Special Budget & Government Efficiency Committee: 2020 Disparity Study – April 28, 2021
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Special Budget and Government Efficiency Committee Meeting – April 28, 2021
This informational meeting of the San Diego City Council's Budget and Government Efficiency Committee focused on the presentation and discussion of the 2020 City of San Diego Disparity Study, the first such study in over 25 years. The study examined whether gaps exist in the city's contracting with minority- and women-owned businesses and provided recommendations for remedying disparities. The meeting was held virtually due to the COVID-19 public health emergency.
Consent Calendar
- Unanimously approved the committee actions of April 7, 2021 (motion by Vice Chair Whitburn, seconded by Chair Kate, all members voted yes).
Public Comments & Testimony
- Christine Castodio Suero (Christine Swarrow), Chair of the Citizens Equal Opportunity Commission (CEOC), expressed the CEOC's support for the disparity study and urged the committee to include the CEOC, Economic Development, Small Business Advisory, and the new Office of Race and Equity in policy discussions. She also recommended the city commission disparity studies on a more frequent basis, citing the City of Philadelphia's annual study.
- David Alvarez, speaking on behalf of the Latino Equity Council (a volunteer organization), thanked the committee and stated that the disparity study clearly shows substantial disparities and inferences of discrimination. He urged the city to implement a race- and gender-conscious program, expand the mandatory goal approach used in Engineering and Capital Projects to other contracting segments, and create an ad hoc committee to bring forward recommendations, noting budgetary implications.
- Michelle Krug echoed Alvarez's points, emphasizing that Proposition 209 has tied the hands of public agencies and that the disparity study is a necessary step to address institutional barriers.
- Wanda Rogers, owner/operator of CNC Mentor Protégé Program and associated businesses, thanked the committee and directed attention to sections two and three of the study regarding disparities affecting African American women-owned businesses. She urged the city council and mayor to take action to change the contracting landscape.
Discussion Items
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Presentation of the 2020 Disparity Study – Kevin Williams of BBC Research and Consulting presented the methodology and findings. Key statistics:
- Study period: July 2014 – June 2019.
- Total city contracting: approximately $2.2 billion.
- $415 million (19%) went to minority- and women-owned businesses.
- Overall disparity index: 62 (below the 80 threshold indicating substantial disparity).
- For Engineering and Capital Projects (with mandatory SLBE goals), disparity index was 87.8; for Purchasing and Contracting (voluntary goals), disparity indices were 29.8 for professional services and 35.3 for goods and services.
- Availability estimate: 31% of dollars expected to go to minority- and women-owned firms based on firms ready, willing, and able.
- Qualitative research included 40 in-depth interviews, five focus groups, and five public meetings; community engagement identified barriers such as contract size, bonding/insurance requirements, and the impact of Proposition 209.
- Recommendations included: implementing mandatory goal programs on Purchasing and Contracting contracts, expanding set-asides to professional services and goods, unbundling large contracts, enhancing bonding assistance, improving prompt payment, and increasing staffing for EOC and procurement.
- The report is preliminary; a final report will be brought to council after further review.
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Committee Questions and Comments:
- Vice Chair Whitburn noted the city's good data collection and asked about comparisons to other agencies. Mr. Williams highlighted that San Diego's data is among the best he has seen. Ms. Abarca stated it is too early to tell if post-2019 changes have affected the numbers, but annual reports show relative stability. She indicated that the recommendations are a starting point and implementation may require additional staffing.
- Councilmember Montgomery Steph expressed appreciation for the study but raised concerns about the availability determination for Black American-owned businesses in construction and professional services. She questioned the reliance on Dun & Bradstreet data without using the California State Contractors License Board (CSLB) database, and noted that her office received calls from Black contractors who were not contacted. She requested that the consultant re-review the availability for those groups. She also called for a race- and gender-conscious program, implementation of all Chapter Nine recommendations, and increased staffing for EOC and procurement. Ms. Abarca acknowledged vacancies and said a staffing plan would accompany future program recommendations.
