How much can the maximum combined preferences for local and city businesses be capped at?

The maximum combined preferences for local and city businesses can be capped at $1 million. This cap is established to encourage contracting with local businesses and to support the economic growth within the community. By allowing this maximum preference level, the LADWP fosters a competitive environment while also ensuring that local enterprises have a fair opportunity to participate in utility contracts.

The preferences for local and city businesses are aimed at promoting regional economic development, job creation, and a stronger local economy. This cap ensures that while there is significant support for local businesses, the guidelines maintain a structure that respects the overall budgetary constraints and competitiveness of the utility procurement process.

Other options suggest higher caps that could lead to potential imbalances in how contracts are awarded, potentially impacting broader competition or limiting the diversity of suppliers. Hence, the $1 million cap strikes a balance between promoting local engagement and maintaining a fair procurement process.