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Disadvantaged Bus Ent Cert ProMEMORANDUM February 13, 2002 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Adoption of a Statewide Disadvantaged Business Enterprise (DBE) Certification Program The Federal Register 49 CFR Part 26 included a requirement for a "one-stop" certification process for approval of contractors and suppliers as Disadvantaged Business Enterprises. This will be a comprehensive statewide listing of approved DBE's instead of several agencies having their own approved lists of DBE's. Failure to approve this agreement will result in the loss of US DOT funding. Public Works Director Mike Koch is recommending approval of the statewide Unified Certification Program for Disadvantaged Business Enterprises. I concur with the recommendation and respectfully request Mayor and City Council approval. MiChael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Michael A. Koch, Public Works Director CITY OF DUBUQUE, IOWA MEMORANDUM February 12, 2002 TO: FROM: SUBJECT: Michael C. Van Milligen, City Manager Michael A. Koch, Public Works Director Adoption of a Statewide Disadvantaged Business Enterprise (DBE) Certification Program INTRODUCTION The Federal Register 49 CFR Part 26 included a requirement for a "one-stop" certification process for approval of contractors and suppliers as Disadvantaged Business Enterprises. DISCUSSION The federal regulation requires the development and approval of such a certification process by the end of February, 2002. Enclosed is a Unified Certification Program (UCP) which has been prepared and adopted by the Iowa Department of Transportation for the entire State of Iowa. This will be a comprehensive statewide listing of approved DBE's instead of several agencies each having their own approved lists of DBE's. Failure of the City to approve the attached UCP agreement will result in the loss of US DQT funding. RECOMMENDATION I recommend City Council approval of the attached Unified Certification Program agreement through adoption of the enclosed resolution. ACTION TO BE TAKEN The City Council is requested to adopt the enclosed resolution approving the statewide Unified Certification Program for Disadvantaged Business Enterprises. MAK/vjd RESOLUTION NO.. 75-02 RESOLUTION APPROVING TRANSPORTATION UNIFIED AGREEMENT IOWA DEPARTMENT OF CERTIFICATION PROGRAM Whereas, the Federal Register 49 CFR Part 26 requires the development of a "one-stop" process for DBE certification, to be developed by the end of February, 2002; and Whereas, the Iowa Department of Transportation has developed a statewide Disadvantaged Business Enterprise (DBE) directory; and Whereas, all recipients of US DOT funding are required to ratify and comply with the attached Unified Certification Program (UCP) Agreement as developed by the Iowa Department of Transportation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Iowa Department of Transportation's Unified Certification Program (UCP) agreement is required to be ratified and executed by any recipient of US DOT funding. Section 2. That the City Council approves of the requirements as outlined in the attached UCP. Section 3. That the Mayor be authorized and directed to execute the UCP on behalf of the City Council. Passed, approved and adopted this 18th day of February, 2002. Attest: Ann E. Michalski, Mayor Pro-Tem Jeanne F. Schneider, City Clerk RESOLUTION NO. -02 RESOLUTION APPROVING TRANSPORTATION UNIFIED AGREEMENT IOWA DEPARTMENT OF CERTIFICATION PROGRAM Whereas, the Federal Register 49 CFR Part 26 requires the development of a "one-stop" process for DBE certification, to be developed by the end of February, 2002; and Whereas, the Iowa Department of Transportation has developed a statewide Disadvantaged Business Enterprise (DBE) directory; and Whereas, all recipients of US DOT funding are required to ratify and comply with the attached Unified Certification Program (UCP) Agreement as developed by the Iowa Department of Transportation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Iowa Department of Transportation's Unified Certification Program (UCP) agreement is required to be ratified and executed by any recipient of US DOT funding. Section 2. That the City Council approves of the requirements as outlined in the attached UCP. Section 3. That the Mayor be authorized and directed to execute the UCP on behalf of the City Council. Passed, approved and adopted this __ day of ,2002. Attest: Terrance M. Duggan, Mayor Jeanne F. Schneider, City Clerk IOWA DEPARTMENT OF TRANSPORTATION (Iowa DOT) UNIFIED CERTIFICATION PROGRAM (UCP) AGREEMENT Development & Proposal The new Disadvantaged Business Enterprise (DBE) requirements contained in 49 CFR Part 26 included a provision for a "one-stop" certification process. The process must be defined and submitted to the Secretary of Transportation for approval within 3 years of publication of the regulations, February 2002. (Attachment A) Failure to develop and execute a UCP agreement will result in a loss of USDOT funding. Impact on Recipient Programs Federal regulations, 49 CFR Part 26, require all USDOT fund recipients implement a UCP within three years. The statewide UCP must establish a single uniform process or "one stop- shopping" for DBE applications, certifications, and development of a single point DBE Directory. All USDOT recipients will be required to ratify the UCP agreement and all DBE certifications by the Iowa DOT will be binding. The UCP will not establish, recommend or alter any agencies' overall DBE Program, other than to supplement an approved program submittal, DBE goal, or goal methodology. DBE goal development, administration, monitoring, and reporting remains the soul responsibility of the agency with a USDOT approved DBE Program in accordance with 49 CFR Part 26, subject to any oversight requirements of the lead agency. Any agency that elects not to establish a DBE Program as set forth in 49 CFR Part 26 will be required to adopt and implement the lead agency's program. The lead agency in Iowa is the Iowa DOT for the majority of the recipient's USDOT federal funds. Reciprocity The Iowa DOT may elect to enter into a written reciprocity agreement; with UCPs in other states or regions. Process Review The Iowa DOT has developed an application letter, approval letter, and certificate of approval. (Attachments B, C, & D) The current DBE application will be used due to the impending application under development by the USDOT. Ratification Process All recipients of federal funds administered b.y the USDOT, either directly or indirectly, must ratify and comply with the UCP agreement. Failure to ratify the agreement may result in the loss of federal funds from the Iowa DOT and/or the USDOT. Pagel Initial Consolidation The Iowa DOT will review all firms that make a written request to determine eligibility under 49 CFR Part 26. The Iowa DOT will review any investigative information, the certification file, and any other documentation provided. The Iowa DOT will then make a determ'mation as to whether or not the firm meets the eligibility requirements. The fi:rm may appeal this decision to the Appeals Committee. After the effective date of this Agreement, only firms certified based on guidelines prescribed in 49 CFR Part 26 and provisions of this agreement, shall be recognized as certified by the Iowa DOT. Appeals Process The Appeals Committee will consist of 5 members. The Appeals Committee will give the firm the oppommity for administrative re-consideration of the eligibility determ'mation. As required inthe DBE regulations, a fn'rn may appeal directly to the USDOT, however, if they choose to appeal to the Iowa DOT Appeals Committee, they do not forfeit the fight to appeal to the USDOT, within the time frame provided in 49 CFR Part 26. Initial Certification Applicant Denials - When a frrrn is denied certification, a certified letter is sent in which they are given the opportunity to appeal that decision, to an internal DBE Appeals Committee. To do this, they must request an appeal, in writing, within 15 days of their receipt of the letter. If an appeal is requested the firm is contacted within 3 days to schedule the appeal. If the denial is upheld by the Committee, the DBEfirm has the right to appeal to the USDOT within 180 days of the notice. Denial of Re-Certification and De-Certifications - When a certified firm is decertified or denied recertification, they are sent a certified letter in which they are given the opportunity to appeal that decision, to an internal DBE Appeals Committee. To do this, they must request an appeal, in writing, within 15 days of their receipt of the letter. Administrative Removal~of Eligibility - In circumstances where a certified firm, or a new applicant fern, has failed to submit required documentation or exceeded Personal Net Worth thresholds, there will be no administrative re-consideration. Those circumstances include: · Any certified firm that does not submit the annual update required in 49 CFR Part 26 will have certification removed for failure to comply after 45 days fi:om the date the update was due. The update is due March 1st of every year. Failure to submit