07 Staff Report - Department of Transportation Funded Projects FY 2005-06N
.~pW OF
MEETING DATE: 1/17/06
ITEM NO.
lps.SATpS
COUNCIL AGENDA REPORT
DATE:
DECEMBER 27, 2005
TO:
MAYOR AND TOWN COUNCIL
FROM:
DEBRA J. FIGONE, TOWN MANAGER
SUBJECT:
ADOPT RESOLUTION AUTHORIZING DISADVANTAGED BUSINESS
ENTERPRISE (DBE) PARTICIPATION FOR USE ON U. S. DEPARTMENT
OF TRANSPORTATION FUNDED PROJECTS FOR FISCAL YEAR 2005-06
RECOMMENDATION:
Adopt resolution (Attachment 1) authorizing disadvantaged business enterprise (DBE) participation
for use on U. S. Department of Transportation funded projects for fiscal 2005-06.
BACKGROUND
The Town of Los Gatos receives grant funding for many capital projects from the Federal
Government. In making the funds available, the recipients are required to promote and administer
an approved DBE Program.
Staff has been working on the preparation of the DBE Program Goal. This has been done in
conformance with Title 49 Code of the Federal Regulations Part 26. This work is done annually and
each fiscal year the Town Council adopts the Disadvantage Business Enterprise (DBE) for the Town
of Los Gatos, which is then approved by the California Department of Transportation that
administers Federally grant funded projects.
The Town has established an overall annual DBE Goal for the fiscal year 2005-06 (Attachment 2)
and has made it available for public comment on December 5, 2005 (Attachment 3) for the required
30 day period and the 15 day review period before bringing the program to the Council for adoption.
As of this date, no comments have been received.
PREPARED BY: JOHN E. CURTIS Ila
Director of Parks and Public Works
Reviewed by: Assistant Town Manager JJY/- Attorney Clerk Administrator
FinanceCommunity Development Revised: 12/27/05 9:14 am
Reformatted: 5/30/02 NAB&MOUNCIL REPORTS\DBE.report.FY2005-06.11705wpd.wpd
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION AUTHORIZING DISADVANTAGED BUSINESS
ENTERPRISE (DBE) PARTICIPATION FOR USE ON U. S. DEPARTMENT OF
TRANSPORTATION FUNDED PROJECTS FOR FISCAL YEAR 2005-06
DECEMBER 27, 2005
DISCUSSION:
The overall annual goal for DBE participation on Federally funded projects in Los Gatos is 9%.
Using the methodology approved by Caltrans, staff and the consultant looked at the current projects
with federal funds: Resurfacing of Los Gatos-Almaden Road proj ect and the Highway 9 Bicycle and
Pedestrian Safety Improvement project. Using the categories of work included in the projects and
the region from which the potential contractors would be located, the base figure of 9% was
calculated. This means that, for federally funded projects, Los Gatos must endeavor to have 9% of
the dollar volume of these contracts to be awarded to DBE subcontractors. DBE subcontractors are
drawn from a list prepared by Caltrans and encompassing this region of the State. The General
Contractors are required, by the terms of the DBE Program, to use means prescribed within it to
locate and retain subcontractors with a DBE status for 9% of their total contract value.
The base figure is recalculated annuallybased on the experience obtained in the program for the past
year and the types of proj ects to be federally funded in the following year.
The Town of Los Gatos cannot proceed with any federally funded projects without an approved DBE
program.
CONCLUSION:
Staff recommends that Council adopt the attached resolution approving (DBE) participation for use
on U. S. Department of Transportation funded projects for fiscal 2005-06.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
Allocation of Federal funds cannot occur without the implementation of an approved program. It is
mandated. The program will require staff time not currently allocated in order to manage and update
it. It becomes the responsibility of the Town to assure the program is properly followed by
contractors who come under its provisions. It is also the responsibility of the Town to review the
adequacy of the program annually and to make revisions for the following fiscal year based on
current fiscal year findings. This will require an undesignated amount of staff time or the retention
of a consultant to provide this effort.
Attachments:
1. Resolution approving the Disadvantaged Business Enterprise (DBE) participation
2. Overall Annual Disadvantaged Business Enterprise Goal Information for FY 2005-06
3. Public Notice
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING DISADVANTAGED BUSINESS ENTERPRISE (DBE)
PARTICIPATION FOR USE ON
U. S. DEPARTMENT OF TRANSPORTATION FUNDED PROJECTS
FOR FISCAL YEAR 2005-06
WHEREAS, the Town of Los Gatos receives funds through the U. S. Department of
Transportation for certain approved transportation related projects.
