DBEGoodfaith.com Newsletter

October 2008  -  Volume 3, Number 10  -  California Edition  -  www.dbegoodfaith.com

in this issue
Gov. Approves Retention and Park  Const. Bills
DBE Program Return Delayed Again

Vote 'Yes!' on Prop. 1A and Prop. 12

What is DBE Goodfaith?

Governor Approves Retention and Park Construction Bills

At the end of September, California Governor Arnold Schwarzenegger signed into law Senate Bill 593, which prohibits the California Department of Transportation (Caltrans) from withholding retention when making progress payments to contractors for state-funded projects. The California Public Contract code previously directed Caltrans to retain at least five percent of the contract price until its completion.

In the past, Caltrans used retention to maintain financial control over the project – which enabled them to be sure that the project was satisfactorily completed. Many contractors, however, pointed out that Caltrans often delayed making the retention payments after the projects were completed without a valid reason.

During committee hearings on the bill, Caltrans officials said that the elimination of retention will not increase their project costs because payment and performance bonds ensure that contractors perform and complete work to the satisfaction of the agency.

While SB 593 restrains Caltrans ability to withhold retention, the law does not apply to other California departments or agencies. Also, prime contractors can withhold retention if subcontractors cannot secure a performance bond. The law will become effective on January 1, 2009 and expire on January 1, 2014.

Gov. Schwarzenegger vetoed another bill last month that would have required all contractors to obtain a special license from the Contractors State License Board before performing work on public works projects. If the bill had passed, contractors would have been burdened with additional testing and fees.

Also, in early October, Gov. Schwarzenegger signed into law Assembly Bills 31 and 2494, which aim to facilitate park and affordable housing rehabilitation and construction.

“We all know that over the past few decades California has grown tremendously,” said Gov. Schwarzenegger. “Many of our communities were built up very quickly over these few decades and very fast this state developed, so that parks and open spaces were neglected at the same time, especially in urban and in low-income areas. In a state that is leading the way in the nation and the world when it comes to protecting our environment, I think we can do much better than that.”

While AB 31 directly provides $400 million in Proposition 84 money to build new parks, AB 2494 exchanges local government construction of affordable housing for grant money allocated to park construction. Funding for park construction under AB 2494 comes from Proposition 1C, the $2.85 billion housing bond passed in November 2006.

As stipulated in AB 2494, the HCD and Department of Parks and Recreation (DPR) will issue grants to cities and counties that:

  • Are critically underserved by park and recreation facilities;

  • Have implemented affordable housing plans approved and supervised by the HCD; and

  • Have issued building permit for new construction of affordable housing.

Assembly Bill 31 also tasks DPR with establishing methods for determining which California cities will be allocated funding and distributing the parks-allocated Proposition 84 grants to the cities.

The passage of these two bills is good news for landscaping and playground contractors, who will likely see an increased demand for their services in the coming year. Contractors interested in bidding on projects funded through AB 31 and AB 2494 should keep an eye on city and county public work sites for bid notices.

To read the Senate’s Bill 593 analysis, visit:

To read AB 31, visit: http://leginfo.ca.gov/pub/07-08/bill/asm/ab_0001-0050/ab_31_bill_20080930_chaptered.html

To read AB 2494, visit: http://leginfo.ca.gov/pub/07-08/bill/asm/ab_2451-2500/ab_2494_bill_20080930_chaptered.html 

To read Gov. Schwarzenegger’s comments about AB 31 and AB 2494, visit: http://gov.ca.gov/index.php?/speech/10733/

DBE Program Return Delayed Again

In meetings held across the state in August, California Department of Transportation (Caltrans) officials predicted that the state’s Disadvantaged Business Enterprise (DBE) program would be re-implemented in October. The program’s re-launch, however, has been delayed for a second time because the Federal Highway Association (FHWA) is requesting more information about the proposed changes from Caltrans.

Originally, Caltrans expected to receive FHWA approval for its DBE program plans in August.

The department has proposed an overall DBE participation goal of 13.5 percent for the 2009 Fiscal Year – meaning that the accumulated DBE utilization on individual contracts should equal the overall goal. Race-conscious and race-neutral measures are expected to be equally utilized to meet the annual participation goal.

The Caltrans proposal also excludes Asian/Subcontinent Americans and Hispanic Americans from the list of minority subcontractors eligible for the fulfillment of race-conscious goals.

DBE Goodfaith will continue to keep you up-to-date regarding the re-implementation of California’s DBE program.


Vote 'Yes!' on Prop. 1A & Prop. 12

Proposition 1A: “The Safe, Reliable High-Speed Passenger Train Bond Act”

Proposition 1A Explained

Originally slated for the 2004 ballot, Proposition 1A would allocate $9.95 billion to the California High-Speed Rail Authority for the construction of a San Francisco-Los Angeles rail line and improvements to local rail systems. The state will raise funding required by Prop. 1A through 30-year general obligation bonds. The $9.95 billion, however, is insufficient for the completion of these projects; as a result, the Authority will rely on the federal government matching the funds to cover the total cost.

In total, Prop. 12 will cost an estimated $19.4 billion ($9.95 billion plus bond costs). Also, once the Proposition-funded high-speed rail line construction is completed, maintenance is expected to cost upwards of $1 billion annually.

