
contractor based on these acceptances. The prime contractor or subcontractor shall return all monies
withheld in retention from all subcontractors within 30 days after receiving payment for work satisfactorily
completed and accepted including incremental acceptances of portions of the contract work by the agency.
Any delay or postponement of payment may take place only for good cause and with the agency's prior
written approval. Any violation of these provisions shall subject the violating prime contractor to the
penalties, sanctions, and other remedies specified in Section 7108.5 of the California Business Professions
Code. This requirement shall not be construed to limit or impair any contractual, administrative, or judicial
remedies otherwise available to the contractor or subcontractor in the event of: a dispute involving late
payment or nonpayment by the contractor; deficient subcontractor performance and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
Page 9-36
May 1, 2006 LPP 06-01
ATTACHMENT A
DBE Goal Methodology 2006/2007
CITY OF VERNON
OVERALL ANNUAL GOAL -SETTING METHODOLOGY
I. FHWA ASSISTED CONTRACTING PROGRAM FOR FEDERAL FISCAL YEAR
2006/2007
The following represents the City of Vernon's projected FHWA funded contracts and
expenditures by work category for FFY 2006/2007:
% OF TOTAL
WORK
WORK CATEGORY
ESTIMATED
FEDERAL FUNDING
CATEGORY
DESCRIPTION
DOLLAR
AMOUNT
BY WORK
CATEGORY
A
Consulting Services
$1,800,000
100%
(54169)
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 2006/2007:
• For the numerator: DBE firms in LACDPW's bidders list
• For the denominator: Firms in LACDPW's bidders list
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, 2005.
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
A.
C.
"I
ATTACHMENT A
DBE Goal Methodology 2006/2007
The Base Figure resulting from this calculation is as follows:
Base Figure = (1.000) (DBEs in A)
Firms in A
Base Figure = (1.000) 12
76
Base Figure = (1.000) (0.158)
Base Figure = 0.158 (100) = 15.8%
Step 2: Adjusting the Base Figure
Current Capacity of DBEs Measured by Actual Attainment in the recent past
Years:
No reliable information available for past 3 years.
Disparity Study Results:
City of Vernon has not conducted any Disparity Study.
Other Neighbor Agencies Annual DBE Goal:
City of S.F. Springs - 5%
City of Downey - 12%
City of Pico Rivera - 14%
Resultant Goal Adjustment:
City of Los Angeles - 23%
These factors resulted in a downward adjustment of the Base Figure from 15.8% to 13%
for DBE participation in Fiscal Year 2006/2007.
UTILIZATION OF RACE -NEUTRAL METHODS
Of the overall annual 13% goal for DBE participation, the City of Vernon's projects
meeting 13% 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 consideration of DBEs
ATTACHMENT A
DBE Goal Methodology 2006/2007
and other small businesses.
IV. PUBLIC PARTICIPATION SETTING OVERALL ANNUAL DBE GOALS
The City of Vernon will publish a Public Notice in general circulation media, announcing
the proposed overall annual goals for the FY 2006-2007 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.
G
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SECTION 6: The Acting 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 24th day of May, 2006.
ATTEST:
BRUC V. M LKENHORST, JR.
Acti y Clerk
LEONIS C. MA URG,'Mayor
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 9048, was duly adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Wednesday, May 24, 2006, and thereafter was duly signed by the Mayor of
the City of Vernon.
BR CE MALKENHORST, JR.
Acting City Clerk
(SEAL)
- 5 -
DISADVANTAGED BUSINESS ENTERPRISE
RACE -NEUTRAL
IMPLEMENTATION AGREEMENT
FOR
LOCAL AGENCIES
DISADVANTAGED BUSINESS ENTERPRISE RACE -NEUTRAL
IWLEIVIENTATION AGREEMENT
For the City of Vernon, hereinafter referred to as "RECIPIENT."
Definition of Terms
The terms used in this agreement have the meanings defined in 49 CFR § 26.5.
II OBJECTIVE/POLICY STATEMENT (§26/1.26/23)
The RECIPIENT intends to receive federal financial assistance from the U. S. Department of
Transportation (DOT) through the California Department of Transportation (Caltrans), and as a
condition of receiving this assistance, the RECIPIENT will sign the California Department of
Transportation's Disadvantaged Business Enterprise Implementation Agreement (hereinafter
referred to as Agreement). The RECIPIENT agrees to implement the State of California,
Department of Transportation Disadvantaged Business Enterprise (DBE) Program Plan
(hereinafter referred to as the DBE Program Plan) as it pertains to local agencies. The DBE
Program Plan is based on U.S. Department of Transportation (DOT), 49 CFR, Part 26
requirements.