WHEREAS, it is the requirement of all recipients of these Federal Funds to promote the
utilization of Disadvantaged Business Enterprises; and
WHEREAS, it is the requirement of all recipients of these Federal Funds to adopt an
approved program detailing the setting of goals for utilization of the DBE' S in Federally funded
contracts and the inclusion of these goals and other requirements in all such projects; and
WHEREAS, the Town of Los Gatos has duly fulfilled the State and Federal requirements
regarding the establishment of an official program that establishes the goals for the utilization of
DBE's in Federally funded contracts and the inclusion of these goals and other requirements in all
such projects.
NOW, THEREFORE, IT IS RESOLVED AS FOLLOWS: the Town of Los Gatos does
hereby find, determine, and order that:
1. Approves the Town's Disadvantaged Business Enterprise Program for fiscal year 2005-
2006 and its initial participation goal of 9%.
2. Directs the Parks and Public Works Department to monitor and evaluate the newly
adopted DBE Program goal in accordance with the direction and requirements of
the Federal Department of Transportation and its duly authorized agents.
Attachment 1
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos held on the 17th day of January, 2006 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
TOWN OF Los GATOS
CIVIC CENTER
110 E. MA>N STREET
P.O. Box 949
Los GATOS, CA 95031
July 22, 2005
Mr. Moe Shakernia
Caltrans - District 4
District Local Assistance Engineer
111 Grand Avenue
P.O. Box 23660
Oakland, CA 94623-0660
Subject: Overall Annual Disadvantaged Business Enterprise Goal
Information.
Dear Mr. Shakernia:
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 Town of Los Gatos submits their Annual Overall Goal Information for your review
and comments. We propose an annual overall DBE goal of 9% for the federal fiscal year
of 2005/2006, beginning October 1, 2005 and ending on September 30, 2006.
Methodolo~y
Please refer to the Town of Los Gatos' proposed Overall Annual DBE Goal Analysis for
federal fiscal year 2005/2006(Attached).
DBE Program
Please refer to the Town of Los Gatos DBE Program - (Attached).
Very truly yours,
Jo . Curtis, Director of Parks & Public works
cc: Orry Korb, Town Attorney
Attaclunents:
1-Overall Annual DBE Goal for Federal Fiscal Year 2005/05
2. Disadvantaged Business Enterprise Program
Attachment 2
INCORPORATED AUGUST 10, 1887
Ar
TOWN OF LOS GATOS
OVERALL ANNUAL DBE GOAL
FOR
FEDERAL FISCAL YEAR 2005/2006
Submitted in conformance with
Title 49 Code of the Code of Federal Regulations Part 26
Caltrans Local Assistance Procedures Manual
and
Caltrans Local Programs Procedures
I own or Los ua[os uverau Annual ubt tdoal uoiuu
DOT-ASSISTED CONTRACTING PROGRAM FOR FFY 2005/06
Table 1 below represents one DOT-assisted project the Town of Los Gatos considered in the
overall goal-setting process for FFY 2005/06. Only one project have subcontracting opportunities and
are anticipated to be awarded and/or expended within the fiscal year:
Table 1
Table 2 below provides a summary of the corresponding subspecialty work grouped into two primary
categories and identifies the Estimated Federal Dollar Share and the Percent of Federal Funding of each
primary work category utilizing Caltrans' Work Category Codes (WCC) and comparable 2002 Census
Business Patterns database North American Industry Classification System (NAICS) Work Codes.
Table 2
Town of Los Gatos Overall Annual DBE Goal 05/06
Page 2
11. GOAL-SETTING PROCESS:
Step 1: Determination ®f a Base Figure. for the Overall Annual Goal (26.45)
To begin the goal-setting process, the Town of Los Gatos determined the Base Figure for the relative
availability of DBEs, by following one of the five examples of approaches set forth in 26.25 of the
regulations. The following data sources were immediately available to the Town of Los Gatos:
For the numerator.
The Town of Los Gatos utilized the Unified Certification Program-2002 Certified DBE Firms to
determine the number of ready, willing and able DBEs in the Town of Los Gatos' market area
(further defined as San Mateo, Santa Clara, and San Francisco Counties).
For the denominator:
The Town of Los Gatos utilized the 2002 U.S. Census Bureau County Business Patterns (CBP)
Database to determine the number of ready, willing and able businesses available in the Town of Los
Gatos' market area (further defined as San Mateo, Santa Clara, and San Francisco Counties).
The Town of Los Gatos made a concerted effort to ensure that:
a) The scope of businesses included in the numerator is as close as possible to the scope included in
the denominator.
b) The NA.ICs codes included in the denominator is as close as possible to scope included in the
numerator. This was accomplished by utilizing the conversion table of NAICs work codes
provided by 2002 U.S. Census Bureau County Business Patterns (CBP) Database.
c) The geographic base included in the numerator is as close as possible to the U. S. Census Bureau
County Business Patterns Database. This was accomplished by determining the corresponding zip
codes for each county, within Town of Los Gatos' market area.
