1. Availability and Disparity Study Briefing Presented to Housing and Economic Development Committee February 2, 2010

2. Purpose Review Availability and Disparity Study Requirement and Process Introduce Mason Tillman Associates, Ltd. Presentation of Study Findings and Recommendations Next Steps Questions and Answers

3. Study Requirements and Process This briefing will: Provide the Housing and Economic Development Committee (Committee) with an overview of the study background, findings and recommendations Provide the Committee with an opportunity to ask questions Provide the Committee with an opportunity to refer the draft final study to the Minority/Women Business Enterprise Advisory Committee (M/WBEAC) for extended and in- depth review, discussion and development of a revised M/WBE Ordinance for Council adoption

4. Study Requirements and Process State and local governments are required to validate a statistically significant underutilization of minority and/or women- owned businesses before it can establish an M/WBE Goals-Based Program. Availability and Disparity Studies have been deemed, by the courts, as an acceptable method to validate statistically significant underutilization and to establish recommended remedies. The City of Fort Worth’s existing MWBE Ordinance was adopted 4/23/03 and became effective on 6/1/03 (based on a previous study).

5. Study Requirements and Process Studies should be periodically updated. The City, approximately every five years, updates its study to determine if MWBE Ordinance revisions are needed. Mason Tillman Associates, Ltd. was engaged through the Council of Governments (COG) to conduct a study update ($195,007). City has also engaged outside legal counsel to provide oversight of the study and assist with the subsequent development of a new M/WBE Ordinance (Franklin M. Lee, Tydings & Rosenburg, L.L.P.-- not-to-exceed $110,000).

6. Study Requirements and Process Timeline Spring 2007 - discussions with the North Central Texas Council of Governments (NCTCOG) and several local governments regarding possible joint study Spring 2007 - NCTCOG agrees to serve as project manager of study consortium (six) Summer/Fall 2007 – Request for Proposal developed, advertised and responses evaluated

7. Study Requirements and Process Timeline Fall 2007 - Mason Tillman Associates (MTA), Ltd. based in Oakland, California selected as consultant Dec. 2007 thru Feb. 2008 – Interlocal Agreements finalized by each consortium member with the North Central Texas Council of Governments February 5, 2008 – City Council approved Interlocal Agreement with the North Central Texas Council of Governments (City of Fort Worth cost = $195,007) March 26, 2008 - City of Fort Worth kick off meeting conducted with MTA, Ltd. and key City departments (Approximately 12 to 18 month study period begins)

8. Presentation of Study Findings and Recommendations Mason Tillman Associates, Ltd.

9. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 9 February 2010 CITY OF FORT WORTH AVAILABILITY AND DISPARITY STUDY Briefing

10. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 10 DISCUSSION POINTS Management Team Study Objectives Research Method Statistical Results Recommendations

11. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study MASON TILLMAN ASSOCIATES Service Divisions –Business Affirmative Action –Corporate Communications Established in 1978 Public Policy Research and Marketing Professionals Award Winning Company

12. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 12 DISPARITY STUDIES One Hundred and Eight On Time & Unchallenged 14 14 8 States Counties Schools Cities 25108 Districts 47

13. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study CITY DISPARITY STUDIES 25 CITY STUDIES FORT WORTH, TX GRESHAM, OR HOUSTON, TX INDIANAPOLIS, IN KANSAS CITY, MO KNOXVILLE, TN NEW HAVEN, CT ARLINGTON, TX BOSTON, MA BRIDGEPORT, CT CLEVELAND, OH DALLAS, TX DAVENPORT, IA DAYTON, OH DURHAM, NC NEW YORK, NY OAKLAND, CA (2) PITTSBURGH, PA PORTLAND, OR RICHMOND, CA SAN JOSE, CA (2) SEATTLE, WA TAMPA, FL

14. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study SUBCONSULTANT TEAM EXPERIENCE Subconsultants Disparity Study Experience Legal Analysis Data Collection / Outreach Program Design The Burrell Group5 ●● Consumer Market Insights--- ●● Adrian Information Systems5 ●● Trovada Davis1 ●● Ms. Sherry Crum-Tupper4 ● Mr. Scott Emblidge, Esq.1 ●●

15. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 15 AVAILABILITY AND DISPARITY STUDY Assess Market Need Business Availability Analyze Prime Contract Awards Determine If M/WBE Statistical Disparity Exists Ascertain Practices Affecting Any Documented Disparity Prepare a Legally Defensible Study OBJECTIVES Outreach to Ethnically Diverse Community Identify All Willing Market Area Businesses Compile All Prime and Subcontract Awards and Payments Define Best Management Practices to Eliminate Barriers CHALLENGES

16. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study City of Fort Worth Fort Worth ISD The T City of Arlington DFW Airport North Texas Tollway Authority CONSORTIUM AGENCIES

17. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study DEFINITIONS OF INDUSTRY GROUPS STUDIED Construction  New Construction, Remodeling, Renovation, Maintenance, Demolition and Repair of any Public Structure or Building, and Other Public Improvements Architecture and Engineering  Construction Management, Landscape Architecture, Surveying, Mapping Services, and Architecture and Engineering Professional Services  Services Provided by Attorneys, Accountants, Medical Professionals, Technical Services, Research Planning, and Consultants Non-Professional Services  Maintenance and Other Services Which Could be Performed Without a Professional License, Special Education, or Training Goods  Materials, Supplies, and Equipment

18. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 18 Prime Contract Analysis and Findings Prime Contract Analysis and Findings

19. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 19 STUDY YEARS October 1, 2002 – September 30, 2007 Industries Total Prime Contracts Total Prime Payments Construction Services1,111$638,173,133 Architecture and Engineering Services 662$68,349,670 Professional Services2,773$68,839,866 Non-Professional Services 8,578$339,530,159 Goods7,036$236,417,209 Total Expenditures20,160$1,351,310,036

20. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 20 Identify Prime Contract Records  Complete Electronic Records Provided Reconstruct Subcontract Records  Electronic Records Provided  Prime Contractors Surveyed  Subcontractors Surveyed Identify Available Businesses  Utilized Bidders From Contract files  Unsuccessful Bidders Lists From Project Files  Local Government Certified Lists  Trade Association Membership Lists  Business Outreach DATA REQUIREMENTS

21. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 21 TOTAL PRIME PAYMENTS October 1, 2002 – September 30, 2007 Market Area: Dallas / Tarrant Counties Total Dollars Within Market Area $1,092,094,810 80.82% Outside Market Area $259,215,226 19.18% Dallas County 19.93% Tarrant County 60.89% Other Texas Counties 12.15% Outside Texas 7.03%

22. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 22 DISTRIBUTION OF PRIME CONTRACT DOLLARS Dollars Percent Dollars Number Contracts Percent Contracts 4 Vendors Received$360, 506,11727%730.36% 22 Vendors Received$682,490,43450%4952.46% Dollars60%7963.95% Total Contracts20,160 Number Utilized Vendors4,704 Total Expenditures$1,351,310,036 41 Vendors Received$812,891,52360%7963.95% 4,663 Vendors Received$538,418,51340%19,36496.05% 4,704 Vendors Received$1,351,310,036100%20,160100.00%

23. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 23 PRIME CONTRACT SIZE ANALYSIS INDUSTRY Under $25,000 Under $100,000 Under $500,000 $500,000 and Over Construction Services39.69%50.59%72.73%27.27% Architecture & Engineering53.47%77.95%95.77%4.23% Professional Services86.33%95.64%99.24%0.76% Non-Professional Services87.07%95.34%98.87%1.13% Goods85.16%94.00%98.61%1.39%

24. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 24 PRIME UTILIZATION BY ETHNICITY Ethnicity Total Payments Percent of Payments Total Contracts Non-Minority Males$1,247,639,48792.33%17,758 Caucasian Females$49,914,3283.69%1,304 Hispanic Americans$32,174,8562.38%511 African Americans$11,354,0780.84%337 Asian Americans$9,666,9790.72%200 Native Americans$560,3080.04%50 $1,351,310,036100.00%20,160

25. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 25 BUSINESS SIZE BY EMPLOYEES 2006 County Business Patterns Businesses Dallas County Tarrant County State of Texas United States Fewer than 5 Employees 51%50%52%54% Fewer than 20 Employees 82%83%85%86% Fewer than 100 Employees 96%97% 98% More than 500 Employees 0.42%0.29% 0.25% Total Establishments 63,30836,300509,0807,601,160

26. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 26 ETHNICITY/GENDER PROFILE Businesses Dallas County Tarrant County State of Texas United States Minority-owned Businesses 29%20%29%18% Woman-owned Businesses 27%28%27%28% Total Businesses 195,101119,1391,734,50922,974,655 2002 Survey of Business Owners

27. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study PRIME CONTRACTOR DISPARITY FINDINGS Under $500,000 Ethnicity / Gender Construction Services Architecture and Engineering Professional Services Non-Professional Services Goods African AmericansYes Asian AmericansYes Hispanic Americans Yes Native AmericansYes ---Yes Minority Business Enterprises Yes Women Business Enterprises Yes Minority and Women Business Enterprises Yes Yes = Statistically significant disparity No = Statistically insignificant disparity --- = Underutilization, but too few contracts to test disparity

28. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study PRIME CONTRACTOR DISPARITY FINDINGS Under $25,000 Ethnicity / Gender Construction Services Architecture and Engineering Professional Services Non-Professional Services Goods African AmericansYes Asian AmericansNo Yes Hispanic Americans Yes Native AmericansYes ---Yes Minority Business Enterprises Yes Women Business Enterprises NoYes Minority and Women Business Enterprises Yes Yes = Statistically significant disparity No = Statistically insignificant disparity --- = Underutilization, but too few contracts to test disparity

29. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 29 Subcontract Analysis and FindingsSubcontract Findings

30. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 30 SUBCONTRACTOR UTILIZATION BY ETHNICITY THREE INDUSTRIES* Ethnicity Total Payments Percent of Payments Total Subcontracts Non-Minority Males$239,210,43249.96%5,736 Caucasian Females$129,919,49627.14%2,116 Hispanic Americans$63,420,53213.25%1,074 African Americans$21,734,2344.54%507 Native Americans$15,153,6883.17%86 Asian Americans$9,338,8341.95%223 $478,777,217100%9,742 Asterisk = Construction, Architecture and Engineering, and Professional Services

31. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 31 SUBCONTRACT DISPARITY FINDINGS OCTOBER 1, 2002 TO SEPTEMBER 30, 2007 Ethnicity / Gender Construction Services Architecture and Engineering Professional Services African Americans YesNoYes Asian Americans YesNo Hispanic Americans YesNo Native Americans No Minority Business Enterprises YesNo Women Business Enterprises No Minority and Women Business Enterprises YesNo Yes: Statistically significant disparity No: Statistically insignificant disparity

32. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 32 ProgramRecommendations ProgramRecommendations

33. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 33 I. M/WBE Program Continue To: Establish Overall MBE Goals Set Contract Specific MBE Goals for Construction and Professional Services Establish MBE Small Contracts Rotation Program Require Minority Participation on Evaluation Panels RACE AND GENDER CONSCIOUS REMEDIES

34. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 34 II. Fort Worth Program Enhancements Expand Assistance to M/WBEs to Meet Insurance Requirements Evaluate Bonding Requirements Expand Expedited Payment Program III. Best Management Practices Expand Unbundling Policy Develop Mentor/Protégé Program Implement Construction Direct Purchasing RACE AND GENDER NEUTRAL REMEDIES

35. © 2010 Mason Tillman Associates, Ltd. | City of Fort Worth Availability and Disparity Study 35 Email: masontil@mtaltd.com masontil@mtaltd.com Web page: www.mtaltd.com THANK YOU!

36. Next Steps –Staff recommends that: Mason Tillman Associates, Ltd. perform a brief optional supplemental analysis (nexus analysis) to: –analyze M/WBE participation in an M/WBE goals environment (City of Fort Worth ) vs. none M/WBE goals environments (applicable AD Study Consortium Members) The Committee refers final draft study and the supplemental analysis (nexus analysis) to the Minority/Women Business Enterprise Advisory Committee (M/WBEAC) for extended in-depth review and development of a revised M/WBE Ordinance City Council adopts proposed revised M/WBE Ordinance by August 2010

37. Next Steps AD Study Ad Hoc Committee Organizations (sample organizations) 1) Tarrant County Asian Chamber 2) Fort Worth Metropolitan Black Chamber of Commerce 3) Fort Worth Hispanic Chamber of Commerce 4) American Indian Chamber of Commerce 5) Fort Worth Chamber of Commerce 6) Women in Construction 7) Quoin (AGC) 8) Consulting Engineers Council 9) American Institute of Architects 10) Hispanic Contractors Association 11) Black Contractors Association 12) Minority Business Development Council 13) Women’s Business Council 14) Tarrant County Contractors Association

38. Questions ?

39. Availability and Disparity Study Briefing Presented to Housing and Economic Development Committee February 2, 2010