SANTA ANA – Orange County’s second-largest city could become the first in the county to officially support worker cooperatives – businesses owned and operated solely by their workers – if council members on Tuesday, Aug. 1, adopt a corresponding resolution.

Santa Ana “has the desire” to become the first supporter in the county and “small businesses are the foundation of the city,” states the resolution up for consideration supporting the development and growth of worker cooperatives.

Cooperatives provide local goods and services, stable jobs for residents, and new economic opportunities for lower-income workers, according to a city staff report. Profits are shared among the owners and each worker has an equal vote in the direction of the business.

The staff report cites Environmental Systems Research Institute data indicating Santa Ana’s median income is $54,640, compared to Orange County’s median of $81,194.

“Lower wage workers typically cannot afford to quit their jobs and become small business entrepreneurs, but could become co-owners through a cooperative conversion,” the city staff report states. “By promoting and supporting worker cooperatives, Santa Ana is creating a key job retention strategy for local community wealth building.”

Several worker cooperatives already exist in Santa Ana, including Cooperativa Tierra y Dignidad, which provides landscaping and catering services; and Manos Unidas Creando Arte, which sells crafts handmade from recycled materials.

“I’m definitely in support of the concept,” said Councilman Jose Solorio, who earlier in July presented a certificate of recognition to Manos Unidas Creando Arte. “I’ll have some suggestions on other types of entrepreneurial opportunities we should be promoting — for example, incubators for small businesses.”

If approved, the resolution would direct city staff to preview city procurement policies and recommend incentives for cooperatives; review the business license fee structure to consider reduced rates for cooperatives; provide recommendations to include funding for cooperatives; and possibly develop a local worker cooperative business ordinance.

“We have some great examples in Santa Ana,” Mayor Pro Tem Michele Martinez said of existing cooperatives, “and we want to build on these successes.”