It is the policy of the RECIPIENT to ensure that DBEs, as defined in Part 26, have an equal
opportunity to receive and participate in DOT -assisted contracts. It is also their policy:
• To ensure nondiscrimination in the award and administration of DOT -assisted contracts.
• To create a level playing field on which DBE's can compete fairly for DOT -assisted
contracts.
• To ensure that their annual overall DBE participation percentage is narrowly tailored, in
accordance with applicable law.
• To ensure that only firms that fully meet 49 CFR, Part 26 eligibility standards are
permitted to participate as DBEs.
• To help remove barriers to the participation of DBEs in DOT -assisted contracts. '
• To assist the development of firms that can compete successfully in the market place
outside the DBE Program.
III Nondiscrimination (§26.7)
RECIPIENT 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 the local agency components of the DBE Program Plan, the RECIPIENT 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 Plan with respect to individuals of a particular race, color, sex, or national
origin.
IV Annual DBE Submittal Form (§26.21)
The RECIPIENT will provide to the Caltrans' District Local Assistance Engineer (DLAE) a
completed DBE Annual Submittal Form by June 1 of each year for the following Federal Fiscal
Year (FFY). This form includes an Annual Anticipated DBE Participation Level (AADPL),
methodology for establishing the AADPL, the name, phone number, and electronic mailing
address of the designated DBELO, and the choice of Prompt Pay Provision to be used by the
RECIPIENT for the following FFY.
V Race -Neutral Means of Meeting the Annual DBE Goal (§26.51)
RECIPIENT will assist Caltrans to achieve its Overall Statewide DBE Goal by race neutral
means that may include, but are not limited to the following:
1. Advertising solicitations, scheduling bidding periods and opening times, and packaging
quantities, specifications, and delivery schedules in ways that facilitate DBE and other small
business participation.
2. Providing assistance to DBE and small businesses in overcoming limitations such as inability
to obtain bonding or financing (e.g., by such means as simplifying the bonding process,
reducing bonding requirements, and providing services to help DBEs and other small
businesses obtain bonding and financing).
3. Providing technical assistance and other services to DBE and small businesses.
4. Providing information and communication programs on contracting procedures and specific
contract opportunities (e.g., ensuring the inclusion of DBEs and other small businesses on
recipient mailing lists of bidders; ensuring the dissemination to bidders on prime contracts of
lists of potential subcontractors including DBE's and small businesses; providing the
information in languages other than English, where appropriate).
5. Implementing a supportive services program to develop and improve immediate and long-term
business management, record keeping, and financial and accounting capability for DBEs and
other small businesses.
6. Providing services to help DBEs and other small businesses improve long-term development,
increase opportunities to participate in a variety of kinds of work, handle increasingly
significant projects, and achieve eventual self-sufficiency.
7. Establishing a program to assist new, start-up firms, particularly in fields in which DBE
participation has been historically low.
8. Assisting DBEs and other small businesses to develop their capability to utilize emerging
technology and conduct business through electronic media.
9. Implementing or developing a mentor -protege program.
2
VI Quotas (§26.43)
RECIPIENT will not use quotas or set -asides in any way in the administration of the local agency
component of the DBE Program Plan.
VII DBE Liaison Officer (DBELO) (§26.25)
RECIPIENT has designated a DBE Liaison Officer. The DBELO is responsible for
implementing the DBE Program Plan, as it pertains to the RECIPIENT, and ensures that the
RECIPIENT is fully and properly advised concerning DBE Program Plan matters. The DBELO
has a staff of two professional employees who devote a portion of their time to the program. The
name, address, telephone number, electronic mail address, and an organization chart displaying
the DBELO's position in the organization are found in Attachment A to this Agreement. This
information will be updated annually and included on the DBE Annual Submittal Form.
The DBELO is responsible for developing, implementing, and monitoring the RECIPIENT's
requirements of the DBE Program Plan in coordination with other appropriate officials. Duties
and responsibilities include the following:
1. Gathers and reports statistical data and other information as required.
2. Reviews third party contracts and purchase requisitions for compliance with this program.
3. Works with all departments to determine projected Annual Anticipated DBE Participation
Level
4. Ensures that bid notices and requests for proposals are made available to DBEs in a timely
manner.
