HomeMy WebLinkAbout22 - Disadvantaged Business Enterprise (DBE) ProgramSeptember 25, 2001
CITY COUNCIL AGENDA
ITEM NO. 22
TO: Mayor and Members of the City Council
FROM: Public Works Department
SUBJECT: ADOPTION OF A PROGRAM FOR DISADVANTAGED BUSINESS
ENTERPRISE (DBE) REQUIREMENTS FOR FEDERAL FISCAL YEAR 2001-
2002
RECOMMENDATIONS:
1. Approve the DBE Program for the City of Newport Beach for Federal Fiscal Year
beginning October 1, 2001, and ending September 30, 2002.
2. Authorize the Public Works Director to submit the approved DBE Program to Caltrans
Staff.
During the next three years the City will receive approximately $1.5 million of Federal funding
for capital improvement projects. In order to qualify for these funds, the City must adopt a
revised Disadvantaged Business Enterprise (DBE) program for projects utilizing these Federal
funds.
The City has historically complied with all DBE goals and requirements. The program has been
in place since 1984 when it was then entitled the Minority Business Enterprise Program.
Recent U.S. Department of Transportation regulations require local agencies to submit a
revised DBE Program and update the goals of the program annually.
As a component of the program, contractors retained by the City to construct improvements
fully or partially funded with Federal funds must indicate to the City what portion of the contract
will be performed by DBE's (firms owned by disadvantaged groups such as minorities, women,
etc.). This policy will not apply to City financed projects.
Staff has prepared an Overall DBE Goal and Methodology document, attached for your
approval. A public notice stating the City's Overall DBE Goal and Methodology was published
one time on August 8, 2001, and there were no comments received from the public during the
45 -day review period. A copy of the notice is included as Attachment A.
The City's overall DBE goal established for Federally- funded projects is 9.5 percent for projects
awarded between October 1, 2001, and September 30, 2002. This overall goal will be updated
for each fiscal year when Federal funds are requested. In a typical contract this means 9.5
SUBJECT: ADOPTION OF A PROGRAM FOR DISADVANTAGED BUSINESS ENTERPRISE (DBE) REQUIREMENTS AND
APPOINTMENT OF LIAISON OFFICER FOR FEDERAL FISCAL YEAR 2001 -2002
September 25, 2001
Page 2
percent of the total contract amount will be subcontracted to certified DBE firms. The goal of
9.5 percent is based on guidelines established by Caltrans. The updated DBE goal and
methodology and DBE Program Policy is included as Attachment B. These documents have
been reviewed and approved by Caltrans staff.
Council could choose to not approve the revised DBE program, however, under current
regulations the City will lose its eligibility to receive Federal and State funds.
Respectfully
WORKS DEPARTMENT
G. Badum, Director
By.
Lois Thompson
Administrative Coordinator
Attachment: Attachment A - Public Notice dated August 8, 2001
Attachment B - Revised DBE Goal and Methodology Document
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
3300 NEWPORT BLVD.
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
(949) 644 -3311
PUBLIC NOTICE
CITY OF NEWPORT BEACH
NOTICE IS HEREBY GIVEN, that the City of Newport Beach has established an
Overall Annual Disadvantaged Business Enterprise Goal applicable to
contracting opportunities scheduled to be awarded during the period of October
1, 2001 through September 30, 2002. The City of Newport Beach's proposed
Overall Annual Goal and its rationale were developed in response to the U.S.
Department of Transportation's New Disadvantaged Business Enterprise
Program Final Rule (49 CFR Part 26), and are available for inspection for thirty
(30) days following the date of this Notice, from 8:00 a.m. to 5:00 p.m., Pacific
Standard Time, Monday through Friday at our principal place of business located
at:
City of Newport Beach
Public Works Department, Bldg C
3300 Newport Blvd.
Newport Beach, CA 92663
www. city. newport- beach.ca. us
Comments will be accepted on the Goal for forty -five (45) days from the date of
this Notice. Comments can be forwarded to the City of Newport Beach at the
above stated address or to the State of California Department of Transportation,
District 12, 3337 Michelson Drive, Suite CN380, Irvine, CA 92612 -0661, Attn.:
District Local Assistance Engineer.
Dated at Newport Beach, California, this 6th day of August, 2001.
F: \Users \PBW\LThompsonWdmin\DBE Program \PUBLIC NOTICE 01- 02.doc
Attachment A
August 1, 2001
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
3300 NEWPORT BLVD.
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
(949) 644 -3311
TO: Mr. Alan Williams
District Local Assistance Engineer
Caltrans District 12
3347 Michelson Drive
Irvine, CA 92612 -0661
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 Caltrans Local Assistance
Procedures Manual.
