HomeMy WebLinkAboutResolution 2023-039 N.C.S. 04/03/2023 DocuSign Envelope ID:AD4A6A9D-A129-41E8-A881-9226885325DE
Resolution No. 2023-039 N.C.S.
of the City of Petaluma, California
ADOPTING THE 2023 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM AND
GOAL FOR PETALUMA TRANSIT,AND FINDING THIS ITEM IS EXEMPT FROM CEQA
PURSUANT TO CEQA GUIDELINES SECTIONS 15378 AND 15061(B)(3)
WHEREAS,the federal government enacted 49 Code of Federal Regulations (CFR)Part 26 to create a level
playing field on which Disadvantaged Business Enterprises (DBEs) and Small Business Enterprises (SBEs) can
compete fairly for contracts and subcontracts relating to Petaluma Transit's construction, procurement, and
professional services activities; and
WHEREAS,eligible project sponsors wishing to receive Federal Transit Administration(FTA) Section 5307
and Section 5339 grants for a project shall be required to follow all published FTA guidance documents; and
WHEREAS,the City of Petaluma is an eligible project sponsor for FTA Section 5307 and Section 5339 funds
and is obligated to comply with any and all FTA regulations; and
WHEREAS,the City of Petaluma has benefitted greatly from inclusion into the FTA Section 5307 and 5339
Funding Programs, and wishes to continue eligibility for these funds for projects, such as bus replacements,
facility renovations, communication equipment procurement, and operating assistance/preventative maintenance;
and
WHEREAS,FTA requires that grant recipients, such as Petaluma Transit and Paratransit, submit a Council-
approved Program every three years documenting compliance with 49 CFR Part 26; and
WHEREAS,the City of Petaluma is committed to a Diversity Program for the participation of Disadvantaged
Business Enterprises ("DBEs") and Small Business Enterprises ("SBEs") in Petaluma Transit's contracting
opportunities; and
WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality
Act (CEQA) for the following reasons:
1. The proposed action is exempt from the requirements of the California Environmental Quality Act
(CEQA) in accordance with CEQA Guidelines Section 15378, in that the creation of the DBE Program
does not meet CEQA's definition of a"project,"because the action does not have the potential for resulting
either a direct physical change in the environment or a reasonably foreseeable indirect physical change in
the environment, and because the action constitutes organizational or administrative activities of
governments that will not result in direct or indirect physical changes in the environment.
2. The proposed action is exempt under the common-sense exemption, CEQA Guidelines Section
15061(b)(3)because it can be seen with certainty that there is no possibility that the proposed action could
have a significant impact on the environment.
NOW, THEREFORE,BE IT RESOLVED,that the City Council of the City of Petaluma hereby:
1. Declares that the above recitals are true and correct and are hereby incorporated into this resolution.
Resolution No. 2023-039 N.C.S. Page 1
DocuSign Envelope ID:AD4A6A9D-A1 29-41 E8-A881-9226885325DE
2. Adopts the 2023 DBE Program for Petaluma Transit, attached hereto, and incorporated herein as Exhibits A
and B, which shall apply to all FTA—funded transit programs.
3. Directs staff to submit the adopted 2023 DBE Program for Petaluma Transit for approval of the FTA.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 3rd day of April 2023, DocuSignedt t'm:
by the following vote: F(O-�
5EF85AE9ry X1 orney
AYES: Mayor McDonnell,Barnacle,Vice Mayor Cader Thompson,Healy,Nau,Pocekay, 11 AA
Shribbs
NOES: None
ABSENT: None
ABSTAIN: None
DocuSigned by: DDoocuSiiggned by:
ATTEST: L.F4492� "
City Clerk Mayor`
Resolution No. 2023-039 N.C.S. Page 2
DocuSign Envelope ID:AD4A6A9D-A129-41E8-A881-9226885325DE
Exhibit A to Resolution
City of Petaluma — Petaluma Transit
Disadvantaged Business
Enterprise ( DBE ) — Diversity
Program for Contracts
January 2023
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Petaluma Transit
Diversity Program for Contracts
Table of Contents
I. POLICY(Section 26.23) ................................................................................................................... 4
II. General Requirements (Numbers Reference Sections of 49 CFR 26 Requirements) ..................... 5
A. Applicability (Section 26.3) ............................................................................................... 5
B. Objectives (Section 26.1) .................................................................................................. 5
C. Definitions (Section 26.5)................................................................................................... 6
D. Prohibited Discrimination (Section 26.7) .......................................................................... 8
E. Record Keeping Requirements (Section 26.11) ................................................................ 8
F. Bidders List (Section 26.11c) ............................................................................................. 9
G. Federal Financial Assistance Agreement Assurances (Section 26.13a) ............................. 9
H. Contract Assurance and Required Contract Provisions (Section 26.13b) ....................... 10
III. Administrative Requirement......................................................................................................... 11
A. DBE Program Updates{Section 26.21) ............................................................................ 11
B. Dissemination of Policy Statement{Section 26.23)..........................................................11
C. Duties of DBE Liaison Officer{Section 26.25) ..................................................................12
D. DBE Financial Institutions (Section 26.27) .......................................................................12
E. Prompt Payment Mechanisms (Section 26.29) ................................................................13
F. DBE Database (Section 26.31)...........................................................................................13
G. Over-Concentration (Section 26.33) ................................................................................14
H. Business Development Programs (Section 26.35) ...........................................................14
I. Monitoring and Enforcement Mechanisms (Section 26.37) ............................................14
J. Small Business Participation (Section 26.39) ...................................................................15
IV. Goals, Good Faith Efforts and Counting DBE Participation............................................................15
A. No Quotas or Set-Asides(Section 26.43) .........................................................................15
B. Goal-Setting(Section 26.45) ........................................................................................... 16
C. Public Participation and Outreach Efforts (Sections 26.45 (g)) ....................................... 16
D. Failing to Meet Overall Goals (Section 26.47) ................................................................. 17
E. Responsibilities Regarding Transit Vehicle Purchases (Section §26.49) ......................... 17
F. Achieving the Annual Overall Goal (Section 26.51) ........................................................ 17
G. Good Faith Efforts Procedures (Section 26.53(a)(b)(c))................................................... 17
H. Counting DBE Participation (Sections 26.55) .................................................................. 21
V. CERTIFICATION STANDARDS (Subpart D and Appendix E) .......................................................... 20
A. California Unified Certification Program (Section 26.81) ................................................ 20
B. Procedures for Certification Decisions (Section 26.83) ................................................... 20
VI. COMPLIANCE AND ENFORCEMENT(SUBPART F) ........................................................................ 20
A. Responsibilities for Use of Information, Confidentiality, Cooperation, and Intimidation or
Retaliation (Section 26.109) ............................................................................................ 20
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
VII. Exhibit A....................................................................................................................................... 21
DBE Liaison Officer's DBELO Duties and Responsibilities (Section 26.25) .................................... 21
VIII. Exhibit B ....................................................................................................................................... 22
A. Petaluma Transit Organization Chart .............................................................................. 22
B. PRIME CONSULTANT AND SUBCONTRACTOR/SUBCONSULTANT/SUPPLIER REPORT..... 22
C. GOOD FAITH EFFORTS DOCUMENTATION ...................................................................... 22
D. SMALL BUSINESS ENTERPRISE AFFIDAVIT OF SIZE........................................................... 22
IX. Exhibit C ........................................ .............................................................................................. 22
SMALL BUSINESS ENTERPRISE ELEMENT(Section 26.39) ............................................................ 22
A. Definition of Small Business Enterprise .......................................................................... 22
B. Acceptable Comparable Small Business Enterprise Certifications .................................. 23
C. Race-Neutral SBE Measures ............................................................................................ 24
D. Determining and Adopting a Contract-Specific SBE Goal................................................ 24
X. Exhibit C-1 ................................................................................................................................................. 25
SBE GOAL DECLARATION FORM ................................................................................................... 25
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
PETALUMA TRANSIT DIVERSITY PROGRAM FOR CONTRACTS
I. POLICY (Section 26.23)
Petaluma Transit is committed to a Diversity Program for the participation of Disadvantaged Business
Enterprises ("DBEs") and Small Business Enterprises ("SBEs") in Petaluma Transit's contracting
opportunities in accordance with 49 Code of Federal Regulations (CFR) Part 26, effective March 4, 1999,
as may be amended ("Regulations"). It is the policy of Petaluma Transit to ensure nondiscrimination on
the basis of race, color, sex or national origin in the award and administration of the U.S. Department of
Transportation ("U.S. DOT") assisted contracts. It is the intention of Petaluma Transit to create a level
playing field on which DBEs and SBEs can compete fairly for contracts and subcontracts relating to
Petaluma Transit's construction, procurement and professional services activities.
City Council is responsible for establishing the DBE policy of Petaluma Transit. The Transit Manager of
Petaluma Transit is responsible for ensuring adherence to this policy.The Disadvantaged Business
Enterprise Liaison Officer, in coordination with the Transit Manager, is responsible for the development,
implementation, and monitoring of the Diversity Program for Contracts in accordance with Petaluma
Transit's nondiscrimination policy.The DBE Liaison Officer(DBELO)will submit a revision of this DBE
Program to FTA whenever there are substantive changes to content or agency staffing, organization, or
leadership. It is the expectation of the City Council and the Transit Manager that all Petaluma Transit
personnel shall adhere to the provisions and procedures as well as the spirit of this Program.
This policy will be circulated to all Petaluma Transit personnel and to members of the community that
perform or are interested in performing work on Petaluma Transit contracts.The complete Diversity
Program for Contracts and the annual overall DBE goal analyses are available for review from the:
DBE Liaison Officer(DBELO)
Petaluma Transit
555 North McDowell Blvd
Petaluma, CA 94954
If you have any questions or would like further information regarding this Program, please contact the
Disadvantaged Business Enterprise Liaison Officer(DBELO), Ray Atkinson, by email at
ratkinson@cityofpetaluma.org, by telephone 707-776-3711.
Date: 1/25/2023
Transit Manager
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
II. General Requirements (Numbers Reference Sections of 49CFR 26
Requirements)
A. Applicability (Section 26.3)
Petaluma Transit, a recipient of federal financial assistance from the Federal Transit Administration
("FTA") and the Federal Highway Administration ("FHWA") of the U.S. DOT, is required to implement a
Disadvantaged Business Enterprise (DBE) Program in accordance with 49 CFR Part 26, which is
incorporated herein by this reference.The Program outlined herein applies to all Petaluma Transit
contracts that are funded, in whole or in part, by U.S. DOT federal financial assistance. In the event of
any conflicts or inconsistencies between the Regulations and this DBE Program with respect to U.S. DOT-
assisted contracts,the Regulations shall prevail.
B. Objectives (Section 26.1)
The objectives of this Program are the following:
1. To ensure nondiscrimination in the award and administration of U.S. DOT-assisted contracts;
2. To remove barriers to DBE participation in the bidding, award and administration of
Petaluma Transit contracts;
3. To assist DBEs to develop and compete successfully outside of the Program;
4. To ensure that the Program is narrowly tailored in accordance with 49 CFR Part 26;
5. To ensure that only DBEs meeting the eligibility requirements are permitted to participate as
DBEs;
6. To identify business enterprises that are eligible as DBEs to provide Petaluma Transit with
required materials, equipment, supplies and services; and to develop a good rapport with
the owners, managers and sales representatives of those enterprises;
7. To develop communication programs and procedures that will acquaint prospective DBEs
with Petaluma Transit's contract procedures, activities, and requirements and allow DBEs to
provide Petaluma Transit with feedback on existing barriers to participation and effective
procedures to eliminate those barriers.