5. Analyzes DBE participation and identifies ways to encourage participation through race -neutral
means.
6. Participates in pre -bid meetings.
7. Advises the CEO/governing body on DBE matters and DBE race -neutral issues.
8. Provides DBEs with information and recommends sources to assist in preparing bids,
obtaining bonding and insurance.
9. Plans and participates in DBE training seminars.
10. Provides outreach to DBEs and community organizations to fully advise them of contracting
opportunities.
3
VIH Federal Financial Assistance Agreement Assurance (§26.13)
RECIPIENT will sign the following assurance, applicable to and to be included in all DOT -
assisted contracts and their administration, as part of the program supplement agreement for each
proj ect.
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 obligafion 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.). [Note — this language is to be used verbatim, as it is stated
in §26.13(a).]
IX DBE Financial Institutions (§26.27)
It is the policy of the RECIPIENT 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 DBELO. The
Caltrans' Disadvantaged Business Enterprise Program may offer assistance to the DBELO.
X Directory (§26.31)
RECIPIENT will refer interested persons to the Unified Certification Program DBE directory
available from the Caltrans Disadvantaged Business Enterprise Program's website at
www.dot.ca.gov/hq/bep.
XI Required Contract Clauses (§§26.13, 26.29)
RECIPIENT ensures that the following clauses or equivalent will be included in each DOT -
assisted prime contract:
A. CONTRACT ASSURANCE
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.
Gl
B. PROMPT PAYMENT
Prompt Progress Payment to Subcontractors
A prime contractor or subcontractor shall pay to any subcontractor not later than 10-days
of receipt of each progress payment, in accordance with the provision in Section 7108.5
of the California Business and Professions Code conceming.prompt payment to
subcontractors. The 10-days is applicable unless a longer period is agreed to in writing.
Any delay or postponement of payment over 30-days may take place only for good cause
and with the agency's prior written approval. Any violation of Section 7108.5 shall
subject the violating contractor or subcontractor to the penalties, sanctions, and other
remedies of that Section. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
Prompt Payment of Withheld Funds to Subcontractors
The local agency shall include either (1), (2), or (3) of the following provisions [local
agency equivalent will need Caltrans approval] in their federal -aid contracts to ensure
prompt and full payment of retainage [withheld funds] to subcontractors in compliance
with 49 CFR 26.29.
1. No retainage will be held by the agency from progress payments due to the prime
contractor. Prime contractors and subcontractors are prohibited from holding retainage
from subcontractors. Any delay or postponement of payment may take place only for
good cause and with the agency's prior written approval. Any violation of these
provisions shall subject the violating contractor or subcontractor to the penalties,
sanctions, and other remedies specified in Section 7108.5 of the California Business and
Professions Code. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
2. No retainage will be held by the agency from progress payments due the prime
contractor. Any retainage kept by the prime contractor or by a subcontractor must be
paid in full to the earning subcontractor in 30-ays after the subcontractor's work is
satisfactorily completed. Any delay or postponement of payment may take place only for
good cause and with the agency's prior written approval. Any violation of these
provisions shall subject the violating contractor or subcontractor to the penalties,
sanctions, and remedies specified in Section 7108.5 of the California Business and
Professions Code. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
5
3. The agency shall hold retainage from the prime contractor and shall make prompt and
regular incremental acceptances of portions, as determined by the agency of the contract
work and pay retainage to the prime contractor based on these acceptances. The prime
contractor or subcontractor shall return all monies withheld in retention from all
subcontractors within 30-days after receiving payment for work satisfactorily completed
and accepted including incremental acceptances of portions of the contract work by the
agency. Any delay or postponement of payment may take place only for good cause and
with the agency's prior written approval. Any violation of these provisions shall subject
the violating prime contractor to the penalties, sanctions, and other remedies specified in
Section 7108.5 of the California Business Professions Code. This requirement shall not
be construed to limit or impair any contractual, administrative, or judicial remedies,
otherwise available to the contractor or subcontractor in the event of a dispute involving
late payment or nonpayment by the contractor; deficient subcontractor performance;
and/or noncompliance by a subcontractor. This clause applies to both DBE and non -DBE
subcontractors.
XIV Local Assistance Procedures Manual
The RECIPIENT will advertise, award and administer DOT -assisted contracts in accordance with
the most current published Local Assistance Procedures Manual (LAPM).
XV Bidders List (§26.11)
The RECIPIENT 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 the firms.
XVI Reporting to the DLAE
RECIPIENT will promptly submit a copy of the Local Agency Bidder -DBE Information (Exhibit
15-G or Exhibit 10-0 of the LAPM) to the DLAE at the time of execution of consultant or
construction contract award.
RECIPIENT will promptly submit a copy of the Final Utilization of DBE participation to the
DLAE using Exhibit 17-F of the LAPM immediately upon completion of the contract for each
consultant or construction contract.
XVII Certification (§26.83(a))
RECIPIENT ensures that only DBE firms currently certified by the California Unified
Certification Program will participate as DBEs on DOT -assisted contracts.
IN
XVM Confidentiafity
RECIPIENT will safeguard from disclosure to third parties, information that may reasonably be
regarded as confidential business information consistent with federal, state, and local laws.
Leonis C. Malburg, Mayor
City of Vernon
Attest:
Bruce V. Malkenhorst, Jr., Acting City Clerk
Date:
Phone Number: (323) 583-8811, Ext. 260
Approved as to Form:
Eric T. Fresch, City Attorney
This California Department of Transportation's Disadvantaged Business Enterprise Program Plan
Implementation Agreement is accepted by:
Date:
[Signature of District Local Assistance Engineer]
[Print Name of District Local Assistance Engineer]
7
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DISADVANTAGED BUSINESS ENTERPRISE
RACE -NEUTRAL
IMPLEMENTATION AGREEMENT
FOR
LOCAL AGENCIES
DISADVANTAGED BUSINESS ENTERPRISE RACE -NEUTRAL
IMPLEMENTATION AGREEMENT
For the City of Vernon, hereinafter referred to as "RECIPIENT."
Definition of Terms
The terms used in this agreement have the meanings defined in 49 CFR § 26.5.
H OBJECTIVE/POLICY STATEMENT (§26/1. 26/23)
The RECIPIENT intends to receive federal financial assistance from the U. S. Department of
Transportation (DOT) through the California Department of Transportation (Caltrans), and as a
condition of receiving this assistance, the RECIPIENT will sign the California Department of
Transportation's Disadvantaged Business Enterprise Implementation Agreement (hereinafter
referred to as Agreement). The RECIPIENT agrees to implement the State of California,
Department of Transportation Disadvantaged Business Enterprise (DBE) Program Plan
(hereinafter referred to as the DBE Program Plan) as it pertains to local agencies. The DBE
Program Plan is based on U.S. Department of Transportation (DOT), 49 CFR, Part 26
requirements.
It is the policy of the RECIPIENT to ensure that DBEs, as defined in Part 26, have an equal
opportunity to receive and participate in DOT -assisted contracts. It is also their policy:
• To ensure nondiscrimination in the award and administration of DOT -assisted contracts.
• To create a level playing field on which DBE's can compete fairly for DOT -assisted
contracts.
• To ensure that their annual overall DBE participation percentage is narrowly tailored, in
accordance with applicable law.
• To ensure that only firms that fully meet 49 CFR, Part 26 eligibility standards are
permitted to participate as DBEs.
• To help remove barriers to the participation of DBEs in DOT -assisted contracts.
• To assist the development of firms that can compete successfully in the market place
outside the DBE Program.
III Nondiscrimination (§26.7)
RECIPIENT 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 the local agency components of the DBE Program Plan, the RECIPIENT 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 Plan with respect to individuals of a particular race, color, sex, or national
origin.
IV Annual DBE Submittal Form (§26.21)
The RECIPIENT will provide to the Caltrans' District Local Assistance Engineer (DLAE) a
completed DBE Annual Submittal Form by June 1 of each year for the following Federal Fiscal
Year (FFY). This form includes an Annual Anticipated DBE Participation Level (AADPL),
methodology for establishing the AADPL, the name, phone number, and electronic mailing
address of the designated DBELO, and the choice of Prompt Pay Provision to be used by the
RECIPIENT for the following FFY.
V Race -Neutral Means of Meeting the Annual DBE Goal (§26.51)
RECIPIENT will assist Caltrans to achieve its Overall Statewide DBE Goal by race neutral
means that may include, but are not limited to the following:
1. Advertising solicitations, scheduling bidding periods and opening times, and packaging
quantities, specifications, and delivery schedules in ways that facilitate DBE and other small
business participation.