The Base Figure was further adjusted by weighting the relative availability of DBEs within each primary
work category, giving more weight to the work category the Town is projected to spend more DOT-
assisted dollars. The Base Figure resulting from this weighted calculation is as follows:
Town of Los Gatos Overall Annual DBE Goal 05/06
Page 3
Figure= 80% (DBEs in 234110 237310*)
CBPs in NAICS 234110, 235710**
Figure= 0.80 80 + 020 67
865 883
Base Figure = 0.80(0.0925) + 0.20(0.0759)
Base Figure = 0.0740+ 0.0152 = 0.0892
Base Figure = (0.0892) 100 = 8.92 = 9%***
+ 20%(DBEs in 541330.)_
CBPs in NAICS 541330
* For detailed listing of all Caltrans Work Categories grouped in each major category, refer to ExhibitA..
* * For detailed listing of all NAICE Work Codes grouped in each major category, refer to Exhibit B.
Rounded to the nearest whole number.
Step 2: Adjusting the Base Figure
Upon establishing the Base Figure, the Town of Los Gatos reviewed and assessed other known relevant
evidence potentially impacting the relative availability of DBE within the Town of Los Gatos' market
area in accordance with prescribed narrow tailoring provisions set forth under 49 CFR Part 26.
A. Town's Bidders List
While a Bidders List would serve as quantifiable evidence of DBEs demonstrated interest and capacity,
the Town has recently initiated the process of collecting pertinent information to create a Bidders List
database; therefore, there is not sufficient data to date to merit consideration for an adjustment. However:
the Town of Los Gatos will continue to capture such information from all the bidders at the time
bid/proposal submission and will utilize such information in future goal-setting analysis.
B. Disparity Studies
The Town of Los Gatos is not aware of any current disparity studies within the Town of Los Gatos'
jurisdiction for consideration in the goal - setting analysis and / or adjustment.
Town of Los Gatos
Overall dual DBE Goal for IFFY 2005/06
Page 4
Resultant Base Figure
Based on the Town of Los Gatos' review and consideration of the above factors, particularly in the
absence of the availability of historical DBE attainments, evidence considered does not support
an adjustment to the Base Figure at this time.
In conclusion, after careful consideration of the above-named evidence / and other relevant factors,
the Overall Annual DBE Goal for the Town of Los Gatos for FFY 2005/06 is 9%.
III. OVERALL ANNUAL GOAL AND PROJECTION OF RACE-NE UTRAL AND
RACE-CONSCIOUS PARTICIPATION-
The Overall Annual (JFJFY 2005/06) DBE Goal for the Town of Los Gatos' DOT-assisted
contracts is 9%. The Overall Goal is expressed as a percentage of all DOT-assisted funds that the
Town of Los Gatos will expend in FHWA-assisted contracts in the forthcoming fiscal year. This goal
farther serves to identify the relative availability of DBEs based on evidence of ready, willing, and able
DBEs to all comparable firms, which are known to be available to compete for and perform on the Town
of Los Gatos' DOT-assisted contracts. The Overall Annual Goal reflects a determination of the level
of DBE participation, which would be expected absent the effects of discrimination.
Although the Town of Los Gatos' race-neutral efforts are anticipate to increase, given the Town's DBE
participation attainments on similar types of projects, the Town will continue to utilize race-conscious
numeric goal-setting to affirmative drive the bidders' DBE participation commitments toward meeting the
Town's Overall Annual DBE Goal. Therefore, in light of these considerations, the Town of Los Gatos
projects that the proposed Overall Annual DBE Goal of 9% for FFY 2005/06 will be achieved through
the use of numeric goals (race-conscious participation). The Town of Los Gatos will, however, continue
to make efforts to employ race-neutral measures whenever possible to ensure that bidding and contract
requirements facilitate participation by DBEs and other small businesses in conformance with new
regulatory requirements.
IV. PUBLIC PARTICIPATION AND FACILITATION
In conformance with Public Participation Regulatory Requirements of 49 CFR Part 26 and Caltrans
Local Assistance Procedures Manual (LAPM), this goal analysis will be reviewed with minority, women,
local business chambers, and community organizations within the Town of Los Gatos' geographic
market area.
Town of Los Gatos Overall Annual DBE Goal for FFY 05/06
Page 5
Federal regulation Title 49 Code of Federal Regulation (CFR) Part 26.29 used in federal-aid contracts to
ensure prompt and full payment of any retainage kept by the prime contractor or subcontractor to any
subcontractor. The Town of Los Gatos is to include number 3 method in their federal-aid contracts to
ensure prompt and full payment of retainage (withheld funds) to subcontractors in compliance with the
Title 49 Code of Federal Regulations (CFR) Part 26.29.
