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(a) Whenever any department, including proprietary department, board or officer, proposes to amend a contract to extend the term of the agreement and the resulting amended contract would be subject to Council approval due to the length of its term, or proposes to replace an existing contractor with a new contractor and the new agreement would be subject to Council approval due to the length of its term, the department, including proprietary department, board or officer, with responsibility for administration of the contract, shall submit a report to the City Council, with a copy to the Director of the Office of Administrative and Research Services, as soon as possible after the department, board or officer, including proprietary department, is aware of the need for a long term contract but in no event less than twelve months prior to expiration of the contract. The report shall include information about the service to be contracted; name of the current contractor; expiration date of the contract; and general description of the plan for renewal or replacement of the contractor, including planned time lines.
(b) Commencing July 1, 2000, the Office of Administrative and Research Services, shall at the beginning of each calendar year, the beginning of each fiscal year, and more often if deemed necessary by the Director of the Office of Administrative and Research Services, compile a listing of all reports received from each department, board or officer, on long term contracts covered by this ordinance which will be subject to renewal during the ensuing calendar year, and provide it to the City Council.
SECTION HISTORY
Article and Section Added by Ord. No. 173,178, Eff. 5-14-00.
Nothing in this article shall be deemed or construed as preventing the City Council, or a Board of Commissioners in the case of those departments having control of their own revenues and funds, from entering into contracts for the performance of work when it is determined by the City Council or the Board of Commissioners that such work can be performed more economically or feasibly by independent contractors than by City employees. The authority of the City Council set forth in this section may be delegated to departments and officers of the City under such rules and procedures as the City Council may prescribe. Nothing in this section shall limit the application of Sections 370 to 378 of the City Charter relating to contracts and competitive bidding for contracts.
SECTION HISTORY
Based on Charter Section 126.
Amended by: Ord. No. 154,252, Eff. 9-11-80; Ord. No. 173,285, Eff. 6-26-00, Oper. 7-1-00.
(Title amended by Ord. No. 187,121, Eff. 8-7-21.)
Section
10.25 Findings and Statement of Policy.
10.25.1 Definitions.
10.25.2 Eligibility Criteria for Preferences.
10.25.3 Application of Preference to Bids and Proposals for Services and Goods.
10.25.4 Awarding Preferences – Contracts up to $150,000.
10.25.5 Awarding Preferences – Contracts over $150,000.
10.25.6 Failure to Comply with this Article and the Rules and Procedures, Remedies.
10.25.7 Exceptions and Waiver.
10.25.8 Administration.
10.25.9 Timing of Application.
10.25.10 Severability.
Pursuant to City Charter Sections 371 and 372, the City Council hereby adopts a Local Business Preference Program and makes the following findings. The City has a proprietary interest in leveraging, to the greatest extent possible, the millions of dollars it spends yearly contracting with private firms for goods, equipment, and services to and for the benefit of the City and its residents. The policy of the City is to reduce unemployment, stimulate the expansion and retention of local jobs, and create sustainable local economic development. Significant benefits are associated with a Local Business Preference Program. These benefits include the creation of local jobs, which leads to increased consumer spending and a robust local economy. Preference programs in other jurisdictions have been successful where the business conditions approximate the conditions currently existing in the Los Angeles area. For example, preference programs work best where unemployment is high. As of February 2021, the unemployment rate in the City and County of Los Angeles was calculated at 10.9%, compared to 8.5% in California and 6.2% nationally.
Historically, many of the larger cities within the County of Los Angeles experience labor costs that are among the highest in the nation. Los Angeles area labor costs are higher than the competing neighboring cities and counties. The state and local minimum wage standards are higher when compared to other cities and states. City contractors are required to provide employees working on City contracts a higher living wage rate. Business space in the Los Angeles metropolitan area is more costly than comparable space in other cities and counties. All corporations in California are subject to a corporate tax that is among the highest in the county. On a national level, Los Angeles is one of the ten most expensive places to do business as a result of local labor costs and business costs, fees and taxes. These conditions create an expensive climate in which local businesses must compete against firms with lower labor and business costs from neighboring cities, counties, and states.
This narrowly tailored Local Business Preference Program is intended to encourage small and large businesses to compete for City contracting opportunities, establish and maintain local operations, and discourage existing local businesses from relocating to different, less expensive areas outside the City or to other states. Given that the City has limited financial resources available for social and workforce development services, this Local Business Preference Program provides a financially feasible way for the City to address the significant need to help people move away from chronic unemployment and into employment and economic self-sufficiency.
