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Home My WebLink About143-06 RESOLUTIONRESOLUTION NO. 143-06 A RESOLUTION TO ACCEPT AND APPROVE THE UPDATED FAYETTEVILLE MUNICIPAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM PARTICIPATION GOALS FOR FY2007. 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 FY2007. PASSED and APPROVED this 5th day of September, 2006. APPROVED: • ATTEST: 4tX/TR,,, r(t r 0).°C, Y OF') - =U• 43 FAYETTEVILLE • 3 ..moo :s? < <%y .SRKANSPh J2: By:�M u ON�G�``�,` SONDRA SMITH, City Clerk • • Ray M. Boudreaux Submitted By City of Fayetteville Staff Review Form City Council Agenda Items Contracts 915/6(2 City Co cil Meeting Date /?&5 qhs/4 ..3 rye Aag/-nn ?Is a ryofew Aviation & Economic Development General Government, Division Action Required: Department ACTION REQUIRED: A Resolution to accept and approve the updated Fayetteville Municipal Airport Disadvantaged Business Enterprise (DBE) Program Participation Goal in 2007 for Airport Improvement Grant Project 3-05-0020- 0036-2007, Correct Runway 16 Safety Area Deficiency. $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 NA Program Category / Project Name NA Program / Project Category Name Airport Fund Name Departme Director City Attorney i Date Finance and Internal Service Director Mayor Comments: eVAie Date Date 147-00, 150-01, 81-03 Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: 97-04, 87-05 202-05 NA NA Received in Mayor's Office aye ARKANSAS Staff Staff Review Memorandum TO: THRU: FROM: DATE. SUBJECT: Fayetteville City Council Ray M. Boudreaux, Direc Staff Review Committee James L. Nicholson, Financial Coo inator / DBE Liaiso August 18, 2007 Disadvantaged Business Enterprise (DBE) Program Godate for FY2007 Recommendation: Review & Approval of a Resolution to accept the Fayetteville Municipal Airport Disadvantaged Business Enterprise (DBE) Program Goal Update for FY2007. 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 $3,800,000, (Correct Runway 16 Safety Area Deficiency), from the DOT/FAA in FY 2007. 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, and its acceptance acknowledged by the sponsoring city's executive body. 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 approving the updated annual percentage goal established by Fayetteville City Council Resolution No. 202-05 and previous annual updates for DOT/FAA grant assisted contracts entered into by the City of Fayetteville Municipal Airport. The Airport Board has reviewed the update goal and recommended at their meeting of August 10, that the document be forwarded to the City Council for approval. The new resolution will accept and approve the airport's updated DBE participation goal for FY 2007. Budget Considerations: No budget effect. rn Attachment: FY 2007 Goal Update & Methodology Resolution 202-05 RESOLUTION NO. A RESOLUTION TO ACCEPT AND APPROVE THE UPDATED FAYEI1'EVILLE MUNICIPAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM PARTICIPATION GOALS FOR FY2007. 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 MuniciljteA.irprrt Disadvantaged Business Enterprise (DBE) Program participatie tglsj for FY2007. PASSED and APPROVED this 5th day of Septemb AT FST AN GOODY, Mayor By: SOITDRA SMITH/City t1erk RESOLUTION NO. 202-05 A RESOLUTION TO ACCEPT AND APPROVE HE UPDATED FAYETTEVILLE MUNICIPAL AIRPORT\ DISADVANTAGED BUSINESS BUSINESS ENTERPRISE (DB 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 - By �S•E,\SY•o,4sG S O • ONS "s :FAYETiEVILLE• /41 eVeh/�ANSP�J=', SONDRA SMITH, City Clerk APPROVED: By: Airport Sponsor: Name of Preparer: Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2007 Update City of Fayetteville James Nicholson, Financial Coordinator Fayetteville Municipal Airport/Drake Field 4500 S School Ave., Suite F, Fayetteville, AR 72701 Goal Period: 10/01/06 thru 9/30/07 — AIP Grant No. 3-05-0020-0036-2007 Overall DBE Goal: 2.1% Introduction to 2007 DBE Goal update: The City of Fayetteville / Fayetteville Municipal Airport DBE Goal update for Fiscal Year (FY) 2007 and extending through the completion of the Airport Improvement Project (AIP) noted above, 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 AIP grant funding for airports which anticipate receiving more than $250,000 in federal funding from the DOT / FAA in the 2007 fiscal year. The 2007 DBE Goal Update revises the DBE participation goal in federally funded airport contracts anticipated for the 2007 fiscal year, from that originally described in the airport s previously published DBE Program Plan and successive annual goal updates. The FY 2007 Goal Update is effective concurrent with the solicitation of bids through completion of the grant funded project. 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. A number of interested private and public entities were selected to review and comment on the Goal Update, (see attachment #1 - list of consulting agencies). Public comments on the updated goal and methodology are incorporated with the submission to the FAA. Public comments on the proposed FY 2007 Goal will be received until 9/15/06, (see attachment #2 — comments) Comments on the FY 2007 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 u@ci.fayetteville.ar.us Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2007 Update OVERALL GOALS (§26.45) Goal Period 10/1/06 — 9/30/07 Amount of Goal Fayetteville Municipal Airport's overall goal for Grants: AIP 36 is: 2.1 % Fayetteville Municipal Airport anticipates one AIP (federally funded) project in FY 2007. The estimated project costs are $4,000,000 "Correct Runway 16 RSA Deficiency". Thus, the total projected dollar amount of DBE participation in the projects is: $84,000. 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, or is most likely to provide, the firms considered qualified to perform the needed work. Correct Runway 16 RSA Deficiency: We used information from the State of Arkansas Contractors Licensing Board to determine the number of qualified Contractors available for the project. 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, the project being considered involves re-routing a portion of the State-owned roadway which bounds the west property line of the airfield and intrudes the Runway Safety Area. Thus, State-wide roadway construction companies will be solicited. Considerations in selecting Market Area Correct Runway 16 RSA Deficiency: 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. Since the anticipated project consists of re-routing a portion of State Highway 71, contractors for the project may be recruited from the state-wide pool of Heavy Construction / Highway, Street & Bridge constructors. Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2007 Update Our Washington County, Arkansas location, situated in a central valley of the Boston Mountains, contributes to an insulated climate for material suppliers. 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 June 14, 2006. • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2007 Update Methodology - Step 1 The Fayetteville Municipal Airport / Drake field anticipates awarding one AIP funded project contracts in FY 2007. The project is: 1. Correct Runway 16 RSA Deficiency, which entails redirecting a portion of State Highway 71 west of the north -end of Runway 16. Project No. 1: Correct Runway 16 RSA Deficiency 2002 NAICS Code Work Item DBE's in Local Market Area All Available Firms 237310 Highway, Street & Bndge Construction 11 210 238110 Asphalt 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 17 501 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 = 17 / 501 = 0.034 Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2007 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 2007 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) 2006 1.31 .63 Aircraft Apron (In Progress) Median % 1.09 .80 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 (3.39+0.80)/2= 2.1 • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2007 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 listing from the U.S. Federal Reserve 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 55% since the US Census in 2000. This is indicative of the continuing influx of Hispanic emigrants to the area. According to statistics from the US Census, American FactFinder 2002 Survey of Business Owners, there are 141 Hispanic -owned construction firms in the Fayetteville -Springdale -Rogers MSA No statistical subgroup of Heavy Construction / Highway, Street, & Bridge Construction is available. According to the data, the number of Hispanic -owned firms with 10 or more employees is not statistically significant. Since most of the firms have less than 10 employees, it may be inferred that the majority of these Hispanic contractors are engaged in categories of construction work other than Heavy Construction / Highway, Street, & Bridge Construction, such as residential housing or specialties associated with the light construction trades. Additionally, no new local construction contractors have been added to the Arkansas State Highway and Transportation Department DBE Listing. Many of these new contractors may find no advantage in the DBE classification since the rapid growth of the area assures plentiful work for these small firms. 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 2007 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 2007 adjusted goal of 2.1%, we will obtain 0% from race -neutral participation and 2.1% from race -conscious measures (e.g. setting contract goals). f Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2007 Update Attachment #1 - List of Consulting Agencies DBE OFFICER ARKANSAS DEVELOPMENT FINANCE AUTHORITY P.O. BOX 8023 LITTLE ROCK AR 72203 (501) 682-5904 geagle@adfa.state.ar.us www.state.ar.us/adfa ARKANSAS STATE HIGHWAY & TRANSPORTATION DEPARTMENT MR JAMES MOORE, DBE COODINATOR PO BOX 2261 LITTLE ROCK AR 72203-2261 James.moore@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 silverstrom@sba.gov patricia walker@sba.gov www.sba.gov/ar/ • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2007 Update 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 PO BOX 4216 FAYETTEVILLE AR 72702-4216 FCC@arkansasUSA.com 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: HELPeMBDA.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 Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2007 Update 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 hwoa@jcfjonesnet.org ARKANSAS WOMEN'S BUSINESS DEVELOPMENT CENTER SOUTHERN FINANCIAL PARTNERS 605 MAIN STREET SUITE 203 ARKADELPHIA AR 71923 infona,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 info@armsdc.org DI V ERSITYBUSINES S.COM 200 PEQUOT AVENUE SOUTHPORT, CT 06890 http://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 http://www.fedaccess.com/ Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2007 Update MINORITY BUSINESS ENTREPENEUR 3528 TORRANCE BLVD. SUITE 101 TORRANCE CA 90503 310-540-9398 310-792-8263 http://www.mbemag.com/ kbamett(a mbemag.com NORTHWEST ARKANSAS LULAC COUNCIL 754 PO BOX 218 ROGERS AR 727157 TELEPHONE: 479-544-2769 contact@nwalulac754.org SOUTHERN FINANCIAL PARTNERS DBE OFFICER 605 MAIN ST SUITE 203 ARKADELPHIA AR 71923 info®southemfinancialpartners.org www.southemfinancialpartners:org ARKANSAS CAPITAL CORPORATON DBE OFFICER 700 RESEARCH CENTER BLVD SUITE 1608 FAYETTEVILLE AR 72701 (800) 705-9295 (479) 444-8881 Fax: (479) 444-8882 Clarice Pearman - Res. 143-06 Page 1 From: Clarice Pearman To: Boudreaux, Ray Date: 9.12.06 5:23PM Subject: Res. 143-06 Ray, Attached is a copy of the above resolution regarding the DBE goals for FY2007. If anything else is needed please let me know. Thanks. Clarice CC: Audit