HomeMy WebLinkAboutMICROSOFT POWERPOINT - 75B_LOCAL BUSINESS PREFERENCE ORDLocal Business
Preference Ordinance
Santa Ana City Council
March 5, 2012 75B
Background
General direction from the City Council to
promote and support local businesses
• Interdepartmental committee assembled to
analyze current policies and procedures
• City currently uses a 1 %bid preference for
Santa Ana businesses
• City Charter limits the use of local preference
Other funding sources also prohibit the use of
local preference
Ordinance Goals
• Promote local businesses by offering an
advantage for local businesses
le Enhance economic activity as money re-
circulates in the local economy
• Minimize the impact on local businesses to
participate and City to administer the program
Analysis
• 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
— 7%
preference
for
Santa Ana businesses
— 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
Recommendation
Adopt an ordinance and resolution to
provide Santa Ana businesses with a 7%
preference and Orange County
businesses a 4% preference on all
qualifying city contracts and bids
.;
SANTA ANA-41,