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Portland City Council on Wednesday officially accepted a study that points out disparities in the use of minority- and women-owned firms and emerging small businesses on city projects, in comparison to availability of such contractors.

But amid complaints about the study’s accuracy and the city’s MWESB programs in general, City Council stated clearly that real progress toward equality happens after a study is performed.

In addition to accepting the disparity study into the city record 鈥� a move that helps legally shield the city’s MWESB programs from fair practice lawsuits 鈥� the resolution establishes four immediate program changes and sets a course for more to be made in the near future. And while the meeting was somewhat contentious, few argued against the merits of the changes.

鈥淟et me be clear,鈥� Mayor Sam Adams said. 鈥淭his is only the first step to making changes in how we contract work 鈥� (and) continuing to become a city with the most equal opportunities.鈥�

The most drastic change to come out of the resolution will be replacement of the city’s Sheltered Market Program, which offers its participants 鈥� state-certified MWESB firms 鈥� bidding advantages on certain projects. The council is requiring Sheltered Market Program members to graduate by October, when city officials will create a stronger program.

Another significant change revises the city’s Contractor Prequalification Program to make it easier for MWESB firms to prequalify for project bids.

According to the resolution, the city will 鈥渞equire all requests for project specific special prequalification to be evaluated and approved by (the) Chief Procurement Officer before being applied. Approval of all prequalification requests $250,000 and under will be based upon bonding capacity. Applications will not be forwarded to the bureau for evaluation of additional prequalification criteria.鈥�

Adams said necessary changes may cause discomfort.

鈥淭he uncomfortable truth is bureau managers and purchasers are going to have to give up some of their power and must have more oversight,鈥� he said.

Many observers agreed that the city is taking steps in the right direction. Both Herb Fricke, president of the Oregon Native American Chamber, and Penny Painter, co-vice president of the chamber, called these actions beneficial to removing barriers for minority contractors and creating equity.

But a number of stakeholders also said more needs to be done to close the gap.

Andrew Beyer, an LCG Pence Construction senior manager who was part of the community advisory committee that helped guide the disparity study, recommended several additional steps 鈥� from strengthening the reporting standards to simplifying the bidding process. He cited an upcoming Portland Water Bureau project so technical and complicated that submission of a bid would most likely cost between $30,000 and $40,000.

鈥淭hat’s a barrier right there,鈥� he said. 鈥淵ou need to simplify the process and break up projects.鈥�

Beyer also said the city needs to replicate what it did in the South Waterfront, where use of MWESB firms was substantial. He said attributed success to accountability.

鈥淲hat gets measured and reported gets done,鈥� he said. 鈥淲ith scrutiny we can get results.鈥�

Gale Castillo, executive director of the Hispanic Metropolitan Chamber, also offered a slew of recommendations ranging from using a more qualitative approach in the bidding process to providing MWESB certified contractors with up-front financing to help them grow.

Castillo also suggested using the Hispanic Metropolitan Chamber, and other organizations like it, to help spread the word about projects. That idea was included in the resolution.

The council instructed bureaus to hold quarterly outreach events focused on upcoming city projects and connecting larger companies to MWESB firms. Bureaus also will be required to initiate monthly meetings to discuss projects ready for design and determine whether opportunities exist for the use of alternative contracting methods to encourage maximum use of MWESB firms.

City councilors noted that more changes may be ahead for the city’s various programs. One could come require MWESB representation for a specific trade within a specific project.

This idea came out of a comment made by Roy Weedman, owner of Bud Construction. He said he is adversely affected by MWESB programs because general contractors often try to meet representation requirements through services like flagging and trucking, which his company provides.

After engaging in discussions with legal counsel, Adams said the city should look into the idea.