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HomeMy WebLinkAboutMINUTES - 04042006 - C.1 i TO: BOARD OF SUPERVISORS Contra FROM: MAURICE M. SHIU,PUBLIC WORKS DIRECTOR g, - _, �s Costa �1 C DATE: April 4, 2006 °o;.;:- •�' County A OUNT SUBJECT: ADOPT Goals for U.S. Department of Transportation Federal Highway Administration [FHWA] Funded Projects, Countywide. SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDED ACTION: ACKNOWLEDGE receipt of"Annual DBE Goal and Methodology Report for FHWA Funded Contracts,"dated March 2006, approved by Maurice M. Shiu, Public Works Director. Based on the report, ADOPT an overall DBE goal of 9.6% of the Federal financial assistance in FHWA assisted contracts administered by the County in federal fiscal year(FFY) 2005/2006. i Continued on Attachment: (� SIGNATURE: [q4E OMMENDATION OF COUNTY ADMINISTRATOR ❑ RECOMMENDATION OF O D COMMITTEE PPROVE ❑ OTHER SIGNATURE(S): p ACTION OF BO D N fID 1 m APPROVED AS OM �/M NDED [j' OTHER ❑ VOTE OF SUPERVISORS ✓ UNANIMOUS(ABSENT I hereby certify that this is a true and correct copy of an action taken I AYES: NOES: and entered on the minutes of the Board of Supervisors on the date ABSENT: ABSTAIN: shown. MGrpD gh G:\GrpData\Design\BOARD ORDERS\2006\ ATTESTED: Co DBE Prgm&Goal(4-4-06).doc JOHN CULLEN,Clerk of the Board of Supervisors and County Orig.Div:Public Works(Design Division) Administrator Contact: M.Hollingsworth(313-2231) M;; E.Kuevor,CAO County Counsel Caltrans,via PWD By o , Deputy . I SUBJECT: ADOPT Goals for U.S. Department of Transportation Federal Highway Administration [FHWA] Funded Projects, Countywide. DATE: April 4, 2006 PAGE: 2 of 2 FISCAL IMPACT: There is no impact on the General Fund. Adoption of annual DBE goal 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 DBE goal to minority and women groups, trade organizations, and the general public. Notices of the proposed Annual DBE Goal 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 DBE Goal 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,FHWA(through Caltrans)will stop authorizing Federal funds earmarked for County road and bridge improvement projects. i • I COUNTY OF CONTRA COSTA ANNUAL DBE GOAL AND METHODOLOGY REPORT FOR FHWA FUNDED CONTRACTS March 2006 1. FHWA-ASSISTED CONTRACTING PROGRAM FOR FFY 2005/06 I The following represents County of Contra Costa's (County) projected FHWA-assisted (USDOT funded) contracts and expenditures by work category for FY 2005/06: Work Item # Work Category Estimated Federal (NAICS CODE #) Dollars Consulting Services: (See Attach.1) 1 Engineering/Const. $116,000 Management/Soils Consultant (NAICS # 541330) 2 Right of Way Consultant $80,000 (NAICS # 531390) 3 Environmental Consultant $56,000 (NAICS # 541620) Construction: (See Attach. 2) 4 Contractors (NAICS # $475,000 237310,237990) 5 Trucking (NAICS #484220) $25,000 TOTAL $752,000 (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 2005/06; i • 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/dbe query.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.gov/epcd/cqP/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 "NAICS is the North American Industry Classification System and has replaced the U.S. Standard Industrial Classification (SIC) system. This classification system was developed Page 1 of 5 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 NAICd 2. DBE $ by applicable NAICS = DBE % by applicable NAICS X $ by applicable NAICS 3. Total DBE $ = Sum of DBE $ by applicable NAICS 4. Overall Base Figure = Total DBE $/Total Contract $ Using the above described calculations, the overall base figure is calculated to be 9.6% using this formula. The table below tabulates the 9.6% 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. $116,000 399 2382 16.8% $19,488 Management/Soils 2 Right of Way $80,000 2 566 0.35% $280 3 Environmental $56,000 37 346 10.7% $5,992 Construction: 4 Contractors $475,000 38 403 9.4% $44,650 5 Trucking2$ 5,000 40 589 6.8% $1,700 Total Fed.: $752,000 Total DBE : $72,110 TOTAL BASE FIGURE: [($72,110/$752,000) * 100%=] 9.6% I Step 2: Adjustment of Base Figure (49 CFR Section 26.45 (d)) After completing Step 1 of the goal-setting 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 explained below, this process resulted in no adjustment in the Base Figure for a proposed DBE goal of 9.6%. 