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• City released (57) Requests for bids and services in 2010 totaling $6.5 million dollars • Analysis of a sample of those bids indicated a 7% preference would have resulted in 25% of contracts being awarded to local businesses • Recognize that Santa Ana is part of a larger regional economy Proposed Incentives • Tiered preference system 0 7% preference for Santa Ana businesses 0 4% preference for Orange County businesses • Preference level consistent with other cities programs • Use the State Department of General Services to certify businesses Outreach to Business Community • Proposed ordinance sent to various business groups • Orange County Business Council • Santa Ana Chamber of Commerce • Orange County Hispanic Chamber of Commerce • Vietnamese American Chamber of Commerce • Black Chamber of Commerce of Orange County • Santa Ana Merchants Association Proposal well received Fiscal Impact • Estimated fiscal impact about $26,000 • Does not account for the economic benefits that local preference ordinances have on the local economy • Multiplier effects when money stays in the local economy Mayor Pulido opened the Public Hearing at 8:04 p.m. There were no speakers and the hearing closed. Council discussion ensued. Council directed staff to provide information to all of the community and businesses on new program. 1. Place ordinance on first reading and authorize publication of title. ORDINANCE NO. NS -2828 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING ARTICLE VII.II OF CHAPTER 2 OF THE SANTA ANA MUNICIPAL CODE, ESTABLISHING A PREFERENCE FOR LOCAL BUSINESSES IN THE PROCUREMENT OF MATERIALS, SUPPLIES, LABOR, EQUIPMENT OR SERVICES 2. Adopt a resolution. RESOLUTION NO. 2012 -006 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SETTING A LOCAL PREFERENCE CITY COUNCIL MINUTES 12 MARCH 5, 2012 1 0A -12