8. To administer the Program in close coordination with various managers and staff within
Petaluma Transit to facilitate successful implementation of this Program.
9. Continuously research and make available to DBEs any resources and/or tools that may
increase the possibility of participation, such as bonding or insurance assistance programs,
technological tools, education resources, and contractor match-making opportunities.
C. Definitions (Section 26.5)
Any terms used in this Program that are defined in 49 CFR § 26.5 or elsewhere in the Regulations shall
have the meaning set forth in the Regulations. Some of the most common terms are defined below:
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
1) "Commercially Useful Function"
A DBE (or SBE) performs a commercially useful function when it is responsible for execution
of the work of the contract and is carrying out its responsibilities by actually performing,
managing, and supervising the work involved.
2) "Disadvantaged Business Enterprise(DBE)"
A DBE is a for-profit, small business concern: 1)that is at least fifty-one percent (51%)
owned by one or more individuals who are both socially and economically disadvantaged,
or, in the case of a corporation, in which fifty-one percent(51%) of the stock is owned by
one or more socially and economically disadvantaged individuals; and 2) whose
management and daily business operations are controlled by one or more of the socially and
economically disadvantaged individuals who own it.
3) "Good Faith Effort"
This means the steps set forth by this Policy that are to be undertaken by a bidder to
document that it has or has not obtained enough participation to meet the specific contract
goal(s) required by the Petaluma Transit for use of DBE or SBE firms.
4) "Race-Neutral"
A procedure or program that is used to assist all small businesses. For the purposes of this
Program, race-neutral includes ethnic and gender neutrality.
5) "Race-Conscious"
A measure or program that is specifically focused on assisting only DBEs, including
women-owned DBEs.
6) "Personal Net Worth"
The net value of the assets of an individual remaining after total liabilities are deducted. An
individual's personal net worth does not include the individual's ownership interest in an
applicant or participating DBE firm, or the individual's equity in his or her primary place of
residence.An individual's personal net worth includes only his or her own share of
community property with the individual's spouse.
7) "Small Business Element"
Actions within the DBE program applied to encourage the utilization and participation of
small business enterprises.
8) "Small Business Enterprise"
With respect to firms participating as DBEs in U.S. DOT assisted contracts, a small business
enterprise (SBE) is an existing small business, as defined by Section 3 of the Small Business
Act and the Small Business Administration regulations implementing it (13 CFR Part 121),
whose average annual gross receipts for the previous three (3)years does not exceed the
amount pursuant to 49 CFR§ 26.65(b) ($26.29 million as of Dec. 14, 2020).
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
9) "Socially and Economically Disadvantaged Individuals"
Any individual who is a citizen or lawfully admitted resident of the United States of the
following groups, members of which are rebuttably presumed to be socially and
economically-disadvantaged:
1) African American (including persons having origins in any of the Black racial groups
of Africa).This term has the same meaning as the term is used in 49 CFR Part 26;
2) Hispanic American (including persons of Central or South American, Cuban,
Dominican, Mexican, Puerto Rican, or other Spanish or Portuguese culture or origin,
regardless of race);
3) Native American (includes persons who are enrolled members of a federally or State
recognized Indian tribe, Alaska Natives, or Native Hawaiians);
4) Asian-Pacific American (which includes persons whose origins are from Japan, China,
Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea),Thailand,
Malaysia, Indonesia,the Philippines, Brunei, Samoa, Guam, the U.S.Trust Territories
of the Pacific Islands (Republic of Palau), Republic of the Northern Marianas Islands,
Samoa, Macao, Fiji,Tonga, Kirbati,Tuvalu, Nauru, Federated States of Micronesia,
or Hong Kong;
5) Subcontinent Asian American (including persons whose origins are from Bangladesh,
Bhutan, India, the Maldives Islands, Nepal, Pakistan, or Sri Lanka);
6) A Woman; or
7) A member of any additional group that is designated as socially-and economically-
disadvantaged by the Small Business Administration, at such time as the SBA
designation becomes effective.
Additionally, any individual can demonstrate, by a preponderance of evidence,that he or
she is socially and economically-disadvantaged on a case-by-case basis. Petaluma Transit will
follow the guidelines in 49 CFR Part 26, Appendix E for this determination. An individual
cannot be presumed or determined on a case-by-case basis to be economically-
disadvantaged if he or she has a personal net worth exceeding$1.32 Million (excluding the
individual's ownership interests in the small business concern and his or her primary
residence).
D. Prohibited Discrimination (Section 26.7)
Petaluma Transit shall not exclude persons from participation in, deny benefits to, or otherwise
discriminate against any persons in connection with the award and performance of any contract
governed by 49 CFR Part 26 on the basis of race, color, sex or national origin.
Petaluma Transit shall not use criteria or methods of administration that have the effect of defeating or
substantially impairing accomplishment of the objectives of this Program with respect to individuals of a
particular race, color, sex, or national origin, either directly or through contractual or other
arrangements.
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
E. Record Keeping Requirements (Section 26.11)
Petaluma Transit will continue to report DBE participation and overall goal setting methods to FTA and
Caltrans on behalf of FHWA as directed. Statistical data will be maintained as prescribed on a semi-
annual basis to provide reports to U.S. DOT administrations reflecting the DBE participation in Petaluma
Transit's federally assisted procurement activities on the following schedule:
1) DBE participation from October 1 through March 31{submitted June 1)
2) DBE participation from Aprill through September 30{submitted December 1)
The DBELO will regularly collect, review and track prime and subcontractor contract commitments,
awards and payment including:
1) Prime and subcontractor awards and commitments{submitted by the successful contractor at
time of bid)
2) DBE awards and commitments{submitted by the successful contractor at time of bid)
3) Payments to prime contractors, progress payments and final payment at the close of contract
4) Payments to DBE contractors, subcontractors and suppliers
These reports will provide DBE participation information on Petaluma Transit's race-neutral contracts,
race-conscious contracts, if any, and combined DBE participation on all federally assisted procurement
activities.
Petaluma Transit may perform interim audits of contract payments to DBEs to ensure that the actual
amount paid to DBE subcontractors equals or exceeds the dollar amounts stated in the report of
proposed DBE participation.The DBELO will continue to provide the reports regarding DBE participation
and annual overall goals required by the Regulations to FTA and Caltrans on behalf of FHWA, as
required.
F. Bidders List (Section 26.11c)
Petaluma Transit will maintain a Bidders List and collect information regarding all DBE and non-DBE
firms that bid and quote on U.S. DOT-assisted contracts.The Bidders List may be used to help calculate
Petaluma Transit's overall DBE goal. Petaluma Transit's will also maintain a vendor database, which
facilitates outreach,tracks all potential bidders,tracks plan-holders and tracks all primes awarded a
contract.
The bidders list will include the following information about the prime contractor and all subcontractors
who provided a bid:the firm name,firm address,firm's status as a DBE or non- DBE, number of years in
business, annual gross receipts, scope of work to be performed on the contract, and dollar amount of
that work. Petaluma Transit must receive this information before making a recommendation to City
Council for award of contract. If the information is not received within the time specified,the
bidder/proposer will be deemed non-responsive.
Data gathering will be conducted by requiring firms bidding on contracts with or without subcontracting
opportunities to submit a form entitled, Prime Contractor and Subcontractor/Subconsultant/Supplier
Report, provided in Exhibit B-2. In the case of firms bidding on contracts without subcontracting
opportunities, data gathering may also be conducted by requesting firms to submit additional
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
information.The DBELO will maintain the confidentiality of any proprietary information in accordance
with applicable California law.
G. Federal Financial Assistance Agreement Assurances (Section 26.13a)
Petaluma Transit has signed the FTA Master Agreement that includes the following assurances,
applicable to all DOT-assisted contracts and their administration:
As a recipient of federal funds, Petaluma Transit shall not discriminate on the basis of race,
color, national origin, or sex in the award and performance of any DOT-assisted contract or in
the administration of its DBE Program or the requirements of 49 CFR Part 26.The recipient shall
take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the
award and administration of DOT-assisted contracts.The recipient's DBE Program, as required
by 49 CFR Part 26 and as approved by DOT, is incorporated by reference in this agreement.
Implementation of this program is a legal obligation and failure to carry out its terms shall be
treated as a violation of this agreement. Upon notification to the recipient of its failure to carry
out its approved program,the Department may impose sanctions as provided for under Part 26
and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001and I or
the Program Fraud Civil Remedies Act of 1986 131U.S.C. 3801et seq.).
H. Contract Assurance and Required Contract Provisions (Section 26.13b)
Each financial assistance agreement Petaluma Transit signs with FTA or Caltrans on behalf of FTA will
include a nondiscrimination assurance from Petaluma Transit. Petaluma Transit's U.S. DOT-assisted
procurements will include, as appropriate,the model contract provisions set forth in the current edition
of Petaluma Transit's Federal Solicitation and Contract Templates, available from the DBELO.The DBELO
shall have discretion to modify the provisions for particular contracts as needed, in consultation with
Legal Counsel.These required contract provisions consist of:
• Petaluma Transit's DBE Program policy.
• A nondiscrimination assurance from the contractor and each subcontract the prime contractor
signs with a subcontractor.The contractor or subcontractor shall not discriminate on the basis
of race, color, national origin, or sex in the performance of this contract. The contractor shall
carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT-
assisted contracts. Failure by the contractor to carry out these requirements is a material breach
of this contract that may result in the termination of this contract or such other remedy as
recipient deems appropriate, which may include, but is not limited to,withholding monthly
progress payments; assessing sanctions; liquidated damages; and/or disqualifying the contractor
from future bidding as non-responsible.This may include, but is not limited to, withholding
monthly progress payments; assessing sanctions; liquidated damages; and/or disqualifying the
contractor from future bidding as non-responsible.
• A statement that encourages prime contractors to use financial institutions owned and
controlled by socially and economically-disadvantaged individuals in the community, per 49 CFR
Part 26.27.
• Per 49 CFR 26.29, a clause that requires prime contractors to pay subcontractors for satisfactory
performance of their contracts no later than seven days for construction and ten days for
consultants/professional service contracts from the date the prime receives its payment from
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Petaluma Transit.This clause also requires the prompt return of retainage payments from the
prime contractor to the subcontractor within 30 days after the subcontractor's work is
satisfactorily completed
• The website address for the California Unified Certification Program DBE directory identifying all
firms eligible to participate as DBEs in Petaluma Transit's program.
• The DBE participation goal lwhere applicable).
• A section that provides the DBE certification standards.
• A section that provides how DBE participation is counted toward the goal.
• A section on reporting requirements, including a provision ensuring that DBE participation is
credited toward overall or contract goals only when payments are actually made to DBE firms.
• A section on administrative remedies to ensure compliance with the DBE program.
III. Administrative Requirement
A. DBE Program Updates (Section 26.21)
Because Petaluma Transit receives FTA planning, capital and/or operating assistance and awards prime
contracts{excluding transit vehicle purchases),the cumulative total value of which can exceed $250,000
in a federal fiscal year, Petaluma Transit will continue to carry out this DBE Program until all funds from
DOT financial assistance have been expended. Petaluma Transit will provide to U.S. DOT updates
representing significant changes in the program and implement the completed updated DBE program
upon the approval of FTA.
B. Dissemination of Policy Statement (Section 26.23)
The DBELO shall issue a signed and dated Policy Statement for Petaluma Transit and to the business
community, including DBEs and non-DBEs that perform work on U.S. DOT-assisted contracts for
Petaluma Transit.The Policy Statement shall be disseminated as follows:
1. Through email to Managers and buying staff; and
2. Through Petaluma Transit's website and upon request from the interested public, including the
business community.
