CITY COUNCIL AGENDA ITEM
Meeting Date: January 9, 2001
Subject/Title: Annual Disadvantaged Business Enterprise (DBE)
Goal for U.S. Department of Transportation (DOT) Contracting Opportunities
Submitted by: Engineering: J. Stevenson/K. Wahl/M. Huber
Approved by: Jon Elam, City Manager
Approval of a Resolution approving the City of Brentwood 2000/2001 Disadvantaged
Business Enterprise (DBE) goal of 2.7% for U.S. Department of Transportation
(DOT) contracting opportunities.
A Disadvantaged Business Enterprise (DBE) is a for-profit “small business concern” that
is at least 51% owned and controlled by one or more socially and economically
disadvantaged individuals. The DBE term includes the Minority Business Enterprise
(MBE) and the Women-Owned Business Enterprise (WBE) programs. The certification
of firms as eligible DBE’s is a decision made by the Caltrans Disadvantaged
Business Enterprise Program.
Title 49 of the Code of Federal Regulations (CFR), Part 23 has been the Federal
requirement that provides guidance for all DOT-assisted contracts. A September
9, 1999, letter from Caltrans notified all transportation agencies receiving
or with approval to receive Federal-aid highway funds of new Federal DBE regulations
and the proposed implementation for California pending approval of the Caltrans
DBE Program Plan by the Federal Highway Administration (FHWA). On April 3,
2000, Caltrans received conditional approval of its DBE Program from FHWA and
has authority to approve the DBE goals local agencies are required to develop
under the new regulations.
Part 26 has replaced Part 23, Title 49 of the CFR, as the final rule binding
on all recipients of DOT-assisted contracts. Previous DBE requirements (49
CFR 23) are now superseded by the new regulations (49 CFR 26), titled “Participation
by Disadvantaged Business Enterprises in Department of Transportation Financial
Assistance Programs”. The provisions of Title 49, Part 26 apply to all Federal-aid
funded transportation projects and require local agencies’ participation of
disadvantaged business enterprises in local Federal-aid contracts. The provisions
of Part 26 are to assure that firms competing for DOT-assisted contracts are
not disadvantaged by unlawful discrimination.
Staff has established a Disadvantaged Business Enterprise Program in accordance
with regulations of the U.S. Department of Transportation (DOT), 49 CFR, Part
26. The overall DBE participation goal is expressed as a percentage of all
Federal-aid highway funds that an agency will expend in FHWA-assisted contracts
in the forthcoming year. The overall goal is a determination of the level of
DBE participation the City would expect absent the effects of discrimination.
The City of Brentwood has been awarded federal funds for transportation projects
and as a condition of receiving the funds is required to sign an assurance
that the City will comply with 49 CFR, Part 26.
The goal established and approved by Caltrans for the City of Brentwood is
2.7% of the Federal financial assistance in FHWA-assisted contracts. The goal
was derived using the following methodology:
§ Determining the Relative Availability of Ready, Willing and Able DBE Contractors
A list of DOT assisted contracts was developed from projects which are anticipated
to be in the construction process in the next two years. The current Caltrans
statewide list of certified DBE firms in each of the anticipated work code
categories for transportation projects willing to work in Contra Costa County
and/or statewide was compared to the corresponding statewide Census Bureau
data for all firms in those work category codes. The resulting percentage was
further refined by selecting only DBE firms in Northern California and comparing
to the total number of firms statewide.
§ Calculating the Base Figure (Step 1)
Draft engineer’s estimates were developed for Federal-aid projects which have
been approved but are not yet in progress. Using the estimates, the projects
were broken down into categories of work with percentages of the project assigned
for each. The relative availability percentage for DBE’s established prior
was applied to give the total dollar amount that could be expected to be subcontracted
to DBE firms. In addition, also factored in were those projects where a DBE
could be awarded the contract as a prime contractor.
