HomeMy WebLinkAbout09 APPROVAL DBE GOAL FY 2006-07 07-17-06AGENDA REPORT
MEETING DATE: JULY 17, 2006
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
SUBJECT: APPROVAL OF DISADVANTAGED BUSINESS ENTERPRISE (DBE)
PROGRAM AND OVERAll ANNUAL DBE GOAL OF NINE AND 75/100
PERCENT (9.75%) FOR FEDERAL FISCAL YEAR 2006-2007
SUMMARY
The City's annual Disadvantaged Business Enterprise (DBE) Program has been prepared and
identifies an Overall Annual DBE Goal of nine and 75/100 percent (9.75%) for Federal Fiscal
Year 2006-2007. 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. 06-86 approving the
Disadvantaged Business Enterprise (DBE) Program and Overall Annual DBE Goal of nine
and 75/100 percent (9.75%) for Federal Fiscal Year 2006-2007.
FISCAL IMPACT
City Council adoption of Resolution No. 06-86 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 2006-2007 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 2006-2007 is nine and 75/100 percent (9.75%). 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 31, 2006 and that agency has
determined that it complies with Federal DBE Program requirements.
Approval of Disadvantaged Business Enterprise (DBE) Program and Overall Annual DBE Goal
of Nine and 75/100 Percent (9.75%) for Federal Fiscal Year 2006-2007
July 17, 2006
Page 2
The final Disadvantaged Business Enterprise (DBE) Program is now ready for City Council
approval.
Tim D. Serlet
Director of Public Works/City Engineer
Dana R. Kasdan
Engineering Services Manager
Attachment: Resolution No. 06-86
Caltrans Confirmation Letter
Annual DBE Goal Program
S:\City Councilltems12006 Councilltems'Approvai of DBE FY 2006-2007 & Reso 06-56.doc
RESOLUTION NO. 06-86
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, APPROVING THE DISADVANTAGED BUSINESS
ENTERPRISE (DBE) PROGRAM AND OVERALL ANNUAL GOAL OF NINE
AND 75/100 PERCENT (9.75%) FOR FEDERAL FISCAL YEAR 2006-2007,
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 nine and 75/100 percent (9.75%) for
Federal Fiscal Year 2006-2007; 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 2006-2007 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 2006-2007, 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 17th day of July 2006.
Doug Davert, Mayor
ATTEST:
City Clerk
-----Original Message-----
From: Homa Nouri [mailto:homa_nouri@dotca.gov]
Sent: Friday, June 30, 20062: 18 PM
To: jwhitman@cityofalisoviejo.com; mpulone@cityofalisoviejo.com; gjohnson@anaheim.net; rmaguire@anaheim.net;
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Tim; Kasdan, Dana; wrepke@villapark.org; marwany@ci.westminster.ca.us; cjohansen@yorba-linda.org;
mstowell@yorba-Iinda.org; Nasser Abbaszadeh
Subject: Disadvantaged Business Enterprise (DBE) Program Submittal Fiscal Year 2006/07
Dear CEO, Public Works Director, City Engineer,
This letter serves as confirmation that CAL TRANS Local Assistance received
and reviewed The Disadvantaged
Business Enterprise (DBE) program for Federal fiscal Year 2006/2007.
Your program and proposed annual DBE goal meets the requirements and is
approved in accordance with the 49
Code of Federal Regulations part 26.
If you require any further assistance, please contact Homa Nouri at:
Phone; 949-724-2410
Fax: 949-724-2592
Email: homa_nouri@dotca.gov
Sincerely,
Alan Williams Ph.D., PE., SE
District 12 Local Assistance Engineer
949-756-7805
Exhibit 9B: Local Agency DBE Annual Submittal Form
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TO: CALTRANS DISTRICT 12
District Local Assistance Engineer - Mr. Alan Williams
,
:1
,,~-~ 1
The amount of the Annual Anticipated DBE Participation Level (AADPL) and methodology are
presented herein, in accordance with Title 49 of the Code of Federal Regulations, Part 26, and the
State of California, Department of Transportation Disadvantaged Business Enterprise (DBE) Program
Plan.
