2004-25523 Reso
RESOLUTION NO. 2004-25523
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER OR HIS
DESIGNEE, TO ADOPT AND IMPLEMENT A DISADVANTAGED BUSINESS
ENTERPRISE (DBE) PROGRAM PURSUANT TO TITLE 49 CODE OF
FEDERAL REGULATIONS (CFR) PART 26, FOR THE PURCHASE OF
GOODS, SERVICES, AND EQUIPMENT AND FACILITIES PROJECTS
FUNDED BY THE U. S. DEPARTMENT OF TRANSPORTATION'S FEDERAL
TRANSIT ADMINISTRATION (FTA) FUNDS ONLY; AND FURTHER
AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO TRANSMIT THE
DBE PLAN TO THE FTA FOR APPROVAL.
WHEREAS, the City has received Congressional earmarks in the form of U.S.
Department of Transportation's Federal Transit Administration (FT A), Section 5309
funds, totaling $8,355,801 for bus and bus-related equipment and facilities in Miami
Beach; and
WHEREAS, the expenditures of the FTA funds must adhere to Title 49 Code of
Federal Regulations (CFR) Parts 23 and 26, which mandates that all FT A recipients
receiving planning, capital and/or operating assistance, which will award prime contacts
(excluding transit vehicle purchases) exceeding $250,000 in FTA funds in a Federal
Fiscal year (i.e., October 1 thru September 30), must submit a Disadvantaged Business
Enterprise (DB E) Program to FTA for approval; and
WHEREAS, the City's DBE Program is being implemented on Iv for the purchase
of transit goods, services and equipment, and transit facility construction projects
funded with FTA funds~ and
WHEREAS, Disadvantaged business enterprise or DBE is defined by 49 CFR 26
to mean a for-profit small business concern --
(1) That is at least 51 percent owned by one or more individuals who are both
socially and economically disadvantaged or, in the case of a corporation, in
which 51 percent of the stock is owned by one or more such individuals; and
(2) Whose management and daily business operations are controlled by one
or more of the socially and economically disadvantaged individuals who own
it; and
WHEREAS, the City's overall goal must be based on demonstrable evidence of
the availability of ready, willing and able DBE's relative to all businesses that are ready,
willing and able to participate on DOT-assisted City contracts; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby authorize the City Manager or his designee, to adopt and
implement a Disadvantaged Business Enterprise (DBE) Program pursuant to Title 49
Code of Federal Regulations (CFR) Part 26, for the purchase of goods, services and
equipment and facility projects, relative to Federal Transit Administration (FTA) funds
only; and further authorize the City Manager or his designee to transmit the DBE Plan to
the FT A for approval.
PASSED and ADOPTED this the
ATTEST:
~f~~
CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
T:\AGENDA \2004\Mar1704\ConsentIDBE. Reso.doc
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
Resolution Authorizing the City Manager or Designee, to Adopt and Implement a Disadvantaged Business
Enterprise (DBE) Plan for the Purchase of Goods, Services and Equipmen~and Facilities Projects, Relative
to Federal Transit Administration (FTA) Funds Only; Further Authorizing the City Manager or Designee to
Transmit the DBE Plan to the U.S. Department of Transportation's Federal Transit Administration (FTA) for
Approval.
Issue:
Shall the City Commission Authorize the City Manager to Adopt and Implement a DBE Plan?
Item Summary/Recommendation:
The City of Miami Beach (the "City") has received congressional earmarks in the form of Federal Transit
Administration (FTA) funds totaling $8,017,020 for bus and bus-related equipment and facilities in Miami
Beach. The allocation of said FTA funds are as follows:
FTA funds for buses and/or bus-related equipment:
FTA funds for construction of bus facilitylintermodal:
$1,541,415
$6.475.605
$8,017,020
The expenditures ofthe FTA funds must adhere to Title 49 Code of Federal Regulations (CFR) Parts 23 and
26, which mandates that all FTA recipients receiving planning, capital and/or operating assistance who will
award prime contacts (excluding transit vehicle purchases) exceeding $250,000 in FTA funds in a Federal
Fiscal year (I.e., October 1 thru September 30) must submit a Disadvantaged Business Enterprise (DBE)
Program to FTA for approval.
AUTHORIZE THE CITY MANAGER TO ADOPT AND IMPLEMENT A DBE PLAN.
Advisory Board Recommendation:
IN/A
Financial Information'
Source of Amount ... > ..^~..",,;...+ > .. > ... Appro\l,d
Funds: .......t
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Finance Dept. Totell
Ci Clerk's Office e islative Trackin
Gus Lopez, 6641
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T:\AGEN DA\2004\F eb2504\Consent\DBESummary. doc
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. Manager
AGENDA ITEM C 7(11
DATE 3-17-0<.(
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
COMMISSION MEMORANDUM
From:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonz~
City Manager
Date: March 17, 2004
To:
-
Subject:
A RESOLUTION AUTHORIZING THE CI ANAGER OR DESIGNEE, TO
ADOPT AND IMPLEMENT A DISADVANTAGED BUSINESS ENTERPRISE
(DB E) PROGRAM PURSUANT TO TITLE 49 CODE OF FEDERAL
REGULATIONS (CFR) PART 26, FOR THE PURCHASE OF GOODS,
SERVICES AND EQUIPMENT, AND FACILITIES PROJECTS, RELATIVE
TO FEDERAL TRANSIT ADMINISTRATION (FTA) FUNDS ONLY;
FURTHER AUTHORIZING THE CITY MANAGER OR DESIGNEE TO
TRANSMIT THE DBE PLAN TO THE U.S. DEPARTMENT OF
TRANSPORTATION'S FEDERAL TRANSIT ADMINISTRATION (FTA) FOR
APPROVAL.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City of Miami Beach (the "City") has received congressional earmarks in the form of
Federal Transit Administration (FTA) funds totaling $8,017,020 for bus and bus-related
equipment and facilities in Miami Beach. The allocation of said FTA funds are as follows:
. FT A funds for buses and/or bus-related equipment:
. FTA funds for construction of bus facility/intermodal:
$1,541,415
$6.475,605
$8,017,020
The expenditures of the FTA funds must adhere to Title 49 Code of Federal Regulations
(CFR) Parts 23 and 26, which mandates that all FTA recipients receiving planning, capital
and/or operating assistance who will award prime contacts (excluding transit vehicle
purchases) exceeding $250,000 in FTA funds in a Federal Fiscal year (i.e., October 1 thru
September 30) must submit a Disadvantaged Business Enterprise (DBE) Program to FTA
for approval.
COMMISSION MEMO RE DBE PLAN
March 17. 2004
PAGE 2 OF6
Until recently, the only designated recipient of FTA funds in the entire county was Miami-
Dade Transit (MDT). Funds earmarked for the Electrowave were sent to MDT. The City's
capital purchases for the Electrowave were made by the City and the requests for
reimbursement were submitted to MDT, which reimbursed the City on FT A's behalf. As the
designated recipient, MDT has a DBE program and plan, therefore the City was not
required to adopt a DBE Program.
MDT has notified the City that they no longer want to be our intermediary/manager, and
requested that the City apply to FT A for our own status as a designated recipient. The City
therefore applied for and obtained its own designated recipient status from FTA. As a
recipient of FTA grant funds, the City must adopt and implement a DBE Program pursuant
to the requirements set forth in 49 CFR 26.
It is important to note that the DBE Program is being implemented for the purchase
of goods, services, equipment and facilities projects relative to Federal Transit
Administration (FTA) funds onlv.
The following series of questions and answers provides for an understanding of the
requirements of the DBE program pursuant to 49 CFR 26:
What is a OBE?
Disadvantaged business enterprise or DBE is defined by 49 CFR 26 to mean a for-profit
small business concern --
(1) That is at least 51 percent owned by one or more individuals who are both socially and
economically disadvantaged or, in the case of a corporation, in which 51 percent of the
stock is owned by one or more such individuals; and
(2) Whose management and dai Iy business operations are controlled by one or more of the
socially and economically disadvantaged individuals who own it.
Who is considered to be socially or economically disadvantaged?
Socially and economically disadvantaged individual means any individual who is a citizen
(or lawfully admitted permanent resident) of the United States and who is --
(1) Any individual who a recipient finds to be a socially and economically disadvantaged
individual on a case-by-case basis.
(2) Any individual in the following groups, members of which are rebuttably presumed to be
socially and economically disadvantaged:
(i) "Black Americans," which includes persons having origins in any of the Black racial
groups of Africa;
COMMISSION MEMO RE DBE PLAN
March 17, 2004
PAGE 30F6
(ii) "Hispanic Americans," which includes persons of Mexican, Puerto Rican, Cuban,
Dominican, Central or South American, or other Spanish or Portuguese culture or origin,
regardless of race;
(iii) "Native Americans," which includes persons who are American Indians, Eskimos,
Aleuts, or Native Hawaiians;
(iv) "Asian-Pacific Americans," which includes persons whose origins are from Japan,
China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea),
Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the U.S. Trust
Territories of the Pacific Islands (Republic of Palau), the Commonwealth of the Northern
Marianas Islands, Macao, Fiji, Tonga, Kirbati, Juvalu, Nauru, Federated States of
Micronesia, or Hong Kong;
(v) "Subcontinent Asian Americans," which includes persons whose origins are from India,
Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka;
(vi) Women;
(vii) Any additional groups whose members are designated as socially and economically
disadvantaged by the Small Business Administration (SBA), at such time as the SBA
designation becomes effective.
What are the objectives of 49 CFR 261
Part 26 seeks to achieve several objectives:
(1) To ensure nondiscrimination in the award and administration of DOT-assisted contracts
in the Department's highway, transit, and airport financial assistance programs;
(2) To create a level playing field on which DBEs can compete fairly for DOT-assisted
contracts;
(3) To ensure that the Department's DBE program is narrowly tailored in accordance with
applicable law;
(4) To ensure that only firms that fully meet this part's 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 marketplace
outside the DBE program; and
(7) To provide appropriate flexibility to recipients of Federal financial assistance in
establishing and providing opportunities for DBEs.
