HomeMy WebLinkAbout22 - DBE Program SubmittalCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 22
June 13, 2006
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Jamie Pollard
949 - 644 -3311 jpollard @city.newport- beach.ca.us
SUBJECT: DBE SUBMITTAL
RECOMMENDATION:
1. Approve the DBE Program for the City of Newport Beach for Federal Fiscal Year
beginning October 1, 2006, and ending September 30, 2007.
2. Authorize the Public Works Director to submit the approved DBE Program to
Caltrans staff.
3. Designate Bill Patapoff, City Engineer, as the City's DBE Liaison Officer.
DISCUSSION:
For the upcoming fiscal year, the City expects to receive approximately $1.25 million in
Federal funding for capital improvement projects. In order to qualify for these funds, the
City must update its Disadvantaged Business Enterprise (DBE) program. The City has
historically complied with all DBE goals and requirements as specified by the U.S.
Department of Transportation. The program has been in place since 1984 when it was
then entitled the Minority Business Enterprise Program. DBEs are firms owned by
qualified disadvantaged groups such as minorities and women.
In California, Federal funds and regulations are administered through the California
Department of Transportation ( Caltrans). On May 1, 2006, Caltrans adopted a new,
race neutral policy. In place of project specific goals for DBEs, local agencies are
required to determine an Annual Anticipated DBE Participation Level. The participation
levels of all participating agencies are then forwarded to Caltrans to be used to set a
statewide overall DBE goal to meet Federal requirements.
As a component of the program, each local agency will be required to track and
maintain a bidders list consisting of information about all DBE and non -DBE firms that
bid or quote on contracts fully or partially funded with Federal funds. Caltrans will use
this information to monitor DBE participation on all Federal -aid contracts. This policy will
only apply to projects financed from Federal sources.
DBE Submittal
June 13, 2006
Page 2
The City's DBE participation level is estimated to be 8.8 percent for federally funded
projects awarded between October 1, 2006, and September 30, 2007. The DBE
participation level submitted for the current year is slightly higher than DBE goals
submitted in recent years since business pattern data from the U.S. Census Bureau
has been separated in greater detail by specialty or work groups. This participation level
will be updated annually whenever Federal funds are anticipated. The attached Local
Agency DBE Annual Submittal Form includes updated DBE participation level and
methodology information and designation of the Public Works City Engineer as the
City's DBE Liaison Officer.
I
Submitted
,C1,(Lvi
S'teph/e I %t3aoum
Manager \, Pudic , brks Director
Attachments; Annual Anticipated DBE Participation Level and Methodology Document
City of Newport Beach
DBE Annual Submittal Form
City of Newport Beach
Local Agency DBE Annual Submittal Form
TO: CALTRANS DISTRICT 12
District Local Assistance Engineer
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.
The City of Newport Beach has established an AADPL of 8.8% for Federal Fiscal Year 2006/07,
beginning on October 1, 2006 and ending on September 30, 2007.
Methodology
The methodology and calculation worksheet for FFY 2006/07 are included herewith as Attachment A.
Disadvantaged Business Enterprise Liaison Officer (DBELO)
Bill Patapoff, City Engineer
City of Newport Beach
3300 Newport Boulevard, Newport Beach, CA 92663
(949) 644 -3321
(949) 644 -3318 fax
bpatapoff(o)citv.newport- beach.ca.us
Prompt Pav
Federal regulation (49 CFR 26.29) requires one of 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. (Attachment B is designation of the prompt payment provision option to be used by
the City of Newport Beach.)
Submitted by:
June 1, 2006
(Signature of Local Agency Recipient's Date
Chief Executive Officer)
Homer Bludau, City Manager (949) 644 -3000
(Print Name of Local Agency Recipient's Phone Number
Chief Executive Officer)
Reviewed by Caltrans:
(Signature of Caltrans District Local Assistance Engineer [DLAE]) Date
Distribution: (I) Original —DLAE DBE Annual Submittal Fom (05 /01/06)
(2) Copy -local agency after signing by DLAE
Attachment A
City of Newport Beach
Annual Anticipated DBE Participation Level
IFFY 2006 -07 Methodology Detail
METHODOLOGY
The City of Newport Beach declares its Annual Anticipated DBE Participation Level to be
8.8 percent for Federal Fiscal Year 2006 -07. The Annual Anticipated DBE Participation Level
for the City of Newport Beach is determined through a two -step system as follows:
Step 1: 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 2006 -07 federally 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 DBE Directory of Certified Fit-ins and the 2003 U.S. Census
Bureau County Business Patterns (CBP) Database. Comparisons were made by corresponding
industry codes for the City of Newport Beach's market area (defined as Orange County) and by
the anticipated work to be performed in FFY 2006107.
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.
Numerator = Caltrans' DBE Directory of Certified Finns
Denominator = Census Bureau's Business Pattern Database (CBP)
Number of Ready, Willing, and Able DBEs
Number of All Available Firms = BASE FIGURE
(Including DBEs and Non -DBEs)
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 calculation worksheet. 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.
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 categorieshridustries, in which
the City expects to allocate its federally- assisted dollars. Calculations determining the base
figure are included in the attached worksheet.
Step 2: Ad%ustine 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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City of Newport Beach
DBE Annual Submittal Form
(Attachment B)
Prompt 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 f dl payment of any retainage.
❑ 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 eaming
subcontractor in 30 -days 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 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 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.
Distribution: (I)Original —DLAE DBE Annual Submittal Foma(05 /01/06)
(2) Copy -local agency after signing by DLAE