HomeMy WebLinkAboutReso 2001-138 - DME program RESOLUTION NO. 2001- /38'
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING SETTING AN OVERALL GOAL OF 4% FOR THE
CITY OF REDDING'S DISADVANTAGED BUSINESS
ENTERPRISES (DBE) PROGRAM AS IT PERTAINS TO
FEDERAL HIGHWAY ADMINISTRATION FUNDING FOR
FISCAL YEAR 2001-02.
WHEREAS, as a condition of receiving federal funds, local agencies are required to adopt a
program for the inclusion of those firms qualifying as a Disadvantaged Business Enterprise (DBE); and
WHEREAS, federal regulations require that an annual goal and methodology be established
and actively pursued to ensure that DBE firms are not excluded from the competitive bidding process;
and
WHEREAS, the City Council adopted a program on December 5, 2000 in accordance with
DBE requirements set forth in Title 49, Part 26, of the Code of Federal Regulations; and
WHEREAS, the U.S. Department of Transportation has entrusted Caltrans with local agency
oversight responsibility for DBE implementation;
NOW, THEREFORE, IT IS RESOLVED by the City Council that as it pertains to Federal
Highway Administration Funding the attached Caltrans approved Disadvantaged Business Enterprise
(DBE) Program Annual Overall Goal and Methodology of 4% for Federal fiscal year 2001-02 be and
hereby is adopted, ensuring a good faith effort to meet the established goal and ensure participation by
small business concerns owned and controlled by socially and economically disadvantaged individuals.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a
regular meeting of the City Council on the 18thlay of September, 2001, by the following vote:
AYES: COUNCIL MEMBERS: Cibula, Kight, Pohlmeyer, Stegall and McGeorge
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
DAVID 7, EO ' , /„.(or
Attest: Form Approved:
Connie ,S rohmayer, Cite CSA W Leonard Wingate, City orney
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c CITY OF REDDING
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, PUBLIC WORKS DEPARTMENT
777 Cypress Avenue, Redding, CA 96001-2718
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. P.O. Box 496071. Redding. CA 96049-6071
530.225.4170 FAX 530.245.7024
CITY OF REDDING
OVERALL ANNUAL DBE GOAL AND METHODOLOGY
FEDERAL FISCAL YEAR (FFY) 2001/2002
I. Department of Transportation (DOT)-Assisted Contracting Program for FFY 2001/2002
The following represents City of Redding projected FHWA funded contracts and expenditures by work
category and corresponding North American Industry Classification for FFY 2001/2002:
Work NAIC Estimated % of Federal Funding
Category Category Dollar Value by Work Category
Highway, street, bridge&tunnel
construction 2341 $ 2,384,000.00 81%
Engineering &environmental
consulting services 54113 &54162 $ 452,848.00 19%
TOTAL $ 2,836,848.00 100%
11 Goal Methodology
Step 1: Determination of a Base Figure*
To establish City of Redding's Base Figure of the relative availability of DBEs in relation to all comparable
firms available for City of Redding's FFY 2001/02 DOT-assisted contracting program, City of Redding has
elected to utilize the Caltrans DBE Directory of Certified Firms(filtered to represent only DBE firms within
City of Redding's relevant market area) for calculating the numerator and the Shasta Builders' Exchange
(SBE) Summer 2000 Membership Directory within the same geographical market area to calculate the
denominator, as follows:
For the numerator: Caltrans'DBE Directory of Firms in Shasta County
For the denominator: Shasta Builder's Exchange Directory of Firms in Shasta County
To derive at the relative availability of DBEs,the number of DBEs available in Caltrans' DBE directory was
divided by the number of all comparable Shasta Builder's Exchange firms available.
