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Home My WebLink About07 DBE GOAL OF 8% 08-04-03AGENDA REPORT Agenda Item Reviewed: City Manager Finance Director MEETING DATE: AUGUST 4, 2003 TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION APPROVAL OF DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM AND OVERALL ANNUAL DBE GOAL OF 8% FOR FEDERAL FISCAL YEAR 2003~2004 SUMMARY The City's annual Disadvantaged Business Enterprise (DBE) Program has been prepared and identifies an Overall Annual DBE Goal of 8% for Federal Fiscal Year 2003~2004. The required public participation process has been completed and the final DBE Program is ready for City Council approval. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 03-99 approving the Disadvantaged Business Enterprise (DBE) Program and Overall Annual DBE Goal of 8% for Federal Fiscal Year 2003/2004. FISCAL IMPACT City Council adoption of Resolution No. 03-99 will ensure the City's continued receipt of federal funding for various Capital Improvement Projects that are partially funded through the United States Department of Transportation. BACKGROUND The attached Disadvantaged Business Enterprise (DBE) Program and Overall Annual DBE Goal for Federal Fiscal Year 200312004 addresses critical components and elements of the Federal Department of Transportation regulations. The City of Tustin's Overall Annual DBE Goal for Federal Fiscal Year 2003~2004 is 8%. Upon approval, it will be annually calculated to maintain relevancy to local market conditions and factors impacting DBE availability. The Draft DBE Program was submitted to Caltrans on May 22, 2003 and that agency has determined that it complies with Federal DBE Program requirements. The required 45-day public review and comment period also began May 22, 2003 and was concluded without receipt of any comments. Approval of Disadvantaged Business Enterprise (DBE) Program and Overall Annual DBE Goal of 8% for Federal Fiscal Year 2003~2004 August 4, 2003 Page 2 Since no comments were received during the public participation process, the final Disadvantaged Business Enterprise (DBE) Program is ready for City Council approval. In order to ensure the City's continued receipt of federal funding for various Capital Improvement Projects, the finalized DBE Program must be approved by the City Council and submitted to Caltrans prior to September 1,2003. Tim D. Serlet ~ Director of Public Works/City Engineer Engineering Services Manager TDS:DA:Approval of DBE FY 2004 Attachment: Resolution No. 03-99 Annual DBE Goal Program RESOLUTION NO. 03-99 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM AND OVERALL ANNUAL GOAL OF 8% FOR FEDERAL FISCAL YEAR 2003~2004, FOR ADOPTION AND SUBMISSION TO THE CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) WHEREAS, the City of Tustin is required to develop and submit a Disadvantaged Business Enterprise (DBE) Program and Overall Annual Goal for DBE participation for United States Department of Transportation (DOT) assisted contracts, as a condition of federal financial assistance, pursuant to Title 49 Code of Federal Regulations (CFR) Part 26; Participation by Disadvantaged Business Enterprises (DBE) in DOT Programs; and WHEREAS, in accordance with DBE regulations, the City of Tustin has developed a DBE Program and Overall Annual DBE Goal of 8% for Federal Fiscal Year 2003~2004; and WHEREAS, City Council adoption is required to ensure compliance with Department of Transportation federal funding requirements, provisions and financial responsibilities. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin that the DBE Program and Overall Annual Goal for Federal Fiscal Year 2003/2004 are hereby approved. AND BE IT FURTHER RESOLVED that the City Engineer acting as the City's DBE Liaison Officer is hereby authorized to execute the Disadvantaged Business Enterprise (DBE) Program and Overall Annual Goal for Federal Fiscal Year 2003/2004, and submission to the California Department of Transportation (Caltrans) on behalf of the City for funding authority approval. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 4th day of August 2003. Tracy Wills Worley, Mayor ATTEST: City Clerk Public Works / Engineering City of Tustin 300 Centennial Way ANNUAL OVERALL GOAL INFORMATIONTustin' CA 92780-3715 (Exhibit 9B) (7~4) 573-3150 FAX (714) 734-8991 TO:CALTRANS DISTRICT 12 District Local Assistance Engineer- Alan Williams The amount of overall goal, methodology, breakout of estimated race-neutral and race- conscious participation, and any DBE program updates are presented herein in accordance with Title 49 of the Code of Federal Regulations Part 26, and as described in the Local Assistance Procedures Manual. The City of Tustin submits our annual overall goal information and any needed updates of our DBE program for your review and comment. We propose an Annual Overall DBE Goal of 8% for the Federal Fiscal Year 2003/2004, beginning on October 1, 2003 and ending on September 30, 2004. Methodoloqv Refer to the attached Overall Annual DBE Goal Setting Methodology enclosure. Breakout of Estimated Race-Neutral and Race-Conscious Participation Refer to the attached Overall Annual DBE Goal Setting Methodology enclosure. DBE Program Updates: No programmatic changes to the City's DBE Program with the specified fiscal year. DBE Liaison Officer Date S:\Miscellaneous Engineering\D.B.E\DBE 2003-2004\Exhibit 9B Annual Overall Goal Info.doc Submitted in fulfillment of: Section 1101 of the Transportation Equity Act for the 21st Century 49 Code of Federal Regulations Part 26 and Caltrans Local Assistance Procedures Man ual * This analysis is prepared exclusively for the City of Tustin, it is non-transferable and is not to be duplicated * CITY OF TUSTIN DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM OVERALL ANNUAL DBE GOAL SETTING METHODOLOGY FOR FEDERAL FISCAL YEAR (FFY) 2003/04 (For the period of October 1, 2003 through September 30, 2004) I. DOT-ASSISTED CONTRACTING PROGRAM FOR FFY 2003/04 Table 1 represents the City of Tustin's DOT-assisted project considered in preparing its Overall Annual DBE Goal-Setting Analysis for FFY 2003/04. The project has viable subcontracting possibilities and is anticipated to be awarded within fiscal year 2003/04: Table 1 Red Hill Avenue Grade Separation at OCTA/SCRRA Railway/Edinger i $622,080.00 $0.00 $332,080.00 $0.00 Avenue (CIP No. 7175) Table 2 provides a summary of the corresponding subspecialty work grouped into a primary category: Professional Services, utilizing Caltrans Work Category Codes (WCC) and comparable 2000 Census Business Patterns North American Industry Classification System (NAICS) Work Codes. Table 2 also serves to identify the estimated Federal Dollar Share and the Percent of Federal Funding as follows: Table 2 Construction $0.00 N/A Professional Services Materials & Su $332,080.00 100% $0.00 N/A TOTAL $332,080.00 100% City of Tustin ~ DBE Goal Methodology FFY 2003/v~4 Page 2 of 5 II. GOAL-METHODOLOGY Step 1: Determination of a Base Figure (26.45)~ To establish the City of Tustin's Base Figure of the relative availability of DBEs to all comparable firms (DBEs and Non-DBEs) available to bid or propose on the City of Tustin's FFY 2003/04 DOT-assisted contracting opportunities projected to be solicited, the City of Tustin followed one of the five prescribed federal goal-setting methodologies in Caltrans Local Assistance Procedures Manual. This was accomplished by accessing the Caltrans Calcert and Southern California Cluster Group on-line Databases of Certified DBE Firms and the 2000 U.S. Census Bureau County Business Patterns (CBP) Database. Comparisons were made by corresponding zip codes within the City of Tustin's market area (defined as the County of Orange) and by the specified industries and types of businesses identified in Table 2. The City of Tustin made a concerted effort to ensure that the scope of businesses included in the numerator was as close as possible to the scope included in the denominator. For corresponding detail of all work category classifications grouped, refer to Attachments I and II. The area(s) in which the substantial majority of contractors and subcontractors that the City receives bids or quotes and/or does business, and the area(s) in which the substantial majority of contracting dollars are spent determined the local