As recipients of Federal Transit Administration (FTA) and Federal Aviation Administration (FAA) grant funding, the Aviation and Transit Department is required to have Disadvantaged Business Enterprise (DBE) Programs in place.  A DBE is a for-profit small business concern that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged.  The DBE Program's intent is to provide a level playing field for DBE companies wanting to do business with the MET Transit, the Airport, and other agencies receiving Federal funds from the U.S. Department of Transportation.  In addition to the requirement to submit an updated DBE Program every three years, on September 6, 2012, a notice in the Federal Register announced changes to the DBE Circular.  One of the new requirements of the Circular is that the DBE Programs must now be approved by the City Council and signed by the Mayor.  Copies of the DBE Programs are available for review in the City Clerk's office.

The City Council may:

• Approve the updated DBE Programs; or
• Not approve the updated DBE Programs and jeopardize any future FTA or FAA grant funding.

As recipients of Federal funding, MET Transit and the Airport are required to have DBE Programs in place.  Failure to submit updated Programs may jeopardize or delay award of the annual FTA operating and capital grants, and the FAA Airport Improvement Program (AIP) grants.  The FTA grants can range between $1.6 million and $2 million annually. The AIP grants are approximately $3 million annually, and up to $6 million or more on larger projects.

Staff recommends that City Council approve and the Mayor sign the updated DBE Program.