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HomeMy WebLinkAboutMINUTES - 08082006 - C.10 \ A �;nt)P TO: BOARD OF SUPERVISORS Co FROM: MAURICE M. SHIU, PUBLIC WORKS DIRECTOR na Costa _ z o� DATE: August 8, 2006 `�s __g:= F County '9 COVN'� SUBJECT: ADOPT Annual Anticipated DBE Participation Level (AADPL) for U.S. Department of Transportation Federal Aviation Administration [FAA] Funded Projects, Countywide. SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDED ACTION: ACKNOWLEDGE receipt of"Annual Anticipated DBE Participation Level(AADPL)and Methodology Report for FAA Funded Contracts,"dated July 20016, approved by Maurice M. Shiu, Public Works Director. Based on the report, ADOPT an Annual Anticipated DBE Participation Level of 6.5% of the Federal financial assistance in FAA assisted contracts administered by the County in federal fiscal year(FFY) 2006/2007. Continued on Attachment: ❑ SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR ❑ RECOMMENDATION OFO RD COMMITTEE [PROVE ❑ OTHER SIGNATURE(S): ACTION OF BO ON 6 APPROVED AS I COMMEN D Lul,� OTHER ❑ VO OF SUPERVISORS UNANIMOUS(ABSENTS I hereby certify that this is a true and correct copy of an action taken AYES: NOES- and entered on the minutes of the Board of Supervisors on the date ABSENT- ABSTAIN: shown. MLH:gh n 6 n, G:\Design\BOARD ORDERS\2006\DBE Prgm&Goal FAA FFY 06-07(8-1-ATTESTED: `7- 0Q _ �/°� 4 06).doc JOHN""'E&, C16k of the Board Supervisors and County Orig.Div:Public Works(Design Division) Administrator Contact: M.Hollingsworth(313-2231) cc: E.Kuevor.CAO County Counsel FAA,via PWD By �� Deputy SUBJECT: ADOPT Annual Anticipated BE Participation Level (AADPL) for U.S. Department of Transportation Federal Aviation Administration [FAA] Funded Projects, Countywide. DATE: August 8, 2006 PAGE: 2 of 2 FISCAL IMPACT: There is no impact on the General Fund. Adoption of an Annual Anticipated DBE Participation Level(AADPL)in compliance with Federal Regulations are'a pre-requisite to maintain eligibility for Federal funding. REASONS FOR RECOMMENDATIONS AND BACKGROUND: Federal regulations require notification of the proposed Annual Anticipated DBE Participation Level(AADPL)to minority and women groups, trade organizations, and the general public. Notices of the proposed Annual Anticipated DBE Participation Level(AADPL)and Methodology Reports' availability for comment were placed in the Oakland Tribune, Contra Costa Times and the Small Business Exchange. Notices were also sent directly to minority and women groups,trade organizations,and special interest group representatives. The Annual Anticipated DBE Participation Level and Methodology Report was available for review on the Internet,as well as in hard copy. No comments were received during the requisite 45-day public comment period. CONSEQUENCES OF NEGATIVE ACTION: If the Board does not take the recommended actions,FAA will stop authorizing Federal funds earmarked for County Airport improvement projects. 1 COUNTY OF CONTRA COSTA ANNUAL ANTICIPATED DBE PARTICIPATION LEVEL (AADPL) AND METHODOLOGIY REPORT FOR FAA FUNDED CONTRACTS JULY 2006 1. FAA-ASSISTED CONTRACTING PROGRAM FOR IFFY 2006/07 I The following represents County of Contra Costa's (County) projected FAA-assisted contracts and expenditures by work category for FY 2006/07: Work Item # Work Category Estimated Federal (NAICS CODE#) Dollars Consulting Services: (See Attach.1) 1 Engineering/Const. $157,750 Man I gement/Soils Consultant (NAICS# 541330) 2 Right of Way Consultant $0 (NAICS # 531390) 3 Environmental Consultant $0 (NAICS # 541620) Construction: (See Attach. 2) 4 Contractors (NAICS # $221,678 237310,237990) general Contractors (NAICS # $364,945 5 238210) electrical Contractors (NAICS# $254,123 6 2389 IO) fencing 7 Trucking (NAICS #484220) $44,250 TOTAL ' $1,042,746 (See Attachments 1 and 2 for details upon which the above summary is based.) 