HomeMy WebLinkAboutHuntington Beach Municipal Code - 2015-11-16 (2)Dept ID FN 15-018 Page 1 of 3
Meeting Date 11/16/2015
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CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 11/16/2015
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A Wilson, City Manager
PREPARED BY: Lori Ann Farrell Harrison, Director of Finance
SUBJECT: Approve for Introduction Ordinance No 4076 amending the Huntington Beach
Municipal Code (HBMC) to remove the Cap on the Five Percent Local Business
Preference
Statement of Issue
City Council authorization is requested to approve an Ordinance amending the Huntington Beach
Municipal Code Section 3 02 180, "Local Business Preference," to remove the existing $100,000
cap on the five percent preference in the evaluation of bids or proposals for the procurement of
goods and services, to allow for greater opportunities to partner with and promote local businesses
Financial Impact
By enhancing opportunities to partner with Huntington Beach -based businesses in the procurement
of goods and services, this action may assist in increasing the overall success of local businesses
thereby further stimulating the local economy
Recommended Action
Approve for introduction Ordinance 4076, "An Ordinance of the City of Huntington Beach Amending
Chapter 3 02 of the Huntington Beach Municipal Code Relating to Purchases of Goods and
Services," removing the cap on the five percent local vendor preference in the evaluation of bids or
proposals for the procurement of goods and services
Alternative Action(s)
Do not approve for introduction the Ordinance and maintain the existing $100,000 cap on the five
percent local business preference resulting in a $5,000 maximum benefit to local vendors
competing for City business
Analysis
The City of Huntington Beach annually procures supplies, materials, and equipment, and enters
into contractual and professional services agreements The dollars used in making these
purchases are derived in large measure from taxes and fees generated by local residents and
businesses The City Council has determined that funds generated in the community should, to the
greatest extent possible, be reinvested in the backbone of the local economy Therefore, the City
Council has determined that it is in the best interest of the City to give a preference to Local
Businesses in making such purchases, whenever the application of such a preference is
reasonable in light of the dollar -value received in relation to such expenditures
"Local Business" means a vendor, contractor or consultant who has a valid physical business
address located within the City of Huntington Beach, at least six months prior to bid or proposal
HB -451- Item 20. - I
Dept ID FN 15-018 Page 2 of 3
Meeting Date 1111612015
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 with the City of Huntington Beach
The City of Huntington Beach's Purchasing Division currently gives a five percent local preference
to Huntington Beach -based qualified vendors that submit bids or proposals for the procurement of
goods or services, up to $100,000 (with a maximum benefit of $5,000) Staff recommends
removing the $100,000 threshold (i e a maximum benefit cap of $5,000), in order to increase local
vendor participation
Local Preference in Purchasing
Currently, in the bidding of or letting for procurement of supplies, materials, equipment, and
contractual services, the Purchasing Division may give a preference to Local Businesses in making
such a purchase or awarding such contract in an amount not -to -exceed five percent of the Local
Bid total bid price or $5,000, whichever amount is lower (capping the maximum bid amount of
$100,000) This percentage applies to bids for commodities only It is recommended that the cap
of $5,000 or threshold of $100,000 be removed, allowing for greater flexibility in the awarding of
contracts to Local Businesses at a potentially higher level, particularly for larger procurements
If the bids submitted are identical, the local business with the lowest bid will be selected Local
businesses spend a greater amount in the local economy than businesses from other areas
Professional Services
There are no changes to be made in the evaluation of professional services Local vendors will
continue to be awarded five additional points on a 100 point scale for experience with the local
area
Exclusions
The following contracts are exempt and would continue to be exempt from the provisions of the
local vendor ordinance
1 Public Works contracts under the Public Contracting Code,
2 Grant Funded contracts or purchases,
3 Emergency procurements,
4 Sole source contracts, and,
5 Purchases made under a cooperative purchasing agreement
Conclusion
Increasing the local vendor preference would continue to demonstrate the City's commitment to
local businesses and growing the local economy Strategies that encourage people to buy locally
are an important component of a community's economic sustainability Retaining local dollars
