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Home My WebLink AboutAdopt Annual Disadvantaged Business Enterprises (DBE) Goal o -P Council/Agency Meeting Held: Deferred/Continued to: Approved L3 Conditionally Approved 0 Denied JF*L" C i t(/t I e-rk'fgj g n a e Council Meeting Date: 2/712005 Department ID Number: PW 05 006 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COURCI MEMBERS SUBMITTED BY: PENELOPE Cpk'E�T -6RAFT, CITY ADMINISTRATOR PREPARED BY: -',,PAUL EMERY, ACTING DIRECTOR OF PUBLIC WORKS 0<(YV SUBJECT: ADOPT ANNUAL DISADVANTAGED BUSINESS ENTERPRISES (DBE) GOAL FOR FISCAL YEAR 2004/2005 IStatement of issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Affachment(s) Statement of Issue: To be eligible for financial assistance from the Federal Highway Administration (FHWA), the City must adopt an annual Disadvantaged Business Enterprises (DBE) goal, which sets target levels for female-owned and ethnic, minority-owned businesses in its contracts on Federal aid projects. Funding Source: Not applicable to this action. Recommended Action. Motion to: Adopt the Annual Disadvantaged Business Enterprises (DBE) goal of seven percent (7%). Alternative Action(s): Do not adopt the Disadvantaged Business Enterprise (DBE) goal and forego Federal financial assistance from the FHWA. REQUEST FOR ACTION MEETING DATE: 2/7/2005 DEPARTMENT ID NUMBER:PW 05 006 Analysis: The City of Huntington Beach Public Works Department has completed its Disadvantaged Business Enterprise (DBE) Program for Local Agencies for Fiscal Year 2004/2005. This year's program goal has been established at seven percent (7%) for all projects that receive Federal funds through the California Department of Transportation (Caltrans). The DBE Goal Methodology for Fiscal Year 2004/2005 describes the process by which the annual goal is calculated. (Attachment 1) On November 9, 2004, the City submitted its program to be reviewed and approved by Caltrans, the local agency responsible for the distribution of Federal highway grant funding. Caltrans accepted the City's program and requested that it be approved by the City Council. (Attachment 2) Pursuant to the U.S. Department of Transportation (DOT), 49 CFR Part 26, the Council is requested to adopt a DBE goal of seven percent (7%) for the City of Huntington Beach for Fiscal Year 2004/2005. Public Works Commission Action: Not required. Environmental Status: Not applicable. Attachment(s]: City Clerk's Page Number No. Description 1. DBE Goal Methodology for Fiscal Year 2004/2005 2. Caltrans letter of review & approval, dated November 24, 2004 G:IR C A12005105-006 Feb 7 Taite(Annual DBE Goal).doc -2- 1/19/2005 9:43 AM ATTACHMENT # 1 ii DISADVANTAGE BUSINESS ENTERPRISES CITY OF HUNTINGTON BEACH FISCAL YEAR 2004-2005 October 2004 CITY OF HUNTINGTON BEACH DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM OVERALL ANNUAL DBE GOAL SETTING METHODOLOGY FOR FEDERAL FISCAL YEAR (FFY) 2004/05 I. DOT-ASSISTED CONTRACTING PROGRAM FOR FFY 2004/05 Table 1 represents three DOT assisted projects the City of Huntington Beach considered in preparing its Overall Annual DBE Goal-Seffing Analysis for FFY 2004/05. All projects have subcontracting opportunities and are anticipated to be awarded and/or expended within the fiscal year. Table I TOTAL COST ESTIMATED PROJECT OF PROJECT FEDERAL DOLLAR SHARE EA TSCOUP 111, CC-1198 (various locations) $250,000 $200,00 EA TSCOUP IV, CC-1199 (various locations) $250,000 $200,00 EA TSCOUP V, CC-1200 (various locations) $250,00_0 $200,00 Beach Boulevard Parkway Landscape Median Improvements, CC-1229 $380,000 $285,00 jeastside between: Tailor Drive and Sterling Avenue, STPLER 518D 1( 50 arner/Gothard Signal Modification Improvements, CC-1232 (HES) $60,000 $54,00 Edinger/Gothard Signal Modification Improvements, CC-1233(HES) $85,000 $76,50 Warner/Edwards Signal Modification Improvements, CC-1234(HES) $60,000 $54,00 ._._.. ..�.... ._.....-....__.�.._...-... ...—.._..