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 FHWA-funded projects in recent years. The figures for Fiscal Years 2000/01, 2001/02, 2002/03, 2003/04 and year-to-date 2004/05 based on total dollars (both local and federal $) paid to DBEs are set forth in the following tables: Page 2 of 5 FISCAL YEAR 2000/01 Work Category $ Paid to Contractors/ $ Paid to DBE Firms % Paid to Consultants DBE Firms Consulting Services $334,979 $80,058 23.9% Construction $3,405,845 $163,620 4.8 % FISCALYEAR 2001/02 Work Category $ Paid to Contractors/ $ Paid to DBE Firms % Paid to Consultants DBE Firms Consulting Services $305,340 $127,664 41.8% Construction $108,554 $6188 5.7% FISCAL YEAR 2002/03 Work Category $ Paid to Contractors/ $ Paid to DBE Firms % Paid to I Consultants DBE Firms Consulting Services $210,029 $83,789 39.9% Construction $1,168,000 $6188 0.5% FISCAL YEAR 2003/04 Work Category $ Paid to Contractors/ $ Paid to DBE Firms % Paid to Consultants DBE Firms Consulting Services $77,900 $11,939 15.3% Construction $486,074 $9,473 2.0% FISCAL YEAR 2004/05(year-to- date) Work Category $ Paid to Contractors/ $ Paid to DBE Firms % Paid to Consultants DBE Firms Consulting Services $154,676 $80,000 51.7% Construction $0 $0 0% Totals $6,251,397 $568,919 9.1% Avg. Since Fiscal Year 2000/01, the average DBE utilization (measured by the percentage of dollars paid to DBEs) was 9.1%. 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. The DBEs either submit higher bids or chose not to bid. Based on this historical information, there is no compelling reason to reason to adjust the goal. Page 3 of 5 (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 to identify minority and women owned businesses it is impossible to extrapolate the results for use in making any adjustments to our base figure. Therefore, no adjustment to the Base Figure was made on that basis. Step 3: Overall DBE Goal (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 DBE goal for FHWA- assisted County projects in fiscal year 2005/06 is 9.6%. FINAL SUMMARY Proiect Items: Fed. $ Amount Fed. $ DBE % DBE I. Consulting Services $252,000 $25,760 10.2% II. Construction $500,000 $46,350 9.3% Total $752,000 $72,110 9.6% I. Consulting Services Item Description Fed. $ Amount Fed. $ DBE % DBE Engineering $116,000 $19,488 16.8% Environmental $56,000 $5,992 10.7% Right of Way $80,000 280 0.35% Total $252,000 $25,760 10.2% II. Construction Contracts Item Description Fed. $ Amount Fed. $ DBE % DBE Contractor $475,000 $44,650 9.4% Trucking $25,000 $1,700 6.8% Total $500,000 $46,350 9.3% 3. UTILIZATION OF RACE-NEUTRAL AND RACE-CONSCIOUS METHODS The County projects meeting a portion of the goal, 2%, by utilizing race-neutral methods, including making efforts to assure that bidding and contract requirements facilitate participation Page 4 of 5 i by DBEs and other small businesses; unbundling large contracts to make them more accessible to small businesses; encouraging prime contractors to subcontract portions of the work that they might otherwise perform themselves; and providing technical assistance, and other support services to facilitate consideration of DBEs and other small businesses. It is anticipated that the remaining portion of the goal, 7.6%, will be accomplished through race-conscious measures, which includes establishing specific goals on contracts with subcontracting possibilities, when needed, to meet the County's overall annual DBE goal. 4. PUBLIC PARTICIPATION IN SETTING FINAL OVERALL ANNUAL DBE GOALS In conformance with Public Participation Regulatory Requirements of 49 CFR Part 26.45 and Caltrans Local Assistance Procedures Manual (LAPM)-Chapter 9, minority, women, 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. I I gri M. Shiu Publi&Works Director i MS:MLH:GH: G:\GrpData\Design\CT DBE Forms_Exhibits\FFY05-06\FHWA FFY05-06\Final FHWA DBE Goals&Methodologyffy05-06.doc Attachments C: E. Kuevor,DBELO A. Duffy,Caltrans i I i i i I i i i I i Page 5 of 5 i Contractor/Truckers Participation Attachment FFY 2005-06 FHWA Projects i PROJECT Contractors Trucking Totals $25,000 Iron horse Trail O.C. $475,000 ($4,655,000) ($245,000) $500,000 ($4,900,000) i NAICS DBE % (see report pg.2) 9.4% 6.8% NA Est. DBE Participation in Construction $44,650 ($437,570) $1700 ($16,660) $46,350 ($454,230) Final Est.Total DBE% Participation (DBE participation/Total) * 100%= %DBE ($46,350/$500,000) *100%= 9.30% * Amounts shown are Federal $ with total project $, federal $ and local $ match, shown in parenthesis. I i I I I I l (05-06)D BE repo rtFHWAatt2/FHWA Summary $heet i CONSULTANTS Attachment i PARTICIPATION FFY 2005/06 FHWA PROJECTS` i ENGINEERINGICONS � RIGHT OF WAY EVIRON. PROJECT MANAGE MENTISOILS CONSULTANT CONSULTANT TOTALS dethel Islandbridge Marsh Creek Bridge $116,000($145,000) NA $56,000($70,000) $172,000($215,000) TOTAL 6, 8 0, 00 $56,000 0,0 00 3 ,000) I NAICS DBE°°(see reportpg.2) 16.8% 0.35% 10.7°° NA Est.DBE$Participation- Consultant Services $19,488($24,360) $280($350) $5992($7490) $25,760($32,200) Final Est.Total DBE% Participation (DBEpaparticipation/Total) 100%— %DBE ($25,760/$252,000) *100%= 10.20% i Amounts shown are Federal$with total project$,federal$ and local$match,shown in parenthesis. i 1 i i i [FHWA 04-05](05-06)DBEreportFHWAatt1