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Resolution 10990006.90000 WSS/gjz 6/2/05 RESOLUTION NO.1099 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, ADOPTING A DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM FOR THE EXPENDITURE, BUT ONLY IN THE EXPENDITURE, OF FTA 5309 FUNDS RECEIVED THROUGH THE EDMONDS CROSSING GRANT APPLICATION WA-03- 0209. WHEREAS, if the City is granted funding through the FTA 5309 program, expenditures of funds received will be governed by a wide variety of federal requirements, and, WHEREAS, 49 CFR, §26.23 requires that a signed and dated policy statement expressing the City's commitment to an adopted DBE program, stating its objectives and outlining its responsibilities for implementation is a required element of the program, and WHEREAS, the City Council deems it to be in the public interest to adopt such a DBE program for circulation throughout the City of Edmonds staff and organization, and to DBE and non -DBE business communities that may desire to perform work on grant assisted programs, now, therefore, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. A Disadvantaged Business Enterprise (DBE) program is hereby adopted by the City of Edmonds. The program is set forth on the attached Exhibit A which is incorporated by this reference as fully as if herein set forth. The provisions of this program shall apply to, but only to, the expenditure through contracts of grant monies received from the FTA 6309 program through a project known as Edmonds Crossing WA-03-0209. {WSS603983.DOC;1/00006.900000/} - 1 - Section 2. The Mayor is requested and directed to circulate such program throughout the City staff and organization. In addition, the City Council hereby states its commitment to the program and directs that it be utilized in calling for bids and in contracting with service providers as the City moves forward in the design and other initial phases of the Edmonds Crossing project. The City Council notes that the City of Edmonds will be involved in the permitting, design and facilitation phase but that the Washington State Department of Transportation shall actually construct, build, operate and maintain any project constructed with such funds. Section 3. The City Council states its commitment to comply with all required federal regulations and provisions of statute. The program adopted hereby shall be interpreted in accordance with the provisions and requirements of applicable federal law and regulation, and specifically, the provisions of 49 CFR Part 26 and its appendices. RESOLVED this 21st day of June, 2005. APPROVED: MAYO ,GAR HAAKENSON ATTEST/AUTHENTICATED : CITY CLERK, SANDRA S. CHASE FILED WITH THE CITY CLERK: 06/21/2005 PASSED BY THE CITY COUNCIL: 06/21/2005 RESOLUTION NO. 1099 {WSS603983.DOC;1/00006.900000/} - 2 - CITY OF EDMONDS DBE PROGRAM POLICY STATEMENT Section 26.1, 26.23 Objectives/Policy Statement The City of Edmonds, hereinafter referred to as Edmonds, has established a Disadvantaged Business Enterprise (DBE) program in accordance with regulations of the U.S. Department of Transportation (DOT), 49 CFR Part 26. Edmonds has applied to receive Federal financial assistance from the Department of Transportation to help finance activities related to the Edmonds Crossing (EC) project, and as a condition of receiving this assistance, Edmonds has signed an assurance that it will comply with 49 CFR Part 26 in the expenditure of grant funds which it receives through the program for the project. It is the policy of Edmonds to ensure that DBEs as defined in part 26, have an equal opportunity to receive and participate in DOT assisted contracts. It is also our policy: 1. To ensure nondiscrimination in the award and administration of DOT -assisted contracts; 2. To create a level playing filed on which DBEs can compete fairly for DOT -assisted contracts; 3. To ensure that the DBE Program is narrowly tailored in accordance with applicable law; 4. To ensure that only firms that fully meet 49 CFR Part 26 eligibility standards are permitted to participate as DBEs; 5. To help remove barriers to the participation of DBEs in DOT -assisted contracts; 6. To assist the development of firms that can compete successfully in the market place outside the DBE Program. The City of Edmonds Community Services Director (425-771-0251) has been delegated as the DBE Liaison Officer (DBELO). In that capacity, the DBELO is responsible for implementing all aspects of the DBE program. Implementation of the DBE program is accorded the same priority as compliance with all other legal obligations incurred by Edmonds in its financial assistance agreements with the Department of Transportation. Edmonds has adopted this policy statement, which is disseminated to all departments and employees. Edmonds also distributed