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Home My WebLink About154-07 RESOLUTION• • RESOLUTION NO. 154-07 • rc A RESOLUTION TO ACCEPT AND APPROVE THE UPDATED FAYETTEVILLEMUNICIPAL AIRPORT DISADVANTAGED BUSINESS' ENTERPRISE (DBE) PROGRAM PARTICIPATION GOAL FOR FY2008. - 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 goal for FY2008. ii 1111111111, c\to,, TR 7 ... .•°01Y o, .. -o�: e FAYETTEVILLE' :ter •.� •9h KANS:S r. 9/►1111 lds°y`NG TON.C...` PASSED and APPROVED this 4th day of September, 2007. APPROVED: By: D ` COODY, Mayor ATTEST: By: SONDRA E. SMITH, City Clerk/Treasurer Ray M. Boudreaux Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 9/4/2007 City Council Meeting Date 1111161 159 D36 ic,105gams 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 2008 for Airport Improvement Grant Project 3-05-0020- 0036-2008. Cost of this request Account Number Budget Program Category / Project Name Funds Used to Date Program / Project Category Name Airport Project Number Remaining Balance Budgeted Item Budget Adjustment Attached 01! . l % /Date Department Director Fund Name _9 * & $zt/d7 City Attorney LQJ Finance and Internal Service Director Mayor Date 3-2167 Date 146 Date 147-00, 150-01, 81-03 Previous Ordinance or Resolution # 97-04, 87-05 202-D5 143-06 Original Contract Date: Original Contract Number: Received in City CI 's Office EN FRED Sl Comments: • aeevle ARKANSAS Staff Review Memorandum TO: Fayetteville City Council THRU: Ray M. Boudreaux, Direct Fayetteville Municipal Airport Advisory'=oard Staff Review Committee FROM: James L. Nicholson, Financial Coordinator DBE Liaison DATE: August 8, 2008 SUBJECT: Disadvantaged Business Enterprise (DBE) Program Goal Update for FY2008 Recommendation: Review & Approval of a Resolution to accept the Fayetteville Municipal Airport Disadvantaged Business Enterprise (DBE) Program Goal Update for FY2008. 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 $1,000,000, "Correct Runway 16 Safety Area Deficiency Phase I" from the DOT/FAA in FY 2008. 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. 143-06 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 8, 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 2008. Budget Considerations: No budget effect. /In Attachment: FY 2008 Goal Update & Methodology Resolution 143-06 Aviation and Economic Development Department Fayetteville Municipal Airport, Drake Field 4500 South School Avenue, Suite F Fayetteville, Arkansas 72701 Ray M. Boudreaux, Director 4 RESOLUTION NO. A RESOLUTION TO ACCEPT AND APPROVE THE UPDATED FAYETTEVILLE MUNICIPAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM PARTICIPATION GOAL FOR FY2008. 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 goal for FY2008. PASSED and APPROVED this 4th day of September, 2007. APPROVED: ATTEST: • By: By: • • DAN COODY,.Mayor SONDRA E SMITH, City Clerk/Treasurer • RESOLUTION NO. 143-06 A RESOLUTION TO ACCEYI 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 Busmess Enterprise (DBE) Program participation goals for FY2007. PASSED and APPROVED this 5th day of September, 2006. APPROVED: By: ATTEST: a, e �VZ Y Op •!',p . V• :FAYETTEVILLE: y ,q S 5 s . fiAN P.JZ' By: PA 44,j bate C(AIGTON....`�� DAN COOD , Mayor j SONDRA SMITH, City Clerk • • Airport Sponsor: Name of Preparer: Goal Period: Overall DBE Goal: Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2008 Update City of Fayetteville James Nicholson, Financial Coordinator Fayetteville Municipal Airport/Drake Field 4500 S School Ave., Suite F, Fayetteville, AR 72701 10/01/07 thru 9/30/08 — AIP Grant No. 3-05-0020-0036-2008 0.75% Introduction to 2008 DBE Goal update: The City of Fayetteville / Fayetteville Municipal Airport DBE Goal update for Fiscal Year (FY) 2008 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 2008 fiscal year. The 2008 DBE Goal Update revises the DBE participation goal in federally funded airport contracts anticipated for the 2008 fiscal year, from that originally described in the airport's previously published DBE Program Plan and successive annual goal updates. The FY 2008 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 cornments on the updated goal and methodology are incorporated with the submission to the FAA. Public comments on the proposed FY 2008 Goal will be received until 8/31/07, (see attachment 112 comments) Comments on the FY 2008 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: Jaynes 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 micholson@cilayetteville.ar.us Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2008 Update OVERALL GOALS (§26.45) Goal Period 10/1/07 — 9/30/08 Amount of Goal Fayetteville Municipal Airport's overall goal for FY2008 is: 0.75% Fayetteville Municipal Airport anticipates one AIP (federally funded) project in FY 2008. The estimated project costs are 51,000,000 "Correct Runway 16 RSA Deficiency Phase I". Thus, the total projected dollar amount of DBE participation in the projects is: $7,500. 