Minority contracts in question

As doubts arise over minority ownership, some ask if the School Board should scrutinize more.

By MELANIE AVE, Times Staff Writer
© St. Petersburg Times
published February 20, 2002

TAMPA -- Hillsborough School Board members patted themselves on the back Tuesday night, thrilled with a new report that shows the school system's use of minority subcontractors is at an all-time high.

But one of the largest subcontractors listed in the report -- GPM Inc. -- may not be a minority business at all.

That's what the Hillsborough County Aviation Authority decided last year after the company's president, Jonathan Graham, who is black, applied for minority certification to qualify for agency work.

Diane Pryor-Vercelli, the aviation authority's senior director of properties and contracts, said officials concluded in August that Thomas B. Bradley, who is white, was the real owner of the masonry company though he only had a 49 percent interest in GPM compared to Graham's 51 percent.

Bradley operates a large masonry firm, known as Masonry Builders, from the same address as GPM.

"The building was in (Bradley's) name. The insurance was in his name. The bonding ability was in his name. The general contractor license was in his name," Pryor-Vercelli said. "Jonathan was not a controlling partner or financial stakeholder in the business."

Bradley, who is listed as GPM's secretary, could not be reached for comment Tuesday.

But Graham, whose company is one of the largest minority subcontractors working for Hillsborough schools, earning almost $11-million since 1999, said the aviation authority made a mistake.

He said he has appealed its decision and denied that his business is a front for a white-owned company.

"Mr. Bradley is a person who owns a percentage of my business," Graham said. "I do all the contract work. I do all the bids. I'm the person who is responsible for everything."

Hillsborough assistant superintendent Jack Davis said the school district was aware of the aviation authority's conclusion about GPM. But school officials do not independently evaluate whether companies are operated by minorities, he said.

And since the company holds a current minority certification from Hillsborough County, there is little the school district can do, Davis said.

The school system, which has a goal of using a minimum of 10 percent minority subcontractors on school projects, requires such firms to be at least 51 percent owned and controlled by a minority, have a staff of less than 100 and earn an average net income of $2-million or less.

They also must provide proof of their minority status to either the city, county or state.

In contrast to the school system's policy against verifying minority firms, both the city of Tampa and Hillsborough County are reviewing GPM's minority certification status.

"It's a possibility they might need to be revoked," said Bonny Cropper, the city's certification officer. "The implication I got is apparently Mr. Graham was brought for the sole purpose of being certified as a minority business."

School board members contacted after their Tuesday meeting, where they were told the percentage of minority subcontractors increased from 19 percent to 27 percent between 1999 and 2000, were unsure how to address GPM's status.

Glenn Barrington said he wants to see proof that GPM isn't a minority firm.

"The aviation authority has nothing to do with us," he said. "We'll make our own decision."

Candy Olson said she doesn't want the school system to get into the business of determining minority status, but said the district needs to review its process.

"We'll certainly have to look at it," she said.

This is just the latest controversy involving the minority program and the school system, as the district battles allegations of widespread mismanagement, shoddy construction and overspending. Most of the accusations were lodged by former longtime administrator Doug Erwin, who recently retired.

A St. Petersburg Times story last week revealed that GPM was paid both as a consultant for the district's minority business enterprise program and as a subcontractor, with the blessings of the school district.

Other contractors say Graham, as a consultant, had relationships with contract managers. Even if he wasn't getting contracts on jobs for which he consulted, they said those relationships gave him an unfair advantage in winning other bids.

Now with GPM's minority status in question, other minority contractors say the school district needs to overhaul its program and make it fair.

"It's a fraud," said Joe Robinson, a black engineering consultant who has worked for the district. "They're still using the good ol' boy system."

-- Melanie Ave can be reached at (813) 226-3400 or melanie@sptimes.com.

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