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HomeMy WebLinkAboutRES NO 179-94 RESOLUTION NO. 1 T 9" 9 4 RESOLUTION ADOPTING THE CITY OF BAKERSFIELD DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM FOR USE ON FEDERALLY FUNDED HIGHWAY IMPROVEMENT PROJECTS IN THE CITY OF BAKERSFIELD FOR FISCAL YEAR 1994-95. WHEREAS, the Federal Highway Administration issued regulations on April 27, 1981, regarding the use of minority and women-owned businesses on contracts funded with Federal monies; and WHEREAS, these regulations require that all recipients of United States Department of Transportation funds develop specific plans for the use of Disadvantaged Business Enterprises on Federally funded projects; and WHEREAS, City of Bakersfield has recently completed the required review and calculated a revised Disadvantaged Business Enterprise minimum goal of 10% based upon the previous year's experience with the plan; NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Bakersfield hereby adopts the revised City of Bakersfield Disadvantaged Business Enterprise Program for use on Federally funded highway improvement projects administered by City of Bakersfield during the year beginning October 1, 1994; BE IT FURTHER RESOLVED that the Public Works Director is hereby authorized to sign and submit the Program to Caltrans. ......... ooooo .......... ORIGINAL I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on ~NV 15 ~9% , by the following vote: AYES: COUNCILMEMBERS McDERMOTT, EDWARDS, DeMONO, SMITH, BRUNNI, ROWLES, SALVAGGIO NOES: COUNCILMEMBERS ~4)/3 &: ABSTAIN: COUNCILMEMBERS j~/~ ~ ABSENT: C.,OUNCILMEMBEF~ Assistant CITY CLERK and Tdf the Council of the e APPROVED/~ ~0¥ 1 6 ~9% MAYOR of the City of Bakersfield APPROVED as to form: JUDY SKOUSEN CITY ATTORNEY of the City of Bakersfield ROBERT M. SHERFY ~' f ASSISTANT CITY ATTORNEY /f RMS:dh 11/94 resolutions\DBE.94 ORiGI~,!AL BAKERSFIELD DISADVANTAGED BUSINESS ENTERPRISE PROGRAM CITY OF BAKERSFIELD CALIFORNIA Policy Statement It is the policy of the City of Bakersfield that DBE's, as defined in 49 CFR Part 23, shall have the maximum opportunity to participate in the performance of contracts assisted in whole or in part by funds granted by the DOT. The City of Bakersfield policies prohibit discrimination against any person because of race, color, sex, or national origin, in the award or performance of any contract subject to the requirements of 49 CFR Part 23. The City of Bakersfield will require its employees, agents, and contractors to adhere to the provisions of this program. This policy statement is disseminated to the Airport Commissioners and all departments of the commission, to organizations of minority and disadvantaged businesses and non minority business and community organizations of the City of Bakersfield. Raul ~R~a'/~~ Public Works Director Darnell W. Ha¥~ Business Manager ORiGI~-IAL BAKERSFIELD DISADVANTAGED BUSINESS ENTERPRISE ?ROGRAM Disadvantaged Business Enterprise ("DBE") Liaison Officer Disadvantaged Business Enterprises ("DBE"). Darnell Haynes, Public Works Business Manager, (805) 326-3724, is the DBE Liaison Officer for the City of Bakersfield and shall report to the Public Works Director on all matters pertaining to his duties as DBE Liaison Officer. Mr. Haynes will be assigned such staff as is necessary to implement the provisions of 49CFR Section 23 and such other DBE programs as may be required. The reporting structure of staff is shown on Attachment "A". Mr. Haynes will be available to City Hall during normal business hours (8:00 a.m. to 5:00 p.m.), Monday through Friday, or in writing, to him at the Public Works Department, 1501 Truxtun Avenue, Bakersfield, California 93301. II. Duties of the DBE Liaison Officer The DBE Liaison Officer shall develop, manage and implement the DBE Program on a day-to-day basis. The Liaison Officer shall: Be responsible for keeping current the program outlined in this document and ensuring that the program complies with the letter of the law and the intent of 49 CFR Part 23. In consultation and cooperation with the functional unit involved, arrange solicitations, time for the presentation of bids, quantities, specifications, and delivery schedules, so as to facilitate the participation of DBEs. Serve as coordinating officer for the financial, legal, engineering and purchasing functions on items pertaining to DBE matters. Investigate the full extent of services offered by banks owned and controlled by Disadvantaged Business Enterprises and ensure that where appropriate, Bakersfield utilizes said banks. Maintain an updated listing of DBEs certified by California Department of Transportation. Utilize the listing of DBEs certified by California Department of Transportation. Said listing to be made available to all bidders on federally funded projects. listing shall include, at a minimum, the following information: Name, address, telephone number, DBE ownership, type of work performed by firm. Such Evaluate, and verify as necessary, the eligibility of all firms and joint ventures who either claim to be or others claiming to be DBE owned and operated. 