HomeMy WebLinkAbout12-04 CC Ordinance ORDINANCE NO. 12-04
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TEMECULA ADDING CHAPTER 3.30 TO THE
TEMECULA MUNICIPAL CODE TO ESTABLISH A LOCAL
VENDOR PREFERENCE PROGRAM AND AMENDING
SECTIONS 3.28.020, 3.28.220, 3.28.260, AND 3.32.010 OF
THE TEMECULA MUNICIPAL CODE TO INTEGRATE THE
LOCAL VENDOR PREFERENCE POLICY INTO THE
CITY'S PURCHASING SYSTEM
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN
AS FOLLOWS:
Section 1: The City Council of the City of Temecula hereby adds Chapter 3.31
to the Temecula Municipal Code is amended to read:
Chapter 3.30 Local Vendor Preference Program
3.30.010 DEFINITIONS
A. "Local Vendor" means a vendor, contractor, or consultant who has a valid
physical business address located within the boundaries of the City of
Temecula, at least six months prior to bid or proposal opening date, from
which the vendor, contractor, or consultant operates or perForms business
on a day-to-day basis, and holds a valid business license issued by the
City of Temecula and designates, for sales tax purposes, the City of
Temecula as the point of sale for retail transactions within the City. Post
office boxes are not verifiable and shall not be used for the purpose of
establishing such physical address.
B. "Minor Public Project" means public projects described in Section 3.32.010
up to forty five thousand dollars ($45,000) may be performed by City
employees by force account, by negotiated contracts or by purchase order
C. "Solicitation" shall mean the City's process to obtain bids, quotes, or
proposals as provided in Chapters 3.28 and 3.32 for the purchase of
goods or services or Minor Public Projects.
3.30.020 FINDINGS
A. Annually, the City of Temecula spends a considerable amount purchasing
supplies, equipment, maintenance services, public projects, and
professional services. A substantial portion of the funds used to make
these purchases come from taxes and fees derived from local businesses.
R:/Ords 2012/Ords 12-04 1
B. The City Council has determined that funds generated in the community
should, to the extent possibfe, be placed back in the local economy.
Retaining local dollars within a community reduces economic export,
increases the financial productivity of taxpayer dollars and increases the
consumption of local goods and services while fostering a sustainable
community.
C. In working towards a sustainable economy, the City Council recognizes
that sustainable procurement policies are an important early step on the
City's path to a sustainable community. Leveraging the purchasing power
of the City to buy local products and services instead of products and
services from outside the City, strengthens the local economic activity and
employment as well as sets an example that helps foster and maintain a
vital economic community for future generations.
D. The City Council has determined that it is in the best interest of the City to
give a preference to Local Vendors in making such purchases whenever
the application of such a preference is reasonable in light of the dollar-
value received in relation to such expenditure.
E. The City Council further finds that this action is necessary to encourage,
promote, stimulate, preserve, and grow the local economy.
3.30.030 STATEMENT OF POLICY
A. It is the policy of the City to promote employment and business
opportunities for local residents and firms on all contracts and give
preference to local residents, workers, businesses, vendors, contractors,
and consultants to the extent consistent with the law and interest of the
public.
B. Local Vendors must otherwise normally qualify to receive the bid pursuant
to Chapters 3.28 and 3.32 of the City of Temecula Municipal Code and
other applicable law.
C. The provisions of this Chapter shall be construed and implemented in
accordance with applicable federal and state laws.
3.30.040 LOCAL VENDOR PREFERENCE IN PURCHASING SUPPLIES
AND EQUIPMENT
A. In the Solicitation of supplies and equipment, as provided in Chapter 3.28,
the City Council or the City Manager may give a preference pursuant to
this Chapter to Local Vendors in making such purchase or awarding such .
contract.
R:/Ords 2012/Ords 12-04 2
B. If the vendor that submits the lowest responsive bid or quote is not a Local
Vendor as defined herein, the lowest responsive bid or quote submitted by
a Local Vendor that is within five percent (5%) of the lowest bid or quote
may be deemed to be the lowest bidder. However, said Local Vendor
must elect to reduce its bid or quote to match the bid or quote of the
lowest bidder, in writing, within one (1) business day (excluding weekends
and holidays) of being notified of their status by the City.
