TITLE
Recommendation to request City Attorney to amend the Long Beach Municipal Code to permanently establish the Small Business Enterprise (SBE) program and make further changes as directed by the City Council. (Citywide)
DISCUSSION
In April 2009, the City adopted a Small Business Enterprise (SBE) recruitment pilot program for the Departments of Public Works, Parks, Recreation and Marine, and Long Beach Gas and Oil. The program went into effect May 13, 2009 and requested the pilot Departments to use best efforts to meet a 20 percent SBE participation rate for eligible procurement, professional and contracting services. The pilot program was applicable to certain contracts and certain funding sources as outlined in Exhibit A.
In addition, the program was tiered to accommodate and encourage participation from a variety of small businesses in local contracting opportunities, particularly businesses located in the City. The program was structured to offer certification on three levels:
Small Business Enterprise (SBE)
· The City utilizes the Federal U.S. Small Business Administration (SBA) size standards for eligibility.
Very Small Business Enterprise (VSBE)
· The City utilizes the State of California’s micro-business designation for VSBE eligibility.
Local Small Business Enterprise (LSBE)
· The business has to have a current, valid business license from the City and seller’s permit showing a place of business within City limits and meet SBE requirements.
Please refer to Attachment A that highlights the ordinance requirements and the program’s applicability.
As a result of this pilot program, there are currently 1,450 SBEs registered and certified in the City’s SBE database; 235 are Local Small Business Enterprises (LSBEs), representing 16 percent of all SBE’s, and 147 are Very Small Business Enterprises (VSBEs), representing 10 percent registration rate. Small Business Enterprise certification can be obtained through the City’s bidder’s database regis...
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