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TO' BOARD OF SUPERVISORS
r -
CostaFROM: MAURICE M. SHIU, PUBLIC WORKS DIRECTOR of ___ ----d;� . ;� Q. L
DATE: June 13, 2006 j'
�~ County
SUBJECT: ACKNOWLEDGE receipt of Alulual Anticipated Disadvantaged Business Enterprise Participation
Level Methodology Report for Federal Highway Administration Funded Contracts for 2006/2007
Federal fiscal year, Countywide.
(All Districts)
SPECIFIC REQUI-ST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDED ACTION:
ACKNOWLEDGE receipt of the Annual Anticipated Disadvantaged Business Enterprise(DBE)Participation Level
(AADPL) Methodology Report, establishing a 14.7% AADPL, for Federal Highway Administration (FHWA)
Funded Contracts in 2006/2007 Federal fiscal year and AUTHORIZE the County Administrator to sign the letter
submitting this AADPL to California Department of Transportation(Caltrans)on behalf of the County in accordance
with our DBE Implementation Agreement.
CONTINUED ON ATTACHMENT: ❑D SIGNATURE: �Q!
L/ RECOMMENDATION OF COt"NTY ADMINISTRATOR RECOMMENDATION OF BOARD C0MMITTEF-
i/ APPROVE OTHER
SIGNATURE(S): n+_
z=,,� 24;�C�L
AC'170N OF BO ON -N/"w-7 4e—, 4► i3 6 APPROVED AS RECOMMFNDED ✓ OTHER
VOTE OF SUPERVISORS: I HEREBY CERTIFY THAT TI IIS IS A TRUF AND CORRECT
/ COPY OF AN ACHON TAKEN AND E\fER1 D ON
V UNANIMOUS(ABSENT rem ) MINUTES OF THE BOARD OF SUPERVISORS ON THE
AYES: NOES: I DATE SHOWN.
ABSI.:NT: ABSTAIN:
Contact: Mikc I lollingsworth(313-2231)
MLII:GH:kp
G:\Design\BOARD OltDERS\2000\bo6-13AADPI..doc ATTESTED
Attachment: Annual Anticipated DBE Participation Level(AADPL)Methodology
Report for Federal Highway Administration(FI1WA)Funded Contracts for FFY JOHN C'ULLEN.C LFRK OF TI IE BOARD OF
06/07.AADPI.report submittal letter SUPERVISORS
cc: F.Kucvor,CAO
County Counsel
Caltrans,via PWD
BY: 1)1-..I'l!TY
SUBJECT: ACKNOWLEDGE receipt Of Annual Anticipated DBE Participation Level (AADPL)
Methodology Report for Federal Highway Administration (FHWA) Funded Contracts for FFY
06/07, Countywide. (All Districts)
DATE: June 13, 2006
PAGE: 2 of 2
FISCAL,IMPACT:
There is no impact on the General Fund. Submittal of the AADPL to Caltrans is prerequisite to maintaining
eligibility for Federal funding for County road and bridge projects.
REASONS FOR RECOMMENDATIONS AND BACKGROUND:
On May 23,2006,the Board of Supervisors approved a Disadvantaged Business Enterprises(DBE)—Race Neutral
Implementation Agreement with Caltrans. In accordance with this agreement, the County is required by June 15,
2006 to submit the County's AADPL for the upcoming Federal fiscal year.
CONSEQUENCES OF NEGATIVE ACTION:
If the Board does not take the recommended action, Caltrans will not authorize any Federal fiends earmarked for
County road and bridge projects in 2006/2007 Federal fiscal year.
TO: CALTRANS DISTRICT 4
District Local Assistance Engineer
The amount of the Annual Anticipated DBE Participation Level (AADPL) and methodology are
presented herein in accordance with Title 49 of the Code.of Federal Regulations, Part 26, and the
State of California Department of Transportation Disadvantaged Business Enterprise (DBE)
Program Plan.
The County of Contra Costa submits our AADPL information. We have established an AADPL
of 14.4% for the Federal Fiscal Year 06/07,beginning on October 1, 2006 and ending on
September 30, 2007.
Methodology
See attached Annual Anticipated DBE Participation Level Methodology Report, dated May
2006..
Disadvantaged Business Enterprise Liaison Officer- (DBELO)
County Administrators Office
Emma Kuevor, Affirmative Action Officer
651 Pine Street, 1.0"' Floor
Martinez, CA 94553
Phone: (925) 335-1045
Fax: (925) 646-1353
Email: ekuev@cao.cccounty.us
Prompt Pay
Federal regulation (49.CFR 26.29)requires one of three methods be used in federal-aid contracts
to ensure prompt and.full payment of any retainage, kept by the prime contractor or
subcontractor, to a subcontractor. (Attached is a listing of the three methods. On the attachment,
please designate which prompt payment provision the local agency will use.)
Submitted by: i Date:
JUNE 13 2006
John Cullen, County Administrator 4
Phone Number: (925) 335-1080
Reviewed by Caltrans: Date:.
