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File Number: 13-630 <br />campaign to ensure that local businesses are aware of the opportunity and know what <br />materials they need to submit to get on the pre -qualified list. Partnerships, especially with the <br />Chamber of Commerce, appear best suited to assist in the accomplishment of this procedure. <br />Compliance and Monitoring: Although the program largely puts the onus on businesses to <br />show that they have complied with the program, staff will be responsible for reviewing that <br />documentation and resolving disputes when they arise. The complexity of both the definition <br />of a local business and the best efforts activities required to comply with the local business <br />participation goal dictate that significant staff resources will be required to monitor, implement <br />and track the program. Given current staffing levels, additional personnel costs will likely be <br />required. <br />If disputes do arise regarding implementation of the program, it may be necessary to define <br />an appeal process that makes the City Manager the final arbiter. <br />Low Threshold for Contract Amounts: Because contracts as small as $5,000 may be <br />subject to this program, it has the potential to slow the process of making relatively minor <br />purchases if staff is required to collect and review documentation from local bidders. <br />Outreach and Education: To successfully implement a Local Inclusion Program a substantial <br />amount of outreach and education will be required. With limited staff resources, this effort will <br />require effective partnerships with outside organizations, including the Chamber of <br />Commerce. <br />Tracking and Program Review: Although the City has the current capacity to review the <br />share of purchase orders going to local businesses, the City has not historically tracked the <br />share of larger projects going to San Leandro businesses. This can be particularly challenging <br />when local businesses serve as a subcontractor and do not have a direct contracting <br />relationship with the City. Consequently, it will be difficult to assess the impact of the program <br />with limited baseline data available. <br />Current Agency Policies <br />The current City policy for local inclusion is contained in the San Leandro Municipal Code <br />(Title 1, Chapter 6, Article 2, Section 225). <br />Legal Analysis <br />The proposed ordinance was prepared by the City Attorney based on policy guidelines from <br />the Local Inclusion Working Group and City staff. <br />Fiscal Impacts <br />The fiscal impact of the proposed ordinance cannot be estimated with precision. Based on the <br />rating incentive for local businesses of 10%, the ordinance has the potential to increase the <br />cost of City contracts by 10%, up to a maximum per contract increase of $50,000. Depending <br />on the number of contracts impacted in a given year, the cost could be substantial. <br />City of San Leandro Page 5 Printed on 12123/2013 <br />