Photo: Getty Images
LOS ANGELES (CNS) - The Los Angeles City Council voted today to begin the process of adding a measure to the June 7 election ballot that, if approved, would aim to give preference for city contracts to businesses located in the city of Los Angeles.
The motion, which was approved 13-0, was introduced by Councilmen Paul Koretz, Bob Blumenfield and Marqueece Harris-Dawson. It instructs the city attorney to prepare documents for a measure that would add ``city of Los Angeles'' to the City Charter's definition of local, allowing the city to give contracting bid preferences to businesses located with the city of Los Angeles.
The charter's current definition of ``local'' includes businesses in Los Angeles County and California.
Koretz said data from his office and the Bureau of Contract Administration shows that only 7% of local business enterprise awards were received by businesses located in the city, and only one quarter of 1% of the contracting dollars went to businesses in the city.
``Labor costs, rent, utilities, insurance, sales taxes, businesses taxes are often higher (in the city) than those outside the city limits and can place businesses located within the city of L.A. at a competitive disadvantage,'' Koretz said before the vote.
He added that giving preference to city businesses could spur economic growth for Los Angeles and generate more tax revenue for the city.
``We ask a lot of our businesses in the city of L.A., we hold them to higher standards than the cities that surround us,'' Councilwoman Nithya Raman said speaking in support of the motion. ``We should also make it as easy for them to get our city dollars as possible.''