C. If the lowest Local Vendor within five percent (5%) of the lowest bid or
quote does not elect to reduce its bid or quote to match the bid or quote of
the lowest bidder, then the next lowest Local Vendor shall be given the
opportunity to match the bid or quote of the lowest bidder as set forth
above, providing that this Local Vendor is also within five percent (5%) of
the lowest bid or quote that has been deemed responsive.
D. In order for a Local Vendor to be eligible to claim the preference, the Local
Vendor must request the preference in the response to the Solicitation and
provide a copy of its current business license issued by the City.
3.30.050 LOCAL VENDOR PREFERENCE IN SERVICES
A. In the Solicitation of contracts based on evaluation criteria which best
serves the needs of the City and provides the City with the highest quality
and cost effectiveness (such as services), as provided in this Title, the City
Council or the City Manager may give a preference pursuant to this
Chapter to Local Vendors in making such purchase or awarding such
contract.
B. The equivalent of a five percent (5%) preference will be added to final
evaluated score of each Local Vendor. If the five percent (5%) preference
causes the Local Vendor to have the best overall score, the Local Vendor
may be deemed the Vendor that best serves the needs of the City and
provides the City with the highest quality and cost effectiveness.
However, said Local Vendor must elect to reduce the price portion of its
bid, quote, or proposal to match the price portion of the lowest bidder, in
writing, within one (1) business day (excluding weekends and holidays) of
being notified of their status by the City.
C. If the Local Vendor does not elect to reduce the price portion of its bid,
quote, or proposal to match the price portion of the lowest bidder, then the
next lowest Local Vendor shall be given the opportunity to match the price
portion of the lowest bidder as set forth above, provided the five percent
(5%) preference causes said Local Vendor to have the best overall score,
and provided the Local Vendor is deemed the Vendor that best serves the
needs of the City and provides the City with the highest quality and cost
effectiveness.
R:/Ords 2012/Ords 12-04 3
D. In order for a Local Vendor to be eligible to claim the preference, the Local
Vendor must request the preference in the response to the Solicitation and
provide a copy of its current business license issued by the City.
E. The vendor, contractor, or consultant will also, to the extent legally
possible, solicit proposals for subcontractors and subcontractors for work
associated with the proposed contract from local firms as opportunities
occur and hire qualified local firms whenever feasible.
3.30.060 LOCAL VENDOR PREFERENCE IN MINOR PUBLIC WORKS
CONTRAC
A. Pursuant to the Public Contracts Code and Chapter 3.32, public projects
(i.e. public works construction) must be awarded to the lowest responsive,
responsible bidder with certain exceptions. Section 3.32.010 provides that
certain public projects up to forty five thousand dollars ($45,000) may be
performed by City employees by force account, by negotiated contracts or
by purchase order ("Minor Public Projects").
B. In the bidding of, or letting for procurement of Minor Public Projects, as
provided in Chapter 3.32, the City Council or the City Manager may give a
preference pursuant to this Chapter to Local Vendors in making such
purchase or awarding such contract.
C. If the vendor that submits the lowest responsive bid or quote is not a Local
Vendor as defined herein, the lowest responsive bid or quote submitted by
a Local Vendor that is within five percent (5%) of the lowest bid or quote
may be deemed to be the lowest bidder. However, said Local Vendor
must elect to reduce its bid or quote to match the bid or quote of the
lowest bidder, in writing, within one (1) business day (excluding weekends
and holidays) of being notified of their status by the City.
D. If the lowest Local Vendor within five percent (5%) of the lowest bid or
quote does not elect to reduce its bid or quote to match the bid or quote of
the lowest bidder, then the next lowest Local Vendor shall be given the
opportunity to match the bid or quote of the lowest bidder as set forth
above, providing that this Local Vendor is also within five percent (5%) of
the lowest bid or quote that has been deemed responsive.
E. In order for a Local Vendor to be eligible to claim the preference, the Local
Vendor must request the preference in the Solicitation and provide a copy
of its current business license issued by the City.
