As recipients of Federal Aviation Administration (FAA) Airport Improvement Program (AIP) Grant funding, the Aviation and Transit Department is required to have a Disadvantaged Business Enterprise (DBE) Program.  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 interested in doing business with the Airport. This DBE Program is tailored towards the annual construction projects completed each year at the Airport that are being funded with an AIP Grant.  The Airport is required to submit an updated DBE Program every three years and the DBE Program must be approved by the Airport's governing body.  Consequently, the DBE Program must be approved by the City Council and signed by the Mayor. 

City Council may:

• Approve the Airport's updated DBE Program; or
• Decline to approve the updated DBE Program and jeopardize future AIP Grant funding.

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 annual FAA AIP Grants. The Airport's annual AIP Grants total approximately $3 million annually, but can be significantly larger for high priority projects that exceed the annual entitlement amount.

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