To ensure that potential bidders are aware of the DBE policy, Petaluma Transit makes reference to this
policy in its contract specifications and advertisements for all U.S. DOT-assisted contracts.
C. Duties of DBE Liaison Officer (Section 26.25)
Pursuant to 49 CFR§ 26.25 (www.fhwa.dot.gov/HEP/49cfr26.HTM),the Program shall be administered
by the DBE Liaison Officer("DBELO"),who shall be appointed by and have direct, independent access to
the General Manager of Petaluma Transit.The DBELO will be the primary person responsible for
implementing all aspects of this Program and will work closely with other departments and consultants
of Petaluma Transit to ensure the DBE program's success.The DBELO's specific duties and
responsibilities are attached as Exhibit A including an Organization Chart, and incorporated herein.
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
D. DBE Financial Institutions (Section 26.27)
It is the policy of Petaluma Transit to investigate the full extent of services offered by financial
institutions owned and controlled by socially and economically disadvantaged individuals in the
community,to make reasonable efforts to use these institutions, and to encourage prime contractors on
U.S. DOT-assisted contracts to make use of these institutions.
The DBELO will explore the extent of services offered by any banks and other financial institutions that
qualify as DBEs in Sonoma County, and determine areas in which Petaluma Transit may reasonably
utilize their services. Petaluma Transit shall also encourage its prime contractors to use the services of
DBE financial institutions and places a clause in each federally assisted prime contract, per 49 CFR 26.27
as referenced in section 11-H.
The Federal Reserve Board compiles data on financial institutions that participate in the Treasury's
Minority Bank Deposit Program.The Federal Reserve maintains a list of these financial institutions that
includes the identification of minority and gender status along with location,viewable at:
https://www.fdic.gov/regulations/resources/minority/mdi.html
Petaluma Transit will review the listing periodically to determine whether any such financial institutions
are available within the Petaluma Transit community. As of 2023, there are no minority-owned banks
with offices located in Sonoma County. In considering a new operating bank account, staff places a
priority on the importance of proximity to ensure that contractors do not have to travel out of Sonoma
County to deposit large amounts of cash fares.
The DBELO updated the list of minority-owned financial institutions offering services in the San
Francisco Bay Area based on The Federal Reserve Bank website data from May 2020:
• Bank of the Orient(Offices in San Francisco)
• California Pacific Bank and Gateway Bank, F.S.B {Offices in San Francisco)
• Mission Bank{Offices in San Francisco)
E. Prompt Payment Mechanisms (Section 26.29)
Petaluma Transit will ensure prompt payment of subcontractors on each federally-assisted prime
contract. Petaluma Transit includes a clause in all federally-assisted contracts that requires prime
contractors to pay subcontractors for satisfactory performance of their contracts no later than 30 days
from the date the prime receives its payment from Petaluma Transit.
This clause also requires the prompt return of retainage payments. Petaluma Transit will hold retainage
from the prime contractors and provide for prompt and regular incremental acceptances of portions of
the contract, pay retainage to prime contractors based on the acceptances, and include a contract
clause obligating the prime contractor and subcontractors to pay all retainage owed to the
subcontractor for satisfactory completion of the accepted work within 30 days after payment to the
prime contractor.
As referenced in Section 26.37 below, if Petaluma Transit determines that the prime contractor has
failed to comply with the prompt payment provisions, Petaluma Transit will give written notice to the
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
prime contractor that if the default is not remedied within 30 days from notice, the contract may be
terminated in whole or in part.
F. DBE Database (Section 26.31)
The DBE Database is a consolidated and automated directory that identifies firms that have been
certified as DBEs by the California Unified Certification Program (CUCP).The DBE Database is jointly
maintained and updated by the CUCP certifying member agencies in coordination with the California
Department of Transportation (Caltrans), and the CUCP DBE Database Manager.The DBE Database is
available at Caltrans' website, https://dot.ca.gov/programs/civil-rights/dbe-search, and shall be
distributed to contractors and made available to the public upon request. Petaluma Transit will use the
DBE Database as a primary resource in developing overall goals and contract-specific goals, and in
conducting outreach and other activities to promote DBE participation in U.S. DOT supported contracts.
The DBE Database includes the firm's name, address,telephone number, and types of work, utilizing the
North American Industry Classification System (NAICS) codes for which the firm is certified as a DBE.
Additionally,the DBE Database may include, whenever possible,the date the firm was established,the
legal structure of the firm,the percentage owned by disadvantaged individuals, capacity, previous work
experience and a contact person.The DBE Database shall not in any way prequalify the identified DBE
firms with respect to licensing, bondability, competence, or financial responsibility.
G. Over-Concentration (Section 26.33)
If the DBELO determines that DBE participation is so over-concentrated in certain types of work or
contracting opportunities assisted by FTA or FHWA that it unduly burdens the participation of non-DBEs
in that type of work,the DBELO will develop appropriate measures to address the over-concentration.
The DBELO will seek approval of such measures from FTA or Caltrans on behalf of FHWA and, at that
time, the measures will become a part of this Program. Currently, Petaluma Transit is unaware of any
types of work that have a burdensome over-concentration of DBE participation.
H. Business Development Programs (Section 26.35)
Petaluma Transit may establish or participate in a DBE business development program to assist firms in
gaining the ability to compete successfully in the marketplace outside the DBE Program. Petaluma
Transit may establish or participate in a mentor-protege program in which another DBE or non-DBE firm
is the principal source of business development assistance. If Petaluma Transit determines such a
program is beneficial, a proposed program will be developed and submitted to the U.S. DOT operating
administrations for approval, after which it will become a part of this DBE Program. Guidelines outlined
in Appendices C and D of 49 CFR Part 26 will be utilized in setting up the formal agreements and
programs.
Petaluma Transit is a member of the Business Outreach Committee (BOC)that represents the nine
county San Francisco Bay Area transportation agencies.Through the BOC, Petaluma Transit's purchasing
and project management staff are available for and communicate with small business representatives to
encourage participation. Petaluma Transit staff will provide information on how to do business with
Petaluma Transit,technical assistance on specified contracts, and other topics of interest to small
business concerns. Petaluma Transit also utilizes the services and publications of Norcal Procurement
Technical Assistance Center (PTAC) and refers DBEs to the DBE Supportive Services Northern Region
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Program. Petaluma Transit includes a link to the DBE Supportive Services Program
www.norcalptac.org/DBE on its website. Petaluma Transit will refer current and newly certified DBEs
needing assistance to sign up for Norcal PTAC services at www.norcalptac.org/dbe.
Petaluma Transit participates extensively in the California Association for Coordinated Transportation
(CaIACT), and California Transit Association (CTA), and will advertise contractor opportunities with
Petaluma Transit through those venues for large procurements. See also section IV-C, Public
Participation and Outreach Efforts, below.
I. Monitoring and Enforcement Mechanisms (Section 26.37)
Petaluma Transit will monitor compliance of its contractors on federally assisted contracts with the
requirements of the DBE Regulations and the DBE Program. Petaluma Transit may impose such contract
remedies as are available under federal, state, and local law and regulations for non-compliance. Such
remedies may include, but are not limited to,withholding of progress payments and contract retentions,
imposition of liquidated damages, and termination of the contract in whole or in part.
Petaluma Transit will maintain a running tally of payments actually made to DBE firms and may require
prime contractors and DBE subcontractors and suppliers to provide appropriate documentation to verify
such payments. Petaluma Transit will monitor actual DBE participation and will include a written
certification that Petaluma Transit has reviewed contracting records and monitored work sites in
California for this purpose. Credit toward overall or contract goals will only be given upon satisfactory
evidence that payments were actually made to DBEs.
Petaluma Transit may perform interim audits of contract payments to DBEs.The audit will review
payments to DBE subcontractors to ensure that the actual amount paid to DBE subcontractors equals or
exceeds the dollar amounts stated in the report of proposed DBE participation. Monitoring may be
conducted in conjunction with monitoring of contract performance for other purposes (close out
revisions for a contract).
The contractor shall maintain records of all DBE participation in the performance of the contract,
including subcontracts entered into with certified DBEs and all materials purchased from certified DBEs.
It is the contractor's responsibility to maintain records and documents for three (3)years following the
performance of the contract.These records will be made available for inspection upon request by any
authorized representative of Petaluma Transit or U.S. DOT.This reporting requirement is also extended
to any certified DBE subcontractor.
J. Small Business Participation (Section 26.39)
In accordance with the requirements of 49 CFR Part 26, Section 26.39, Petaluma Transit has established
a Small Business Element to ensure that DBEs and non-DBE small businesses have the maximum ability
to participation on federally-sponsored projects. Details of the SBE program are included in Exhibit C and
incorporated herein. Petaluma Transit's SBE program does not replace or act as a substitute for critical
elements of the Petaluma Transit DBE program, including use of DBE contract goals (if appropriate),
good faith efforts evaluations or monitoring DBE participation.
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
IV. Goals, Good Faith Efforts and Counting DBE Participation
A. No Quotas or Set-Asides (Section 26.43)
Petaluma Transit does not, and will not, use quotas or set-asides in the administration of this Program.
B. Goal-Setting (Section 26.45)
The City Council shall establish an overall goal for the participation of DBEs in all budgeted contracts
utilizing U.S. DOT/FTA financial assistance.The overall goal shall be expressed as a percentage of the
total amount of U.S. DOT funds Petaluma Transit anticipates expending in the three forthcoming federal
fiscal years.
Petaluma Transit intends to meet its goal to the maximum extent feasible through the race-neutral
measures described in section IV-F, below. Where race-neutral measures are inadequate to meet the
overall goal, Petaluma Transit may use race-conscious measures for particular contracts with
subcontracting opportunities.
The overall goal will be established in accordance with the 2-step process as specified in 49 CFR Section
26AS (c)-(d):
• Step One: Determine the base figure of number of ready, willing and able DBEs relative to the
number of all businesses who are ready, willing and able to participate in the local market area;
and
• Step Two:Adjust the base-figure percentage from Step One so that it reflects as accurately as
possible the DBE participation that Petaluma Transit would expect based on past participation of
DBEs on projects.
The following represents the tasks necessary to complete Step One:
1. Projecting U.S. DOT-Assisted Contract Expenditures for Fiscal Years. In consultation with the
appropriate Petaluma Transit managers and staff responsible for contracting activities,the
DBELO will conduct a thorough analysis of the projected number,types of work and dollar
amounts of federally-assisted contracting opportunities for the three-year reporting period.
2. Establishing a Base Figure. Petaluma Transit will develop a base figure for the relative
availability of DBEs by determining the number of ready, willing, and able DBEs relative to the
number of all businesses ready, willing, and able to participate in its U.S. DOT-assisted
contracts.
a. Analyze All Available Businesses in Petaluma Transit's Local Market Area.The DBELO
will determine the total available businesses in its market area by conducting a
thorough analysis of the area in which Petaluma Transit will solicit participation from
contractors, subcontractors, consultants, subconsultants, manufacturers, and suppliers
for the federal fiscal year, including a description of geographical boundaries of its local
market area and the NAICS codes for the types of work to be contracted.The DBELO will
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
consider a variety of sources including, but not limited to,the U.S. Census Bureau's
County Business Patterns Database, Petaluma Transit's Bidders List, and relevant
disparity studies.
b. Analyze Available DBEs in Petaluma Transit's Local Market Area.The DBELO will
conduct a similar analysis to determine the total DBEs that are available to participate in
the projected contracts for the fiscal year.This analysis will include a description of the
available DBEs relative to the geographical boundaries of its local market area and the
NAICS codes for the types of work to be contracted. Petaluma Transit will consider a
variety of sources including, but not limited to,the CUCP DBE Database, its Bidders List,
and any relevant disparity studies.
c. Calculate the Base Figure.The DBELO will compare the available DBEs in its local market
area for the fiscal year to the available businesses in its local market area for the fiscal
year.The calculation may include a weighting factor according to the contract
expenditure patterns analyzed.