�..._..-......-.._.,....__._.-_______-._ TOTAL: $1,336,0001 $1,069,500 Table 2 provides a summary of the corresponding subspecialty work grouped into one primary category: Highway and Street Construction utilizing Caltrans Work Category Codes (WCC) and comparable 2001 Census Business Patterns North American Industry Classification System (NAICS) Work Codes. The table also serves to identify the estimated Federal Dollar Share and the Percent of Federal Funding for each primary work category, as follows: Table 2 NAICS ESTIMATED % OF FEDERAL PRIMARY WORK CATEGORY DESCRIPTION CATEGORY FEDERAL FUNDING BY DOLLAR SHARE WORK CATEGORY Highway, Street and Bridge Construction 237310 $1,069,500 100% TOTAL: $1,069,500 100% 1 CITY OF HUNTINGTON BEACH DBE Goal Analysis for FFY 2004/05 Page 2 of 6 II. GOAL-METHODOLOGY Step l: Determination of a Base Figure (26.45) To establish the City of Huntington Beach's Base Figure of the relative availability of DBEs to all comparable firms (DBEs and Non-DBEs) available to bid or propose on the City of Huntington Beach's FFY 2004/05 DOT-assisted contracting opportunities projected to be let, the City of Huntington Beach followed one of the five prescribed federal goal-setting methodologies in Caltrans Local Assistance Procedures Manual. This was accomplished by accessing the Caltrans' on-line Bulletin Board System (BBS) DBE Directory of Certified Firms and the 2001 U.S. Census Bureau County Business Patterns (CBP) Database. Comparisons were made by corresponding zip codes within the City of Huntington Beach's market area (defined as Orange County) and by the specified industries and types of businesses identified in Table 2. 45 For the numerator. Caltrans' DBE Directory of Certified Firms b For the denominator: Census Bureau's Business Pattern Database (CBP) The City of Huntington Beach made a concerted effort to ensure that the scope of businesses included in the numerator was as close as possible to the scope included in the denominator. For corresponding detail of all work category classifications grouped, refer to Attachments i and II. 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 DBEs for each work category, the City of Huntington Beach divided the numerator representing the ratio of ready, willing and able Dbe firms to bid, by the denominator representing all firms (DBEs and Non-DBEs) available to bid for each of the work categories. Application of this formula yielded the following baseline information: Number of Ready, 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 grouped 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 from this weighted calculation is as follows: 2 CITY OF HUNTINGTON BEACH DBE Goa!Analysis for IFFY 2004105 Page 3 of 6 Step I: Base Figure Ratio (weighted by type of work to be performed and corresponding contracting dollars) Base Figure = 100% [DBEs in NAICS 23731M CBPs in NAICS 237310** Base Figure = 1 12D17 3,238 Base Figure = 207 3,238 Base Figure = .0639 Base Figure = (.0639) 100 = 6.39% * For Additional NAICS Work Codes, refer to Attachment I. ** For additional NAICS Work Codes, refer to Attachment 11. Step 2: Adjusting the Base Figure Upon establishing the Base Figure, the City of Huntington Beach reviewed and assessed other known evidence potentially impacting the relative availability of DBEs within the City of Huntington Beach's market area, in accordance with prescribed narrow tailoring provisions set forth under 49 CFR Part 26 DBE Goal Adjustment provisions. Evidence considered in marking and adjustment to the Base Figure included the City of Huntington Beach's Past DBE Goal Attainment/Commitment on Similar Type Projects, Bidder's List and Disparity Studies. A summary of these considerations follows: A. Demonstrated Capacity of DBEs Measured by Actual Attainment The following table reflects the City of Huntington Beach's DBE goal attainments on similar projects awarded within the last two years utilizing DBE numeric