ST PETERSBURG – At noon today, the City of St. Petersburg released the results of a long-awaited Disparity Study to confirm whether a statistical disparity exists between the availability of minority-owned and women-owned businesses, on the one hand, and the rate at which the City of St. Petersburg purchases from those businesses, on the other.
The study confirms what many African American business owners and activists have said for years:
“After nearly 31 years in operation, the SBE Program has been ineffective in achieving equitable participation for M/WBE prime contractors based on their availability in the City’s market area.”
The results did not come as a surprise to the Kriseman team, which initiated the study process partly in response to the urging of in-house staff and The 2020 Plan (now known as One Community).
“The findings within the draft report appear to confirm what many, including us, have suspected: there are both racial and gender disparities with respect to contracting and subcontracting in our community,” said Deputy Mayor Dr. Kanika Tomalin.
Analysis found a disparity in both the prime contracts and subcontracts awarded by the City during the study period (October 1, 2014 to September 30, 2018).
The 260-page report also found that African Americans were the most underutilized by the City’s SBE program.
Across all prime contracts by the city in construction, professional services and other goods and services, 88% of contracts went to white men versus only 1.6% to Black-owned firms.
The difference was even more stark among the city’s most “highly used” vendors. White males won over 99% of the 826 contracts that went to the 57 most used firms. Not a single African American firm was in this group.
Mason Tillman Associates, the California-based firm that conducted the study, recommends that the City create a race- and gender-conscious program to remedy the disparity. St. Petersburg has not had such a program in place since 1999 when the city’s minority business enterprise (MBE) program was disbanded.
Dr. Tomalin stressed the importance of seizing the moment. “It is important to recognize that these findings are a new starting point that allows for the action steps required to realize increased access and equity for all firms wishing to do business with the City of St. Petersburg.”
The report will need to go to City Council before the city can take action against the recommendations.
The Mayor’s Small Business Liaison Jessica Eilerman will work with the Disparity Study Committee formed in 2018 to support community engagement around the findings, and next steps in ramping up minority business registration with the City’s current program.
The 2018 Disparity Study Committee members included:
- Theresa Jones, City of St. Petersburg
- Veatrice Farrell, Deuces Live
- Tahisia Scantling, Crossroad Consulting
- Jenee Skipper, Pinellas County Office of Small Business & Supplier Diversity
- Gypsy C. Gallardo, One Community Plan
- Rev. Kenny Irby, St. Petersburg Police Department
- Leah McRae, City of St. Petersburg
- Nikki Capehart, City of St. Petersburg
- Lendel Bright, City of St. Petersburg
- Anthony Jones, Retired
Other business development practitioners will be involved as well, including groups such as Tampa Bay Black Business Investment Corporation and Pinellas County Urban League.
“We honor Pastor Claude Williams for this milestone,” said Rev. Louis Murphy, a board member with The 2020 Plan and Pastor of Mt. Zion Progressive. “He urged us to push for the disparity study shortly before his passing in 2017, and I pray he is smiling down.”
Williams was employed with the City for 30 years, most recently as Economic Development Coordinator with the City Business Assistance Program. He was also founding Pastor of Victory Christian Church.
Click here for an executive summary of the study.
The Power Broker will update this report in the days ahead.
