Agenda. Thursday, May 6, 2010, 9:30 AM. Transportation Business Advisory Council Meeting. One Gateway Plaza Gateway Plaza Conference Room 3 rd Floor

Transcription

1 Thursday, May 6, 2010, 9:30 AM Agenda Transportation Business Advisory Council Meeting One Gateway Plaza Gateway Plaza Conference Room 3 rd Floor American Indian Chamber of Commerce of California Asian American Architects & Engineers Association Asian Business Association Black Business Association Chinese American Construction Professionals Greater Los Angeles African American Chamber of Commerce Latin Business Association Latino Business Chamber of Greater Los Angeles National Association of Minority Contractors National Association of Women Business Owners Los Angeles Regional Hispanic Chamber of Commerce Society of Hispanic Professional Engineers Los Angeles Chapter Women Construction Owners & Executives USA Women s Transportation Coalition Women s Transportation Seminar I. Call to Order Lucia Tam II. Roll Call III. Review/Approval of Minutes IV. Chair s Report Lucia Tam Lucia Tam Lucia Tam Resignation V. TBAC Speaker Gerard McCallum Hollywood Park Development VI. Metro Contracting Opportunities A. Contract Look-Aheads B. Current Solicitations Tashai Smith VII. TBAC Committee Reports A. Legislative Affairs Ezekiel Patten, Jr. Ad Hoc Committee Rod Garcia Assessment Sub-Committee Elias Cortez B. Commodities Ezekiel Patten, Jr. C. Professional Services Carlos Morgner D. Construction Ken Wong E. Membership Lynn Chen/Sandi Sinicrope F. Bylaws Sandi Sinicrope VIII. Old Business A. Action Items B. Disparity Study Briefing Tashai Smith IX. New Business Second Speaker X. Public Comment XI. Adjournment Tony Velasquez Parsons

2 TRANSPORTATION BUSINESS ADVISORY COUNCIL MEETING MINUTES April 1, 2010 I. Call To Order TBAC Meeting was called to order at 9:43 AM in the Gateway Plaza Conference Room located on the 3 rd floor of METRO headquarters at One Gateway Plaza in Los Angeles, California. II. Roll Call: QUORUM IS ESTABLISHED TBAC Officers Present (X) Lucia Tam, Chairperson- Chinese American Construction Professionals X Ezekiel Patten Jr., Vice-Chairperson- Black Business Association Financial Officer X Ken Wong, Asian American Architects & Engineers X Carlos Morgner, Parliamentarian, Women s Transportation Seminar X Sandra Sinicrope, Secretary - Women Construction Owners & Executives TBAC Representatives/Alternates Attendance (see sign in sheet) American Indian Chamber of Commerce Tracey Stanhoff Diana Webster Robert Weir Asian Business Association Lynn Chen Jonathan Hou... X Asian American Architects & Engineers Association William Yang Black Business Association Earl Skip Cooper Chinese American Construction Professionals Fred Chen Andy Liu Greater Los Angeles African American Chamber of Commerce Tamara Ashford Mary Ann Seymour... X Latin Business Association Ruben Guerra Ernie Gutierrez Jack Ochoa Latino Business Chamber of Greater Los Angeles Jorge C. Corralejo Patricia C. Linn Daniel Schulist Frank Villalobos National Association of Minority Contractors Leon Brooks Bianca Vobecky... X National Association of Women Business Owners Laura Yamanaka Regional Hispanic Chamber of Commerce Sandy Cajas... X Roberto Delgado... X Society of Hispanic Professional Engineers Elias Cortez... X Rodrigo Garcia Rudy Garza Roberto C. Guzman 1

3 TRANSPORTATION BUSINESS ADVISORY COUNCIL MEETING MINUTES April 1, 2010 Women Construction Owners & Executives Katee Sinicrope Women Transportation Coalition Lynda Bybee Maria Solano Women s Transportation Seminar Carla Manzanilla Lia Reyes... X LA Minority Business council Dorothy Randle Linda Smith Metro Staff Attendance (see sign in sheet) Linda Wright, Deputy Executive Officer, DEOD Michelle Caldwell, Interim Chief Administrative Services Officer Keith Compton, Manager, DEOD Julie Ellis, Client/Vendor Service Doug Failing, Executive Director, Highway Programs Bruce Feerer, Executive Officer, Procurement & Materials Management Elizabeth Garcia, Assistant Administrative Analyst, DEOD Sherman Gay, Sr. Representative, Outreach, DEOD Lonnie Mitchell, Executive Officer, Procurement Amy Richardson, Representative, Labor Compliance Unit/TBAC/Outreach Tashai Smith, Manager, Contract Compliance Unit David Vila, Contract Administration Manager, Procurement Richard Chastang, Attorney, County Counsel Michael Turner, Manager, Government Relations General Public Attendance (see sign in sheet) Raul Fernandez, Athalye Consulting Engineering Services Polly Walton, Athalye Consulting Engineering Services Bernard Li, Advantec Consulting Engineers Rolly Rothman, Rothman Engineering Bobby Evans, Anytime Trucking Sebastian Ridley-Thomas, State OFCA (Sen. Curran Price) Robin Thorne, CTI Environmental T.J. Chou, Elite Engineering Consultant Miguel Juarez, Promerica Bank Roberto Ugarde, Promerica Bank Gary Maraviglia, AES, Inc AECOM Magally Martinez, DMS Engineering & Associates, Inc. Arellys Good, DMS Engineering & Associates, Inc. Faroq Qureshi, Marrs Services, Inc. Linda Clark, Langford & Carmichael, Inc. Josephine M. Bayan, JAD & Associates, LLC Amado Hernandez, GMT Civil & Structural Kenyon Walker, Bullock & Associates, Inc. Orlando Moreno, Brandow & Johnston, Inc. Kathie Brabson, RailPros, Inc. X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X 2

4 TRANSPORTATION BUSINESS ADVISORY COUNCIL MEETING MINUTES April 1, 2010 DEOD invited additional speakers (David Vila, Sebastian Ridley-Thomas, Tashai Smith & Richard Chastang) to TBAC meeting who were not originally scheduled in the Agenda. DEOD requested that they be allowed to come up and make presentations at the beginning of the meeting. In accommodating DEOD s request, Lucia Tam, TBAC Chair, notified the attendees that the original Agenda will be out of order. Added and scheduled speakers will come up first, subject to any objections from the membership. Hearing none, Agenda was changed to that effect. Added Speakers David Vila, Metro Office of Procurement: Made presentation regarding Assembly Bill AB 2755, which is intended to improve Metro's procurement process. The Bill would modify Metro's design/build statute to allow "best value" procurement for D/B public works projects, streamline the currently onerous change order review process, limit pre-qualification requirements to public works contracts greater than $5 million, Allow the CEO to delegate low bid construction authority, allow for Job Order Contracts, and increase the ceiling for simplified construction procurement from $25,000 to $100,000. The Bill is "SBE/DBE Neutral," and is not intended to influence SBE or DBE procurement processes. Mr. Vila requested the support of TBAC members in sending letters and testimony to the State Legislature. Several TBAC members suggested tailoring the bill to encourage greater small business participation in procurement, Mr. Vila stated that the bill was narrowly focused to address procurement issues in general, and called attention to SB 1341, which is intended to more directly help small businesses, Tashai Smith, Metro DEOD: Made presentation regarding Senate Bill SB 1341, which is intended to give Metro the authority to require that lowest bidders either meet SBE goals on non-federally funded low-bid contracts, or show a Good Faith Effort, and grant a 5% bid preference to SBE bidders/proposers or large bidders who meet Metro SBE goals. Sebastian Ridley-Thomas: Urged TBAC members to write letters supporting of both bills, which will be considered in late April. Michael Turner (Metro Gov't Relations) reiterated the need to show support for these bills, since legislative committees will consider lists of those supporting or opposing a bill during their discussions. Mr. Turner stated that he would send a sample letter to members via blast. Richard Chastang (County Counsel) responded to a question from the floor by stating that the bid preference portion of SB 1431 cannot currently be extended to Professional Services, which are based on qualifications rather than price, however the SBE goal will remain. V. SPEAKER: Maria Contreras Sweeney, Miguel Juarez, Roberto Ugalde (Promerica Bank) Made presentation regarding financial products aimed at assisting SBA-certified small businesses. Promerica Bank is a Certified Minority Depository Institution and Community Development Financial Institution, and is an SBA-preferred lender. SBA Loans: guaranteed by the Federal Government, longer terms than conventional loans, relaxed collateral requirements and can also provide short-term working capital and lines of credit up to $350,000. Promerica provides financing for professionals and non-profits as well as businesses, and bridges them together with the Center of Success Program of networking meetings and workshops. Speakers for Center for Success meetings have included Ed Roski, Secretary of Transportation Dale Bonner, Assembly Speaker Emeritus Karen Bass, and Congressman Steny Hoyer. Speaker 3