goals from 7% to 8.4%: 3 CITY OF HUNTINGTON BEACH DBE Goal Analysis for FFY 2004/05 Page 4 of d PROJECT DBE GOAL DBE GOAL ATTAINMENT COMMITMENT ARTERIAL HIGHWAY REHABILITATION PROGRAM, (Warner Avenue[Bolsa Chica to Sims, CC-11501, Springdale Street 7% 7% McFadden to Edinger, CC-1151], McFadden Avenue[Goldenwest to 1-405/Cit Limits, CC-11521,. FFY 2003/2004 ARTERIAL HIGHWAY REHABILITATION PROGRAM, (Magnolia Street[Atlanta to Indianapolis, CC-1153], Hamilton Avenue7.5% 7% Bushard to S.A. River, CC-1155], Yorktown Avenue[Bushard to Broo_khurst CC-1156]), FFY 2003/2004 ARTERIAL HIGHWAY REHABILITATION PROGRAM, (Graham Street[Warner to Heil, CC-1158]and Warner Avenue[Graham to 8.4% 7% Srin dale, CC-11591J, FFY 2003/2004 The City of Huntington Beach considered an adjustment to the Base Figure based on past DBE goal attainments on 3 similar contracts to those contracting opportunities considered in the Overall Annual DBE Goal Setting process for this Fiscal Year. The City of Huntington Beach adjusted the Base Figure by deriving the City's average past participation percentage numbers for the last two years to obtain the Median Past Participation percentages (middle value of two). The Base Figure was adjusted by adding the Median Past Participation Percentage and the Step i Base Figure, than dividing the total number by two (2). The Adjusted Base Figure resulting from the application of this formula is as follows: Steg I Base Figure + Median Past Participation_ = ADJUSTED BASE FIGURE 2 4 CITY OF HUNTINGTON BEACH DBE Goal Analysis for FFY 2004105 Page 5 of 6 Past Participation = 7% + 7.5% + 8.4% Past Participation = 7% + 7.5% = 8.4% = 22.9% Median Past Participation % = 22.9 = 7.63%4 3 Step One Base Figure Adjustment = 6.39% + 7.63% = 14.02% Base Figure Adjusted = 14.02 = 7.01% 2 Adjusted Base Figure = 7%* * Rounded to the nearest whole number. B. City of Huntington Beach's Bidders List While a Bidders List would serve as quantifiable evidence of DBEs demonstrated interest and capacity; the City of Huntington Beach has not collected sufficient data to date to merit consideration for an adjustment. However, the City of Huntington Beach will continue to capture such information from all bidders at the time of bid/proposal submission and will utilize such information in future goal-setting analysis. C. Evidence from Disparity Studies The City of Huntington Beach is not aware of any current disparity studies within the City of Huntington Beach's jurisdiction for consideration in the goal setting analysis and/or adjustment. II. OVERALL ANNUAL GOAT. AND PROJECTION OF RACE-NEUTRAL AND RACE- CONCIOUS PARTICIPATION: The Overall Annual (IFFY 2004/2005) DBE Goal for the City of Huntington Beach's DOT-assisted contracts is 77o. The Overall Goal is expressed as a percentage of all DOT-assisted funds that the City will expend in 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 5 CITY OF HUNTINGTON BEACH DBE Goal Analysis for FFY 2004/05 Page 6 of 6 participation, which would be expected absent the effects of discrimination. The City of Huntington Beach intends to meet the Overall Annual DBE Participation Goal of 7%, by utilization of Race-Conscious method. The 7% Goal is anticipated to be accomplished through Race-Conscious measures, which includes establishing contract specific goals on contracts with contracting possibilities, to meet the City of Huntington Beach's overall annual DBE goal. Ill. 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 Huntington Beach's market area. The City of Huntington Beach will also publish a Public Notice in general circulation media announcing the City of Huntington Beach's proposed Overall Annual Goal for the FFY 2004/05 DOT-assisted contracts. Such Notice will inform the public that the proposed goal and its rationale is available for inspection at the City of Huntington Beach's Public Works Department during normal business hours for 30 days following the date of the Public Notice and that the City of Huntington 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 Huntington Beach's Overall Annual DBE Goal to Caltrans for final review and approval. 