SUBJECT: Submission of the City of Santa Clarita Overall Disadvantaged Business Enterprise (DBE) Goal for Federal Fiscal Years

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1 August 1, 2018 Ms. Lynette Little Civil Rights Officer Federal Transit Administration 90 7 th Street, Suite San Francisco, CA SUBJECT: Submission of the City of Santa Clarita Overall Disadvantaged Business Enterprise (DBE) Goal for Federal Fiscal Years Dear Ms. Little: As a condition of federal funding requirements under Title 49 CFR Part 26; Participation by Disadvantaged Business Enterprises in Department in Department of Transportation Financial Assistance Programs, the City of Santa Clarita submits for your review and approval it s Overall Goal for DBE participation in the City of Santa Clarita s federally-assisted contracts. The City of Santa Clarita s Overall DBE Goal for federal fiscal years (FFY) is 5%. The proposed Overall DBE Goal of 5% will be achieved utilizing a 4% race conscious and 1% race neutral application. The City of Santa Clarita has published a Public Notice (enclosed) of its proposed Overall DBE goal on the City s Website. Notices of the City of Santa Clarita s DBE goal were sent to 121 chambers of commerce and trade and community organizations to afford interested citizens the ability to review the proposed overall DBE goal and to comment. Within the past reporting period, the City of Santa Clarita staff has hosted and/or participated in various types of outreach meetings to present information about the City s DBE program, Overall DBE Goal and to seek input regarding barriers to DBE participation. During the calendar years of 2015 through 2018, the City of Santa Clarita staff attended various Small Business, DBE, Minority and/or industry-specific events which allowed the City of Santa Clarita to engage with our small business and minority community s first-hand. A listing of the events, approximate attendees per event and summary of comments received has been attached. The City of Santa Clarita reviews these comments on an on-going basis and provides timely responses. As input received was not specific to the numeric DBE goal developed or the race-conscious/race-neutral breakdown of the goal,

2 Ms. Lynette Little August 1, 2018 Page 2 an adjustment to the City of Santa Clarita s Overall DBE Goal FFYs was not made. The City of Santa Clarita will continue to collect input and engage with the community to ensure our goal and program are responsive to the climate of our contracting community. Should you have any questions regarding this submission, please contact me at (661) , or by at lokeefe@santa-clarita.com or our DBE Consultant, Lauren Jaquith by phone at (714) The City of Santa Clarita appreciates your consideration and looks forward to FTA s approval of City s Overall DBE Goal. Sincerely, Lance O Keefe DBE Liaison Officer Enclosures: The City s Overall DBE Goal Methodology for FFY 2019/21 Public Notice Proof of Website Publishing Community Engagement Labels Exhibit A: Public Participation Matrix

3 CITY OF SANTA CLARITA DISADVANTAGED BUSINESS ENTERPRISE (DBE) ADJUSTED OVERALL DBE GOAL AND METHODOLOGY FOR FEDERAL FISCAL YEARS (FFY) (Covering the period of October 1, 2018 to September 30, 2021) I. INTRODUCTION The City of Santa Clarita (the City) is required to develop and submit a Disadvantaged Business Enterprise (DBE) Overall Goal for DBE participation as a condition of receiving federal assistance, pursuant Moving Ahead for Progress in the 21 st Century; 49 CFR Part 26 Participation by Disadvantaged Business Enterprises in U.S. Department of Transportation Programs and the Federal Transportation Administration (FTA) Master Funding Agreement. II. BACKGROUND Effective March 3, 2010, the United States Department of Transportation ( DOT ) issued a final rule affecting the implementation and management of the Department s Disadvantaged Business Enterprise ( DBE ) program. The final rule, requires submission of a goal-setting methodology on a three-year cycle. Pursuant to this final rule, the City is still required to conduct an annual review to account for changes that may warrant an adjustment to the overall goal or make an adjustment based on changed circumstances (i.e. significant change in the legal standards governing the DBE program, new contracting opportunities presented by the availability of new or different grant opportunities, etc.) to ensure the goal and program as a whole are narrowly tailored throughout the goal period. Under the three-year schedule, the City s DBE goal and methodology submission is due to FTA on August 1, 2018 for proposed FTA funded contracting activities for Federal Fiscal Years (FFY) 2019/21. The City herein presents its Proposed Overall DBE Goal Methodology for FFY 2019/21 goal period, which resulted in a 5% Overall DBE Goal. III. DOT-ASSISTED CONTRACTING PROGRAM FOR FFY Table 1 represents the City of Santa Clarita s U.S. DOT-assisted (FTA) contracting program, which includes one (1) project considered in preparing its Overall DBE Goal-Setting Methodology. This project has viable subcontracting possibilities, a required criterion for Overall Goal consideration, and is anticipated to be awarded within FFYs Table 1 Project Name Vista Canyon Metrolink Station Total Estimated Project Cost (Federal Share) Estimated Federal Dollar Share of Construction Estimated Federal Dollar Share of Professional Services Estimated Federal Dollar Share of Materials & Supplies $19,959,580 $15,731,984 $2,012,526 $2,215,070 TOTAL: $19,959,580 $15,731,984 $2,012,526 $2,215,070

4 City of Santa Clarita FTA Overall DBE Goal For FFY Table 2 provides a summary of work grouped into one (3) primary categories: Construction, Professional Services and Materials and Supplies, utilizing the North American Industry Classification System (NAICS) work categories and comparable 2016 Census Business Patterns NAICS Work Codes. Table 2 also serves to identify the estimated Federal Dollar Share and the Percent of Federal funding, as follows: Table 2 Construction CONTRACT CATEGORY Professional Services Materials & Supplies NAICS CUCP DATABASE , , , , , , , , , , , , , , , , , , , , , , , , ESTIMATED FEDERAL DOLLAR SHARE % OF FEDERAL FUNDING $15,731, % $2,012, % $2,215, % TOTAL $19,959, % Table 3 was developed in an effort to utilize the most refined data available and provides a summary of work grouped into scope of work categories within the overall primary work categories: utilizing the North American Industry Classification System (NAICS) work categories and comparable 2016 Census Business Patterns NAICS Work Codes. Table 3 also serves to identify the estimated Percent of Federal Funding per related scope of work, as follows: Table 3 CATEGORY OF WORK NAICS CODES Weighting* Water, Sewage, and Other Systems % Water and Sewer Line and Related Structures Construction % Highway, Street and Bridge Construction % Poured Concrete Foundation and Structure Contractors % Structural Steel and Precast Concrete Contractors % Masonry Contractors % Electrical Contractors % Plumbing, Heating and Air Conditioning Contractors % Site Preparation Contractors % All Other Specialty Trade Contractors % Brick, Stone, and Related Construction Material Merchant % Wholesalers Metal Service Centers and Other Metal Merchant Wholesalers % Electrical Apparatus and Equipment, Wiring Supplies, and Related % Equipment Merchant Wholesalers Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers %

5 City of Santa Clarita FTA Overall DBE Goal For FFY Other Miscellaneous Durable Goods Merchant Wholesalers % Petroleum Bulk Stations and Terminals % General Freight Trucking, Local % Specialized Freight Trucking, Local % Support Activities for Rail Transportation % Architectural Services % Engineering Services % Custom Computer Programming Services % Computer Systems Design Services % Administrative Management and General Management Consulting % Services Environmental Consulting services % Landscaping Services % All Other Support Services % Total: 100% IV. GOAL METHODOLOGY Step 1: Determination of a Base Figure (26.45) 1 To establish the City Santa Clarita s Base Figure of the relative availability of DBEs to all comparable firms (DBE and Non-DBEs) available to propose on the City of Santa Clarita s DOTassisted contracting opportunities projected to be solicited in the remaining goal period; the City of Santa Clarita followed the two-step process federally prescribed for goal-setting in accordance with 49 CFR Part regulations. This was accomplished by accessing the California Unified Certification Program (CUCP) Directory of Certified DBE Firms and the 2016 U.S. Census Bureau County Business Patterns (CBP) Database. Comparisons were made within the City of Santa Clarita s market area (defined as Los Angeles, Riverside and Orange County[LJ1]) and by specified industries and types of businesses identified in Table 2. The City of Santa Clarita s local market area represents where the substantial majority of the City of Santa Clarita s contracting dollars are expended and/or where the substantial majority of contractors and subcontractors bids or quotes are received. The City of Santa Clarita made a concerted effort to ensure that the scope of businesses included in the numerator was as close as possible to the scope included in the denominator. For corresponding detail of all work category classifications grouped, refer to Table 4. For the numerator: California UCP DBE Database of Certified Firms For the denominator: 2016 U.S. Census Bureau s Business Pattern Database (CBP) To determine the relative availability of DBEs, the City of Santa Clarita divided the numerator 2 representing the ratio of ready, willing and able DBE firms, by the denominator 3 representing all firms (DBE and Non-DBEs) available in each work category. Application of this formula yielded the following baseline information: represents Title 49 CFR Part 26 regulatory referenced section. 2 Numerator represents all DBE firms established within the City s market area. 3 Denominator represents all comparable available established firms.

6 City of Santa Clarita FTA Overall DBE Goal For FFY Number of Ready, Willing and Able DBEs = BASE FIGURE Number of All Available Firms (including DBEs and Non-DBEs) The Base Figure was further weighted by contract type and corresponding contract value. The Base Figure resulting from this weighted calculation is as follows: Step 1: Base Figure (weighted by type of work to be performed and corresponding contracting dollars) Table 4 CATEGORY OF WORK NAICS CODES Weighting* Step 2: Adjusting the Base Figure DBE Availability % Upon establishing the Base Figure, the City of Santa Clarita reviewed and assessed other known evidence potentially impacting the relative availability of DBEs within the City of Santa Clarita s Base Figure % by NAICS Water, Sewage, and Other Systems % 15% % Water and Sewer Line and Related Structures Construction % 30% % Highway, Street and Bridge Construction % 100% % Poured Concrete Foundation and Structure Contractors % 8% % Structural Steel and Precast Concrete Contractors % 40% % Masonry Contractors % 2% % Electrical Contractors % 2% % Plumbing, Heating and Air Conditioning Contractors % 1% % Site Preparation Contractors % 6% % All Other Specialty Trade Contractors % 15% % Brick, Stone, and Related Construction Material Merchant % 15% % Wholesalers Metal Service Centers and Other Metal Merchant Wholesalers % 4% % Electrical Apparatus and Equipment, Wiring Supplies, and Related % 6% % Equipment Merchant Wholesalers Transportation Equipment and Supplies (except Motor Vehicle) % 10% % Merchant Wholesalers Other Miscellaneous Durable Goods Merchant Wholesalers % 4% % Petroleum Bulk Stations and Terminals % 4% % General Freight Trucking, Local % 7% % Specialized Freight Trucking, Local % 50% % Support Activities for Rail Transportation % 54% % Architectural Services % 2% % Engineering Services % 13% % Custom Computer Programming Services % 6% % Computer Systems Design Services % 10% % Administrative Management and General Management Consulting % 16% % Services Environmental Consulting services % 21% % Landscaping Services % 2% % All Other Support Services % 2% % Total: 100% 13.34% Base Figure 13.34% *70% (30% Prime to Perform Factor) = 9.3% 9% (Rounded to the nearest whole number)

7 City of Santa Clarita FTA Overall DBE Goal For FFY market area, in accordance with prescribed narrow tailoring provisions set forth under 49 CFR Part Step 2; DBE Goal Adjustment guidelines. Evidence considered in making an adjustment to the Base Figure included the City of Santa Clarita s Past DBE Goal Participation, Disparity Studies, and Other Evidence, as follows: A. Past DBE Goal Participation The City of Santa Clarita considered an adjustment to the Base Figure based on historical DBE goal participation on similar contracts to those contracting opportunities identified and considered in the Overall DBE Goal Analysis for the remaining goal period. Attainment data from six (6) reporting periods was reviewed. Upon examination of the projects procured within the reporting periods it was found that several of the periods included projects that were not similar to the project anticipated to be procured in the upcoming FFY 2019/21 (Vista Canyon Metrolink Station) goal period, those projects were omitted. A description of the omitted projects can be reviewed in Table 5 below: Table 5 Reporting Period Contracts Omitted Dollar Value of Omitted Contracts 15-Jun None $0.00 $0.00 Total Dollar Value by Reporting Period 15-Dec None $0.00 $0 16-Jun 5-45' CNG Commuter Buses $3,076, $3,637, DAR CNG Vehicles $543, Installation of Technology on Commuter Buses $17, Dec Design for the Vista Canyon Multi-Modal Center $701, $701, Jun Installation of Technology on Commuter Buses $24, $2,512, CNG DAR Vehicles $252, Purchase and Installation of Solar Inverter at the TMF $69, Dec 100% Design Contract $2,152, Property Title Reports $14, Procurement and Installation of On-Board Video $177, $301, Surveillance Cameras Replacement of Wireless Devices Onboard Commuter $35, Fleet (WiFi) Technology Equipment for Buses $39, Installation of Technology on Commuter Buses $25, Design Work on existing fiber line along SCRRA tracks for the Vista Canyon Multi-Modal Center $23,662.40

8 City of Santa Clarita FTA Overall DBE Goal For FFY The City omitted these projects from the analysis and reviewed attainment data collected from projects with similar scopes to the Vista Canyon Metrolink Station project that were awarded within the six (6) reporting periods reviewed. A median DBE participation of 0% was found, as detailed in Table 5 below: Overall Goal by Fiscal Year Semi-Annual Reporting Period 7% (Oct 1-Mar 31) Jun-15 7% (Apr 1-Sep 31) Dec-15 5% (Oct 1-Mar 31) June-16 5% (Apr 1-Sep 31) Dec-16 4% (Oct 1-Mar 31) June-17 4% (Apr 1-Sep 31) Dec-17 Table 5 Total Dollar Value of Contracts Awarded Total Dollars Awarded to DBE(s) DBE Attainment $688, $0 0% $207, $0.00 0% $4, $0.00 0% $668, $33, % $91, $0.00 0% $2, $0.00 0% Median % of Past Participation Past participation arranged, low to high: 0%, 0%, 0%, 0%, 0%, 5% Average of the two numbers which fall in the middle: 0% + 0% / 2= 0% As the City reviewed 6 periods with projects containing similar scopes to the project anticipated for award in FFYs 2019/21, the City has elected to utilize the median of 0% and make a downward adjustment to the base figure from 9% to 5%. The formula follows below: Median Past Participation = 0% Average + Step I Base Figure = 9% + 0% = 9% Base Figure Adjusted = 9% = 4.5% 2 Adjusted Base Figure = 5% (Rounded) B. Evidence from Disparity Studies The City of Santa Clarita did not find it feasible to conduct its own independent availability/disparity study; however, the City identified two (2) disparity studies, inclusive market areas

9 City of Santa Clarita FTA Overall DBE Goal For FFY like the City s, to consider whether a Race-Conscious DBE Program should continue to be implemented. The 2 identified Disparity Studies were the Caltrans Disparity Study and The Los Angeles County Metropolitan Transportation Authority (Metro) Disparity Study. The first Disparity Study considered was that of the California Department of Transportation (Caltrans), completed in 2016 due to the timeliness of the contracts reviewed. The Caltrans Disparity Study reviewed Construction and Engineering contracts state-wide between the years January 1, 2011 to December 31, As the Caltrans Disparity Study included thousands of contracts from areas outside of the City s market area as well as projects that had no relation to the scopes included in the upcoming goal period, the City opted to not utilize this Disparity Study to apply an adjustment to their current race-neutral/race-conscious DBE application measures. The second Disparity Study taken into consideration was Metro s Disparity Study due to the similarities in market area and timeliness of the contracts reviewed. Where the Caltrans Study market area included the entire state of California, the Metro Study focused on Los Angeles County which is more aligned with the Authority s market area. The Metro Disparity Study was initiated in November 2016 and included a five-year study period (January 1, 2011 through December 31, 2015) to determine any differences between the participation of minority- and woman-owned businesses in relevant contracts and the availability of those businesses to perform that work (referred to as disparities). Disparity analysis results indicated that most racial/ethnic and gender groups showed disparities on contracts where race- and gender-conscious measures were not in place during the study period. As a result, the Disparity Study recommended the use of contract DBE goals. As Metro s Disparity Study satisfies the legal standards established by the Ninth Circuit Court of Appeals in Western States Paving Co., Inc. v. Washington State Department of Transportation, and guidance from the U.S. Department of Transportation/Federal Transit Administration (FTA) concerning the implementation of race-conscious application, the Authority has elected to utilize this study as a basis for continuing to implement the race-conscious component of their Overall DBE goal. The City will ensure that the use of race-conscious goals is narrowly tailored and consistent with other relevant legal standards. The City will continue to review applicable Disparity Studies as they become available and apply the appropriate adjustments to their Race-neutral/Race-Conscious DBE goal application. C. Other Evidence The City of Santa Clarita did not receive any anecdotal evidence nor is aware of any other factors or adverse considerations that would have had a material effect on DBEs availability within the City of Santa Clarita s marketplace, or on DBEs ability to participate (meeting bonding, insurance and financial requirements) in the City of Santa Clarita s FTA-assisted contracting programs. Therefore, no goal adjustment was made in consideration of this factor. However, the City of Santa Clarita will continue to explore and consider all available evidence that materially would affect the opportunities for DBEs to form, grow, and compete in the City of Santa Clarita s FTAassisted contracting programs. OVERALL DBE GOAL AND PROJECTION OF RACE-NEUTRAL AND RACE- CONSCIOUS PARTICIPATION:

