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Home My WebLink About9/5/2001 - STAFF REPORTS (3) DATE: September 5, 2001 TO: City Council FROM: Director of Public Works/City Engineer FEDERAL FISCALYEAR 2001/2002 DISADVANTAGED BUSINESS ENTERPRISE(DBE) PROGRAM FOR FHWA FUNDED PROJECTS RECOMMENDATION: That the City Council approve the City of Palm Springs' Disadvantaged Business Enterprise Program for FHWA funded projects in Federal Fiscal Year 2001/2002. SUMMARY: Federal regulations regarding Disadvantaged Business Enterprises(DBE's)require that agencies receiving Federal Highway Administration (FHWA) funding update their DBE Programs on an annual basis, corresponding with each Federal Fiscal Year. BACKGROUND: The California Department of Transportation (Caltrans) has been delegated oversight responsibility for DBE implementation throughout the state for all public works projects receiving FHWA funds. For the upcoming Federal Fiscal Year 2001/2002, beginning October 1, 2001, Caltrans required that local agencies submit for review by June 15, 2001, proposed changes to their DBE Program and their recalculated DBE Goal. Staff reviewed upcoming federal projects and the availability of DBE firms within the southern California area, and determined that no changes have occurred since adoption of the previous DBE Goal, and recommended continuing with a DBE Annual Overall Goal of 16%for Federal Fiscal Year 2001/2002. Caltrans reviewed and concurred with staff's recommendation. Pursuant to the DBE Federal regulations, a Public Notice was published in the Desert Sun on June 29, 2001, providing for a 30-day review and concurrent 45-day public comment period. No public comments were received, and following receipt of proof of publication, Caltrans officially approved the City's DBE Program for Federal Fiscal Year 2001/2002. Although Caltrans is the designated agency by FHWA giving final approval to all local agency annual DBE Programs, Council's concurring approval of the City's DBE Program at this time registers the City's DBE Program at the local level. The DBE Program is available for review in the Public Works and Engineering Department. �Gh DAVID J. BARAKIAN Director of Public Works/City Engineer APPRO— City Manager ATTACHMENTS: 1. Minute Order PALM, _ ti 0Al � � City of Palm Springs Engineering Department 3200 T hgwa Canyon Way • Palm Spnng,,Cdhfamia 9776, V 1 FO R� TEL (760)323-8253 • FAX(760)322-8360 • TDD F60,864-9527 ANNUAL OVERALL GOAL INFORMATION TO: CALTRANS DISTRICT 08 District Local Assistance Engineer 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 Local Assistance Procedures Manual. The City of Palm Springs submits our annual overall goal information (and any needed updates of our DBE program) for your review and comment. We propose an annual overall DBE goal of 16% for the Federal Fiscal Year 2001/2002, beginning on October 1, 2001 and ending on September 30, 2002. Methodology I. DOT-ASSISTED CONTRACTING PROGRAM FOR IFFY 2001/02 The following represents the City of Palm Springs' projected FHWA funded contracts and expenditures by work category and corresponding NACIS Code for FFY 2001/02: STPL 5282 (013); City Project 99-14 — Gene Autry Trail Sidewalk and Bikeway Project TEA Grant, 88.53% Federal Participation Type of Work: Concrete Construction — SIC 1611, NAICS 2357 [Preliminary Engineering previously authorized and obligated — not included in total] Construction/Construction Engineering to be authorized Construction Estimate: $300,000; Federal —$266,000 CML 6164 (010); City Project 99-21 — 1999/2000 PM-10 Paving Projects CMAQ/TEA 21 PM10 Project, 88.53% Federal Participation Type of Work: Highway & Street Construction — SIC 1611, NAICS 23411 [Preliminary Engineering previously authorized and obligated — not included in total] Construction/Construction Engineering to be authorized Construction Estimate: $300,000; Federal — $266,000 STPLER 5282 (014); City Project 2000-01 —Gene Autry Trail/Ramon Road Median Landscaping TEA Grant; 79% Federal Participation Type of Work: Landscaping — SIC 0781, NAICS 44422 and 56173 [Preliminary Engineering previously authorized