- Councilmember Campillo highlighted the concentration of dollars (e.g., 14 Hispanic American-owned businesses accounted for 75% of dollars to that group, with one firm receiving 25%). He asked about the SLBE certification process (free, web-based, 5–10 business days) and the 5% bid preference. He noted that no local agency in California has successfully defended a race- and gender-conscious program under Proposition 209 except as required by federal law (e.g., Caltrans DBE program). He suggested exploring a race- and gender-neutral program targeting young businesses (under 5–7 years old) and asked for data on business age.
- Chair Kate asked about survey response rates: of roughly 1,500 firms with working phone numbers, 638 were contacted successfully, and 395 establishments were included in the final availability database. She also noted that unbundling large contracts, as discussed for the Pure Water program, involves balancing equity with project efficiency and deadlines.
Key Outcomes
- This was an informational item; no votes were taken.
- Councilmember Montgomery Steph requested that the consultant re-examine the availability determination for Black American-owned businesses in construction and professional services, using additional data sources such as the CSLB.
- Staff will continue to work with council offices to review the preliminary report and develop a final report with recommendations for implementation.
- The committee will hold future discussions on the disparity study, with a final report and policy proposals expected to return to the committee and full council within a few months.
- The next regular committee meeting is scheduled for Wednesday, May 26, 2021, at 9 a.m.
Meeting Transcript
Good to go, Alan and Mary Ann. Cool. Good morning. Per executive order 29-20, which suspends certain requirements of the Brown Act. The committee members will be participating via Zoom and no members of the public will be in attendance at the meeting in the interest of public health and safety. In addition, this meeting is being televised and live streamed on the city's website, and the committee liaison has made arrangements for the public to comment using the Zoom webinar platform. We appreciate the public's cooperation. I will go over the specifics of how to join the webinar and will give and give details on how the public can offer their public testimony. I will now call the special budget and government efficiency committee meeting of April 28th, 21 to order. And I will now call the roll. Councilmember Montgomery Steph. And Councilmember Campillo. Here. And I am also here. Each committee member is attending virtually. Also on the virtual meeting is our IBA, Andrew Chevlin and Angela Colton. And Matthew Vespey, our chief financial officer, Brittany Bailey from the mayor's office, and Brett Bartelata from the City Attorney's Office. The public may view the meetings on public television on City TV channel 24 for Cox Communication and Time Warner Cable or Channel 99 for ATT, or view the meeting online by going to the City Council Committee's homepage at San Diego.gov and selecting the City TV Live Webcast blue button on the right hand side of the page. The committee meetings will be held virtually using the Zoom webinar platform. Members of the public can offer public comment on items by accessing the Zoom webinar online using a desktop computer, laptop, tablet, or smartphone, or by calling into the meeting using a smartphone, sell your phone or landline. The link to join the community meeting webinar by computer, tablet, or smartphone is listed on the agenda on how to join by iPhone one tap. To join the Zoom webinar by telephone, you may dial 1669-254-5252. When prompted, input webinar ID 161-771-9874 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each item. Introduce the item you would like to comment on, you will raise your hand by either tapping the raise your hand button on your computer, tablet, or smartphone, or by pressing star nine on your phone. You'll be taken in the order in which you raise your hand. You may only speak once on a particular item. When our committee consultant Alan Young indicates it is your turn to speak, he will call you by your name as it appears on the Zoom webinar attendee list, or he will read out the last four digits of your phone number if you have called into the meeting. That is how you will know it is your turn to speak. If you have joined the webinar by computer, tablet, or smartphone, you will receive a pop-up notice to select the select to unmute your device. If you've called into the meeting by cell phone or landline, press star six on your phone to unmute yourself. We will review these instructions briefly again when the public comment period on an item is open. Please wait until the item you wish to speak to has been called before raising your hand to speak. If you raise your hand during a non-comment period, your hand will be lowered. When you're announced as the next speaker, please unmute yourself and offer your comments. Also, please meet the volume on your TV or computer before begin before you begin to speak. A quorum is now present. We will now dispense with the approval of the committee actions of April 7th, 2021. Do I have a motion to approve the committee actions? So moved. And I will second the motion by Councilmember Whitburn, which I have seconded. We'll go down and uh ask each council member to register their vote, starting with Vice Chair Whitburn. Yes. Councilmember Montgomery Steph. Yes. And Councilmember Campio. Yes. And I am also a yes. Also a yes, so thank you very much. That motion passes unanimously.
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