10 City of Santa Clarita FTA Overall DBE Goal For FFY The Overall DBE Goal for FFY for the City of Santa Clarita s FTA-assisted contracts is 5%. The Overall Goal is expressed as a percentage of all DOT-assisted funds that the City of Santa Clarita will expend in applicable DOT-assisted contracts in the given federal fiscal years. The goal further serves to identify the relative availability of DBE s based on evidence of ready willing, and able DBE s to all comparable firms, which are known to be available to compete for and perform on the City of Santa Clarita s DOT-assisted contracts. V. RACE-NEUTRAL/RACE-CONSCIOUS BREAKOUT ANALYSIS A. Consider the Amount by Which You Exceeded Your Goals in the Past. The City of Santa Clarita considered the amount by which the City exceeded their overall goals in past years as a useful indicator in projecting the race/gender-neutral participation the City could expect in the future. The City examined participation data from six (6) reporting periods to assess the median percent that the goal in each period was exceeded, see the table below: Overall Goal by Fiscal Period Semi-Annual Reporting Period 7% (Oct 1-Mar 31) Jun-15 7% (Apr 1-Sep 31) Dec-15 5% (Oct 1-Mar 31) June-16 5% (Apr 1-Sep 31) Dec-16 4%* (Oct 1-Mar 31) June-17 4%* (Apr 1-Sep 31) Dec-17 Total Dollar Value of Contracts Awarded Total Dollars Awarded to DBE(s) $688, $0 $207, $0.00 DBE Attainment % Goal was Exceeded 0% 0% $4, $0.00 5% 0% $668, $33, $91, $0.00 0% 0% $2, $0.00 Median % of Past Participation that Exceeded Overall Goal Past Attainments arranged, low to high: 0% + 0% + 0% Median: 0% The City found the median amount goals were exceeded in the past to be 0%. The 0% median in DBE achievement represents DBE participation that exceeded what the City predicted contractors 0%

11 City of Santa Clarita FTA Overall DBE Goal For FFY should be able to attain based on the contracts forecasted within each goal period. As the Median percentage of Past Participation that exceeded the respective goal in the corresponding periods came to 0%, the City has found it reasonable to assume, that based on this data contractors/consultants would not be able to exceed the City s Overall Goal of 5% utilizing strictly race-neutral measures. B. Consider Past Participation by DBE Prime Contractors The City of Santa Clarita considered the amount of past participation which resulted through the use of DBE primes in past years as a useful indicator in projecting the race/gender-neutral participation the City could expect in the future. The City examined participation data from six (6) reporting periods to assess the participation received from DBE Primes, see table below: FFY Total Dollar Value Awarded to DBE Primes Reporting Period Total Dollar Value of Awarded Contracts 2017 $ /1/15-09/30/17 $2, $ /1/15-03/31/17 $91, $33, /1/16-09/30/16 $668, $ /1/14-03/31/16 $4, $ /1/14-09/30/15 $207, $ /1/13-03/31/15 $688, Total: $33, $1,663, % DBE Prime Participation Total Dollar Value Completed by DBE Prime ($33,772.00) / Total Dollar Value of Awarded Contracts ($1,663,279.00) = 2% DBE Prime Participation Review of the six periods demonstrated that one DBE prime was awarded in the prior three-year period with a scope similar to the project projected to be awarded in the upcoming triennial period. The City has found it reasonable to assume, that based on this DBE prime participation data, the City could meet 2% of its proposed goal for FFYs 2019/21 utilizing DBE Primes in a strictly raceneutral environment. 2% C. Consider Past Participation by DBE Subcontractors on Contracts Without Goals The City of Santa Clarita considered the amount of past participation which resulted through the use of DBE subcontractors in past years as a useful indicator in projecting the race/gender-neutral participation the City could expect in the future. The City examined participation data from six (6) reporting periods to assess the participation received from DBE subcontractors, see table below: FFY RN/RC Application Period Total Dollar Value Awarded to DBE Subcontractors Reporting Period Total Dollar Value of Awarded Contracts 2017 RN $ /1/15-09/30/17 $2, RN $ /1/15-03/31/17 $91, RN $ /1/15-09/30/16 $668, RN $ /1/14-03/31/16 $4, RN $ /1/14-09/30/15 $207,973.00

12 City of Santa Clarita FTA Overall DBE Goal For FFY RN $ /1/13-03/31/15 $688, Total: $0.00 $1,663, % DBE Prime Participation Total Dollar Value Awarded to DBE Subs ($0.00) / Total Dollar Value Awarded ($1,663,279.00) = 0% 0% Review of the six periods demonstrated that utilization of DBE subcontractors on contracts without goals, with scopes similar to the project projected to be awarded in the upcoming triennial period resulted in 0% DBE utilization. This utilization is in line with the anticipated goal for the triennial goal period of 4%. Based on this data the City finds it reasonable to conclude that the City cannot reach the goal of 5% utilizing DBE subcontractors with strictly race-neutral measures. D. Consider MBE/WBE/DBE Participation Pursuant to Race/Gender- Neutral State or Local Programs Currently the City doesn t not have in place a mechanism for tracking participation of MBE/WBE and DBEs pursuant to Race/Gender-Neutral State or Local Programs. The City is working with their online bidding application (PlanetBids) to develop tools to capture this data so that it may be used in future goal setting methodologies. When enough data has been collected for analysis, additional programs and/or race-neutral measures will be considered for implementation. E. Consider Concrete Plans to Implement New Race-Neutral Methods. The City will be implementing new and comprehensive mechanisms to raise awareness regarding the DBE program and to ensure Prime contractors are aware of the requirements and feel at ease with the program. The City believes that improving awareness will lead to higher numbers in utilization by it s Prime subcontracting community. F. Consider Past History of Inability to Achieve Goals. The City of Santa Clarita achieved its Overall goal in one out of three federal fiscal years. Overall Goal by Fiscal Period Semi-Annual Reporting Period 7% (Oct 1-Mar 31) Jun-15 7% (Apr 1-Sep 31) Dec-15 5% (Oct 1-Mar 31) June-16 5% (Apr 1-Sep 31) Dec-16 4% (Oct 1-Mar 31) June-17 4% (Apr 1-Sep 31) Dec-17 Total Dollar Value of Contracts Awarded Total Dollars Awarded to DBE(s) DBE Participation $688, $0.00 0% $207, $0 $4, $0.00 5% $668, $33, $91, $0.00 0% $2, $0.00

