HomeMy WebLinkAboutCC RES 01-44~',-
RESOLUTION NO. 01-44
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, APPROVING THE DRAFT DISADVANTAGED
BUSINESS ENTERPRISE (.DBE) PROGRAM AND PROPOSED
OVERALL ANNUAL COAL OF 9% FOR FEDERAL FISCAL YEAR __
2001/2002, 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 U.S. 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 new DBE regulations, the City of Tustin has
developed a narrowly tailored Draft DBE Program and Proposed Overall Annual
DBE Goal of 9% for Federal Fiscal Year 2001/2002; 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 Draft DBE Program and Proposed Overall Annual Goal for
Federal Fiscal Year 2001 /2002 are hereby approved.
AND BE IT FURTHER RESOLVED that the Director of Public Works is
hereby authorized to execute the Draft Disadvantaged Business Enterprise
(DBE) Program and Proposed Overall Annual Goal for Federal Fiscal Year
2001/2002 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 7t" day of May 2001.
~~` ~~
Tracy Wi s Orley, Mayor
ATTEST:
City Clerk
~' "~' OF' TUST/iN"
.,,~
CIT~Y
prOposed. O~,era. H Annual DB, E
Go, al. Ana.ly'sis
FFY 2~001./2:002.
Subnu'tted in fulfillment of:
Sectlon 1101 of the Transportation Equity Act for the 21,t Century
49 Code of Federal Regulations Part 26
and
Caltrans Local Assistance Procedures Manual
s
(Agency Letterhead)
ANNUAL OVERALL GOAL INFORMATION
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 9 % for the Federal Fiscal
Year 2001 / 2002 , beginning on October 1, 2001 and ending on September 30, 2002 .
Methodology
See Attached Overall Annual DBE Goal Setting Analysis
Breakout of Estimated Race-Neutral and Race-Conscious Participation
See Attached Overall Annual DBE Goal Setting Analysis
DBE Program Updates
No changes to Program
DBE Liaison Officer
Date
CITY OF TUSTIN
DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM
OVERALL ANNUAL DBE GOAL SETTING METHODOLOGY
FOR
FEDERAL FISCAL YEAR (FF~ 2001/02
.......... .' i~ E i i i i -. I i i i. i i i lq ~..-..
ge
DOT-ASSISTED CONTRACTING PROGRAM FOR FFY 2001/02
Table 1 represents two DOT-assisted projects the City of Tustin considered in preparing its
Overall Annual DBE 'GOal, Setting 'Analysis for FFY 2001/02. All projects have
subcontracting opportunities and are anticipated to be awarded and/or expended within the
fiscal year:
Table 1
IJamboree Rd. Rehabilitation- From 1000' No.':of
Tustin Ranch Rd. to 2400 No. of Tustin Ranch Road
:~wa~:- Avenue RehabilitatiOn_ From' B~:;wning
Avenue to Rd.
'$1,i55,000.00I. $400,000.00
$779,674.00 '$325,280.00
Table 2 provides a summary of the corresponding subspecialty work grouped into tWO
primary, categories; Highway and Street Construction and Concrete Work Utilizing Caltrans
Work Category Codes (WCC) and comparable 1998 Census Business Patterns North
American Industry Classification System (NAICS) Work Codes. The table also serves to
identify the estimated Federal Dollar Share and the Percent of Federal Funding for each
primary Work category, as follows:
Table 2
Highway & Street
Construction
Concrete Work
TOTAL
23411
23571
$580,224.0.0
$145,056.00
80%
20%
$725,280.00 100%
r
City of Tustin
DBE Goal Analysis for FFY 2001/02
Page 2 of 5
II. GOAL-METHODOLOGY
Step I: 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 2001102 DOT-assisted contracting opportunities projected to be let, 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' on-line
Bulletin Board System (BBS) DBE Directory of Certified Firms and the 1998 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.
~ For the numerator: Caltrans' DBE Directory of Certified Firms
~ For the denominator: Census Bureau's Business Pattern Database (CBP)
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 identified market area represents where the majority of contractors and subcontractors
the City does business with are established, and where the substantial majority of the City's
contracting dollars will be spent.
To determine the relative availability of DBEs for each work category, the City of Tustin
divided the numerator) representing the ratio of ready, willing and able DBE firms to bid, by
the denominator2 representing all firms (DBEs and Non-DBEs) available to bid for each of
the work categories. Application of this formula yielded the following baseline information:
Number of Ready, Willing, and Able DBEs
Number of All Available Firms = BASE FIGURE
(including DBEs and Non-DBEs)
The Base Figure was further adjusted by weighting the relative availability of DBEs grouped
within the major work categories, giving more weight to the work categories/industries, in
which the City projects to spend more DOT-assisted dollars. The Base Figure resulting from
this weighted calculation is as follows:
1 Numerator represents all DBE businesses established within City of Tustin's market area.
z Denominator represents all available established firms.
City of Tustin
DBE Goal Analysis for FFY 2001/02
Page 3 of 5
Step I Base Figure .Ratio (weighted by type of work to be performed and
corresponding contracting dollars)
Base Figure =(' 80%(DBEs in WCC 1601' + 20%(DBEs in WCC..51 !0~
CBPs in NAICS 23411'* CBPs in NAICS 23571'*
Base Figure { .80 (55)+ .20(18) 765 236
=
Base Figure =~'0575 + '0153 1
Base Figure = (.0728) 100 = 7.28 =
For additional Caltrans Work Category Codes, refer to Attachment I.
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 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 DBE Goal Adjustment provisions. Evidence considered in making an adjustment to
the Base 'Figure included the City of Tustin's Past DBE Goal Attainment/Commitment on
Similar Type Projects, Bidders List, Disparity Studies, and other Cities' DBE Goals and
attainments within the City of Tustin's jurisdiction. A s.umm~ of these considerations
follows:
A. Demonstrated Capacity of DBEs Measured by Actual'Attainment
The following table reflects the City of Tustin's DBE goal attainment/commitment on similar
projects awarded within the last two fiscal years utilizing numeric goals of 13% and 10%.
Red Hill Avenue Rehabilitation between Walnut 10%
.Avenue an.d. Edinger Avenue
Irvine Boulevard RehabilitatiOn between sR-55 and .... 12% ....
Prospect Avenue and Prospect Avenue
Rehabilitation between First Street and Irvine
Boulevard ..........................
_
City of Tustin ""
DBE Goal Analysis for FFY 2001/02
Page 4 of 5
The City of Tustin considered an adjustment to the Base Figure based on past DBE goal
attainment/commitment on two similar contracts to those contracting opportunities considered
in the Overall Annual DBE Goal Setting process for this Fiscal Year. The City of Tustin
adjusted the Base Figure by deriving the City's average past participation percentage numbers
for the last two years to obtain the Median Past Participation percentages (middle value of the
two). The Base Figure was than adjusted by adding the Median Past Participation
Percentage and the Step I Base Figure, and dividing the total number by two (2). The
Adjusted Base Figure resulting from the application of this formula is as follows:
Step I Base Figure + Median Past Participation =ADJUSTED BASE FIGURE
2
Past Participation= C10% + 12%~
Past Participation = C10% + 12% = 22°/~
Median Past Participation % = 22 = 11 %1
C2 J
Step One Base Figure Adjusted = C 7% + 11% = 18%~
Base Figure Adjusted = 18 = 9
2
Adjusted Base Figure = 9
B. City of Tustin's Bidders List
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 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 for consideration in the goal setting analysis and/or adjustment.
City of Tustin
DBE Goal Analysis for FFY 2001/02
Page 5 of 5
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. Cities included in the survey were City of Orange, City of Yorba Linda and City
of Placentia..Weighted DBE Goals established for these cities for FFY 2001 ranged from 8%
to 10%. Since the goal projections and attainments are in line with the City of Tustin's
adjusted DBE goal of 9%, no further adjustment will be made at this time.
III.
OVERALL AN~AL GOAL AND PROJECTION OF RACE-NEUTRAL AND
RACE-CONCIOUS PARTICIPATION:
The Overall Annual (FFY 2001/02) DBE Goal for the City of Tustin's DOT-assisted
contracts is 9%. The Overall Goal is expressed as a percentage of all DOT-assisted funds
that the City will expend in FHWA-assisted contracts in the forthcoming fiscal year..
