55B - RESO WORKER COOPERATIVES - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 1, 2017 TITLE: ADOPT A RESOLUTION SUPPORTING DEVELOPMENT AND GROWTH OF WORKER COOPERATIVES IN SANTA ANA Y MANAG RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 18` Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Adopt a resolution supporting the development and growth of worker cooperatives in the City of Santa Ana. 2. Direct staff to evaluate and provide recommendations on how the City can incentivize and assist in enabling the formation of worker cooperatives. DISCUSSION Worker cooperatives are businesses owned and operated solely by its workers. These businesses provide local goods and services, stable jobs for residents, and offer new economic opportunities for lower income workers in the City. A worker cooperative is different from a typical business structure in that the profits are shared amongst the owners and each worker has an equal vote in the direction and actions of the business. There exist several barriers to the development of worker cooperatives which include: lack of public awareness of its benefits; limited technical support in forming, operating, or converting existing businesses to a worker cooperative; difficulties obtaining financing for cooperative formation or conversion; and high startup costs (permit fees, license fees, lease rates) that many small businesses experience in California. Municipalities such as Oakland, Berkeley, and Austin have approved resolutions supporting the development of worker cooperatives in their respective cities. As local municipalities look for new and strategic forms of community economic development efforts, Santa Ana has the opportunity to be a leader in Orange County to support and reduce barriers for the development and future of a cooperative economy in the City. 5513-1