TO: Honorable City Council
FROM: City Manager
SUBJECT: A Resolution of the City Council of the City of Commerce, California, Approving the Adoption of the Disadvantage Business Enterprise (DBE) Program Participation Goals for Federal Fiscal Years (FFY) 2024-2025 through 2026-2027, for Submission to the Federal Transit Administration MEETING DATE: AUGUST 27, 2024
RECOMMENDATION:
The City Council will consider adopting a Resolution approving the Adoption of the Disadvantage Business Enterprise (DBE) Program Participation Goals for Federal Fiscal Years (FFY) 2024-2025 through 2026-2027 for Submission to the Federal Transit Administration.
BACKGROUND
The City of Commerce Transit is required to develop and submit a triennial goal for DBE participation on U.S. Department of Transportation Federal Transit Administration-assisted contracts as a condition of federal financial assistance, pursuant to recently revised regulations set forth under Title 49 CFR Part 26; participation by Disadvantaged Business Enterprises in City of Commerce Programs. In accordance with these DBE regulations, the City of Commerce has established the DBE goal to start the Federal Fiscal Year 2025-2027 to ensure full compliance with relevant regulatory requirements.
With an established overall DBE goal of 7% starting FFY 2024-2025, DOT (FTA) assisted contracts to address critical components and fulfill specific requirements for narrow tailoring in accordance with Title 49 CFR Part 26. Commerce’s established overall DBE goal was developed utilizing the federally prescribed two-step goal-setting methodology.
Step 1 included establishing a base figure utilizing quantifiable evidence to determine the relative availability of DBEs within specified industries identified as a part of the Agency’s DOT- (FTA) assisted contracting projects anticipated to be awarded by the City of Commerce starting FFY 2025 through FFY 2027. The City completed this step using the Caltrans Calcert Directory of Certified DBE firms, the City of Commerce Planetbids registered vendors database, and the 2024 U.S. Census Bureau County Business Patterns database.
Upon establishing the base figure, City staff surveyed and assessed other known relevant evidence to determine what additional adjustments were needed to narrowly tailor the base figure to the City’s market area.
Factors considered in the adjustment of the base figure included the historical and current capacity of DBEs measured by actual attainments on similar projects. Following the Council’s approval of the established overall triennial goal starting FFY 2025-2027, staff will submit to FTA for final review. The established overall DBE goal starting FFY 2025-2027 will be updated triennially to maintain relevancy to local market conditions and factors impacting DBE availability.
ANALYSIS:
The City must give public notice and provide a 45-day public comment period before final approval of the City’s DBE program goals. The 45-day public comment period commences with the publication of the public notice of the program goals and is required before the program goals are submitted to Caltrans for final approval. The 45-day public comment period for the City’s DBE program participation goals will commence on August 28, 2024. The required public comment period will be properly noticed and published on the City’s official website. The Disadvantaged Business Enterprise Program will be available for implementation for all future federally funded projects that the City of Commerce Transit undertakes.
FISCAL IMPACT
This activity can be carried out without impacting the current operating budget.
RELATIONSHIP TO STRATEGIC GOALS:
This agenda item reports on the 2016 Strategic Planning Goal: “Grow revenues to ensure all expenses are being met so that we can remain fiscally responsible and continue to provide services to the residents.” This DBE program is required for the City to continue receiving FTA 5307 capital funds for transit-related projects.
Prepared and Recommended by: Claude McFerguson, Director of Transportation Fiscal impact reviewed by: Vilko Domic, Assistant City Manager Approved as to form by: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager
Attachments:
Resolution
DBE Overall Goal and Methodology (FFY2025-2027)
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CITY OF COMMERCE
AGENDA REPORT
Item No.