2 OF;,G II,~L III. Approve any removal and/or substitution of a Disadvantaged Business Enterprise during contract performance subject to limitations of state law, and prior to approval of substitution and/or removal of DBE, required to the extent permitted by law, prime contractors to prove performance of good faith efforts to replace the DBE with another eligible DBE. Establish overall Bakersfield goals for Disadvantaged Business Enterprises. Goals shall be evaluated on September 30 of each year and adjusted as necessary. Establish individual project goals for Disadvantaged Business Enterprises. All federally funded projects will be evaluated for the appropriateness of goals. The City of Bakersfield 1994-95 DBE goal update is shown on Attachment "C" with supporting documentation. Maintain such documentation as is necessary to verify Bakersfield's performance of the above activities. Procedures to ensure DBE's have an Equitable Opportunity to Compete for Contracts and Subcontracts The City of Bakersfield will develop and use affirmative action techniques to facilitate DBE participation in FAA-assisted contracting. These techniques will include carrying out information and communication programs on contracting procedures and specific opportunities in a timely manner, with such programs being bilingual where appropriate. The following are other affirmative actions the City of Bakersfield may take in order to facilitate DBE participation: 1. Provide information to DBE firms about the sponsor's organization, functions, and full range of contractual needs· Offer instructions and clarification on bid specifications, the sponsor's procurement policy, procedures, and general bidding requirements. Maintain a file of successful bid documents from past procurements and permit DBE's to review and evaluate these documents. Conduct debriefing sessions to explain why certain bids were unsuccessful. Provide DBE firms with information on future procurements and contracting schedules. 6. Provide detailed instructions about job performance requirements. Provide information on certification subcontracting,and bonding requirements. procedures, Place bid notices in the Commerce Business Daily, Dodge Bulletin, DBE trade association newsletters, major local newspaper, as well as periodicals of interest to the disadvantaged community. Develop mailing lists for newsletters that include DBE's and their associations. Send bid notices to DBE trade associations, technical assistance agencies, DBE economic development groups, and to DBE's with capabilities relevant to the bid notice, as identified by the sponsor's DBE directory. 11. Make bid specifications available to DBE contractor associations and technical assistance agencies. 12. Provide DBE's and DBE organizations with lists of majority firms bidding as prime contractors. 13. Use a lead time of at least 20 days, if allowable, for advertisement of all invitations for bid so that all firms have ample time to develop a complete bid package or proposal and secure necessary assistance. 14. Hold pre-bid conferences to provide firms with an opportunity to inquire about the DBE requirements. IV. Disadvantaged Business Enterprises The City of Bakersfield encourages all contractors to use the services of banks owned and controlled by Disadvantaged Business Enterprises. This policy will be disseminated during pre-bid and preconstruction conference (if scheduled) and noted in the contract specifications. The City of Bakersfield contacted the local banks and savings & loans to determine if any were DBE owned or controlled. City staff also contacted the locally operated Minority Business Development Center to utilize that resource in determining ownership and/or control. As of this date there is no Disadvantaged Business Enterprise owned or controlled bank in the Bakersfield area. The City will continue to monitor the situation through contact in the DBE program and appropriate changes to policy will be made if the situation changes. 