The following represents the task necessary to complete Step Two:
1. Adjusting the Base Figure. Petaluma Transit will adjust the base figure based on
demonstrable evidence indicating that the availability of DBEs for U.S. DOT-assisted
contracts for the fiscal year may be higher or lower than the base figure indicates, including
analyzing DBE participation in Petaluma Transit's current or past contracts.Additional
information may include any available and relevant disparity studies or any relevant results
of similar U.S. DOT recipients' efforts to contract with DBEs.
2. Projection of Percentage of Overall Goal to Be Achieved Through Race-Neutral and Race
Conscious Measures. Petaluma Transit proposes to meet 100%of its goals using race-
neutral methods. If there is a need to use race conscious or contract specific goals,the
DBELO shall analyze the progress toward achieving the annual overall goal and increase or
reduce the use of contract-specific goals as described in section IV-F, below.
C. Public Participation and Outreach Efforts (Sections 26.45 (g))
Petaluma Transit manages its public participation and outreach efforts to seek public input for setting
overall DBE participation goals and to increase public awareness of Petaluma Transit's Diversity Program
for Contracts to assist in meeting those goals.Additional efforts are described in section 111-H, Business
Development Programs, above.
• Goal Methodology Outreach: Prior to finalizing its triennial DBE Goal Methodology, Petaluma
Transit will consult with U.S. DOT, other U.S. DOT grantees, minority,women's and general
contractor groups, community organizations, or other officials or organizations that could be
expected to have information concerning the availability of disadvantaged and non-
disadvantaged businesses,the effects of discrimination on opportunities for DBEs, and Petaluma
Transit's efforts to establish a level playing field for the participation of DBEs. Petaluma Transit
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
will also utilize information and feedback obtained through mailings from regional agencies,
such as the Metropolitan Transportation Commission.
• Overall Goal Analysis Report. Unless otherwise directed, the DBELO will prepare an Overall Goal
Analysis Report for DBE participation in FTA-assisted contracts upon completion of the two-step
analysis and after consultation described above. Each report shall document the analysis and
methodology in arriving at the proposed goal and shall include a projection of the portion of the
goal to be achieved through race-neutral and race-conscious measures.
• Publication of the Proposed Overall DBE Goal. Pursuant to 49 CFR § 26.451g), Petaluma Transit
will publish the proposed overall DBE goal on its website, https://transit.cityofpetaluma.net/.
Every three years or more often if the City of Petaluma adjusts the overall goal, Petaluma Transit
will publish a notice announcing its proposed overall goal. This notice will inform the public that
Petaluma Transit's Overall DBE Goal Methodology is available for comment on the agency's
website, https://transit.cityofpetaIuma.net/,for a period of thirty 130) days prior to submitting
the goal to FTA by August 1st.This notice will state that Petaluma Transit and FTA will accept
comments on the proposed goal for thirty 130) days from the date of the notice with
instructions on how to submit comments.
Upon receipt of any public comments, Petaluma Transit's DBELO will prepare a summary report
analyzing the public comments and recommending any modifications to the overall DBE goal or
methodology and will provide it to the Transit Manager for review and submission to the City
Council for adoption.
• Approval of the Overall DBE Goal. Following review of the DBE Report, Petaluma City Council
shall approve an overall DBE goal for DBE participation that shall include a projection of portions
of that goal that can be achieved through race-neutral and race-conscious measures. It will also
consider authorizing the submission of an Overall Goal Analysis Report by the submission date
established by the Federal Transit Administration.The goal will then be published on the
agency's website: https://transit.citvofpetaluma.net/
D. Failing to Meet Overall Goals (Section 26.47)
If the awards and commitments shown on Petaluma Transit's Uniform Report of Awards or
Commitments and Payments at the end of any fiscal year are less than the overall goal applicable to that
fiscal year, the DBELO will analyze in detail the reasons for the difference between the overall goal and
awards and commitments and prepare a Shortfall Analysis in accordance with 49 CFR Section 26.27(c).
The analysis shall include specific steps and milestones to correct the problems identified and to meet
overall goals for future fiscal years. Petaluma Transit will retain the shortfall analysis and corrective
actions for three years and make them available to FTA on request for their review.
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
E. Responsibilities Regarding Transit Vehicle Purchases (Section §26.49)
To be authorized to bid or propose on FTA-assisted transit vehicle procurements, each transit vehicle
manufacturer must certify that it has complied with applicable FTA DBE requirements. Whenever
Petaluma Transit solicits new bids to purchase transit vehicles or to remanufacture vehicles, Petaluma
Transit will rely on FTA's certified list of Transit Vehicle Manufacturers.As an alternative, Petaluma
Transit will seek bids from qualified manufacturers that have submitted a DBE goal methodology that
FTA has approved or has not disapproved. If Petaluma Transit intends to purchase transit vehicles that
are not FTA certified, Petaluma Transit will include that purchase in calculating or updating its overall
DBE goal or set a project-specific DBE goal as appropriate.
As required in Section 26.49 (a) (41, within 30 days of making a vehicle purchase award, Petaluma Transit
will submit the name of the successful bidder and the total dollar value of the contract as prescribed in
the grant agreement.
F. Achieving the Annual Overall Goal (Section 26.51)
Petaluma Transit shall achieve the overall goals for DBE participation through a combination of race-
neutral/gender-neutral measures and contract goals for particular contracts with subcontracting
opportunities.
1. Race-Neutral/Gender-Neutral Methods. Petaluma Transit intends to use race- neutral/gender-
neutral methods to the maximum extent feasible to achieve its annual overall goals. Petaluma
Transit will consider as race-neutral/gender-neutral any DBE participation that is obtained on
contracts that have no specific DBE goal, or where prime contractors use a strictly competitive
bidding process that did not consider the DBE's status as a DBE in awarding a subcontract. In
addition, Petaluma Transit will use the following measures as appropriate:
a. Configure large contracts into smaller contracts, when feasible, when to do so would
make contracts more accessible to small businesses and would not impose significant
additional cost, delay, or risk to Petaluma Transit,
b. Identify components of the work that represent subcontracting opportunities and
identifying the availability of DBE subcontractors. Contractors will be encouraged to
consider small businesses for components of the work for which there is a known supply
of ready, willing, and able small businesses, including DBEs, in preparing their bids;
c. Assist in overcoming limitations in bonding and financing;
d. Provide technical assistance in orienting small businesses to public contract procedures,
use of the Internet, and facilitating introductions to Petaluma Transit's and other U.S.
DOT recipients' contracting activities;
e. Provide outreach and communication programs on contract procedures and contract
opportunities to ensure the inclusion of DBEs that includes facilitating small business
events that may be coordinated with other U.S. DOT grantees,federal agencies, or local
organizations.These events will include procedures explaining how to do business with
Petaluma Transit and explore best business practices that may be used to market small
businesses at Petaluma Transit;
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
f. Ensure the distribution of the DBE Database to the widest feasible universe of potential
prime contractors;
g. Provide business development assistance;
h. Arrange solicitations,times for the presentation of bids, quantities, specifications, and
delivery schedules in ways that facilitate participation by DBEs and other small
businesses; and
i. Pursuant to Section 49 CFR 26.39, Establish a race-neutral small business enterprise
(SBE) element as part of its DBE program to facilitate competition by small business
concerns,taking all reasonable steps to eliminate obstacles to their participation in
procurements as prime contractors or subcontractors. Details of the SBE element are
included in Exhibit C below and incorporated herein.
2. Contract-Specific Goals.The City Council shall recommend a race-neutral contract-specific DBE
participation goal on particular prime contracts with subcontracting opportunities to the extent
that Petaluma Transit cannot achieve its annual overall goal with race-neutral methods.
Contract-specific goals are suggested goals and will not be required.
Race-conscious goals shall only be established based on evidence from a local disparity study as
referenced in a 2005 Ninth circuit legal opinion that affects federal recipients in California. In
2006,the FTA published a notice that stated that in a race-neutral program, (e.g., the annual
overall DBE goal has been approved with no portion of it projected to be attained by using race-
and gender-conscious means)the federal recipient does not set contract goals on any of its U.S.
DOT-assisted contracts for which DBE subcontracting possibilities exist. Recipients having an
exclusively race-neutral program are not required to establish contract goals to meet any
portion of their overall goal.
While achievement of the goal will not be required,the City Council shall establish a contract-
specific goal based upon a recommendation from the Transit Manager as substantiated by
information furnished by the DBELO.The contract-specific goal shall apply to the percentage
participation of DBEs in the total contract work and be set forth in the Special Provisions of the
contract specifications. Petaluma Transit is not required to establish a contract-specific goal for
every prime contract with subcontracting opportunities. For each contract involving
subcontracting opportunities, Petaluma Transit will consider the factors outlined below to
determine whether to establish a suggested contract-specific goal for the particular contract
and, if so, what the percentage goal shall be:
a) The projected portion of Petaluma Transit's overall goal that will be met by establishing
contract-specific goals;
b) The progress toward achieving Petaluma Transit's overall goal;
c) The full range of activities in the proposed contract;
d) The availability of DBEs as prime contractors or subcontractors in the types of work
involved in the performance of the proposed contract;
e) The unique conditions of the project that might affect the ability of the prime contractor
to coordinate, utilize or incorporate subcontractors or suppliers into the project.
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
{Projects consisting of only one or two subtrades may not be appropriate for a contract-
specific goal as establishing a goal could result in restrictive bidding.);
f) The effect that the contract-specific goal might have on the time of completion; And
g) Any other relevant criteria.
G. Good Faith Efforts Procedures (Section 26.53(a)(b)(c))
The obligation of the bidder/proposer is to make good faith efforts, which the bidder/proposer can
demonstrate by either meeting the DBE goal or by documenting good faith efforts. In those instances
where a contract-specific DBE goal is included in the procurement/solicitation, Petaluma Transit will
award the contract only to a bidder that has either: 1) met the contract goal with verified, countable
DBE participation; or 2)the bidder has documented that it has made adequate good faith efforts to
meet the DBE contract goal. It is the obligation of the bidder to demonstrate it has made sufficient good
faith efforts prior to its bid submission.
To demonstrate a good faith effort,the bidder/proposer must submit Good Faith Effort Documentation
Form, provided in Exhibit B-3. Bidder that fails to demonstrate that it achieved the DBE participation
goal and fails to demonstrate that it made sufficient good faith efforts to do so shall not be deemed
"responsive" and, therefore, shall be ineligible for award of the contract.
The types of actions that Petaluma Transit would consider evidence of Good Faith Efforts include the
following:
1. Pre-Bid Meeting Attendance.
2. The bidder's own solicitations to obtain DBE involvement in general circulation media,trade
association publications, minority-focused media or other reasonable and available means
within a sufficient time to allow DBEs to respond to the solicitation.
3. Written notification from the bidder encouraging participation in the proposed contract.
4. Efforts made to identify specific portions of the work that might be performed by DBEs.
5. Efforts to assist interested DBEs in obtaining bonding, lines of credit, insurance or any necessary
equipment, supplies, materials, etc.
