Little has been written about the largest public infrastructure project in the St. Louis area. The Metropolitan Sewer District has recently agreed to a $4.7 billion consent decree with environmental regulators. The effect of this upgrade to our aging sewer system will be to improve the environmental conditions of our community. Clearly, little could be more important than clean water and the elimination of sewer system overflows.
That said, an unprecedented level of investment in our infrastructure creates a “Once in a Lifetime” opportunity for the creation of jobs. Jobs for the planning, design, and construction of the individual projects creating new opportunities for local professional firms and general contractors.
But, if the procurement of the work does not include a robust strategy for local involvement of these firms, a huge opportunity for local employment and local firm capacity growth will be missed. I would argue that if local residents and businesses are going to pay for these improvements through higher sewer bills that the investment in our infrastructure improvements should come back to this community to the greatest extent possible. Whether the firm is minority, women, or is a small business, MSD contracting policy should be holistic in its strategy to find ways to create new opportunities.
Too often, public agencies have missed the mark of creative sustainable procurement practices by merely setting arbitrary participation goals for M/WBE’s expecting that a punitive policy will have the affect of creating meaningful opportunities. These historic goals programs have not succeeded in providing meaningful opportunities for local firms and providing opportunities for growth and greater competition.
The MSD board recently opposed an increase in the historic goals program where MSD sought to raise Minority and Women firm percentages without other capacity growth strategies. More of the same of a failed policy will not benefit our community.
MSD recently announced that it intends to conduct a study to better understand our regions small business, minority, and women firms’ capacity. When complete, I hope that MSD develops programs such as mentor/protégée, development of a small business bonding program with bonding firms, and procurement policies that include prequalification of firms in support of a new small business program.
When other communities have faced these unprecedented infrastructure programs, they have developed new programs to make sure that local firms are not left behind.
Where these programs have been successful, greater capacity supports increased competition which results in lowered costs. I am concerned about the future cost of this $4.7 billion dollar program and the impact that it will have on our citizens and businesses. MSD must find ways to reduce its costs so that the burden for our sewer system does not drive residents and businesses out of our community.
Finally, MSD must roll up their sleeves, get innovative, and work with the community to find ways to fully involve local firms in the largest public infrastructure project in this region. No one is looking for or should receive handouts, but opportunities for competition and inclusion are a must. MSD must also find ways to reduce the cost of this program so we do not unduly burden the ratepayers.
MSD, let’s not miss this “Once in a Lifetime” opportunity.