2. GOAL— METHODOLOGY Step 1: Determination of a Base Figure (49 CFR Section 26.45 (c)) The County utilized the following methodology in establishing the County's base figure of relative DBE availability for FFY 2006/07; • For the numerator — Certified DBE firms under the California Unified Certification Program (CUCP) as listed on the Caltrans-maintained CUCP DBE directory website http://www.dot.ca.gov/hq/bep/dbeguery.htm with NAICS'` Codes that include the types of work anticipated and who reside in Contra Costa County and surrounding counties that would bid work in Contra Costa County • For the denominator — All firms on Census Bureau website http://www.census.qov/epcd/cap/view/cbpview.htm with NAICS Codes that includes the types of work anticipated who reside in Contra Costa County and surrounding counties that would bid work in Contra Costa County Page 1 of 5 I *NAICS is the North American Industry Classification System and has replaced the U.S. Standard Industrial Classification (SIC) system. This classification system was developed jointly by the U.S., Canada, and Mexico to provide new comparability in statistics about business activity across North America The County calculated the Base Figure for ready, willing, and able certified DBEs as follows: 1. DBE % by Work Category # of DBEs on Caltrans website by applicable NAICS of all Firms on Census Bureau website by applicable NAICS] 2, DBE $ by applicable NAICS DBE % by applicable NAICS X $ by applicable NAICS I 3. Total DBE $ = Sum of DBE $ by applicable NAICS I 4. Overall Base Figure = Total DBE $/Total Contract $ Using the above described calculations, the overall base is calculated to be 65% using this formula. The table below tabulates the 6.5% Base Figure calculation. Calculation of Base Figure: WORK WORK EST. # OF DBEs TOTAL # DBE % BY TOTAL ITEM # CATEGORY FED. BY WORK OF FIRMS WORK DBE $ DOLLARS CAT. BY WORK CAT. Sum(Col. (Col. C) (Col. E) CAT. Col. D=Col. D x Col. C) (Col. F) E/Col. F Consulting Services: 1 Engineering/Const. $157,750 378 2241 16.9% $26,660 Management/Soils 2 Right of Way $0 2 564 0.4% $0 3 Environmental $0 37 346 10.7% $0 Construction: 4 Contractors - $221,678 48 313 15.3% $33,917 general 5 Contractors - $364,945 21 1667 1.3% $4,744 electrical 6 Contractors - $254,123 5 688 0.7% $1,779 fencing 7 Trucking $44,250 14 589 2.4% $1,062 Total Fed.: $1,042,746 Total DBE : $68,162 TOTAL BASE FIGURE: [($68,1621$1,042,746)* 100%=] 6.5% Step 2: Adjustment of Base Figure (49 CFR Section 26.45 (d)) After completing Step 1 of th, process, we then examined all of the available evidence in our jurisdiction to determine what adjustment, if any, was needed to the Base Figure. As Page 2 of 5 I explained below, this process resulted in no adjustment in the Base Figure for an AADPL of 6.5%. Available evidence considered by us included the following: (1) Current Capacity of DBEs Measured by Actual Utilization: One potential indicator of the availability and capacity to perform of DBEs is the volume of work actually performed by DBEs on the County's FAA-funded projects in recent years. The figures for Fiscal Years 2001/02, 2002/03, 2003/04, 2004/05 and year-to-date 2005/06 based on total dollars (both local and federal $) paid to DBEs are set forth in the following itables: I FISCAL YEAR 2001102 Work Category $ Paid to Contractors( $ Paid to DBE Firms % Paid to Consultants DBE Firms Consulting Services $,141,002 $89,496 63.5% Construction $793,847 $107,093 13.5% FISCALYEAR 2002103 Work Category $ Paid to Contractors/ $ Paid to DBE Firms % Paid to Consultants DBE Firms Consulting Services $160,024 $10,083 6.3% Construction J NA NA NA FISCAL YEAR 2003/04 Work Category $ Paid to Contractors/ $ Paid to DBE Firms % Paid to Consultants DBE Firms Consulting Services $341,309 $199,009 58.3% Construction $7,16,000 $93,223 13.0% FISCAL YEAR 2004/05 Work Category $ Paid to Contractors/ $ Paid to DBE Firms % Paid to Consultants DBE Firms Consulting Services $203,274 $48,243 23.7% Construction ,NA NA NA FISCAL YEAR 2005/06(year-to- date) Work Category $ Paid to'Contractorsl $ Paid to DBE Firms % Paid to Consultants DBE Firms Consulting Services $196,703 $14,163 7.2% Construction NA NA NA Totals $2,552,159 $5619310 22% Avg. Page 3 of 5 Since Fiscal Year 2001/02, the average DBE utilization (measured by the percentage of dollars paid to DBEs) was 22% . While DBE consultants have performed a large percentage of our professional services needs (primarily in construction management services), the DBE contractors, suppliers and truckers have not performed the