2. Providing assistance to DBE and small businesses in overcoming limitations such as inability
to obtain bonding or financing (e.g., by such means as simplifying the bonding process,
reducing bonding requirements, and providing services to help DBEs and other small
businesses obtain bonding and financing).
3. Providing technical assistance and other services to DBE and small businesses.
4. Providing information and communication programs on contracting procedures and specific
contract opportunities (e.g., ensuring the inclusion of DBEs and other small businesses on
recipient mailing lists of bidders; ensuring the dissemination to bidders on prime contracts of
lists of potential subcontractors including DBE's and small businesses; providing the
information in languages other than English, where appropriate).
5. Implementing a supportive services program to develop and improve immediate and long-term
business management, record keeping, and financial and accounting capability for DBEs and
other small businesses.
6. Providing services to help DBEs and other small businesses improve long-term development,
increase opportunities to participate in a variety of kinds of work, handle increasingly
significant projects, and achieve eventual self-sufficiency.
7. Establishing a program to assist new, start-up firms, particularly in fields in which DBE
participation has been historically low.
8. Assisting DBEs and other small businesses to develop their capability to utilize emerging
technology and conduct business through electronic media.
9. Implementing or developing a mentor-prot6g6 program.
2
VI Quotas (§26.43)
RECIPIENT will not use quotas or set -asides in any way in the administration of the local agency
component of the DBE Program Plan.
VH DBE Liaison Officer (DBELO) (§26.25)
RECIPIENT has designated a DBE Liaison Officer. The DBELO is responsible for
implementing the DBE Program Plan, as it pertains to the RECIPIENT, and ensures that the
RECIPIENT is fully and properly advised concerning DBE Program Plan matters. The DBELO
has a staff of two professional employees who devote a portion of their time to the program. The
name, address, telephone number, electronic mail address, and an organization chart displaying
the DBELO's position in the organization are found in Attachment A to this Agreement. This
information will be updated annually and included on the DBE Annual Submittal Form.
The DBELO is responsible for developing, implementing, and monitoring the RECIPIENT's
requirements of the DBE Program Plan in coordination with other appropriate officials. Duties
and responsibilities include the following:
1. Gathers and reports statistical data and other information as required.
2. Reviews third party contracts and purchase requisitions for compliance with this program.
3. Works with all departments to determine projected Annual Anticipated DBE Participation
Level.
4. Ensures that bid notices and requests for proposals are made available to DBEs in a timely
manner.
5. Analyzes DBE participation and identifies ways to encourage participation through race -neutral
means.
6. Participates in pre -bid meetings.
7. Advises the CEO/governing body on DBE matters and DBE race -neutral issues.
8. Provides DBEs with information and recommends sources to assist in preparing bids,
obtaining bonding and insurance.
9. Plans and participates in DBE training seminars.
10. Provides outreach to DBEs and community organizations to fully advise them of contracting
opportunities.
9
VIII Federal Financial Assistance Agreement Assurance (§26.13)
RECIPIENT will sign the following assurance, applicable to and to be included in all DOT -
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 cant' out its terms shall be treated as a violation of this
agreement. Upon notification to the recipient of its failure to cant' 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.). [Note — this language is to be used verbatim, as it is stated
in §26.13(a).]
IX DBE Financial Institutions (§26.27)
It is the policy of the RECIPIENT 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 DBELO. The
Caltrans' Disadvantaged Business Enterprise Program may offer assistance to the DBELO.
X Directory (§26.31)
RECIPIENT will refer interested persons to the Unified Certification Program DBE directory
available from the Caltrans Disadvantaged Business Enterprise Program's website at
www.dot.ca.gov/hq/bep.
XI Required Contract Clauses (§§26.13, 26.29)
RECIPIENT ensures that the following clauses or equivalent will be included in each DOT -
assisted prime contract:
A. CONTRACT ASSURANCE
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.
0
B. PROMPT PAYMENT
Prompt Progress Payment to Subcontractors
A prime contractor or subcontractor shall pay to any subcontractor not later than 10-days
of receipt of each progress payment, in accordance with the provision in Section 7108.5
of the California Business and Professions Code concerning prompt payment to
subcontractors. The 10-days is applicable unless a longer period is agreed to in writing.
