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Home My WebLink About81-03 RESOLUTION• • RESOLUTION NO. 81-03 • A RESOLUTION TO ACCEPT AND APPROVE THE UPDATED FAYETTEVILLE MUNICIPAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM PARTICIPATION GOALS FOR FY2003. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby accepts and approves the updated Fayetteville Municipal Airport Disadvantaged Business Enterprise (DBE) Program participation goals for FY2003. PASSED and APPROVED this 3rd day of June, 2003. • ;IA Erre • C. Pott to —. By YJKALfAR! ,Y SONDRA SMITH, City Clerk APPROVED: By: DAN COODY, May NAME OF FILE: CROSS REFERENCE: Item # Date Resolution No. 81-03 Document • 1 06/03/03 Res. 81-03 2 05/20/03 staff review form draft resolution memo to City Council copy of Overall Goal & Methodology copy of Resolution No. 150-01 3 06/11/03 memo to Ray Boudreaux NOTES. • FAYETTEVP,LE THE CITY OF FAYETTEVILLE. ARKANSAS DEPARTMENTAL CORRESPONDENCE e To: Ray Boudreaux Aviation & Economic Development From: Clarice Buffalohead-Pearman 00 City Clerk's Division Date: 6/11/2003 Re: Resolution 81-03 Attached is an executed copy of the above resolution passed by the City Council, June 3, 2003, approving the updated airport Disadvantaged Business Enterprise (DBE) Program. This resolution and plan will be microfilmed and filed with the city clerk's office. If anything else is needed please let the clerk's office know. /cbp Attachment(s) cc Nancy Smith, Internal Auditor STAFFIEW FORM - NON-FINANCIAL OBBGATION NA CONTRACT REVIEW ge.d-. 8'/-o3 bb/3 2003 DBE Goal Update For the Fayetteville City Council Meeting of: June 3, 2003 FROM: Ray M. Boudreaux Name Airport Aviation & Economic Development Division Department ACTION REQUIRED: Review and approve 2003 DBE Goal Update SUMMARY EXPLANATION: The City of Fayetteville / Fayetteville Municipal Airport DBE Goal update for Fiscal Year (FY) 2003 is provided to describe the Airport Projects which are funded in part with Department of Transportation (DOT) / Federal Aviation Administration (FAA) funds, and to determine by the federally prescribed methodology the portion or percentage of those funds targeted for contract award to Disadvantaged Business Enterprises (DBE's) in accordance with Federal Regulations 49 CFR Part 26. The Goal Update is a prerequisite for Airport Improvement Project (AIP) grant funding for airports which anticipate receiving more than $250,000 in federal funding from the DOT / FAA. The 2003 DBE Goal Update revises the DBE participation goal in federally funded airport contracts anticipated for the 2003 fiscal year, from that originally described in the airport's previously published DBE Program Plan and successive annual goal updates. STAFF RECOMMENDATION: Review and approve Division Head % w - ney Di Fin-nce & Internal Services Dir. .1 Chief I Mayor Date l9-03 Date Received in Mayor's Office Cross Reference: Previous Ord/Res#: Orig. Contract Date: Orig. Contract Number: New Item: s/9/03� Date /97—cr7) 1 15 -0 -Ds RESOLUTION NO. A RESOLUTION TO ACCEPT AND APPROVE THE UPDATED FAYETTEVILLE MUNICIPAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM PARTICIPATION GOALS FOR FY2003. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkanss hereby accepts and approves the updated Fayetteville Municipal< po t Disadvantaged Business Enterprise (DBE) Program partici p ti re'go Is for FY2003. PASSED and APPROVED this 3rd day of June, 2003. FAYETTE4PILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN GOODY, MAYOR 4500 School Ave., Suite F Fayetteville. AR 72701 479.710.7042 AVIATION AND ECONOMIC DEVELOPMENT RAY M. BOUDREAUX, DIRECTOR • TO: Fayetteville City Council FROM: James L. Nicholson, Fina dinator / DBE Liaison THRU: Ray M. Boudreaux, Dire DATE May 16, 2003 SUBJECT: Disadvantaged Business Enterprise (DBE) Program Goal Update br FY2003 Background: On October 14, 2000, the Fayetteville City Council approved the Fayetteville Municipal Airport s revised Disadvantaged Business Enterprise Program. The Airport's DBE Program is federally mandated under 49 CFR Part 26 br all Department of Transportation (DOT/FAA) grant recipients Mich anticipate receiving more than $250,000 in federal funds in the fiscal year. Drake Field anticipates receiving approximately $1.7 million, (Taxiway "A" Extension -USDA Forestry Service firebase project) from the DOT/FAA in FY 2003. The DBE Program assures that Mnority & Women -owned businesses, and.other economically disadvantaged small businesses have an equal opportunity, or "level playing field," in competing for Airport procurement contracts. 