City of Tustin submits our AADPL information. We have established an AADPL of 9.75% for the
Federal Fiscal Year 2006-2007, beginning on October 1, 2006, and ending on September 30, 2007.
Methodoloav
Refer to the attached AADPL Methodology Enclosure.
Disadvantaaed Business Enterprise Liaison Officer IDBELOI for FFY 2006-2007
Mr. Tim D. Serlel
Director of Public Works / City Engineer
300 Centennial Way, Tustin, CA 92780
Phone: (714) 573-3150; Fax: (714) 734-8991; E-mail: tserlettliltustinca.ora
Prompt Pav:
Please refer to attachment for City's prompt payment provision.
Submitted by:
/
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(Signature)
(Date) .
Tim D. Serlet
Director of Public Works / City Engineer
Phone Number: (714) 573-3150
Reviewed by Caltrans:
(Signature of Caltrans District Local Assistance Engineer [DLAE]) (Date)
Distribution: Original - DLAE DBE Annual Submittal Form (05/01/06)
Copy - Local Agency after signing by DLAE
(Attachment)
PromDt Payment of Withheld Funds to Subcontractors
Federal regulation (49 CFR 26.29) requires one of the following three methods be used in
federal-aid contracts to ensure prompt and full payment of any retainage kept by the prime
contractor or subcontractor to a subcontractor.
Please check the box of the method chosen by the local agency to ensure prompt and full
payment of any retainage.
D
D
~
No retainage will be held by the agency from progress payments due to the prime
contractor. Prime contractors and subcontractors are prohibited from holding
retainage from subcontractors. Any delay or postponement of payment may take
place only for good cause and with the agency's prior written approval. Any violation
of these provisions shall subject the violating contractor or subcontractor to the
penalties, sanctions, and other remedies specified in Section 7108.5 of the California
Business and Professions Code. This requirement shall not be construed to limit or
impair any contractual, administrative, or judicial remedies, otherwise available to the
contractor or subcontractor in the event of a dispute involving late payment or
nonpayment by the contractor, deficient subcontractor performance, and/or
noncompliance by a subcontractor. This clause applies to both DBE and non-DBE
subcontractors.
No retainage will be held by the agency from progress payments due the prime
contractor. Any retainage kept by the prime contractor or by a subcontractor must be
paid in full to the earning subcontractor in 30-ays after the subcontractor's work is
satisfactorily completed. Any delay or postponement of payment may take place only
for good cause and with the agency's prior written approval. Any violation of these
provisions shall subject the violating contractor or subcontractor to the penalties,
sanctions, and remedies specified in Section 7108.5 of the California Business and
Professions Code. This requirement shall not be construed to limit or impair any
contractual, administrative, or judicial remedies, otherwise available to the contractor
or subcontractor in the event of a dispute involving late payment or nonpayment by
the contractor, deficient subcontractor performance, and/or noncompliance by a
subcontractor. This clause applies to both DBE and non-DBE subcontractors.
The agency shall hold retainage from the prime contractor and shall make prompt and
regular incremental acceptances of portions, as determined by the agency of the
contract work and pay retainage to the prime contractor based on these acceptances.
The prime contractor or subcontractor shall return all monies withheld in retention
from all subcontractors within 30-days after receiving payment for work satisfactorily
completed and accepted including incremental acceptances of portions of the contract
work by the agency. Any delay or postponement of payment may take place only for
good cause and with the agency's prior written approval. Any violation of these
provisions shall subject the violating prime contractor to the penalties. sanctions, and
other remedies specified in Section 7108.5 of the California Business Professions
Code. This requirement shall not be construed to limit or impair any contractual,
administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of: a dispute involving late payment or nonpayment by the
contractor; deficient subcontractor performance; and/or noncompliance by a
subcontractor. This clause applies to both DBE and non-DBE subcontractors.