Any delay or postponement of payment over 30-days may take place only for good cause
and with the agency's prior written approval. Any violation of Section 7108.5 shall
subject the violating contractor or subcontractor to the penalties, sanctions, and other
remedies of that Section. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
Prompt Payment of Withheld Funds to Subcontractors
The local agency shall include either (1), (2), or (3) of the following provisions [local
agency equivalent will need Caltrans approval] in their federal -aid contracts to ensure
prompt and full payment of retainage [withheld funds] to subcontractors in compliance
with 49 CFR 26.29.
1. No retainage will be held by the agency from progress payments due to the prime
contractor. Prime contractors and subcontractors are prohibited from holding retainage
from subcontractors. Any delay or postponement of payment may take place only for
good cause and with the agency's prior written approval. Any violation of these
provisions shall subject the violating contractor or subcontractor to the penalties,
sanctions, and other remedies specified in Section 7108.5 of the California Business and
Professions Code. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
2. No retainage will be held by the agency from progress payments due the prime
contractor. Any retainage kept by the prime contractor or by a subcontractor must be
paid in full to the earning subcontractor in 30-ays after the subcontractor's work is
satisfactorily completed. Any delay or postponement of payment may take place only for
good cause and with the agency's prior written approval. Any violation of these
provisions shall subject the violating contractor or subcontractor to the penalties,
sanctions, and remedies specified in Section 7108.5 of the California Business and
Professions Code. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
3. The agency shall hold retainage from the prime contractor and shall make prompt and
regular incremental acceptances of portions, as determined by the agency of the contract
work and pay retainage to the prime contractor based on these acceptances. The prime
contractor or subcontractor shall return all monies withheld in retention from all
subcontractors within 30-days after receiving payment for work satisfactorily completed
and accepted including incremental acceptances of portions of the contract work by the
agency. Any delay or postponement of payment may take place only for good cause and
with the agency's prior written approval. Any violation of these provisions shall subject
the violating prime contractor to the penalties, sanctions, and other remedies specified in
Section 7108.5 of the California Business Professions Code. This requirement shall not
be construed to limit or impair any contractual, administrative, or judicial remedies,
otherwise available to the contractor or subcontractor in the event of. a dispute involving
late payment or nonpayment by the contractor; deficient subcontractor performance;
and/or noncompliance by a subcontractor. This clause applies to both DBE and non -DBE
subcontractors.
XIV Local Assistance Procedures Manual
The RECIPIENT will advertise, award and administer DOT -assisted contracts in accordance with
the most current published Local Assistance Procedures Manual (LAPM).
XV Bidders List (§26.11)
The RECIPIENT 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 the firms.
XVI Reporting to the DLAE
RECIPIENT will promptly submit a copy of the Local Agency Bidder -DBE Information (Exhibit
15-G or Exhibit 10-0 of the LAPM) to the DLAE at the time of execution of consultant or
construction contract award.
RECIPIENT will promptly submit a copy of the Final Utilization of DBE participation to the
DLAE using Exhibit 17-F of the LAPM immediately upon completion of the contract for each
consultant or construction contract.
XVH Certification (§26.83(a))
RECIPIENT ensures that only DBE firms currently certified by the California Unified
Certification Program will participate as DBEs on DOT -assisted contracts.
0
XVIH Confidentiality
RECIPIENT will safeguard from disclosure to third parties, information that may reasonably be
regarded as confidential business information consistent with federal, state, and local laws.
Leonis C. Malburg, Mayor
City of Vernon
Attest:
Bruc V. Malk nhorst, Jr., Acting City Clerk
Date:
Phone Number: (323) 583-8811, Ext. 260
Approved as to Form:
Eric T. esch, -ty Attorney
This California Department of Transportation's Disadvantaged Business Enterprise Program Plan
Implementation Agreement is accepted by:
[Signature of District Local Assistance Engineer]
[Print Name of District Local Assistance Engineer]
Date:
7
HA �l I
N
l
RECEIVED A COPY OF
THE AGREEMENT
FROM COMMUNITY
SERVICES
STATE OF CALIFORNIA—BUSINESS. TRANSPORTAT ' ND HOUSING AGENCY ARNOLD SCHWARZENEGGER Govemor
i.
DEPARTMENT OF TRANSPORTATION
District 7, Office of Local Assistance and Alameda
Corridors
100 S. Main St. 12'' Floor
Los Angeles, CA 90012
Phone (213)897-0784
Fax (213) 897- 2999
June 9, 2006
Mr. Samuel Kevin Wilson
Director of Community Services & Water
City of Vernon
4305 Santa Fe Ave.
Vernon, CA 90058
Attention: Sherwood Natsuhara
Dear Mr. Wilson:
JUN 15 2006
flh servers
Flex your power!
