COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

 

DATE:

January 16, 2003

BOARD MEETING DATE:

February 4, 2003

 

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Disadvantaged Business Enterprise Program Goal

 

Recommendation

Adopt a resolution approving the Disadvantaged Business Enterprise Program Annual Overall Goal for Federal Fiscal Year 2002/2003.

 

Previous Board Action

Adopted the methodology for establishing the Disadvantaged Business Enterprise (DBE) goals in accordance with Title 49 of the Code of Federal Regulations (CFR), Part 26, beginning in Federal Fiscal Year 2001.

 

Key Facts

1.

All agencies wishing to receive Federal-aid transportation funds through the State of California, Department of Transportation must establish DBE goals for each Federal fiscal year.

 

2.

The County's DBE goal for Federal Fiscal Year 2002/2003 has been approved by the State of California, Department of Transportation (DOT), Office of Local Programs. A public notice was published on November 5, 2002, setting a document review period of 30 days and a public comment period of 45 days from the date of publication. No comments were received.

 

3.

The approved DBE program goal will remain in effect for the entire 2002/2003 Federal Fiscal Year (begins October 1, 2002).

 

Discussion

Title 49 of the CFR, Part 26, seeks to achieve several objectives:

 

a)

to ensure nondiscrimination in the award and administration of DOT-assisted contracts in an agency's highway, transit, and airport financial assistance programs;

 

b)

to create a level playing field on which DBE's can compete fairly for DOT-assisted contracts;

 

c)

to ensure that the agency's DBE program is narrowly tailored in accordance with applicable law;

 

d)

to ensure that only firms that fully meet the eligibility standards are permitted to participate as DBE's;

 

e)

to help remove barriers to the participation of DBE's in DOT-assisted contracts;

 

f)

to assist the development of firms that can compete successfully in the market place outside the DBE program; and

 

g)

to provide appropriate flexibility to recipients of Federal financial assistance in establishing and providing opportunities for DBEs.

 

The goal of the County's DBE Program for Federal Fiscal Year 2002/2003 is to provide three percent (3%) of federally financed contracts to DBE contractors. DBE contractors are defined as for-profit small business concerns that are at least 51 percent (51%) owned and controlled by one or more socially and economically disadvantaged individuals. The management and daily business operations must also be controlled by one or more such individuals.

 

The specific program is "exempted" from the provisions of Proposition 209 (California Constitution, Article 1, Section 31) as being "action...taken to establish or maintain eligibility for any federal program, where ineligibility would result in loss of federal funds to the State".

 

Vision Alignment

We believe our recommendation is consistent with the Shared Commitment to "ensure the basic health and safety for all," and Goal Number 7, "maintain and enhance the public safety of all residents and visitors," as adopting the DBE Program Goals is a prerequisite for qualifying for Federal-aid transportation funds that can be used to improve the transportation system in the County for the benefit of the public.

 

Fiscal Impact

There is no direct fiscal impact to the General Fund or any other fund of the County by approving the DBE goal. However, a DBE Program goal must be in place if the County is to qualify for and receive Federal-aid transportation funds.

 

A form of resolution has been approved by County Counsel.

 

Neil R. Cullen

          Director of Public Works

cc: John Nebbelin, Deputy County Counsel

bcc: Donna J. Vaillancourt, Management Services Division Manager

    Gail J. Radcliffe, Contract Administrator