13 City of Santa Clarita FTA Overall DBE Goal For FFY % DBE Participation Total Dollar Value Awarded to DBEs ($33,772.00) / Total Dollar Value of Awarded Contracts ($1,663,279.00) = 2% DBE Participation 2% An average DBE participation value of 2% was achieved by the participation of DBE firms in the Race- Neutral (RN) periods above. on projects with scopes similar to the project projected to be awarded in the upcoming triennial period. As the 2% DBE participation was yielded from utilization of a DBE Prime and that participation is captured in Section B above the City has opted not to include this in the analysis to avoid double counting. G. Race-Neutral/Race-Conscious Breakout As the City reviewed three years of DBE Participation data for projects with similar scopes and values to the projects in the upcoming goal period, the City can reasonably assume that the rates of RN DBE participation reflected are an accurate reflection of DBE capacity to perform race-neutrally in the 2019/21 overall goal period. The City added the three RN percentages together and divided that number by three to find the average RN participation projected to be attained in the coming goal period. The City has applied this to the proposed DBE Goal to project the necessary race-conscious/race-neutral breakout, as illustrated below: % Goals Exceeded in Past = 0% RN DBE Prime Participation = 2% RN DBE Sub Participation = 0% 0% (% Goals Exceeded in Past) + 2% (RN DBE Prime Participation) + 0% (RN DBE Sub Participation) = 2% 2% / 3 =.67% (Average RN Participation) 1% RN Projection (Rounded to the nearest whole number) DBE Goal: 5% RN Application 1% / RC Application 4% Consistent with the FTA guidance provided and the reasons delineated above the City has found it advisable to implement the race-neutral/race-conscious breakout illustrated above to meet the proposed Overall DBE Goal (5%) in accordance with 49 CFR Part H. Monitor DBE Participation to Determine Whether an Adjustment to the Use of Race/Gender-Conscious Measures is Necessary The City will continue to monitor its DBE participation during the overall goal period to determine whether the application of the City s race-neutral/race-conscious measures to meet the proposed Overall DBE Goal (5%) remains on target. the City will adjust the application of race/gender-neutral and race/genderconscious measures, as necessary to ensure the City meets the maximum feasible portion the overall goal by using race/gender-neutral means of facilitating DBE participation. This race-neutral projection is in conformance with Title 49 CFR Part 26; Participation by Disadvantaged Business Enterprises in Department of Transportation Programs and in further response to FTA Notices issued to Public Transportation Providers regarding DOT s DBE Program and Race-Neutral Policy Implementation Guidance.

14 City of Santa Clarita FTA Overall DBE Goal For FFY The City of Santa Clarita will implement Race-Neutral measures to meet its Overall DBE Goal objectives in accordance with 49 CFR Part 26.51, including but not limited to: Arranging timely solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate DBEs and other small business firms participation. Unbundling large contracts to make them more accessible to small businesses, requiring or encouraging prime contractors to subcontract portions of work that they might otherwise perform with their own work forces. Providing technical assistance and other services to small businesses, including DBE firms. Providing information and communications programs on contracting procedures and specific contract opportunities. Aiding small businesses in overcoming limitations in obtaining bonding, lines of credit and building financing capital. VI. PUBLIC PARTICIPATION AND FACILITATION In accordance with Public Participation Regulatory Requirements of Title 49 CFR Part 26, minority, women, local business chambers, and community organizations within the City of Santa Clarita s market area were consulted and provided an opportunity to review the City of Santa Clarita s goal analysis and provide input. The City of Santa Clarita prepared Outreach Consultation Letters advising the aforementioned business community of the proposed DBE goal analysis and its availability for review and comment on the City of Santa Clarita s website. The City of Santa Clarita issued a Public Notice publishing the City of Santa Clarita s Proposed Overall Goal for the FFY 2019/21 FTA-assisted contracts on their website. The Notice informed the public that the proposed goal and rationale were available for inspection on the City of Santa Clarita s website. Additionally, the Public Notice requested participation from the public in a forum to discuss and share their valuable experience and input pertaining to effects of discrimination on opportunities for DBE's in the City of Santa Clarita s market area. The public was informed that the City of Santa Clarita would give full consideration to all comments and input received as a part of the consultation process and would assess its impact on the Proposed Overall DBE Goal. The final Overall Goal submitted to FTA for approval will remain on the City of Santa Clarita s website through the life of the goal period. Additionally, the City of Santa Clarita consults and will continue to consult with minority groups and organizations year-round via event attendance and facilitation to directly solicit the public in-person regarding input they have on DBE opportunities. In the fiscal years leading up to the proposed goal submission (2016 and 2017) the City of Santa Clarita facilitated a Vendor Outreach Fair which included 220 vendors from within the City s market area. The Vendor Outreach fairs provided local stakeholders with an in-person opportunity to share input regarding effects of disparity with in DBE utilization and information that may affect the City s overall DBE utilization percentages. Additionally the City participated in a variety of outreach events targeted at collecting public comments specific to the City s goal development. An overview of these events can be viewed within Exhibit A. Comment review produced the conclusion that the substantial bulk of input received involved questions regarding upcoming contracts and procurement procedures rather than numeric

15 City of Santa Clarita FTA Overall DBE Goal For FFY goal values or race-conscious/race-neutral breakouts, therefore an adjustment to the goal was not necessary.

