3/6/2024
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RiversideCA.govDISADVANTAGED BUSINESS ENTERPRISE PROGRAM REFORMEconomic Development CommitteeMarch 21, 2024FINANCE DEPARTMENT RiversideCA.gov2
•April 21, 2009: Resolution No. 21815 adopted, initiating DBE Program with Race Conscious component per State of California and U.S. DOT requirements.•April 2018: Airport, Parks and Recreation, and Public Works Departments update program to comply with DOT 49 CFR Part 26, including expanded objectives and administrative revisions.•October 1, 2018: Updated DBE Program Plan approved by City Manager.•January 2019: FAA modifies Airport Capital Improvement projects, necessitating program goal adjustments and revision of Annex A.•March 21, 2019: Latest DBE Program revision approved.•November 19, 2020: Presentation to Committee on Local Preference and DBE Procurement Policies; request for organizational plan development.•January 21, 2021: Finance Department presents Organizational Plan to Committee, incorporating stakeholder input and proposal requests for vacant City-owned land.Background 3/6/2024
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•Historical Context and Current Program Information–Recognizes need for inclusivity in economic opportunities, reflecting Riverside's diverse demographics.–Comparison with State and neighboring municipalities shows varied DBE support approaches but highlights Riverside's limited program scope.Discussion RiversideCA.gov4
•Research and Possible Reform Options–Consensus on creating a Vendor Diversity and Management Function to centralize vendor efforts and promote inclusivity.–Proposes expanding vendor engagement and community outreach, including informational sessions and mentor-protégé programs.–Suggests enhancing DBE policies for a more equitable procurement ecosystem.Discussion 3/6/2024
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•Identification and Removal of Barriers to DBEs–Focus on dismantling systemic and procedural barriers to DBE participation.–Consideration of contract unbundling to provide more opportunities for small firms.•Engagement and Outreach–Plans for at least two annual sessions to engage the local business community.–Leverage existing programs and explore new support avenues for DBEs.Discussion RiversideCA.gov6
•Policy Elements to be Determined:–Definition of DBE preference and criteria for contract eligibility.–Review of procurement policies and DBE programs from Riverside County, City of Corona, City of Moreno Valley, City of Los Angeles, and the State of California.•Other Considerations:–Limitations due to City Charter and state law, including "lowest responsible bidder" requirement and Prop. 218 "cost of service" considerations.Discussion 3/6/2024
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1. Vendor Diversity and Management Function: Centralize vendor diversity and management.2. Streamline DBE Onboarding and Certification: Simplify certification process.3. Expand Community Outreach and Engagement: Increase informational sessions and workshops.4. Implement Mentor-Protégé Programs: Foster knowledge transfer and partnerships.5. Revamp the DBE Program: Include all city procurement activities for broader inclusivity.Proposed Reforms RiversideCA.gov8
1. Pivotal Juncture: Riverside at critical point for enhancing procurement practices.2. Comprehensive Reform: Emphasis on overhauling DBE Program for broader inclusivity.3. Advancing Economic Mobility: Potential significant impact on historically marginalized groups.4. Quality Services: Commitment to delivering superior services to all community members.5. Research-Driven:Reforms based on thorough research and established best practices.6. Strategic Roadmap: Proposed changes serve as a guide towards equitable, efficient, and transparent procurement.Conclusion 3/6/2024
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STRATEGIC PLAN ALIGNMENTECONOMIC OPPORTUNITYCROSS-CUTTING THREADS Equity
Innovation
Community Trust
Fiscal Responsibility
Sustainability and Resiliency
RiversideCA.gov10
That the Economic Development, Placemaking and Branding/Marketing Committee:1. Discuss and provide input for Disadvantaged Business Enterprise Program policy reform; and2. Direct staff to incorporate discussion decisions, as well as discuss determinations for policy and legislative revisions.Recommendations 3/6/2024
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"Open Floor for Questions and Discussion"Q&A