Salinas Californian, November 12, 2008 - The concept behind it is a simple one and Salinas city officials and business leaders are hoping it will go a long way to help stimulate the local economy.
At an 11 a.m. press conference today, Mayor Dennis Donohue will unveil the latest effort to boost the local economy - the Salinas "Buy Local" Program.
The event will be held at Salinas Toyota in the Salinas Auto Mall, 700 Auto Center Circle.
"What we're trying to do is to raise businesses' and consumers' awareness on how their buying patterns affect the local city budget," said Tiffany M. DiTullio, president and chief executive officer of the Salinas Valley Chamber of Commerce. '"Buy local' means buy in the community in which you live in. Any business located within the city of Salinas is a local business."
Because the city gets to keep the revenue from the sales tax, consumers purchasing from local stores - be it a national chain such as Target or Wal-Mart or a mom-and-pop store - are contributing to the local budget. DiTullio said this benefits the residents in terms of the city's ability to provide such services as libraries and public safety.
Moreover, she said, the increase in revenue received by local businesses also translates into a higher employment rate.
An idea to encourage local businesses to increase commerce with each other was formulated in January, DiTullio said, and the program quickly expanded to include the city. In September, the city passed an amendment to an ordinance providing for a buy-local program which went into effect on Oct. 9.
With the program, similar to one adopted by Monterey County, local suppliers with business licenses are given the right of first refusal should their bids for a contract be within 10 percent of a local bid. Additionally, the program only applies to purchases of supplies, equipment, nonprofessional services of more than $5,000 and bids that are competitive. The program does not apply to professional service contracts or construction bids.
The program is not about getting people to spend more during tough economic times, Donohue said. It is more to urge the community to be more conscientious and to think locally in their purchasing habits.
"The precedent (today) is a much broader emphasis on the entire community supporting the effort," he said. "(It is an) initiative on raising community awareness on keeping dollars home. Sales taxes are a major thing in local budgets."
With 20 percent of the city's budget coming from sales tax revenues generated by vehicle purchases, car dealerships are encouraged that the program may help boost their struggling industry.
Sue Jamiesson, owner of Salinas Toyota-Scion, said sales for the dealership have dropped 30 percent compared to the previous year.
"Buying means keeping people employed and (the program is) real important in keeping Salinas residents employed," Jamiesson said. "If everybody would buy cars locally, it would save businesses from going out of business."
In the coming months, DiTullio said, the Chamber of Commerce plans to expand the program by educating local businesses about dispelling stereotypes that may discourage consumers from buying locally. In March, she said, they will introduce "Business 101," a presentation on the basics of providing good business.
"There are people who genuinely believe stores in Salinas are unsafe, unclean and have no customer service," DiTullio said. "Each of those stereotypes are ones we can change ... and as store owners, they can benefit from the program by making sure their stores are clean and their employees are helpful."
Contact Sunita Vijayan at svijayan@thecalifornian.com.