market area. For the numerator: Caltrans' DBE Directory of Certified Firms For the denominator: Census Bureau's Business Pattern Database (CBP) To determine the relative availability of DBEs within the City of Tustin's market area, the City divided the numerator2 representing the ratio of ready, willing and able DBE firms, by the denominator3 representing all firms (DBEs and Non-DBEs) available by each work category. Application of this formula yielded the following baseline information: Number of Ready, Willing, and Able DBEs Number of All Available Firms (Including DBEs and Non-DBEs) = BASE FIGURE 26.45 represents Title 49 CFR Part 26 regulatory reference. The numerator represents all available DBE businesses established within City of Tustin's market area. The denominator represents all comparable available established firms. City of Tustin DBE Goal Methodology FFY 2003/04 Page 3 of 5 Step I: Base Figure (weighted by type of work to be performed and corresponding contracting dollars) Base Figure = I 100% (DBEs in WCC 8720') CBPs in NAICS 54133** Base Figure = Il00 15091 Base Figure = f'0835 Base Figure = (.0835) 100 = 8.35 = 8% * For additional Caltrans Work Category Codes & EquivalentNAICS Work Category Codes, refer toAttachmentl. ** For additional NAICS work codes, refer to Attachment II. *** Rounded to the nearest whole number. Step 2: Adjusting the Base Figure Upon establishing the Base Figure, the City of Tustin reviewed and assessed other known evidence potemially impacting the relative availability of DBEs within the City of Tustin's market area, in accordance with prescribed narrow tailoring provisions set forth under 49 CFR Part 26 DBE Goal Adjustmem provisions. Evidence considered in making an adjustment to the Base Figure included the City of Tustin's Past DBE Goal Attainments on Similar Type Projects, Bidders List, Disparity Studies, and other Cities' DBE Goals and Attainments within the City of Tustin's jurisdiction. A summary of these considerations follows: A. Past DBE Goal Attainments on Similar Type Projects The following table reflects the City of Tustin's DBE goal attainments and/or commitments on projects awarded within the last two fiscal years: I/ 18% 20% 18% City of Tustin r DBE Goal Methodology FFY 2003/v,~ Page 4 of 5 While this is an important consideration in the overall goal-setting analysis, the contracts awarded by the City of Tustin during the last two fiscal years were for highway & street construction projects, which represent an unrelated, contracting area to the City's upcoming fiscal year's Federally aided contracting program (professional engineering services). Due to the lack of evidence of DBE attainment in the related industries, an adjustment to the Base Figure is not recommended at this time. B. City of Tustin's Bidders List Although the City of Tustin continues to develop and maintain a Bidders List on Federal-Aided projects awarded, the scope of work (professional engineering services) anticipated to be awarded under the current fiscal year was not fully represented in the list, therefore, an adjustment to the Base Figure is not recommended at this time. The City of Tustin will continue to capture such information from all bidders at the time of bid/proposal submission and will utilize such information in future goal-setting analysis. C. Evidence from Disparity Studies The City of Tustin is not aware of any current disparity studies within the City of Tustin's jurisdiction and/or market area to consider in this step of the goal setting analysis. D. Other Agencies DBE Goals The City of Tusfin surveyed other DOT-recipients (local agencies) within its jurisdiction, with similar contracting programs to assess their DBE goals and attainments toward making an adjustment. Agencies included in the survey were the Cities of Placentia, Lake Forest, and Yorba Linda. Using the most current data available, DBE Goals established for these cities ranged from 8% to 10% for last FFY. Since the goal projections and attainments are in line with the City of Tustin's DBE goal of 8%, no further adjustment will be made at this time. Overall Resultant Goal Adjustment Based on the City of Tustin's