July 14, 2006
(For Board: July 28, 2006)




Honorable Board of Directors
Golden Gate Bridge, Highway
  and Transportation District


Honorable Members:

A meeting of the Rules, Policy and Industrial Relations Committee/Committee of the Whole was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Friday, July 14, 2006, at 9:56 a.m., Chair Pahre presiding.

Committee Members Present (6): Chair Pahre; Vice Chair Murray; Directors Hernández, Martini and Newhouse Segal; President Middlebrook (Ex Officio).
Committee Members Absent (1): Director McGoldrick
Other Directors Present (4): Directors Ammiano, Cochran, Eddie and Kerns

Committee of the Whole Members Present (10): Directors Ammiano, Cochran, Eddie, Hernández, Kerns, Martini, Murray, Newhouse Segal and Pahre; President Middlebrook
Committee of the Whole Members Absent (8): Directors Brown, Dufty, McGoldrick, Reilly Sandoval and Stroeh; Second Vice President Boro; First Vice President Moylan

[Note: On this date, there was one vacancy on the Board of Directors.]

Staff Present: General Manager Celia G. Kupersmith; District Engineer Denis J. Mulligan; Auditor-Controller Joseph M. Wire; Attorney David J. Miller; Secretary of the District Janet S. Tarantino; Deputy General Manager/Bridge Division Kary H. Witt; Deputy General Manager/Bus Division Susan C. Chiaroni; Deputy General Manager/Ferry Division James P. Swindler; Deputy General Manager/Administration and Development Teri W. Mantony; Public Affairs Director Mary C. Currie; DBE Program Administrator Aida S. Caputo; Assistant Clerk of the Board Patsy Whala

Visitors Present: None

1. Approve the Proposed FY 06/07 Annual Overall Disadvantaged Business Enterprise (DBE) Goal for FTA-Assisted Contracts and Update on the California Department of Transportation’s New DBE Program Guidelines

In a memorandum to Committee, DBE Program Administrator Aida Caputo, Deputy General Manager/Administration and Development Teri Mantony and General Manager Celia Kupersmith described staff’s recommendation relative to the proposed FY 06/07 annual overall Disadvantaged Business Enterprise (DBE) goal and provided an update on the California Department of Transportation’s new DBE Program Guidelines. 

The report outlined the two-step process used in determining the District’s overall DBE goal for Federal Transit Administration-assisted (FTA-assisted) contracts, in accordance with 49 Code of Federal Regulations Part 26 issued by the U.S. Department of Transportation (U.S. DOT).  In Step 1, base figures are calculated to determine the relative availability of DBEs in the areas of expertise involved in the District’s expected contracting activities. The District used the California Unified Certification Program DBE database and the Census Bureau’s 2003 County Business Pattern database to determine the base figures.  In Step 2, an assessment of known relevant evidence is analyzed to determine what adjustments are needed to tailor the base figures to the District’s marketplace.  Staff has analyzed data on actual DBE participation in comparable District race/gender-neutral contracts awarded in recent years to adjust the base figures.

The report stated that the District has identified eight FTA-assisted contracts to be undertaken in FY 06/07.  Staff determined an overall base figure of 15.43% for these contracts by identifying the North American Industry Classification System (NAICS) codes that closely match the types of work required for the contracts and determining the DBE percentage for each identified NAICS code.  The DBE percentage for each NAICS code is weighted by multiplying the percentage of FTA funds to be expended for each NAICS code.  Although four of the eight contracts project DBE participation, 74% of the total FTA dollars will be expended on two contracts that have no projected DBE participation resulting in a downward adjustment of the annual overall goal.

The report also stated that the U.S. DOT regulations require that the maximum feasible portion of the annual overall DBE goal be met by using race/gender-neutral methods and in light of the U.S. Court of Appeals for the Ninth Circuit decision regarding the constitutionality of DBE programs (Western States Paving Co. v. Washington State Department of Transportation), the District does not propose to set contract-specific DBE goal on new contracts to be awarded in FY 06/07. 

In accordance with federal regulations to ensure public participation in the goal-setting process, staff has published the proposed annual DBE goal, which also reflects staff’s determination of the level of DBEs ready, willing and able to participate in the District’s FTA-assisted contracting activity for FY 06/07.  In order to qualify for federal funding, the proposed goal must be submitted to FTA by August 1, 2006, for review and adjustments; however, prior concurrence with the goal is not required.  The annual overall DBE goal complies with the California Proposition 209, the 1996 California Civil Rights Initiative, in that it is only applicable to U.S. DOT-assisted contracts.  No DBE goal will apply to contracts that are not federally-assisted.

The report further stated that, on behalf of Federal Highway Administration (FHWA), the State of California Department of Transportation (Caltrans) oversees the DBE programs of subrecipients, such as the District, that receive FHWA funds.  Caltrans has promulgated new DBE guidelines to FHWA grantees.  These guidelines provide that subrecipients agree to follow a race-neutral approach and to include race-neutral boilerplate language in contract documents.  In addition, rather than adopt annual goals, subrecipients must provide estimates of anticipated DBE participation for inclusion in Caltrans’ statewide annual overall goal for FHWA-assisted projects.  Other than the Seismic Retrofit Phase IIIA contracts, for which a 12% overall project goal was established in 2005, the District does not anticipate awarding FHWA-assisted contracts in the upcoming fiscal year and has advised Caltrans accordingly.  A copy of the report is available in the Office of the District Secretary and on the District’s web site.

At the meeting, Aida Caputo summarized the staff report and stated that the methodology for arriving at the annual overall DBE goal is in accordance with the U.S. DOT rules and regulations.  She further stated that an adjustment was made to the overall base figure, primarily due to the highly specialized nature of contracts for channel dredging and farebox replacement, which comprise 74% of the total FTA dollars.  However, the 1% overall goal does not restrict the District from trying to achieve DBE participation over that goal.  Ms. Caputo noted that the District is in full compliance with the new DBE guidelines set by Caltrans, which will ensure further FHWA funding on District projects.

Discussion ensued, including the following,
  • Chair Pahre commended Ms. Caputo on her thorough and detailed report.
Staff recommended, and the Committee concurred by motion made and seconded by Directors MURRAY/HERNÁNDEZ to forward the following recommendation to the Board of Directors for its consideration:
The Rules, Policy and Industrial Relations Committee recommends that the Board of Directors approve the following actions relative to the FY 06/07 annual overall Disadvantaged Business Enterprise (DBE) goal:
Establish a one percent (1%) proposed goal applicable to $6,070,598 in contracts assisted by the Federal Transit Administration (FTA) in accordance with federal regulations;
Authorize the General Manager to formally adopt the FTA goal if no public comments are received that require further consideration or modifications of the proposed goal by the Board; and,

Authorize staff to submit the District's annual overall DBE goal for federally-assisted contracting opportunities to FTA by August 1, 2006.

Action by the Board - Resolution

AYES (10):  Directors Ammiano, Cochran, Eddie, Hernández, Kerns, Martini, Murray, Newhouse Segal and Pahre; President Middlebrook
NOES (0):   None
[Note: The above recommendation will be forwarded to the Board of Directors meeting of July 14, 2006, for action.]
2. Public Comment

There was no public comment.

3. Adjournment

All business having been concluded, the meeting was declared adjourned at 10:00 a.m.



Respectfully submitted,

/s/ Barbara L. Pahre, Chair
Rules, Policy and Industrial Relations Committee