DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Contract Award--New Disparity Causation Analysis Study
SUMMARY:
This Ordinance approves an agreement with National Economic Research Associates, Inc. in an amount not to exceed $750,000 for a one year period, anticipated to begin in May 2014 and end in April 2015, to undertake a Disparity Causation Analysis Study (Disparity Study) for the City of San Antonio. Upon completion, the Disparity Study's findings and recommendations will be presented to the Small Business Advocacy Committee (SBAC), Economic and Community Development Committee (ECDC) and City Council. Following a review and public comment period, City Council will consider any proposed modifications to the Small Business Economic Development Advocacy (SBEDA) Program.
BACKGROUND INFORMATION:
City Council adopted the most recent Disparity Study in March 2010 and in June 2010 adopted the current SBEDA Ordinance, which incorporated numerous consultant recommendations. In accordance with the SBEDA Ordinance, the City must conduct an update to the Disparity Study that will serve as the evidence upon which an updated SBEDA Program may be developed and maintained. Common industry practice is to conduct a Disparity Study every three to five years to determine if disparity still exists in contracting with minority, and women-owned business enterprises (M/WBEs).
The necessity of a Disparity Study emanates from the U.S. Supreme Court case Richmond v. J.A. Croson Co. (1989), which mandates that state and local government programs using race as a consideration in government programs must pass "strict scrutiny" by the courts. This strict scrutiny standard requires that public entities show a compelling governmental interest in establishing race-specific programs, thus requiring that a firm evidentiary basis be established to conclude that the under-representation of m...
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