HomeMy WebLinkAbout6/21/2000 - STAFF REPORTS (8) DATE: June 21, 2000
TO: City Council
FROM: Deputy Director of Aviation-Administration via Director of Aviation
EMERGENCY PURCHASE ORDER FOR PROFESSIONAL SERVICES FOR A FEDERALLY
MANDATED DISADVANTAGED BUSINESS ENTERPRISE PROGRAM (DBE)
RECOMMENDATION:
It is recommended that the City Council ratify approval of an emergency purchase order for
professional services used to develop and Implement a revised DBE program for Palm
Springs International Airport(PSP)as mandated under DOT regulation 49 CFR Parts 23
and 26 with Airport Concession Consultants(ACC)in an amount not to exceed$12,000.
BACKGROUND:
The United States Department of Transportation(DOT)Issued its final rule for regulations
regarding participation by disadvantaged business enterprises for federally funded
programs effective as of March 4, 1999. The DBE program is intended to remedy past and
current discrimination against disadvantaged business enterprises,ensure a"level playing
field" and foster equal opportunity In DOT-assisted contracts, improve the flexibility and
efficiency of the DBE program and reduce burdens on small businesses. The final rule
replaces the former DBE regulation,which now contains only the rules for the separate DBE
program for airport concessions,with a new regulation.
With the passage of this regulation, the City of Palm Springs, Department of Aviation was
required to submit a new DBE program, based on the final rule, to the Federal Aviation
Administration by September 1, 1999. In preparation of submitting this revised program,
Airport and Engineering staff attended a one day workshop hosted by Cal-Trans in an effort
to gain Insight Into the DOT's regulatory requirements. A draft plan from Cal-Trans officials
was submitted to the attendees and Information was given regarding the Interpretation of
the rule.
In an attempt to meet the requirements of the rule and the deadline of September 1, 1999,
Airport staff utilized language from the Cal-Trans draft plan In our revised DBE program.
Unfortunately, Cal-Trans failed to submit its plan by September 1, 1999 and language in
that document was never provided to the DOT. Additionally,the FAA,as an agency of the
DOT,is much more stringent in its Interpretation of the rule. On April 26,2000,Airport staff
received a four page letter from the FAA requiring fourteen revisions to our submitted plan.
These recommended changes were due within 15 days of receipt of the letter. This was
very concerning to the Department of Aviation because of the need to keep our grant
assurances Intact for our Airport Improvement Programs(AIP). Federal monies allocated
for AIP programs require the inclusion of an approved DBE program. Staff did not want to
jeopardize losing any of our existing grant monies totaling over$24 million dollars, or any
future allocations as a result of our failure to comply with the new regulation.
Staff sought direction from other airports in the region and from the civil rights offices of the
FAA. We learned that there were few airports who had received approval for their revised
DBE program and many were in the same situation as we were. We did learn that John
Wayne Airport was very dose to receiving approval for Its DBE program, and that it had
utilized the professional services of ACC. If there are additional changes required by the
FAA, ACC will continue to work with Airport staff in revising the DBE program for final
acceptance.
With this information,staff sought a proposal from ACC to develop and implement a revised
DBE program for PSP. With the concurrence of the City Manager and the Procurement
Manager, staff Issued an emergency purchase order with ACC for professional services
needed to meet the deadline for the recommendations and revisions presented by the FAA
for PSP's DBE program.
Without delay,ACC began revising the submitted program and Airport staff notified the FAA
that we had contracted for professional services for completion of our DBE program. The
FAA was pleased to know we were moving forward in the process with our consultant.
With notification and subsequent updates to the FAA,Airport staff, with the assistance of
ACC, submitted the revised program on June 8, 2000 to the FAA Civil Rights Offices.
With the document in hand,the FAA is reviewing the revised plan and will notify the Airport
once this review is complete. Airport staff is confident that all the recommendations and
revisions will be found satisfactory and,hopefully, no additional modifications will be
necessary.
Airport staff is recommending that City Council ratify approval of the emergency purchase
order with ACC in an amount not to exceed $12,000. Funds are available In 415-6050-
43200. No general fund monies will be used.
Approved:
RY F JER . RIDDLE
Dep Ire f Aviation-®Administration DI or of Aviation
TJ
HAROLD GOOD KAM BY 0K OF PIflW
Procurement Ma ger
Approved:
City Manager
Attachment: (1) Minute Order
(1) Letter of Correspondence (FAA)
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April 26, 2000
Airport Manager
Palm Springs International Airport
3400 E.Tahquift-Canyon Way
Palm Springs,CA 92263
Dear W.Lincoln:
We have completed our review of the proposed disadvantaged business enterprise(DBE)
program for the Palm Springs International Airport The review was carried out under the
procedures of 49 CFR Part 26,the Department of Transportation's(DOT)DBE
regulation We offer the following comments on matters requiring revision,together witlr
our recommendations for resolution.
