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Home My WebLink About87-05 RESOLUTION• • 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: .?-\ • GAS Y ....................... 0;9 SG,p _ .. =U• • A: ;FAYETTEVILLE• te. 0 2tP 1RkANSPSJta: �.'y;NGTON ..... �p ,. By: 7 SONDRA SMITH, City Clerk APPROVED: By: DAN COODY, Mayor rave vARKAine Staff Review Memorandum 5/3/4-5 F7 -os bee ron 6a7/s F,�ias • TO: THRU: FROM: DATE: SUBJECT: Fayetteville City Council Ray M. Boudreaux, Dire Staff Review Committee James L Nicholson, Finan ator / DBE Liaison April 12, 2005 Disadvantaged Business Enterprise (DBE) Program Goal Update for FY2005 Recommendation: Review & Approval of a Resolution to accept the Fayetteville Municipal Airport Disadvantaged Business Enterprise (DBE) Program Goal Update for FY2005. 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 $116,605, (Master Plan Update), and $1,075,000 (West GA Apron) from the DOT/FAA in FY 2005. 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. 97-04. Resolution No. 97-04 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 2005. Budget Considerations: No budget effect. an Attachment FY 2005 Goal Update & Methodology Resolution 97-04 • • RESOLUTION NO. 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, Arkans s hereby accepts and approves the updated Fayetteville Municipal pot Disadvantaged Business Enterprise (DBE) Program partic p�atiai go;1s for FY2005. PASSED and APPROVED this 3rd day of May 200 PPROVE By DAJi1ODY, Mayor • RESOLUTION NO, 97_04 A RESOLUTION TO ACCEPT AND APPROVE THE UPDATED FAYETTEVILLE MUNICIPAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM PARTICIPATION GOALS FOR FY2004. 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 FY2004. PASSED and APPROVED this 6th day of July 2004. Al1rb1• By: ilitia-s.) SOA SMITH, City Clerk APPROVED:' By: DAN COODY, Ma s`rER mnt''�6 • ;FAYETTEVILLE: Airport Sponsor Name of Preparers Goal Period: Overall DBE Goal: . Overall Goal and Methodology Fayetteville Munldpal Airport / Drake Field (FYV) FY 2005 Update City of Fayetteville James Nicholson, Financial Coordinator Fayetteville Municipal Airport/Drake Field 4500 S School Ave., Suite F, Fayetteville, AR 72701 Protect Based — AIP Grant No. 3-05-0020-0033-2005 For review 1.0% In*uditdioa to 2005 DBE Gaal update The City of Fayetteville / Fayetteville Municipal Airport DBE Goal update for Fiscal Year (FY) 2005 and extending through the complexion of the Airport Improvement Project (AIP) noted above, is provided to desoabe the Airport Projects which are fimdnd in part with Department of Transportation (D01) / Pcdaal Aviation A_n.mistratim (FAA) fonds, and to determine by the fcdaally prescribed methodology the portion or paomlage oftbose fiords targeted for contract award to Disadvantaged Business Entaprises (DBE's) in accordance with Federal Regulations 49 CFR Part 26. The Goal Update is a prerequisite for A1P grant finding for airports which anticipate receiving more than $250,000 in federal funding from the DOT / FAA in the 2005 fiscal year. The 2005 DBE Goal Update revises the DBE participation goal in federally fimded airport contracts anticipated for the 2005 fiscal year, from that originally described in the airport's previously published DRB Program Plan and successive annual goal updates. The FY 2005 Goal Update is effective concuaeat with the solicitation of bids through completion of the grant funded project®. Prb/ic.Parddpadon and Consulmdon 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 natifdsion of its avarllal:ality for public review. A number of entreated private and public entities was selected to review and comment cal the Goal Update, (see attachment #1 - list of consulting agencies). Public amments on the updated goal and methodology are incorporated with the submission to the FAA. Public comments. on the proposed FT 2005 Goal will be received until 5/4/05, (see attachment #2 — camMICats) Comments on the FY 2005 DBE Goal Update may be submitted to the Fayetteville Municipal Airport's DBE Liaison Ofiiccr 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 inicholsan@df ttevaleaums Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2005 Update OVERALL GOALS 026.45) Goal Period Project / Grant based Amount of Goal Fayetteville Municipal Airport's overall goal for Giants: ALP 33/34 is: 1.0% Fayetteville Municipal Airport anticipates two ATP (federally funded) projects in FY 2005. The estimated project costs are $122,750 for "Auport Master Plan Update" and $1,075,000 for "West -Side GA Apron". Thus, the total projected dollar amount of DBE participation in the projects is: $ 11,998 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 area is the area which provides, oris most likely to provide, the firms considered qualified to perform the needed work Airport Master Plan: We used the most recent Census data available (2002) for the State of Arkansas. West -Side GA Apron: 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 Becton County, except that, occasionally a contractor performing ancillary tasks may be recruited from a farther 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. Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2005 Update Considerations in selecting Market Area Airport Master Plan: Airport Engineering services are provided by a local consulting Engineering company which is hired by means of a professional services selection process. The resulting Agreement for Engineering Services engages the consultant for a 3 to 5 year span. Typically, the Engineering consultant performs 100% of the services. However, the consultant is contractually obligated to seek DBE's for any subconsultant work they may engage for airport projects. West -Side GA Apron: 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. 