49 CFR Part 26 requires that our DBE Program Goal be updated annually The Updated Goal describes the overall DBE participation percentage and welue of procurement contracts targeted for award to DBE contractors in the Iscal year. The regulation provides the methodology to be used to set contract DBE participation goals. Purpose: The purpose of this item is a new resolution amending Fayetteville City Council Resolution No. 150-01-00. Resolution No. 150-01 approves the Revised Disadvantaged Business Enterprise Program to be implemented br all DOT/FAA grant assisted contracts entered into by the City of Fayetteville Municipal Airport. The approved program contains the DBE participation goal level in FY 2002. The new resolution will accept and approve the airport's updated DBE participation goal br FY 2003. Budget Considerations: No budget effect. Action Requested: A motion to accept and approve the updated DBE participation Goal br FY 2003, and forward to the Fayetteville City Council. Staff Recommendation: Review & Approval /in Attachment: FY 2003 Goal Update & Methodology Resolution 150-01 Airport Sponsor: Name of Preparer: s Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2003 Update City of Fayetteville James Nicholson, Financial Coordinator Fayetteville Municipal Airport/Drake Field 4500 S School Ave., Suite F Fayetteville, AR 72701 Goal Period: 10-1-2003 Thru: 9-30-2003 Overall DBE Goal: For review .73% Introduction to 2003 DBE Goal update: The City of Fayetteville / Fayetteville Municipal Airport DBE Goal update for Fiscal Year (FY) 2003 is provided to descnbe the Airport Projects which are funded in part with Department of Transportation (DOT) / Federal Aviation Administration (FAA) funds, and to determine by the federally prescribed methodology the portion or percentage of those funds targeted for contract award to Disadvantaged Business Enterprises (DBE's) in accordance with Federal Regulations 49 CFR Part 26. The Goal Update is a prerequisite for Airport Improvement Project (A1P) grant funding for airports which anticipate receiving more than $250,000 in federal funding from the DOT / FAA. The 2003 DBE Goal Update revises the DBE participation goal in federally funded airport contracts anticipated for the 2003 fiscal year, from that originally described in the airport's previously published DBE Program Plan and successive annual goal updates. The FY 2003 Goal Update is effective October 151, 2002 through September 30`h, 2003. Public Participation and Consultation in the DBE Goal Update process is a requirement under federal regulations at §26.45(g). The updated Goal and Methodology is published for 30 days prior to submittal to the FAA for approval. Comments on the Goal Update are accepted for 45 days after the date of public notification of its availability for public review. Copies of this document were mailed to a number of interested private and public entities for review and comment, (see attachment #1 - list of consulting agencies). Public comments on the updated goal and methodology arc incorporated with the submission to the FAA. Public comments on the proposed FY 2003 Goal were received as of insert date: Comments on the FY 2003 DBE Goal Update may be submitted to the Fayetteville Municipal Airport's DBE Liaison Officer by phone, writing, fax, or e-mail to the following: James Nicholson, DBE Liaison Officer Fayetteville Municipal Airport / Drake Field 4500 South School Ave., Suite F Fayetteville, AR 72701 479-718-7643 479-718 