§ Calculating the Overall Goal (Step 2)
Transportation projects which have been constructed during the three prior
fiscal years were used to develop a list of bidders, subcontractors and suppliers
that have historically bid on projects within the City of Brentwood. This data
was also used to determine what has been our typical market area. Of the five
projects, one had DBE participation as a subcontractor although a DBE prime
had submitted bid proposals on others. The contract total amount was compared
against the dollar amount to DBE’s to arrive at a DBE participation percentage.
That number was then compared to the total dollars in all those projects combined.
The average of Step 1 and Step 2 is the established DBE annual goal.
Starting with the Federal fiscal year 2002, the amount of overall goal, the
method used to calculate the goal and the breakdown of estimated race-neutral
and race-conscious participation will be required annually by June 1 in advance
of the Federal fiscal year beginning October 1 for FHWA-assisted contracts.
The Disadvantaged Business Enterprise Program must be implemented and an annual
overall goal must be established prior to submitting a “Request for Authorization” to
proceed with a Federal-aid project and becoming eligible for Federal funding.
With Caltrans approval of the proposed DBE goal for 2000/2001, a notice of
the proposed goal has been published informing the public that the proposed
goal and its rationale are available for inspection during normal business
hours at the City of Brentwood Engineering Department for 30 days from the
date of publication and that comments will be accepted for 45 days after the
date of publication. Any comments received during this period will be documented,
addressed and forwarded to the Caltrans District Local Assistance Engineer.
The City of Brentwood will continue to carry out this program until a new goal
setting methodology has been established or until significant changes to the
DBE Program are adopted. The City of Brentwood will provide to Caltrans a proposed
overall goal and goal setting methodology and other program updates by June
1 of each year.
Caltrans Letter of Approval
City of Brentwood DBE Program
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING THE CITY
OF BRENTWOOD 2000/2001 DISADVANTAGED BUSINESS ENTERPRISE (DBE) GOAL OF 2.7%
FOR U.S. DEPARTMENT OF TRANSPORTATION (DOT) CONTRACTING OPPORTUNITIES
WHEREAS, new Federal regulations have been issued regarding Disadvantaged
Business Enterprises (DBE); and
WHEREAS, previous DBE requirements (Title 49 Code of Federal Regulations
[CFR] Part 23) are now superseded by the new regulations (Title 49 CFR Part
26), titled “Participation by Disadvantaged Business Enterprises in Department
of Transportation Financial Assistance Programs” as the final rule binding
on all recipients of DOT-assisted contracts; and
WHEREAS, all Federal-aid recipients are required by Title 49 CFR Part
26, to develop and submit for approval an agency-specific Disadvantaged Business
Enterprise Program; and
WHEREAS, City of Brentwood Engineering staff has prepared a DBE Program
with a 2.7% DBE participation goal for all Federally funded projects for the
Federal fiscal year 2000/2001; and
WHEREAS, the DBE Program, the proposed goal and its rationale are described
in Exhibit A; and
WHEREAS, the State Department of Transportation (Caltrans) has reviewed
and approved the contents and elements of the program and finds that it meets
the requirements of Title 49 CFR Part 26; and
WHEREAS, the City of Brentwood is required and has published a notice
of the proposed overall goal, informing the public that the proposed goal and
its rationale are available for inspection during normal business hours at
the City of Brentwood Engineering Department for thirty days following the
date of the notice (December 3, 2000), and that comments will be accepted on
the proposed goals for forty-five days following the date of the notice (December
NOW, THEREFORE BE IT RESOLVED by the City Council of the City
of Brentwood that the 2000/2001 Disadvantaged Business Enterprise Program and
the goal of 2.7% is approved.
BE IT FURTHER RESOLVED that beginning with the Federal fiscal year 2002,
a proposed overall goal and goal setting methodology and any other DBE Program
updates will be submitted to Caltrans annually by June 1.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood
at a regular meeting held on the 9th day of January 2001 by the following vote: