HomeMy WebLinkAbout09 FY 05/06 DBE 08-01-05
AGENDA REPORT
Agenda Item 9
Reviewed: Jdt
City Manager
Finance Director ~
MEETING DATE:
AUGUST 1, 2005
FROM:
WilLIAM A. HUSTON, CITY MANAGER
PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
TO:
SUBJECT:
APPROVAL OF DISADVANTAGED BUSINESS ENTERPRISE (DBE)
PROGRAM AND OVERAll ANNUAL DBE GOAL OF TEN PERCENT (10%)
FOR FEDERAL FISCAL YEAR 2005/2006
SUMMARY
The City's annual Disadvantaged Business Enterprise (DBE) Program has been prepared and
identifies an Overall Annual DBE Goal of ten percent (10%) for Federal Fiscal Year
2005/2006. 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. 05-88 approving the
Disadvantaged Business Enterprise (DBE) Program and Overall Annual DBE Goal of ten
percent (10%) for Federal Fiscal Year 2005/2006.
FISCAL IMPACT
City Council adoption of Resolution No. 05-88 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 2005/2006 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 2005/2006 is ten percent (10%). 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 2, 2005 and that agency has
determined that it complies with Federal DBE Program requirements. The required 45-day
public review and comment period began on May 5, 2005 and was concluded without receipt
of any comments.
Approval of Disadvantaged Business Enterprise (DBE) Program and Overall Annual DBE Goal
of Ten Percent (10%) for Federal Fiscal Year 2005/2006
August 1,2005
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 15, 2005.
Çl:~~
Director of Public Works/City Engineer
C;7~ ~~ )
Dana R. Kasdan
Engineering Services Manager
Attachment: Resolution No. 05-88
Caltrans Confirmation Letter
Annual DBE Goal Program
S:\City Councilltems12005 CouncilltemslApproval of DBE FY 2005-2006 & Reso 05-88.doc
RESOLUTION NO. 05-88
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, APPROVING THE DISADVANTAGED BUSINESS
ENTERPRISE (DBE) PROGRAM AND OVERALL ANNUAL GOAL OF TEN
PERCENT (10%) FOR FEDERAL FISCAL YEAR 2005/2006, FOR
ADOPTION AND SUBMISSION TO THE CALIFORNIA DEPARTMENT OF
TRANSPORTATION (CAL TRANS)
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 ten percent (10%) for Federal Fiscal
Year 2005/2006; 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 2005/2006 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
(DB E) Program and Overall Annual Goal for Federal Fiscal Year 2005/2006, 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 1st day of August 2005.
Lou Bone, Mayor
ATTEST:
City Clerk
STA'!1'. OF CAI.lFORNIA-BUSINESS TRANSI'ORtATION ANn HOUsING AGENCY
DEPARTMENT OF TRANSPORTATION
DISTRICT 12
3337 MICHELSON DRIVE SUITE 380
IRVINE. CA 92612-8894
PHON]¡: (949) 756-7805
FAX (949) 724-2592
Mr. Tim Serlet
DBE Liaison Officer
City of Tustin
300 Centennial Way
Tustin, CA 92780
May 5, 2005
Subject;
Disadvantaged Business Enterprise (DBE) Program Submittal
Fiseal Year 200511J6
Dear Mr. Serlet:
Arnold Soh,"""""...... O""""'M
.
Flex your po.....'
.... """"!l'J '~n"
In accordance with the 49 Code of Federal Regulations part 26, this letter serves as confinnation that
CALTRANS Local Assistance received and reviewed your proposed overall annual DBE goal. The City's
overallllllI1ua1 DBE goal and goal setting meets the DBE requirements.
The next step towards approval Is to begin the Public Patticfpation process. As a reminder, you are required to
advertise your overall annual DBE goal for a minimum of one day in a general-media circulation paper and one
day in a minority or £ocu¡¡ed media circulation paper. Your program mutt be available for review for 30 d3y&
and an additional IS days is required for public comments. Any public comments received in our office will
be forwarded to the n R F: J,iaison Officer.
The final DBE program must be adopted by City Counca prior to Caltrans approval.
[fyou require any further assistance, please contact Homa Noun at:
Phone: 949-724-2410
Fax; 949-724-2592
Email: homa_nouri@dot.ca.gov
Sincerely
~fM<v.
