HomeMy WebLinkAbout10 - Disadvantaged Business Enterprise ProgramOctober 22, 2002
CITY COUNCIL AGENDA
ITEM NO. /D
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
2002 -2003
RECOMMENDATIONS:
1. Approve the DBE Program for the City of Newport Beach for Federal Fiscal Year
beginning October 1, 2002, and ending September 30, 2003.
2. Authorize the Public Works Director to submit the approved DBE Program to
Caltrans Staff.
DISCUSSION:
During the next year the City will receive approximately $1.1 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 September 5, 2002 and one time online on the
La Opinion website. There were no comments received from the public during the 45-
day review period. A copy of each of the notices are included as Attachment A and
Attachment B.
SUBJECT: ADOPTION OF A PROGRAM FOR DISADVANTAGED BUSINESS ENTERPRISE (DBE) REQUIREMENTS AND
APPOINTMENT OF LIAISON OFFICER FOR FEDERAL FISCAL YEAR 2002 -2003
October 22, 2002
Page 2
The City's overall DBE goal established for Federally- funded projects is 8.83 percent for
projects awarded between October 1, 2002, and September 30, 2003. This overall goal
will be updated for each fiscal year when Federal funds are requested. In a typical
contract this means 8.83 percent of the total contract amount will be subcontracted to
certified DBE firms. The goal of 8.83 percent is based on guidelines established by
Caltrans. The updated DBE goal and methodology and DBE Program Policy is
included as Attachment C. 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
y.rn2�rv,tiJ
Lois Thompson
Administrative Manager
Attachment: Attachment A - Public Notice — Daily Pilot
Attachment B - Public Notice — La Opinion
Attachment C - Revised DBE Goal and Methodology Document
Authorized to Publish Adwrtlsements of all kinds including publiC notices by
Decree of the Suocricr Court of Orange County, California. Number A.6214,
September 29, 1961, and A -24631 June 11, 1963.
PROOF OF PUBLICATION
STATE OF CALIFORNIA)
) 55.
County of Orange )
I am a Citizen of the.United States and a
resident of the County aforesaid; 1 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
f- flowing dates:
September 5, 2002
I declare, under penalty of perjury, that the
foregoing is true and correct.
Executed on _ September 5 , 2002
at Costa Mesa, California.
�i
Signature
Attachment A
SEP - 9 H02
i •
PUBLIC NO110E
CPOFNEWPORTBEACH
NOTICE *IS HEREBY
GIVEN, that the City of
,Newport Beach, has
established an Overall
Annual Disadvantaged
Business Enterprise Goal
applicable to contracting i
opportunities schedued
to be awarded during
the period of October 1,
2002 through September -
30, 2b03. The City of
Newport Beach's : pro-
posed _Overall Annual,
Goal and its rationale's
were. developed in ,re-
sponse to the U.S.
Department of Trans -
onrtation's New Disad- .
se 'Program
(49 CFR Part
are, available
this Notice, from 8:00
n. to 5:00 , p.m.,
cific . Standard •Time,
nday through Friday
our principal place of
Department,'-': -
Bldg. C,
3300 Newport Blvd.,
Newport Beach; Cl ..
92863
www.atynewpert�d�mia "
Comments wiU'h
accepted on the Goal for
forty -five days
from the date ate of of tAis
Attn:
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ans
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Attachment B
�a O�inn�i;n
a i r,
on. com rclasific ado s InewportI
. AVISO PUBLICO
CIUDAD DE NEWPORT BEACH
SIRVASE POP LA PRESENiE, que la Ciudad de Newport Beach ha establecido una Meta Annual Total
para Las Empresas Desventajadas (Overall Annual Disadvantaged Business Enterprise Goal) aplicable a las
oportunidades de contratos proyectadas a ser extendidas durante el periodo del 1 ro de octubre de 2002, al
30 de septiembre de 2003. La Meta Anual Total propuesta par la Ciudad de Newport Beach y su raz6n
fundamental fueron desarrollladas en respuesta a la Resoluci6n Final del Nuevo Programa de Empresas
Desventajadas del Departamento de Transportaci6n de los Estados Unidos (49 CFR, Parte 26), y estan
disponibles para su inspecci6n par los siguientes treinta 00) dias a partir de la publicaci6n de este anuncio,
de 8 a.m. a 5 p.m., Hora del Pacifica, de lunes a viernes en nuestra oficina principal ubicada en:
