The Los Angeles City Council on July 27 adopted resolutions declaring the results of the June 7 Primary Election, including the passage of the city of Los Angeles’ Measure BB, which allows the city to implement an additional contracting bid preference for businesses that are located in the city of Los Angeles.
The measure, authored by Councilman Paul Koretz, 5th District, amends the city charter to add “city of Los Angeles” to the definition of “local” in Section 371a. of the charter.
“It’s not a secret to this group that businesses in LA – particularly the small businesses that make up about 97% of businesses in L.A. County – have taken an enormous hit over the last two years,” Koretz said. “At the height of the pandemic, businesses were shuttering their doors left and right, and there were about 300,000 Angelenos out of work. This at a time when rents, utilities, insurance, sales taxes and business taxes also place businesses in the city of L.A. at a competitive disadvantage. This measure will open up the city’s financial purse and contracting dollars to local businesses and help L.A.’s business community regain the foot-hold they had before the pandemic.”
Currently, businesses operating in Los Angeles receive the same point preference on bids to do business with the city as businesses operating in Santa Clarita or Lancaster.
Furthermore, based on data compiled by the city of Los Angeles’ Bureau of Contract Administration during 2018-2019, only 7%, or one in 15, local business enterprise awards went to city businesses as a result of the city’s Local Business Preference Program. Those businesses secured only one-quarter of 1% – or $96,000 out of a potential $41.5 million – in contracting dollars awarded through the program.
“I’ve spent the last 35 years in government, 10 of which I spent serving on the city of L.A.’s Budget and Finance Committee, bucking the trend, identifying efficiencies to make government work better, and like Measure BB, pushing government to work better for Angelenos,” Koretz added. “This is what I’ll continue to do during my time in office.”
“I thank the voters who made local business preference part of the city’s charter. Now more than ever, we need to shop local and support Angeleno run businesses. That includes our city government,” said Councilman Bob Blumenfield, 3rd District. “As the second largest city in the nation, our spending is its own economic engine, and it should be used to power local businesses and workers so that the positive impact of our tax dollar is multiplied many times over.”
“L.A.’s entrepreneurial spirit is what makes this city so unique and vibrant,” L.A. City Controller Ron Galperin said. “We have a responsibility to do everything we can to support our local businesses and improve the city’s contract bidding process, which is something I’ve long advocated for in my reports and audits. The passage of Measure BB opens up new opportunities for L.A.’s business community, especially for the many women- and minority-owned small businesses that are the heart and soul of our great city. After a difficult two years that has left so many businesses struggling to keep their doors open, this measure will finally give local businesses the leg up that they deserve.”
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