Many residents of Los Angeles County have been out of the workforce for an extended period of time and face considerable barriers when trying to re-enter the mainstream workforce. For the majority of this hardest-to-employ population, these barriers can be overcome by placement in a transitional job through which they can develop the job skills necessary to compete and succeed in a mainstream work environment. A transitional job provides an opportunity to earn wages while learning skills that lead to self-sufficiency and permanent employment.
Currently, most transitional jobs for the hardest-to-employ population are provided by business entities with transitional employment programs. Because these businesses have to pay for higher overhead costs, including supervision, counseling, and training of a transitional workforce, they are at a competitive disadvantage and obtain few City contracts. Consequently, the demand for transitional jobs for the hardest-to-employ is not met.
Along with providing a contracting preference for local and local small businesses in Los Angeles County, extending the preference to business entities working with the hardest-to-employ populations will allow the City to expand the number of transitional job opportunities available to the long-term unemployed in Los Angeles.
SECTION HISTORY
Added by Ord. No. 153,662, Eff. 6-1-80.
Amended by: Ord. No. 157,595, Eff. 5-15-83, Ord. No. 169,059, Eff. 10-24-93; Ord. No. 173,186, Eff. 5-22-00; Subsec. (c), Ord. No. 174,048, Eff. 8-5-01; Title and Section, Ord. No. 187,121, Eff. 8-7-21.
(a) “Awarding Authority” means the governing body, board, officer, or employee of the City authorized to award a Contract and includes a department that has control of its own funds if the department adopts policies consistent with the provisions of this article.
(c) “Bidder” means a Person who submits a Bid to the City.
(d) “Broker” means a manufacturer’s representative, packager, or other Person who arranges or expedites a transaction of equipment, goods, or materials that are manufactured in the County of Los Angeles if certified as a Local Business, or in the City of Los Angeles if certified as a City Business.
(e) “City” means the City of Los Angeles.
(f) “City Business” means a Local Business that is also certified by the DAA as a City Business.
(g) “Contract” means a written agreement for the purchase of equipment, goods, or materials, or the performance of any work or services by or for the benefit of the City or its residents.
(h) “Contractor” means any Person who enters into a Contract with the City.
(i) “Dealer” or “Supplier” means any Person who owns, operates, or maintains a store, warehouse, or other establishment in the County of Los Angeles if certified as a Local Business, or in the City of Los Angeles if certified as a City Business, in which the equipment, goods, or materials of the general character described in the Bid or Proposal specifications and required under the Contract are regularly sold or leased to the public from its own inventory or otherwise procured in the usual course of its business. A “Dealer” or “Supplier” does not include a packager, broker, manufacturer’s representative, or other Person who arranges or expedites a transaction without taking ownership of the finished or assembled equipment, goods or materials prior to the sale or lease to the City.
(j) “Designated Administrative Agency (DAA)” means the Department of Public Works, Bureau of Contract Administration.
(k) “Local Business” means a Person certified by the DAA as a Local Business.
(l) “Local Small Business” means a Person certified by the DAA as a Local Small Business.
(m) “Local Transitional Employer” means a Person certified by the DAA as a Local Transitional Employer.
(n) “Person” means any individual, business, proprietorship, partnership, joint venture, corporation, limited liability company, trust, association, organization, or other entity that may enter a Contract.
(p) “Proposer” means any Person who submits a Proposal to the City.
(q) “Subcontractor” means any Person awarded a subcontract by a Contractor.
(r) “Supportive Services” include, but are not limited to, counseling services, individual case management, pre-employment job readiness training, daily monitoring of participants while on the job, provision of competitive employment opportunities, and assistance in applying for, obtaining, and maintaining competitive employment.
(s) “Transitional Job” means short-term, wage- paying employment that combines real work, skill development, and Supportive Services to help participants overcome barriers to employment and transition to competitive employment.
SECTION HISTORY
Added by Ord. No. 187,121, Eff. 8-7-21.
Amended by: Subsec. (f) added and Subsecs. (d) and (i) amended, Ord. No. 188,147, Eff. 3-15-24.
To be eligible for any preference under this article, a Bidder or Proposer must be certified and approved by the DAA, pursuant to its rules and procedures, as a Local Business, a City Business, a Local Small Business or a Local Transitional Employer.
SECTION HISTORY
Added by Ord. No. 187,121, Eff. 8-7-21.
Amended by: Ord. No. 188,147, Eff. 3-15-24.
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