review and consideration of the above factors and current DBE availability data, evidence considered does not support an adjustment to the Base Figure at this time. III. OVERALL ANNUAL DBE GOAL AND PROJECTION OF RACE-NEUTRAL AND RACE-CONCIOUS PARTICIPATION: The Overall Annual (FFY 2003/04) DBE Goal for the City of Tustin's DOT-assisted contract is 8%. The Overall Goal is expressed as a percentage of all DOT-assisted funds that the City will expend in the FHWA-assisted contract in the forthcoming fiscal year. City of Tustin DBE Goal Methodology FFY Page 5 of 5 This goal further serves to identify the relative availability of DBEs based on evidence of ready, willing, and able DBEs to all comparable firms, which are known to be available to compete for and perform on the City's DOT-assisted contracts. The Overall Annual Goal reflects a determination of the level of DBE participation, which would be expected absent the effects of discrimination. Although the City has maintained DBE attainments for DOT-assisted contracts awarded in the past two years, the attainments were for the construction services contracts. The City currently does not have DBE historical attainments in the professional engineering services contracts, for which this fiscal year, the City anticipates to award. In light of these considerations, the City of Tustin projects that the proposed Overall Annual DBE Goal of 8% for FFY 2003/04 will be achieved through the use of numeric goals (race-conscious participation). The City will, however, continue to make efforts to employ race-neutral measures whenever possible to ensure that bidding and contract requirements facilitate participation by DBEs and other small businesses in conformance with 26.51 of the regulatory requirements. IV. PUBLIC PARTICIPATION AND FACILITATION In accordance with Public Participation Regulatory Requirements of 49 CFR Part 26 and Caltrans Local Assistance Procedures Manual (LAPM), minority, women, local business chambers, and community organizations within the City of Tustin's market area will be provided an opportunity to review this goal analysis. The City of Tustin will also issue a Public Notice in general circulation media and in at least one other minority-focused media publishing the City's Proposed Overall Annual Goal for FFY 2003/04 for DOT-assisted contracts. Such Notice will inform the public that the proposed goal and its rationale is available for inspection at the City of Tustin's Public Works Department during normal business hours for 30 days following the date of the Public Notice and that the City of Tustin will accept comments on the goal analysis for 45 days from the date of the Public Notice. The required public participation provisions will be fully satisfied prior to submitting the City of Tustin's Established Overall Annual DBE Goal to Caltrans for final review and approval. ATTACHMENT I CITY OF TUSTIN DBE OVERALL ANNUAL GOAL ANALYSIS FOR FFY 2003~2004 # OF ESTABLISHED DBE FIRMS BY WORK CATEGORY WITHIN THE CITY OF TUSTIN'S MARKET AREA DEFINED AS ORANGE COUNTY) ~ C8720 C8710 C8721 C8722 C8744 54133 54133 54169 54162 54169,54132 Civil Engineering Engineering Right of Way Engineer Environmental Engineer Landscape Architects 43 30 32 12 55 7 7 6 13 2 11 C8760 54136 Surveyor 5 3 8 TOTAL NUMBER OF ESTABMSHED DBE EIRMS: 66 60 I 126 ~: DATA SOURCE: Caltrans Calcert Database and Southern California Cluster Group Database of Certified DBE Firms for the County of Orange CITY OF TUSTIN ATTACHMENT II DBE OVERALL ANNUAL GOAL ANALYSIS FOR FFY 2003/2004 # OF ALL ESTABLISHED FIRMS (DBEs and Non-DBEs) BY WORK CATEGORY WITHIN THE CITY OF TUSTIN'S MARKET AREA (DEFINED AS ORANGE COUNTY) ~ PROFESSIONAL SERVICES: Major Category: 54131: ENGINEERING Orange County TOTAL NAICS CODE: NAICS DESCRIPTION 54133 Engineering Services 985 985 54162 Environmental Consulting Services 123 123 54169 Other Scientific & Technical Consulting Services 276 276 54132 Landscape Architectural Services 121 121 54136 Geophysical Surveying & Mapping Services 4 4 ITOTAL NUMBER OF EStaBlISHED EIRMS II 1509 II 1509 DATA SOURCE: U.S. Census Bureau: County Business Patterns utilizing, NAICS Work Category Codes