5 TRANSPORTATION BUSINESS ADVISORY COUNCIL MEETING MINUTES April 1, 2010 encourages TBAC members to advocate among transportation authorities to deposit in local, minority-owned institutions. Carlos Morgner suggested a partnership between Metro, the bank and TBAC for the purpose of speeding payment of fee retentions to small businesses. III. Review and Approval of Meeting Minutes Motion: Approval of March 4, 2010 Meeting Minutes 1 st - Sandy Cajas 2 nd - Ezekiel Patten Discussion: None All said, Aye. None said, Nay. None Abstained. Motion carries. IV. Chair s Report Lucia Tam No report VI. METRO Contracting Opportunities Tashai Smith Contract look-aheads and current contracts presented. Attention was called to Professional Service items 4 Metro Eastside Gold Line Linkages. SBE Goal for this project is 35%. VII. Committee reports: Legislative Affairs Committee - Ezekiel Patten, Jr. Presented to the membership were the following: 1. FHWA Letter approving Mandatory race-conscious component to the Caltrans DBE program 2. letter brief from the State Attorney General's Office to the California Supreme Court in the matter of Coral Construction Inc. vs. City and County of San Francisco, which challenges the constitutionality of Proposition letter from Speaker of the Assembly John A. Perez listing Committee assignments and leadership for the Regular Session *Subcommittee for Metro Board Item #33 Motion - Lucia Tam on behalf of Rod Garcia Subcommittee has completed its report on the Performance Audit results, which is being included in the Reports to be presented before the Metro Board at the upcoming April Metro Board meeting. *Assessment Sub-Committee - Elias Cortez Subcommittee met with Doug Failing regarding efforts to document actions taken on past TBAC recommendations to Metro Board. Goal is to establish metrics for assessing Metro responsiveness. Commodities Committee - Ezekiel Patten, Jr. Committee discussed with Tanya Allen regarding vendor database access for contractors who have limited access to the internet. Sorted through database information and repaired incorrect information. Believes that Metro will allow TBAC members to use the Metro library to complete and update their vendor profiles. Ezekiel will gather information about this effort and post it on the BBA website. Packets with names and contact information for all Metro procurement officers and buyers were made available. Reminded members that vendors, whether DBE or not, must 4

6 TRANSPORTATION BUSINESS ADVISORY COUNCIL MEETING MINUTES April 1, 2010 compete with each other based on bid and ability to deliver and that no vendor is entitled to win a contract based solely on DBE status. Ezekiel stressed the need for vendors to create cordial relationships with their respective Metro buyers. Professional Services Committee - Carlos Morgner 1. Regional Connector Industry Review was taking place in the Metro Board Room simultaneous to the TBAC meeting and encouraged members to get involved with this project. 2. Foothill Extension teams have already formed up. Small Business Bench Program will come out soon. 3. Doug Failing was requested to make available on the web the names of all firms on the Metro Large Business Bench and on the California High Speed Rail project. 4. Mr. Failing will initiate a mentoring program for small businesses similar to the Caltrans program and has asked TBAC for input. 5. Toll Road industry review is also underway and will be out soon. Construction Committee- Kenneth Wong Evaluation survey for Meet the Primes event will be coming out soon. Updated draft sent to Keith Compton. Membership Committee - Lucia Tam on behalf of Chairs American Arab Chamber of Commerce membership packet still not complete. VIII. Old Business Action items: 1. Ezekiel Patten Jr. to work with Bruce Feerer regarding P-Card use 2. Quarterly Meeting with Richard Katz has been tentatively rescheduled to 5/ Art Leahy has been tentatively scheduled to attend the June TBAC meeting. 4. Membership Drive is on hold pending budget clarification. 5. Meet the Buyers Event is being re-evaluated based on budget. Per Keith Compton of DEOD, plans to have the event may proceed with the food component part removed. 6. Meet the Primes Questionnaire to be issued next week. 7. DEOD Award Tracker out for March and will be issued monthly. IX. New Business - None X. Public Comments 1. Doug Failing - Small Business Bench has been sized deliberately to allow SBE's to act as Primes. 2. Corrections shall be made to March Minutes Attendance Sheet based on comments 3. Linda Wright: DEOD will present progress update on Disparity Study to Board 4. Elias Cortez is the new SHPE Alternate Representative replacing Carlos Morgner 5. Carlos Morgner stated TBAC Board's desire to have more relevant speakers in the future, particularly those who can direct work to TBAC membership. 6. Keith Compton stated that the list of upcoming speakers is available and encouraged TBAC members to request speakers who they feel are most appropriate 7. Amy Richardson encouraged TBAC members to make speaker requests in a timely manner. Adjournment Motion to adjourn 1 st - Ezekiel Patten Jr. 2 nd - Carlos Morgner Meeting was adjourned by Lucia Tam at 11:22 a.m. 5

7 TRANSPORTATION BUSINESS ADVISORY COUNCIL May 6, 2010 TBAC ACTION ITEMS ISSUE DATE APRIL 2009 ACTION ITEM PERSON IN CHARGE DEADLINE Follow-Up P-Card Purchasing Bruce Feerer Ezekiel Patten Jr. TBD NOV 2009 Schedule 2010 quarterly meetings with Richard Katz: Confirmed dates: 3/18; 5/20, 7/15, 10/21 Amy Richardson As Scheduled NOV 2009 Schedule 2010 quarterly meetings with Art Leahy: Confirmed dates: 3/4, 6/3, 9/2, 12/2 Amy Richardson As Scheduled FEB 2010 Membership Drive Lucia Tam Keith Compton TBD FEB 2010 Meet the Buyers Lucia Tam Keith Compton JUNE 2010 FEB 2010 MEET THE PRIMES Event Survey Kenneth Wong Keith Compton Amy Richardson TBD MAR 2010 DEOD Award Tracker Report 2010 (monthly) Ezekiel Patten Jr. Tashai Smith MAR COMPLETED APRIL - OPEN S:\TBAC \2010 Handouts\ May\Action Items - May 6, 2010.doc Page 1 of 1

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15 Current Solicitations Sorted by Due Date 5/5/10 Number Title Type Due Date PS Highway Programs Planning and Deliverables Bench including amendment 1 RFIQ 07/27/ Steam Soap/Degreaser including Amendment 1, 2, 3 & 4 IFB 06/24/ Bus Alternator IFB 05/27/2010 OP Stake Bed Truck IFB 05/26/2010 PS Coin-Operated Video and Game Machines & Services RFP 05/24/2010 PS Vending Machines & Vending Machine Services RFP 05/21/ Copier Paper including Amendments 1, 2 & 3 IFB 05/20/2010 OP Bus Tire Leasing and Maintenance Services RFP 05/19/ P865/P2020 LIGHT RAIL VEHICLE TRACTION MOTOR REPAIR AND OVERHAUL. INCLUDES AMENDMENTS 1, 2 & 3 IFB 05/19/ Bus Batteries IFB 05/18/ Spark Plugs and Wires including amendment 1 IFB 05/13/2010 PS Metro Gold Line Eastside Access Project Including Amendments 1, 2 & 3 with other attachments RFP 05/13/2010 PS S-1 Guard Safety Device Evaluation RFP 05/13/2010 PS Convenience Copying, Print Management and Document Management Services including Amendment 1, 2, 3 & print assessments RFP 05/13/2010 C0962 Central Hotel Improvements IFB 05/05/2010 Industry Review Elevator/Escalator Maintenance and Repair Services RFP N/A C0959-C Metro subway station entrance canopy - CANCELLATION NOTICE IFB 00/00/0000 PS High Occupancy Toll Express Lanes On the I-10 and I-110 Freeways Project - INDUSTRY REVIEW RFP 00/00/0000 OP Division 10 and 18 CNG Upgrade, Operation, and Maintenance including amendments 1, 2, 3, 4 & 5 IFB TBD This information is provided as a service to those who want access to Metro through this Internet site. The information contained in this system is subject to change at any time. Please call or Vendor Relations to request the most current information available. Additional Information Construction Solicitations above are also available on ebidboard website. Contract Terms and Conditions Future Contracting Opportunities

16 Contract Look-Aheads May Revised # Project Description Scope of Work Project Estimate Professional Services 1 Highway Programs Planning and Deliverables Bench Metro is seeking professional planning services from SBE/DBE's to assist in the planning and design of multimodal transportation projects Potential Subcontract Opportunities by NAICS: Architectural Services Engineering Services Geophysical Surveying & Mapping Services Process, Physical Distribution & Logistics Consulting Services Environmental Consulting Services Public Relations Agencies Highway, Street, and Bridge Construction Other Heavy and Civil Engineering Construction Other Scientific and Technical Consulting Services Administrative Management and General Management Consulting Not to exceed $8,000,000 Contract Administrator Gary Katzman, KatzmanG@ metro.net Project Manager DEOD Manager DEOD Contract Compliance Representative Don Howey, HoweyD@ metro.net Tashai Smith, smitht@metro.net Bud Boyd, BoydB@metro.net Goal Status Anticipated Advertise Date 35% DALP and 35% SBE Established To Be Determined 2 S-1 Gard Danger Zone Deflector Product Evaluation 3 Regional Connector Transit Corridor Project Metro is seeking a professional services team to review the effectiveness of the current S-1 Gard Danger Zone Deflector System (S-1 Gard) Metro is seeking a qualified contractor to provide Advanced Conceptual Engineering (ACE) and Preliminary Engineering (PE) Services for the Regional Connector Transit Corridor project Potential Subcontract Opportunities by NAICS: , , , Project Administration , Architectural , , , Tunneling / Geotechnical , , , , , , Structural, Civil, Mechanical & Electrical Engineering , Track Work & Systems , Utilities & Right of Way Advanced Conceptual Engineering Design $92,000 Nathan Jones, JonesN@metro.net $18,000,000 Joe O'donnell, OdonnellJ@ metro.net Greg Kildare, KildareG@ metro.net Dolores Roybal, RoybalD@ metro.net Tashai Smith, smitht@metro.net Tashai Smith, smitht@metro.net Violeta Aguilos, aguilosv@metro.net Barbara Thomasson, thomassonb@ metro.net No DALP % Established 35% DALP Established 17-Apr-2010 To Be Determined Diversity and Economic Opportunity Department 1 of 3 May 10, 2010

17 Contract Look-Aheads May Revised # Project Description Scope of Work Project Estimate Professional Services (Cont'd) 4 Guaranteed Ride Home (GRH) Metro is seeking the GRH program to provide an emergency ride home to employees that rideshare from participating companies Potential Subcontract Opportunities by NAICS: Facil'te User Follow-up Survey , Update Report Format & Activity Summary Coord Taxi & Rental Car Firms Employer/Employee dbase Subcontract & Coord with Call Center Call Center Dist'n of Info Packet to Employ's Monitor Program Use/Data Analysis Process Payments to Service Providers Contract Administrator $162,000 Veronica Hargrove, HargroveV@ metro.net Project Manager DEOD Manager DEOD Contract Compliance Representative Paula Carvajal, CarvajalP@ metro.net Tashai Smith, smitht@metro.net Jay Fisgus, FisgusJ@metro.net Goal Status Anticipated Advertise Date 5% SBE Established To Be Determined 5 Elevator/Escalator Maintenance and Repair Services Metro is seeking a contractor to furnish full and complete preventative maintenance, servicing, repairs, inspections and tests for the Metro's elevators and escalators $42,000,000 Samira Baghdikian, BaghdikianS@ metro.net Vance Gilless, GillesV@metro.net Tashai Smith, smitht@metro.net Bud Boyd, BoydB@metro.net 5% DALP Established 7-Jun Stops & Zones - Metro Clean Department, Portable Toilets Potential Subcontract Opportunities by NAICS: All Other Specialty Trade Janitorial Services Metro is seeking a contractor to provide portable toilets at selected locations in support of its current bus and rail operations $300,000 Walter (Ted) Sparkuhl, SparkuhlW@ metro.net Pete Serdeinis, SerdeinisP@ metro.net Tashai Smith, smitht@metro.net Violeta Aguilos, aguilosv@metro.net No MBE/WBE VALP % Established To Be Determined Construction 1 Artwork Tile Installation at Civic Center & Westlake/MacArthur Park stations Metro is seeking a contractor to install Artwork Tile Murals at 2 Metro Rail subway stations $47,500 Mayumi Lyon, LyonM@metro.net Jorge Pardo, PardoJ@metro.net Tashai Smith, smitht@metro.net Violeta Aguilos, aguilosv@metro.net No SBE % Established 27-Oct-2009 Design & Construction (No Projects) Equipment 1 Electric 6,000 lbs Forklift Metro is seeking to purchase four (4) electric 6,000 pound forklifts $180,000 David Vila, VilaD@metro.net Harold Torres, TorresH@ metro.net Tashai Smith, smitht@metro.net Violeta Aguilos, aguilosv@metro.net No MBE/WBE VALP % Established To Be Determined Material/ Supplies 1 Bus - Transmission Fluid Metro is seeking to replenish the stock for bus transmission fluid $4,562,842 Tanya Allen, AllenTM@ metro.net Cathy Kaminski, KaminskiC@ metro.net Tashai Smith, smitht@metro.net Violeta Aguilos, aguilosv@metro.net No DALP % Established 6-May-2010 Diversity and Economic Opportunity Department 2 of 3 May 10, 2010

