(9)AR 051909 Disadvantage Business Enterprise

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ITEM #9 CITY OF COLTON AGENDA REPORT FOR THE CITY COUNCIL MEETING OF MAY 19, 2009 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: MARITZA TAPIA, INTERIM PW DIRECTOR SUBJECT: APPROVE DISADVANTAGE BUSINESS ENTERPRISE (DBE) IMPLEMENTATION AGREEMENT WITH CALTRANS AND ADOPT A RESOLUTION AUTHORIZING THE PUBLIC WORKS DIRECTOR TO EXECUTE THE AGREEMENT AND ANY SUBSEQUENT AMENDMENTS, AND OTHER DOCUMENTS REQUIRED BY CALTRANS FOR CITY'S DBE PROGRAM. DATE: MAY 7, 2009 BACKGROUND: In 1984, City Council first adopted the Disadvantaged Business Enterprise (DBE) Program as required by Federal Regulations. The program defines disadvantaged businesses and percentage goals for federally funded or assisted public works contracts to be awarded each year. The California Department of Transportation (CalTrans) has been entrusted with local agency oversight responsibility for DBE implementation since 1999, and as such, has the responsibility of overseeing Colton's DBE Program. Caltrans is required under 49 CFR Part 26 to administer a Disadvantaged Business Enterprise (DBE) Program. The DBE Program is intended to remedy past and current discrimination against DBEs, ensure a level playing field, and foster equal opportunity in federal -aid contracts. Since May 2006, Caltrans has been implementing a wholly Race -Neutral DBE Program that included a statewide annual overall goal of 13.5 percent of the total contracted amount on federal -aid projects. In June 2006, Caltrans conducted an Availability and Disparity Study to identify availability/utilization of DBEs in California, in response to a directive from the Federal Highway Administration (FHWA). The study was completed in early 2007. The results revealed statistically significant underutilization in four of the six groups presumed to be disadvantaged as defined by 49 CFR Part 26. The four groups were African Americans, Asian Pacific Americans, Native Americans and Women. Consequently, in August 2008, Caltrans revised its DBE Program to include race -conscious goals of limited application to the four identified groups of Underutilized DBEs (UBDEs) and submitted to FHWA for approval. In March 2, 2009, Caltrans received approval from FHWA to immediately implement its revised DBE goal and methodology. For FY2008/2009, Caltrans' DBE Program provides for a 6.75 percent race -conscious goal and a 6.75 percent race -neutral goal for an overall 13.5 percent program goal.