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 RW 16 RSA Deficiency Phase I, Engineering, Land Acquisition, Environmental: The Airport has selected, and has contracted with a consulting Engineering firm which will be used to perform the first phase of the above noted project. The Engineering consultant was selected in accordance with the requirements of 49CFR Part18.36, Procurement, and as permitted under paragraphs (d)(3)(v), by competitive proposals (AR professional services). The Contract with the engineering firm includes a specific Disadvantaged Business Enterprise DBE Assurances clause stating the firm's responsibility to offer DBE's the "maximum opportunity to participate in the performance of contracts financed in whole or in part with Federal funds under this agreement." Considerations in selecting Market Area Correct RW 16 RSA Deficiency Phase I, Engineering, Land Acquisition, Environmental. The project phase consists of preliminary design, engineering, geologic investigation, environmental assessment, survey and appraisal, and property acquisition. Excepting the necessary field work, many of the tasks to be accomplished need not be performed on site. It is desirable, but not essential, to enlist skilled personnel who are experienced and knowledgeable of local conditions. However, professionals certified by the State of Arkansas are presumed to have the qualities necessary to perform the work adequately. Therefore, the selected Market Area for this project phase is determined to be the entire State of Arkansas. • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2008 Update The consulting Engineer under contract to the airport lists at least one DBE (WBE) as an.. associate team partner for airport work. Additionally, a list of the DBE contractors in the State of Arkansas presumed to meet qualifications for subcontracted work under the consulting Engineer's contract will be compiled and issued to the Engineering firm. The consulting Engineer will be directed to inquire with the DBE firms as to their fitness and availability for any subcontracted work required by the consulting Engineering firm. 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 April 25, 2007. • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2008 Update Methodology - Step 1 The Fayetteville Municipal Airport / Drake field anticipates awarding one AIP funded project contract in FY 2008. The project is: 1. Correct Runway 16 RSA Deficiency Phase I, which entails design and engineering, land acquisition, and environmental review preliminary to an offering to bidders for the construction phase of the project. Project No. 1: Correct RW 16 RSA Deficiency Phase I, Engineering, Land Acquisition, Environmental 2002 NAICS Code Work Item DBE's in Local Market Area All Available Firms* 53121 Real Estate Agents & Brokers 1 548 53132 Appraisal offices 1 142 54133 Engineering services 1 275 54136 Geophysical surveying and mapping 1 6 54138 Testing laboratories 0 40 54162 Environmental Consulting services 3 42 Totals for this Contract 7 1053 * US Census — 2002 Economic Census data Weighting Approximately 70% of the project expense is allocated to land acquisition, and 30% to Design & Engineering and Environmental Assessment. Therefore, the tasks associated with each category are calculated separately and summed. 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 = (2/690) + (5/363) = 0.001 + .014 = .015 • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2008 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 2008 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. In this case, for the purpose of fair analysis, only the design / engineering portion of the projects noted are compared. DBE Goal Accomplishments for construction contracts are not used. 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 like projects. Base Figure + Historical Avg. / 2 = Adjusted Figure (1.5+0.00)/2=0.75 Year Goal % Accomplishment % Project Type 2000 1.74 0 Access Road Construction 2001 .93 0 Taxiway / Runway Rehabilitation 2003 .73 0 Taxiway Construction 2004 1.18 0 Taxiway Construction 2005 1.0 0 Aircraft Apron 2006 1.31 0 Aircraft Apron Median % 1.09 0 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 (1.5+0.00)/2=0.75 Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2008 Update Other Factors Disparity Research was conducted to determine if any DBE / small business disparity studies for the region were available. While no document specifically described as a disparity study could be located for the region or state, the U.S. Department of Commerce / Minority Business Development Agency has published a two-page document titled "The State of Minority Business in the State of Arkansas", which offers some comparative analysis of minority percent of population vs. share of business ownership and percent of sales. In broad terms, the brief suggests that minority business ownership in the state remains significantly less than proportional with population. There is no specific breakout of businesses engaged in professional consulting services, design or engineering. However, it may be inferred from the overall data that a similar discrepancy likely exists in that