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 area. 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 March 2, 2005. Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2005 Update Methodology - Step 1 The Fayetteville Municipal Airport / Drake field anticipates awarding two AIP fimded project contracts in FY 2005. The projects are: 1. Airport Master Plan Update, consisting of research and strategic planning for the development of the Airport 2. West -side QA Apron, consisting of 9400 sq yd of apron pavement, access way, and replace sewer line. Project No. 1— Airport Master Pian Update 2002 NAICS Code Work ttem DBE's In Local Market Area All Available Firms 541330 Engineering Consulting Services 1 270 238110 Concrete Contractor 1 51 327320 Totals for this Construction Contract 1 270 Project No. 2 — West -side GA Apron 2002 NAILS 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 48 484220 Dump Trucking, local specialized 3 20 Totals for this Construction Contract 8 302 • Overall Goal and Methodology Fayettevdle.Manidpal Airport / Drake Field (FYV) FY 2005 Update 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 =1+g / 270+302 =1.224% 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 2005 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 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 hie projects. Base Figure + Historical Avg. / 2 = Adjusted Figure (1.224 + 0.775) / 2 =1.0% 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 Median% 1.055 .775 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 hie projects. Base Figure + Historical Avg. / 2 = Adjusted Figure (1.224 + 0.775) / 2 =1.0% • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2005 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. It may be reasoned that due to the very strong growth economy in the region, there has been some consolidation of like businesses, where marginally perforating inns are edged out of the market. No other factors regarding the local DBE environment could be determined to be an influence on the adjusted DBE goal figure. Breakout ofEsdmated Race -Neutral and Race -Conscious Participation In determining what percentage of the 2005 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 2005 adjusted goal of 1.0%, we will obtain 0% from race -neutral participation and 1.0% from race -conscious measures (e.g. setting contract god)• Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2005 Update Attachment #I -List ofConsrrltingAgendes ARKANSAS STATE HIGHWAY & TRANSPORTATION DEPARTMENT MR JAMES MOORE, DBE COODINATOR PO BOX 2261 LITTLE ROCK Alt 72203-2261 james.moore®ahtd.state.ar.us ARKANSAS SBDC COLLEGE OF BUSINESS ADMINISTRATION 100 SOUTH MAIN SUITE 401 LITFLE ROCK AR 72201 SMALL BUSINESS ADVANCEMENT NATIONAL CENTER UNIVERSITY OF CENTRAL ARKANSAS COLLEGE OF BUSINESS ADMINISTRATION UCA BOX 5018201 DONAGHEY AVENUE CONWAY Alt 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. stivershom®sba, gov patricia.walker@nba.gov www.sba.gov/ar/ ARKANSAS STATE CHAMBER OF COMMERCE 410 S CROSS PO BOX 3645 LITTLE ROCK Alt 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 2005 Update ARKANSAS DEPARTMENT OF ECONOMIC DEVELOPMENT DBE OFFICER ONE CAPITOL MALL LITTLE ROCK AR 72201 FAYETTEVII I.F CHAMBER OF COMMERCE PO BOX 4216 FAYETTEVILLE AR 72702-4216 pCCO.arkansasUSA.cont 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: NELPBIMBDAGOV TO CONTACT US BY PHONE: (888) 3241551 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 HISPANIC WOMEN'S ORGANIZATION OF ARKANSAS DBE OFFICER PO BOX 6132 SPRINGDALE AR 72766 479-751-9494 Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) F'Y 2005 Update hwoaC ic£ionesnetorg ARKANSAS WOMEN'S BUSINESS DEVELOPMENT CENTER SOUTHERN FINANCIAL PARTNERS 605 MAIN STREET SUITE 203 ARKADELPHIA Alt 71923 info@southemfinancialpartners.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 DI V ERSITYBUSINES S. COM 200 PEQUOT AVENUE SOUTHPORT, CT 06890 httpJ/www.div2000.com/ FEDERAL ACCESS WEBSITE LAW OFFICES OF J. COBBLE DE GRAFT WORLDGATE PLAZA 12801 WORLDGATE DRIVE SUITE 500 HERNDON VA 20170 703-726-0197 703-726-0198 FAX http.//www.fedaccess.com/ MINORITY BUSINESS ENTREPENEUR 3528 TORRANCE BLVD. SUITE 101 TORRANCE CA 90503 310-540-9398 310-792-8263 http://www.mbemag.com/ kbatnettembemag.com Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2005 Update Adachment #2 — Comments Comments will be received until 5/4/05 • • STAFF REVIEW FORM - NON-FINANCIAL OBLIGATION CONTRACT REVIEW X AGENDA REQUEST For the Fayetteville City Council Meeting of: May 3, 2005 FROM: James Nicholson Name Aviation & Economic Development General Govemment Division Department ACTION REQUIRED: A Resolution to accept and approve the updated Fayetteville Municipal Airport Disadvantaged Business Enterprise (DBE) Program Participation Goal in 2005 for Airport Improvement Grant Project 3-05-0020-0033-2005, Master Plan Update, and 3-05-0020-0034-2005, West GA Apron. SUMMARY EXPLANATION: The City of Fayetteville / Fayetteville Municipal Airport DBE Goal update for Fiscal Year (FY) 2005 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 2005 DBE Goal Update revises the DBE participation goal in federally funded airport contracts anticipated for the 2005 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 Date Departmen Director DotilataTh Finance c Internal Services Dir. Date Received in Mayor's Office S-Cre- cross Reference: Previous Ord/Res#: 81-03, 97-04 ism Date 147-00, 150-01 Date Orig. Contract Date: NA Orig. Contract Number: NA New Item: Yes No X Clarice Pearman Res87-05 Page 1 From: Clarice Pearman To: Boudreaux, Ray Subject: Res87-05 Ray, Attached is a copy of the resolution passed by City Council, May 3, 2005 regarding DBE Program. Thanks. Clarice