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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 o Orange County Business Council o Santa Ana Chamber of Commerce o Orange County Hispanic Chamber of Commerce o Vietnamese American Chamber of Commerce o Black Chamber of Commerce of Orange County o 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. MOT/ON: 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 VI1.11 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