4 DBE Directory The City of Bakersfield will maintain and update a DBE Directory, which is located in the DBE Liaison officer's possession in the Public Works Department. The State Department of Transportation Directory will be used to supplement the City's Directory. Directories of other agencies may also be used when a project requires a search for DBE's beyond the normal recruiting area. The City's Directory lists firms that are capable of performing general contracting and particular solicitations. The Directory is organized by type of work the contractor desires to perform, i.e., general construction, lighting, marking, engineering, etc. The Directory indicates which firms have passed the City's own certification process, those certified by the Small Business Administration (SBA) under the Section 8 (a) program, those certified by the State Department of Transportation and some firms that do not have current certification. This listing will be developed and maintained in accordance with Section 23.51, 23.53, 23.55 and 23.87 of 49 CFR. This listing shall be made available to prospective contractors at no charge. The following information is shown for each firm: 1. Company Name 2. Type of Contractor 3. Address 4. Telephone Number 5. Owned by Woman, Minority, other DBE 6. Contact Person 7. Certified by City, $BA, U.S. DOT 8. Bonding Capability The City will update the Directory annually. The update will include any additional DBE's certified during that period. In the event a bidder names other DBE's it desires to use, these firms will be included in the Directory if they can be certified. Other DBE's that desire to be listed will also be included, upon request. The Directory is made available to bidders and proposers in their efforts to meet the DBE goals established by the City of Bakersfield and made a part of bid specifications. The Directory is a primary source for locating potential DBE contractors. VI. Selection Criteria for Contracts with DBE Goals Every contract containing DBE goals shall be evaluated by the DBE Liaison Officer or his/her designee to ascertain bidding contractors' efforts to attain the DBE goals and verify all DBEs 5 Oh.Q, ;,.L VII. named as contractors or subcontractors to be acceptable DBEs by DOT standards. The award of any project with DBE goals must be submitted to the DBE Liaison Officer for review before said contract may be awarded. Should there be disagreement between City of Bakersfield's functional units concerning contractor's efforts to attain contract goals for DBE participation, the matter shall be referred to the City Manager or his/her designee, for final determination. Procedures to Ascertain the Eligibility of DBE's and Joint Ventures Involving DBE's The City of Bakersfield will certify the eligibility of DBE's and joint ventures involving DBE's that are named by competitors for FAA-assisted contracts to be let by the City. The City may also accept the certifications made by other DOT recipients. The City of Bakersfield requires prime contractors to make good faith efforts to replace a DBE subcontractor that is unable to perform the contract successfully with another DBE. Substitu- tions of DBE subcontractors after bid opening and during contract performance must be approved by the City of Bakersfield. In these instances, the City of Bakersfield verifies the eligibility of the substitute firm. Any business that desires to participate as a DBE will be required to complete and submit Schedule A (Appendix 1) to the City of Bakersfield. Any business that desires to participate as a joint venture DBE will, in addition, be required to complete Schedule B (Appendix 2). The schedules must be signed and notarized by the authorized representative of the business. The required schedule must accompany the DBE participation information submitted to the City of Bakersfield by competitors. A firm seeking certification as a DBE will not be required to submit schedule A or B if either of the following applies: The potential DBE contractor states in writing that it has submitted the same information to or has been certified by the City of Bakersfield, any DOT element, or other Federal agency that uses essentially the same definition and ownership and control criteria as the DOT. In this case, the potential DBE must obtain the information and certification (if made) from the other agency and submit it to the City; or The potential DBE contractor has been determined by the Small Business Administration to be owned and controlled by socially and economically disadvantaged individuals under section 8 (a) of the Small Business Act, as amended. Note 1: In addition to the above circumstances, a Schedule A or B is not required if the sponsor has established a different certification process that has been approved by DOT. In these instances, the firm must submit the information required by that process. Note 2: The Section 8(a) program provides disadvantaged businesses with opportunities to participate in Federal Government contracting. The part 23 regulations incorporate the definition of a "small business concern" concern" contained in the Small Business Act, subject to the statutory $15,370 million cap. The regulations also incorporate the definition of "socially and economically disadvantaged individual used in the Small Business Act, except that women are included in the definition for purposes of Part 23. VIII.Uniform Certification Standards The City of Bakersfield will take at least the following steps in determining whether a firm may be certified as a DBE: Perform an on-site visit to the offices of the firm and to any job sites on which the firm is working at the time of the eligibility investigation.