CITY OF TUSTIN
Annual Anticipated DDE
Participation Level (AADPli)
Methodology
FFY 2006-2007
Submitted in fulfillment of:
Section 1101 of the Transportation Equity Actfor the 21st Century
49 Code of Federal Regulations Part 26
and
Ca/trans 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
ANNUAL ANTICIPATED DBE PARTICIPATION LEVEL (AADPL)
METHODOLOGY FOR
FEDERAL FISCAL YEAR 2006-2007
(Covering the period of October 1, 2006 through September 30, 2007)
I. INTRODUCTION
On May 1,2006, the City of Tustin implemented a wholly race-neutral Disadvantaged Business
Enterprise (DBE) program in accordance with directives issued by the California Department of
Transportation (CaltranslDepartment). The directive was issued as a result of a recent decision
from the Ninth Circuit Court of Appeals and guidelines promulgated by the Federal Highway
Administration (FHW A) in response to that decision. The decision mandated that evidence of
discrimination in the transportation contracting industry must be documented in order to
implement a DBE race-conscious program. After careful analysis, the Department and FHW A
concluded that the Department lacked sufficient evidence to satisfy the strict scrutiny and newly
established evidentiary standards established by the Ninth Circuit to request a waiver from US
DOT to continue its use of race-conscious measures to meet the State's Overall DBE Goal.
Hence,
).- Effective May 1, 2006, the Department and its subrecipients (Local Agencies) of DOT-
assisted funding may no longer advertise and award contracts with Federal-aid funds
containing Race-Conscious DBE goals.
).- Local Agencies are required to submit a "Disadvantaged Business Enterprise Race-
Neutral Agreement (Exhibit 9-A)" in accordance with Section 9.6 of Chapter 9 of the
Caltrans Local Assistance Procedures Manual (LAPM) by June 1,2006.
).- Local Agencies are required to submit an "Annual Anticipated DBE Participation
Level" (AADPL) by June 1, 2006 for its Federal Fiscal Year 2006-2007 Federal-aid
contracts, including following the Step I and Step II prescribed methodology.
).- Effective May 1, 2006, all Federal-Aid procurements shall contain Race-Neutral DBE
contract language (refer to "Sample Notice to Contractors and Special Provisions" and
"Sample Proposal and Contract" available for download from Caltrans' Division of Local
Assistance website at htto://www.dot.ca.govlhq/LocaIPrograms/sam boil/sam boil.htm
).- Effective May 1,2006, Local Agencies will be required to determine "DBE Availability
Advisory Percentages" for individual Federal-aid contracts, to assist potential
bidders/proposers in ascertaining a reasonable level of participation on any given
Federal-aid contract. Additionally, Local Agencies will be required to include the "DBE
Availability Advisories" and appropriate DBE Race-Neutral specifications in the PS&E
documents.
City of Tustin
AADPL Methodology FFY 2006-2007
Page 2 of7
jo- Local Agencies will be required to collect and report participation and utilization by
DBEs on Federal-aid contracts (no change).
jo- Local Agencies are required to actively participate in both Department's statewide
availability study and disparity study anticipated to commence late May 2006 and
completed by May 2007 to fulfill the requirements of the law as identified by the Ninth
Court of Appeals ruling.
In response to these policy directives, the City of Tustin hereby sets forth its AADPL
methodology for FFY 2006-2007.
II. DOT-ASSISTED CONTRACTING PROGRAM FOR FFY 2006-2007
Table 1 serves to identify the City of Tustin's DOT-assisted contracting program for FFY 2006-
2007 considered in preparing its Annual Anticipated DBE Participation Level (AADPL) in
accordance with Chapter 9, Section 9.7 of the Local Assistance Procedures Manual (LAPM).
The Jamboree Road/Irvine Blvd. AC Pavement Rehabilitation project was considered in the
federally prescribed AADPL analysis based on DOT-assisted funding and the anticipated award
date. This project has viable contracting and subcontracting possibilities, a required criterion for
AADPL consideration.