the update is not appealable. · Any firm previously certified and denied certification due to exceeding the Personal Net Worth cap by the disadvantaged owner is not appealable. · If any certified firm's disadvantaged owner's Personal Net Worth exceeds the cap within the 3 year period of certification, the eligibility of the firm will be removed. Removal of certification for exceeding Personal Net Worth is not appealable. Page 2 SIC/NAIC Codes The Iowa DOT agrees to certify all firms in compliance with 49 CFR Part 26, including designating specific work types. The Iowa DOT agrees to use the SIC/NAIC codes for those designations. Any firm may request modification and/or additions to their approved codes by making a written request to the Iowa DOT. The request must include the equipment and experience indicating the firm's ability to perform the particular work type. In addition, the firm must submit documentation of past contracts on which the firm has performed the specific type of work. A sample request application is set out in Attachment E. 3ra Party Challenges The Iowa DOT shall accept written complaints from any person alleging that a certified finm is ineligible. The complaint must state specific reasons for ineligibility and submit any documentation in support of the complaint. The firm being challenged will be notified by the Iowa DOT, in writing, of the challenge, the basic grounds, and relevant regulations. The Iowa DOT shall thoroughly investigate the complaint, within a reasonable time, not to exceed 60 days. The agency shall notify the DBE in writing, by certified mail, of the preliminary findings. If reasonable cause to remove certification eligibility is found, the Iowa DOT will notify the complainant of the specific grounds and inform the finn of the right to appeal the preliminary finding to the Iowa DOT. The Appeals Committee will be the hearing board for all challenges to currently certified frans. This does not include denial of re-certifications or new certification requests. The firm may request an appeal to the Iowa DOT, in writing, of the intent to remove certification within 15 days of the date of the notice. The USDOT may notify the Iowa DOT of reasonable cause to find a certified DBE fn-m to be ineligible and the Iowa DOT shall immediately removed the certification eligibility of that firm. Supportive Services Assistance is provided to all DBE certified firms in the following areas. · preparation of the certification application · information about how to obtain bidding documents and plans · plan reading · dealing with contractors · information about dealing with the Iowa DOT · assistance in developing loan packages and fmancial statements Page 3 ATTACHMENTS Attachment A 49 CFR Part 26 §26.81 What are the requirements for Unified Certification Programs? (a) You and all other DOT recipients in your state must participate in a Unified Certification Program(UCP). (1) Within three years of [insert date 30 days after date of publication in Federal Register], you and the other recipients in your state must sign an agreement establishing the UCP for that state and submit the agreement to the Secretary for approval. The Secretary may, on the basis of extenuating circumstances shown by the recipients in the state, extend this deadline for no more than one additional year. (2) The agreement must provide for the establishment ofa UCP meeting all the requirements of this section. The agreement must specify that the UCP will follow all certification procedures and standards of this part, on the same basis as recipients; that the UCP shall cooperate fully with oversight, review, and monitoring activities of DOT and its operating administrations; and that the UCP shall implement DOT directives and guidance concerning certification matters. The agreement shall also commit recipients to ensuring that the UCP has sufficient resources and expertise to carry out the requirements of this part. The agreement shall include an implementation schedule ensuring that the UCP is fully operational no later than 18 months following the approval of the agreement by the Secretary. (3) Subject to approval by the Secretary, the UCP in each state may take any form acceptable to the recipients in that state. (4) The Secretary shall review the UCP and approve it, disapprove it, or remand it to the recipients in the state for revisions. A complete agreement which is not disapproved'hr remanded wittdn 180 days of its receipt is deemed to be accepted. (5) If you and the other recipients in your state fall to meet the deadlines set forth in