Alan WilliLun, Chief
Local Assistance Branch
District 12
'Çaltra.. impro... mobility across Ç,lIfomi<;¡>
Public Works / Engineering
-"~_.-
City of Tustin
TO:
CAL TRANS DISTRICT 12
District Local Assistance Engineer - Alan Williams
300 Centennial Way
Tustin, CA 92780-3715
(714) 573-3150
FAX (714) 734-8991
ANNUAL OVERALL GOAL INFORMATION (Exhibit 98)
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 10% for the Federal
Fiscal Year 2005-2006, beginning on October 1. 2005 and ending on September 30, 2006.
MethodoloQY
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 Proqram Updates:
No programmatic changes to the City's DBE Program with the specified fiscal year.
-a~ ¡( Á.~~) íÞe- -r;:", D. Jèri/--
DBE Liaison Officer
~¡t
a(e
S:IMiscelianeous EngineeringID.B.E\DBE 2005-2006\Caltrans Exibit 9B.doc
CITY OF TUSTIN
Proposed Overall Annual DBE
Goal Setting Methodology
Federal Fiscal Year 2005-2006
Submiued in fulfillment of:
Section 1101 of the Transportation Equity Actfor the 21st Century
49 Code of Federal Regulations Part 26
and
Caltrans Local Assistance Procedures Manual
. 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) 2005/06
(For the period of October 1, 2005 through September 30, 2006)
I.
DOT-ASSISTED CONTRACTING PROGRAM FOR FFY 2005/06
Table 1 serves to identify the City of Tustin's DOT-assisted contracting program for FFY
2005/06 considered in developing its Overall Annual DBE Goal. Three projects are listed in
Table 1, however, only two of the three, the Pavement Rehabilitation from Walnut Ave to 1-5
Fwy and the Pavement Rehabilitation from 1-5 to Bryan Ave. projects were considered in the
federally prescribed DBE goal-setting analysis, based on DOT-assisted funding and contract
award dates anticipated within the respective federal fiscal year 2005/06. Although the Pasadena
Ave. & Altadena Drive Lighted Crosswalk project (shaded) was considered in the former year's
goal analysis due to a change in funding from federal (DOT-assisted) to local and State funding,
the project was not included in this analysis. Both of these projects have viable contracting and
subcontracting possibilities, a required criterion for goal setting consideration.
Table 1
Table 2 provides a summary of work grouped into one primary category: Construction Services,
utilizing the CUCP 2002 North American rndustry Classification System (NArCS) work
categories and comparable 2002 Census Business Patterns NArCS. Table 2 also serves to
identify the estimated Federal Dollar Share and the Percent of Federal Funding as follows:
City of Tustin
DBE Goal Melhodology FFY 2005/06
Page 2 of7
COMPARABLF. ESTIMATEB 'y., OF
CONTRACT TYPE CliO' 21U12 NAICS WORK 211112 NAICS FI-:m.:l{AL FEBERAL
C-\TE<;ORyl CTNSlS BOLLAR FUNIJIN(;
DATAl SHARE
Coo Dstructioo no 2373101 234' 1101 $',5101,010101.0101 1010IO'!!o,
Table 2
Professional Services
TOTAL
N/A
N/A
$0.00
$510,000.00
N/A
100%
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 2005/06 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 California Unified
Certification Program (CUCP) DBE Database of Certified Firms and the 2002 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 Orange County) 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 1 and II. The City's
local market area represents where the substantial majority of the City's dollars are expended
and/or where the substantial majority of contractors and subcontractor bids or quotes are
received.
<:::> For the numerator: California UCP DBE Database of Certified Firms
<:::> For the denominator: 2002 U.S. Census Bureau's Business Pattern Database (CBP)
To determine the relative availability of DBEs, the City of Tustin divided the numerator
representing the ratio of ready, willing and able DBE firms by the denominator representing all
firms (DBEs and Non-DBEs) available, within the City's defined market area for each of the
work categories. Application ofthis 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
1 Refer to Attachments I and II for corresponding detail of all work trades grouped under the primary NAtCS Codes.
226.45 represents Title 49 CFR Part 26 regulatory reference.
City ofTustin
DBE Goal Methodology FFY 2005/06
Page3 of7
Step I: Base Figure (weighted by type of work to be performed and corresponding
contracting dollars)
Base Figure = [100 % (DBEs in NAICS 237310 *)
(CBPs in NArCS 234110 **)
Base Figure = [ 100 am J
1,999
J
J
Base Figure = [
Base Figure = [
100 (.0910)
.0910 J
Base Figure = (.0910) 100=9.10=9% ...
For additional NAICSCodesfrom the California Unified DBE Directory, refer to Attachment 1.
For additional NAICS 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 potentially 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 26.45, Step II DBE Goal Adjustment guidelines.
