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~ O~~it~. <br />MEMORANDUM OF UNDERSTANDING <br />REGARDING THE ADOPTION OF THE TEXAS DEPARTMENT OF TRANSPORTATION'S <br />FEDERALLY-APPROVED DISADVANTAGED BUSINESS ENTERPRISE PROGRAM BY <br />THE CITY OF SAN MARCOS <br />This Memorandum of Understanding is by and between the TEXAS DEPARTMENT OF <br />TRANSPORTATION ("TxDOT"), an agency of the State of Texas; and the City of San Marcos, <br />("the City"), a local government of the State of Texas. <br />Whereas, from time to time the City receives federal funds from the Federal Highway <br />Administration ("FHWA") through TxDOT to assist the City with the construction of projects partially <br />or wholly funded through FHWA; and <br />Whereas, the City, as asub-recipient of federal funds, is required by 49 CFR 26, to implement a <br />program for disadvantaged business enterprises ("DBEs"), as defined by 49 CFR 26 ("DBE Program"); <br />and <br />Whereas, TxDOT has implemented a DBE Program that is approved by the Federal Highway <br />Administration (FHWA) pursuant to 49 CFR part 26; and <br />Whereas, as a condition of receiving federal funds from FHWA through TxDOT, certain <br />aspects of the City's procurement of construction services are subject to review and/or concurrence by <br />TxDOT; and <br />Whereas, the City and TxDOT undertake substantially similar roadway construction projects <br />and construct their respective projects using substantially the same pool of contractors; and <br />Whereas, the City desires to implement a federally compliant DBE Program by adopting the <br />TxDOT approved program, as recommended by FHWA; and <br />Whereas, TxDOT and the City find it appropriate to enter into this Memorandum of <br />Understanding to memorialize the obligations, expectations and rights each has as related to the City's <br />adoption of the TxDOT DBE Program to meet the federal requirements; <br />Now, therefore, TxDOT and the City, in consideration of the mutual promises, covenants and <br />conditions made herein, agree to and acknowledge the following: <br />(1) TxDOT has developed a DBE Program and annually establishes a DBE goal for Texas that <br />is federally approved and compliant with 49 CFR 26 and other applicable laws and regulations. <br />(2) The City is asub-recipient of federal assistance for roadway construction projects and, in <br />accordance with 49 CFR § 26.21. must implement a federally approved DBE Program. The City <br />receives its federal assistance through TxDOT. As asub-recipient, the City has the option of developing <br />its own program or adopting and operating under TxDOT's federally approved DBE Program. The FHWA <br />recommends that sub-recipients, such as the City, adopt the DBE program, administered through TxDOT, <br />and the City hereby chooses to adopt the TxDOT DBE Program. <br />(3) This Memorandum of Understanding evidences FHWA's and TxDOT's consent to the adoption of <br />the TxDOT DBE Program by the City to achieve its DBE participation in City federally assisted roadway <br />construction projects. <br />(4) The parties will work together in good faith to assure effective and efficient implementation <br />of the DBE Program for the City and for TxDOT. <br />