this paragraph (a), you shall have the opportunity to make an explanation to the Secretary why a deadline could not be met and why meeting the deadline was beyond your control. If you fall to make such an explanation, or the explanation does not justify the failure to meet the deadline, the Secretary shall direct you to complete the required action by a date certain. If you and the other recipients fttil to carry out this direction in a timely manner, you are collectively in noncompliance with this part. (b) The UCP shall make all certification decisions on behalf of all DOT recipients in the state with respect to participation in the DOT DBE Program. Page 4 (1) Certification decisions by the UCP shall be binding on all DOT recipients Mt[fin the state. (2) The UCP shall provide "one-stop shopping" to applicants for certification, such that an applicant is required to apply only once for a DBE certification that will be honored by all recipients in the state. (c) (3) All obligations of recipients with respect to certification and nondiscrimination must be carried out by UCPs, and recipients may use only UCPs that comply with the certification and nondiscrimination requirements of this part. Ail certifications by UCPs shall be pre-certifications; i.e., certifications that have been made final before the due date for bids or offers on a contract on which a fmu seeks to participate as a DBE. A UCP is not required to process an application for certification fi:om a firm having its principal place of business outside the state if the firm is not certified by the UCP in the state in which it maintains its principal place of business. The "home state" UCP shall share its information and documents concerning the firm with other UCPs that are considering the firm's application. Subject to DOT approval as provided in this section, the recipients in two or more states may form a regional UCP. UCPs may also enter into written reciprocity agreements with other UCPs. Such an agreement shall outline the specific responsibilities of each participant. A UCP may accept the certification of any other UCP or DOT recipient. (f) Pending the establishment of UCPs meeting the requirements of this section, you may enter into agreements with other recipients, on a regional or inter-jurisdictional basis, to perform certification functions required by this part. You may also grant reciprocity to other recipient's certification decisions. (g) Each UCP shall maintain a unified DBE directory containing, for all firms certified by the UCP (including those fi:om other states certified under the provisions of this section), the informatiov~required by §26.31. The UCP shall make the directory avallabl..e to the public electronically, on the interact, as well as in prim. The UCP shall update the electronic version of the directory by including additions, deletions, and other changes as soon as they are made. (h) Except as otherwise specified in this section, all provisions of this subpart and subpart D of this part pertaining to recipients also apply to UCPs. Page 5 Attachment B Thank you for your interest in the Iowa Department of Transportation's Disadvantaged Business Enterprise Program. The certification process is perhaps the most critical single element of DBE program administration, since it is to determine eligibility for participation in the program. As such, it is a state's first line of protection against program abuse. In order to be certified, a fnma must be: · A small business as defined by Section 8(d) of the Small Business Act and as amended by TEA-21of 1998. (13 CFR, paragraph 121.3-8, lists definitions for small businesses by industry type.). TEA-21 of 1998 restricts the size of small businesses to $17.42 million three-year average gross income. · Owned (at least 51 percent) by a socially and economically disadvantaged person or persons; and · Controlled by a socially and economically disadvantaged person or persons. To qualify as a Disadvantaged Business Enterprise (DBE) your firm must meet the eligibility standards established in Part 26, Title 49 of the Code of Federal Regulations, published February 2, 1999. Additional requirements were also passed in the Transportation Equity Act for the 21~t Century (TEA-21).The Congress directed the U.S. Secretary of Transportation to establish minimum uniform criteria for state governments to use in certifying that a firm qualifies for participation in the DBE program. As a minimum, according to the Act, the criteria include on- site visits, field interviews, licenses, analysis of stock ownership, listing of equipment, analysis of bonding capacity, listing of work completed, resumes of principal owners, financial capacity, type of work performed, and notarized statement of personal net worth and that each DBE owner is, in fact, socially and economically disadvantaged. A copy of the rules are available upon request fxom the Iowa Department of Transportation's Office of Contracts. .