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April 2019 Disparity Community MeetingBusiness Community Meeting April 22, 2019 Metropolitan St. Louis Sewer District Update Disparity Study Meeting Agenda •Introduce the study team •Present overview of existing Diversity Programs •Describe update study research objectives •Describe Croson standard •Outline disparity study data requirements •Describe workforce study components •Present study timeline Mason Tillman Team Subconsultant Certification Marvin Woods, Principal Project Controls Group M/DBE Walle Amusa, President ADEXO USA M/DBE Prime Consultant Certification Eleanor Ramsey, President/ Project Manager Mason Tillman Associates M/WBE Overview of Current MWBE Program •Contract goals •Workforce goals •Community benefits agreement •First Source Hiring Program •Building Union Diversity Program •Partnership with St. Louis Internship Program •Diversity reporting system •Diversity program staff augmentation Overview of Contract Goals MWBE Goals Industry MWBE Subcontract Goals Building Construction 30% MBE (African American/Hispanic American) Non-Building Construction 17% MBE (African American) State Funded Construction 10% MBE 10% WBE Federal Funded Construction 10% MBE 5% WBE Engineering Professional Services None Purchases and Other Services None Overview of Workforce Goals Workforce Goals Industry Workforce Goals Building Construction 30% Minority 7% Women Non-Building Construction 30% Minority 7% Women State Funded Construction 14.7% Minority 6.9% Women Federal Funded Construction 14.7 % Minority 6.9% Women Engineering Professional Services 18% Minority 32% Women Purchases and Other Services 18% Minority 32% Women Croson Standard -Compelling interest •Evidence of systemic racial discrimination -Narrowly tailored •Remedy documented discrimination -Update periodically •Assess effectiveness of remedy •Richmond v. Croson State/Local •Adarand v. Pena Federal Croson Study Objectives •Define relevant market area •Determine if statistical disparity exists •Ascertain practices affecting any documented disparity •Assess effectiveness of race- and gender-neutral programs •Draft detailed program recommendations •Prepare a legally defensible study Narrowly Tailored Remedy •Disparity findings are race, gender, and industry-specific •Subcontract goals limited to ethnicity and gender groups in industries with disparity findings •Goals defined by availability of the ethnicity and gender groups with disparity in each industry Study Parameters Study Period: January 1, 2013 to December 31, 2017 Building Construction Non-Building Construction Engineering Professional Services Federally Funded Construction Purchases and Other Services Utilization •Contracts awarded during the study period -Prime contracts •MSD extracted data •Mason Tillman will normalize data, assign industry to each contract, and determine business owner race and gender -Subcontracts •MSD extracted data •Mason Tillman will conduct further research to reconstruct complete subcontract data -Market Area •Mason Tillman will determine geographic market area by MSD’s spending Availability •Count of willing and able market area businesses identified from government and non-government sources •Businesses identified from non-government sources surveyed for: -Willingness to contract with MSD •Race, gender, industry -Capacity to perform MSD contracts •Bidding history, revenue, number of employees, owner education, •Available businesses classified by race, gender, and industry Anecdotal •Qualitative evidence elicited from interviews with 30 business owners •Qualitative evidence compiled from e-survey with all available businesses •Qualitative evidence analyzed for patterns and practices of contracting in market area •Qualitative evidence used to inform the race- and gender-neutral recommendations Disparity •When the utilization of businesses owned by minorities or women is not at parity with their availability -Disparity ratio is actual dollars spent (utilization) divided by expected contract dollars (availability) -Expected contract dollars is the proportion of dollars expected to be spent with each group based on availability -A statistical disparity occurs where the disparity ratio is less than 0.8 𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝑈𝐴𝐴𝑈𝑈𝑈𝑈𝐴𝑈𝑈𝑈𝑈𝐴= <0.8 Workforce •Scope of work -Determine the number of individuals by race, gender, and EEO category available to work on MSD’s contracts -Determine workers employed on MSD’s contracts by race, gender, residency, and EEO category •Construction – count of hours worked •Trades •Apprentice •Professional services – count of individual workers -Calculate any disparity between available workers and actual employment -Provide recommendations to address any identified disparity Public Comment Please State: •Your name •Business name •Organizational affiliation -Limit responses to two (2) minutes •Return comment card to Mason Tillman staff Partner With Us •Complete the business survey •Agree to an anecdotal interview Email MSDStlouisDisparityStudy@mtaltd.com Mail Mason Tillman Associates, Ltd. 1999 Harrison Street Suite 1440 Oakland, CA 94612 Call (314) 754-9990 THANK YOU Merci! ¡Gracias! cảm ơn! 감사합니다! Cпасибо!