R:/Ords 2012/Ords 12-04 4
F. The Local Vendor selected for the work shall use good faith efforts to sub-
contract the purchase of supplies, equipment, and services to Local
Vendors. The Local Vendor shall submit evidence of such good faith
efforts at the time of submission of bids. Good faith efforts may be
evaluated by placing advertisements inviting proposals in local �
newspapers, sending request for proposals to local sub-contractors, or by
demonstrating that no local subcontractors are qualified to perForm the
work or provide the supplies, equipment, or services. Any notice inviting
bids which may require the use of sub-contractors shall include notification
of this subsection. The City Council or City Manager may reject as non-
responsive the bid of any contractor proposing to use sub-contractors that
fail to comply with the requirements of this subsection.
3.30.070 EXCEPTIONS TO LOCAL VENDOR PREFERENCE POLICY
The local preference set forth in this Chapter shall not apply to the following
purchases or contracts.
A. Supplies, equipment, and services provided under a cooperative
� purchasing agreement.
B. Purchases or contracts which are funded in whole or in part by a
governmental entity and the laws, regulations, or policies governing such
funding prohibit application of a local preference.
C. Purchases made or contracts let under emergency or non-competitive
situations.
D. Purchases with an estimated cost of $5,000.00 or less.
E. Application of the Local Vendor preference to a particular purchase,
contract, or category or contracts for which the City Council is the
awarding authority may be waived at the City Council's discretion.
3.30.080 QUALITY AND FITNESS
The local preference set forth in this Chapter 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 Chapter 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 or this Title.
R:/Ords 2012/Ords 12-04 5
3.30.090 APPLICATION
The Local Vendor Preference provided in this Section shall apply to new
contracts for supplies, equipment, and services first solicited on or after July 12,
2012. This Section shall be implemented in a manner consistent with otherwise
applicable provisions of this Title.
3.30.100 VERIFICATION OF LOCAL VENDOR PREFERENCE
ELIGIBILITY
Any vendor, contractor, or consultant claiming to be a Local Vendor shall so
certify in the bid, in writing to the City Manager. The City Manager shall not be
required to verify the accuracy or any such certifications, and shall have sole
discretion to determine if a vendor, contractor, or consultant meets the definition
of "Local Vendor". The decision of the City Manager declaring that any person or
business is not a Local Vendor shall be subject to appeal pursuant to the
provisions of Section 3.28.350 with respect to purchases of supplies, equipment
or services and Section 3.32.060 with respect to Minor Public Projects.
3.30.110 ENFORCEMENT
A. The information furnished by each bidder requesting a Local Vendor
Preference shall be submitted to the Purchasing Officer under penalty of
perjury.
B. No person or business shall knowingly or fraudulently obtain, retain,
attempt to obtain or retain, or aid another in fraudulently obtaining or
retaining or attempting to obtain or retain certification as a Local Vendor
for the purpose of this Section.
C. No person or business shall willfully and knowingly make a false
statement, whether by affidavit, report, or other representation, to a City
official or employee for the purpose of influencing the certification or denial
of certification of any entity as a Local Vendor.
D. A business which has obtained City certification as a Local Vendor by
reason of having furnished incorrect supporting information or by reason
of having withheld information, and which knew or should have known, the
information furnished was incorrect or the information withheld was
relevant to its request for certification, and which by reason of such
certification has been awarded a contract to which it would not otherwise
have been entitled, shall:
1. Pay the City any difference within the contract amount and what the
City's costs would have been if the contract had been properly
awarded.
R:/Ords 2012/Ords 12-04 6
2. In addition to the amount described in sub section (i) above be
assessed a penalty in an amount of not more than ten percent
(10%) of the amount of the contract involved; and
3. Be ineligible to transact any business with the City for a period of
not less than three (3) months and not more than twenty-four (24)
months as determined in the sole discretion of the City Manager.
The City Manager shall also have the right to terminate all or any
part of any contract entered into with such person or business.
E. The penalties identified in (D) above shall also apply to any business that
has previously obtained proper certification and, as a result of a change in
its status would no longer be eligible for certification, fails to notify the City
of this information prior to responding to a Solicitation or accepting a
contract award.