* Obtain the resumes or work histories of the principal owners of the firm and personally interview those individuals. 3. Analyze the ownership of stock in the firm, if it is a corporation; 4. Analyze the bonding and financial capacity of the firm. Determine the work history of the firm, including contracts it has received and work it has completed. Obtain or compile a list of equipment owned or available to the firm and the licenses of the firm and its key personnel to perform the work it seeks to do as part of the DBE program; 7. Obtain a statement from the firm of the type of work it prefers to perform as part of the DBE program. IX. On-site Certification Visits *Per guidance from the FAA, office and job site visits may be omitted from the investigation in any of these situations' When the City, at its discretion, accepts the certification of another DOT recipient, which included visits conforming to the regulations. When the City obtains the report of a site visit completed by another DOT recipient, which the City relies on. A firm applying for certification may be required to supply such report or cause the other recipient to supply it. The City will then draw its own conclusions regarding eligibility. When the City recertifies a firm that it previously reviewed on-site, and eligibility issues (e.g., change in ownership) have not arisen that make a second visit necessary. In the absence of such issues, an on-site visit need be conducted only once. Decertification Procedures Whenever the City of Bakersfield comes to believe that a firm with a current certification is no longer eligible, the firm will be afforded the rudiments of due process prior to revoking its eligibility. The steps to be used are: A letter will be sent to the firm, stating that the City of Bakersfield is contemplating decertification. A brief description of the reasons for the proposed action will be included. The firm will be given an opportunity to respond in person and in writing to present information and arguments. An informal meeting or hearing may be part of the process, but a formal adversary proceeding will not be used. While these procedures are not a regulatory requirement, the DOT has recommended them to make the process fair and to prevent unnecessary procedural litigation. Note 1: When a sponsor denies certification or completes a decertification, it may advise the firm that an appeal may be filed within 180 days of the decision with the office named below. An appeal must be in writing, dated and signed, and should be made after all appeal procedures of the airport sponsor have been exhausted. Departmental Office of Civil Rights Department of Transportation 400 7th Street, Southwest Washington, D.C. 20590 Note 2: The FAA may disseminate to all recipients copies of the certification decisions rendered by the Departmental Office of Civil Rights (DOCR). Often, the same firm applies for certification or is certified by more than one recipient. The decisions are in response to appeals of certification denials or SO-called "third-party complaints" brought under 49 CFR 23.55. The DOCR decisions apply only to the actions that were contested and do not bind other recipients to make the same judgement XI. concerning a firm's eligibility. Other recipients, who have granted certification to a firm that is adversely affected by a DOCR decision, are advised to reexamine their records to determine if the decision raises a certification issue. Each recipient must make its own decision based on the record, since firms sometimes reorganize or otherwise restructure their ownership and control. At any time that the recipient considers decertifying a firm, the "Decertification Procedures" outlined in this plan should be followed. DBE Definition To qualify for certification, a firm must meet the definition of a disadvantaged business enterprise (DBE). The definition used by the City of Bakersfield is as follows: A small business concern: Which is at least 51 percent owned by one or more socially and economically disadvantaged individuals, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more socially and economically disadvantaged individuals; and Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it. XII. Determination of Business Size The first step in the certification process is to make a determination of business size. If the applicant is not a "small business concern," as defined below, it will not be certified by the City of Bakersfield even though it may be owned and controlled by socially and economically disadvantaged individuals and eligible in all other respects. Even a firm certified by the Small Business Administration (SBA) under the 8(a) program is not eligible if it is not small.