Staff recommends that the City Council approve and the Mayor sign the Airport's updated Disadvantaged Business Enterprise (DBE) Program.

As recipients of Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grant funding, the Airport is required to have a DBE Program.  A DBE is a for-profit small business that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged.  The intent of a DBE Program is to provide a level playing field for DBE companies interested in doing business with the Airport.   This DBE Program is tailored toward the many construction projects completed each year at the Airport that are being funded with an AIP grant.  The Airport is required to periodically update the DBE Program as needed; subsequently, the revised DBE Program must now be approved by the City Council and signed by the Mayor. 

City Council may:

• Approve the Airport's updated DBE Program; or
• Not approve the updated DBE Program and jeopardize future AIP grant funding.

While there are no initial financial impacts pertaining to the DBE Program, as a recipient of Federal AIP grant funding, the Airport is required to have a DBE Program in place.  Failure to submit an updated Program may jeopardize or delay award of the Airport's annual FAA AIP grants.  The Airport's AIP entitlement grant totals approximately $3 million annually, but can be significantly larger for high priority projects that exceed the annual entitlement amount.