http://www.davidmihm.com/local-search-ranking-factors.shtml This is an excellent break down of the factors that go in to local search. David Mihm is also on the SEOmoz website so if you need an expert in the field you can contact him.
As you can see from the article there are at least 58 positive indicators and 11 negative indicators that all influence your localized ranks, being a combination of localized content and regular ranking factors. Hopefully by scanning through this article you'll be given several ideas of where you can improve your results.
