The San Mateo County Transit District (“District”) is committed to the participation of Disadvantaged Business Enterprises (“DBEs”) in District contracting opportunities in accordance with Federal Regulation 49 C.F.R. Part 26, effective March 4, 1999, as may be amended (“Regulations”). It is the policy of the District to ensure nondiscrimination on the basis of race, color, sex or national origin in the award and administration of the U.S. Department of Transportation assisted contracts. It is the intention of the District to create a level playing field on which DBEs can compete fairly for contracts and subcontracts relating to the District’s construction, procurement and professional services activities.

The General Manager/CEO of the District is responsible for adherence to this policy. The Manager of Employee Relations and Civil Rights and the DBE Officer, in cooperation with the Chief Officers of the District, are responsible for the development, implementation and monitoring of a Disadvantaged Business Enterprise Program in furtherance of the District’s nondiscrimination policy. It is the expectation of the Board of Directors and the General Manager/CEO that all District personnel shall adhere to the provisions and the spirit of this program.

This policy is available to all District personnel and to members of the community that perform or are interested in performing work on District contracts. The complete DBE Program and annual overall goals analysis are available for review at:

         DBE Officer
         San Mateo County Transit District
         1250 San Carlos Avenue
         P.O. Box 3006
         San Carlos, CA 94070-1306

If you have any questions or would like further information regarding this program, please call the DBE Office at (650) 508-7939.

Dated: May 19, 2004 /s/ Michael J. Scanlon, General Manager/CEO

This policy has been adopted pursuant to Board Resolution 2004-19 dated May 12, 2004 for the San Mateo County Transit District, and a similar policy has been adopted by the Peninsula Corridor Joint Powers Board, which is managed by the District.

The U.S. Department of Transportation (DOT), through its operating administrations which include Federal Highway Administration, the Federal Aviation Administration and the Federal Transit Administration, distributes in excess of $20 billion annually throughout the nation to help finance thousands of projects across the country. Although a major portion of the funds is allocated for highway construction, funds are also provided to local public transit authorities, including the District, for mass transit projects. The DOT DBE Program provides a vehicle for increasing the participation by disadvantaged businesses in these procurements.

The main objectives of the DBE Program are:

• To ensure that small disadvantaged business enterprises (DBE) can compete fairly for federally funded transportation-related projects.

• To ensure that only eligible firms participate as DBEs.

• To assist DBE firms in competing outside the DBE Program.

In order for small disadvantaged firms, including those owned by minorities and women, to participate as a DBE in DOT-assisted contracts, they must apply for and receive certification as a DBE. For the state of California, DBE certification is performed by the certifying agencies of the California Unified Certification Program (CUCP).

For additional information about the DBE Program, please visit the U.S. Department of Transportation, Office of Small and Disadvantaged Business Utilization.

For information about DBE certification, please visit the California Unified Certification Program.

Important Public Notice

Recent events have impacted the DBE Program. Please review the California Department of Transportation (Caltrans) Public Notice regarding possible changes to its implementation of the DBE Program, which may affect the District’s implementation of the Program. The Caltrans Public Notice may be viewed here.

1. The firm must be an existing for-profit "Small Business Concern ", as defined pursuant to Section 3 of the Small Business Act and Small Business Administration regulations implementing it (13 CFR Part 121). Further, the average annual gross receipts for the firm (including its affiliates) over the previous three fiscal years shall not exceed the cap of $22.41 million, as adjusted for inflation by the U.S. Secretary of Transportation.

2. The firm must be at least 51% owned by one or more socially and economically disadvantaged individuals. In the case of a corporation, such individuals must own at least 51% of each class of voting stock outstanding and 51% of the aggregate of all stock outstanding. In the case of a partnership, socially and economically disadvantaged individuals must own 51% of each class of partnership interest. In the case of a limited liability company, socially and economically disadvantaged individuals must own at least 51% of each class of member interest.

3. The firm's ownership by socially and economically disadvantaged individuals must be real, substantial and continuing, going beyond pro forma ownership of the firm.

4. The firm must be an independent business, and one or more of the socially and economically disadvantaged individuals who own it must control its management and daily operations.

5. The firm must be owned and controlled by individuals, each of whose personal net worth does not exceed $750,000, excluding an individual 's ownership interest in the applicant firm and the individual 's equity in his or her personal, primary residence. "Personal Net Worth " means the net value of the assets of an individual remaining after total liabilities are deducted. A "Personal Net Worth Statement " is included in the DBE Certification application.

6. "Socially and Economically Disadvantaged Individual" means any individual who is a citizen of the United States (or lawfully admitted permanent resident)and who is:

1. Any individual found to be socially and economically disadvantaged, on a case-by-case basis, by a certifying agency of the California Unified Certification Program (CUCP), pursuant to standards of the U.S. Department of Transportation in 49 CFR Part 26, Subpart D-Certification Sandards.

2. Any individual in the following groups, members of which are rebuttably presumed to be socially and economically disadvantaged:

1. "Black Americans" which includes persons having origins in any of the Black racial groups of Africa;

2. "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;

3. "Native Americans" which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians;

4. "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;

5. "Subcontinent Asian Americans" which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka;

6. Women; and

7. Any additional groups whose members are designated as socially and economically disadvantaged by the SBA, at such time as the SBA designation becomes effective.

If your company satisfies all the above criteria, you may be interested in applying for DBE certification status. Please visit the California Unified Certification Program website for a DBE application form and information.