7646 fax jnicholson@ci.fayetteville.ar.us N Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2003 Update OVERALL GOALS (§26.45) Amount of Goa/ Fayetteville Municipal Airport's overall goal for FY 2003 is .73% Fayetteville Municipal Airport anticipates one AIP (federally funded) project in FY 2003. The estimated project cost is $1,700,000 for Construction of an Extension to taxiway "A". Thus, the projected dollar amount of DBE participation in the project is: $ 12,410.00 Determination of Market Area Step 1 of the methodology for determining DBE percentage goal requires an assessment of the relative availability of DBE's in the local market arca The local market area is the area which provides, or is most likely to provide, the firms considered qualified to perform the needed work. We used the most recent Census data available (2001) for Washington County, Arkansas and the four surrounding Arkansas counties, Benton, Crawford, Franklin, and Madison counties. Effectively all contractors for airport improvement work of the nature described in the first section have historically come from the local area, specifically, Washington, Crawford, and Benton County. Except that occasionally a contractor performing ancillary tasks may be recruited from a further distance. However, for the sake of including contractors within a reasonable, feasible range, two other counties bordering Washington County arc included in this assessment: Franklin and Madison counties. A primary condition of concrete pavement work is the distance from the concrete material producer's location to the worksite. Concrete is time limited in its workability beforc spoilage due to the material's short curing time. Thus, local producers are most apt to provide material for this project. Also, local concrete finishing contractors performing this type work have long established relationships with the local concrete producers. Our Washington County, Arkansas location, situated in a central valley of the Boston Mountains, also contributes to the insulated climate for this type of construction work. Accessibility to distant concrete producers by trans -state highway is limited by mountain terrain and distances of surrounding rural area. The available DBE Contractors in Local Market Area are those listed as being certified DBE by the Arkansas State Highway & Transportation Department (AHTD), and listed in AHTD's "Disadvantaged Business Enterprise Directory," published March 5, 2003. Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2003 Update Methodology - Step 1 The Fayetteville Municipal Airport / Drake field anticipates awarding one AIP project contract in FY 2003. The project consists of extending Taxiway "A" and associated aircraft apron approximately 1200 ft. south of Taxiway "D" on the east side and parallel to Runway 16/34. This project is identified in the most recent draft of the airport's Conceptual Land Use Plan. Project No. 1 - Taxiway Extension NAICS Code Work Item DBE's in Local Market Area All Available Firms 23411 Highway & Street Construction 0 15 23571 Concrete Contractor 1 44 32732 Ready Mix Concrete Mfg 0 12 23531 Electrical Contractors 0 104 23599 Markings (other specialty contractor) 0 36 23593 Excavation contractors 2 57 48411 Trucking, local specialized 1 53 Totals for this Construction Contract 4 321 Calculation of Base Figure The base figure is calculated as: the number of available DBE contractors as a percentage of all available contractors in the Local Market Area Base Figure = DBE contractors / all contractors Base Figure=4/321 = 1.24% e a Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2003 Update Methodology - Step 2 Step 2 is an adjustment to the base figure percentage from Step 1 so that the updated goal accurately reflects the actual attainable DBE participation in FY 2003 airport contracts. Past years DBE accomplishment results data for similar projects are examined and averaged with the base figure to determine the adjusted percentage goal. Only projects comprising like work are used