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Local Preference Ordinance <br />• The City released 57 bids for materials, supplies, labor and equipment or <br />requests for proposals in 2010. <br />• Of these, 31 would have been eligible for local preference based on the criteria <br />established in the proposed ordinance <br />• Based on the analysis of a 20-contract sample by the Finance and <br />Management Services Agency, a local preference of 7% would result in <br />approximately 25% of contracts going to local businesses. <br />Fiscal Impact Calculations: <br />Number of eligible contracts (31) <br />Total value of eligible contracts ($1,446,609) Average price per contract ($46,664.81) <br />$46,664.81 x 7% preference = Average additional cost per contract ($3,266.54) <br /># of eligible contracts (31) x Estimated % to local businesses (25%) = 8 contracts <br />Number of local Average additional _ Estimated additional cost per year <br />business contracts X City cost per contract for Local Preference Program <br />(8) ($3,266.54) ($26,132.32) <br />* - Examples of contracts that would not be eligible include: Contracts over $100,000, Public Works <br />Construction contracts, cancelled bids, etc. <br />EXHIBIT 5 <br />75B-12