1. Obiectives/Poliev Statement 26M:The policy must be signed and dated
2. Financial Institutions 26.27:The plan should describe the efforts made to identify
disadvantaged financial institutions,and list the names of the actual institutions
identified We also recommend that the plan provide for making continuing efforts to
investigate the availability of services provided by these institutions.
3. DBE Directory_Correct citation on page 3 of plan to read 2631 not 26.25 which was
primed in error in the DOT"Sample Plan."
4. Monitoring&Enforcement Mechanisms 2637:The draft plan refers to the
"Subletting and Subcontracting Fair Practices Act"with only a partial citation Please
provide the full legal citation;include a copy of the act and/or pertinent provisions in the
Attachments to the plan and/or any other local,state regulations available to you.
5. Overall Goal,base figure 26A5(c) 49 C.F.R. 26.45 requires recipients to establish
an overall goal based on"demonstrable evidence of the availability of ready,willing and
able DBE's relative to all businesses ready,willing and able to participate on your DOT-
assisted contracts. . .and"reflect your domination of the level of DBE participation
you would expect absent the effects of discrimination." The regulation requires each
recipient to calculate a base figure based upon the relative availability of DBEs in your
marketa�. (093
Recommendation: You may not simply rely upon Caltrans statewide goal. Refer to
26.45 (c)and the DOT Sample plan for further guidance. We recommend that the plan
indicate the relevant market(geographic area)used in determining the relative
availability of DBEs,for example,by naming or indicating the number of eoumies fiom
the Census Bureau's County Business Pattern data.
6. motion 26A5(d) Base fiPum adjustments(Step 21:
The plan must include the evidence relied upon for adjustments made to the base figure
and a summary listing of relevant available evidence in the recipient's jurisdiction and,
where applicable,an explanation why the recipient did not use that evidence to adjust the
base figure.
Recommendation:In adjusting the base figure for current capacity of DBEs,the
recipient must include in the plan a description of the methodology used and evidence
relied upon to adjust your base figure and any other relevant evidence in its jurisdiction
and decide whether such evidence warrants an adjustment. The following is a list of
items intended to assist in this process.
a Disparity studies(26.45(a)(1)(i). Were any disparity studies conducted in the
recipient's jurisdiction? What has been done to determine whether there were any
disparity studies? For example,did the recipient check with procurement offices in the
local governmental offices?
b. Other step 2 evidence(disparities or other barriers in ability to get financing,
bonding,or insurance;data on firm formation 26.45(a)(2)} Did the recipient check with
the following organizations for relevant information?
-Local DBE organizations(if so,who?)
-Statenocal offices of(1)procurement,(2)civil rights or minority/women affairs,
and(3)business affairs or commence
-State treasurer or office of bank regulations
-State department of labor
-Institutes of higher education within the state of jurisdiction
-State attorney general's office(for lawsuits relating to discrimination in
contacting or in obtaining financial assistance).
7. Overall goal.public participation 26.45(e):In addition,49 C.FR,26.45 (g)
requires that in establishing your overall goal you must provide for public participation
and that following consultation you will publish a Notice of the overall goal in general
circulation and minority-oriented media publications.
Recommendation: The plan should describe any consultation undertaken with minority,
Womeo's and general contractor groups(26.45(g)(1)),including:
a. a description of the meetings to include dates and locations;who
attended,a brief summary of the discussions(including questions
and issues raised and information provided);and -
b. a brief summary of information obtained through any other forms of
consultation,such as surveys.
As set forth in Section 26.45(gxl),consultation should include,but not necessarily be
limited to,minority, women's and general contractor groups,community organizations,
and other officials or organizations. If such consultations were not made,the recipient
must proceed to do so.
The plan should also include a brief summary or copies of comments received as a result
of publication of the notice of the goal(Section 26.45(gp)�together with a copy of the
notice;and a brief summary of how the recipient responded to the comments it received
(e.g.,changes made to goal,comment rejected,etc.)