Be energy efcient!
DBE Race -Neutral Implementation Agreement
Annual Submittal Form for FFY 2006-2007
We have reviewed your DBE Race -Neutral Implementation Agreement & Annual Submittal
Form for FFY 2006-2007. It meets the basic requirements of 49 CFR Part 26 and it is approved.
Attachment is an original signed DBE Race -Neutral Implementation Agreement & a copy of
Annual Submittal Form for FFY 2006-2007.
Should you have any questions, please contact Prem Goel of my staff at (213) 897-2942.
Sincerely,
lip /t-
KIRK CESSNA, Chief
Office of Local Assistance
and Alameda Corridors
Attachment
"Caltrans improves mobility across California"
c•
r
m
CITY COUNCIL
LEONIS C. MALBURG
Mayor
,V
THOMAS A. YBARRA
Mayor Pro -Tern
WM. `BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
�5 _ .
4305 Santa Fe Avenue, Vernon, California 90058
telephone (323) 583-8811
May 30, 2006
Mr. Kirk Cessna
Department of Transportation, Office of Local Programs
100 S. Main Street
Los Angeles, California 90012
Dear Mr. Cessna:
SOL BENUDIZ
Police Chief
MARK C. WHITWORTH
Acting Fire Chief
LEWIS J. POZZEBON
Director of Environmental Health
S. KEVIN WILSON
Director of Community Services
SHARON L. DUCKWORTH
Acting City Treasurer
C-lc-6
The amount of the Annual Anticipated DBE Participation Level (AADPL) and methodology are
presented herein, in accordance with Title 49 of the Code of Federal Regulations Part 26, and the State of
California, Department of Transportation Disadvantaged Business Enterprise (DBE) Program Plan. The City of
Vernon submits its AADPL information and has established an AADPL of 13 % for the Federal Fiscal Year
2006-2007, beginning on October 1, 2006 and ending on September 30, 2007.
The City of Vernon herein submits Exhibit 9-13, Local Agency DBE Annual Submittal Form with
Attachment "A".
If you have any questions, please contact Sherwood Natsuhara of my staff at (323) 583-8811, Ext. 305.
Very tAvin
A.
S ueison, P.E.
Director of Community Services & Water
Enclosures
c[uiverubu9triur
,
Local Assistance Procedures M'' dal EXHIBIT 9-B
— DBE Annual Submittal Form
Exhibit 9-13 Local Agency DBE Annual Submittal Form
TO: CALTRANS DISTRICT 7
Kirk Cessna, District Local Assistance Engineer
100 S. Main Street, Los Angeles, CA 90012
The amount of the Annual Anticipated DBE Participation Level (AADPL) and methodology are presented
herein, in accordance with Title 49 of the Code of Federal Regulations, Part 26, and the State of California,
Department of Transportation Disadvantaged Business Enterprise (DBE) Program Plan.
The City of Vernon, submits its AADPL information.
We have established an AADPL of 13 % for the Federal Fiscal Year 2006 /2007, beginning on October 1, 2006
and ending on September 30, 2007.
Methodology
See Attached Methodology
Disadvantaged Business Enterprise Liaison Officer (DBELO)
Samuel Kevin Wilson, 4305 Santa Fe Avenue, Vernon, CA 90058; Phone: (323) 583-8811, Ext. 245; Fax:
(323) 826-1435; E-mail: kwilson@ci.vernon.ca.us
Prompt Pay
Federal regulation (49 CFR 26.29) requires one of three methods be used in federal -aid contracts to ensure
prompt and full payment of any retainage, kept by the prime contractor or subcontractor, to a subcontractor.
(Attached is a listing of the three methods. On the attachment, the City of Vernon has designated which prompt
payment provision the local agency will use.)
Submitted by:
(S'pdW 41,661 Agency Recipient
Samuel Kevin Wilson
(Print Name of Local Agency Recipient)
Reviewed by Caltrans:
//t� e A
(Signature of Caltr ns District Local Assistance Engineer [DLAE])
Distribution: (1) Original —DLAE DBE Annual Submittal Form (05/01/06)
(2) Copy -local agency after signing by DLAE
Date
(323) 583-8811, Ext 245
Phone Number
(,,/ 0 J/" t' V 6,
Date
Page 9-35
LPP 06-01
May 1, 2006
EXHIBIT 9-B Local )stance Procedures Manual
Local Agency DBE Annual Submittal Form
(Attachment)
Prompt Payment of Withheld Funds to Subcontractors
Federal regulation (49 CFR 26.29) requires one of the following three methods be used in federal -aid contracts to
ensure prompt and full payment of any retainage kept by the prime contractor or subcontractor to a subcontractor.