Good Faith Effort Evaluation Process:
a) Evaluation of Bids or Proposals:After the bid opening, or submission deadline for
proposals,the DBELO shall evaluate all bids/proposals to determine whether the
bidders/proposers submitted all the information required by 49 CFR §26.53{b).The
responsible bidder with the lowest apparent bid price, or the most highly ranked proposer,
who also meets the contract-specific DBE goal or demonstrates sufficient good faith efforts
shall be recommended for the contract award. In the event that the bidder with the lowest
monetary bid price fails to meet the contract-specific goal or fails to demonstrate sufficient
good faith efforts, or is otherwise unresponsive or not responsible, the DBELO shall evaluate
the bidder with the next lowest bid price. Should the DBELO determine that additional
information is needed to evaluate a bidder's or proposer's submission with regard to the
DBE requirements,the DBELO shall request said bidder or proposer to submit the required
information or may contact the listed DBEs directly.
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
b) Evaluation of DBE Certification Status: Petaluma Transit shall require that any DBEs listed
by bidders for participation in the contract be certified DBEs as of the time of bid opening.
The DBELO shall review the Bidder's DBE Report to confirm each DBE firm's certification
status. Petaluma Transit shall accept current certifications by any recipients of U.S. DOT
funds acceptable to Petaluma Transit in accordance with 49 CFR Part 26.
c) Determination of Amount of DBE Participation:The DBELO shall review the total dollar
value of the work to be performed by DBEs and the total contract bid price reported on the
Prime Contractor and Subcontractor/Subconsultant/Supplier Report for accuracy and shall
compare it to the contract-specific goal established for the contract.
d) Determination of Good Faith Efforts: If the amount of DBE participation does not meet the
contract-specific goal,the DBELO shall review the good faith efforts form submitted by the
bidder, provided in Exhibit B-3. Failure to submit the Good Faith Efforts form will render the
proposal "nonresponsive."The DBELO shall determine whether the bidder has performed
the quality, quantity and intensity of efforts that demonstrates a reasonably active and
aggressive attempt to meet the contract-specific goal in accordance with 49 CFR Part 26,
Appendix A.
e) Bidder's Right to Administrative Reconsideration:The DBELO will notify the bidder in
writing in the event that the DBELO determines that the apparent low bidder has not met
the contract-specific goal and has not demonstrated good faith efforts.The notification shall
include the reasons for the determination and that the bidder has the right to submit
further written documentation or appear before the review committee for reconsideration
prior to the time that staff present a recommendation for award of contract to the City
Council or the Transit Manager, depending on the size of the contract.
Within five (5) business days of being informed by Petaluma Transit that it is not
responsive/responsible because it has not met the contract-specific goal or has not
documented sufficient good faith efforts, a bidder may request administrative
reconsideration. Bidder should make this request in writing to the following official: Ray
Atkinson, DBELO, 555 North McDowell Blvd, Petaluma, CA 94954, telephone number 707-
776-3711. The Bidder's request will then be forwarded to a reconsideration official who has
not played any role in the original determination that the Bidder did not document sufficient
good faith efforts.
The Bidder will have the opportunity to provide written documentation or argument
concerning the issue of whether it met the goal or made adequate good faith efforts to do
so.The Bidder will have the opportunity to meet in person with the assigned
reconsideration official to discuss the issue.The reconsideration official shall provide
Petaluma Transit with a written decision on reconsideration, explaining the basis for its
determination. If the administrative consideration finds that the bidder has not met the
contract goal or demonstrated good faith efforts,the DBELO will deem said bidder not
responsive and evaluate the bidder submitting the next lowest bid.The DBELO will send the
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
bidder a written decision on its reconsideration, explaining the decision.The result of the
reconsideration process is not administratively appealable to the Department of
Transportation.
f) Recommendation for Award: Following the determination of the lowest responsive and
responsible bidder,the DBELO shall prepare a report on the lowest responsive and
responsible bidder's compliance with the DBE requirements for review by the Transit
Manager and for presentation to the City Council, if applicable, at the time the contract
award is considered. If the City Council or the Transit Manager disagrees with the
recommendation, it shall reject all bids or refer the matter back to staff for further
evaluation and recommendation.The decision of the City Council or the Transit Manager on
the award of contract, if such a decision is made, shall be final and binding on all parties
subject to compliance with Petaluma Transit's bid protest procedures.
H. Counting DBE Participation (Sections 26.55)
Only the work actually performed by a DBE will be counted towards the DBE goal.The cost of supplies
and materials obtained by the DBE or equipment leased (except from the prime contractor or its
affiliate) may also be counted. Work that a DBE subcontracts to a non-DBE firm does not count toward
DBE goals.
Expenditures may only be counted if the DBE is performing a commercially useful function. A DBE should
perform at least thirty percent{30%J of the total cost of its contract with its own work force.
If materials or supplies are obtained from a DBE manufacturer, 100 percent(100%) of the cost will be
counted. If the materials and supplies are purchased from a DBE regular dealer, 60 percent (60%) of the
cost will be counted. DBE achievement will not be counted toward the overall goal until the DBE has
been paid. If contract-specific goals are set,the DBELO will track the participation of DBEs in contract-
specific goal contracts separately from the participation of DBEs that are considered race-neutral.
Additionally,the DBELO will not count that portion of a DBE's participation that is achieved after the
certification of the DBE has been removed during the performance of a contract.
A DBE subcontractor may not be terminated (or an approved substitute DBE firm) without prior written
Petaluma Transit consent.This includes, but is not limited to, instances in which a prime contractor
seeks to perform work originally designated for a DBE subcontractor with its own forces or those of an
affiliate, a non-DBE firm, or with another DBE firm.
V. CERTIFICATION STANDARDS (Subpart D and Appendix E)
A. California Unified Certification Program (Section 26.81)
Petaluma Transit uses California Unified Certification Program ("CUCP")to develop overall and project
level DBE goals and to identify available DBE businesses by skill area.The CUCP makes all DBE
certification decisions on behalf of U.S. DOT recipients in the state. Petaluma Transit is a non-certifying
agency. Petaluma Transit relies upon the CUCP for the certification of DBE firms and ensures that only
firms certified as eligible DBEs participate in the Program. Should Petaluma Transit decide to change its
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
non-certifying status and elect to become a certifying agency, Petaluma Transit will apply the standards
of Subpart D and Appendix E of the Regulations.
B. Procedures for Certification Decisions (Section 26.83)
Petaluma Transit relies on CUCP DBE certification program and does not make certification decisions or
recertify.The California UCP follows the certification standards of Subpart E of Part 26 to determine the
eligibility of firms to participate as DBEs in DOT-assisted contracts.A copy of the CUCP certification
procedures and/or the CUCP program is available at https://dot.ca.gov/programs/civil-rights/dbe-
certification-information
VI. COMPLIANCE AND ENFORCEMENT (SUBPART F)
Petaluma Transit will enforce contract compliance with the DBE requirements, in accordance with 49
CFR Section
A. Responsibilities for Use of Information, Confidentiality, Cooperation, and Intimidation
or Retaliation (Section 26.109)
Aside from any provisions of Federal or state law, Petaluma Transit will not release any information that
may reasonably be construed as confidential business information to any third party without the written
consent of the firm that submitted the information. Should Petaluma Transit take on the role of a DBE-
certifying agency, it will not release applications for DBE certification and supporting information.
Petaluma Transit will transmit this information to FTA in any certification appeal proceeding or to any
other state to which the firm has applied for certification.
Petaluma Transit will keep the identity of complainants confidential, at their request. Petaluma Transit
will advise the complainant for the purpose of waiving the privilege if confidentiality will hinder the
investigation, proceeding, or hearing or result in a denial of appropriate administrative due process to
other parties. Petaluma Transit will advise complainants that failure to waive the privilege may result in
closure of the investigation or dismissal of the proceeding or hearing.
Petaluma Transit will cooperate fully and promptly with USDOT and recipient compliance reviews,
certification reviews, investigations, and other requests for information. Petaluma Transit will not
intimidate,threaten, coerce, or discriminate against any individual or firm for the purpose of interfering
with any right or privilege secured by 49 CFR§26 or because the individual or firm has made a
complaint,testified, assisted, or participated in any manner in an investigation, proceeding, or hearing
under the federal DBE regulations.
VII. Exhibit A
DBE Liaison Officer's DBELO Duties and Responsibilities (Section 26.25)
1. Analyzing and assessing the available resources and evidence for the establishment,
achievement, and further improvement of annual overall DBE goals for U.S. DOT-assisted
contracts each fiscal year;
2. Developing, monitoring, and evaluating the Diversity Program for Contracts, and preparing
supplemental written procedures and guidelines to implement the Program;
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
3. If Petaluma Transit becomes a certifying member of the CUCP, maintaining and updating the
DBE Database in accordance with 49 CFR§ 26.31;
4. Maintaining and updating the Bidders List in accordance with 49 CFR§ 26.11;
5. Conducting race-neutral and gender-neutral measures to facilitate the participation of small
business concerns, including DBEs,through outreach and other community programs,training
and business development programs, restructuring contracting opportunities, informing and
assisting with preparing bids, simplifying bonding, surety and insurance requirements or other
race-neutral means;
6. Participating in the contract bid and award process, including recommending specific contract
goals where appropriate, reviewing contract specifications, attending pre-bid conferences and
evaluating bids for contractor responsiveness, responsibility, and good faith efforts;
7. Analyzes Petaluma Transit's progress toward attainment and identifies ways to improve
progress;
8. Monitoring specific contract performance, actual DBE participation, contract payments, and
purchase requisitions;
9. Monitoring overall DBE participation, adjusting overall goals and means of achievement,
assessing areas of over-concentration of DBE participation, and reporting to the Transit
Manager, Petaluma City Council, FTA, and Caltrans on behalf of FTA and FHWA, as needed;
10. If Petaluma Transit becomes a certifying member of the CUCP, determining all certification
actions including initial certifications, recertifications, denials, and removals;
11. Participating in the statewide Unified Certification Program in accordance with 49 CFR §26.81,
and CUCP MOA;
12. Assisting Petaluma Transit's Managers and Staff in the review committee for the evaluation of
submittals;
13. Participating in regional outreach activities (may be supported by direct designee);
14. Participating in other transit organizations on common issues pertaining to diversity programs
for contracts (may be supported by direct designee);
15. Maintaining all appropriate records and documentation of the Program; and,
16. Develop and submitting a revision of the DBE Program to FTA whenever there are substantive
changes to content or agency staffing, organization, or leadership that pertain to the
implementation of this Program.
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
VIII. Exhibit B
A. Petaluma Transit Organization Chart
Peggy Flynn
Clry Manager
ChdstoDher Balt
Direcbr-PublicWOUsB
Utllltles
Jaretl Hall Transit Advisory
Transit Manager Commitlee
Jamiea Anderson Ray Aticinson Vacant Cady Spencer
General Manager Senior Transp RannermBEL0) Translr5petlalisr Rannerl
Famoq Patel DispetcheU Customer Vacant
Sarery80per.b..Menage SerylCe Maintenance SUDervlmr
Fu4TYne-0
PET
Vacant Felix Hernantlez David Munoz
Street Supervisor Mechanic-A FuelerANasber
Operators/Dmers
Fixes apure-tla
ParaYansil-5
1 1 TRANSIT
ORGANIZATION
1l • CHART
Note that Petaluma Transit's DBELO is the Senior Transit Planner.