* The size standards established by the SBA in 13 CFR Part 121, as revised on February 14, 1990, are used for making size determinations. However, no firm is considered small if, including its affiliates, it averages annual gross receipts in excess of $30 million over the previous three fiscal years (Section 505(d)(2), Airport and Airway Improvement Act of 1982, as amended, has been amended further by the Airport and Airway Safety, Capacity, Noise Improvement, and Intermodal Transportation Act of 1982. Thus, a general contractor must "graduate" from the program once its gross receipts exceed the $30 million ceiling, even though the SBA standard for general contractors is $17 million. *The Department has stated that the $30 million limit for small business concerns, which is discussed below, applies to Section 8(a) firms. Sponsors have the authority and obligation to require a Section 8(a) firm applying for certification or recertification to submit financial figures indicating its average annual gross receipts for the three years prior to the date of the application. If a firm has earned gross receipts in excess of the $30 million standard, the firm must be denied certification or decertified by the sponsor. A firm that refuses to supply information to enable the sponsor to make this determi- nation may be either denied certification or decertified by the sponsor. Neither the DOT nor a sponsor may require a Section 8(a) firm to submit other eligibility information, including any pertaining to ownership and control, or social and economic disadvantage. A sponsor who believes that the Section 8(a) status of a firm is questionable should communicate the information to the Small Business Administration, which is solely empowered to grant or revoke 8(a) certifications. 3 o Contractors are still subject to applicable lower limits established by the SBA. For example, the SBA size limit for electrical contractors is $7 million (average of annual gross receipts for three-year period). The $7 million limit, rather than the $30 million ceiling, governs in size determinations of these contractors. o For AIP-funded subcontracts over $10,000 or less, small under the SBA regulations if, including its affiliates, it has no more than 500 employees. a firm is For AIP-funded subcontracts over $10,000 and prime contracts, a firm is small under the SBA regulations if, including its affiliates, it meets the applicable standard in terms of average gross receipts, number of employees, or other measure. While for many of the businesses used in AIP projects, the SBA standard is measured in gross receipts, this may not always be so. For example, a manufacturer of concrete products (SIC 3272) is small if it has no more than 500 employees. If one of these businesses earns gross receipts in excess of the $30 million cap, it would not qualify as small and hence for eligibility as a DBE, even though it may have less than 500 employees. All affiliates of a firm, as well as the firm itself, are considered when determining gross receipts earned or number of persons employed. Affiliation exists if one firm controls or has the power to control the other, or a third party or parties controls or has the power to control both firms. Information on gross receipts earned by an applicant is obtained from its submission of Schedule A (Appendix 1). 10 If a firm applies for certification in more than one category (e.g., general construction and special trade subcontractor), the applicable SBA standard is the one that describes the work the firm will perform under the AIP - funded contract. Size determinations will be reviewed annually in connection with the recertification process. XIII.Socially and Economically Disadvantaqed Individuals Any person having a current 8(a) certification from the Small Business Administration is considered to be socially and economically disadvantaged. The City of Bakersfield makes a "rebuttable presumption" that individuals in the following groups who are citizens of the United States (or lawfully permanent residents) are socially and economically disadvantaged: a. Women; b. Black Americans, which includes persons having origins in any of the Black racial groups of Africa; c. Hispanic Americans, which include persons of Mexican, Puerto Rican, Cuban, Central, or South American, or other Spanish or Portuguese culture or origin, regardless of race; d. Native Americans, which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians; e. Asian-Pacific Americans, which includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust Territories of the Pacific, and the Northern Marianas; and f. Asian-Indian Americans, which include persons whose origins are from India, Pakistan, Bangladesh, and $ri Lanka. The City of Bakersfield will generally assume that business owners who fall into one of these groups are socially and economically disadvantaged. Their disadvantaged status will not generally be investigated, unless a third-party challenge is made. Other individuals may be found to be socially and economically disadvantaged on a case-by-case basis. For example, a disable Vietnam veteran, an Appalachian white male, or another person may claim to be disadvantaged. If such individual requests that his or her firm be certified as a DBE, the City of Bakersfield, as part of 11 the certification process, will determine whether the individual is socially and economically disadvantaged under the criteria in Appendix C of Subpart D. These owners must demonstrate that their disadvantaged status arose from individual circumstances, rather than by virtue of membership in a group. XIV. Challenge Procedures Any third party may present evidence challenging whether a firm's owners who are presumed to be socially and economically disadvantaged are truly disadvantaged. Individuals certified as 8(a), however, are not subject to these challenges.* When the City of Bakersfield receives a written challenge to the disadvantaged status of a business owner that is certified or seeking certification, the City will make a determination of social and economic disadvantage. The City itself may also initiate an inquiry. The guidelines in 49 CFR 23.69 will be used for these actions. The procedures are informal; strict rules of evidence do not apply. while a challenge is in progress, the presumption of social and economic disadvantage continues, and if the firm has been certified, it will continue to be eligible as a DBE. *If a challenge is made to the owners of an 8(a) firm, the sponsor should refer the information or question to the SBA for resolution, as indicated on page 16. Any contracts that contain DBE goals, pursuant to this policy, will be monitored on an ongoing basis by project personnel during the course of construction. The DBE Liaison Officer is to be immediately advised of any circumstances wherein contractor compliance with the DBE provision is questionable. The contractor shall submit a final report for each project with DBE goals which includes total payments to the prime contractor as well as payments the prime contractor has made to DBE subcon- tractors, vendors and suppliers. If the report indicates the prime contractor has not achieved the project goals, project personnel shall attach an evaluation, in narrative form, of the reasons for failure to attain the goals and any corrective action that was taken. Prime contractors will be required to notify Bakersfield personnel of any situation in which regularly scheduled progress payments are not made to DBE subcontractors, vendors or suppliers. 12 XV. Eligibility Standards The City of Bakersfield will use the following standards to determine whether a firm is owned and controlled by one or more socially and economically disadvantaged individuals. Bona fide membership in a group of socially and economically disadvantaged individuals must be established on the basis of the applicant's claim that he or she is a member of such group and is so regarded by that particular disadvantaged community. However, the City of Bakersfield is not required to accept the claim if it is determined to be invalid. Proof of ancestry alone is not conclusive evidence of membership in a group of socially and economically disadvantaged individuals. The fact that a person's grandfather or other relative belonged to one of these groups does not necessarily qualify the applicant as a member for purposes of DBE certification. If the individual has not held himself or herself out to be a member of the community of disadvantaged individuals, has not acted as a member of that community, and would not be identified by persons in the population at large as a member of the group, the individual is not considered as belonging to that disadvantaged group for purposed of DBE certification. An eligible DBE must be an independent business. The ownership and control by disadvantaged persons must be real, substantial, and continuing and must go beyond the pro forma ownership of the firm as reflected in its ownership documents. The disadvantaged owners must enjoy the customary incidents of ownership and must share in the risks and profits commensurate with their ownership interests, as demonstrated by an examination of the substance rather than form of arrangements. Recognition of the business as a separate entity for tax or corporate purposes is not necessarily sufficient for recognition as a DBE. In determining whether a potential DBE is an independent business, the City of Bakersfield considers all relevant factors, including the date the business was established, the adequacy of its resources for the work of the contract, and the degree to which financial, equipment leasing, and other relationships with non-DBE firms vary from industry practice. XVI. Establishment of Overall Bakersfield Goal The City of Bakersfield will establish an overall goal for its use of DBEs. This goal will be updated annually as of September 30, of each year. Bakersfield's overall goal and the methodology used to determine the goal for the fiscal year beginning October 1, 1994, is shown on Attachments "B" and "C". 