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, Other
Cities'DBE Goals and attainments and Other Relevant Evidence 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 demonstrated capacity of DBEs (measured by actual historical
DBE participation commitments and/or attainments) on DOT-assisted contracts awarded by the
City of Tustin within the last three fiscal years:
City of Tustin
DBE Goal Methodology FFY 2005/06
Page 4 of?
Table 3
13% 13% 4%
11% 11.82% 10.5%
11% 11.82% 10.5%
11% 11.82% 10.5%
11% 11.82% 10.5%
12% 12% 18%
9% 18% 18%
The City of Tustin considered past attainments as tangible evidence of DBE availability beyond
availability identified in the Step 1 calculation, which strictly utilized the 2002 U.S. Census
information and CUCP DBE database. Eight projects are listed in table 3, however, only seven (7)
of the eight were considered in this analysis due to the Jamboree Road Median Barrier Project
scope being dissimilar to the Federally-Assisted projects the City anticipates releasing in FFY
2005/06. To determine the Average Past DBE Participation Percentage the City included the
seven (7) relevant closed-out projects with actual DBE goal attainment data (11.7%). The
Average Past DBE Participation Percentage was added to the Step I Base Figure (9%) and divided
by two (2) to calculate the average. The application of this formula is provided below:
Step I Ease Figure + Past Average DEE Participation Commitment = ADJUSTED BASE FIGURE
2
9% + 11.7%
= 20.7%
2
= 10.35 %
= 100/. rounded to tbe nearest wbole number
The formula resulted in an upward adjustment to the Base Figure from 9% to 10%.
City of Tustin
DBE Goal Methodology FFY 2005106
Page 5 of7
B. City of Tustin's Bidders List
The City of Tustin's Bidders List was considered in adjusting the base figure and while a Bidders
List would serve as quantifiable evidence of DBEs demonstrated interest and capacity; the City
of Tustin has not collected sufficient data to date to merit consideration for an adjustment.
However, the City of Tustin will continue to capture such infonnation from all bidders at the
time of bid/proposal submission and will utilize such infonnation 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 Tustin 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 Garden Grove, La Habra, and
Laguna Niguel. Using the most current data available, DBE Goals established for these cities
ranged from 10% to 12% for FFY 2004. Since the goal projections and attainments are in line
with the City of Tustin's DBE goal of 10%, no further adjustment will be made at this time.
E. Other Relevant Evidence
The City of Tustin is not aware of any additional relevant data; including anecdotal evidence
over and above those factors considered that would sufficiently merit an adjustment to the Base
Figure at this time. However, the City will continue to explore and consider all available
evidence that could have a potential impact on the DBE goal setting process (i.e. relative
availability ofDBEs within the City's market area in future goal setting analysis).
Overall Resultant Goal Adjustment
Based on the City of Tustin's review and consideration of the above factors, particularly the
City's historical DBE participation/attainments, the evidence considered supported an upward
adjustment of the 9% Base Figure to 10% as detennined by the calculation above (Refer to A.).
III.
OVERALL ANNUAL DBE GOAL AND PROJECTION OF RACE-NEUTRAL
AND RACE-CONCIOUS PARTICIPATION:
The Overall Annual (FFY 2005/06) DBE Goal for the City of Tustin's DOT-assisted
contract is 10%. The Overall Goal is expressed as a percentage of all DOT -assisted funds that
the City will expend in DOT-assisted contracts in the forthcoming fiscal year.
City of Tustin
DBE Goal Methodology FFY 2005/06
Page60f7
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.
To determine the race-neutral and race-conscious projections, the City of Tustin considered
historical race neutral attainments for the City during the past three years. The table below
represents such attainments in relationship to the established contract goals:
13% 4% 0% 0%
11% 10.5% 0% 0%
11% 10.5% 0% 0%
11% 10.5% 0% 0%
11% 10.5% 0% 0%
12% 18% 6% 33%
9% 18% 9% 50%
Tutal 7WY" S2'Yo, 15% S3%
The City considered in this race-neutral and race-conscious assessment seven (7) of the eight
closed-out DOT-assisted projects. The Jamboree Road Median Barrier Project (shaded) has
been excluded from the goal-setting analysis due to this project having a dissimilar scope of
3 Negative percentages changed to 0% for Race-Neutral Purposes (not possible to have negative Race-Neutral Attainmenls).
City of Tustin
DBE Goal Methodology FFY 2005/06
Page 7 of?
