COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

November 30, 2005

BOARD MEETING DATE:

December 13, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

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 (DBE) Program’s annual overall goal for Federal Fiscal Year 2005/2006.

Vision Alignment

Commitment: Ensure the basic health and safety for all.

Goal 7: Maintain and enhance the public safety of all residents and visitors.

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.

Background

Previous Board Action

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

History

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

a)

ensure nondiscrimination in the award and administration of federally assisted contracts in an agency’s highway, transit, and airport financial assistance programs;

b)

create a level playing field on which DBE’s can compete fairly for federally assisted contracts;

c)

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

d)

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

e)

help remove barriers to the participation of DBE’s in federally assisted contracts;

f)

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

g)

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

All agencies wishing to receive federal-aid transportation funds through the State of California, Department of Transportation (DOT) must establish DBE goals for each federal fiscal year. The County’s DBE goal for Federal Fiscal Year 2005/2006 has been approved by the DOT’s Office of Local Programs. Public notices were published October 13, 2005, and October 20, 2005, 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.

Discussion

The goal of the County’s DBE Program for Federal Fiscal Year 2005/2006 is to provide 9.2 percent (9.2%) 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”.

The approved DBE program goal will remain in effect for the entire 2005/2006 Federal Fiscal Year (began October 1, 2005).

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.