3.30.120 PROMULGATION OF ADMINISTRATIVE RULES
A. The City Manager is authorized to adopt administrative rules supplemental
to the provisions of this Chapter as necessary or appropriate to implement
the provisions of this Chapter.
B. The provisions of this section and the rules adopted by the City Manager
shall be provided to potential bidders, vendors, and contractors to the
widest extent practicable."
Section 2. The City Council of the City of Temecula hereby amends Section
3.28. 020, Scope of Chapter, of the Temecula Municipal Code to read as follows:
The procedures established by this chapter shall apply only
to the purchase of supplies, equipment and services, and
shall not apply to public projects as defined in Section 20161
of the California Public Contracts Code. Purchases made
pursuant to this Chapter shall also be subject to the
provisions of Chapter 3.30, The Local Vendor Preference
Program.
Section 3: The City Council of the City of Temecula hereby amends Section
3.28. 220, Award of Formal Bid Contracts, of the Temecula Municipal Code to read as
follows:
R:/Ords 2012/Ords 12-04 7
Except as otherwise provided in this chapter, formal bid
contracts shall be awarded by the city council to the lowest
responsible bidder, subject to the provisions of Chapter 3.30,
Local Vendor Preference Program. The determination of
lowest responsible bidder shall be at the discretion of the city
council pursuant to findings and recommendations
presented by the purchasing agent at the time of award of
contract.
Section 4: The City Council of the City of Temecula hereby amends Section
3.28. 260, Minimum Number of Informal Bids, of the Temecula Municipal Code to read
as follows:
Open market purchases shall, wherever possible, be based
on at least three informal bids, and shall be awarded to the '
bidder offering the most advantageous bid to the city after
consideration of price, quality, durability, servicing, delivery
time, standardization and other factors, subject to the
provisions of Chapter 3.30, Local Vendor Preference
Program.
Section 5: The City Council of the City of Temecula hereby amends Section
3.32. 010, Scope of Chapter, of the Temecula Municipal Code to read as follows:
The provisions of this chapter shall apply to the construction
on public projects not more than one hundred seventy-five
thousand dollars ($175,000). Public projects of forty-five
thousand dollars ($45,000) or less may be performed by city
employees by force account, by negotiated contract or by
purchase order, subject to the provisions of Chapter 3.30,
Loca� Vendor Preference Program. Public projects of one
hundred seventy-five thousand dollars ($175,000) or less
may be let to contract by informal procedures as set forth in
this chapter.
Section 6. If any section or provision of this Ordinance is for any reason held
to be invalid or unconstitutional by any court or competent jurisdiction, or contravened
by reason of any preemptive legislation, the remaining sections and/or provisions of this
Ordinance shall remain valid. The City Council hereby declares that it would have
adopted this Ordinance, and each section or provision thereof, regardless of the fact
that any one or more section(s) or provision(s) may be declared invalid or
unconstitutional or contravened via legislation.
R:/Ords 2012/Ords 12-04 8
Section 7. The Mayor shall sign and the City Clerk shall certify to the passage
and adoption of this Ordinance and shall cause the same, or the summary thereof, to be
published and posted pursuant to the provisions of law and this Ordinance shall take
effect thirty (30) days after passage.
PASSED, APPROVED, AND ADOPTED b the City C,ouncil of the City of
Temecula this 12 day of June, 2012. , j —
�
�
� ck Washington, Mayor
ATTEST:
�---
,
� .
Susan�ll/. Jon s, MMC
-Glerk
[S EAL]
R:/Ords 2012/Ords 12-04 9
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that
the foregoing Ordinance No. 12-04 was duly introduced and placed upon its first reading
at a meeting of the City Council of the City of Temecula on the 22" day of May, 2012, and
that thereafter, said Ordinance was duly adopted by the City Council of the City of
Temecula at a meeting thereof held on the 12 day of June, 2012, the following vote:
AYES: 5 COUNCIL MEMBERS: Comerchero, Edwards, Naggar, Roberts,
Washington
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBERS: None
_ � -
Sus n �W. Jones, MMC
City Clerk
R:/Ords 2012/Ords 12-04 10