HomeMy WebLinkAbout11 - Disadvantaged Business Enterprise RequirementsCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. i i
April 12, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Jessica Etezady
949 - 644 -3335
jetezady @city.newport- beach.ca.us
SUBJECT: ADOPTION OF A PROGRAM FOR DISADVANTAGED BUSINESS
ENTERPRISE (DBE) REQUIREMENTS FOR FEDERAL FISCAL YEAR
2004 -2005
RECOMMENDATIONS:
1. Approve the DBE Program for the City of Newport Beach for Federal Fiscal Year
beginning October 1, 2004, and ending September 30, 2005.
2. Authorize the Public Works Director to submit the approved DBE Program to
Caltrans Staff.
3. Designate Jessica Etezady, Administrative Manager, as the City's DBE Liaison
Officer.
DISCUSSION:
During the current fiscal year the City will receive approximately $1.25 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 in the Daily Pilot on February 18, 2005 and one time online on the
La Opinion website (see attached notices). There were no comments received from the
public during the 45 -day review period.
SUBJECT: ADOPTION OF A PROGRAM FOR DISADVANTAGED BUSINESS ENTERPRISE (DBE) REQUIREMENTS AND
APPOINTMENT OF LIAISON OFFICER FOR FEDERAL FISCAL YEAR 2004 -2005
April 12, 2005
Page 2
The City's overall DBE goal established for Federally- funded projects is 21.6 percent for
projects awarded between October 1, 2004, and September 30, 2005. This overall goal
will be updated for each fiscal year when Federal funds are requested. In a typical
contract this means 21.6 percent of the total contract amount will be subcontracted to
certified DBE firms. The goal of 21.6 percent is based on guidelines established by
Caltrans. The updated DBE goal and methodology and DBE Program Policy are
included as an attachment. These documents have been reviewed and approved by
Caltrans Staff.
The DBE goal submitted for the current year is significantly higher than in years past.
This is due to the nature of this year's Federally- funded project. In the past, the
projects have typically been construction projects, and this year's project is a bridge
retrofit design project, which has a higher percentage of available disadvantaged
businesses. 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.
Prepared bby_:_
Jgsi§ica Et&zady /
Administrative Manager
Submitted by:
Stephen G. BaddmU
Public Works Director
Attachments: Overall DBE Goal and Methodology Document
Public Notice — Daily Pilot
Public Notice — La Opinion
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
Stephen G. Badum, Director
February 15, 2005
Ms. Homa Nouri
Local Assistance
Department of Transportation, D- 12
3337 Michelson Drive
Suite 380
Irvine, California 92612 -8894
Subject: City of Newport Beach FFY 2004 -05 DBE Goal
Attention: Ms. Nouri, Local Assistance
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 21.6% for the
Federal Fiscal Year 2004/05 ending on September 30`h of this year.
Methodology
The City has chosen 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 NAICS code. The Caltrans
DBE directories were used to determine the number of all ready, willing, and able
businesses in Orange County using NAISC 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.
Using this data, the City has established an overall DBE goal of 21.6 %. This year, the
City's project is a bridge retrofit design project, which is the reason the goal is much
higher than in years past. The spreadsheet used to establish the overall goal and a
detailed description of the goal methodology used are attached for your review.
Overall Annual Goal and Projection ofRace- Neutral and Race - Conscious
Participation
The Overall Annual (FFY 2004/05) DBE Goal for the City of Newport Beach's Federal
assisted funds contract is 21.6 %. The goal is expressed as a percentage of all Federal -
assisted funds that the City will expend in the FHWA- assisted contracts in the current
fiscal year.
3300 Newport Boulevard Post Office Box 1768 - Newport Beach, California 92658 -8915
Telephone: (949) 644 -3311 Fax: (949) 644 -3318 - www.city.newport- beach.ca.us
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 goal
reflects a determination of the level of DBE participation, which would be expected
absent from the effects of discrimination.
Public Participation and Facilitation
In accordance with Public Participation Regulatory Requirements of 49 CFR Part 26 and
the Caltrans Local Assistance Procedures Manual, this goal 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's proposed goal. Such Notice will inform the public that the
proposed goal and its rationale are available for inspection at the City's Public Works
Department during normal business hours for 30 days following the date of the Notice
and the City will accept comments on the goal for an additional 15 days. The required
public participation provisions will be fully satisfied prior to submitting the City's goal to
Caltrans for final review and approval.
DBE Program Updates
Due to personnel changes, please update your records to list Jessica Etezady as the City's
DBE Officer.
Sincerely,
sica Ere y
Administrative Manager
Goal Methodology Detail
City of Newport Beach, DBE Program 2004/05
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's
Federal Fiscal Year 2004105 DOT - assisted contracting opportunities projected to be let,
the City followed one of the five prescribed Federal goal- setting methodologies in the
Caltrans Local Assistance Procedures Manual. This was accomplished by accessing the
Catran's online DBE Directory of Certified Frims and the 2002 U.S. Census Bureau
County Business Patterns (CBP) Database. Comparisons were made by corresponding
area codes within the City's market area and by the specified industries and types of
businesses identified in the attached spreadsheet.
Numerator = Caltran's DBE Directory of Certified Firms
Denominator = Census Bureau's Business Pattern Database (CBP)
The City has 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. 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 divided
the numerator representing the ratio of ready, willing, and able DBE firms to bid, by the
denominator representing all firms (DBE and Non -DBE) available to bid for each of the
work categories. Application of this formula yielded the following baseline information.