within a community reduces economic export and increases the financial productivity of taxpayer
dollars and increases the consumption of local goods and services In working towards a
sustainable economy, staff recognizes that procurement policies are an important step in achieving
the objectives of the Ten Point Plan for Local Businesses By leveraging the purchasing power of
the City to buy local products and services, instead of products and services from outside the City
of Huntington Beach, it strengthens local economic activity and employment, as well as sets an
example that helps grow and maintain a vibrant community for future generations
Item 20. - 2 HB -452-
Dept ID FN 15-018 Page 3 of 3
Meeting Date 11/16/2015
Environmental Status
Not Applicable
Strategic Plan Goal
Strengthen Economic and Financial Sustainability
Attachments)
1 Ordinance No 4076, "An Ordinance of the City of Huntington Beach Amending Chapter
3 02 of the Huntington Beach Municipal Code Relating to Goods and Services"
2 Legislative Draft
xB -453- Item 20. - 3
ORDINANCE NO 4076
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING CHAPTER 3.02 OF THE HUNTINGTON BEACH MUNICIPAL
CODE RELATING TO PURCHASES OF GOODS AND SERVICES
The City Council of the City of Huntington Beach does hereby ordain as follows
SECTION 1 Section 3 02 180 of the Huntington Beach Municipal Code is hereby
amended to read as follows•
3.02.180 Local Business Preference
A. Subject to the limitations contained in this section, the Purchasing/Central
Services Manager shall extend a bidding advantage to a local business in the form
of a five percent preference in the evaluation of bids or proposals for the
procurement of goods.
B The following contracts are exempt fiom the provisions of this section
Contracts funded in whole or in part from grants, donations or gifts to the
City if the provisions of this section conflict with any special conditions
attached to the grants, donations or gifts, provided the special conditions
have been approved and accepted pursuant to the donations policy of the
City
2 Emergency procurements.
3. Sole source contracts.
C. After a due process hearing, should the City Manager determine that a price
preference was received under this section through an intentional misstatement,
the recipient of any such price preference shall be subject to a civil penalty of
treble the dollar price preference received of $5,000 00, whichever is greater.
SECTION 2. This ordinance shall become effective 30 days after its adoption
15-4970/127799 doc
Ordinance No. 4076
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 7 t h day of December , 2015
ATTEST:
City Clerk
REVIEW APPROVED
ity Manager
l ay&
APPROVED AS
City Attorney Dlw c01271 \ k
INITTA ED ANDAPP�ROVE
V 'T � �7
Director of Finance
154970/127799 doc 2
Ord. No. 4076
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of Huntington
Beach is seven, that the foregoing ordinance was read to said City Council at a Regular
meeting thereof held on November 16, 2015, and was again read to said City Council at
a Regular meeting thereof held on December 7, 2015, and was passed and adopted by
the affirmative vote of at least a majority of all the members of said City Council.
AYES: Posey, O'Connell, Katapodis, Hardy, Sullivan, Delgleize, Peterson
NOES: None
ABSENT: None
ABSTAIN: None
I, Joan L Flynn, CITY CLERK of the City of Huntmgton
Beach and ex-officio Clerk of the City Council, do hereby
certify that a synopsis of this ordinance has been published in
the Huntington Beach Wave on December 17, 2015
In accordance with the City Charter of said City
Joan L Flynn, City Clerk
Senior Deputy City Clerk
City erk and ex -offs lerk
of the City Council of the City
of Huntington Beach, California
Ordinance No. 4076
LEGISLATIVE DRAFT
Chapter 3.02 Relating to Purchases of Goods and Services
3.02.180 Local Business Preference
A Subject to the limitations contained in this section, the Purchasing/Central Services
Manager shall extend a bidding advantage to a local business in the form of a five percent
preference in the evaluation of bids or proposals for the procurement of goods tip to
$100 nnn nn (with ..... ffi-......,.,, benefit of $5 nnn 00)
B. The following contracts are exempt from the provisions of this section:
1. Contracts funded in whole or in part from grants, donations or gifts to the City if
the provisions of this section conflict with any special conditions attached to the
grants, donations or gifts, provided the special conditions have been approved and
accepted pursuant to the donations policy of the City
2. Emergency procurements.
3. Sole source contracts
C. After a due process hearing, should the City Manager determine that a price preference
was received under this section through an intentional misstatement, the recipient of any
such price preference shall be subject to a civil penalty of treble the dollar price preference
received or $5,000.00, whichever is greater (3510-10/01, 3718-8/05, 3913-6/11)
15-4970/127801