13 XVII. Contract Goals All projects receiving U.S. Department of Transportation funds will be evaluated for the appropriateness of DBE goals. Projects will be evaluated and goals established utilizing the following criteria: Size of Project. Opportunities for DBEs as subcontractors, vendors, suppliers. Minority population of county in which work is to be performed. This information is shown on Attachment "B". Existing DBE goals being utilized in the project area by other State, Federal or local jurisdictions. * Availability of DBEs. Past experience on projects similar to the project being evaluated. * Such other factors as may effect the utilization of DBEs. Each project will be evaluated in conformance with the above criteria. Completed documentation will be retained of every project so evaluated. 1994-95 City of Bakersfield DBE goal update is shown on Attachment "C" with supporting documentation. will (1) Bid documents for contracts which do not contain specific goals contain the following provisions: (2) "Policy. It is the policy of the City of Bakersfield that Disadvantaged Business Enterprises as defined in 49CFR Part 23 shall have the maximum opportunity to participate in the performance of contracts financed in whole or in part with Federal funds under this Agreement. Consequently, the DBE requirements of 49CFR Part 23 apply to this project." "DBE Obligation, (i) The successful bidder certifies that Disadvantaged Business Enterprises as defined in 49CFR Part 23 were given the maximum opportunity to participate in the performance of subcontractors financed in whole or in part with Federal funds provided under this Agreement. In this regard, all bidders shall certify that the bidder took all necessary and reasonable steps in accordance with 49CFR Part 23 to ensure that Disadvantaged Business Enterprise had the maximum opportunity to compete for and perform subcontracts. Bidders shall not discriminate on the basis of race, religion, color, national origin, or sex in the award and performance of Department of Transportation assisted contracts." "Refer to sample language for bid solicitations shown on Attachment "E". 14 DBE use on projects without goals will be reported to the Liaison Officer and will be included in Bakersfield's reports to Caltrans and to the appropriate Department of Transportation element. DBE's use on such projects will be counted toward attainment of the overall Bakersfield goal. XVIll.Public Notification At the time of submittal of this program to the U.S. Department of Transportation, the City of Bakersfield will publish a notice in both minority and majority local newspapers. Said publication shall: Announce Bakersfield's overall goals. Inform the public that the goals and a description of how they were set are available for public inspection for a period of thirty (30) days. Inform the public that both U.S. Department of Transportation and the City of Bakersfield will accept comments on the goals for forty-five (45) days from the date of the notice. The notice shall advise interested parties that comments are for informational purposes only. In addition to the foregoing, interested DBE and other contractor organizations will receive direct mailings of the complete program with a request that they provide written comments to the City of Bakersfield on this program. XIX. Contract Procedure This plan shall be implemented through the utilization of a special contract provision. These procedures require bidders to submit the names of DBE subcontractors and suppliers utilized in preparation of the bid, a description of the work each is to perform or material each is to furnish, and the dollar value of each DBE subcontract. Further, the contractor as a condition of receiving the contract, must meet the goals or demonstrate that it has made good efforts to achieve them. XX. DBE Notification All DBEs on the California Department of Transportation's certified DBE listing will receive, appropriate notification of projects scheduled to be advertised. DBE assistance centers will also receive notification. All assistance centers funded by the U.S. Department of Commerce (Disadvantaged Business Development Administration) and designated as State Plan Rooms will receive complimentary plans and specifications for projects within their geographical area of responsibility. 