HomeMy WebLinkAboutIR 10506 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10506
To the Mayor and Members of the City Council November 10, 2020
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s SUBJECT: BRIEFING ON THE RECOMMENDATION TO ADOPT 2020 DISPARITY
r STUDY AND BUSINESS EQUITY ORDINANCE AMENDMENT
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The purpose of this Informal Report is to provide a briefing on the recommendation to adopt the Disparity
Study conducted by CH Advisors and the subsequent Business Equity Ordinance Amendment November 17,
2020.
Colette Holt & Associates (CHA) was retained by the City of Fort Worth ("the City") to perform a study
regarding its Business Equity ("BE") program for Business Equity Firms including Minority- and Women-Owned
Business Enterprises ("M/WBE"s). The methodology for this study embodies the constitutional principles of
City of Richmond v. Croson, Fifth Circuit Court of Appeals case law and best practices for designing race- and
gender-conscious and small business contracting programs. The CHA approach has been specifically upheld
by the federal courts. It is also the approach developed by Ms. Holt for the National Academy of Sciences that
is now the recommended standard for designing legally defensible disparity studies.
The quantitative and qualitative data presented in the City's Study provide a thorough examination of the
evidence regarding the experiences of Business Equity firms operating in the City of Fort Worth's marketplace.
As required by strict scrutiny, the Study analyzed evidence of such firms' utilization by the City as measured by
dollars spent. The Study also examined business owners' experiences in obtaining City contracts and
associated subcontracts, and opportunities in the private sector. The Study gathered statistical and anecdotal
data to provide the evidence necessary to determine whether there is a strong basis in evidence that barriers
to full and equal contracting opportunities exist on the basis of race or gender in the City's marketplace that
circumscribe City contract opportunities, and if so, what narrowly tailored remedies are appropriate.
The Study results support the City's continuing compelling interest in implementing its race- and gender-
conscious Business Equity ("BE") program. The statistical data and the anecdotal testimony provide a sufficient
basis for the continued use of narrowly tailored remedial race- and gender-based measures to ensure full and
fair access by all firms to City prime contracting and associated subcontracting opportunities.
Based on the Study findings and recommendations approved by the City Manager, the City of Fort Worth will
submit an amended Ordinance November 17, 2020 that incorporates changes designed to build capacity and
expand fair access and opportunity to City funded contracting and procurement to Business Equity Firms. In
accordance with the Ordinance changes, a new Administrative Regulation for internal procedures has been
created. The amended Business Equity Ordinance and Administrative Regulation would take effect January 1,
2021.
The City of Fort Worth's Business Equity ("BE") Ordinance governs access to contracting and subcontracting
opportunities on the City's locally funded contracts. The previous Business Diversity Enterprise Ordinance was
adopted in 2011 to remedy the effects of past underutilization of minority and women business enterprises in
the Fort Worth marketplace. The City's 2011 BDE Ordinance was based on the City's 2009 Availability and
Disparity Study findings and recommendations. Previous similar studies found disparities in the City's
utilization of Business Equity Firms on contracts in the construction, goods and services and professional
services industries.
If you have any questions about this information, please contact Christina Brooks, Chief Equity Officer) Director
Diversity and Inclusion Department, at 817-392-8988.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS