City Council Approves Deal for Local Firms Bidding on City Contracts

Signing the ordinance | Credit: Betsy Anna, City of L.A.

LOS ANGELES - Mayor Antonio Villaraigosa signed an ordinance today that should help local businesses win city contracts fo jobs worth more than $150,000.

The "local preference" ordinance, sponsored by City Councilmen Paul Krekorian and Bernard Parks, shaves 8 percent off the bottom line on bids for city contracts tendered by Los Angeles County-based companies.
 

To qualify, businesses need an address in Los Angeles County and need to have at least 50 full-time employees, or half of their full-time employees working in Los Angeles County at least 60 percent of the time.

Mayor Antonio Villaraigosa held a signing ceremony today, in part of publicize the program, which is part of larger five-part strategy to create jobs.
 

"I'm tired of cutting (budgets),'' Villaraigosa said. ``I'm tired of  furloughs, and I'm tired of laying off. We've got to generate jobs, generate revenue, so we're not faced with the daunting task of just cuts.''

He said he hoped the ordinance would be tip the scales for business owners considering a move to Los Angeles. In the fiscal year ended June 30, Villaraigosa said the city spent close
to $2 billion on goods, services and construction, but only a fraction of the
work went to locally based firms.

In fiscal 2008-09, about 15 percent of city contracts, in terms of dollars, were won by L.A.-based firms, Villaraigosa said. More recent comparable figures were unavailable.
 

Under the new rules, city officials would have to reckon a $1 million bid from a local firm at $920,000. It will also give Los Angeles firms an 8 percent boost on contracts decided on factors other than just price.

The ordinance would not apply to the city's self-supporting city departments, including the airport and port departments, the Department of Water and Power and Community Redevelopment Agency.
 

Also excluded are the contracts with the Recreation and Parks Department and Library Department, but Villaraigosa said he urged the heads of those departments to approve similar incentives.
 

Ron Nichols, head of the DWP, said some of services the utility needs are not offered by local firms. He did agree that a "local preference" ordinance might lure some DWP contractors here.   Krekorian said the ordinance should help prop up the local economy.

"It's just unconscionable that ,when this city spends billions of dollars on purchasing goods and contract services, that we treat a business in North Dakota precisely the same way we treat a business in North Hollywood,''he said.

-City News Service