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE 2/9/2023
B. PRIME CONSULTANT AND SUBCONTRACTORJSUBCONSULTANT/SUPPLIER REPORT
To be completed by Prime Contractor and submitted as part of bid/proposal.
NAME OF PROJECT/PROPOSAL PROJECT/PROPOSAL NUMBER:
PROPOSER BUSINESS NAME &ADDRESS
NAME OF PERSON SUBMITTING BID SIGNATURE OF PROPOSER Date:
CONTACT PERSON NAME CONTACT PHONE NUMBER CONTACT EMAIL
IMPORTANT: 1) Identify all DBE and/or SBE firms being claimed for credit. 2) List names of all DBE and/or SBE
subcontractors and their respective items of work. 3)Attach a copy of the proof of DBE and/or SBE certifications for
each DBE/SBE subcontractor listed on this form.4)Attach "Intent to Perform" letter signed by the subcontractor
LIST BUSINESS FIRM(s) Item of
work, Annual Type
List Name,Address, Service NAICS Gross Certified of Award Percentage
Phone Age Certified of Contract
and Contact Person(if Email or Code Receipts SBE Certified DBE Amount
Number of DBE � Participation
not the same as Address Materials of Firm (Y/N) (Y/N) Agency
above) firm Supplied
A. PRIME
Subcontractor/Venclor/Joint Venture
TOTAL $
* NAICS Code North American Industry Classification System Code. Codes can be found at http://www.census.gov/naics
**Type of DBE: (1) Black Americans (2) Hispanic Americans (3) Native Americans (4)Asian-Pacific Americans
(5)subcontinent Asian Americans (6) Women (7) Other(designated by the Small Business Administration)
-DBEs must be certified by Caltrans or an agency participating in the California Unified Certification Program.Visit the
Caltrans Website at: https:Hdot.ca.gov/programs/civil-rights/dbe-certification-information
-SBEs must be certified by the California Department of General Services(https://caleprocure.ca.gov/pages/index.aspx)
-Important:Attach the proof of certification for each DBE/SBE firm used toward meeting the DBE/SBE goal
-This information will be used to create and maintain a federally-required bidder list, regardless of DBE/SBE
participation
-Use additional sheets as necessary
Item 4e
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE 2/9/2023
C. GOOD FAITH EFFORTS DOCUMENTATION
I , of
----------------------------------- ------------------------------
(name) (title;
---------------------------------------- certify that our company made the following
(Bidder/Proposer)
Good Faith Efforts to meet the DBE goal on Petaluma Transit RFP No.
Attach Additional Sheets as Necessary. Include any Additional Efforts
• A company representative attended the pre-bid meeting: YES NO
• A newspaper/online advertising log: (Attach copies of advertisements):
Newspaper/Other Type of Publication
Publication (Minority/General/Trade) Dates of Advertisement
• Selected portions of the work to be performed by DBEs
Prim Estimated
Work Categories Subcontractor/Supplier Budget for this item Additional Comments
• Made efforts to assist interested DBEs in obtaining bonding, lines of credit, insurance or
any necessary equipment, supplies, materials, etc. (List any specific offers made by your
company)
31
Item 4e
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
• Solicited the following DBEs (add additional lines if necessary)
Date Contacted Name of DBE Firm Contact Person Phone# Work Categories
• Followed up with initial contacts
Date Contacted Name of DBE Firm Bidding/Proposing Phone# Add'I Comments
(Yes or No)
Contacted the following other agencies or organizations in recruitment of DBEs
Date Organization Phone#
As shown by the documentation provided to Petaluma Transit, we feel that we have made good faith efforts
to attain the contract DBE goal
Signature: Date:
Item 4e
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
D. SMALL BUSINESS ENTERPRISE AFFIDAVIT OF SIZE
If your business was certified by any of the following,please complete and submit this form with a
copy of your certification.For use by Prime Contractors, Subcontractors, Subconsultants, and
Suppliers. See Exhibit C, section Al and B further information.
• SMBE/SWBE Certification by state other than California, provided that your firm's average
annual gross receipts fall below the SBAindustry-specific size cap and in no case exceed
$23.98 million.
• SB Certification by the California DGS,provided that your firm's average annual gross
receipts fall below the SBA industry-specific size cap and in no case exceed $23.98
million.
• SBA 8(a) Certification by the Small Business Administration provided that your firm's average
annual gross receipts fall below the SBA industry-specific size cap and in no case exceed
$23.98 million.
• SBE/MBE/WBE Certification by any California county or local government-certifying agency
or out-of-state government-certifying agency, provided that your firm's average annual
gross receipts fall below the SBA industry-specific size cap and in no case exceed
$23.98 million.
HEREBY DECLARE AND AFFIRM that I am the (Title)
duly authorized representative of (Name of Firm)
whose address is and whose phone number is
HEREBY DECLARE AND AFFIRM that the firm is a Small Business Enterprise (SBE) in accordance with
the Petaluma Transit standards as defined in its Diversity Program for Contracts. The firm is certified as
of the date that Petaluma Transit receives the bid/proposal for:
(RFP/RFQ Name) and I will provide the certification to document this fact with this enclosure
I DO SOLEMNLY DECLARE AND AFFIRM UNDER THE PENALTIES OF PERJURY THAT
THE CONTENTS OF THE FOREGOING STATEMENTS ARE TRUE AND CORRECT,AND THAT
I AM AUTHORIZED,ON BEHALF OF THE ABOVE FIRM, TO MAKE THIS AFFIDAVIT.
(Date) (Name) (Title)
Item 4e
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
IX. Exhibit C
SMALL BUSINESS ENTERPRISE ELEMENT (Section 26.39)
Petaluma Transit has established a Small Business Enterprise element(SBE Program) as one of its race-neutral methods
of achieving small business participation, including disadvantaged businesses, on particular contracts with
subcontracting opportunities.This SBE element will apply to all federally funded Petaluma Transit contracts where race-
neutral and gender-neutral methods are employed. Petaluma Transit will take all reasonable steps to eliminate
obstacles for SBEs to participate as prime contractors or subcontractors in Petaluma Transit's procurement activities.
The agency's business development program will utilize the networking opportunities, resources and educational
programs for DBEs that Petaluma Transit cosponsors with peer transportation agencies in the Bay Area.
A. Definition of Small Business Enterprise
To participate as an eligible small business in programs administered by Petaluma Transit, a firm must meet both
of the following requirements:
1. A firm (including affiliates) must be an existing small business as defined by Small Business
Administration (SBA) regulations, 13 CFR Part 121,for the appropriate type(s) of work that a firm
performs.The firm must hold one of the acceptable certifications listed in Section B below.
2. Even if a firm meets the above requirement,the firm's (including affiliates') average annual gross
receipts over the previous three years cannot exceed the DBE maximum cap of$23.98 million (or as
adjusted for inflation by the Secretary of U.S. DOT). SBA size standards vary by industry, and for certain
industries may be higher than the $23.98 million cap. Affiliates are defined in SBA regulations 13 CFR
Part 121.103. Information on SBA size standards is located at: https://www.sba.gov/document/support-
table-size-standards
For example, the SBA size standard for a general construction contractor is$39.5 million. If a general
construction contractor's average annual gross receipts over the previous three years is$25 million, it
would be ineligible to participate as a small business for Petaluma Transit purposes as it exceeds $23.98
million.This is despite the fact that it meets the SBA size standard.
B. Acceptable Comparable Small Business Enterprise Certifications
Petaluma Transit is a non-certifying agency and will accept the small business enterprise certifications
performed by other agencies, provided that the size standards described in Section Ala and Alb above are met.
If a firm is certified in one or more of the following programs and meets Petaluma Transit size standards,the
firm is automatically deemed a small business for Petaluma Transit purposes.The term "SBE" will be used
collectively for qualified SBEs, WBEs, MBEs, and other approved certifications. As indicated below, Petaluma
Transit may require an affidavit of size for each SBE prime contractor or subcontractor. Certifications from self-
certification programs are not acceptable. Firms must be certified as of the time of bid submittal.
1. Disadvantaged Business Enterprise(DBE)certification pursuant to U.S. Department of Transportation
regulations, 49 CFR Part 26.This includes DBE certifications performed by the CUCP, by the Unified Certification
Program of any other state, and by other DBE-certifying transportation agencies.
Item 4e
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
2. State Minority Business Enterprise(SMBE)State Women Business Enterprise(SWBE)certification by the State
of California or by any other state provided that their certification complies with Section A land 2 above. In
addition to copies of SMBE/SWBE certifications, bidders certified out-of-state must submit an affidavit of size for
each SMBE/SWBE prime contractor or SMBE/SWBE subcontractor at the time of bid submittal.
3. Small Business(SB) certification by the California Department of General Services (DGS) provided that their
certification complies with Section A land 2 above. In addition to copies of SB certifications, bidders must
submit an affidavit of size for each SB prime contractor or subcontractor at the time of bid submittal.
4. Microbusiness(MB)certification by the California Department of General Services for ALL industries.
5. SBA 8(a) by the Small Business Administration provided that their certification complies with Section A land 2
above. In addition to copies of SBA 8(a) certifications, bidders must submit an affidavit of size for each SBA 8(a)
prime contractor or SBA 8(a) subcontractor at the time of bid submittal.
6. SBE/MBE/WBE certification from other state,county,or local government-certifying agency provided that
their certification complies with Section A land 2 above. In addition to copies of certifications, bidders must
submit an affidavit of size for each certified prime contractor or subcontractor at the time of bid submittal.
C. Race-Neutral SBE Measures
Petaluma Transit will continue its efforts to enhance small business participation through outreach and other
community programs, training and business development programs, restructuring contracting opportunities,
simplifying bonding, surety and insurance requirements or other race-neutral means. Petaluma Transit may also
strive to unbundle or split large contracts to ensure that a reasonable number of prime contracts are of a size
that small businesses, including DBEs, can reasonably perform and/or establish contract-specific SBE goals
where appropriate.
D. Determining and Adopting a Contract-Specific SBE Goal
For federally funded contracts, Petaluma Transit may establish contract-specific goals on particular prime
contracts with subcontracting opportunities as a means of increasing small business (including DBE)
participation.The Transit Manager and DBELO will evaluate the availability of subcontracting opportunities on a
contract-by-contract basis.
The factors outlined below will be considered to determine whether a contract-specific goal should be
established for a particular contract:
1. The full range of activities in the proposed contract;
2. The availability of SBEs as prime contractors or subcontractors in the types of work involved in the
performance of the proposed contract. As part of this analysis, staff will consult the U.S. General
Services Administration "System for Award Management" (SAM) Registry for information on the
availability of SBEs for various types of work at https://www.sam.gov/SAM/or the California General
Services department supplier search at https://caleprocure.ca.gov/pages/PublicSearch/supplier-
search.aspx;
3. The unique conditions of the project that might affect the ability of the prime contractor to coordinate,
utilize, or incorporate subcontractors or suppliers into the project. (Projects consisting of only one or
two sub-trades may not be appropriate for a contract-specific goal due to the fact that establishing a
goal could result in restrictive bidding.);
4. The effect that the contract-specific goal might have on the time of completion;
5. Any other relevant criteria.
Item 4e
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Where a contract-specific SBE goal is established,the bidder or proposer must meet the contract-specific goal or
demonstrate good faith efforts. Submittals that fail to document a bidders' solicitation of SBE participation, or good faith
efforts to do so, will not be considered "responsive."
Exhibit C-1 SBE GOAL DECLARATION FORM
SBE GOAL DECLARATION FORM
Prime Contractor
Contract/RFP Name
Select One:
The bidder/proposer is a certified SBE in accordance with Petaluma Transit standards. A copy
of our certification is enclosed.