18 Contract Look-Aheads May Revised # Project Description Scope of Work Project Estimate Other 1 Metro Freeway Service Patrol Metro is seeking a tow company to provide the rapid removal of disabled vehicles including those involved in minor accidents from the roadway (when directed by California Highway Patrol) Contract Administrator $5,000,000 Walter (Ted) Sparkuhl, SparkuhlW@ metro.net Project Manager DEOD Manager DEOD Contract Compliance Representative John Takahashi, TakahashiJ@ metro.net Tashai Smith, smitht@metro.net Violeta Aguilos, aguilosv@metro.net Goal Status Anticipated Advertise Date No MBE/WBE VALP % Established To Be Determined DISCLAIMER All information provided above is subject to change. If you are interested in any of the projects, please contact the listed Contract Administrator and/or go to Click on Doing Business with Metro and go to Contracting Opportunities and Future Contracting Opportunities for updated bid/ proposal opportunities. LEGEND DALP Disadvantaged Business Enterprise (DBE) Anticipated Levels of Participation SBE Small Business Enterprise WBE VALP Women Business Enterprise Voluntary Anticipated Levels of Participation MBE VALP Minority Business Enterprise Voluntary Anticipated Levels of Participation UDBE - Caltrans DBE Program Underutilized Disadvantage Business Enterprise To Be Determined Contact Contract Administrator for Updated Information N/A - Formal Advertisement Not Required - Contact Contract Administrator for information Los Angeles Service Authority for Freeway Emergencies (LA SAFE) 1 Evaluation of the 511 MATIS Traffic Information Center The Los Angeles Service Authority for Freeway Emergencies (LA SAFE) seeks a contractor to review the operations of its Motorist Aid and Traveler Information System (MATIS) Traveler Information Center (TIC) and make recommendations on improving its efficiency Potential Subcontract Opportunities by NAICS: Surveying & Mapping Services Engineering Services Electrical Contractors Information Services Computer Systems Design Services Process & Logistics Consulting Services $50,000 Joseph Marzano, MarzanoJ@ metro.net Iain C. Fairweather, FairweatherI@ metro.net Tashai Smith, smitht@metro.net Barbara Thomasson, thomassonb@ metro.net 5% SBE Established N/A Diversity and Economic Opportunity Department 3 of 3 May 10, 2010

19 Hollywood Park Land Company

20 Ground Level Met with hundreds of residents and local groups. Created a plan consistent with Inglewood s priorities.

21 You told us you want: A Diverse and intergenerational community Homes for owners of various ages and incomes Convenient and flexible open spaces useable by all age groups A walkable community A variety of education, recreational and social community facilities

22 Putting the Priorities into Action PRIORITIES: Quality Retail Parks Wide array of housing Transportation Improvements Environmental Responsibility Community Benefits

23 Hollywood Park: By the Numbers Within the 238 acres of Hollywood Park: Park System 25 acres Civic site (School with library/multipurpose facility) 4 acres Retail and entertainment 620,000 square feet Offices 75,000 square feet Community Space for homeowners 10,000 square feet Casino (renovated in place) 120,000 square feet Hotel with meeting facilities 300 rooms Residential uses 2,995 homes Affordable Housing To Be Determined

24 The Plan: A New Community Shopping Districts Residential Neighborhoods Beautiful parks Elementary School

25 A Look at the Shopping District Main Street charm Lushly-landscaped promenade 16-screen Movie Theater Sidewalk cafes Major brands

26 Retail District

27 Cinema Plaza

28 Market Hall Plaza

29 Lake Plaza

30 Residential Product Types Single Family Podium/Wrap Townhome Single Family Townhome Podium/Wrap

31 Residential Types: VARIETY

32 A Look at the Parks 25 acres Four parks Dog park tot lots, volleyball, jogging and hiking trails, playing fields Open to the public Connect to the entire development via walkways, promenades and bike trails

33 Champion Park Relax in an urban setting

34 Public Benefits: ECONOMIC $ 2 billion in direct investment Over $100 million in tax increment for the Community Redevelopment Agency Annual tax revenue to Inglewood to support critical city services Creation of approximately 19,000 construction and permanent jobs Job training programs

35 SECTION ES. Executive Summary The Los Angeles County Metropolitan Transportation Authority ( Metro ) must implement the Federal Disadvantaged Business Enterprise (DBE) Program to receive U.S. Department of Transportation (USDOT) funds. Recent court decisions and guidance from USDOT have led Metro to reexamine how it implements the Program. In October 2006, Metro discontinued the use of DBE contract goals/good faith efforts and initiated a DBE anticipated levels of participation program for contracts funded by the Federal Transit Administration (FTA). Metro discontinued use of DBE contract goals/good faith efforts in response to U.S. Department of Transportation guidance issued regarding agencies in the Ninth Circuit. 1 Metro maintained an overall aspirational goal for DBE participation after discontinuing use of DBE contract goals/good faith efforts. BBC Research & Consulting conducted this disparity study to assist Metro in making decisions concerning compliance with the Federal DBE Program: 2,3 1. Setting an overall annual aspirational goal for DBE participation in FTA-funded contracts; 2. Determining achievement of the annual aspirational goal through neutral means; 3. Identifying specific measures to be used in implementing the Federal DBE Program; and 4. Considering initiatives applicable to its locally-funded contracts (contracts for which the Federal DBE Program does not apply). 1. Overall Annual Aspirational DBE Goal At this time, each year Metro must develop an overall annual aspirational goal for DBE participation in FTA-funded contracts. The Federal DBE Program requires a base figure analysis and consideration of any step 2 adjustments in deriving this annual goal. Base figure analysis. Metro should consider 8.4 percent as the base figure for its overall annual aspirational goal for DBE participation, which exceeds Metro s 8 percent overall annual aspirational DBE goal for FFY Metro included certified DBEs in its calculations (a USDOT-approved methodology). BBC also counted in the base figure minority- and women-owned firms that possibly could be certified as DBEs but are not currently certified, which is recommended by USDOT if such information can be developed. 5 (When only counting certified DBEs, BBC s approach produces a 1 See 2 This disparity study applies only to FTA-funded contracts and not contracts funded by the Federal Highway Administration (FHWA). The California Department of Transportation completed a disparity study concerning FHWAfunded contracts in California in Metro joined four Southern California public transportation agencies in this joint study (the Southern California Regional Rail Authority, Orange County Transportation Authority, San Diego Association of Governments and San Diego Metropolitan Transit System). The study began in December 2007 and was completed in early 2010 after the public had the opportunity to review and comment on the draft report. 4 Minority- and women-owned firms comprise 38 percent of the 2,480 businesses BBC examined as available for specific types of Consortium agency transportation prime contracts and subcontracts. Because BBC performed the availability analysis on a dollar-weighted basis given the sizes, types and other characteristics of individual contracts, calculation of MBE/WBE availability differs from a simple counting of firms. 5 Based on information on race/ethnicity/gender ownership and the annual revenue of the firms. The base figure does not include firms that have graduated from the DBE Program or have otherwise had recent certification denials. BBC RESEARCH & CONSULTING SECTION ES, PAGE 1

