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Home My WebLink About202-05 RESOLUTION• RESOLUTION NO. 202-05 A RESOLUTION TO ACCEPT AND APPROVE TI‘ UPDATED FAYETTEVILLE MUNICIPAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE (DBE)' PROGRAM PARTICIPATION GOALS FOR FY2006. 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 FY2006. PASSED and APPROVED this 18th day of October, 2005. ATTEST: I3y ` cA. ••v'.... A• S , L\� Y p c G% p• F cc;• •'PS E ;FAYETTEVILLE• ( SONDRA SMITH, City Clerk APPROVED: By DAN COODY, May Ray M. Boudreaux • Submitted By City of Fayetteville Staff Review Form City Council Agenda Items Contracts • OGT /I/ u'95 City Council Meeting Date Aviation & Economic Development Division � Action Required: ACTION REQUIRED: l_ResolutiiQp-(o accept and approve the updated Fayetteville Municipal Airport Disadvantaged Business Enterprise (DBE) Program Participation Goal in 2006 for Airport Improvement Grant Project 3-05-0020- 0035-20061 West GA Apron Phase II Wig/o5 240E L»/sacfcxzn u9-' cwsrnt 55 G-ftiigrrSc. OL General Government Department $0.00 Cost of this request NA Account Number NA Project Number Budgeted Item NA Category/Project Budget NA Funds Used to Date NA Remaining Balance Budget Adjustment Attached t Department Director ate OS City Attorney Finance and Internal Service Director Mayo Comments: /zJos Dat NA Program Category / Project Name NA Program / Project Category Name Airport Fund Name 147-00, 150-01, 81-03 Previous Ordinance or Resolution # 97-04, 87-05 Original Contract Date: Original Contract Number: NA NA Received in City Clerk's Office aeevle ARKANSAS Staff Review Memorandum • TO: Fayetteville City Council THRU: Ray M. Boudreaux, Director Staff Review Committee FROM: James L. Nicholson, Financial Coordinat r / DBE Liaison DATE: September 26, 2005 SUBJECT: Disadvantaged Business Enterprise (DB ) Program Goal Update for FY2006 Recommendation: Review & Approval of a Resolution to accept the Fayetteville Municipal Airport Disadvantaged Business Enterprise (DBE) Program Goal Update for FY2006. 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 for all Department of Transportation (DOT/FAA) grant recipients which anticipate receiving more than $250,000 in federal funds in the fiscal year Drake Field anticipates receiving approximately $278,500, (West GA Ramp Phase 11), from the DOT/FAA in FY 2004. The DBE Program assures that Minority & 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 value of procurement contracts targeted for award to DBE contractors in the fiscal year The regulation provides the methodology to be used to set contract DBE participation goals. Discussion: The purpose of this item is a new resolution amending Fayetteville City Council Resolution No. 87-05. Resolution No. 87-05 approves the Revised Disadvantaged Business Enterprise Program to be implemented for all DOT/FAA grant assisted contracts entered into by the City of Fayetteville Municipal Airport. The new resolution will accept and approve the airport's updated DBE participation goal for FY 2006. Budget Considerations: No budget effect. Action Requested: A motion to accept and approve the updated DBE participation Goal for FY 2006. rjn Attachment: FY 2006 Goal Update & Methodology Resolution 87-05 • • RESOLUTION NO. A RESOLUTION TO ACCEPT AND APPROVE THE UPDATED FAYE'ITEVILLE MUNICIPAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM PARTICIPATION GOALS FOR FY2006. 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 Munici al+ Airport Disadvantaged Business Enterprise (DBE) Program partic. ailio got for FY2006. PASSED and APPROVED this 18th day of October, 2005. APPROVED:+ By: SONDRA.ySMITTFT"City Clerk COODY, Mayor • • RESOLUTION NO. 87-05 A RESOLUTION TO ACCEPT AND APPROVE THE UPDATED FAYETTEVILLE MUNICIPAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM PARTICIPATION GOALS FOR FY2005. 