work to the Federally-Assisted projects the City anticipates releasing in FFY 2005-2006. The
application of the formula is provided below:
Total Goal % Achieved tbroul!b Race Neutral Means
Total Projects
= Average % of Goal Acbieved througb
Race-Neutral Means
8~% = 1\ (Average % of Goal Acbieved througb race-neutral means)
10% (Adjusted Base Figure) X .119 = 1.19 % = 1 % (Rounded to the nearest whole number)
Therefore, the City of Tustin projects to meet 9% ofthe 10% proposed Overall Annual DBE
Goal for FFY 2005-2006 utilizing Race-Conscious measures, including utilizing contract
specific numeric goals, as necessary to achieve the overall goal. The remaining 1 % will be
achieved utilizing Race-Neutral methods in accordance with Title 49 CFR Part 26.51,
including: Arranging timely solicitations, times for the presentation of bids, quantities,
specifications, and delivery schedules in ways that facilitate DBE, and other small business
participation and by requiring or encouraging prime contractors to subcontract portions of work
that they might otherwise perform with their own forces. The application of race-conscious
goals on the City's DOT-assisted contracts will continue to be used only to the extent necessary
to achieve the City's approved Overall Annual DBE goal. Should the initial contract's actual
DBE commitments exceed projections, adjustments will be made accordingly.
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 and provide input into this goal analysis. The City will prepare and send
an Outreach Consultation Letter advising the aforementioned business community of the
proposed DBE goal analysis and its availability for review.
The City of Tustin will also publish a Public Notice in general circulation media and in at least
one other minority focused media announcing the City of Tustin's proposed Overall Annual
Goal for the FFY 2005-2006 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 Overall Annual DBE Goal to Caltrans for final review and
approval.
ATTACHMENT I
CITY OF TUSTIN
DBE OVERALL ANNUAL GOAL ANALYSIS FOR FFY 2005/06
ESTABLISHMENT OF THE NUMERATOR:
# OF ESTABLISHED DBE FIRMS BY PRIMARY WORK CATREGORY (CONSTRUCTION)
AND CORRESPONDING NAtCS WITHIN THE CITY OF TUSTIN'S MARKET AREA
(DEFINED AS THE COUNTY OF ORANGE)1
CO, NSTR" UCTIO' N: B: Y CO. R" R" ESp. O. NDtlNG ZIp. CO. Dt E
i COUNTY .
.. BUSINESS . I
, PATTERNS . !
! USING 2002 . . ¡
¡NAICS 2002 NAICS NAICS DESCRIPTION 906 907 926 927 928 TOTAL I
237310 235210, Highway, Street, and Bridge 5 5 9 3 10 32
234110 Construction
212321 212321 Construction Sand and Gravel 0 0 0 0 0 0
Minin
237130 234920 Power and Communication Line and 0 0 0 2
Related Structures Construction
237990 234990 Other Heavy and Civil Engineering 2 0 0 4
Construction
238110 235710 Poured Concrete Foundation and 3 2 5 2 6 18
Structure Contractors
238120 235910 Structural Steei and Precast 4 3 2 7 17
Concrete Contractors
238140 235410 Mason Contractors 2 0 3 0 2 7
238210 235310 Electrical Contractors 1 2 4 2 5 14
238330 235520 Floorin Contractors 0 1 1 0 0 2
238910 235940, Site Preparation Contractors 3 2 2 3 6 16
234990
238990 235710 13 6 19 6 24 68
324122 324122 0 0 0 0 0 0
327332 327332 0 0 2 0 0 2
334519 334519 0 0 0 0 0 0
0 0 0 0 0 0
34 ŒJ[ID 18 182
': DATA SOURCE: California UCP DBE Database of Certified Firms.
ATTACHMENT II
CITY OF TUSTIN
DBE OVERALL ANNUAL GOAL ANALYSIS FOR FFY 2005/06
ESTABLISHMENT OF THE DENOMINATOR:
# OF ALL ESTABLISHED FIRMS (DBEs and Non-DBEs) BY WORK CATEGORY
WITHIN THE CITY OF TUSTIN'S MARKET AREA (DEFINED AS THE COUNTY
OF ORANGE)'
CONSTRUCTION:
Major
Category:
NAICS
CODE
234110
212321
234920
234990
235210
235310
235410
235520
235710
235910
235940
324122
327332
334519
335932
. '
234110: HIGHWAY, STREET & BRIDGE
CONSTRUCTION
39 39
109 109
451 451
662 662
137 137
150 150
292 292
36 36
29 29
1 1
0 0
15 15
3 3
1999 1999
': DATA SOURCE: 2002 U.S. Census Bureau: County Business Pattems, NAICS Work Category Codes,