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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MARCH 5, 2012 <br />TITLE: <br />PUBLIC HEARING - LOCAL BUSINESS <br />PREFERENCE ORDINANCE <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 1st Reading <br />? Ordinance on 2"d Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Adopt an ordinance amending the Santa Ana Municipal Code to provide Santa Ana and <br />Orange County businesses a percentage preference for all requests for proposals, contracts <br />and bids where the City is not otherwise restricted from offering such a preference. <br />2. Adopt a resolution providing Santa Ana Businesses with a seven percent preference and <br />Orange County businesses a four percent preference for all requests for proposals, contracts <br />and bids where the City is not otherwise restricted from offering such a preference. <br />BACKGROUND <br />In 2010, the City released 57 requests for proposals or bids to provide goods, materials or <br />professional services to the City. The total value of these contracts totaled more than $6.5 million <br />dollars. <br />In response to general direction from the City Council an interdepartmental committee including: the <br />Planning and Building Agency, Public Works Agency, City Attorney's Office, Finance and <br />Management Services Agency and the Community Development Agency was formed to research <br />and analyze local preference as a method to continue the City's support and promotion of local <br />businesses. <br />A local business preference allows the City to promote local businesses, as well as benefit from <br />enhanced economic activity as dollars re-circulate in the local economy by way of multiplier <br />effects. Multiplier effects have been shown to benefit the community in three unique ways: <br />1. Direct effects - Benefits the local economy by directly investing money through the <br />awarding of a City contract to a local business. <br />2. Indirect effects - Indirect effects occur when money awarded to a local business results in <br />inter-industry purchases of materials, supplies, goods and services. Another potential <br />indirect effect is the increase in employment associated with greater workloads/demands. <br />75B-1