Table 1
Jamboree Road / Irvine Blvd.
AC Pavement Rehabilitation
$2,929,300.00
$1,464,650.00
$0.00
$0.00
TOT AL S2,929,300.00 SI,464,650.00 SO.OO SO.OO
Table :2 provides a summary of work grouped into one primary category: Construction Services,
utilizing the CVCP 2002 North American Industry Classification System (NAICS) work
categories and 2003 Census Business Patterns NAICS. Table:2 also serves to identify the
estimated Federal Dollar Share and the Percent of Federal Funding as follows:
City of Tustin
AADPL Methodology FFY 2006-2007
Page3 of7
Table 2
CONTRACT
TYPE
CUCP
DATABASE'
PRIMARY 2003
NAICS CENSlIS
DATA'
ESTIMATED
FEDEIUL
DOLLAR SHARE
(~) OF
FEDERAL
FUNDING
Construction
Services
TOTAL
237310
237310
$1,464,650.00
$1,464,650.00
100%
100%
III. AADPL - 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 2006-2007 DOT-assisted contracting opportunities projected to be solicited, the City of
Tustin followed one of the five prescribed federal methodologies to determine availability. This
was accomplished by accessing the California Unified Certification Program (CUCP) DBE
Database of Certified Firms and the 2003 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's local market area represents where the substantial
majority of the City's dollars are expended and/or where the substantial majority of contractors
bids or quotes are received.
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.
q For the numerator: California UCP DBE Database of Certified Firms
q For the denominator: 2003 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 within the City's defined market
area, by the denominator representing all firms (DBEs and Non-DBEs) available by each work
category within the defined market area. Application of this formula yielded the following
baseline information:
, Refer to Attachments I and II for corresponding detail of all work trades grouped under the primary NAICS Codes.
2 26.45 represents Title 49 CFR Part 26 regulatory reference.
City of Tustin
AADPL Methodology FFY 2006~2007
Page 4 of7
Number of Ready, Willing, and Able DBEs
Number of All Available Firms
(Including DBEs and Non-DBEs)
=
BASE FIGURE
The Base Figure was further adjusted by weighting the relative availability of DBEs grouped
within the major work trades, giving more weight to the work trades/industries in which the City
projects to spend more DOT-assisted dollars. The Base Figure resulting from this weighted
calculation is as follows:
Step I: Base Figure (weighted by type of work to be peiformed and corresponding
contracting dollars)
Construction Services
Base Figure = [100 % (DBEs in NAICS 237310*) ]
(CUCP in NAICS 237310**)
Base Figure = [ 1.0 illQJ. ]
1,578
Base Figure = [ 1.0 (.0862) ]
Base Figure = (.0862) 100 = 8.62 = 9% ...
*
For additIOnal NAfCS Codes from the California Unified DBE Directory, refer to Attachment I.
**
For additional NAfCS Codes, refer to Attachment If.
***
Rounded to the nearest whole number
Table 3 serves to identify the City of Tustin's "DBE Availability Advisory Percentage"
calculated by project below:
Table 3
PRO.JECT
'U:COMMENIlEIl IlBE AVAILABILITY AIlVISORY
')ERCENTAGE BY PRO.JECT
Jamboree Road / Irvine Blvd. AC
Pavement Rehabilitation
9%
The individual DBE Availability Advisory Percentage will be inserted in the respective
solicitation documents under Section 2-1.03 of the standard boilerplate specifications.
City of Tustin
AADPL Methodology FFY 2006-2007
Page 5 01'7
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 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 attainments) on DOT-assisted contracts awarded by the City of Tustin within
the last three fiscal years:
Table 4
DHF: DBF: GOAL DBF: GOAL
PRO,IECT CONTRACT COMMITMENT .\TTAINMF:NT
GOAL
I~~~~
Jamboree Road Rehabilitation
(from 1350' to 2750' North of 13% 13% 4%
Tustin Ranch Road)
Jamboree Road Rehabilitation (1- 11% 11.82% 10.5%
5 Freewav to Irvine Blvd)
Bryan Avenue Rehabilitation 11% 11.82% 10.5%
(Newport Ave. to Redhill Ave.)
