“font-family: Verdana; font-size: 9pt;”>The Metropolitan Sewer District Board of Trustees approved the adoption of a $385,000 disparity study contract with the California-based Mason Tillman Associates at the Feb. 9 board meeting.
“font-size: 9.0pt; font-family: Verdana;”>Mason Tillman is a 100-percent minority-owned company, led by Dr. Eleanor Mason Ramsey. The three subcontractors proposed to assist in the study’s three-stage process are: ADE Consulting Service, Davis and Associates, and Project Controls Group Inc. All are local companies, and two are certified disadvantaged business enterprises.
“font-size: 9.0pt; font-family: Verdana;”>The disparity study comes after the board voted down a resolution to increase minority participation on construction and service contracts in December. Opposing trustees said the district must complete a disparity study before a policy can be passed.
“font-size: 9.0pt; font-family: Verdana;”>Many local governments and public agencies have started conducting disparity studies after the 1989 U.S. Supreme Court ruling in the case of City of Richmond v. J.A. Croson Co. The Supreme Court ruled that the City of Richmond’s minority participation program for municipal contracts was unconstitutional, after finding that the city failed to identify the need for remedial action.
“font-size: 9.0pt; font-family: Verdana;”>Like St. Louis, Richmond had a black population of just over 50 percent and had set a 30 percent goal in the awarding of city construction contracts, based on its findings of local discrimination and lack of access for minority-owned businesses.
“font-size: 9.0pt; font-family: Verdana;”>The ruling required that a fact-based approach determine whether or not qualified minority firms have been underutilized. The Croson decision led a number of local and state governments to abandon their MWBE programs, while others proceeded to conduct disparity studies that addressed the court’s requirements for proof of harm from discrimination.
“font-size: 9.0pt; font-family: Verdana;”>Disparity studies provide legal validity to inclusion programs. However, they can also provide evidence of racial discrimination and bring about lawsuits from the minority and women business communities.
“font-size: 9.0pt; font-family: Verdana;”>Mason Tillman conducted the 2010 disparity study for the Illinois Department of Transportation (IDOT), which found racial discrimination in the department’s contracting process.
“font-size: 9.0pt; font-family: Verdana;”>The study – contracted by IDOT in 2009 – found that disadvantaged business enterprises (DBEs) represent 25.55 percent of the available construction firms. However, they only received 8.25 percent of the construction prime contracts under $500,000 from 2006 to 2009, according to the study conducted by Mason Tillman.
“font-size: 9.0pt; font-family: Verdana;”>At the Jan. 26 board meeting, MSD Executive Director Jeff Theerman said the district should pass an interim policy while waiting for the disparity study’s completion.
“font-size: 9.0pt; font-family: Verdana;”>The voted-down resolution (3001) proposed in December would have set separate subcontracting goals for MBE (25 percent) and for WBE (5 percent) for all construction and professional service contracts of $50,000 or more. Professional service contracts $50,000 or above would have aimed at 25 percent MBE and 5 percent WBE goals.
“font-size: 9.0pt; font-family: Verdana;”>It would have also set a new minority workforce goal of 25 percent on construction contracts and 6.9 percent female workforce. All prime professional service providers would have had a local office workforce goal of 25 percent minority workforce and 5 percent female workforce.
“font-size: 9.0pt; font-family: Verdana;”>At the same board meeting where the resolution was shot down, Board Trustee David Visintainer proposed an interim policy, which will be the frame work for setting interim goals.
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“font-size: 9.0pt; font-family: Verdana;”>MSD inclusion numbers on the table
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“font-size: 9.0pt; font-family: Verdana;”>MSD’s current diversity program:
- 25 percent
MWBE goal (with at least 10 percent MBE and 5 percent WBE) for all
building construction projects more than $50,000
- 10 percent
MWBE on non-Building Construction subcontracting goals for projects
over $50,000, (with at least 5 percent MBE)
- 20 percent
MWBE for professional service contracts $50,000 or more
- 14.7
percent minority and 6.9 percent women workforce goals on building
construction project $1 million or more
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“font-size: 9.0pt; font-family: Verdana;”>Resolution 3001 that failed Dec. 8:
- 25 percent
MBE and 5 percent WBE goals for Construction contracts $50,000 or
above
- 25 percent
MBE and 5 percent WBE goals for Professional Service contracts
$50,000 or above
- 25 percent
minority and 6.9 percent female workforce participation goals on
Construction contracts
- 25 percent
minority and 5 percent female local office workforce goals on all
Prime Professional service providers
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“font-size: 9.0pt; font-family: Verdana;”>Visintainer’s proposed interim policy
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“font-family: Verdana; font-size: 9pt;”>Apprenticeship program on
all construction projects greater than $1 million
- 25 percent
MBE and 5 percent WBE Building Construction subcontracting goals
for projects over $50,000
- 10 percent
MWBE on non-Building Construction subcontracting goals for projects
over $50,000, (with at least 5 percent MBE)
- 30 percent
MWBE professional services subcontracting goals, (with at least 15
percent MBE and 5 percent WBE on each project)