• DBE Goal& Methodology Page 2
Application of this formula yielded the following baseline information:
Number of Ready, Willing and Able DBEs = Base Figure = DBE's
Number of Ready, Willing and Able Firms SBE's
The Base Figure resulting from this calculation is as follows:
Base Figure = .81 (DBEs)+ .19(DBEs) _ .81 )+ .19(0) _ .81(.0857)+ .19(0)
(SBEs)+ (SBEs) 105 21
Base Figure = .0694+ .0000 = (.0694) 100=6.940=7%
Step 2:Adjusting the Base Figure
Upon establishing the Base Figure, City of Redding reviewed and assessed other known relevant evidence to
determine what additional adjustments, if any, were needed to narrowly tailor the Base Figure to the local
marketplace. Factors considered in determining the City of Redding's DBE participation that can be expected,
absent discrimination, included the following:
A. Current Capacity of DBEs Measured by Actual Attainments
The volume of work that DBEs performed in the City of Redding's DOT-assisted contracting program for
Fiscal Years 1997/98, 1998/99, 1999/00 and 2000/01 based on actual DBE utilization paid report summaries,
is as follows:
Fiscal Dollars Paid to Dollars Paid DBE GOAL
Year Work Category Contractor DBE Firms Attainment%
1997-98 Highway, street, bridge, &
tunnel construction $ 6,904,926.00 $338,443.00 4.93%
•
1998-99 No projects
1999-00 No projects
2000-01 Engineering& environmental
consulting services $ 143,836.00 $44,159.00 30.7%
B. FY 2000-01 & FY 2001-02
In FY 2000-01 a City of Redding DOT-assisted contract was awarded in the amount of$2,384,115 with
federal funding in the amount of$1,371,000. This project has been delayed and now is reflected in our
2001-02 projected expenditures. As previously noted, 50%of the project is furnishing glass, and the
documented DBE participation will only be 1.55%. With respect to actual expenditures in FY 2000-01,
the City of Redding's total DBE attainment was 30.7%. While this percentage significantly surpasses our
overall annual goal of 4%, it is important to recognize that due to construction delays the total expenditure
was for environmental consulting services only which represents less than 2%of our projected FY 2000-01
FHWA funded contracts and expenditures. Therefore, it is impractical to establish a realistic goal for all
components of work based solely upon engineering and environmental consulting services. As such,
DBE Goal& Methodology Page 3
continuation of the existing 4%overall goal seems appropriate.
C. Utilizing Goals Approved by Another Agency
The federal government has established goals for minority and female participation expressed in percentage
terms for a contractors aggregate workforce in each trade on all construction work. The established goals
are as follows:
Classification Goal Area
Minority 6.8% Redding Economic Area
Female 6.9% Nationwide
D. Resultant Goal Adjustment
The impact of these factors, historical DBE participation, current and projected year DBE participation,
availability of DBE's in local market(consulting vs. construction), and the minority goal defined by the
federal government for the Redding Economic Area displays a need for a downward adjustment of the Base
Figure from 7%to 4% for DBE participation in the City of Redding's DOT-assisted contracts for FY
2001/02.
III Utilization of Race-neutral and Race-conscious Methods
Of the overall annual 4%goal for DBE participation, City of Redding projects meeting 1%of the goal
utilizing race-neutral methods, including making efforts to assure that bidding and contract requirements
facilitate participation by DBEs and other 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 facility consideration of DBEs and other small businesses. The remaining 3%of
the goal is anticipated to be accomplished through race-conscious measures,which includes establishing
contract specific goals on contracts with subcontracting possibilities, when needed,to meet City of
Redding's overall annual DBE goal.
IV Public Participation in Setting 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,this goal analysis has been reviewed with
minority, women, local business chambers, community organizations, and other U.S. DOT recipients.
These entities are knowledgeable about the availability of disadvantaged and non-disadvantaged businesses
and the effects of discrimination on contracting opportunities for DBEs within City of Redding's
marketplace.
Additionally, City of Redding will publish a Public Notice in general circulation media, announcing the
City of Redding Public Works Department's proposed overall annual goals for the FY 2001/02 contracts
assisted by DOT. Such Notice will inform the public that the proposed goals and their rationale are
available for inspection at the City of Redding during normal business hours for 30 days following the date
of the Public Notice and,that the City of Redding and FHWA will accept comments on the goals for 45
days from the date of the Public Notice. The required public participation provision will be fully satisfied
prior to submitting City of Redding's DBE Program and Overall Annual DBE Goal for final review and
approval.