(Signature of Caltrans District Local Assistance Engineer [DLAE])
Distribution:(I)Original--DEAF DDG Annual Submittal Form(05/01/06)
(2)Copy-local agency after signing by DL.AF.
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(Attachment)
Prompt Payment of Withheld Funds to Subcontractors
Federal regulation (49 CFR 26.29)requires one of the following three methods be used in federal-aid
contracts to ensure prompt and full payment of any retainage kept by the prime contractor or
subcontractor to a subcontractor.
Please check the box of the method chosen by the local agency to ensure prompt and filll pavmew of'cnly
retainage.
No retainage will be held by the agency from progress payments due to the prime contractor.
Prime contractors and subcontractors are prohibited from holding retainage from subcontractors.
Any delay or postponement of paylnent may take place only for good cause and with the agency's
prior written approval. Any violation of these provisions shall subject the violating contractor or
subcontractor to the penalties, sanctions, and other remedies specified in Section 7108.5 of the
California Business and Professions Code. This requirement shall not be construed to limit or
impair any contractual, administrative, or judicial remedies, otherwise available to the contractor or
subcontractor in the event of a dispute involving late payment or nonpayment by the contractor.
deficient subcontractor performance, andlor noncompliance by a subcontractor. This clause applies
to both DBE and non-DBE subcontractors
❑ No retainage will be held by the agency from.progress payments due the prime contractor. Any,
retainage kept by the prime contractor or by a subcontractor must be paid in full to the earning
subcontractor in 30-days after the subcontractor's work is satisfactorily completed. Any delay or
postponement of payment may take place only for good cause and with the agency's prior written
approval. Any violation of these provisions shall subject the violating contractor or subcontractor
to the penalties, sanctions, and remedies specified in Section 7108.5 of the California Business and
Professions Code. This requirement shall not be construed to limit or impair any contractual,
administrative, orjudicial remedies, otherwise available to the contractor or subcontractor in the
event of a dispute involving late payment or nonpayment by the contractor, deficient subcontractor
performance, and/or noncompliance by a subcontractor. This clause applies to both DBE and non-
DBE subcontractors.
The agenc-v shall hold retainage from the prime contractor and shall make prompt and regular
incremental acceptances of portions, as determined by the agency of the contract work and pay
retainage to the prime contractor based on these acceptances. The prime contractor or
Subcontractor shall return all monies witltheld in retention from all subcontractors within 30 days
after receiving payment for work satisfactorily completed and accepted including incremental
acceptances of portions of the contract work by the agency. Any delay or postponement of
payment may take place only for good cause and with the agency's prior written approval. Any
violation of these provisions shall subject the violating prime contractor to the penalties, sanctions.
and other remedies specified'in Section 7108.5 of the California Business Professions Code. This
requirement shall not be construed to hmit or impair any contractual, administrative, orjudicial
remedies otherwise available to the contractor or subcontractor in the event of: a dispute involvin�(T
late payment or nonpayment by the contractor; deficient subcontractor performance and/or
noncompliance by a subcontractohhis clause applies to both DBE and non-DBE subcontractors.
G:\Design\CT DBE Forms_Exhibits\FFY 06-07\FHWA06-07\AADi'L submittal Form for FFY 06-07.doe
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COUNTY OF CONTRA COSTA
---- -=-- ANNUAL ANTICIPATED-bBE-PARTICIPATION LEVEL- (AADPL)-AND
METHODOLOGY REPORT FOR FHWA FUNDED CONTRACTS
MAY 2006
1. FHWA-ASSISTED CONTRACTING PROGRAM FOR FFY 2006/07
The following represents County of Contra Costa's (County) projected FHWA-assisted
(USDOT funded) 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. $1,236,000
Management/Soils Consultant
(NAICS # 541330)
2 Right of Way Consultant $124,999
(NAICS # 531390)
3 Environmental Consultant $0
(NAICS # 541620)
Construction:
(See Attach. 2)
4 Contractors (NAICS # $13,717,335
237310,237990)
5 Trucking (NAICS #484220) $721,965
TOTAL $15,800,299.
