Strictly Business | May 27, 2009

Fostering Long Beach Jobs

 

There are plenty of ways in which Long Beach can become more business-friendly, and this Chamber has not been shy about pointing out where and how improvements can be made.

 

Mayor Bob Foster's latest effort to increase relations with the Long Beach business community and to help increase Long Beach-based jobs deserves a round of applause.


Back in 2005, the Chamber successfully convinced city staff and elected officials to increase an incentive from 2% to 5% that is offered to Long Beach-based businesses who bid on city contracts. What that means, essentially, is that Long Beach-based businesses who bid on City contracts
for furnishing  materials, supplies, and non-professional services can offer bids as much as 5% higher than competing bidders based in other cities, and still win the job. This current 5% incentive or preference keeps jobs and business within city limits, and encourages partnership between the city and business community.

 

It was a great step in the right direction then, and now Mayor Foster's proposal calls for an increase in that preference from 5% to 10% for Long Beach-based businesses that enter bids, further leveling the playing field and creating more opportunities for Long Beach businesses to secure City contracts.

This is significant because it shows that the City is willing to improve relations with the Long Beach business community, even if it means paying up to 10% more than they would need to if the job was given to a business from another city. However, some may say that paying more in these tough times does not make sense.
The Chamber believes that any investment to keep jobs local is an investment that will pay higher dividends and that is exactly what our local economy needs.

 

Back in July 2005, the Grunion Gazette said: "We are happy because this particular program is an investment. While the city may end up paying a bit more for some jobs, it will keep a lot more city money inside Long Beach."

 

Back in November 2002, (Former) Mayor Beverly O’Neill, (Former) Vice Mayor Frank Colonna, (Former) Press-Telegram Publisher Ian Lamont, and Long Beach Business Journal Publisher George Economides all agreed: "Long Beach businesses are the backbone of our business community. Assuring the economic stability of Long Beach businesses affects you as a citizen. Giving Long Beach businesses an advantage when competing for Long Beach City contracts is vital to increasing the number of jobs in our city."

When the rate was increased to 5% in 2005, the Chamber stood strongly in support. I wrote back then:

“The Chamber of Commerce, which played a critical role in getting the preferential treatment in place to begin with, now has promised to help make sure it is used. It’s up to the individual business owners to take advantage, as well.”

The same holds true today.

 

After years of practices making it difficult for businesses to operate within city limits, our local government is acknowledging that changes must be made. Mayor Foster will bring the proposed increase to the preference policy to the City Council for their consideration on June 2.

 

We need your help to make sure the Council makes the right choice.

 

Click here to submit your letter of support!

 

We have been presented with an opportunity to jump-start local businesses, arming them with a potential 10% head start over competing bidders from other cities. It’s a step in the right direction for the community, for our residents, and for the future of the city...

...and that’s Strictly Business.
 

 

Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce

Strictly Business is a weekly commentary by Randy Gordon, President and CEO

of the Long Beach Area Chamber of Commerce. For more information on representing your interests at all levels of government, log on to LongBeachAdvocacy.biz.