The City of Newport Beach (City) submits our annual overall goal information for your review and
comment. The City proposes an annual overall DBE goal of 9.5% for the Federal Fiscal Year
2001/02, beginning on October 1s' and ending on September 301h.
Methodology
The City chose to use the Caltrans DBE directories and Census Bureau Data to determine its
overall goal. Staff used the Census Bureau's County Business Pattern database to determine the
number of businesses available by NACCS code. The Caltrans DBE directories were used to
determine the number of all ready, willing, and able businesses in Orange County using Caltrans
WIC codes. The relative availability of DBE's in our market was determined by dividing the
number of available DBE's by the number of all businesses (by NACIS code). This method was
outlined in the workshop presented by Padilla Associates and Caltrans District 12 on September
21, 2000. (See attached detailed description)
Using this data, the City has established an overall DBE goal of 9.5 %. The spreadsheets used to
establish the overall goal and a detailed description of the goal methodology used are attached
for your review.
Overall Annual Goal and Proiection of Race - Neutral and Race - Conscious Participation
The Overall Annual (FFY 2001/02) DBE Goal for the City of Newport Beach's DOT - assisted funds
contracts is 9.5 %. The Overall Goal is expressed as a percentage of all DOT- assisted funds that
the City will expend in the FHWA- assisted contracts in the forthcoming fiscal year.
This goal further serves to identify the relative availability of DBE's based on evidence of ready,
willing, and able DBE's 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.
The City of Newport Beach projects the proposed Overall Annual DBE Goal of 9.5% for FFY 2002
will be archived 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 DBE's and other small
businesses in conformance with new regulatory requirements.
Attachment B
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 Newport
Beach's market area.
The City of Newport Beach will also publish a Public Notice in general circulation media
announcing the City of Newport Beach'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 are
is available for inspection at the City of Newport Beach's Public Works Department during normal
business hours for 30 days following the date of the Public Notice and the City of Newport Beach
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
Placentia's Overall Annual DBE Goal to Caltrans for final review and approval.
DBE Program Updates
The City of Newport Beach has adopted Caltrans model program as its own with no changes and
there are no updates for FY 2001 -02 other than the overall DBE goal.
Lois Thompson
DBE Liaison Officer
Goal Methodology Detail
City of Newport Beach, DBE Program 2001 -02
Step I. Determination of a Base Figure
To establish the City of Newport Beach's base figure of the relative availability of DBE's
to all comparable firms (DBE's and Non - DBE's) available to bid or propose on the City
of Newport Beach's Federal Fiscal Year 2001 -02 DOT assisted contracting opportunities
projected to be let, the City of Newport Beach followed one of the five prescribed Federal
goal - setting methodologies in Caltrans Local Assistance Procedures Manual. This was
accomplished by accessing the Caltrans' online Bulletin Board System (BBS) DBE
Directory of Certified Firms and the 1999 U.S. Census Bureau County Business
Patterns (CBP) Database. Comparisons were made by corresponding zip codes within
the City of Newport Beach's market area (defined as Orange County) and by the
specified industries and types of businesses identified in the attached spreadsheet titled:
Market Area.
Numerator = Caltrans' DBE Directory of Certified Firms
Denominator = Census Bureau's Business Pattern Database (CBP)
The City of Newport Beach made a concerted effort to ensure the scope of businesses
included in the numerator was as close as possible to the scope included in the
denominator. For corresponding detail see attached spreadsheet titled: Market Area.
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 DBE's for each work category, the City of
Newport Beach divided the numerator representing the ratio of ready, willing, and able
DBE firms to bid, by the denominator representing all firms (DBE's and Non -DBEs)
available to bid for each of the.work categories. Application of this formula yielded the
following baseline information.
Number of Readv, 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
groups 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 form this weighted calculation is as follows:
Goal Methodology Detail
Page 2
Step I Base Figure Ratio (weighted by type of work to he performed and corresponding contract dollars)
Base Figure=
78 %(DBEs in WCC3910) + 17 %(DBEs in WCC4010) +5 %(DBEs in WCC8406)
Base Figure=
.78'43/1016 +.17'36/2559 +.05'15/4608
Base Figure=
.78'.0422 +.17'.0141 +.05'.0033
ase Figure=
.0329 +.0024 +.0002
ase Figure=
.51 +1.65 +.34'100 =9.50%
Step 2: Adjusting the Base Figure
Upon establishing the Base Figure, The City of Newport Beach assessed other evidence
potentially impacting the relative availability of DBE's within the City of Newport
Beach's market area, in accordance with prescribed narrow tailoring provisions set forth
under 49 CFR Part 26 DBE Goal Adjustment provisions. None of the evidence reviewed
was deemed sufficient to justify an adjustment to the Base Figure.
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