~oOn receipt of the completed Certification Application, the Department will evaluate the rmation submitted to determine compliance with the above criteria. It is, therefore, imperative that your application and any attached documentation provide evidence of the ownership and control of your firm. You shall also show that your firm has the resources necessary to perform the work you indicated. Only those firms which have been certified under this process can be considered for participation in the Department's DBE Program. To ensure a timely review of your application, you must answer all questions and submit all requested documentation. If yours is a recently established firm, and portions of the application do not seem applicable, please place (NA) on the questions that do not apply. Failure to complete portions of the application and to submit the requested documentation will delay the certification process. Sincerely, EEO Administrator Page 6 Certificate No. Disadvantage Business Enterprise Certification This Certifies That Has met the requirements under the rules promulgated by the U.S. Department of Transportation pursuant to 49 Code of Federal Regulations, Part 26, and is eligible to participate as a Disadvantaged Business Enterprise in the Iowa Department of Transportation DBE Program Issue Date: Expiration Date: Craig J. Russell, EEO Administrator Roger E. Bierbaum, P.E., Contracts Engineer This certification may be revoked by the department upon finding of ineligibility and said company is subject to examination at any time and maybe required to supply additi6nal information for review notwithstanding the issuance of this certificate. Page 7 Attachment D Date Co. Name Address City, ST Zip Dear: The Iowa Department of Transportation (Iowa DOT) has approved the eligibility of COMPANY NAME for credit on Iowa DOT contracts performing a commemially useful function in the area(s) of: WORK TYPES CERTIFIED FOR. For record-keeping purposes Iowa DOT is counting COMPANY NAME. as a Woman/Disadvantaged Business Enterprise (WfDBE). If the firm should develop the resources, including equipment and personnel, to become involved in other areas, you should notify our office before quoting contracts in those other areas. The certification of eligibility is valid for three years from Month Day, 200? to March 1,200?. Enclosed with this approval letter is your DBE Certification Certificate. Your tim's name will be retained on our list of certified DBE's. This determination is based on information provided to the Iowa DOT on the Schedule A Form Application for Determining Disadvantaged Business Enterprise, and the Social and Economic Disadvantaged Forms. Should this information change, you must complete a new application within 10 days of the change. In addition, Iowa DOT reserves the fight to rescind this certification, should the information upon which it is based is proven false, inaccurate, or misleading. You will be required to submit a Recertification Form to renew certification every three years, with Personal Financial Statements each year. These forms will be supplied by the Office of Contracts, EEO Section. -Iowa DOT has the responsibility for providing technical assistance to DBE firms for our highway projects. These services are currently being provided by the Office of Contracts at 515-239-1422. Certified firms are encouraged to utilize this office for assistance. If you have any questions, please feel free to contact this office. Sincerely, Compliance Officer Page 8 Attachment E DISADVANTAGED BUSINESS ENTERPRISE Request for Standard Industry Classification (SIC) Code Review Name of Firm: Street Address: City: State: Zip: Description of SIC Code i Addition Requested List and attach documentation of the 5 largest contracts or supply invoices completed for the SIC code requested. Owner/Contractor Phone Contract Project Name/Location Type of Work Perfomaed Amount List all equipment you own or lease used to perform the work for the SIC code requested. Copies of current lease agreements or proof of payment must be attached. Type of Equipment Make Model Year Date Acquired Present Value Please attach any other documentation or information relevant to the review of