and obligated — not included in total] Construction/Construction Engineering to be authorized Construction Estimate: $550,000; Federal — $435,000 Post Office Box 2743 0 Palm Springs, California 92263-2743 ,STPLG 5282 (010); City Project 2000-05 —Tahquitz Canyon Way Traffic Signal Interconnect STP Grant; 100% Federal Participation Type of Work: Electrical — SIC 1611, NAICS 2353 [Preliminary Engineering previously authorized and obligated — not included in total] Construction/Construction Engineering to be authorized Construction Estimate: $600,000; Federal — $600,000 STPL 5282 (016); City Project 2000-10 — Indian Canyon Drive Widening, south of Garnet STP Grant; 88.53% Federal Participation Type of work: Highway & Street Construction Preliminary Engineering, Construction/Construction Engineering to be authorized Engineering Estimate: $20,000; Federal — $18,000 Construction Estimate: $180,000; Federal —$160,000 Summarized in the following Table: Estimated % of Federal Work Category SIC Category NAICS Category Federal Dollar Funding by Value Work Category Highway & Street 1611 23411 $426,000.00 24.41% Construction Electrical 1611 2353 $600,000.00 34.38% Concrete 1611 2357 $266,000.00 15.24% Landscaping 0781 44422/56173 $435,000.00 24.93% Civil Engineering Consulting 8711 54133 $18,000.00 1.04% Totals>` ; Kk $1,745,000.00 100.00% U. GOAL METHODOLOGY Step 1: Determination of a Base Figure To establish the City of Palm Springs' Base Figure of the relative availability of DBE's in relation to all comparable firms available for the City's FFY 2001/02 DOT-assisted contracting program, the City has elected to utilize the Caltrans DBE Directory of certified firms (filtered to represent only DBE firms within the City's relevant market area of Los Angeles, Orange, San Bernardino, Riverside, Imperial and San Diego Counties)forcalculating the numerator and the County Census Bureau Data within the same geographical market area to calculate the denominator, as follows: For the numerator: Caltrans' DBE Directory For the denominator: Census Bureau's Business Pattern Database (CBP) Or, Number of Ready, Willinq and Able DBE's Number of All Ready, Willing and Able Firms Numerator (Caltrans DBE's within Market Area) Note: Information was obtained using the Caltrans DBE Calcert file, extracting DBE firms by Work Category Code (WCC), and filtering for firms located within the market area. For Highway & Street Construction; Work Type NAICS 23411 (WCC 2201): 17 DBE's For Electrical; Work Type NAICS 23531 (WCC 8602): 19 DBE's For Concrete; Work Type NAICS 23571 (WCC 4010): 25 DBE's For Landscaping; Work Type NAICS 56173 & 44422 (WCC 0620): 8 DBE's For Civil Engineering Consulting; Work Type NAICS 54133 (WCC 8720): 82 DBE's Denominator (Firms within Market Area) Note: Information was obtained by extracting the U.S. Census Bureau's Business Pattern Database for firms by NAICS work type for each County within the market area, summarized in the following Table: NAICS Work Type Code County 23411 23531 23571 44422 54133 56173 Riverside 60 330 181 60 168 393 Los Angeles 118 1520 359 180 1464 958 San 51 303 136 38 185 210 .Bernardino Orange 74 681 236 71 1009 658 San Diego 98 557 245 83 849 728 Imperial 3 17 8 19 10 29 Totals 404 3408 1165 451 3685 2976 Base Figure = (0.2441) (DBE's in NAICS 23411) _ (0.2441)(17) = 0.1037 CBP's in NAICS 23411 (404) + (0.3438)(DBE's in NAICS 2353) + (0.3438)(19) = 0.0019 CBP's in NAICS 2353 (3408) + (0.1524)(DBE's in NAICS 2357) + (0.1524)(25) = 0.0033 CBP's in NAICS 2357 (1165) + (0.2493)(DBE's in NAICS 44422) + (0.2493)(8) = 0.0006 CBP's in NAICS 44422 (3427) + (0.0104)(DBE's in NAICS 54133) + (0.0104)(82) = 0.0002 CBP's in NAICS 54133 (3685) Base Figure = (0.1037) + (0.0019) + (0.0033) + (0.0006) + (0.0002) = 0.1097 = 11% Step 2: Adjusting the Base Figure Upon establishing the Base Figure, the City reviewed and assessed other known relevant evidence to determine what additional adjustments, if any,were needed to narrowly tailor the Base Figure to the City's marketplace. Factors considered in determining the City's DBE participation that can be expected, absent discrimination, included the following: A. Current Capacity of DBE's Measured by Actual Attainments The volume of work that DBE's performed in the City's DOT-assisted contracting program for Fiscal Years 1998/1999 and 1999/2000 based on actual DBE utilization paid report summaries, summarized in the following Table: 3 ;,,• „ Project STPLE 5282 STPLG 5282 STPLZ 5282 STPLG 5282 STPLG 5282 Fiscal Year (004) (006) (007) (008) (009) Average DBE City Project City Project City Project City Project City Project Participation 93-49/93-50 95-38 96-43 95-27 96-29 m +tea. 1998/99 %�E�� 10.01% i'R Er 12.12% 8.92% 10.35% .: 1999/00 22.00% '.