Ciudad de Newport Beach
Public Works Department, Edificio C
3300 Newport Blvd.
Newport Beach, CA 92663
www.cily.newport-beach.ca.us
Se aceptaran comentarios sabre Las Metas par los siguientes cuarenta y cinco (45) dias a partir de la
publicaci6n de este Aviso. Los comentarios pueden ser enviados a la Ciudad de Newport Beach a la
direcci6n que aparece aquf arriba o al Departamento de Transportaci6n del Estado de California (State of
California Department of Transportation), District 12, 3337 Michelson Drive, Suite 380, Irvine, CA 92612-
8894, Attn: District Local Assistance Engineer.
Fechado an Newport Beach, California este tercer dia de septiembre de 2002.
! '3
j SEP — 3 2002
STATE OF CALIFORNIA— BUSINESS, TRANSPORTATION AND HOUSING AGENCY
GRAY DAVIS, Governor
DEPARTMENT OF TRANSPORTATION
DISTRICT 12
3337 MICHELSON DRIVE, SUITE 380
IRVINE, CA 92612 -8894 0
August 26, 2002
Ms. Lois Thompson
DBE Liaison Officer
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92658
Subject: Disadvantaged Business Enterprise (DBE) Program Submittal
Fiscal Year 2002/03
Dear Ms. Thompson:
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. Any public comments received in our
office will be forwarded to the DBE Liaison Officer.
The final DBE program must be adopted by City Council prior to Caltrans approval.
If you require any further assistance, please contact l4oma Nouri at:
Phone: 949-724-2410
Fax: 949 - 724 -2592
Email: homa_nouri@dot.ca.gov
Sincerely
N "VU9(6M1(1&
Alan William, Chief
Local Assistance Branch
District 12
Attachment C
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
3300 NEWPORT BLVD.
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
(949)644 -3311
August 21, 2002
Alan Williams, Chief
Caltrans, District 12
3337 Michelson Drive, Suite 380
Irvine, CA 92612 -8894
RE: Transmittal of Updated DBE Program FFY 02 -03 for Caltrans Review
Dear Mr. Williams:
Enclosed please find the updated DBE Program for the City of Newport Beach for FFY
02 -03. 1 will publish the Public Notice and agendize the program for City Council
approval after I have received approval from your office.
If you have further questions, I can be reached directly at (949) 644 -3335.
Sincerely,
¢�
Lois Thompson
Public Works Administrative Manager
August 21, 2002
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
3337 Michelson Drive
Irvine, CA 92612 -8894
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 8.83% for the Federal Fiscal Year
2002/03, beginning on October 1" and ending on September 30"'.
MethodoloaY
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 8.83 %. 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 2002/03) DBE Goal for the City of Newport Beach's DOT - assisted funds
contracts is 8.83 %. 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 8.83% for FFY
2003 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.
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 IFFY 2002103 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 2002 -03 other than the overall DBE goal.
(J1��' Ali iN'3'Ll
Lois Thompson
DBE Liaison Officer
Goal Methodology Detail
City of Newport Beach, DBE Program 2002 -03
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 2002 -03 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 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 ofReady, 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 1 Base Figure Ratio (weighted by type of work to be performed and corresponding contract dollars)
Base Figure= 79.08%(DBEs in WCC3910) + 15.10 %(DBEs in WCC4010) + 5.82 %(DBEs in WCC8406)
Base Figure= .7908'41/1019 +.1510'3112721 +.0582'1515139
Base Figure= .7908'.0402 + .1510'.0114 +.0582'.0029
Base Figure = .0318 +.0017 + .0002
Base Figure= (7.21 +1.31 +,31)'100 = 8.83%
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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CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
3300 NEWPORT BLVD.
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
(949) 644 -3311
DRAFT PENDING CALTRANS APPROVAL
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, 2002 through September 30, 2003. 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. c ity. n ewpo rt-b e a c h. ca. u s
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 380, Irvine, CA 92612 -8894, Attn.:
District Local Assistance Engineer.
Dated at Newport Beach, California, this xx day of August, 2002.
FAUSERSIPBW\LTh0mpson\Admin08E Program\PUBLIC NOTICE 02- 03.doc