A. Statement of policy and granting of preference. In order to promote the economic health of the city and to encourage local participation in the procurement of goods, supplies, equipment and services by the city, preference shall be granted to each responsible local vendor by an amount equal to five percent (5%) of the total price bid by each of the responsible local vendors.
A bid or proposal from a local vendor for goods, supplies, equipment or services will be tabulated as if it were five percent (5%) below the total figure actually set forth in the bid or proposal. The local vendor preference shall not cumulatively be greater than $50,000.
B. Definition and verification of local vendor.
1. Local vendor means and refers to a seller, supplier, contractor of supplies and equipment or a service provider that:
a) Has a "fixed place of business" within the city limits. "Fixed place of business" shall mean premises occupied for the particular purpose of conducting a business therein and regularly kept open during normal business hours with a competent person in attendance for the purpose of attending to such business;
b) Has a current business license issued by the city;
c) Has paid all business assessments and fees imposed by the city; and
d) Began doing business within the city at least one year prior to the date the city invites bids or quotations for the relevant purchase to which the local vendor is responding.
2. Responsible local vendor means a local vendor who:
a) Is not barred from government contracts for prior misconduct;
b) Has not engaged in conduct that would be considered non-responsible under the bidding provisions of the California Public Contract Code and the authorities interpreting that code;
c) Has not had performance issues with prior contracts or is not in active litigation with the city;
d) Has the necessary materials, personnel and equipment to perform the work or services at issue; and
e) Complies with all city bid procedures.
3. Verification of local vendor. Any vendor claiming to be a local vendor shall so certify in the bid or proposal. The City Manager shall have the final discretion to determine if a vendor meets the definition of local vendor set forth above.
C. Exceptions to local vendor preference policy. Notwithstanding anything to the contrary stated in this section, the local vendor preference granted by this section shall not apply to the following purchases or contracts:
1. Professional services;
2. Procurement of goods, supplies, equipment or services with an estimated cost of five thousand ($5,000.00) dollars or less;
3. Emergency purchases as defined in the California Public Contract Code or local ordinance;
4. Sole source purchases made by the city;
5. Procurement of goods, supplies, equipment or services which are funded in whole or in part by a governmental entity and the laws, regulations, and policies governing such funding prohibit application of a local preference;
6. Where no bids have been received by the city following bid announcements;
7. Procurement of goods, supplies, equipment or services with an estimated cost of one million ($1,000,000.00) dollars or greater; and
8. In addition, in its sole discretion the city council shall have the authority to waive application of these local vendor preference provisions in connection with contracts over which the city council has contracting or approval authority.
D. Quality and fitness. The local preference set forth in this section shall in no way be construed to inhibit, limit or restrict the right and obligation of the city council and the city manager to compare quality and fitness for use of supplies, equipment, and services proposed for purchase and compare the qualifications, character, responsibility, and fitness of all persons, firms, or corporations submitting bids or proposals. In addition, the preferences set forth in this section shall in no way be construed to prohibit the right of the city council or the city manager from giving any other preference permitted by law. Notwithstanding the provisions of subsection C.1 above, if the city manager finds a local professional services vendor is equally responsive in meeting the needs of the city, including, but not limited to, price, qualifications, character, responsibility and fitness, the preference may be given to a local professional services vendor, recognizing the value of local knowledge and expertise.
E. Application. The local vendor preference provided in this section shall apply to new contracts and purchases for goods, supplies, equipment and materials first solicited on or after 30 days after the adoption of this section.
F. Findings. Whenever soliciting proposals for the provision of goods, supplies, equipment or services governed by this section, the findings shall be included in the notification to all bidders.
(Ord. 2506)