16 PUBLIC NOTICE City of Santa Clarita NOTICE IS HEREBY GIVEN, that the City of Santa Clarita, (herein referred to as the City ) has established a Proposed Overall Disadvantaged Business Enterprise (DBE) Goal of 5% for Federal Fiscal Years (FFYs) 2019/2021. The City proposes to meet 1% of the goal through the use of race-neutral measures and the remaining 4% through the use of race-conscious measures. The DBE goal is applicable to FTA-assisted contracts scheduled to be solicited and awarded during the period of October 1, 2018 through September 30, The City s Proposed Overall Goal and its rationale (developed in response to DOT s Disadvantaged Business Enterprise Program Regulations published under Title 49 CFR Part 26) are available for inspection and public review on the City s website at clarita.com/city-hall/departments/administrative-services/purchasing/small-and-disadvantaged- business-enterprise-program or from 7:30 a.m. to 5:30 p.m., Pacific Standard Time, Monday through Thursday and 8:00 a.m. to 5:00 p.m. on Friday at our administrative office located at: City of Santa Clarita Valencia Blvd., Suite 300 Santa Clarita, CA Attn: Lance O Keefe Phone: (661) The City will accept comments for thirty (30) days from the date of this Notice. Comments can be forwarded to the City at above stated address. Comments may also be forwarded to the Regional Civil Rights Officer, U.S. Department of Transportation, Federal Transportation Administration, Region IX, 201 Mission Street, Suite 2210, San Francisco, California

17 FFY DISADVANTAGED BUSINESS ENTERPRISE (DBE) GOAL FOR FEDERAL TRANSIT ADMINISTRATION (FTA) ASSISTED CONTRACTS In accordance with 49 CFR Part 26 and as a condition of federal financial assistance agreements with the U.S. Department of Transportation (DOT), the City of Santa Clarita administers a DBE Program in support of contracts and procurements assisted with FTA dollars. The City of Santa Clarita has developed a proposed overall (triennial) DBE goal for the three federal fiscal years beginning October 1, 2018 and ending September 30, The goal has been calculated at five (5%), and was developed using DOT-approved goal-setting methodology as described in 49 CFR In accordance with 49 CFR and as part of the public participation process, The City of Santa Clarita has distributed its goal and methodology to 120+ local/ethnic chambers of commerce and other business/community based organizations dedicated to assisting and growing small and disadvantaged businesses. The proposed 5% goal has been advertised via Public Notice on the City of Santa Clarita s website and in general circulation publications. Click here to view the Public Notice. Click here to view the goal calculation and methodology.

18 Bell Gardens Chamber of 7535 Perry Rd Bell Gardens, CA Burbank Chamber of 200 W Magnolia Blvd Burbank, CA Tom Flavin, CEO ASIAN AMERICAN ECONOMIC DEVELOPMENT ENTERPRISES 216 West Garvey Ave., Unit E Monterey Park, CA Carson Chamber of 530 E. Del Amo Blvd. Carson, CA Richard Chang, Chairman Cerritos Chamber of South Street Cerritos, CA Scott Smith, CEO/President Chinese Chamber of 977 N. Broadway G/Fl., Suite E Los Angeles, CA Greater Los Angeles African American Chamber of 5100 W Goldleaf Cir # 203 Los Angeles, CA Bellflower Chamber of Bellflower Blvd., Ste. A, Bellflower, CA Larry Wehage, President Japanese Chamber of of Southern California 244 S. San Pedro St., #504 Los Angeles, CA Long Beach Chamber of 1 World Trade Center, #206 Long Beach, CA Randy Gordon, CEO/President Korean Chamber of 3435 Wilshire Blvd # 2450 Los Angeles, CA Crescenta Valley Chamber of 3131 Foothill Blvd Ste D La Crescenta, CA Robyn Forrand, Executive Director National Association of Women Business Owners 523 West 6th Street #516 Los Angeles, CA Signal Hill Chamber of 2670 Cherry Avenue Signal Hill, CA Melissa Guy, President San Pedro Chamber of 390 West 7 th Street San Pedro, CA Elise Swanson, Executive Director Alhambra Chamber of 104 S 1st St Alhambra, CA Maureen Aldrige, President/CEO Arcadia Chamber of 388 W Huntington Dr Arcadia, CA Karen MacNair, CEO National Association of Women in Construction P.O. Box Marina Del Ray, CA Southern California Minority Business Development Council 800 W 6th St #850 Los Angeles, CA Claremont Chamber of 205 Yale Ave. Claremont, CA Calabasas Chamber of Calabasas Rd Ste 101 Calabasas, CA Pamela Kissel, President/CEO Catalina Island Chamber & Visitors Bureau PO Box 217 Avalon, CA Jim Luttjohann, President/CEO Los Angeles Area Chamber of 350 S. Bixel Street Los Angeles, CA Century City Chamber of 2029 Century Park E Los Angeles, CA Nancy Wood,C President/CEO Chatsworth/Porter Ranch Chamber of Old Depot Plaza Rd Chatsworth, CA Marnie Nemcoff, Board Chair Granada Hills Chamber of Chatsworth St. Grenada Hills, CA Madlena Minasian Covina Chamber of 935 W Badillo St Ste 100 Covina, CA Dawn Nelson, President/CEO

19 Culver City Chamber of 6000 Sepulveda Blvd Ste 1260 Culver City, CA Janice Beighey, Chair Downey Chamber of Brookshire Ave Downey, CA Jonanna Peterson, President Duarte Chamber of P.O. Box 1438 Duarte, CA , Sheryl Lefmann, President/CEO El Monte/South El Monte Chamber of PO Box 5866 El Monte, CA Ken Rausch, Executive Director Glendale Chamber of 701 N Brand Blvd Ste 120 Glendale, CA Judith Kendall, Executive Vice President/CEO El Segundo Chamber of 427 Main St El Segundo, CA Marsha Hansen, Executive Director Glendora Chamber of 224 N Glendora Ave Glendora, CA Joe Cina, Executive Director Encino Chamber of 4933 Balboa Blvd Encino, CA Mark Levinson, President Hermosa Beach Chamber of & Visitors Bureau 1007 Hermosa Ave Hermosa Beach, CA Maureen Hunt, President/CEO Hollywood Chamber of 6255 Sunset Blvd #150, Los Angeles Hollywood, CA Leron Gubler, President/CEO Irwindale Chamber of PO Box 2307 Irwindale, CA Marlene Carney, President/CEO Beverly Hills Chamber of Santa Monica Blvd. 2 nd Floor Beverly Hills CA Todd Johnson, CEO Bell Gardens Chamber of 7535 Perry Rd Bell Gardens, CA Boyle Heights Chamber of 5269 E. Beverly Blvd. Los Angeles, CA Jennifer Lahoda, President La Canada Flintridge Chamber of 4529 Angeles Crest Hwy Ste 102 La Canada, CA Pat Anderson, President & CEO Conejo Valley Chamber of 600 Hampshire Rd. #200 Westlake Village, CA Jill Lederer, President Industry Manufacturers Council Stafford St City of Industry, CA David Perez, President Lancaster Chamber of 554 W Lancaster Blvd Lancaster, CA Mark Hemstreet, CEO Altadena Chamber of 730 East Altadena Drive Aladena, CA Doug Colliflower, President

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21 Anaheim Chamber of 2099 S. State College Blvd, Ste 650 Anaheim, CA Todd Ament, Chief Executive Officer Brea Chamber of 1 Civic Center Cir Fl. 2 Brea, CA Heidi Gallegos, President Rancho Santa Margarita Chamber of El Paseo Rancho Santa Margarita, CA Jim Poettgen, President Costa Mesa Chamber of 1700 Adams Ave Ste. 101 Costa Mesa, CA Eileen Benjamin, CEO Cypress Chamber of 9200 Valley View Street Cypress, CA Ed Munson, President/CEO Dana Point Chamber of Pacific Coast Hwy Suite 100 Dana Point, CA Jay Styles, Chairman of the Board Irvine Chamber of 36 Executive Park #100 Irvine, CA Bryan Starr, President/CEO Placentia Chamber of 117 N Main St. Placentia, CA Kathi Baldwin, President Laguna Beach Chamber of 357 Glenneyre Street Laguna Beach, CA Meredith Dowling, Executive Director Laguna Niguel Chamber of Crown Valley Pkwy # A Laguna Niguel, CA Debbie Newman, President/CEO Los Alamitos Area Chamber of 3231 Katella Ave Los Alamitos, CA Shelley Henderson, Chairwomen of Board Newport Beach Chamber 4343 Von Karman Ave, Ste. 150-W Newport Beach, CA Steve Rosansky, President Seal Beach Chamber of 201 8th St. #110 Seal Beach, CA McKenze Treasure, Administrative Assistant South Orange County Reg. Chambers of Santa Margarita Pkwy #378 Mission Viejo, CA Wayne Brown, Government Affairs Laguna Hills Chamber of PO Box 3165 Laguna Hills, CA Clement Pepe, President Tustin Chamber of 700 W First St. #7 Tustin, CA Ned Smith, Membership Services Westminster Chamber of Beach Blvd # B Westminster, CA James Davidson, President Yorba Linda Chamber of Yorba Linda Blvd. Yorba Linda, CA Dr. Ajay Sawhney, President Fountain Valley Chamber Slater Ave Ste. 250 Fountain Valley, CA Mary Parsons, President-CEO Fullerton Chamber of 444 N. Harbor Blvd, Suite 200 PO Box 529 Fullerton, CA Theresa Harvey, President Garden Grove Chamber of Main St. Ste. 102 Garden Grove, CA Cindy Spindle, CEO/President Huntington Beach Chamber of 2134 Main St Ste. 100 Huntington Beach, CA James O Callaghan, President/CEO Orange Chamber of 1940 N Tustin St, Orange, CA Orange, CA Charla Lenarth, President San Clemente Chamber of 1231 Puerta del Sol Ste. 200 San Clemente, CA Lynn Wood, President/CEO San Juan Capistrano Chamber of La Matanza St San Juan Capistrano, CA Mark Bodenhamer, Executive Director Santa Ana Chamber of 1631 W Sunflower Ave Ste. C-35 Santa Ana, CA David Elliott, President/CEO Corona Del Mar Chamber of 2855 E. Coast Hwy, Suite 101 Corona Del Mar, CA Linda Leonhard, President/CEO Orange County Chinese-American Chamber of 4605 Barranca Parkway #101-J Irvine, CA James Fan, President Filipino-American Chamber of of Orange County 1748 W. Katella Ave., Suite: 200 Orange, CA Neil Estrada, President Hispanic Chamber of of Orange County 2130 E. 4th. St. #125 Santa Ana, CA Reuben D. Franco, CEO

22 Aliso Viejo Chamber of 92 Argonaut, Suite 120 Aliso Viejo, CA Julie Wright, President Orange County Business Council 2 Park Plaza, Ste. 100 Irvine, CA Lucy Dunn, President/CEO Mission Viejo Chamber of H Alicia Parkway, Ste 218 Mission Viejo, CA Lisa Sakai, President La Habra Chamber of 321 E. La Habra Blvd. La Habra, CA Joyce Brooks, Board Chair National Association of Women Business Owners 2304 Huntington Drive, Suite #210 San Marino, CA Dee Elliott, President Associated Builders & Contractors of Southern California 1400 N. Kellogg Dr. Ste. A Anaheim, CA Susan McNiel-Corry, President