for comparison. DBE Goal Accomplishments - Historical Information Year Goal % Accomplishment % Project Type 2000 1.74 0 Access Road Construction 2001 .93 .42 Taxiway / Runway Rehabilitation Average % 1.34 .21 Calculation of adjustment to DBE Base Figure The calculation of the adjusted figure is determined by averaging the base figure and the historical average for like projects. Base Figure + Histoncal Avg. / 2 = Adjusted Figure (1.24+.21)/2= .73 e M Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2003 Update Other Factors Research was conducted to determine if any DBE / small business disparity studies for the region were available. No disparity studies could be located for the region or state. Research was conducted to determine the number of, and the services provided by, DBE -owned financial institutions in the state. A list of all minority owned banks in the U.S., sorted by state, indicates that there arc no minority-owned banks in the state of Arkansas. The latest U.S. Census Data for hispanic population in the Northwest Arkansas Regional area indicates an increase of 815% from 1990 US Census in 2000. This is indicative of the recent influx of hispanic emigrants to the area. We anticipate that there will eventually be an increase of DBE's corresponding to the increase of local minority population as the new emigrants settle and become established. No other factors regarding the local DBE environment could be determined to be an influence on the adjusted DBE goal figure. Breakout of Estimated Race -Neutral and Race -Conscious Participation In determining what percentage of the 2003 adjusted goal could be met through race -neutral means, we again reviewed historical DBE accomplishments for Fayetteville / Drake Field. FYV has not met its DBE goal in any year since 1997. Therefore, we estimate that in meeting our overall 2003 adjusted goal of .73%, we will obtain 0% from racc-neutral participation and .73% from race -conscious measures (e.g. setting contract goals). Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2003 Update Attachment #I - List of Consulting Agencies ARKANSAS STATE HIGHWAY & TRANSPORTATION DEPARTMENT MS. DANA MCCLELLAN PO BOX 226 LITTLE ROCK AR 72203-2261 ARKANSAS SBDC COLLEGE OF BUSINESS ADMINISTRATION 100 SOUTH MAIN SUITE 401 LITTLE ROCK AR 72201 SMALL BUSINESS ADVANCEMENT NATIONAL CENTER UNIVERSITY OF CENTRAL ARKANSAS COLLEGE OF BUSINESS ADMINISTRATION UCA BOX 5018201 DONAGHEY AVENUE CONWAY AR 72035-0001 SMALL BUSINESS ASSOCIATION (SBA) ARKANSAS DISTRICT OFFICE JOSEPH T. FOGLIA 2120 RIVERFRONT DRIVE SUITE 100 LITTLE ROCK AR 72202-1794 ARKANSAS STATE CHAMBER OF COMMERCE 410 S CROSS PO BOX 3645 LITTLE ROCK AR 72203-3645 VETERANS BUSINESS DEVELOPMENT OFFICE ANDY LAMONICA ARKANSAS DISTRICT OFFICE 2120 RIVER FRONT DRIVE ROOM 100 LITTLE ROCK AR 72202 ARKANSAS DEPARTMENT OF ECONOMIC DEVELOPMENT DBE OFFICER ONE CAPITOL MALL LITTLE ROCK AR 72201 FAYETTEVILLE CHAMBER OF COMMERCE Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2003 Update PO BOX 4216 FAYETTEVILLE AR 72702-4216 AIRPORT MINORITY ADVISORY COUNCIL SHIRLINGTON GATEWAY 2800 SHIRLINGTON RD. SUITE 940 ARLINGTON VA 22206 PHONE (703) 379-5701 FAX (703) 379-5703 MINORITY BUSINESS DEVELOPMENT AGENCY TO CONTACT US BY EMAIL: HELP( MBDA.GOV TO CONTACT US BY PHONE: (888) 324-1551 AMERICAN ASSOC OF AIRPORT EXECUTIVES DBE OFFICER 601 MADISON STREET ALEXANDRA VA 22314 703-824-0500 PHONE 703-820-1395 FAX AIRPORTS COUNCIL INTERNATIONAL -NORTH AMERICA DBE OFFICER 1775 K STREET NW SUITE 500 WASHINGTON DC 20006 PHONE. 202 293-8500 FAX: 202 331-1362 7t30 01 11:00a City Clerk's Ofc a 506-7695 RESOLUTION NO. 150-01 MICROFILMED A RESOLUTION TO APPROVE THE DISADVANTAGED BUSINESS ENTERPRISE GOAL UPDATE FOR FISCAL YEAR 2002 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAY sEITEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves the Disadvantaged Business Enterprise Goal Update for Fiscal Year 2002. PASSED and APPROVED this the day of November, 2001. By: " o_ ' /Y(Gel 'Heather Woodruff, City CI APPROVED: By p.1