Method No. 3 - Hold retainage from prime contractors and provide for prompt and regular incremental
acceptance of portions of the prime contract, pay retainage to prime contractors based on these
acceptances, and require a contract clause obligation the prime contractor to pay all retainage owed to
the subcontractor for satisfactory completion of the accepted work within 30 days after your payment
to the prime contractor.
Additionally, the Town of Los Gatos will publish a Public Notice in general circulation media announcing
the Town of Los Gatos' proposed Overall Annual Goal for the FFY 2005/06 DOT-assisted contracts.
Such Notice will inform the public that the proposed goal and its rationale is available for inspection at
the Town of Los Gatos' principal office during normal business hours for 30 days following the date of
the Public Notice and that the Town of Los Gatos will accept comments on the goal analysis for 45 days
from the date of the Public Notice. The required public participation provisions will be fully satisfied
prior to submitting the Town of Los Gatos' Overall Annual DBE to Caltrans for final reviews and
approval.
Town of Los Gatos Overall Annual DBE Goal 05106
Page 6
TOWN OF LOS GATOS
DBE GOAL ANALYSIS FOR FFY 2005/2006
EXHIBIT A
# OF ESTABLISHED DBE FIRMS IN SAN MATEO, AND SANTA CLARA
AND SAN FRANCISCO:
CONSTRUCTION:
~~yy~~,..}}~:~~::i';{:;~{:':;:;:`•:::;%:':;:':};sj'~}:::';'~:;:;'p;':}:::::?:;:;:%~:2~:•i`'-`'''':~':'l.~::::}:y':':~:::;:j;: ::si::j:~:::Tj::::j:~:`:'L::{`t::viii:~:
COUNTIES
:~:::f''~.'•:4:~'i:~::}~$:: :<~i'
238910
Clearing & Grubbing
3
1
6
238910
Roadway Excavation
2
1
4
237310
Grading
2
2
10
237310
Concrete Curb & Sidewalk
2
1
12
237310
Asphalt Concrete
2
0
8
237310
Paving Asphalt
1
2
8
238320
Painted Traffic Stripe & Marling
0
0
1
238110
Concrete Surface Finish
3
1
8
HIGH
WAY & STREET CONSTRUCTION
15
8
57
80
DATA SOURCE: Unified Certification Program-2002 DBE Certified Firms
Town of Los Gatos Overall DBE Goal 05/06
Page 7
# OF ESTABLISHED FIRMS IN SAN DATE®s AND SANTA CLARA
AND SAN FRANCISCO COUNTIES 1:
EXHIBIT B
CONSTRUCTION:
Major
Category:
Construction Services:
San Mateo
Sant:
Clara
San
Francisco
Total
NAICS CODE
NAICS DESCRIPTION
234110
Highway & Street Construction
15
32
10
234990
All Other Heavy Construction
14
27
11
235210
Paint Traffic Stripe & Marking
173
180
154
235710
Concrete Contractors
56
90
27
235930
Excavation Contractors
27
43
6
285
372
08
865
PROFESSIONAL SERVICES:
541330
Engineering & Construction Management
295
325
263
<>>~•'>~5>:I':: .:~:~:I1.:_:..::H-:_>:::•;::,;:,;::,,:..::::::::,,:,x:;::::.::
295
325
263
883
1: DATA SOURCE: U.S. Census Bureau: County Business Patterns, NAICS Work Category Codes
PUBLIC NOTICE
TOWN OF LOS GATOS
NOTICE IS HEREBY GIVEN, that the Town of Los Gatos has established a Proposed Overall
Annual Disadvantaged Business Enterprise (DBE) Goal of 9%, applicable to DOT assisted
contracting opportunities scheduled to award during the period of October 1, 2005 through
September 30, 2006. The Town of Los Gatos Proposed Overall Annual Goal and its rationale were
developed in response to U. S. Department of Transportation's new Disadvantaged Business
Enterprise Program Final Rule (49 CFR Part 26), and are available for inspection for (30) days
following the date of this Notice, from 8:30 a.m. to 4:00 p.m., Pacific Standard Time, Monday
through Friday at the Town of Los Gatos Parks and Public Works Department located at:
Town of Los Gatos
Parks and Public Works Department
41 Miles Avenue
P. O. Box 949
Los Gatos, CA 95031
(408) 399-5770
jcurtis@losgatosca.gov
Comments will be accepted on the Goal for forty-five (45) days from the date of this Notice.
Comments can be forwarded to Mr. John E. Curtis (DBE Liaison Officer) at the Town of Los Gatos
at the above address.
Dated at Los Gatos, California, this 5`h day of December, 2005
John E. Curtis, Director of Parks and Public Works
NAB&E\Nff.LIE\notice. dbe.wpd
Attachment 3