HomeMy WebLinkAbout12 - Disadvantaged Business Enterprise RequirementsCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 12
September 27, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Bill Patapoff
949 - 644 -3321
b patapoff@ city. newport-beach.ca.us
SUBJECT: ADOPTION OF A PROGRAM FOR DISADVANTAGED BUSINESS
ENTERPRISE (DBE) REQUIREMENTS FOR FEDERAL FISCAL YEAR
2005 -2006
RECOMMENDATIONS:
1. Approve the DBE Program for the City of Newport Beach for Federal Fiscal Year
beginning October 1, 2005, and ending September 30, 2006.
2. Authorize the Public Works Director to submit the approved DBE Program to
Caltrans Staff.
DISCUSSION:
During the current fiscal year the City will receive approximately $1.08 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 August 8, 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.
The City's overall DBE goal established for Federally- funded projects is 6.2 percent for
projects awarded between October 1, 2005, and September 30, 2006. This overall goal
will be updated for each fiscal year when Federal funds are requested. In a typical
SUBJECT: ADOPTION OF A PROGRAM FOR DISADVANTAGED BUSINESS ENTERPRISE (DBE) REQUIREMENTS AND
APPOINTMENT OF LIAISON OFFICER FOR FEDERAL FISCAL YEAR 2005 -2006
September 27, 2005
Page 2
contract this means 6.2 percent of the total contract amount will be subcontracted to
certified DBE firms. The goal of 6.2 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.
.. . y-. Submitte
t
500
Bill Patapoff V.
City Engineer Pupl,-�'Works Directa
Attachments: Overall DBE Goal and Methodology Document
Public Notice — Daily Pilot
Public Notice — La Opinion
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 2005 -06 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
Caltran's online DBE Directory of Certified Firms 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.
NumberofReadv. Willing, and Able DBE's
Number of All Available Firms = BASE FIGURE
Heavy Construction (NAISC — 23411 / Industry Code - 234):
19 DBE Firms
293 Total Firms = 0.065
Concrete Contractors (NAISC — 23411 / Industry Code - 23571):
19 DBE Firms
292 Total Firms = 0.065
Other Special Trades (NAISC — 23411 / Industry Code - 23590):
19 DBE Firms
597 Total Firms = 0.032
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:
Heavy Construction:
0.065 * 0.77 (77% of the project cost) = 0.050 or 5.0% Weighted
Concrete Contractors:
0.065 * 0.15 (15% of the project cost) = 0.010 or 1.0% Weighted
Other Special Trades:
0.032 * 0.08 (8% of the project cost) = 0.002 or 0.2% Weighted
5.0% + 1.0% + 0.2% = 6.2% TotdDBE God
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 few years,
so an adjustment based on prior rates would not be accurate.
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STATE OF CALIFORNIA BUSINESS TRANSPORTATION AND HOUSINQ A001CY A IA S h C
DEPARTMENT OF TRANSPORTATION
DISTRICT 12
3337 MICHSLSON DRIVE SUITE 380
IRVINE, CA 92612 -8894
PHONE (949) 756 -7805
FAX (949) 724 -2592
Ms. Jessica Etezady August 16, 2005
DBE Liaison Officer
City of Newport Beach
3300 Newport Blvd
Newport beach, CA 92658 -8915
Subject: Disadvantaged Business Enterprise (DBE) Program Submittal
Fiscal Year 2005106
Dear Ms. Etezady:
0
Flex yourpotivri
Be energy efficient!
In accordance with the 49 Code of Federal Regulations part 26, this letter serves as confirmation that
CALTRANS Local Assistance received and reviewed your proposed overall annual DBE goal. The City's
overall annual DBE goal and goal setting meets the DBE requirements.
The next step towards approval is to begin the Public Participation 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 focused media circulation paper. Your program must be available for review for 30 days
and an additional 15 days is required for public comments. Airy public conlnleiits received ill our office will
be fonvorded to the DBE Liaison Officer.
The final DBE program must be adopted by City - Council priorto Ca'ltrans approval.
If you require any further assistance, please contact Homa Nouri at:
Phone: 949 - 724 -2410
Fax: 949 - 724 -2592
Email: homa_nouri @dot.ca.gov
Sincerely
Alan William, Chief
Local Assistance Branch
District 12
'Caltrans improves mobility across Califomia'
RECm _ -- 'ED
Public Works " , ^r..- -nt
City of Newpc_ w -Cn
Authorized to Publish Advertisements of all kinds including public notices by
Decree of the Superior Court of Omnge 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:
AUGUST 8,2005
I declare, under penalty of perjury, that
the foregoing is true and correct.
Executed on AUGUST 8,2005
at Costa Mesa, California.
Signature
POBUCNOTNE
CITY Of NERM 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 through
September 30, 2006. The
City of Newport Beach's
proposed Overall Annual
Goal and its rationale
were developed in re-
sponse to the U.S.
Department of Trans-
RECEIVED
AUG 1 2 7005
Public Works Department
City of Newport Beach
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
Department. Building C
3300 Newport Boulevard
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 may;
be forwarded to the City!
of Newport Beach at the:
above stated address orl
to the State of California I
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
8th day of August. 2005.
Published Newport
Beach /Costa Mesa Daily
Pilot August 8
2005 M99f
Aug. 24. 2UU9 1: WM
No, 3316 P. 1
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PROOF OF PUBLICATION
(201 5.5C. C. P.)
�M�
Th. L..dlna BpeniPh L.ngu.o. D.IIY N.w.p.p.r
700 S. Flower St. - Los Angeles, CA 90017
Tsl:(213) 898 -2280 • Fax:(213) 898.2238
V/WW.leddnlen.dam
STAVE 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 newpape; 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 26, 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 20 bit
I certify (or declare) under penalty of
perjury that the foregoing Is true and
correct.
D e at Los Ange s, California, this
_ day of l 1 ES1. , 20 �—
ADV #017 Controlled
Rev. 05104
This space is for the County Clerk's filing Stamp
Proof of publication;
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sl6ar, PCR LA PRFBaNTE,"q is Guided "do.
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