Los Angeles City Councilmen Paul Koretz, Bob Blumenfield and Marqueece Harris-Dawson have introduced a motion that would create a ballot measure in 2022 to amend the city charter and provide additional contracting preference to businesses located in Los Angeles.

The city charter currently allows for a bid preference for businesses that are local, defined as businesses located in Los Angeles County or the state of California. The city is currently prohibited from providing an additional bid preference for contracts for businesses located within the city. If the charter is amended to add “city of Los Angeles” to the definition of “local,” the city would be permitted to have an additional preference for L.A. businesses, Koretz said.

“The city of L.A. is already one of the most expensive places in the country to do business, creating a climate in which businesses are forced to compete against firms with lower labor and business costs from neighboring cities, counties and states,” said Koretz, 5th District. “This proposed charter amendment is a no-brainer and an opportunity to provide a bump to hundreds of local, small businesses, many of which have been seriously impacted by the pandemic and struggled to stay afloat over the last 15 months.”

According to the National Institute for Public Procurement, models of local bid preferences across the country have assisted municipalities in setting and achieving social policy goals to assist residents, and improve and protect the local economy, Koretz added. In 2019 and 2020, the city of Los Angeles awarded nearly $3 billion in contracts, approximately $600 million of which went to businesses  in Los Angeles County. The benefit of keeping tax dollars spent on contracts in Los Angeles could have a substantial positive impact on the development, enrichment, growth, expansion and retention of the local business community and the city’s workforce, Koretz added.

The motion next heads to the Rules, Elections and Intergovernmental Relations Committee before being considered by the full City Council.