ITEM 6-D

City Council Meeting: January 9, 2001 Santa Monica, California

To: Mayor and City Council

From: City Staff

Subject: Recommendation to Adopt the Attached Resolution Approving the Disadvantaged Business Enterprise Program for the City of Santa Monica Engineering Division for Projects that Receive Federal Highway Administration Funding

Introduction

This report recommends that the City Council adopt a resolution approving the Disadvantaged Business Enterprise Program for the City of Santa Monica Engineering Division for certain projects that receive federal funding from the Federal Highway Administration.

Background

Each year, the City receives federal funds for projects including street repairs and resurfacing, traffic signals or lighting, bridge replacement, and transportation enhancements. The Code of Federal Regulations (CFR) No. 49, Part 26, requires that Disadvantaged Business Enterprises (DBEs) be provided with the opportunity to participate in federally funded projects. In order to meet this requirement, the Federal Highway Administration (FHWA) mandates that local agencies receiving these federal funds develop a program that establishes acceptable goals for DBE participation and helps remove barriers to the participation of DBEs in FHWA assisted contracts.

Discussion

The City has developed a DBE program to comply with this Federal regulation. Caltrans, the agency responsible for administering the Federal Highway Administration funds, has recently conducted a review of the City of Santa Monica’s DBE program for FHWA-assisted contracts. They determined that the DBE Program and goal setting methodology meets the basic requirements of CFR No. 49, Part 26. In accordance with Caltrans guidelines, the DBE Program will establish annual goals for DBE participation in FHWA funded projects that have subcontracting possibilities. The annual goal for the City Of Santa Monica Engineering Division for Federal Fiscal Year 2000-2001 is 10%. In concert with FHWA requirements, a notice of the goal and goal setting methodology was published in local papers and minority focus publications on November 17, 2000, advising the public that they may view the goal and methodology, and submit comments for a period of 45 days following publication.

The Engineering Support Services Supervisor has been designated as the DBE Liaison Officer. In this capacity, the Support Services Supervisor is responsible for monitoring all Engineering projects that receive FHWA funds, and implementing all aspects of the DBE program. In the event that the DBE goals and requirements of a project are not met, the DBE Liaison Officer, under the direction of the City Engineer, will have the authority to stop the project and suspend payments until a resolution is secured. Previously, the City’s Purchasing Division administered compliance with these DBE goals. New program requirements mandated by Caltrans have facilitated development of a more extensive program managed by the Engineering Division, which administers Federal Highway Administration Funds for engineering projects.

Budget/Financial Impact

There is no budget impact associated with the adoption of this program.

Recommendation

Staff recommends that the City Council adopt the attached resolution authorizing the adoption of the DBE program for the City Of Santa Monica Engineering Division.

Prepared by: Craig Perkins, Director, Environmental and Public Works Mgmt

Tony Antich, P.E., City Engineer

Ruth Odell, Engineering Support Services Supervisor

ATTACHMENT: Resolution (See below.)

RESOLUTION NUMBER (CCS)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA

ADOPTING THE CITY OF SANTA MONICA ENGINEERING DIVISION

DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM

WHEREAS, Federal rules and regulations require the City of Santa Monica to adopt a Disadvantaged Business Enterprise Program in order to be eligible to receive federal financial assistance; and

WHEREAS, the participation in federally assisted projects by disadvantaged businesses is encouraged by policies incorporated in the City of Santa Monica Engineering Division’s Disadvantaged Business Enterprise Program,

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Of Santa Monica Engineering Division Disadvantaged Business Enterprise Program, attached hereto and incorporated by reference, is adopted.

Section 2. The City Engineer’s office shall submit the Disadvantaged Business Enterprise Program to appropriate federal agencies for their approval.

Section 3. The City Clerk shall certify to the adoption of this resolution, and thenceforth the same shall be in full force and effect.

APPROVED AS TO FORM:

__________________________
MARSHA JONES MOUTRIE

City Attorney