+ ,eq s 17.63% No; 19.82% For Fiscal Year 1998/99, the following represented the City's FHWA funded contracts and expenditures by Work category and and corresponding NACIS Code: STPLG 5282 (006); City Project 95-38 — Mid Valley Parkway Phase 1 Landscaping TEA Grant, 88.53% Federal Participation Type of Work: Landscaping —SIC 0781, NAICS 44422 and 56173 Construction Total: $249,633.00; Federal — $221,000.00 STPLG 5282 (008); City Project 95-27 — Gene Autry Trail /Tachevah Drive Traffic Signal STP Grant, 100.00% Federal Participation Type of Work: Electrical —SIC 1611. NAICS 2353 Construction Total: $125,933.29; Federal —$125,933.29 STPLG 5282 (009); City Project 96-29 — Sunrise Way/ Racquet Club Drive Traffic Signal STP Grant; 100.00% Federal Participation Type of work: Electrical Construction Total: $137,000.00; Federal — $137,000.00 Summarized in the following Table: Estimated DBE Goal Work Category SIC Category NAICS Category Federal Dollar Attainment Value Electrical 1611 2353 $262,933.29 10.52%* Landscaping 0781 44422156173 $221,000.00 10.01% Average � '` y 10.35% *Average DBE Goal Attainment for both Federal Projects. For Fiscal Year 1999/00, the following represented the City's FHWA funded contracts and expenditures by Work category and and corresponding NACIS Code: STPLE 5282 (004); City Project 93-49 & 93-50— Heritage Trail Sidewalk/Bikeway Project TEA Grant; 82.25% & 88.53% Federal Participation Type of Work: Concrete Construction — SIC 1611, NAICS 2357 Construction Total: $873,781.00; Federal — $733,756.00 STPLZ 5282 (007); City Project 96-43 — Indian Avenue Overhead Seismic Retrofit STP Grant; 100.00% Federal Participation Type of work: Highway & Street Construction Construction Total: $212,898.00; Federal — $212,898.00 Summarized in the following Table: Estimated DBE Goal Work Category SIC Category NAICS Category Federal Dollar Attainment Value Highway & Street 1611 23411 $212,898.00 17.63% Construction Concrete 1611 2357 $733,756.00 22.00% ,tttE h Average tr <«.... k 'F , j �3 19.82% B Resultant Goal Adjustment The average DBE Goal attained through the two-year Fiscal Period 1998 -2000 was 14.14%, an increase of 41.4% over the stated 10.00% annual goal. This factor resulted in an upward adjustment of the Base Figure from 11%to 16%for DBE participation in the City of Palm Springs' DOT-assisted contracts projected to be expended in Fiscal Year 2001/02. III. UTILIZATION OF RACE-NEUTRAL AND RACE-CONSCIOUS METHODS The City maintained a DBE Program Overall (Race-Conscious) Goal of 10.00% for Fiscal Years 1998/99 and 1999/00, showing that on average, the City was successful in obtaining its Overall (Race-Conscious) Goal and a Race-Neutral Goal of 0.35%for Fiscal Year 1998/99 and 9.82%for Fiscal Year 1999/00, or an average Race-Neutral Goal of 5.09% for the two-year Fiscal Period 1998-2000. Of the overall annual 16% goal for DBE participation, the City of Palm Springs expects meeting 5% of the goal utilizing race-neutral methods. DBE Proqram Updates Not Applicable (None). QQ / DBE Liaison Officer Date MINUTE ORDER NO. 6914 APPROVING THE CITY OF PALM SPRINGS DISADVANTAGED BUSINESS ENTERPRISE PROGRAM FOR FHWA FUNDED PROJECTS IN FEDERAL FISCAL YEAR 2001/2002. ------------------ I HEREBY CERTIFY that this Minute Order, approving the City of Palm Springs Disadvantaged Business Enterprise Program for FHWA funded projects in Federal Fiscal Year 2001/2002, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 51h day of September, 2001. PATRICIA A. SANDERS City Clerk F-