Consent 1.B.
Regular City Council Meeting
- Meeting Date:
- 11/25/2019
- TITLE
- Approval of the Airport Concession Disadvantaged Business Enterprise (ACDBE) Program Update
- PRESENTED BY:
- Shane Ketterling
- Department:
- Airport
Presentation:
No
PROBLEM/ISSUE STATEMENT
As a recipient of Federal Aviation Administration (FAA) grant funding, the Aviation Department is required to have an Airport Concession Disadvantaged Business Enterprise (ACDBE) Program in place. An ACDBE is a for-profit small business concern that is at least 51 percent owned by one or more individuals who are classified by the Federal government as socially and economically disadvantaged. The ACDBE Program's intent is to provide a level playing field for ACDBE companies wanting to do business as a concession operator at the Airport. To become a certified ACDBE, the company must work with the State of Montana. The Aviation Department is required to submit an updated ACDBE Program every three years and it must be approved by the City Council and signed by the Mayor. The main objective of the Program is to establish goals for the various concessions to use or do business with certified ACDBE companies. A copy of the ACDBE Program is available for review in the City Clerk's office.
ALTERNATIVES ANALYZED
City Council may:
- Approve the ACDBE Program; or
- Not approve the ACDBE Program and jeopardize any future FAA grant funding.
FINANCIAL IMPACT
As recipients of Federal funding, the Airport is required to have an ACDBE in place. Failure to submit this Program may jeopardize or delay award of the annual FAA Airport Improvement Program (AIP) grants. The AIP grants are typically $3,000,000 annually, and up to $6,000,000 or more on larger projects that qualify for the additional funding.
RECOMMENDATION
Staff recommends that the City Council approve and the Mayor sign the Billings Logan International Airport's ACDBE Program.