City Quotas for Minority Contracts Up

Ignoring thinly veiled threats of a lawsuit by a construction industry lawyer, the San Diego City Council on Monday raised numerical goals for the hiring of minority and women subcontractors that firms receiving lucrative city contracts must try to follow.

The unanimous decision came after Ken Rose, a lawyer for the Associated General Contractors, told the council that U.S. and California supreme court decisions forbid such hiring goals unless the city has proven that minorities and women were the victims of past discrimination. San Diego has not made an effort to prove past bias.

“It is not the industry’s intention to go to court and force the constitutional issue,” Rose said, “but if we feel we have no other resort . . . the litigation option is there.”

Under city rules, firms receiving city contracts must pass on business to “minority business enterprises” and “women business enterprises” in accordance with the goals--or prove that they have made good faith efforts to do so.

Millions in Contracts

The contracts are not small change: In 1987, the city passed out $64.9 million in construction contracts, $75.6 million in contracts to vendors, and $14.8 million in contracts to consultants.

Deputy City Manager Jack McGrory told the council that the construction industry has cooperated with the city and voluntarily met the goals that apply to construction contracts.

But District 7 Councilwoman Judy McCarty did not take kindly to the lawsuit threat, telling Rose that her gut reaction was to say: “So sue me.”

District 6 Councilman Bruce Henderson worried that “I’m being asked to approve a motion that is a violation of the U.S. Constitution” before Deputy City Atty. John Kaheny assured him that the goals are legal.

Discussion of the race and sex goals also sparked debate over whether the council could set goals for contracting with local businesses and requiring some city employees to be San Diego residents. Those issues were referred to council committees.

For 1988, construction firms receiving city contracts must attempt to subcontract 20% of their business to minority subcontractors and 7% to women subcontractors, up from 15% and 5%, respectively, in 1987.

Goals for “vendor” contracts were increased to 10% for minority and women subcontractors, up from 8% and 3%. Consultants with city contracts must shoot for goals of 12% for minorities and 3% for women. The minority goal is an increase of 2% over 1987, while the women’s goal is the same as last year’s.