Skepticism Greets $110M Oakland International Airport Deal

February 18, 2004

Skepticism Greets $110M Airport Deal
Alameda Times-Star, CA

OAKLAND -- An influential group of African-American
business leaders Tuesday again opposed a $110 million
contract awarded to Turner Construction for the
expansion of Oakland International Airport. 

But their voices failed to persuade port commissioners
or city officials to delay or cancel a vote on the
contract, which will add seven gates to the airport
and renovate Terminal 2. 

Instead, the port commission voted unanimously to give
the contract to Turner and promised to "hold Turner's
feet to the fire" to ensure the company hires minority
firms. 

"While we don't expect to cure unemployment in
Oakland, (this program) allows us to make a
significant contribution," said Bernida Reagan,
director of the port's social responsibility division.
"This is not a good-faith policy ... this is a
meet-the-goals policy, or be penalized."  

The port and Turner Construction rebutted criticism by
the Oakland Black Caucus that minority firms would not
be hired. Both the port and the contractor described
in detail a policy to locate, train and hire city
residents for construction jobs at the airport. 

That policy includes fines if Turner does not devote
more than 30 percent of construction work to small and
locally owned firms. 

Turner has already spent more than $1 million on
various outreach programs to find qualified firms and
has promised to devote more than 45 percent of
construction spending to minority firms, company
officials said. 

In fact, Turner has awarded contracts to six
black-owned firms and seven Asian-owned firms, port
documents show. 

"Promises made are promises delivered," said Hilton
Smith, a Turner Construction vice president who is
African American. "We are absolutely certain this
program will bring unity to the Oakland community." 

But on Tuesday it brought division as dozens of Black
Caucus members heckled the commission and demanded a
delay in the vote. 

The group is concerned that the port does not have an
adequate monitoring program to ensure Turner
Construction will hire minority firms. It also is
concerned that the port does not have a program to
ensure unemployed African Americans can find training
for construction jobs. 

"The only leverage that you have is to postpone the
... vote," said Geoffrey Pete, an Oakland Black Caucus
member. "Once the ink dries, you can forget it." 

Port officials, however, presented a laundry list of
programs it has created to help train and hire African
Americans. Those programs range from a 5-year-old
project labor agreement to a 2-year-old local
business-utilization program. 

The project labor agreement mandates that a certain
percentage of port construction jobs be done by local
residents, and the local business-utilization program
ensures local business are hired for work. 

"We think this represents the best Oakland has to
offer," Reagan said. 

Reagan said the project labor agreement has proved
successful. The agreement has ensured that more than
70 percent of workers on port construction jobs are
city residents. 

And in an apparent jab at former Oakland School Board
President Greg Hodge, who is the current chairman of
the Oakland Black Caucus, Reagan noted that only 6
percent of the work force on school district
construction projects are city residents. 

While Black Caucus members were unified against
Turner, other African-American businessmen spoke in
favor of the contract and the efforts the port has
made to ensure city firms and residents benefit from
one of the largest public works projects in city and
port history. 

African-American commissioners also praised the work
of port staff and heralded their approval as a step in
the right direction. 

"I'd be remiss if I did not congratulate ... port
staff," said Commissioner Darlene Ayers-Johnson. "As I
cast my vote today, I am going to hold Turner's feet
to the fire." 

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