8. Race-NeutraMce-Conscious 26.45(e)(3)and 2651(a) (cl. :The regulation requires
that you meet the maximum feasible portion of your overall goal by using race-neutral
means of facilitating DBE participation.
Recommendation: Include in the plan a projection of the portions of your overall goal
you expect to meet through race-neutral and race-conscious means. Also,provide a list
of the race-neutral means you will utilize. Refer to 26.51(b)for examples.
9. Contract Goals 26.51(d):You must establish contract goals only on those DOT-
assisted contracts that you do not expect to meet using race-neutral means.
Recommendation:Refer to 26.51(e)and(f)and DOT Sample Plan for further guidance.
10. Counting DBE Participation: Remove extraneous references to Caltrans documents
and contract specifications as 49 CF.R 26.55 specifies how DBE participation should be
counted.
Recommendation: We recommend that you revise plan and add statement that says,
"We will count DBE participation toward overall and contract goals as provided in 49
CYJL 26.55.
11. M W"EIDVBE: DOT only accepts the designation"DBE"and does not accept
"MBE""WBE"or"DVBE"designations.
Recommendation—Remove all references to"MBE""WBE"or"DVBE"found
throughout plan and Exhibits. Specifically,see Exhibits 16-B, 16-1, 17-F. If;however,
you wish to use these for a local program,the written DBE plan should state explicitly
that it is not DOT required.
Similarly,in the Exhibits,which were attached to the plan,there are several references to
various Sections of either"standard specifications"or"government code." These are not
required by the DOT regulations and the Exhibits should not contain these references. if
however,you wish to use them for a local program,again please make reference in the
written DBE plan that conformance with(or inclusion of)these sections are not required
by 49 C.F.R. 26.
12.Certification Procedures and Standards Section 26,61-26.91.
The DBE program does not indicate what certification standards or procedures the airport
will use,nor does it contain decertification procedures.
The airport proposes to use the CALTRANS directory as the sole source of certified
DBEs. However,the program does not indicate that the airport has entered into an
agreement with CALTRANS to perform certification functions. Such an agreement is
permitted by 49 CFR Section 26.81(f)prior to establishment of a Unified Certification
Process.
Recommendation: Include in the program any existing agreement that the airport has
entered pursuant to 49 CFR Section 26.81(f)with CALTRANS. Alternatively,provide
other records,e.g.,correspondence with CALTRANS. The agreementhecords should
indicate that CALTRANS understands and agrees that it will certify or decertify DBE
contractors used exclusively on the airport's projects in accordance with Part 26
procedures and standards. If no such agreement(or correspondence,as referenced above)
exists,one will need to be developed if the airport decides to use that approach. The
DBE plan should also describe the general areas that the agreement covers,including
certification,decertification,certification appeals,and recertification. The airport should
attach a copy of the agreement or correspondence as part of their DBE plan.
13. Bidder's List:No information is given as to how you will collect this information.
Recommendation: Please provide and define a method as to how this data will be
collected.
14. Confidentiality:As per the sample plan,please summarize state and local laws,such
as State FOIA,and how they are applicable.
Please provide the recommended changes within 15 days of receipt of this letter. If you
should have any questions,please call Mr.Rudy Andrade of my staff at(310)725-3945.
Sincerely,
Judith A.Crosby
Manager,Civil Rights Staff
MINUTE ORDER NO.
THAT THE CITY COUNCIL RATIFY APPROVAL OF
AN EMERGENCY PURCHASE ORDER FOR
PROFESSIONAL SERVICES USED TO DEVELOP
AND IMPLEMENT A REVISED DISADVANTAGED
BUSINESS ENTERPRISE (DBE) PROGRAM FOR
PALM SPRINGS INTERNATIONALAIRPORT(PSP)
AS MANDATED UNDER DOT REGULATION 49
CFR Parts 23 and 26 WITH AIRPORT
CONCESSION CONSULTANTS (ACC) IN AN
AMOUNT NOT TO EXCEED$12,000.
I HEREBY CERTIFY that this Minute Order ratifying approval of an emergency purchase order for
professional services used to develop and implement a revised disadvantaged business enterprise
(DBE)program for Palm Springs International Airport(PSP)as mandated under DOT regulation
49 CFR Parts 23 and 26 with Airport Concession Consultants(ACC)In an amount not to exceed
$12,000 was adopted by the City Council of the City of Palm Springs, California, in a meeting
thereof held on the 21st of June, 2000.
Patricia A. Sanders
City Clerk
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