COMMISSION MEMO RE DBE PLAN
March 17, 2004
PAGE 4 OF6
What records must the City keep and report?
(1) The City must continue to provide data about our DBE program to the FTA as directed
by DOT's operating administrations.
(2) The City must create and maintain a DBE bidders' list. The purpose of this list is to
provide the City with accurate data about the availability of DBE and non-DBE contractors
and subcontractors who seek to work on the City's Federally-assisted contracts for use in
setting our overall goals.
(3) The City must obtain the following information about DBE and non-DBE contractors and
subcontractors who seek to work on your Federally-assisted contracts:
(i) Firm name;
(ii) Firm address;
(iii) Firm's status as a DBE or non-DBE;
(iv) Age of the firm; and
(v) The annual gross receipts of the firm. We may obtain this information by asking each
firm to indicate into what gross receipts bracket they fit (e.g., less than $500,000; $500,000-
$1 million; $1-2 million; $2-5 million; etc.) rather than requesting an exact figure from the
firm.
(I.() We may acquire the information for our bidders list in a variety of ways. For example, we
can collect the data from all bidders, before or after the bid due date. We can conduct a
survey that will result in a statistically sound estimate of the universe of DBE and non-DBE
contractors and subcontractors who seek to work on the City's Federally-assisted contracts.
We may also combine different data collection approaches (e.g., collect name and address
information from all bidders, while conducting a survey with respect to age and gross
receipts information).
What assurances must the City and contractors make?
(a) Each financial assistance agreement you sign with a DOT operating administration (or a
primary recipient) must include the following assurance:
The City 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 City shall take all necessary and
reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and
administration of DOT-assisted contracts. Upon notification to the recipient of its failure to
carry out its approved program, DOT may impose sanctions 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.).
COMMISSION MEMO RE DBE PLAN
March 17, 2004
PAGES OF6
(b) Each contract the City sign's with a contractor (and each subcontract the prime
contractor signs with a subcontractor) must include the following assurance:
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.
How does the City set overall goals?
The City's overall goal must be based on demonstrable evidence of the availability of ready,
willing and able DBEs relative to all businesses ready, willing and able to participate on
your DOT-assisted contracts (hereafter, the "relative availability of DBEs"). The goal must
reflect your determination of the level of DBE participation you would expect absent the
effects of discrimination.
(1) The City must begin the goal setting process by determining a base figure for the
relative availability of DBEs. The following are examples of approaches that the City may
take toward determining a base figure. These examples are provided as a starting point for
your goal setting process. Any percentage figure derived from one of these examples
should be considered a basis from which you begin when examining all evidence available
in your jurisdiction. These examples are not intended as an exhaustive list. Other methods
or combinations of methods to determine a base figure may be used, subject to approval by
the concerned operating administration.
(2) The City must determine the number of ready, willing and able DBEs in our market from
the DBE directory. Using the Census Bureau's County Business Pattern (CBP) database,
determine the number of all ready, willing and able businesses available in the City's
market that perform work or provide the goods that are being purchased.
The City will determine the base figure for the relative availability of OBEs utilizing the
following formula:
Ready, willing, and able DBEs
Base figure =
All firms ready, willing and able
(3) Use a bidders list. Determine the number of DBEs that have bid or quoted on the City's
DOT-assisted prime contracts or subcontracts in the previous year. Determine the number
of all businesses that have bid or quoted on prime or subcontracts in the same time period.
COMMISSION MEMO RE DBE PLAN
March 17, 2004
PAGE 6 OF6
Divide the number of DBE bidders and quoters by the number for all businesses to derive a
base figure for the relative availability of DBEs in our market.
(4) Use data from a disparity study. Use a percentage figure derived from data in a valid,
applicable disparity study.
(5) Use the goal of another DOT recipient. If another DOT recipient in the same, or
substantially similar, market has set an overall goal in compliance with this rule, the City
may use that goal as a base figure for our goal.
(6) Alternative methods. The City may use other methods to determine a base figure for
your overall goal. Any methodology you choose must be based on demonstrable evidence
of local market conditions and be designed to ultimately attain a goal that is rationally
related to the relative availability of DBEs in our market (i.e., South Florida).
What happens if the City does not meet the DBE Goals?
Pursuant to 49 CFR ~26.47, the City cannot be penalized, or treated by FTA as being in
noncompliance if our DBE participation falls short of our overall goal, unless the City has
failed to administered our DSE program in good faith.
CONCLUSION
Inasmuch as 49 CFR 26 mandates that the City, as a recipient of Federal Transit
Administration (FTA) funds totaling $8,017,020, adopt and implement a DBE program, it is
recommended that the City Commission: 1) authorize the City Manager or designee to
adopt and implement a DBE program pursuant to 49 CFR 26, for the purchase of goods,
services, equipment and facilities projects, relative to Federal Transit Administration (FTA)
funds only; and 2) authorize the City Manager or designee to transmit the DBE plan to the
U.S. Department of Transportation's Federal Transit Administration (FTA) for approval.
L
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