amount of work in proportion to their representation. Prime contractors for the fifth consecutive year have been demonstrating good faith efforts to satisfy our DBE contract requirements. In reviewing the prime contractors documentation there does not appear to be a lack of DBEs to solicit subbids and quotes for typical airport work. The lower anticipated participation level for FFY 06/07 is due to the specialized work planned for the upcoming year and a lack of qualified DBEs to perform such work. In future years, with more typical airport projects, the participation level should be higher and more representative of the last five years. Therefore, there is no compelling reason to adjust the AADPL. (2) Disparity Studies: Our research found only one current disparity study in the greater San Francisco Bay area. We reviewed this disparity study prepared for Alameda County issued in October 2004 by Mason Tillman Associates. The 369 page report covered a wide range of business types and small local emerging businesses. They did not discuss in detail nor analyze DBEs as a group. Because of the varying standard used, it is difficult to extrapolate the results to interpret for our needs. Step 3: Overall AADPL (49 CFR Section 26.45(e)) In consideration of all the evidence described above, as well as our knowledge of our contracting market, we have determined that the appropriate overall Annual Anticipated DBE Participation Level (AADPL)for IAA-assisted County projects in fiscal year 2006/07 is 6.5%. FINAL SUMMARY % DBE Project Items: Fed. $ Amount Fed. $ DBE(,weighted avg.)(1) I. Consulting Services $157,750 $26,660 16.9% II. Construction $884,996 $41,502 4.7% 6.5% Total $1,042,746 $68,162 (weighted avg.) I. Consulting Services Item Description Fed. $ Amount Fed. $ DBE % DBE Engineering $157,750 $26,660 16.9% Environmental $0 $0 10.7% Right of Way $0 $0 0.4% Total $157,750 $26,660 16.9% Page 4 of 5 II. Construction Contracts Item Description Fed. $ Amount Fed. $ DBE % DBE Contractor general $221,678 $33,917 15.3% Contractor electrical 1 $364,945 $4,744 1.3% Contractor fencing $254,123 $1,779 0.7% Trucking $44,250 $1,062 2.4% Total $884,996 $41,502 4.7% (1) Percentage of available DBEs is based on NAICS codes and is weighted relative to the total federal dollars anticipated to be Ispent. 3. PUBLIC PARTICIPATION IN SETTING FINAL OVERALL ANNUAL ANTICIPATED DBE PARTICIPATION LEVEL In conformance with Public Participation Regulatory Requirements of 49 CFR Part 26.45 and Caltrans Local Assistance Procedures Manual (LAPM)-Chapter 9, minority, women, small business enterprises, local business chambers, and community organizations will be directly notified of the proposed goal, and the availability of this report for their review and comment prior to final adoption by the County Board of Supervisors. a i e M. Shiu Pub ' Works Director MS:MLH:GH: G:\Design\CT DBE Forms_Exhibits\FFY 06-07\FAA06-07\Draft AADPL FAA Methodologyffy06-07.doc Attachments C: E. Kuevor, DBELO R.Andrade, FAA Page 5 of 5 I CONSULTANTS Attachment 1 PARTICIPATION FFY 2006/07 FAA PROJECTS ENGINEERING/CONST. MANAGEMENTISOILS RIGHT OF WAY EVIRON. PROJECT CONSULTANT CONSULTANT CONSULTANT TOTALS AIP 2 Security pgra e ` $80,250 $80,250 AIP 17(Taxiway Elec.&Pavement Design) $77,500 $0 $0 $77,500 TOTAL ' $157,750 $0 $0 $157,750 NAICS DBE%(see report pg.2) 16.95/o 0.400% 10.7% NA Est.DBE$Participation-Consultant Services $26,660 $0 $0 $26,660 Final Est.Total DBE%Participation (DBE participation/Total)`100%= %DBE ($26,6601$157,750)'100%= 16,90% [FHWA 04-05](06-07)DBEreportFAAatt1 Contractor/Truckers Participation Attachment 2 FFY 2006-07 FAA Projects PROJECT Contractors Trucking Totals General Electrical Fencing AIP 12(Security Upgrade) $254,123 $254,123 $26,750 $534,995 i AIP 17(Taxiway Elec.&Pavement Design) 1$221,678 $110,822 $17,500 $350,000 Total 1$221,678 $364,945 $254,123 $44,250 $884,995 1 NAICS DBE%(see report pg.2) 1 15.3% 1.3% 0.7% 2.4% Est.DBE Participation in Construction $33,917 $4,744 $1,779 $1,062 $41,502 Final Est.Total DBE%Participation (DBE participation/Total)' 100%= %DBE ($41,502/$884,995)'100%= 4.69% (06-07)DBEreportFAAatt2/FHWA Summary Sheet 1 . 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