(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 IFFY 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/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.NAICS]
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 14.7%
using this formula. The table below tabulates the 14.7% 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.1 C) (Col. E) CAT. Col. D=Col. D x Col. C)
(Col. F) E/Col. F
Consulting Services:
1 Engineering/Const. $1,236,000 378 2241 16.9% $208,884
Management/Soils
2 Right of Way $124,999 2 564 0.4% $500
3 Environmental $0 37 346 10.7% $0
Construction:
4 Contractors $13,717,335 48 313 15.3% $2,098,752
5 Trucking $721,965 14 589 2.4% $17,327
Total Fed.: $15,800;299 Total DBE : $2,325,463
TOTAL BASE FIGURE: [($2,325,463/$15,800,299) * 100%=1 14.7%
Step 2: Adjustment of Base Figure (49 CFR Section 26.45 (d))
After completing Step 1 of the 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 an AADPL of
14.7%. 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 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 tables:
Page 2 of 5
FISCAL YEAR
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 $6,188 5.7%
FISCALYEAR
2002/03
Work Category $ Paid to Contractors/. $ Paid to DBE Firms % Paid to
Consultants DBE Firms
Consulting Services $210,029 $83,789 39.9%
Construction $1,168!000 $6,188 0.5%
FISCAL YEAR
2003/04
Work Category $ Paid to Contractors/ $ Paid to DBE Firms % Paid to
Consultants DBE Firms
Consulting Services $77,9;00 $11,939 15.3%
Construction $486,074 $9,473 2.0%
FISCAL YEAR
2004/05
Work Category $ Paid to Contractors/ $ Paid to DBE Firms % Paid to
Consultants DBE Firms
Consulting Services $7,028 $0 0%
Construction $100,173 $10,765 10.8%
FISCAL YEAR
2005/06(year-to-
date)
Work Category $ Paid to Co i tractors/ $ Paid to DBE Firms % Paid to
Consultants DBE Firms
Consulting Services $115,518 $4,522 3.9%
Construction $76,794 $5,361 7%
Totals $2,655,410 $265,889 10% Avg.
Since Fiscal Year 2001/02, the average DBE utilization (measured by the percentage of
dollars paid to DBEs) was 10%. 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. Tlhe DBEs either submit higher bids or chose not to bid.
There is no compelling reason to reason to adjust the AADPL.
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, 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 FHWA-assisted County projects in fiscal year 2006/07 is 14.7%.
FINAL SUMMARY
Proiect Items: Fed. $ Amount Fed. $ DBE % DBE
I. Consulting Services $1,360,999 $209,384 15.4%
II. Construction $14,439,300 $2,116,079 14.7%
Total $15,800,299 $2,325,463 14.7%
I. Consulting Services
Item Description Fed. $ Amount Fed. $ DBE % DBE
Engineering/CM $1,236,000 $208,884 16.9%
Environmental $0 $0 0%
Right of Way $124,999 500 0.4%
Total $1,360,999 $209,384 15.4%
Il. Construction Contracts
Item Description Fed. $ Amount Fed. $ DBE % DBE
Contractor $13,717,335 $2,098,752 15.3%
Trucking $721,965 $17,327 2.4%
Total $14,439,300 $2,116,079 14.7%
Page 4 of 5
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.
Ma c . Shiu
Public Works Director
MS:MLH:GH:
G:\Design\CT DBE Forms_Exhibits\FFY 06-07\FHWA06-07\AADPL FHWA Methodologyffy06-07.doc
Attachments
C: E. Kuevor,DBELO
A. Duffy,Caltrans
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Page 5 of 5
CONSULTANTS Allaohn,enl l
PARTICIPATION
FFY 2006/07 FHWA PROJECTS*
ENGINEERING/CONST.
MANAGEMENTISOILSRIGHT OF WAY EVIRON.
PROJECT CONSULTANT CONSULTANT CONSULTANT I TOTALS
Bethel s an Bridge ,
Orwood Bridge $236,000 $5,000 $0 $241,000
i
SR 239 Study $200,000 $0 $200,000
TOTAL $1,236,000 $124,999 $0 $1,360,999
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NAICS DBE%(see report pg.2) 16.9% 1 0.4007o 10. /o NA —
Est.DBE$Participation-
Consultant Services $208,884 $500 i $0 $209,384
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Final Est.Total DBE%
Participation (DBE participation/Total)`100%= %DBE
($209,384/$1,360,999)`100%= 15.38%
`Amounts Shown Are In Federal Project Dollars
iFH WA.04-051(06-07)DBEreoor!F HWAa!l1
• Contracto i/Truckers Participation Attachment 2
FFY 2006-07 FHWA Projects
PROJECT Contractors Trucking Totals
Iron horse Trail O.C. $475,000 $25,000 $500,000
Bethel Island Bridge $7;600,000 $400,000 $8,000,000
Orwood Bridge $2;242,000 $118,000 $2,360,000
Camino Tassajara $307,800 $16,200 $324,000
Reliez Valley Rd. Path $324,900 $17,100 1 $342,000_
Stone Valley Rd. $513,000 $27,000 j $540,000
San Pablo Dam Rd. $513,000 $27,000 . $540,000 _
Byron Highway $1 530,450 $80,550 $1,611,000
Balfour Rd. $211,185 $11,115 $222,300
Total $13,717,335 $721,965 $14,439,300
NAICS DBE % (see report pg.2) 15.3% 2.4%
Est. DBE Participation in
Construction $2,098,752 $17,327 $2,116,079
Final Est. Total DBE%
Participation (DBE participation/Total) * 100%= %DBE
($2,116,079/$14,439,300) *100%= 14.66%
* Amounts Shown Are In Federal Project Dollars
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(06-07)DBEreportFHWAatt2/FHWA Summary Sheet