15 XXI. Set-Asides If determined necessary by the DBE Liaison Officer, the City of Bakersfield will consider the use, to the extent legally permissible, of DBE set-asides as a tool to achieve the overall City of Bakersfield goal. xxII.Counting DBE Participants The City of Bakersfield, its contractors and subcontractors shall count DBE participation in accordance with the provisions of Section 23.47, Title 49, of the Code of Federal Regulations. xxIII.Records and Reports The DBE Liaison Officer shall maintain such records, and provide such reports, as are necessary to ensure full compliance with this policy. Such records and reports shall include, as a minimum, the following information: Procedures which have been adopted to comply with this DBE policy. * Awards to DBEs. * Awards to non-DBE contractors. Final project reports concerning DBE utilization Such other data as is needed to fully evaluate Bakersfield's compliance with this program. The DBE Liaison Officer shall submit reports to Caltrans and to U.S. Department of Transportation elements as required. These reports will include: * Number and dollar value of contracts awarded to DBEs. Description of general categories of contracts awarded to DBEs. The percentage of the dollar value of all contracts awarded during the year which were awarded to DBEs. Indication as to the extent of which the percentage met or exceeded the overall Bakersfield goal. * Reports shall be broken down separately as required. 16 CITY OF BAKERSFIELD DISADVANTAGED BUSINESS ENTERPRISES 1994-95 OVERALL GOALS CITY OF BAKERSFIELD MINORITY POPULATION FEMALE 54.3% BLACK 9.8% HISPANIC 21.7% OTHER 14.2% The City of Bakersfield has utilized federal aid funds mostly for projects involving prime contractors only. This has traditionally limited DBE participation. Project analysis would indicate a lower goal for the City of Bakersfield than is recommended by the Federal Government. The City, however, continues to set its current goal at the minimum goal set by the Federal Government of 10% As the nature of projects, utilizing federal funds change with increased activity, participation should increase as shown in Appendix "C". Adjustments reflecting such changes will be made in response to sustained increases. Attachment "B" 17 DBE LEASING GOALS CITY OF BAKERSFIELD This attachment is made part of the City of Bakersfield DBE Program for 1994-95. The City of Bakersfield, as sponsor of Bakersfield Municipal Airport, has calculated leasing goals as per Section 23.5, standards 23.51 and 23.52 on the basis of a percentage of the revenues expected to be generated by all lessees. NAME TERMS GROSS REVENUE DBE REVENUE KL Aviation 8/3/85/ mo. to mo. 5,400/yr. -0- C & B Flying 7/19/85/ mo.to mo. 2,400/yr. -0- S & S Flight 12/19/91 - 5 years 9,000/yr. -0 Service The Airpark Galley 7/01/91 - 5 years $ 144,000/yr & Grill Restaurant $ 144,000/yr TOTAL $ 160,800/yr** $ 144,000/yr (86.33%)* The total DBE percentage of 86.33% is representative of the DBE participation at the airport. This participation is in excess of the overall City of Bakersfield DBE goal of 10@ percent. ** The amount represents actual gross revenues, not a gross percentage of the flat monthly fee from the lessees. K L Aviation and C & B Flying Lease Agreements are short term and do not contain exclusive clauses. S & S has a 5 year lease with options to renew for three consecutive 5 years periods. The Airport Galley & Grill Restaurant has a 5 year lease which includes an option to renew the lease for 5 additional years. *The definition Disadvantaged Business Enterprises included in 49 CFR Section 23.5 applies to funds granted by the Federal Aviation Administration. The definition of a Disadvantaged Business in Subpart D applies to assistance provided by UMTA and FHWA, as well as the FAA. Attachment 'D" 18 SAMPLE LANGUAGE FOR BID SOLICITATIONS (49 CFR 23.45(b)) The bidder shall make good faith efforts, as defined in 49 CFR Part 23, Regulations of the Office of the Secretary of Transportation,to subcontract 10 percent of the dollar value of this prime contract to small business concerns owned and controlled by socially and economically disadvantaged individuals (DBE). In the event that the bidder for this solicitation qualifies as a DBE, the contract goal shall be needed to have been met. Individuals who are rebuttably presumed to be socially and economically disadvantaged include women, Blacks, Hispanics, Native Americans, Asian-Pacific Americans, and Asian-Indian Americans. The apparent successful competitor will be required to submit information concerning the DBE's that will participate in this contract. The information will include the name and address of each DBE, a description of the work to be performed by each named firm, and the dollar value of the contract. If the bidder fails to achieve the contract goal stated herein, it will be required to provide documentation demonstrating that it made good faith efforts in attempting to do so. A bid that fails to meet these requirements will be considered nonresponsive. Attachment "E" 19