the SIC code your firm requested. This can include documentation of technical licenses, leases of property or facilities, training or expertise. Signature Printed name Title Date P~e9 State of Iowa Recipients CITIES Ackley Albia Algona Allison Altoona Ames Anamosa Ankeny Asbury Atlantic Bellevue Bettendorf Blakesburg Bloomfield Bonaparte Boone Burlington Carroll Casey Cedar Falls Cedar Rapids Centerville Charles City Cherokee Clear Lake Clinton Clive Coin Conrad Coralville Council Bluffs Creston Davenport De Witt Decorah Delmar Denison Denver Des Moines Dubuque Dyersville Dysart Eagle Grove Eldon Eldridge Estherville Waterloo Fairfield Forest City Fort Dodge Fort Madison Fredericksburg George Greenfield Grinnell Grundy Center Guthrie Center Harlan Hiawatha Hinton Hudson Hull Ida Grove Independence Indianola Iowa City Iowa Falls Johnston Keokuk Kiron Knoxville La Porte City Lansing LeMars Leon Madrid Manchester Manning Maquoketa Marion Marshalltown Mason City Maxwell Milford Monona Mt. Pleasant Mount Vernon Muscatine Nevada New Hampton Newton North Liberty 0elwein 0nawa Osage Oskaloosa Ottumwa Pella Peosta Perry Pleasant Hill Red Oak Redfield Bettendorf Rudd Sergeant Bluff Shelby Sheldon Shell Rock Shenandoah Sioux Center Sioux City Spencer Storm Lake Story City Strawberry Point Tiffin Iowa City Urbandale Van Home Vinton Wash'mgtun Waterloo Waverly Webster City West Liberty Wheatland Windsor Hgts AIRPORT Ames Ankeny Atlantic Audubon Belle Pla'me Bloomfield Boone Burlington Carroll Cedar Rapids Centerville Chafiton Charles City Cherokee Clarinda Clarion Clinton Council Bluffs Creston Davenport Connell Flying Service Deulson Des Moines Dubuque Emmetsburg Estherville Fairfield Forest City Fort Dodge Fort Madison Greenfield Grinnell Guthfie County Hampton Harlan Humboldt Independence Knoxville Iowa City Iowa Falls Jefferson Keokuk Lamoni LeMars Mapletun Maquoketa Marshalltown Mason City Monticello . _ Mount Pleasant Muscatine Newton 0elwein Orange City 0sceola Oskaloosa Ottumwa Pella Perry Pocahontas Red Oak Rockwell City Sac City Sheldon Shenandoah Sioux City Spencer Spirit Lake Storm Lake Vinton Washington Waterloo Waverly Webster City West Union P~el0 TRANSITS Ames Transit Agency City of Bettendorf Burlington Urban Service Five Seasons Transportation (Cedar Rapids) Clinton Municipal Transit City of Council Bluffs Davenport CitiBus Des Moines METRO Keyline Transit Iowa City Transit U of I, Dept. of Parking & Transportation City of Mason City Muscatine City Transit Ottumwa Transit Authority Northeast Iowa Community Action Corp. (Decorah) Spencer Regional Transit Siouxland Regional Transit (Sioux City) MIDAS (Fort Dodge) Region 6 Planning Comm. (Marshalltown) Iowa Northland Regional Transit (Waterloo) Dubuque Regional Transit Great River Bend Service (Davenport) East Central Iowa Council of Governments (Cedar Rapids) Region 12 Council of Governments (Carroll) SW Iowa Planning Council (Atlantic) Area XIV Agency on Aging (Creston) SE Iowa Community Action Org. (Burlington) Sioux City Transit Heart of Iowa Regional Transit (Des Moines) Dart - City of Fort Dodge Coralville Transit System Marshalltown Municipal Transit Metropolitan Transit (Waterloo) U ofI - Transit Manager City of Albia City of Algona COUNTIES Clay Hardin Marion Sioux Adair Clayton Harrison Marshall Story Adams Clinton Henry Mills Tama Allamakee Crawford Howard Mitchell Taylor Appanoose Dallas Humboldt Monona Union Audubon Davis Ida Monroe Van Buren Benton Decatur Iowa Montgomery Wapello Black Hawk Delaware Jackson Muscatine Warren Boone Des Moines Jasper O'Brien Washington Bremer Dickinson Jefferson Osceola Wayne Buchanan Dubuque Johnson Page Webster Buena Vista Emmet Jones Palo Alto Winnebago Butler Fayette Keokuk Plymouth Winneshiek Calhoun Floyd Kossuth Pocahontas Woodbury Carroll Franklin Lee Polk Worth Cass Fremont Linn Pottawattamie Wright Cedar Greene Louisa Poweshiek Cerro Gordo Grundy Lucas Ringgold Cherokee Guthrie Lyon Sac Chickasaw Hamilton Madison Scott Clarke Hancock Mahaska Shelby Page 11 Recipient Signature(s) Federal Regulations 49 CFR Part 26 requires o11 recipients in the state to sign this agreement establishing this document as the UCP for the State of Iow~ By your signatures, you are completing that agreement. Please obtain all necessary signatures and return this page only to the Iowa Department of Transportation, Office of Contracts, 800 Lincoln Way, Ames, Iowa 50010. Recipient Name (i.e. City/County/Transit) (Name & Title) (Name & Title) (Name & Title) (Name & Title) (Name & Title) (Name & Title) (Name & Title) (Name & Title) ,~ame & Title) Page 12