Please check the box of the method chosen by the local agency to ensure prompt and full payment of any
retainage.
❑ No retainage will be held by the agency from progress payments due to the prime contractor. Prime
contractors and subcontractors are prohibited from holding retainage from subcontractors. Any delay or
postponement of payment may take place only for good cause and with the agency's prior written approval.
Any violation of these provisions shall subject the violating contractor or subcontractor to the penalties,
sanctions, and other remedies specified in Section 7108.5 of the California Business and Professions Code.
This requirement shall not be construed to limit or impair any contractual, administrative, or judicial
remedies, otherwise available to the contractor or subcontractor in the event of a dispute involving late
payment or nonpayment by the contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors
❑ No retainage will be held by the agency from progress payments due the prime contractor. Any retainage
kept by the prime contractor or by a subcontractor must be paid in full to the earning subcontractor in 30-
days after the subcontractor's work is satisfactorily completed. Any delay or postponement of payment may
take place only for good cause and with the agency's prior written approval. Any violation of these
provisions shall subject the violating contractor or subcontractor to the penalties, sanctions, and remedies
specified in Section 7108.5 of the California Business and Professions Code. This requirement shall not be
construed to limit or impair any contractual, administrative, or judicial remedies, otherwise available to the
contractor or subcontractor in the event of a dispute involving late payment or nonpayment by the
contractor, deficient subcontractor performance, and/or noncompliance by a subcontractor. This clause
applies to both DBE and non -DBE subcontractors.
® The agency shall hold retainage from the prime contractor and shall make prompt and regular incremental
acceptances of portions, as determined by the agency of the contract work and pay retainage to the prime
contractor based on these acceptances. The prime contractor or subcontractor shall return all monies
withheld in retention from all subcontractors within 30 days after receiving payment for work satisfactorily
completed and accepted including incremental acceptances of portions of the contract work by the agency.
Any delay or postponement of payment may take place only for good cause and with the agency's prior
written approval. Any violation of these provisions shall subject the violating prime contractor to the
penalties, sanctions, and other remedies specified in Section 7108.5 of the California Business Professions
Code. This requirement shall not be construed to limit or impair any contractual, administrative, or judicial
remedies otherwise available to the contractor or subcontractor in the event of, a dispute involving late
payment or nonpayment by the contractor; deficient subcontractor performance and/or noncompliance by a
subcontractor. This clause applies to both DBE and non -DBE subcontractors.
Page 9-36
May 1, 2006 LPP 06-01
IN
- ATTACHMENT A
Methodology 2006/2007
CITY OF VERNON
OVERALL PARTICIPATION AVAILABILITY METHODOLOGY
I. FHWA ASSISTED CONTRACTING PROGRAM FOR FEDERAL FISCAL YEAR
2006/2007
The following represents the City of Vernon's projected FHWA funded contracts and
expenditures by work category for FFY 2006/2007:
ESTIMATED
% OF TOTAL
WORK
WORK CATEGORY
FEDERAL FUNDING
CATEGORY
DESCRIPTION
DOLLAR
BY WORK
AMOUNT
CATEGORY
A
Consulting Services
$1, 800,000
100%
(541690)
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 2006/2007:
? For the numerator: DBE firms in LACDPW's bidders list
? For the denominator: Firms in LACDPW's bidders list
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, 2005.
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
JUN 8 2006 D
VV ,
x
ATTACHMENT A
Methodology 2006/2007
The Base Figure resulting from this calculation is as follows:
Base Figure = (1.000) (DBEs in A)
Firms in A
Base Figure = (1.000) 12
76
Base Figure = (1.000) (0.158)
Base Figure = 0.158 (100) = 15.8%
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 AADPL:
City of S.F. Springs 5% City of Los Angeles - 23%
City of Downey - 12%
City of Pico Rivera - 14%
D. Resultant AADPL Adjustment:
These factors resulted in a downward adjustment of the Base Figure from 15.8% to 13%
for DBE participation in Fiscal Year 2006/2007.
Q�
1
j J U N 8 2006
I