Seattle Press on Line - Minority center illegal?

Minority center illegal?

By Sara Longley

Aug 29, 2002 -- A CENTER created to stop the decline in the city’s participation of women and minority-owned contracting companies may have violated Initiative 200, the state law that prohibits preferential treatment based on race and gender in public contracting. This is according to the Pacific Legal Foundation (PLF), a Sacramento, California-based public interest law group that supports I-200.

PLF Atty. Russell Brooks said the foundation is currently investigating whether the Contracting Development and Competitiveness Center complies with I-200. It is expected to issue its findings this September and, based on these, may file a legal challenge against the center.

The Seattle City Council unanimously approved last August 12 to spend $200,000 for the creation of the center. Another $400,000 is expected to be allocated next year for the center’s operations.

The center will provide technical and educational assistance to women and minority-owned businesses. The assistance is intended to increase their participation in the city’s contracting projects, which suffered a sharp decline since the passage of I-200 in 1998.

Before I-200, some 9 percent of city contracts went to women-owned businesses while 18 percent went to minority-owned businesses. This declined by one-third after I-200’s passage. Contracts going to African American-owned businesses dropped to one percent.

“We are thinking now that what the City Council passed could be in violation of I-200,” Brooks said.

Councilmember Richard McIver shrugged off the center’s possible I-200 violation.

“I don’t care if it is in compliance,” McIver, the only African American member in the council, said. “Given the city’s participation by women and minority-owned contractors, which is now down under one percent, we need to do something to get a balance here. Right now, it seems like white folks are getting the preferential treatment.”

McIver said the new center will provide services to all economically-disadvantaged small businesses, not only those owned by women or minorities.

“Under I-200, you can do a lot of things,” he added. “We can train people, do outreach, advocate for them. We just can’t hire based on minority status.”

Under the legislation approved by the City Council, the Urban League of Metropolitan Seattle will operate the center in the city’s behalf. It will be joined by the Associated General Contractors of Washington, Associated Builders and Contractors of Western Washington, Community Capital Development and Turner Construction.

The center is part of Mayor Greg Nickels’ initiative to stop the
decline in the participation of women and minority-owned businesses in the city’s contracting projects. His initiative also includes the unbundling of contracts so small firms could compete for them and the enforcement of the requirement for primary contractors to reach out to minority-owned subcontractors.

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