this statement to DBE and non -DBE enterprises performing work as needed on DOT -assisted contracts by publishing it in the Everett Herald and the Dail Jou 1 of Commerce. May r G# Haakenson Date {WSS603972.DOC;1/99925.001111/) 1 SUBPART A — GENERAL REQUIREMENTS Section 26.1 Objectives The objectives are found in the policy statement on the first page of this program. Section 26.5 Definitions The terms used in this program have definitions contained in 49 CFR 26.5 for this program. Section headings track 49 CFR Part 26 Sections. These policies shall be interpreted and applied in a way consistent with the underlying federal regulations, as the same exist or are hereafter amended. Section 26.7 Non-discrimination Requirements Edmonds will never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 49 CFR part 26 on the basis of race, color, sex, or national origin. In administering its DBE program, Edmonds will not, directly or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE program with respect to individuals of a particular race, color, sex, or national origin. Section 26.11 Record Keeping Requirements Reporting to DOT: 26.11(b) Edmonds will report DBE participation to DOT as follows: We will report DBE participation on an quarterly basis, using DOT Form 4630. These reports will reflect payments actually made to DBEs on DOT -assisted contracts. Bidders List: 26.11(c) Edmonds will create a bidders list, consisting of information about all DBE and non -DBE firms that bid or quote on DOT -assisted contracts. The purpose of this requirement is to allow use of the bidders list approach to calculating overall goals. The bidder list will include the name, address, DBE non -DBE status, age, and annual gross receipts of firms. We will collect this information in the following ways. Options include, but are not limited to: A contract clause requiring prime bidders to report the names/addresses, and possibly other information, of all firms who quote to them on subcontracts; {WSS603972.DOC;1/99925.001111/1 2 A notice in all solicitations, and otherwise widely disseminated, request to firms quoting on subcontracts to report information directly to Edmonds. Section 26.13 Federal Financial Assistance Agreement Edmonds has signed the following assurances, applicable to all DOT -assisted contracts and their administration: Assurance: 26.13 (a) Edmonds shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT -assisted contract or in the administration of its DBE Program or the requirements of 49 CFR part 26. The recipient shall take all necessary and reasonable steps under 49 CFR part 26 to ensure nondiscrimination in the award and administration of DOT assisted contracts. The recipient's DBE Program, as required by 49 CFR part 26 and as approved by DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to Edmonds of its failure to carry out its approved program, the Department may impose sanction as provided for under part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). This language will appear in financial assistance agreements with sub -recipients. Contract Assurance: 26.13b We will ensure that the following clause is placed in every DOT -assisted contract and subcontract: The contractor, sub -recipient, or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate. SUBPART B - ADMINISTRATIVE REQUIREMENTS Section 26.21 DBE Program Updates If Edmonds receives a grant of more than $250,000 in FTA planning capital in a federal fiscal year, we will continue to carry out this program until all funds from DOT financial assistance have been expended. We will provide to DOT updates representing significant changes in the program. {WSS603972.DOC;1/99925.001111/1 3 Section 26.23 Policy Statement The Policy Statement is elaborated on the first page of this program. Section 26.25 DBE Liaison Officer (DBELO) We have designated the following individual as our DBE Liaison Officer: Grant Administrator Stephen Clifton Community Services Director 121 — 51h Avenue North Edmonds, WA 98020 Clifton@ci. edmonds. wa. us 425-771-0251 In that capacity, the DBELO is responsible for implementing all aspects of the DBE program and ensuring that Edmonds complies with all provisions of 49 CFR Part 26. The DBELO has direct, independent access to the Mayor concerning DBE program administration. An organization chart displaying the DBELO's position in the organization is found in Attachment 1 to this program. The DBELO is responsible for developing, implementing and monitoring the DBE program, in coordination with other appropriate officials. The duties and responsibilities include the following: 1. Gathers and reports statistical data and other information as required by DOT. 2. Reviews third party contracts and purchase requisitions funded by the grant for compliance with this program. 