business sector. Interestingly, Hispanic and American Indian & Alaska Native categories participate in business ownership as a percentage of population of the category at a level greater than the national rate. Taken with the dramatic increase in Hispanic population in the state over the last decade, this greater business ownership rate may be indicative of the perceived opportunities Arkansas offers to Hispanic minority emigrants, and of the permanence of their settlement. Financial 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. Census Information 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 the 2002 US Census Survey of Business Owners, there are only 143 Hispanic professional, scientific, & technical services firms in Arkansas. Again, no breakout of firms engaged in Engineering or Real Estate is provided by the data. The greatest percentages of all Hispanic -owned firms appear to be concentrated in the service industries. However, it may be conjectured that the Hispanic -owned service industry business base could be parlayed into better opportunities for higher education in succeeding generations and thus establish the foundation for future growth in the professional sector. None of the factors described above were determined to warrant an adjustment to the calculated Goal percentage. The information does provide insight into the conditions of the local and regional business environment for DBE's. If any conclusion can be drawn, it is that added validation is given to the choice of Race -Conscious measures in order to promote DBE participation in our AIP projects. No other factors regarding the local DBE environment could be determined to be an influence on the adjusted DBE goal figure. Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2008. Update Breakout of Estimated Race -Neutral and Race -Conscious Participation In determining what percentage of the 2008 adjusted goal could be met through race -neutral means, we again reviewed historical DBE accomplishments for Fayetteville / Drake Field. FYV did not have any DBE participants in Professional Services contracts on any AIP projects for the last six years. Therefore, we estimate that in meeting our overall 2008 adjusted goal of 0.75%, we will obtain 0% from race -neutral participation and 0.75% from race -conscious measures (e.g. setting contract goals). • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2008 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 ins.moore@abtd.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 2008 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 P.O 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 MR. JOHN F. IGLEHART DALLAS REGIONAL DIRECTOR DALLAS NATIONAL ENTERPRISE CENTER 1100 COMMERCE STREET ROOM 726 DALLAS, TX 75242 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 2008 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@tcf.jonesnet.org ARKANSAS WOMEN'S BUSINESS DEVELOPMENT CENTER SOUTHERN FINANCIAL PARTNERS 605 MAIN STREET SUITE 203 ARKADELPHIA AR 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 info@armsdc.org DIV ERSITYBUSINES S.COM 200 PEQUOT AVENUE SOUTHPORT, CT 06890 http://www.div2000.com/ Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2008 Update 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/ kbamett@mbemag.com NORTHWEST ARKANSAS LULAC COUNCIL 754 POBOX 218 ROGERS AR 727157 TELEPHONE: 479-544-2769 contact@enwalulac754.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 NORTHWEST ARKANSAS HISPANIC COUNCIL PO BOX 833 SPRINGDALE •AR 72765-0833 • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2008 Update Attachment #2 — Comments Three comments were received as of 8/8/07 Dwight Stroud of Dwight Stroud & Associates LLC requested information about enrolling in the City's DBE program. Mr. Stroud was referred to the Arkansas Unified DBE Certification program and The City of Fayetteville's website for bid solicitations, RFPs, and RFQs. Mary Parham of J. Kelly Referrals & Information Services requested information about the City's DBE program. Ms. Parham was referred to the Arkansas Unified DBE Certification program and The City of Fayetteville's website for bid solicitations, RFPs, and RFQs. Jerry Johnson of Unisexx Consultants & Communications, LLC requested information about the City's DBE program. Mr. Johnson was referred to the Arkansas Unified DBE Certification program and The City of Fayetteville's website for bid solicitations, RFPs, and RFQs. Any additional comments will be received until 8/31/2007 and submitted to the FAA. L(9.6.07) Clarice Pearman - Res. 154-07 From: To: Date: Subject: Attachments: Page 1 Clarice Pearman Boudreaux, Ray 9.6.07 4:59 PM Res. 154-07 154-07 DBE Program FY2008.pdf CC: • Audit • Ray: Attached is a copy of the above resolution passed by City Council, September 4, 2007. Please let me know if there is anything else needed for this item. Have a good day. Thanks. Clarice Clarice Buffalohead-Pearman, C.A.M.C., C.M.C. City Clerk/Treasurer Division 113 West Mountain Fayetteville, AR 72701 479-575-8309 cpearmanc ci.favetteville.ar.us