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 FY2005. PASSED and APPROVED this 3rd day of May 2005. ATTEST. By: % 'C YOc.G� cs EEO: "3S :FAYETTEVILLE: %3-'4q47(A N S Pc' W iiiiiiiiiiiii SONDRA SMITH, City Clerk APPROVED: By DAN COODY, Mayor Airport Sponsor: Name of Preparer: • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2006 Update City of Fayetteville James Nicholson, Financial Coordinator Fayetteville Municipal Airport/Drake Field 4500 S School Ave., Suite F, Fayetteville, AR 72701 Goal Period: 10/01/05 thru 9/30/06 — AIP Grant No. 3-05-0020-0035-2006 Overall DBE Goal: 1.31% Introduction to 2006 DBE Goal update: The City of Fayetteville / Fayetteville Municipal Airport DBE Goal update for Fiscal Year (FY) 2006 and extending through the completion of the Airport Improvement Project (AIP) noted above, is provided to describe the Airport Projects which arc funded in part with Department of Transportation (DOT) / Federal Aviation Administration (FAA) funds, and to detennine 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 AIP grant funding for airports which anticipate receiving more than $250,000 in federal funding from the DOT / FAA in the 2006 fiscal year. The 2006 DI3E Goal Update revises the DBE participation goal in federally funded airport contracts anticipated for the 2006 fiscal year, from that originally described in the airport's previously published DI3E Program Plan and successive annual goal updates. The FY 2006 Goal Update is effective concurrent with the solicitation of bids through completion of the grant funded project. Public Participation and Consultation in the DISE 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. A number of interested private and public entities were selected to review and comment on the Goal Update, (see attachntent #1 - list of consulting agencies). Public continents on the updated goal and methodology arc incorporated with the submission to the FAA. Public comments on the proposed FY 2006 Goal will be received until 10/15/05, (sec attachment #2 — comments) Comments on the FY 2006 DBE Goal Update may be submitted to the Fayetteville Municipal Airport's DISE 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@ei.fayetteville.ar.us • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2006 Update OVERALL GOALS (§26.45) Goal Period 10/1/05 — 9/30/06 Amount of Goal Fayetteville Municipal Airport's overall goal for Grants: AIP 35 is: 1.31 % Fayetteville Municipal Airport anticipates one AIP (federally funded) project in FY 2006. The estimated project costs are $278,500 for "West -Side GA Apron — Phase 1I". Thus, the total projected dollar amount of DBE participation in the projects is: $3,648.00 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 area The local market arca is the arca which provides, or is most likely to provide, the firms considered qualified to perform the needed work. West -Side GA Apron — Phase 11: We used the most recent Census data available (2002) for the Fayetteville -Springdale -Rogers MSA which includes Washington and Benton Counties, and three surrounding Arkansas counties: Crawford, Franklin, and Madison counties. Effectively all contractors for airport improvement construction work 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 are included in this assessment: Franklin and Madison counties. Considerations in selecting Market Area West -Side GA Apron — Phase 11: A primary condition of asphalt or concrete pavement work is the distance from the material producer's location to the worksite. The pavement material is time limited in its workability before 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 established relationships with the local material producers. • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2006 Update Our Washington County, Arkansas location, situated in a central valley of the Boston Mountains, also contributes to an insulated climate for this type of construction work. Accessibility to distant material producers by trans -state highway is limited by mountain terrain and distances of surrounding rural arca The available DBE Contractors in the 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 July 13, 2005. • • Overall Coal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2006 Update Methodology - Step 1 The Fayetteville Municipal Airport / Drake field anticipates awarding two AIP funded project contracts in FY 2006. The projects are: LWcst-side GA Apron - Phase 1I, consisting of 4700 sy yd of apron pavement. Project No. 1: West -side GA Apron - Phase 11 2002 NAICS Code Work Item DBE's in Local Market Area All Available Firms 237310 Highway, Street & Bridge Construction 0 11 238110 Concrete Contractor 1 51 327320 Ready Mix Concrete Mfg 0 12 238120 Structural steel & Precast Concrete 1 2 238210 Electrical Contractors 0 112 237310 Striping (Hwy, St, & Bridge Construction) 0 48 238910 Site Preparation Contractors 1 46 484220 Dump Trucking, local specialized 3 20 Totals for this Construction Contract 6 302 