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December 24, 2013 <br />Memorandum <br />To: Mayor Stephen S. Cassidy and San Leandro City Council, & Local Inclusion Policy <br />Development Working Group <br />From: David P. Johnson, President & CEO, San Leandro Chamber of Commerce <br />Subject: Proposed Local Inclusion Policy in Context with Other Policies <br />Thank you to the Mayor and City Council for the privilege of being tasked to work to establish the <br />proposed policy; to Chair Surlene Grant and members of the Working Group for their leadership <br />and participation, advice and counsel in establishing the proposed Local Inclusion Policy; and to <br />the City of San Leandro's Jeff Kay and Richard Pio Roda for the hard work of creating and <br />amending the document as the Group moved through the process of developing the policy. <br />The policy document will be brought to the City Council at its January 6, 2014, 7 pm <br />meeting for review and adoption. All are encouraged to attend and participate in the City <br />Council deliberations. <br />In summary, the policy is built around a system of management and compliance by City staff, <br />with oversight by the City Council and the community. At its core, the policy offers a 10% <br />incentive (5% if a joint venture) for San Leandro companies when they bid for qualifying City <br />work. Examples for comparison: BART - 5%; City of Richmond - 5%; City of San Francisco - 10% <br />(plus a micro set-aside program); City of Oakland - 2-5%; City of Hayward - no program. <br />The proposed local participation goal is 25%. As we know, each community is unique in many <br />ways, so that, for example local business participation goals range froml0-25% in Richmond, <br />25% in San Francisco (the Mayor may change the goal annually) to as high as 60% being <br />proposed for Alameda County. In late 2012, the City of Oakland increased its goal from 20% to <br />50% based on the success of their "Local and Small Local Business Enterprise (L/SLBE)" <br />program. <br />The proposed San Leandro policy does not address local hiring, nor does it address local <br />participation in development projects that are subject to the City's entitlement process. These <br />policy matters can and will be addressed in the coming months by the Working Group, or others, <br />should the City so designate. <br />The proposed San Leandro policy is based on the best practices gleaned from policies by several <br />Bay Area entities. Several members of the Working Group are experienced in all aspects of these <br />policies, and some members even helped with their implementation and oversight. Some of these <br />programs are listed below, and for reference, including links to the programs, or actual <br />ordinances as with the City of Richmond. <br />