3. Works with all departments which utilize grant funds to set overall annual goals regarding the expenditure of grant funds. 4. Ensures that bid notices and requests for proposals are available to DBEs in a timely manner. 5. Identifies contracts and procurements funded by the grant so that DBE goals are included in solicitations (both race -neutral methods and contract specific goals attainment and identifies ways to improve progress. 6. Analyzes Edmonds' progress toward attainment of its goals and identifies ways to improve progress. 7. Participates in pre -bid meetings relating to grant funded. 8. Advises the Mayor and City Council on DBE matters and achievement. 9. Chairs the DBE Advisory Committee. 10. Participates in pre -bid meetings. 11. Provides DBEs with information and assistance in preparing bids, obtaining bonding and insurance. 12. Plans and participates in DBE training seminars. {WSS603972.DOC;1/99925.001111/1 4 13. Certifies DBEs according to the criteria set by DOT and acts as liaison to the Uniform Certification Process in Washington State. 14. Provides outreach to DBEs and community organizations to advise them of opportunities. 15. Maintains Edmonds' updated directory on certified DBEs. Section 26.27 DBE Financial Institutions It is the policy of Edmonds to investigate the full extent of services offered by financial institutions owned and controlled by socially and economically disadvantaged individuals in the community, to make reasonable efforts to use these institutions, and to encourage prime contractors on DOT -assisted contracts to make use of these institutions. We have made the following efforts to identify and use such institutions: Edmonds has surveyed banking, savings and loan, the Chamber of Commerce and Economic Development Council to determine their knowledge of any DBE institutions. Edmonds has not identified any DBE financial institutions in the community. As information on the availability of such institutions becomes know, it may be obtained from the DBE Liaison Officer. Section 26.29 Prompt Payment Mechanisms Edmonds will include the following clause in each DOT -assisted prime contract: The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than 30 days from the receipt of each payment the prime contract receives from Edmonds. The prime contractor agrees further to return retainage payments to each subcontractor within 30 days after the subcontractors work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of Edmonds. This clause applies to both DBE and non -DBE subcontracts. Section 26.31 Directory Edmonds will rely on the Washington State Office of Minority and Women Business Enterprises (OMWBE) to perform DBE certification work, and to maintain the Directory. Edmonds will keep an electronic version of the current DBE Directory issued by OMWBE on file. This directory will be utilized in the development of mailing lists for RFPs for grant funded services or contracts. In addition the directory will be used to provide assistance to potential bidders in the identification of available DBE subcontractors. The internet address for accessing http://www.omwbe.wa.gov/directory.htm. {WSS603972.DOC;1/99925.001111/1 5 the OMWBE's Directory is The OMWBE directory lists all firms eligible to participate as DBEs, the firm's name, address, phone number, date of the most recent certification, and the type of work the firm has been certified to perform as a DBE. Edmonds shall revise the Directory found in Attachment 2 to this program document, at least annually. The Directory will be made available by contacting the: Grant Administrator Stephen Clifton Community Services Director 121 — 51h Avenue North Edmonds, WA 98020 Clifton@ci.edmonds.wa.us 425-771-0251 Section 26.33 Overconcentration Edmonds has not identified that overconcentration exists in the types of work that DBEs are likely to perform through Edmonds' use of any grant funds. Section 26.35 Business Development Programs At this time Edmonds does not have a business development program or mentor program. Section 26.37 Monitoring and Enforcement Mechanisms Edmonds will take the following monitoring and enforcement mechanisms to ensure compliance with 49 CFR Part 26. In order to ensure compliance with DBE requirements in its contracts, Edmonds's project managers and representatives will monitor on an ongoing basis that work committed to being performed by DBEs is actually performed by the DBEs named in a contractor's bid or proposal. A clause will be included in all contracts requiring that the contractor cannot substitute subcontractors without Edmonds concurrence. In addition, if a DBE subcontractor is unable to perform the work contracted for, the prime contractor must either replace such subcontractor with another DBE or show Edmonds that good