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 = 6 / 302 = 1.987% • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2006 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 2006 airport contracts. Past years DBE accomplishment results data for similar projects are examined and the median percentage is 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 2003 .73 1.99 Taxiway Construction 2004 1.18 1.13 Taxiway Construction 2005 1.0 .63 Aircraft Apron (In Progress) Median % 1.00 .63 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 + Historical Avg. / 2 = Adjusted Figure (1.987+0.630)/2 = 1.31 • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2006 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 are 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 Market research was conducted to determine the number of Hispanic -owned businesses in the State. Three local Hispanic issues related organizations were contacted for their input. No applicable statistics or listings were available from these groups. 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. One noticeable change in the overall environment is that the number of all available contractors in the Local Market Area is less than that recorded in the previous Goal Update. 1t may he reasoned that due to the very strong growth economy in the region, there has been some consolidation of like businesses, where marginally performing firms are edged out of the market. No other factors regarding the local DBE environment could he 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 2006 adjusted goal could be met through race -neutral means, we again reviewed historical DBE accomplishments for Fayetteville / Drake Field. FYV has not typically met its DBE goal in any year since 1997, excepting FY 2003. Therefore, we estimate that in meeting our overall 2006 adjusted goal of 1.31%, we will obtain 0% from race -neutral participation and 1.31% from race -conscious measures (e.g. setting contract goals). • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2006 Update Attachment #1 - List of Consulting Agencies ARKANSAS STATE HIGHWAY & TRANSPORTATION DEPARTMENT MR JAMES MOORE, DBE COODINATOR PO BOX 2261 LITTLE ROCK AR 72203-2261 'ames.moorc@ahtd.state.ar.us 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 CAROL J SILVERSTROM 2120 RIVERFRONT DRIVE SUITE 100 LITTLE ROCK AR 72202-1794 Fax: (501) 324-5199 or (501) 324-5491 carol.silvcrstrom@sba.gov patricia walker@sba.gov www.sha.gov/ar/ 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 • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2006 Update ARKANSAS DEPARTMENT OF ECONOMIC DEVELOPMENT DBE OFFICER ONE CAPITOL MALI, LITTLE ROCK AR 72201 FAYETTEVILLE CHAMBER OF COMMERCE PO BOX 4216 FAYETTEVILLE AR 72702-4216 FCC@arkansasUSA.com AIRPORT MINORITY ADVISORY COUNCIL SHIRLINGTON GATEWAY 2800 SHIRLINGTON RD. SUITE 940 ARI,INGTON 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 WASITINGTON DC 20006 PHONE: 202 293-8500 FAX: 202 331-1362 HISPANIC WOMEN'S ORGANIZATION OF ARKANSAS DBE OFFICER PO BOX 6132 SPRINGDALE AR 72766 479-751-9494 hwoa_@,jdjonesnet.org • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2006 Update ARKANSAS WOMEN'S BUSINESS DEVELOPMENT CENTER SOUTHERN FINANCIAL PARTNERS 605 MAIN STREET SUITE 203 ARKADELPHIA AR 71923 info@southcmfinancialpartners.org ARK MINORITY SUPPLIER DEVEL COUNCIL ARMSDC/TEAM 300 SPRING BLDG SUITE 415 LITTLE ROCK, AR 72201 Tel (501) 374-7026 • Fax (501) 371-04 info(d?armsdc.org DIVERSITYBUSINESS.COM 200 PEQUOT AVENUE SOUTHPORT, CT 06890 hup://www.div2000.com/ FEDERAL ACCESS WEBSITE LAW OFFICES OF J. COBBIE DE GRAFT WORLDGATE PLAZA 12801 WORLDGATE DRIVE SUITE 500 HERNDON VA 20170 703-726-0197 703-726-0198 FAX hilp://www.fedaccess.com/ MINORITY BUSINESS ENTREPENEUR 3528 TORRANCE BLVD. SUITE 101 TORRANCE CA 90503 310-540-9398 310-792-8263 http://www.mbemag.com/ kbamctt@mbemag.com NORTHWEST ARKANSAS LULAC COUNCIL 754 PO BOX 1842 BENI'ONVILLE AR 72712 TELEPHONE: 479-544-9174 contactr,nwalulac754.org • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2006 update Attachment #2 — Comments Comments will be received until October 15, 2005 Clarice Pearman -Res. 202-05 From: Clarice Pearman To: Boudreaux, Ray Subject: Res. 202-05 Ray, Attached is a copy of your division's agenda item passed by City Council, October 18, 2005 regarding Disadvantaged Business Enterprise Program update. CC: Bell, Peggy; Deaton, Vicki Page 1