Bryan A venue Rehabilitation
(Between Redhill A venue and 11% 11.82% 10.5%
Browning Ave.)
Main Street Rehabilitation 10.5%
(Between Stoneglass and SR-55 11% 11.82% Median
Freeway)
Irvine/Prospect Rehabilitation 12% 12% 18%
Project No. 7160 & 7161
Walnut Avenue Rehabilitation
(from Browning Avenue to 9% 18% 18%
Myford Road)
Tustin Ranch Road Pavement Project in Progress-
Rehabilitation Walnut Ave to 10% 13.61% Contract Not
Bryan Ave. Complete
City of Tustin
AADPL Methodology FFY 200n-2007
Page 6 of?
The City of Tustin considered past attainments as tangible evidence of DBE availability beyond
availability identified in the Step I calculation, which strictly utilized the 2003 U.S. Census
information and CUCP DBE database. Nine (9) projects are listed in table 4 above, however,
only seven (7) of the nine were considered in this analysis. The Jamboree Road Median Barrier
project (shaded) is dissimilar in scope to the Federally-Assisted project the City anticipates
releasing in FFY 2006-2007. The Tustin Ranch Road Pavement Rehabilitation Walnut Ave to
BI:van Ave project is currently in progress, therefore, no attainment data is available at this time.
Based on the historical attainments of the seven (7) closed out projects, the City's past
participation percentages range from 4% to 18%, with a Median Past Participation of 10.5%, as
reflected in the table above. The Step One Base Figure (9%) was added to the median (10.5%)
and divided by two (2) to calculate the average. The Adjusted Base Figure resulting from the
application of this formula follows:
Step I Base Figure (9%) + Median Past Participation (10.5%) = ADJUSTED BASE FIGURE
2
Formula
Step I Base Figure
Median Past Participation
9%
+ 10.5 %
19.5 % + 2 - 9.75%
Adjusted Base Figure = 9.750/0
The formula resulted in an upward adjustment to the Base Figure from 9% to 9.75%.
B. City of Tustin's Bidders List
The City of Tustin's Bidders List was considered in adjusting the base figure. The City has
collected Bidders list data for one (I) project; however, the single project alone is not sufficient
enough to make an adjustment to the adjusted Base Figure. 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 AADPL 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 adjusting the Step I Base Figure. However, the
City of Tustin will actively participate in the California Department of Transportation's
availability/disparity study and apply results of such in future DOT -assisted contracts when
completed.
City of Tustin
AADPL MtOthodology FFY 2006-2007
Page 7 of7
D. 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 AADPL process.
Overall Resultant AADP L Adjustment
Based on the City of Tustin's review and consideration of the above factors, an upward
adjustment from the 9% Base Figure of DBE availability was made to 9.75% as determined by
the calculation above (Refer to A).
As such. the City of Tustin has determined its AADPL to be 9.75% for FFY 2006-2007. The
AADPL is expressed as a percentage of all DOT-assisted funds that the City will expend in the
forthcoming fiscal year.
IV. RACE-NEUTRAL MEASURES
The City of Tustin will implement race-neutral measures to meet its overall AADPL objectives,
including but not limited to:
:;.. Arranging solicitations. times for the presentation of bids. quantities. specifications. and
delivery schedules in ways that facilitate DBE and other small business participation.
;.. Unbundling large contracts to make them more accessible to small businesses, requiring
or encouraging prime contractors to subcontract portions of work that they might,
otherwise perform with their own forces.
Jo- Providing information and communications programs on contracting procedures and
specific contract opportunities.
V. PUBLIC PARTICIPATION
Public Participation is not a required component in determining an AADPL; however, the City of
Tustin will exercise discretion in facilitating the public participation process.