faith efforts to do so have been made. The Edmonds representative at the site will periodically report to the DBE Liaison Officer his observations that DBE subcontractors actually are performing the amount and type of work committed. If a prime contractor is found not to be in compliance with its DBE commitment it shall be so notified by Edmonds and directed to cure the problem within an appropriate time period. Failure by the prime contractor to comply may result in monetary penalties and partial or total termination for default with resolicitation costs to be born by the prime contractor or its bond. (WSS603972.DOC;1/99925.001111/) 6 In addition, Edmonds may consider a contractor's non-compliance with its stated contract goal or good faith efforts when evaluating contractor responsibility in future bids or proposals. We will bring to the attention of the Washington State Office of Minority and Women's Business Enterprises and the Federal Transit Administration any false, fraudulent or dishonest conduct in connection with the program, so that DOT can take the steps (e.g., referral to the Department of Justice for criminal prosecution, referral to the DOT Inspector General, action under suspension or debarment or Program Fraud and Civil Penalties rules) provided in 26.109. We will also assist the WA State OMWBE in the consideration of similar action under local legal authorities. SUBPART C — GOALS, GOOD FAITH EFFORTS, AND COUNTING A. Annual Goals Edmonds' goal for 2005 is 10 % of the Federal financial assistance we will expend in DOT - assisted contracts exclusive of FTA funds to be used for the purchase of transit vehicles. No FTA funds are slated to be used to purchase transit vehicles. B. Method of establishing goal Most of the bidders competing for Edmonds contracts are from within Washington State. Therefore, the goal for FY 2005 is established by comparing overall business availability for Washington State Counties from the U.S. Census Bureau database with Washington State County's DBEs, certified and capable of performing Edmonds contracts. DBE information is obtained by NAICS code from the DBE Directory issued by the Washington State Office of Minority and Women Business Enterprises. Step One: To develop the base number of available DBEs, Edmonds first identified the NAICS codes applicable to DOT -assisted contracts to be awarded in 2005 by Edmonds. The number of available DBEs in each NAICS Code or group of NAICS codes were divided by the total number of businesses in those NAICS codes. Step Two: For step two Edmonds' experience and current project situation was examined. We found no historical information showing unsuccessful DBE or non -DBE subcontractors. C. Development of future goals: In addition to the information used in para B. above, future goals will be established by taking into consideration information gathered through expanded information obtained from prime bidders in compliance with 49 CFR part 26. D.' Transit Vehicle Manufacturers (TVM) Edmonds has no intention of purchasing rolling stock. In its contracts with the Washington State Department of Transportation (WSDOT), Edmonds will require that WSDOT require { WSS603972.DOC;1 /99925.001111 /} 7 compliance by transit vehicle manufacturers with their own DBE programs and obtain certifications from each TVM. E. Outreach Process Edmonds will submit its overall goal to the Federal Transit Administration each year in which grant funds are received or expended. Before establishing its goal each year, Edmonds will consult with appropriate groups, such as the Washington State Office of Minority and Women Business Enterprises, the Census Bureau data base, Contractors' Resource Center, Governor's Office of Indian Affairs, Washington State Commissions and other business development centers that may be available to obtain information regarding DBE and non -DBE availability for the types of work Edmonds plans to contract for, the effect of discrimination on opportunities for DBEs and Edmonds' efforts to establish a level playing field for the participation of DBEs. Following this consultation, we will publish a notice of the proposed goals, informing the public that the proposed goal and its rational are available for inspection during normal business hours at our principal office for 30 days following the date of the notice, and informing the public that Edmonds will accept comments on the goals for 45 days from the date of the notice. The notice must include addresses to which comments may be sent and addresses (including offices and websites) where the proposal may be reviewed. F. Breakout of Estimated Race -Neutral and Race -Conscious Participation Edmonds will not use DBE quotas or set -asides to achieve the goal for DBE participation. Participation will be achieved by race -neutral means or by the use of contract goals and good faith efforts. Section 26.53 Good Faith Efforts Procedures Demonstration of good faith efforts (26.53(a) & (c)) The obligation of the bidder/offeror is to make good faith efforts. The bidder/offeror can demonstrate that it has done so either by meeting the contract goal or documenting good faith efforts. Examples of good faith efforts are found in Appendix A to Part 26. We will ensure that all information is complete and accurate and adequately documents the bidder/offer's good faith efforts before we commit to the performance of the contract by the bidder/offeror. Information to be submitted (26.53(b)) Edmonds treats bidder/offers' compliance with good faith efforts' requirements as a matter of responsibility. Each solicitation for which a contract goal has been established will require the bidders/offerors to submit the following information: {WSS603972.DOC;1/99925.001111/1 8 1. The names and addresses of DBE firms that will participate in the contract; 2. A description of the work that each DBE will perform; 3. The dollar amount of the participation of each DBE firm participating; 4. Written and signed documentation of commitment to use a DBE subcontractor whose participation it submits to meet a contract goal; 5. Written and signed confirmation from the DBE that it is participating in the contract as provided in the prime contractors commitment and 6. If the contract goal is not met, evidence of good faith efforts. Administrative reconsideration (26.53(d)) Within 10 days of being informed by Edmonds that it is not responsible because it has not documented sufficient good faith efforts, a bidder/offeror may request administrative reconsideration. Bidder/offerors should make this request in writing to the following reconsideration official: Grant Administrator Stephen Clifton Community Services Director 121 — 51h Avenue North Edmonds, WA 98020 Clifton@ci. edmonds. wa. us 425-771-0251 The reconsideration official will not have played any role in the original determination that the bidder/offeror did not document sufficient good faith efforts. As part of this reconsideration, the bidder/offeror will have the opportunity to provide written documentation or argument concerning the issue of whether it met the goal or made adequate good faith efforts to do so. The bidder/offeror will have the opportunity to meet in person with our reconsideration official to discuss the issue of whether it met the goal or made adequate good faith efforts to do. We will send the bidder/offeror a written decision on reconsideration, explaining the basis for finding that the bidder did or did not meet the goal or make adequate good faith efforts to do so. The result of the reconsideration process is not administratively appealable to the Department of Transpiration. Good Faith Efforts when a DBE is replace on a contract [26.53(ff)] Edmonds will require a contractor to make good faith efforts to replace a DBE that is terminated or has otherwise failed to complete its work on a contract with another certified DBE, to the extent needed to meet the contract goal. We will require the prime contractor to notify the DBE Liaison officer immediately of the DBE's inability or unwillingness to perform and provide reasonable documentation. 1WSS603972.DOC;1/99925.001111/) 9 In this situation, we will require the prime contractor to obtain our prior approval of the substitute DBE and to provide copies of new or amended subcontracts, or documentation of good faith efforts. If the contractor fails or refuses to comply in the time specified, our contracting office will issue an order stopping all or part of payment/work until satisfactory action has been taken. If the contractor still fails to comply, the contracting officer may issue a termination for default proceeding. Sample Bid Specification: The requirements of 49 CFR Part 26, Regulations of the U.S. Department of Transportation, apply to this contract. It is the policy of the Edmonds to practice nondiscrimination based on race, color, sex, or national origin in the award or performance of this contract. All firms qualifying under this solicitation are encouraged to submit bids/proposals. Award of this contract will be conditioned upon satisfying the requirements of this bid specification. These requirements apply to all bidders/offerors, including those who qualify as a DBE. A DBE contract goal of 10 % percent has been established for this contract. The bidder/offeror shall make good faith efforts, as defined in Appendix A, 49 CFR Part 26 (Attachment 1), to meet the contract goal for DBE participation in the performance of this contract. The bidder/offeror will be required to submit the following information: (1) the names and addresses of DBE firms that will participate