The bidder/proposer commits to subcontract at least %of its Net Bid Price with one or
more certified SBEs for a Commercially Useful Function in the performance of the contract.
Note: Please list SBEs in the Prime Contractor and Subcontractor/ Subconsu/tant/Supplier
Report.
The bidder/proposer hereby submits documentation of a verifiable Good Faith Effort.
Signature
Date
Documents to Be Included with Bids or Proposals with SBE Goal
1. SBE Goal Declaration
2. Prime contractor and subcontractor/subconsultant/supplier report
3. Copies of SBE Certifications
4. SBE Affidavits (as required; see list of acceptable certifications)
5. Good Faith Efforts Documentation
Item 4e
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
Exhibit B to Resolution
City of Petaluma — Petaluma Transit
Disadvantaged Business
Enterprise ( DBE ) — Goal
Federal Fiscal Years 23-25
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Petaluma Transit
Disadvantaged Business Enterprise (DBE) Goal
Table of Contents
Introduction....................................................................................................................................2
Petaluma Transit Federally Assisted Contract Opportunities from Fiscal Years 2023 through
2025 ...............................................................................................................................................2
Overall DBE Goal Methodology .....................................................................................................3
Step 1: Compute Base Figure..............................................................................................3
Step2: Adjust Base Figure .................................................................................................9
Use of Race-Neutral Methods and DBE Contract Goals...............................................................11
Public Participation in Setting the Overall DBE Goal ...................................................................12
Conclusion....................................................................................................................................12
Attachment1 ...............................................................................................................................14
Public Notice Disadvantaged Business Enterprise (DBE) Goal For Federal Fiscal Years
2023-2025
2
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Introduction
Under the requirements of the Code of Federal Regulations 49 C.F.R. Part 26.45 (Participation
by Disadvantaged Business Enterprises in U.S. Department of Transportation (USDOT)
Programs), Petaluma Transit developed an overall Disadvantaged Business Enterprise (DBE)
goal for DBE participation from Federal Fiscal Year (FFY) 2023 through FFY 2025 in contracting
opportunities that may include federal funding. Petaluma Transit's proposed overall DBE goal
for FFY 2023-2025 is 6.16% of the federal financial assistance for FTA-assisted contracts,
exclusive of contracts related to the purchase of transit vehicles.
The regulations require federal recipients to prepare the overall goal using a two-step process.
According to the USDOT Tips for Goal Setting, the recipient must first determine a base figure
for the relative availability of certified DBEs and potentially certified Minority and Woman-
owned Business Enterprises, hereafter collectively referred to as Disadvantaged Business
Enterprises (DBEs), in the relevant market area. The base figure is intended to be a
measurement of the current ready, willing, and able DBEs as a percentage of all businesses
ready, willing, and able to perform the recipient's anticipated FTA-assisted contracts.
Next, the recipient must examine all relevant evidence to determine what adjustment, if any, is
needed to the base figure in order to arrive at an overall goal. The final adjusted figure is the
recipient's overall goal and represents the proportion of federal transportation funding that the
recipient is expected to allocate to DBEs during the subsequent three federal fiscal years. Once
the agency determines the adjusted overall goal, the process requires considering what portion
of the goal will be met by race- and gender-neutral measures.
Petaluma Transit evaluates whether to maintain a race- and gender-neutral goal in accordance
with 2005 case law affecting federal recipients in California. A review of disparity studies will
inform the recommendation.
This Overall DBE Goal Setting Report is based on the DBE regulations contained in 49 CFR Part
26.45, as amended, the decisions of the United States Federal Court, and the USDOT Guidance
Memorandum. The goal identifies the relative availability of DBEs based on evidence of ready,
willing, and able DBEs in relationship to all comparable businesses known to be available to
compete in Petaluma Transit's FTA-assisted contracts.
Petaluma Transit will submit this goal methodology for FFY 2023-2025 to the Federal Transit
Administration (FTA) for review. Petaluma Transit's recommended overall DBE goal for the
period is 6.16%, which reflects the weighted base figure. The 6.16%goal will be achieved
through race-neutral methods. The FTA reporting period for the recommended overall goal will
be October 1, 2022, to September 30, 2025.
3
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Petaluma Transit Federally Assisted Contract Opportunities from Fiscal Years 2023 through
2025
Petaluma Transit calculated the projected number, types of work, and dollar amounts of
contracting opportunities that will be funded, in whole or in part, by U.S. DOT federal financial
assistance for the three-year reporting period. Exclusive of contracts for vehicle purchases, FTA-
assisted contracting opportunities for Fiscal Years 2023 through 2025 are expected to primarily
consist of a new fixed route and paratransit operating contract, improvements to bus stop
amenities, facility rehabilitation and safety upgrades, AVL equipment for new buses, and
scheduling software. Additional projects may be undertaken if additional federal revenue
becomes available, and Petaluma Transit will adjust the overall DBE goal if necessary. The
anticipated contracts and purchases are listed below in Table 1. Note that DBE goals for Transit
Vehicle Manufacturers are established through a separate FTA process.
Table 1
Actual and anticipated value of FFY 2023-25 FTA-assisted contracts and percent of total
amount
Project Federal Dollars Percent of
Total
Fixed Route Operations and Maintenance $6,687,873 61.27%
Paratransit Operations and Maintenance $3,238,736 29.67%
Bus Stop Amenities and Access $90,000 0.27%
Facility Rehabilitation and Safety Upgrades $127,985 1.17%
AVL Equipment for New Buses $740,000 6.78%
Scheduling Software $90,000 0.82%
Total Anticipated Federal Value of New $10,914,594 100%
Contracts and Purchases
Overall DBE Goal Methodology
The overall goal is expressed as a percentage of the total amount of U.S. DOT funds Petaluma
Transit anticipates expending in the three forthcoming fiscal years. As described below,
Petaluma Transit used a two-step process to establish the overall DBE goal.
Step 1: Compute Base Figure
As specified in 49 CFR 26.45(c), Petaluma Transit developed a base figure to determine the
relative availability of DBEs to perform work on the anticipated contracts and purchases. The
formula for calculating the relative availability of DBEs for each project is:
Base figure=Ready, willing, and able DBEs/divided by
All firms ready, willing and able (including DBEs and non-DBEs)
4
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Based on guidance from FTA and the U.S. DOT Office of Small and Disadvantaged Business
Utilization, Petaluma Transit computed a weighted-base figure that considers the relative size
of the anticipated contracts.
The weighted base figure was developed by:
1) Using the 2022 California Unified Certification Program Directory to identify the number of
registered DBEs willing to perform work in Petaluma Transit's market area for each of the
anticipated procurements, based on the NAICS (North American Industry Classification System)
code(s) most relevant to each contract or purchase. Petaluma Transit's market area is
determined based on where the substantial majority of bidders are located, as documented in
the District's Bidders List. For the purposes of the DBE goal, the market area is defined as the
San Francisco—Oakland—Hayward, CA Metropolitan Statistical Area (MSA) combined with the
Santa Rosa, CA Metro Area MSA. This combined area includes six counties: Alameda, Contra
Costa, Marin, San Francisco, San Mateo, and Sonoma Counties.The number DBEs in the market
area, by NAICs code, is listed in Table 2.
2) Using 2020 County Business Patterns (CBP) data from the U.S. Census Bureau to identify the
total number of businesses available in Petaluma Transit's market area for work on each
contract, based on the same NAICS codes. This data was released on April 28, 2022. Table 2 lists
the number of businesses in the market area, by NAICs code.
3) Dividing the number of DBEs by the number of all businesses to determine the relative
availability of DBES in the market area for each contract and weighted for contracts with more
than one identified work category. The proportion of DBEs available by each procurement type
is listed under "% DBE" in Table 3.
Table 2
Data on Availability of DBEs and Businesses for Anticipated Contracts by NAICS Code
Anticipated Contracts NAICS Code Available # of
Businesses Registered
in the CBP DBEs'
Fixed Route Operations 485113 — Bus & Other Motor 11 0
and Maintenance Vehicle Transit Systems
Paratransit Operations & 624120 — Services for the 673 0
Maintenance Elderly and Disabled
Bus Stop Amenities and 332311 — Poured Concrete 224 31
Access Foundation & Structure
Facility Rehabilitation 238160 — Roofing Contractors 390 10
and Safety Upgrades
AVL Equipment for New 334220 — Radio & Television 22 4
Buses Broadcasting & Wireless
5
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Communications Equipment
Manufacturing
Scheduling Software 541511 — Custom Computer 3,179 232
Programming Services
Notes:
1) Available Business in Six County Business Census Patterns (Two MSA's Combined) by NAICS Code
2) Based on DBEs in California Unified Certification Program
Table 3 extracts all the NAICS codes from the anticipated projects and identifies the proportion
of DBEs available to work in Sonoma County using the CUPC database of DBEs and the data
from U.S. Census County Business Patterns for the two Metropolitan Statistical Areas by code.
Table 3: Relative Availability by NAICS Code for FFY 2023-25
NAICS Description Available Available DBE% of
Businesses DBEs Available
in the CBP Businesses by
NAICS
485113 Bus & Other Motor Vehicle 11 0 0.00%
Transit Systems
624120 Services for the Elderly and 673 0 0.00%
Disabled
238110 Poured Concrete Foundation 224 31 13.84%
& Structure
238160 Roofing Contractors 390 10 2.56%
334220 Radio & Television 22 4 18.18%
Broadcasting & Wireless
Communications Equipment
Manufacturing
541511 Custom Computer Programming 3,179 232 7.30%
Services
Total 6,781 774 11.41%
Table 4 aggregates anticipated contract expenditures by NAICS code identified for contracting
and possible subcontracting opportunities. The table assigns both a proportionate dollar
amount for each code and a percentage of the total anticipated estimate of federal dollars.
6
DocuSign Envelope ID:AD4A6A9D-A129-41E8-A881-9226885325DE
2/9/2023
Table 4: Summary of Anticipated Dollar Amounts by NAICS Code
NAICS Description Anticipated % of Total
Contract Dollars
485113 Bus & Other Motor Vehicle Transit $6,687,873 61.27%
Systems
624120 Services for the Elderly and $3,238,736 29.67%
Disabled
238110 Poured Concrete Foundation & $30,000 0.27%
Structure
238160 Roofing Contractors $127,985 1.17%
334220 Radio & Television Broadcasting & $740,000 6.78%
Wireless Communications
Equipment Manufacturing
541511 Custom Computer Programming $90,000 0.82%
Services
Total $10,914,594
The Base Figure is derived by dividing the number of ready, willing, and able DBE firms
identified for each work category by the number of all firms identified for each corresponding
work category (relative availability), weighting the relative availability for each work category
by the corresponding work category weight from Table 4 (weighted ratio), and adding the
weighted ratio figures together.
Base Figure =1(Number of Ready, Willing, and Able DBEs) x Weight x 100
Number of All Ready, Willing, and Able Firms
Table 5: Weighted-Base Figures for FTA-Assisted Contract Expenditures FFY 23-25
NAICS Industry Description NAICS Base % Total Weighted
Figure Expenditures Base Figure
485113 Bus & Other Motor Vehicle 0% 61.27% 0.00%
Transit Systems
624120 Services for the Elderly and 0% 29.67% 0.00%
Disabled
238110 Poured Concrete 13.84% 0.27% 0.04%
Foundation & Structure
238160 Roofing Contractors 2.56% 1.17% 0.03%
334220 Radio & Television 18.18% 6.78% 1.23%
Broadcasting & Wireless
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Communications Equipment
Manufacturing
541511 Custom Computer 7.30% 0.82% 0.06%
Programming Services
Total 6.16% 100% 6.16%
As shown in Table 5 above, the Weighted Base Figure is equal to the sum of the Weighted
Ratios for all NAICS Work Categories and is calculated at 6.16%.