This goal fin'ther serves to identify the relative availability of DBEs based on evidence of
ready, willing, and able DBEs to all comparable fmus, 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 previously, considered race-neutral methods to
meet the Overall Annual DBE Goal, only 2% of 3% projected was met during FFY 2001,
based on a DBE goal commitment. ..
In addition, the City of Tustin has not maintained any records of potential M/W/DBE
attainments on their State .and Locally funded contracts, due to the State of California
abolishing the race-based contracting preferences. In light of these considerations, the City
of Tustin projects that the proposed Overall Annual DBE Goal of 9°/$ for FFY 2002 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 new 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), this goal analysis will be reviewed by
minority, women, local business chambers, and community organizations within the City. of
Tustin's market area.
The City of Tustin will also publish a Public Notice in general circulation media announcing
the City of Tustin's proposed Overall Annual Goal for the FFY 2001/02 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.
~4 ATTACHMENT
CITY OF TUSTIN
DBE OVERALL ANNUAL GOAL ANALYSIS FOR FFY 2001/2002
# OF ESTABLISHED DBf FIRMS BY WORK CATREGORY WITHIN THE CITY OF
TUSTIN'S MARKET AREA (DEFI`NED AS THE COUNTY OF,ORANGE)'
CONSTRUCTION:
01601 23411, 23499 Clearing & Grubbing.
01901 23593 Roadway Excavation
01910 23411 Grading 8 6 12 1 6 33
02201 23411 Finishing Roadway
03901 23411. Asphalt Concrete
03910, , 23411 ` Paving Asphalt
08406 23411, 23521 Painted Traffic Stripe & Marking
01930 23411 Backfill 4 5 .6 2 4 21
04201 23411 Groove & Grind Pavement
05620 23411 Roadside Sign`
08000 23411 Fencing' "0 0' 0 0 1 1
TOTAL NUMBER OF ESTABLISHED DBE FIRMS 12 11 18 3 11 55 `'
CONSTRUCTION:
05110 23571 Concrete Surface Finish
05111 23571 Concrete Overlay 2 1 10 4 1 18
Portland Cement & Conrcrete
04010 23571 Pavement
TOTAL NUMBER OF ESTABLISHED DBE FIRMS 2 1 10 4 1 18
': DATA SOURCE: Caltrans Bulletin Board System Directory of Certified DBE Firms.
ATTACHMENT I!
CITY OF TUSTIN
DBE OVERALL ANNUAL GOAL ANALYSIS" FOP. FFY 2001/02 ,.
# 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) ~
!. .... ................... .
Major <~ran.~le" '
Category:. 23411' HIGHWAY & STREET CONSTRUCTION ..County Total
........... NArCS ' ............. ...~'
CODE NAICS' DESCRIPTION .........
"' ~_341i Highway & Street COnstrUction" 74 74
23499 All Other Heavy Construction 148 148
23593 Excavation Contractors ' 101 101
23521 Painting & Wall Covering Contractors 442 .... 442
!~ ,. , . ......... I ,, 7'~'~i .... ,,',',, ~, ,,",',76,5,, ',' i
CO ON:
Major . orange
Category: 23571" CONCRETE CONTRACTORS ', County Total
.... · 'NAICS ...............
CODE .., NAiCS DESCRIPTION: ............
23571 Co~crete Contractors' '~ 236 236
DATA SOURCE: U.S. Census Bureau' County Business Patterns utilizing, NAICS Work Category Codes
~,.;,
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF TUSTIN
RESOLUTION NO. 01-44.
City of Tustin
RESOLUTION CERTIFICATION
SS
I, PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, hereby certifies that the whole number of the members of the City Council of the
City of Tustin is five; and that the above and foregoing Resolution No. 01-44 was adopted
at a regular meeting of the City Council held on the- 7 "day of May, 2001, by the fallowing
vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
Pamela Stoker, City Clerk
Worley, Thomas, Bone, Doyle, Kawashima
None
None
None