Minority contractors halt city project

AUSTIN (KXAN) - African American and Hispanic contractors in Austin said the city is not including them in big projects in town.

Thursday, they pitched a major protest in front of the Austin City Council more than a $67 million Austin Energy project.

The project would gut a former electronics manufacturer's assembly plant at 2500 Montopolis Drive, and turn it into Austin Energy's Control Center for Austin's electric grid.

"This project is a remodel of an existing building," said Austin Energy Deputy General Manager Cheryl Mele.

But Mele and other Austin Energy staff faced major resistance from the Austin City Council Thursday.

"I don't believe it's appropriate to award this today," said Austin Mayor Pro-Tem Mike Martinez.

Martinez and council member Sheryl Cole led a postponement of the contract because both the African American and Hispanic Contractors Associations in town felt they were left out of the $67 million contract.

"It's a situation where extensive public dollars are being spent by us where two segments of the minority population were left out," said Cole.

Austin has a law on the books saying contractors have to meet certain goals to include minorities, women and small businesses in construction projects in town.

The groups said said no participation goals were met by the contractor, DPR Construction.

"They would have awarded a $67 million with zero participation on the promises that, 'Oh, we'll get participation in the future,'" said U.S. Hispanic Contractors Association President Frank Fuentes.

So the council will keep the existing center in Downtown Austin at least until Austin Energy staff comes back with more answers by May 27.

"I think they're asking for more clarity, and we want to see more of that," said Mele.

And that future Austin Energy building will sit in East Austin waiting to include more people to remodel it.

"I think today was a win for the entire city," said Fuentes.