Number of Ready, Willing, and Able DBE's
A'umber of All Available Firms = BASE FIGURE
Design Firms (NAISC - 541330):
57 DBE Firms
1052 Total Firms = 0.054
Environmental Engineering Firms (NAISC — 541618):
87 DBE Firms
148 Total Firms = 0.588
The Base Figures were further adjusted by weighting the relative availability of DBE
groups within the major categories, giving more weight to the work categories in which
the City will spend its DOT - assisted dollars. The figure resulting from this weighted
calculation is as follows:
Design:
0.054 * 0.70 (70% of the project cost) = 0.038 or 3.8% Weighted
Environmental Engineering:
588 * 0.30 (30% of the project cost) = 0.178 or 17.8% Weighted
3.8% +17.8% = 21.6% Total DBE Goal
Step 2: Adjusting the Base Figure
Upon establishing the Base Figure, the City assessed other evidence potentially impacting
the relative availability of DBE's within the City'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. Furthermore, the project receiving DOT - assisted funds
in the current year is very different from the types of contracts let in the past, so an
adjustment based on prior rates would not be accurate.
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Authorized to Publish Advertisements of all k,�us including public notices by
Decree of the Superior Court of Orange County, California. Number A -6214,
September 29. 1961, and A -24831 June 11, 1963.
PROOF OF PUBLICATION
STATE OF CALIFORNIA)
) ss.
COUNTY OF ORANGE )
I am a Citizen of the United States and a
resident of the County aforesaid; I am
over the age of eighteen years, and not a
party to or interested in the below entitled
matter. I am a principal clerk of the
NEWPORT BEACH - COSTA MESA
DAILY PILOT, a newspaper of general
circulation, printed and published in the
City of Costa Mesa, County of Orange,
State of California, and that attached
Notice is a true and complete copy as
was printed and published on the
following dates:
FEBRUARY 18,2005
I declare, under penalty of perjury, that
the foregoing is true and correct.
Executed on FEBRUARY 18,2005
at Costa Mesa, California.
Signature
r
RECEIVED
FFR 9. a ). pc,
Public Abrks !DCp °
City of Newport Be_...
t File
_-ANK NOM
CROFKEW MBEACH
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 through
September 30, 2005. The
City of Newport Beach's
proposed Overall Annual
Goal and its rationale
1 were 'developed in re-
sponse to the U.S.
Department of Trans-
portation's New Disad-
vantaged Business En-
terprise 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 Depart -.
ment, Building C
3300 Newport Boulevard
Newport Beach, CA
92663
www.tity.newport-
beach.ca.us
Comments will 'be ac-
cepted on the Goal for
forty -five (45) days
from the date of this
Notice. Comments may
be forwarded to the City
of Newport Beach at the
above stated address or
to the State of California
Department of Trans-
portation. District 12,
3337 Michelson Drive,
Suite 380, Irvine, CA
92612 -8894, Attention:.
District Local Assistance
Engineer:
Dated at Newport Beach.
California, this 18th day
of February. 2005.
Published Newport
Beach /Costa Mesa Daily
Pilot February 18,
2005 F824
PROOF OF PUBLICATION
(2015.5C.C.P.)
La Opinion
The Lending Spanish Language Daily Newepeper
700 S. Flower St. • Los Angeles, CA 90017
Tel:(213) 896 -2260 • Fax:(213) 896 -2238
vnvw.laopmion.com
STATE OF CALIFORNIA
I am a citizen of the United States and a
resident of the county aforesaid; I am over
the age of eighteen years, and not a party to
or interested in the above- entitle matter. I
am the principal clerk of the printer of La
Opini6n a newspaper of general
circulation, printed and published daily in
the city of Los Angeles, County of Los
Angeles, and which newpaper has been
adjudged a newspaper of general
circulation by the Superior Court of the
County of Los Angeles, State of California,
under the date of July 28, 1969, Case
Number: 950176; that the notice, of which
the annexed is a printed copy, has been
published in each regular and not in any
supplement thereof on the following dates,
to-wit:
•
all in the year 20fl—>
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
D %at Los Angeles lifornia, this
. day of .,200S
ADV #017 Controlled
Rev. 05/04
RECEIVED
FILE Cap y MAR 0 5 2005
Public Works Department
City of Newport Beach
This space is for the County Clerk's filing Stamp
Proof of publication:
CUIDAD DE NEWPORT BEACH
SIRVASE POR LA PRESENTED qua Is Cuidad de
Newport Beach he establecido una Meta Anual
Total pare Las Emprosas on Desventaia (Overall
Annual Disadvantaged Business Enterprise Goal)
aplicable a las oportunidades de contrdtos proyec-
faces a set extendidas durante of periodb del f to de
octubre de 2004, at triente de Septiembre de 2005.
La Meta AnUal total propuesta por la Cuidad de
Newport Beach y su razon fundamental tuaron des -
arrolladas an repuesta a la Resolution Final del
Nuevo. Programa de Empresas Desventaiazas del
Departamento de Transpodaci6n do ros Estados
Unkbs (49 CFR, Parte 26), y estan disponibles
para su Inspecci6n por. los slguientes trointa (30)
dies a panir de la publiweion de este anuncio, de 8
a.m, a 5 p.m., Hora del Peci ico, de lunes a viemes
an nuestra oficina principal ubicada en:
Cuidad de Newport Beach
Public Works Department, Edlficio C
3300 Newport Boulevard
Newport Beach, CA 92663
www.city.newport- beach.da.ua
Se aceptaran comentarios sobre Las Metes por los
siguientes cuarenta;y cinco (45) dial a parir de la
publicaci6n qua aparece aqvf aniba o at Departa.
mento de Transportackin del Estado de California
(State of California Department of Transportation),
District 12, 337 Michelson Drive, Suite 380, Irving,
CA 92612 -8894, Attn: District Local Assistance En-
gineer.
Beach. California este deci-
de2005.
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