Why Proposition 1A Right for Californians
Despite the cost of Prop. 1A, it will provide numerous benefits to Californians. First, it will offer long-distance commuters an affordable and reliable alternative to driving. Secondly, it will help ease congestion on the roadways for the state’s growing population which, in turn, reduces the amount of harmful carbon emissions into our environment. Finally, the injection of almost $10 billion will create jobs and help maintain the vitality of California’s construction industry.

Proposition 12: Veterans Bond Act of 2008

Proposition 12 Explained
Unanimously passed by the Senate and Assembly to be placed on the ballot, Proposition 12 sets aside $900 million to help California veterans obtain loans for the of purchase farms and homes. The California Legislative Analyst’s Office estimates that the total cost of Prop. 12 to the state will be approximately $1.8 billion ($900 million principal plus interest).

Why Proposition 12 is Right for Californians
In service to their nation, veterans sacrificed their most formative years. It is Californians’ patriotic duty to support programs that help secure the welfare of veterans when they return from duty – just as veterans helped secure the welfare of all Americans through their service abroad.

To read more about Prop. 1A, visit:

To read more about Prop. 12, visit:

What is DBE Goodfaith?

DBE Goodfaith Inc. is an outreach assistance firm dedicated to providing a web-based service solution for construction and other firms seeking socially and economically disadvantaged business (DBE/DVBE/WBE/SBE/MBE/HUB) participation on government funded projects.

With the help of our services, businesses can comply with the Good Faith Effort requirements of state and local government agency disadvantaged business programs. By placing subcontracting opportunity ads on our website and directly soliciting disadvantaged business firms via email, fax, and telephone, we help take the stress of out the Good Faith Process and allows firms to concentrate on the business of providing the most competitive bids on their projects. To ensure that all disadvantaged businesses are included in our outreach procedures, we maintain an up-to-date database of all registered disadvantaged firms in California, Nevada, New York, and soon Texas. When customers search our online database they can easily find disadvantaged businesses by their location and/or by the type of goods and services or work they provide.

Also, in an effort to inform and educate the community on procurement, construction, and other pertinent topics, we send out electronic newsletters throughout the year. In our e-newsletter, businesses can find in-depth discussions on procedures and regulations effecting disadvantaged business programs, analysis of current events, and valuable resources such as events listings. We also offer construction trade and focus information on our website related to DVBE, DBE, MBE, WBE, and other programs.

For more information on our services, please visit our website at: http://www.dbegoodfaith.com

Interested in reading in-depth coverage of McCain and Obama's transit and veteran policy positions?

Read DBE Goodfaith's Election Edition Newsletter Exclusively at

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Upcoming Events

Visit for Major CA EVEnts

Getting Started with Gov't Contracting

This workshop will cover the certification qualifications, benefits and application websites for  federal and state certifications.


Time: 9:00 AM - 12:00 PM

Where: 1227 Bridge Street, Suite C, Yuba City, CA 95901

Phone: (866) 382-7822

Getting Started with Gov't Contracting

This workshop will cover the certification qualifications, benefits and application websites for  federal and state certifications.


Time: 9:00 AM - 12:00 PM

Where: 5121 Van Nuys Boulevard, Third Floor
Van Nuys, CA 91403

Phone: (866) 382-7822

Getting Started with Gov't Contracting

This workshop will cover the certification qualifications, benefits and application websites for  federal and state certifications.


Time: 9:00 AM - 12:00 PM

Where: College of the Siskiyous, 2001 Campus Drive, Board Room, Yreka, CA 96097

Phone: (866) 382-7822

Gov't Subcontracting

When: 10/30/08

Time: 9:00 AM - 12:00 PM

Where: Alliance SBDC, 1020 Tenth Street, Suite 102, Modesto, CA 95354

Cost: Free

Phone: (866) 382-7822


8th Annual Women's Business Seminar
This seminar, hosted by the South Bay Latino Chamber of Commerce, provides future female entrepreneurs opportunities to listen to expert speakers and participate in a networking event.

When: 11/1/08
Time: 9:00 AM - 1:00 PM
Proud Bird Restaurant, 11022 Aviation Blvd., Los Angeles, CA 90045
Cost: Free
Phone: (310) 676-8646
Email: candy@sblcc.net


Caltrans & Port of Oakland Business Procurement Fair
The fair is designed to enable small and disabled veterans businesses to meet with Caltrans purchasers, and have an opportunity to network and sell their products. Only SBE's and DBE's are invited to this event.

10:00 AM - 2:00 PM
Jack London Aquatic Center, 115 Embarcadero, Oakland, CA
(510) 286-7096



Doing Business with the Gov't
This workshop will provide you with a simple overview of how to sell your products and services to the Federal, State and Local Governments.

Time: 9:00 AM - 11:00 AM
Inland Empire SBDC, 1201 Research Park Drive, Suite 100, Riverside, CA 92507

Cost: $20
(951) 781-2345

Free and Low Cost Resources for Your Business
When: 11/5/08

Time: 9:00 AM - 11:00 AM
SBA Entrepreneur Center, 455 Market Street, 6th Fl., San Francisco, CA 94105

Cost: Free

Phone: (415) 744-6777


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