36 base figure of 4.6%. Only counting certified DBEs, BBC s approach produces a base figure that is less than the FFY 2009 DBE goal.) Note that the annual aspirational goal could change based on changes in the actual contract opportunities that are available in any given year. Section III of the report describes the base figure analysis. Consideration of possible step 2 adjustments. Metro must consider specific types of information regarding the relative availability of DBEs before finalizing its overall annual aspirational DBE goal. 6 This process is referred to as consideration of a step 2 adjustment. The adjustment can be downward or upward. BBC s in-depth analysis of each factor outlined in the Federal DBE Program suggests that Metro consider one of the following options concerning a step 2 adjustment. Option 1 Making an upward step 2 adjustment at this time. Several factors suggest that Metro consider a higher overall aspirational goal than the 8.4 percent base figure. If Metro were to make an adjustment, it could consider adopting an annual aspirational goal of 11.3 percent, which represents DBE availability after accounting for disparities in business ownership rates for women and certain minority groups in the Southern California construction and engineering industries (discussed in Section VI of the report). Evidence of disparities in access to capital and other factors also supports an annual aspirational DBE goal higher than 8.4 percent. BBC s estimate of DBE participation on FTA-funded contracts for 2003 through 2007 was about 10 percent, demonstrating current capacity of DBEs to perform work. 7 Option 2 Not making a step 2 adjustment at this time. The Federal DBE Program does not require agencies to make a step 2 adjustment. Metro might conclude that any further increase in its annual aspirational goal above 8.4 percent should be made in the future, not at present. 2. Percentage of the Annual Goal to be Achieved through Neutral Means USDOT requires agencies to meet the maximum feasible portion of the overall annual goal using race-neutral means. Agencies should examine questions listed below when projecting what portion of their overall goal will be met through race- and gender-neutral means: 8 a. What is the participation of DBEs in the recipient s contracts that do not have contract goals? b. There may be information about state, local, or private contracting in analogous areas where contract goals are not used (e.g., in situations where a prior state/local affirmative action program was ended). What is the extent of participation of minority- or women-owned businesses in programs without goals? c. What is the extent of race-neutral efforts that the recipient will have in place for the next fiscal year? d. Are there firm, written, detailed commitments in place from contractors to take concrete steps sufficient to generate a certain amount of DBE participation through race-neutral means? e. To what extent have DBE primes participated in the recipient s programs in the past? f. To what extent has the recipient oversubscribed its DBE goals in the past? 6 See 49 CFR Section (d) and Section VI of the disparity study report for a discussion of each factor. 7 Per 49 CFR Section (d)(1)(i). 8 See BBC RESEARCH & CONSULTING SECTION ES, PAGE 2

37 The following summarizes BBC s analysis of each question (see Section VI for more details.) a. Participation on Metro contracts without goals/good faith efforts program. On October 1, 2006, Metro changed its implementation of the Federal DBE Program from DBE contract goals/good faith efforts to a DBE anticipated levels of participation (DALP) program. BBC examined FTA-funded contracts for two time periods: January 2003 through September 2006, and October 2006 through December Overall utilization of minority- and women-owned firms. As shown in Figure ES-1, Metro s utilization of minority- and women-owned firms (MBE/WBEs) on FTA-funded contracts increased from 15 percent when DBE contract goals/good faith efforts were in place (2003 September 2006) to 34 percent after it changed to the DALP program (October 2006 through December 2007). 9 BBC also examined MBE/WBE participation as prime contractors and subcontractors on locallyfunded contracts (contracts not involving FTA or other federal funds) for 2003 through 2007 (Metro s anticipated levels of participation program for MBEs and WBEs applied to some of these contracts). MBE/WBE utilization on locally-funded contracts was 13.5 percent, somewhat below FTA-funded contracts with the DBE goals/good faith efforts program in place. 10 One must cautiously interpret these results as the types and sizes of work involved in later FTAfunded contracts and locally-funded contracts are not directly comparable to the 2003 September 2006 FTA-funded contracts. (The earlier FTA-funded contracts included a number of very large construction contracts and subcontracts.) Figure ES-1. MBE/WBE share of prime/ subcontract dollars for FTAfunded transportation contracts, before and after October 1, 2006 and for locally-funded contracts, % 60% 50% 40% 33.7% Note: Certified DBE utilization. 30% 11.5% Number of contracts/subcontracts analyzed is 3,524 for 2003 Sept FTA-funded contracts, 1,115 for Oct Dec FTA-funded contracts, and 800 for locally-funded contracts. For more detail and results by group, see Figures E-2, E-3 and E-4 in Appendix E. 20% 3.0% 10% DBE 11.6% 14.6% DBE 22.2% 3.1% DBE 10.4% 13.5% Source: BBC Research & Consulting from data on Metro contracts. 0% FTA-funded contracts 2003-Sept FTA-funded contracts Oct Dec Locally-funded contracts This analysis counts firms as MBE/WBEs if they are certified as MBE/WBEs and/or as DBEs and when they indicate minority or female ownership and are not certified (because they are too large to meet certification criteria, have let certification lapse, have chosen not to be certified, or for other reasons). 10 Metro has applied MBE/WBE Voluntary Anticipated Levels of Participation (MBE/WBE-VALP) contract goals for certain locally-funded contracts. Prime contractors are not required to meet the goals. Metro s Small Business Enterprise Program applies to locally-funded professional services contracts. Firms submitting proposals for these contracts must either meet the SBE contract goals set by Metro or document good faith efforts to do so, or their proposal will be deemed nonresponsive. BBC RESEARCH & CONSULTING SECTION ES, PAGE 3

38 Figure ES-2 provides utilization results for MBE/WBEs, and separately for certified DBEs, for the more than 5,000 Metro FTA- and locally-funded contracts and subcontracts examined in the study. 11 Figure ES-2. DBE and MBE/WBE share of prime/subcontract dollars for transportation contracts, by race/ethnicity/gender Federally-funded contracts 2003 September 2006 October 2006 Dec Locally-funded contracts Total MBE/WBEs African American-owned 1.0% 2.4% 2.9% 1.4% Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE 12.6% 26.4% 9.8% 12.3% WBE (white women-owned) Total MBE/WBE 14.6% 33.7% 13.5% 14.8% DBEs African American-owned 0.8% 0.9% 2.5% 1.2% Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE 10.8% 20.0% 8.1% 10.4% WBE (white women-owned) White male-owned DBE Total DBE 11.6% 22.2% 10.4% 11.6% Note: Source: Numbers rounded to nearest tenth of 1 percent. Numbers may not add to totals due to rounding. For more detail, see Figures E-2, E-3, E-4 and E-38 in Appendix E. Number of contracts/subcontracts analyzed is 3,524 for 2003 Sept FTA-funded, 1,115 for Oct Dec FTA-funded, 800 for locally-funded contracts and 5,439 for all contracts. BBC Research & Consulting from data on Metro contracts. 11 BBC reviewed 26,032 Metro procurements totaling $2.5 billion that were FTA-funded within the study period. A portion of these procurements were suitable for the disparity analysis, as described in Section II of the report. BBC also analyzed 4,072 locally-funded procurements (not using FTA or other federal money) representing $2.8 billion, a portion of which were suitable for inclusion in the disparity analysis. Race/ethnicity/gender ownership of utilized firms was determined through multiple sources in addition to certification records, including phone calls to individual firms. Appendix E of the report provides a detailed breakdown of utilization by group for specific types and time periods of Metro contracts and subcontracts. BBC RESEARCH & CONSULTING SECTION ES, PAGE 4

39 Participation of minority- and women-owned firms as subcontractors. Figure ES-3 examines the share of subcontract dollars going to MBE/WBEs and certified DBEs. The percentage of subcontract dollars going to MBE/WBEs was higher for contracts after Metro changed its implementation of the DBE contract goals program on FTAfunded contracts MBE/WBEs obtained about 24 percent of subcontract dollars before the change and 45 percent after the change. Examining the dollars that were subcontracted on locally-funded contracts, utilization of MBE/WBEs as subcontractors was about 57 percent. Figure ES-3. MBE/WBE share of subcontract dollars for FTA-funded transportation contracts for 2003 September 2006 and October 2006 December 2007, and locally-funded contracts Note: Certified DBE utilization. Number of subcontracts analyzed is 240 for 2003 Sept and 22 for Oct Dec FTA-funded contracts, and 172 for locally-funded contracts. For more details and results by group, see Figures E-8, E-9 and E-10 in Appendix E. Source: BBC Research & Consulting from data on Metro contracts. 100% 60% 50% 40% 30% 2.0% 20% 10% 0% DBE 22.3% 24.3% FTA-funded contracts 2003-Sept % DBE 32.9% 45.3% FTA-funded contracts Oct Dec % DBE 47.5% 56.6% Locally-funded contracts Discontinuing the DBE contract goals/good faith efforts program may have resulted in a smaller share of contract dollars being subcontracted out, as discussed later in this Executive Summary. Disparity analysis. Report sections IV and V and supporting appendices explain disparity analyses in considerable detail. Key results include the following: The 34 percent MBE/WBE utilization for FTA-funded contracts for October 2006 December 2007 was in line with what would be expected given overall MBE/WBE availability for these contracts (31%). There was no evidence of disparities, overall, on FTA-funded contracts for the 15 months after the change in program. Analysis of utilization and availability by group showed evidence of disparities for WBEs and Hispanic American-owned firms for October 2006 December 2007 FTAfunded contracts. Utilization of African American-owned firms was in line with availability for October 2006 through December 2007 and utilization of Asian-Pacific American-, Subcontinent Asian American- and Native American-owned firms was higher than expected based on their availability for this work. BBC RESEARCH & CONSULTING SECTION ES, PAGE 5

40 b. Information about state, local, or private contracting in analogous areas where contract goals are not used. What is the extent of participation of minority or womenowned businesses in programs without goals? The five Consortium agencies participating in the Southern California Regional Disparity Study make purchases within the same local transportation contracting market, and operated and then discontinued DBE contract goals/good faith efforts programs. A combined utilization and disparity analysis from BBC s studies for the four non-metro Consortium agencies (OCTA, Metrolink, SANDAG and MTS) is presented here. (Metro is not included as its contract dollars are very large compared with the other agencies.) Overall utilization of minority- and women-owned firms. Figure ES-4 combines utilization from each of the four other Consortium agencies. Minority- and women-owned firms obtained 23 percent of the FTA-funded contract dollars from 2003 through the time that the four Consortium agencies discontinued use of their DBE contract goals/good faith efforts programs (spring 2006). After the change in the program, MBE/WBE utilization on FTA-funded contracts was 28 percent. Some agencies continued voluntary goals, at least for some portion of MBE/WBE utilization for locally-funded Consortium contracts was 18.5 percent. Figure ES-4. MBE/WBE share of other Consortium agency prime/subcontract dollars for FTA-funded transportation contracts, before and after change in DBE contract goals, and for locally-funded contracts, % 60% 50% 40% 30% 23.1% 28.4% Note: For OCTA, SCRAA, SANDAG and MTS. Certified DBE utilization. Number of contracts/subcontracts analyzed is 564 for FTA-funded contracts prior to change in DBE contract goals program, 175 for 2006 Dec FTA-funded contracts after the change in program, and 1,239 for locally-funded contracts. For more detail and results by group, see Figures E- 103, 104 and 105 in Appendix E. Source: BBC Research & Consulting from data on LACMTA, MTS, OCTA, SANDAG and SCRRA contracts. 20% 7.6% 10% 0% DBE 15.5% FTA-funded contracts prior to change in DBE goals program 14.7% DBE 13.7% FTA-funded contracts after change in DBE goals program 6.2% DBE 12.3% 18.5% Locally-funded contracts Disparity analysis. BBC compared combined MBE/WBE utilization for the four non-metro Consortium agencies with the level of utilization expected based on a combined availability analysis for Consortium contracts (see Section VI). MBE/WBE utilization was very close to what would be expected based on availability for FTA-funded contracts after the changes in programs. This was largely due to high utilization for certain minority groups. Utilization fell below availability when examining WBEs and African American-, Subcontinent Asian American- and Native Americanowned firms. BBC RESEARCH & CONSULTING SECTION ES, PAGE 6

41 c. Race- and gender-neutral remedies available to Metro. Metro has implemented a number of race- and gender-neutral remedies, including an extensive calendar of new vendor workshops and one-on-one sessions, meet-the-buyers and meet-the-primes events, Transportation Business Advisory Council meetings, and participation in local vendor fairs. Metro partners with many other programs that serve small businesses in Southern California (from training to assistance with bonding and credit, as discussed in Section VI). In addition to its ongoing efforts and being able to refer firms to other local resources, BBC suggests that Metro consider several additional race- and gender-neutral remedies, which are highlighted below. Technical assistance, finance and bonding assistance, mentor-protégé programs and other efforts. A number of neutral remedies intended to assist DBEs and other small businesses are suggested in the Federal DBE Program. Metro is implementing some of these programs, including orientation for new bidders and an insurance referral program. It should develop programs for other services or partner with organizations providing such assistance. Fully implementing these neutral efforts may require additional financial resources. Subcontracting minimum. Subcontracting accounted for a relatively small percentage of total Metro FTA-funded contract dollars for October 2006 December 2007 (12%). The proportion of total FTA-funded contract dollars going to subcontractors declined from 47 percent for 2003 through September, Although the nature of projects somewhat differed for the October 2006 through December 2007 time period, prime contractors may have retained more of the contract amount and reduced their overall use of subcontractors after the change in program, even with Metro subcontracting programs. 12 Only 11 percent of the dollars of locally-funded contracts was subcontracted. Metro could consider initiating a program similar to the Mandatory Subcontracting Minimum (MSM) program operated by the City of Los Angeles. For each contract above a certain dollar amount, Metro would set a percentage to be subcontracted. Prime contractors bidding on the contract would need to subcontract a percentage of the work equal to or exceeding the minimum for their bids to be deemed responsive. 13 Participation of minority- and women-owned firms is relatively high for Metro s subcontracted work, even when the DBE goals/good faith efforts program is not applied. A subcontracting minimum program corresponds to a neutral remedy listed in the Federal DBE Program ( requiring or encouraging prime contractors to subcontract portions of work that they might otherwise perform with their own forces ) From interviews with business owners and others in the local industry, the economic downturn in 2008 and 2009 may have further reduced the amount of contracts that are subcontracted out. 13 Metro should include flexibility in the program, including the opportunity for the prime contractor to request a waiver (preferably before time of bid so that the waiver would apply to each prime) CFR Section (b)(1). BBC RESEARCH & CONSULTING SECTION ES, PAGE 7

42 Small business program for prime contractors. Metro should also consider expanding its small business program to encourage certified small business participation as prime contractors. The City of Los Angeles and the State of California operate programs for small business prime contractors that Metro could evaluate. For example, the State limits bidding for certain contracts to certified small businesses. 15 DALP program. Metro might evaluate whether or not it should continue its DALP program in its present form. Some courts have interpreted similar voluntary goal language in bid documents that encourages participation to be race- and gender-conscious. d. Are there firm, written, detailed commitments in place from contractors to take concrete steps sufficient to generate a certain amount of DBE participation through race-neutral means? Metro continues to encourage prime contractors to involve MBE/WBEs as subcontractors in its FTA-funded contracts; this is done on a voluntary basis. e. To what extent have DBE primes participated in the recipient s programs in the past? MBE/WBEs accounted for 7 percent of prime contract dollars on FTA-funded contracts from 2003 through Participation of certified DBEs was about 3 percent of FTA-funded prime contract dollars. f. To what extent has the recipient oversubscribed its DBE goals in the past? Only counting certified DBEs, BBC estimated utilization of 22 percent of the dollars of FTA contract/subcontract awards for October 2006 through December Metro s annual DBE goal was 13 percent for FFY Overall percentage to be achieved through neutral means. For October 2006 through December 2007, Metro s utilization of minority- and women-owned firms for FTA-funded contracts was 92 percent of what it would be expected given MBE/WBE availability for these contracts. However, Metro should consider how it might meet more (or all) of its annual aspirational goal through neutral means, in accordance with federal regulations in 49 CFR Section Potential effect of a subcontracting minimum program. By increasing contract dollars going to subcontractors (which has high MBE/WBE participation, even without DBE contract goals), a new Metro subcontracting minimum program might increase overall participation of minority- and women-owned firms to a level equal to the overall annual aspirational goal (see Section VI). Possible effect of other programs. Metro could consider an expanded small business program for prime contracts. BBC was unable to quantify the potential impact of an expanded program on Metro s DBE utilization from the information available in the disparity study. 15 The State and City of Los Angeles programs focus on non-federally-funded contracts, not federally-assisted contracts. BBC RESEARCH & CONSULTING SECTION ES, PAGE 8

43 3. Implementation of the Federal DBE Program The Federal DBE Program requires Metro to meet the maximum feasible portion of its overall goal by using race-neutral means of facilitating DBE participation. In making a policy decision to engage in any other remedy that targets DBEs, if it determines such a remedy is needed, Metro should consider this disparity study and additional pertinent information per 49 CFR Part 26. Additional neutral efforts. Additional race- and gender-neutral efforts are discussed above and in Section VI of the report. These include technical assistance, financing and bonding assistance and other small business assistance. Metro should partner with other agencies and local small business assistance organizations in providing this assistance. Reintroduction of DBE goals/good faith efforts. If after tracking the effectiveness of neutral remedies Metro considers reinstating DBE contract goals/good faith efforts, it will want to carefully examine which groups exhibit disparities in contracts without the DBE subcontracting goals/good faith efforts program (for example, women-owned firms and Hispanic American-owned firms showed disparities in October 2006 December 2007). Guidance from the FTA indicates how a local transportation agency would operate any future DBE contract goals program in which eligibility is limited to certain race/ethnic/gender DBE groups. 16 Only DBEs owned by those groups would count toward meeting a DBE contract goal. Other DBEs would still participate in Metro contracting in other ways (e.g., meeting a mandatory subcontracting minimum or potentially participating in a small business prime contractor program). Metro would include all DBE groups when preparing DBE participation reports to FTA. If Metro were to adopt an approach similar to the above example, it would need to request a waiver from USDOT to limit participation in this program component to certain groups. Tracking MBE/WBE as well as DBE utilization. Metro needs metrics to track success in addition to those suggested in the Federal DBE Program, including careful tracking of MBE/WBEs (not just DBE participation) in both FTA-funded and locally-funded contracts. Periodic review. Ongoing review of program effectiveness is a requirement of 49 CFR Part 26.As part of meeting this requirement, for example, certain state transportation agencies are planning to complete new disparity studies every three to four years. If Metro chooses to pursue a solely race- and gender-neutral implementation of the Federal DBE Program for the immediate future, it should monitor utilization and availability of minority- and women-owned firms, by group. Metro may need to consider adding certain race- and gender-conscious remedies in the future if a solely neutral program is not effective in addressing any disparities in its utilization of minority- and women-owned firms on FTA-funded contracts BBC RESEARCH & CONSULTING SECTION ES, PAGE 9

44 4. Programs Applicable to Locally-funded Contracts Neutral remedies. Metro could consider applying the neutral remedies explored here to its locallyfunded contracts as well as FTA-funded contracts. For example, a subcontracting minimum program might be applied, as needed, across areas of Metro contracts. Race- and gender-based remedies. At present, Proposition 209 (Article I, Section 31 of the California Constitution) prohibits Metro from implementing programs including race, ethnic or gender preferences related to its locally-funded contracts. However, Metro should monitor developments in a case involving San Francisco s implementation of a race- and gender-conscious program for its locally-funded contracts. 17 At the time of this disparity study report, the issues raised in this case were under review by the California Supreme Court. Summary Metro achieved high overall levels of minority and female business participation in its FTA-funded contracts after it discontinued use of a DBE contract goals/good faith efforts program. Metro can build on this success through a number of new and expanded programs that assist small businesses including DBEs. Certain initiatives pertain to Metro contracting processes and others will require additional financial resources and collaboration with other local agencies small business programs. Metro should consider a higher overall aspirational goal for future DBE participation than the 8 percent level used for FFY Metro will need new and expanded programs to meet a higher annual DBE goal. If Metro s ongoing tracking indicates programs beyond neutral efforts may be needed in the future, the Federal DBE Program provides guidance on how to consider and potentially implement programs for specific DBE groups. 17 Coral Construction, Inc. v. City and County of San Francisco, 57 Cal.Rptr.3d 781 (1st Dist. 2007), review granted 167 P.3d 25 (Cal. Aug. 22, 2007). BBC RESEARCH & CONSULTING SECTION ES, PAGE 10

45 Los Angeles County Metropolitan Transportation Authority Southern California Regional Disparity Study Final Study Briefing Tashai R. Smith, Contract Compliance Manager Transportation Business Advisory Council (TBAC) Meeting May 6, 2010

46 Background Comply with 49 CFR Part 26 and implement Federal DBE Program Develop overall DBE goal for FTA-funded contracts Meet maximum feasible portion using neutral means Ninth Circuit in Western States Paving v. WSDOT requires: Review of evidence of discrimination within own contracting market Limiting race-conscious measures to affected groups Metro discontinued use of DBE contract goals in October 2006

47 Regional Disparity Study Began in December 2007 Jointly conducted with MTS, Metrolink, OCTA and SANDAG Included public forums in October 2009 Analyzed over 5,400 LACMTA contracts/subcontracts Analyzed availability using a database of 2,480 firms Included qualitative information from 160+ in-depth personal interviews and about 500 telephone interviews Integrated information from other disparity studies in California Final study completed January 2010

48 MBE/WBE Prime/Subcontract Dollars Neutral Program DBE contract goals FTA-funded contracts 2003-Sept FTA-funded contracts Oct Dec Locally-funded contracts

49 Overall Goal LACMTA has 8% DBE goal for FFY 2010 Disparity study analysis suggests base figure of 8.4% Can make an upward or downward step 2 adjustment overall goal could be 11.3% Looking Forward 1. An analysis of future work can be used to further modify goal 2. If mix of work in FY11 and future years is different from contracts reviewed during study period in construction, engineering and professional services a higher base figure is plausible

50 Calculations of Base Figure for Overall Goal (a) FTA-funded (b) (c) (d) contract dollars Percent Availability Components (millions) of dollars (potential DBEs) of goal (b)*(c) Contracts considered in the annual goal Construction $ % 7.9 % 4.7 % Engineering/professional services Goods and services Other similar to above contracts Other not similar to above contracts* Total examined $1, % 8.4 % 6

51 Disparity Indices for MBE/WBE Utilization as Primes and Subs, FTA-funded Oct Dec Race-Neutral Period FTA-funded Oct Dec MBE/WBE 108 WBE 47 African American 101 Asian-Pacific American Subcontinent Asian American Hispanic American 41 Native American

52 Summary of information on local marketplace Disparities for women and certain minority groups in the local marketplace Education Representation in the workforce Advancement and working as managers Business ownership Access to capital Business success Some interviewees reported the existence of discrimination in the local marketplace while some did not 8

53 Future Implementation of Federal DBE Program for FTA-funded Contracts Meet maximum feasible portion of overall goal through race neutral means If LACMTA considers reinstating DBE contract goals/good faith efforts: Request waiver from FTA if not all groups are included, and Continue to encourage all small businesses to participate in neutral parts of program 9

54 Race-Neutral Program Remedies Disparity Study suggests the following race-neutral programs to increase DBE participation: Mandatory Subcontracting Minimum (MSM) Program Preference or Restrict Bidding to Small Business Primes Other Programs Mentor-protégé Technical Assistance Finance and Bonding Assistance 10

55 Final Study Document The Metro Final Disparity Study Document is Available On-line 11

56 NEXT STEPS TBAC to Draft Receive & File Report for June 2010 Metro Executive Management & Audit Committee (EMAC) Include TBAC Input/Recommendations on Disparity Study Results and Future Implementation of DBE Program Draft Report due to DEOD: Monday, May 17, 2010 Final Report due to DEOD: Monday, May 24, 2010 TBAC to Present Report at June EMAC Meeting 12

57 QUESTIONS & ANSWERS

58 Small Business Mentoring Program May 6, 2010

59 Mission Increase the pool of small business participation in transportation projects.

60 Goals & Objectives Mentoring Program that pairs small businesses with large firms Enhance small business operations so that they can achieve their growth potential Create small business opportunities that provide more meaningful participation in transportation projects Establish an entry point for small firms who desire to do business with Caltrans and other public agencies Develop business relationships that cultivate new opportunities for both large and small firms

61 Operation Philosophy Voluntary program to enhance communication between large and small firms Flexible program that is needs specific Relationship based program to enhance your business opportunities

62 Why Should An SBE Participate? Develop more meaningful relationship with large firms Enhance readiness to pursue business opportunities Additional perspectives on successful business practices

63 How Does a Large Firm Stand to Benefit? Develop a greater confidence level with the SBE Create new business opportunities enhanced by the SBE relationship Recognition for supporting SBE participation in transportation

64 Why Does Caltrans Care About the Mentor Protégé Program? Tapped resources that would otherwise not be available to Caltrans Develop a broad base of qualified SBE firms Caltrans recognizes that SBE s firms are the economic engine of the state

65 Our Measured Success 21 pairings (an increase of 7 over the last two years) 32 mentors and 48 protégé s 30-31% SBE expenditure on on-going contracts 17 contracts awarded to SBE firms (Over the last two years ~ $50 million worth of contracts to SBEs) Year Amount 1st $ 20,000, nd $ 30,000, TOTAL: $ 50,000,000.00

66 Strategies for Successful Pairing Mentor should not take on more than two protégés MOUs should include clear achievable objectives Participants must champion the program within their respective company Mentor-Protégé relationship duration should be one year Make it fun

67 How Do I Start?

68 Enrollment Process Submit application to mentor Discuss opportunity to establish a mentor-protégé relationship Develop a MOU File MOU with Caltrans File with: Jay Shah 100 South Main Street Los Angeles CA, (213) jay.shah@dot.ca.gov

69 Caltrans Look ahead Report Welcome to the Caltrans statewide look-ahead website! This website has been developed to provide a single reliable source of information to the contracting industry regarding the Department s planned construction contracts to assist industry to better plan for its resource, equipment and material needs. The projects are listed here 12 months in advance. The projects are updated at least monthly. Projects can be sorted by: District, EA, County, Route, Post Mile, Cost Range, Duration, Advertised Date, or Date Last Updated. Just click on any of the underlined headings to sort.

70 District Contacts for Information District 7 District 8 Alberto Angelini Phone: (213) alberto.angelini@dot.ca.gov Manuel Farias Phone: (909) manuel.farias@dot.ca.gov District 12 Saeid Asgari Phone: (949) saeid.asgari@dot.ca.gov District 12 Maria Espinoza-Yepez Phone: (949) maria.espinoza-yepez@dot.ca.gov

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72 NBA ALL-STAR VENDOR DIVERSITY PROGRAM Los Angeles - February 20, 2011 NBA ALL-STAR- GENERAL INFORMATION The 2011 All-Star Game will take place on Sunday, February 20, 2011 at the Staples Center in Los Angeles. All-Star related activities will be on-going through-out the week. One of All-Star's most popular attractions is NBA All-Star Jam Session, the world's largest interactive basketball theme park, which will be held at the Los Angeles Convention Center, Thursday, February 17 through Sunday, February 20. Jam Session will attract upwards of 100,000 fans. The T-Mobile Rookie Challenge and NBA All-Star Saturday night festivities will take place on Friday and Saturday nights. Also, the NBA Cares All-Star Community Caravan will conduct various projects in local communities including school visits, basketball celebrations and hands-on service projects meant to leave a lasting legacy to our host city. THE NBA ALL-STAR VENDOR DIVERSITY PROGRAM The All-Star Vendor Diversity Program has been providing opportunities to Woman and Minority owned vendors to participate in the All-Star procurement process for over a decade. The Vendor Program is the primary resource for All-Star related procurement. Working in partnership with city agencies, local certifying organizations and business advocacy groups the NBA will identify certified woman and minority-owned businesses in the Greater Los Angeles area. City of Los Angeles Mayor s Office of Economic Development Los Angeles County Metropolitan Transportation Authority Women s Business Enterprise Council West The Southern California Minority Supplier Business Development Council In conjunction with these partners the NBA will disseminate information and applications to the local business community. The application process will begin on 5/15/2010 and will close on 9/1/2010. All vendors will receive notification of their status via an response.

73 NBA ALL-STAR VENDOR DIVERSITY PROGRAM Los Angeles - February 20, 2011 THE NBA ALL-STAR VENDOR DIVERSITY PROGRAM Upon completion of the application process all approved vendors will be included in the Vendor Resource Guide which is produced and distributed via our web-page at The Vendor Resource Guide is provided to all NBA staff and primary vendors responsible for All-Star procurement. The NBA also works with marketing partners and ancillary organizations to further All-Star business opportunities for our Vendor Program participants. Vendors who are approved for participation in the Vendor Resource Guide will be invited to a private local event which takes place in the fall of This Meet the Buyer style event provides our Vendor Program participants an opportunity to meet one-on-one with the NBA staff responsible for full-filling All-Star procurement needs. As purchasing needs for All-Star arise the Vendor Resource Guide database is the central resource for conducting bids. The bid-process is on-going through the All-Star Game. Certain bids may be conducted in the fall but the vast majority of contracts are awarded in the months of December, January and February. Please visit the web-page at: on or after May 15, 2010 for additional information or to apply.

74 NBA ALL-STAR VENDOR DIVERSITY PROGRAM General List of All-Star Products/ Service Needs Advertising (ad conception, creative design, TV/radio spot production) Audio / Visual Awning and Canopy Barricade/ Bike Rack Rentals Building Materials Carpet and Flooring Catering Courier Service Electrical Services/ Supplies Employment Services - Temporary Staffing Event Decor Event Management Fencing-Temporary First Aid/ Medical Services Florist Furniture/ Rental Gifts (items and baskets) Golf Cart - Rentals Graphic Design IT/ Telecomm Janitorial Service/Supplies Linen Rentals Media Buying/ Marketing Office Machines/ Rental - copiers, fax, etc Office Supplies Office Trailers Parking Facility / Valet Service Party Rental/ Pipe, Drape, Chairs, Tent, etc. Photography Plant Rentals Port-o-Lets Printing printed materials (posters, flyers, brochures, invitations, etc. Printing signs and banners (small and large format) Promotional Products Recycling Services/ Waste Removal Security Services Shipping/Trucking Talent Agency DJ s, bands, hosts, emcees, basketball tricksters, etc. Transportation & Bus Transportation - Car Service Transportation - Shuttle Service Tour Services Warehouse Space