23 Murrieta Chamber of Madison Avenue, Suite 108 Murrieta, CA Andy Morris, Chairman Moreno Valley Chamber of Frederick St Ste E-3 Moreno Valley, CA Tina Covington, Chair Perris Chamber of 227 N D St Ste A Perris, CA Joshua Naggar, President Temecula Valley Chamber of Ynez Ct. Temecula, CA Brian Connors, Chairman Hemet San Jacinto Valley Chamber of 615 N. San Jacinto Avenue Hemet, CA DEE Cozart, Chairperson Anza Valley Chamber of P.O. Box Anza, CA Tish Clark, President Jurupa Valley Chamber of 7920 Limonite Ave B Riverside, CA Jose Campos, President Norco Area Chamber of PO Box 844 Norco, CA Dr. Jesus Martinez, Chairman Wildomar Chamber of Mission Trail Wildomar, CA Andy Morris, Chairman Menifee Valley Chamber of New Hub Dr Ste 102 Menifee, CA Vicki Carpenter, Chair La Quinta Chamber of CALLE TAMPICO La Quinta, CA Jill Tremblay, Chairman Desert Hot Springs Chamber of Pierson Blvd. Desert Hot Springs, CA Linda Lennon-Roth, Vice Chair Palm Desert Area Chamber of Highway 111 Palm Desert, CA Debbie Frazer, CEO Palm Springs Chamber of 190 West Amado Road Palm Springs CA Nona Watson, CEO Indio Chamber of Indio Blvd. Indio, CA Joshua Bonner, President/CEO Coachella Chamber of 1258 Sixth Street Coachella, CA Chris Bennett, President Indian Wells Chamber of Club Dr Suite B Indian Wells, CA Dan Levine, Chairman Banning Chamber of 60 E Ramsey St # C Banning, California Oncalyse Lyons, President Cathedral City Chamber of Perez Road #C8 Cathedral City, CA Jill Tremblay, Chairman Beaumont Chamber of 726 Beaumont Ave Beaumont, CA Brian Sylva, President Blythe Area Chamber of 207 E Hobsonway Blythe, CA Derek Copple, President Greater Riverside Chambers of 3985 University Ave. Riverside, CA John Weyhgandt, President/CEO Calimesa Chamber of 1007 Calimesa Blvd. Suite D Calimesa, California Donna K Lotz, President Lake Elsinore Valley Chamber of 132 West Graham Avenue Lake Elsinore, CA Chance Edmondson, Chairman Rancho Mirage Chamber of Highway 111 Ste H Rancho Mirage, CA Samantha Tweddell, Exec. Director Eastvale Chamber of Limonite Ave # Eastvale, CA Hari Dhiman, Board Member Canyon Lake Chamber of Railroad Canyon Rd Canyon Lake, CA Jim Randle, President

24 Corona Chamber of 904 East Sixth Street Corona, CA John Weyhgandt, Chairman

25 Exhibit A Public Consultation 2015/18 Name/Host of Event Focus of Event Attendees Comments and their relation to Goal application and disparity 1/5/16 Vista Canyon Metrolink Station Design Project DBE Outreach and Engagement Session The City of Santa Clarita undertook proactive outreach measures in order to raise their DBE participation numbers. These measures included inviting available DBE firms along with potential prime contractors to a meet and greet at City Hall for the Vista Canyon Metrolink Station Design Project (federally-funded). Contractors were provided an opportunity to network and discuss options that may help to include DBE firms that can provide needed construction/professional services in the public works area. 56 attendees The DBE Program goals/objectives were discussed and input regarding barriers to DBE participation was requested. Input regarding barriers was not received. 5/11/16:Tour de Procurement Purchasing staff hosted their annual vendor outreach event, titled Tour de Procurement, on May 11 at The Centre. This year staff created an exhibition environment comprised of representatives from varied City Divisions as well as from local public agencies. The faire set up allowed for a unique opportunity for vendors to meetand-greet with the direct buyers of their products and services. More than 220 vendors Several commenters noted issues regarding safety and liability in utilizing new DBE firms on specialized work. Requested City s assistance in identifying qualified and experienced DBEs with City experience.

26 Exhibit A Public Consultation 2015/18 9/15/16 Entrepreneurship Discussion Series Coming to Santa Clarita The City of Santa Clarita, in partnership with the College of the Canyons Small Business Development Center, will host a series of three one-hour workshops covering various aspects of the entrepreneurial world. More than 50 participants Firms asked questions about the DBE application process and what advantages it carries. Direct comments regarding the goal or barriers to DBE participation were not received. The Entrepreneurship Series will help kick off Santa Clarita s participation in Innovate Los Angeles. In conjunction with Los Angeles County Economic Development Corporation s Center of Innovation, the mission of Innovate LA is to promote LA County as a leading global center for innovation and entrepreneurship rooted in boundless creativity and diversity. 5/1/17:Vendor Outreach Event The faire set up allowed for a unique opportunity for vendors to meet-and-greet with the direct buyers of their products and services. Provided a power point overview of DBE Program, goal and overall objectives. More than 200 vendors Received input from attendees regarding workshops and trainings that would be helpful to the contracting community to assist them on successfully winning and performing on upcoming projects. 9/27/17 First Annual Federal Transit Authority (FTA) Region IX DBE Forum The intent of the Region IX DBE Forum was to bring together FTA Region IX Recipients to collaborate and share DBE Program implementation issues and innovations through an open and secure forum. The DBE Forum was successful in bringing together recipients from three (3) out of the four (4) Region IX States 57 The Forum discussion topics were strategically derived from feedback received in response to a DBE implementation survey distributed to all Region IX recipients.

27 Exhibit A Public Consultation 2015/18 1/8/18 101st Annual CAPPO Conference and Supplier Exposition CAPPO members exchange ideas in an effort to resolve problems affecting California's public agencies by sharing information on technical advances, cost factors, new laws, and sources for products. This open collaboration helps to strengthen the skills of public procurement officials as they fulfill their responsibilities to the public they serve. Discussed additional measures that could be put in place to raise DBE utilization numbers in race-neutral environments.

28 Tour de Procurement - Vendor Outreach Purchasing staff hosted their annual vendor outreach event, titled Tour de Procurement, on May 11 at The Centre. This year staff created an exhibition environment comprised of representatives from varied City Divisions as well as from local public agencies. The faire set up allowed for a unique opportunity for vendors to meet-and-greet with the direct buyers of their products and services. Public agencies in attendance included the Santa Clarita Community College District, Saugus Union School District, Sulphur Springs Union School District, Newhall School District, Castaic Lake Water Agency, and Antelope Valley Community College District. Over 220 vendors RSVP d to attend this highly anticipated event. Response from the public has been extremely positive, and vendors were pleased to be able to discuss business with representatives and network with fellow vendors. According to survey results at the end of the event, the majorities of participants were first time attendees and found the experience informative, valuable, and are looking forward to future events focused on doing business with the City.