in the contract; (2) a description of the work that each DBE firm will perform; (3) the dollar amount of the participation of each DBE firm participating; (4) Written documentation of the bidder/offeror's commitment to use a DBE subcontractor whose participation it submits to meet the contract goal; (5) Written confirmation from the DBE that it is participating in the contract as provided in the commitment made under (4); and (5) if the contract goal is not met, evidence of good faith efforts. Section 26.55 Counting DBE Participation We will count DBE participation toward goals as provided in 49 CFR 26.55. SUBPART D — CERTIFICATION STANDARDS Section 26.61 — 26.73 Certification Process Edmonds will use the certification standards of Subpart D of Part 26 to determine the eligibility of firms to participate as DBEs in DOT -assisted contracts. To be certified as a DBE, a firm must meet all certification eligibility standards. We will make our certification decisions based on the facts as a whole. In Washington State a central "one -stop -shop" has been created to perform certification and recertification functions. The Washington State Office of Minority and Women Business {WSS603972.DOC;1/99925.001111/) 10 Enterprises (OMWBE) has legislative authority to perform all minority, women and disadvantaged business enterprise certifications for all public agencies in the State. For DBE certifications the office is required to utilize certification procedures that meet all federal requirements as defined in 49 CFR Part 26 and as amended to ensure eligibility of certified firms for Department of Transportation projects. SUBPART E — CERTIFICATION PROCEDURES Section 26.81 Unified Certification Programs The State of Washington Office of Minority and Women's Business Enterprises has a unified certification program. This agency also conducts certifications, recertifications, and decertification. Section 26.83 Procedures for Certification Decisions Challenge A third party may challenge a firm's presumed eligibility or a firm's certification as a DBE. Edmonds shall immediately review the information received and determine if grounds exist to pursue the challenge. If the challenge appears to have merit, Edmonds will notify the Washington State Office of Minority and Women's Business Enterprises who will have the authority to investigate and resolve the challenge in accordance with the certification requirements of 49 CFR Part 26 and as amended. Edmonds will provide all available information for investigation and identify the third party challenger. The challenged party shall submit rebutting information to the OMWBE for their consideration. Edmonds shall actively participate with the OMWBE, if needed, until the investigation is concluded and a determination has been finalized. Decertification In addition to the performance of the certification function for all public agencies in the State of Washington, the OMWBE is responsible for decertification if a DBE no longer qualifies for the program under 49 CFR Part 26 and SBA small business criteria. Edmonds will cooperate with the OMWBE as needed to assist in the decertification process. Once decertified a DBE contractor will no longer be counted towards the agency's overall annual goals. Section 26.89 Certification Appeals Any firm or complainant may appeal our decision in a certification matter to DOT. Such appeals may be sent to: {WSS603972.DOC;1/99925.001111/) 11 Department of Transportation Office of Civil Rights Certification Appeals Branch 400 7"' Street, SW Room 2104 Washington, D.C. 20590 We will promptly implement any DOT certification appeal decisions affecting the eligibility of DBEs for our DOT -assisted contracting (e.g., certify a firm if DOT has determined that our denial of its application was erroneous). SUBPART F — COMPLIANCE AND ENFORCEMENT Section 26.109 Information, Confidentiality, Cooperation We will safeguard from disclose to third parties information that may reasonably be regarded as confidential business information, consistent with Federal, state, and local law. Notwithstanding any contrary provisions of state or local law, we will not release personal financial information submitted in response to the personal net worth requirement to a third party (other than DOT) without the written consent of the submitter. Monitoring Payments to DBEs We will require prime contractors to maintain records and documents of payments to DBEs for three years following the performance of the contract. These records will be made available for inspection upon request by any authorized representative of Edmonds or DOT. This reporting requirement also extends to any certified DBE subcontractor. We will perform interim audits of contract payments to DBEs. 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