Step 2: Adjust Base Figure
Per 49 CFR 26.45(d), following calculation of a base figure, all available evidence must be
examined to determine what adjustment, if any, is needed to the base figure to arrive at the
overall DBE goal. The primary form of evidence available is the past participation of DBEs in
Petaluma Transit contracting. Since Petaluma Transit is creating its first DBE goal in 2022, it has
not tracked past participation of DBEs in contracting.
Bidders' List-Section 26.45(c.3)
Petaluma Transit will maintain a Bidder's list as set forth in 49 CFR Part 26.11 of bidders for its
federal and non-federally assisted projects. Petaluma Transit will review this list and determine
that the data derived from this list substantiates the market area for contractors, including DBE
contractors, as outlined above.
Sources from Organizations and Institutions -Section 26.45(g.1)
Directly and through the Business Outreach Committee, Petaluma Transit communicates with
various contractor associations, minority business associations, and the DBE and SBE business
communities in general.
Applicability of Disparity Studies
In developing the FFY 2023-25 DBE goal, Petaluma Transit staff reviewed two disparity studies.
Findings from the Caltrans and SFMTA studies are described below. In both cases, the size and
nature of their projects differ significantly from Petaluma Transit's projects. Petaluma Transit
will consider the findings of these and future disparity studies in the conduct of its DBE
participation program, including outreach and education activities with the Bay Area Business
Outreach Committee, to ensure access to bid opportunities for all eligible MBE/WBE's.
Caltrans commissioned an FTA Disparity Study in July of 2020. The study was completed in
August 2021. The study found that minority-and woman-owned businesses participation in
transit-related contracts that Caltrans and subrecipient local agencies awarded during the study
8
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
period was substantially lower than what one might expect based on the availability of those
businesses for that work. Results did vary substantially across individual groups as follows:
• Five groups exhibited disparity indices substantially below parity: Asian Pacific
American-owned businesses, Black American-owned businesses, Hispanic American-
owned businesses, Native American-owned businesses, and Subcontinent Asian
American-owned businesses.
• Non-Hispanic white woman-owned businesses did not exhibit a disparity on all Caltrans
and subrecipient local agency contracts considered together.
The Caltrans study also analyzed the results separately for transportation-related construction
and professional services contracts. It found overall that minority-and woman-owned
businesses participation was higher in construction work than in professional services work.
San Francisco Transportation Authority (SFMTA) completed a disparity study in early 2016. The
SFMTA marketplace for construction and related goods contracts consists of four Bay Area
counties (San Francisco, Alameda, San Mateo, and Santa Clara) and Los Angeles County.
SFMTA's marketplace for professional services contracts are the same four Bay Area counties of
San Francisco, Alameda, San Mateo, and Santa Clara. Petaluma Transit's market area includes
the North Bay and does not include Santa Clara or Los Angeles Counties.
The SFMTA Disparity Study's findings include:
• SFMTA's race/gender-neutral measures appear to be effective for Minority-owned
businesses (MBEs) in construction and professional services contract categories with
two exceptions.
• Evidence supports a conclusion that race-neutral measures have not assisted Black
American construction contractors to participate fully and equitably in SFMTA federally
assisted construction contracts.
• Women-owned businesses (WBEs) are substantially underutilized on SFMTA FTA-funded
contracts, whether WBEs participate as prime contractors or subcontractors in either
construction or professional services contract categories, inclusive of goods.
Petaluma Transit will continue to participate in the DBE research, educational, and outreach
activities with its San Francisco Bay Area peers in the Business Outreach Committee. Petaluma
Transit will monitor its current and future procurements to identify possible trends in DBE
participation, progress in meeting its race-neutral goal, and determine whether a race-
conscious goal is needed in the future.
Historic DBE Participation in Petaluma Transit Contracts
Petaluma Transit became a direct federal recipient in 2008. Petaluma Transit has had a limited
number of federally assisted contracts. Due to starting our DBE program in 2022, Petaluma
Transit has not previously tracked DBE participation in our contracts.
9
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
In the US DOT Tips for Goal Setting in the Disadvantaged Business Enterprise Program, page 7
suggests that an agency can make a Step 2 adjustment by averaging the base figure with the
past median DBE participation.
The DBE participation rate in Petaluma Transit's federally assisted contracts is based on the
proportion of new federally assisted contracts awarded to DBEs during FFY 2020-22 as follows:
• FFY 2020: N/A
• FFY 2021: N/A
• FFY 2022: N/A
Using the method in the Tips for Goal Setting, the median for historic participation rate would
be used in federally supported procurements. An adjusted goal would be determined in the
following formula:
1. FFY 2023-25 Base Figure = 6.16%
2. Median Past Participation = N/A
3. Adjustment Factor= (6.16%) +(N/A) divided by 2 = 6.16%
Consideration of an Adjusted Overall DBE Goal for FFY 2023-25
Due to no past participation, Petaluma Transit has concluded that the 6.16 percent figure does
not need to be adjusted. This is based on the Step 2 analysis.
FFY 23-25 Procurements and DBE Opportunities
In FFY 2023-25, anticipated federally funded contract awards are for a new fixed route and
paratransit operating contract, improvements to bus stop amenities, facility rehabilitation and
safety upgrades, AVL equipment for new buses, and scheduling software.
Use of Race-Neutral Methods and DBE Contract Goals
The U.S. DOT regulations require that race-neutral methods be used to the maximum extent
feasible to achieve the DBE overall goal. Race-neutral methods include making efforts to assure
that bidding and contract requirements facilitate participation by DBEs and other small
businesses; unbundling large contracts to make them more accessible to small businesses;
encouraging prime contractors to subcontract portions of the work that they might otherwise
perform themselves; and providing technical assistance, communications programs, and other
support services to facilitate consideration of DBEs and other small businesses.
Because of the emphasis on race-neutral methods, Petaluma Transit does not propose to set
contract-specific DBE goals on FTA-assisted contracts to be awarded in Federal Fiscal Year 2023
through Fiscal Year 2025. Instead, Petaluma Transit will focus on developing race-neutral
10
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
methods for facilitating DBE participation. Petaluma Transit will advise prospective contractors
of areas for possible subcontracting, and of the availability of ready, willing, and able
subcontractors, including DBE firms, to perform such work. Petaluma Transit will carefully
monitor its progress during the year and may establish contract-specific goals if race-neutral
methods do not appear sufficient to achieve the overall DBE participation goals for Federal
Fiscal Year 2023 through Fiscal Year 2025. It is anticipated that the DBE goal for FTA-assisted
contracts will be achieved through race-neutral methods.
Public Participation in Setting the Overall DBE Goal
Under 26.45(g), Petaluma Transit plans to participate in various professional services and/or
construction outreach and assistance events throughout the year. Petaluma Transit plans to be
a member of the Business Outreach Committee (BOC), which is a group of 38 transit and
transportation agencies located in the San Francisco Bay Area that includes BART, SFMTA,
Caltrans, Golden Gate Bridge, Highway and Transportation District, SamTrans/JPB, AC Transit,
Alameda CTC, Sonoma County, Central Contra Costa Transit Authority, the Metropolitan
Transportation Commission, and other smaller agencies. The BOC issues a quarterly newsletter
with upcoming contracting opportunities, helpful hints on how to respond to bids, information
on no-cost educational courses, and contact information for each BOC member's DBE Liaison
and/or Contract Administrators.
Conclusion
Petaluma Transit has prepared this goal setting and methodology report for submission to FTA,
in compliance with the procedures outlined in 49 CFR Part 26, as amended, requiring DOT
grantees to establish a DBE overall goal as a percentage of all FTA funds expected to be
expended in the three forthcoming federal fiscal years. A 6.16% DBE overall goal has been
established for all FTA-funded contracts anticipated to be awarded for FFY 2023-2025.
Petaluma Transit will monitor progress on this goal by tracking individual contracts for DBE
participation and payments respective to the federal fiscal year of award.
Interested parties are encouraged to submit comments to:
Ray Atkinson, DBE Liaison Officer
Petaluma Transit
555 N McDowell Blvd
Petaluma, CA 9494
Or
11
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Federal Transit Administration, Region IX
Attention: Civil Rights Officer
San Francisco Federal Building
90, 7th Street, Suite 15-300
San Francisco, CA 94103
12
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Attachment 1
Public Notice Disadvantaged Business Enterprise (DBE) Goal For Federal
Fiscal Years 2023-2025
In accordance with regulations of the U.S. Department of Transportation (DOT), 49 CFR Part 26,
Petaluma Transit announces its proposed goal over the following Federal Fiscal Years 2023,
2024, and 2025 goal of 6.16%for DBE participation on contracts assisted by the Federal Transit
Administration (FTA).
The proposed goal and its rationale are available for public review for the next 30 days during
normal business hours from 8:00 a.m. to 5:00 p.m., Monday through Thursday, at Petaluma
Transit, 555 N McDowell Blvd in Petaluma, CA 94954, and on our web page at
https://transit.cityofpetaluma.net/.
Written comments will be accepted by Petaluma Transit and FTA for 30 days following
publication of this notice. The District's Federal Fiscal Year 2023-2025 goal may be adjusted by
any comments received.
Interested parties are encouraged to submit comments to:
Ray Atkinson, DBE Liaison Officer
Petaluma Transit
555 N McDowell Blvd
Petaluma, CA 9494
Comments may also be submitted to the Federal Transit Administration, Region IX, Attention:
Civil Rights Officer, San Francisco Federal Building, 90, 7th Street, Suite 15-300, San Francisco,
CA 94103.
Empresa Comercial en Desventaja (DBE) meta de Petaluma Transit
para los anos fiscales 2023-2025
De acuerdo con las regulaciones del Departamento de Transporte de los EE. UU. (DOT), 49 CFR
Parte 26, Transito de Petaluma (Petaluma Transit) anuncia su objetivo propuesto para los
siguientes Anos Fiscales Federales 2023, 2024 y 2025 objetivo de 6.16% pars la participacion de
DBE en contratos asistidos por la Administracion Federal de Transito (FTA).
La meta propuesta y su justificacion estan disponibles para revision publica durante los
proximos 30 dias durante el horario laboral normal de 8:00 a.m. a 5:00 p.m., de lunes a jueves,
en Transito de Petaluma, 555 N McDowell Blvd en Petaluma, CA 94954, y en nuestra pagina
web en https://transit.cityofpetaIuma.net/.
13
DocuSign Envelope ID:AD4A6A9D-Al29-41 E8-A881-9226885325DE
2/9/2023
Transito de Petaluma y la FTA aceptaran comentarios por escrito durante los 30 dials
posteriores a la publicacion de este aviso. La meta del ano fiscal federal 2023-2025 Transito de
Petaluma puede ajustarse por cualquier comentario recibido.
Se anima a las partes interesadas a enviar comentarios a:
Ray Atkinson, DBE Liaison Officer
Petaluma Transit
555 N McDowell Blvd
Petaluma, CA 9494
Los comentarios tambien pueden enviarse a la Administracion Federal de Transito, Region IX,
Atencion: Oficial de Derechos Civiles, Edificio Federal de San Francisco, 90, 7th Street, Suite 15-
300, San Francisco, CA 94103.
14