6 CITY OF HUNTINGTON BEACH ATTACHMENT 1 DBE OVERALL ANNUAL GOAL ANALYSIS FOR FFY 2004105 ESTABLISHMENT OF THE NUMERATOR: #OF ESTABLISHED DBE FIRMS BY WORK CATEGORY WITHIN THE CITY OF HUNTINGTON BEACH'S MARKET AREA (DEFINED AS THE COUNTY OF ORANGE)1 CONSTRUCTION Date: 10/29/04 1 1 1 1 1 1 ! 1 1 I 1 :•is•:'rY.....................:.:.:.:.i:•i:.....,... .} 1 1 1 1 1 1 e , 1 1 1 :'NACGS: ?':':�:=:�:�:�:�:�:':�:':��-:-:�-•��:':::-•::-:•:...;.;.:.:./�f.�_..:1.;.;.-:•.:.��.;:._.y._.....-.:-:�:�:•:•:•:�:-:�;:•:-:_:;:_: 9001902; 9Q6; 907; 9Q8; 910; 917E 920; 925; 9Z6; 927; 92$ Total Work Gate - �.'Ode.De#initran f.. 9. .. _.... .... .......... .... ....---...---- ---------------- --- ------r------F-3-�^^-,-----*------'------ -------------F-----y--- •------ ------ - 23731 D Highway, Street and Bridge Construc#ion 1 1 1 1 1 ' 238210 Electrical Contractors y� 1 1 1 1 1 1 1 1 1 1 4 1 2 1 1 1 3 12 -^ _______________....----------_____---_...ems.------------_----_---- ^--------- --......1__...._A__-_- -^----1-----_1-----J__-..__L_—...._L_�..-_J-_--- L----•'_L--_-- ---___ 238990 All_Other S ecial _Jrade Contractors 1 1 1 g 1 6 1 2 1 2 1 12 1 1 1 7 1 -- 1 9 1 26 98 324121 As halt-Pavia M ure and Block Manufacturin----------- - ---- --- -+------h-----�-----+-- --F-----�------+------1------�------+----_p--2- --�-- ^ , 1 1 1 1 1 , 1 1 1 1 1 p-----_-----a------- -- - - - _ -R----------- 1 1 1 I 1 , 1 1 1 1 1 __ --------- - ---- -- - -- --- --- -- ------_ ^----r -----r-_---�---_ _r-----r-----� ----� --- -_---4--- 4------r----_ -_ 324199 All Other Petroleum and Coal Products Manufacturing ____ 1 1 I 1 1 1 2__ _-'------ ----------------.'•.- --_ r------r------------ 1 1 1 1 1 - 1 ! 1 [ 1 1 1 334290 Other Communications Equipment ManufactuefqR i 1 1 1 1 1 423610 Electrical Apparatus and Equipment,Wiring Supplies and Related 1 1 1 1 1 1 1 1 1 1 1 1 + 2 1 1 1 1 1 l 1 1 1 1 1 4 8 Equ!ment Merchant Wholesalers_-_ 1 l 1 1 1 1 1 1 1 1 1 -^----- ---------------------------------- ----- 1----- L------t ----i------+----- ?------+----- --4 -15- 484110 General Freight Trucking, t ocal-------^------------------------------- ------ -----r....2- -- -- ......F-----�---....±-----F- --I------±------f ---- -- - 484220 Specialized Frei ht exce t Used Gvods Truckin , Lvcal ,-_ 1 --------- -f'---------------g---(-__-_ ---------------�-------- ------------------ ----- ---- _-_ 541370 Surve{(in and Mari En((77//exce t Geo hvvsEcal 5emces l 1 2 1 1 1 1 1 1 1 1 6 1 2 1 3 14 `- _....__..___F�__s2S_____p-_____P-l-____�____________..-_________.. _____..r,.____ ___-r__ __--F__..__ _ E561730 1-andsca in 1 1Services 1 1 1 ; 1 1 1 1 2 1 1 1 4 Total:1 1 1 1 1 19 1 14 1 4 1 2 1 24 1 2 1 20 1 45 1 17 1 58 207 NAICS: North American Industry Classification System 1: DATA SOURCE:Caltrans Bulletin Board System Directory of Certified DBE firms. CITY OF HUNTINGTON BEACH ATTACHMENT 2 DBE OVERALL ANNUAL GOAL ANALYSIS FOR FFY 2004/05 ESTABLISHMENT OF THE DENOMINATOR: #OF ALL ESTABLISHED FIRMS (DBEs and Non-DBEs) BY WORK CATEGORY WITHIN THE CITY OF HUNTINGTON BEACH'S MARKET AREA(DEFINED AS THE COUNTY OF ORANGE) 1 CONSTRUCTION Date: 10/29/04 ............... ..... ..... ........... .................. ......... ............ ... . ............... ........ .... .. ................ ........... ....... . ................ ...... ...................... ....... ........ ..I............ ........... . ......... .. ............ ............. . ........... .................... .................. .................................. . ........... ......... ....... .................... .................... ......................................... . ............ ....... .................. ................. ... I . . .............................. . .. .1................................................ • .....".......... . .............................I...................................... ....:........... ..........II ...... .. ....... .... ..... . .. .......... . . .............. .. .................... . 1 . . W . . --- 40ty. .............. ...t '4 . .. ... ....... .0......... .. ...............................*.......... ......... ......... .... ....... ......................... ......... .................. ...... ....... ................... .... ....... ...... ------------- ------------------------ --------------------------------------------------------------------------- --------- ------------------------ 23521 Paint and Wall Coveri9RLqatracTjFi 477 --------477 ----------------- --- ----------------- ------- 23571 Con&ete Contractors ---------------------------------------------- 261 261 23593 Excavation Contractors 139 139 -------------------------------- -------------- ------------------ --------- 32731 Cement Mfg--------------------.._-_ 1 237310 Highway, Street and Bridge Construction 67 67 ------------------------ __ 67 Electrical Contractors ---- 662 662 238990 All Other Specialty Trade Contractors____ ------------- -------------- ---------- -------348--------348 324121_____________.Asphalt.Paving_Mixture and Block Manufacturing_________--__ ..... 7 7 324199 All Other Petroleum and Coal Products Manufacturing______________ ---- 2- 2 334290 Other Communications Eqy!RM22t.KanqtacqL(iqg-------------------------------- ---------16 16 423610 Electrical Apparatus and Equipment, Wiring Supplies and Related Equipment 286 286 Merchant Wholesalers ---- ------------------- 484110 General ht Trucki Freight 117 117 ...........92LI-ocal - ------------------------------------------ 484220 ..§pecialized Freight(except Used Goods)Trucking, Local ------------------------------ ---------------------------------------- 541370 Survey ing�ng_Mapping� j(qj�2pL2 tqppy!�l al)jqry i ce s ---------------- 52 52 561730 Landscaping Services ----------692--------692 ---------------------------------------�=-------- Total: 3,238, 3,238 1. DATA SOURCE: Caltrans Bulletin Board System Directory of Certified DBE firms. ATTACHMENT #2 STATE OF CALIFORNIA—BUSINESS,TRANSPORTATION AND HOUSING AGENCY Arnold SchwarzeneagtL.�aoremor DEPARTMENT OF TRANSPORTATION DISTRICT 12 337 MICHELSON DRIVE SUITE 380 ZVINE,CA 92612-8894 Flex your power! PHONE (949) 756-7805 Be energy efficientl FAX (949) 724-2592 TW Eric Charlonne DBE Liaison Officer November 24, 2004 City of Huntington Beach 2000 Main Street Huntington Beach, CA 92866 Subject: Disadvantaged Business Enterprise(DBE)Program Submittal Fiscal Year 2004/05 Dear W Charlonne: 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 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 California' RCA ROUTING SHEET INITIATING DEPARTMENT: Public Works SUBJECT: Adopt Annual DBE Goals for 2004/05 COUNCIL MEETING DATE: February 7, 2005 RCA ATTACHMENTS STATUS Ordinance (wlexhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (wlexhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Attached Contract/Agreement (w/exhibits if applicable} ❑ Not Applicable (Signed in full by the City Attomey) Attached ❑ Subleases, Third Party Agreements, etc. Not Applicable (Approved as to form by City Attorney) Certificates of Insurance A roved b the City Attorme Attached ❑ ( pp Y Y Y) Not Applicable Attached ❑ Fiscal Impact Statement (Unbudget, over $5,000) Not Applicable BondsIf a licable Attached ( applicable) Not Applicable � Attached ❑ Staff Report (If applicable) Not Applicable Commission, Board or Committee Report If applicable) Attached ❑ p ( pp ) Not Applicable Approval and/or Denial Attached ElFindin s/Conditions for A pp Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDWr Administrative Staff ( } ( )YO- Assistant City Administrator (Initial) ( } ) City Administrator (Initial) ( } ( ) City Clerk ( } EXPLANATION FOR RETURN OF ITEM: Only)(Below Space For City Clerk's Use RCA Author: L. Taite