HomeMy Public PortalAbout18-1806 - Amending the Carson Municipal Code to Establish a Preference for Local Business in the Procurement of Supplies and Equipment and ServicesORDINANCE NO. 18-1806
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARSON,
CALIFORNIA, AMENDING THE CARSON MUNICIPAL CODE TO
ESTABLISH A PREFERENCE FOR LOCAL BUSINESSES IN THE
PROCUREMENT OF SUPPLIES AND EQUIPMENT AND SERVICES
WHEREAS, Council finds that a local business preference ordinance allows the City to promote
local business; and
WHEREAS, Council finds that local preference ordinances results in stimulating local economic
activity through direct, indirect and induced effects; and
WHEREAS, multiple studies have shown that when using a local vendor, more of a cities revenue
stays within the local community as local vendors are more likely to spend the money within the
community and the money spent in the community recirculates in the community; and
WHEREAS, as provided in Government Code Section 12098(a), the State has recognized that it is
important to assist and protect the interests of small business concerns in order to preserve a free
competitive enterprise and maintain a healthy state economy; and
WHEREAS, the City Council finds and determines that providing a local preference of 5% in the
City's contracts for supplies and equipment and professional services for contracts under $100,000 to
local small businesses will assist such businesses, which are often at a competitive disadvantage to large
regional or national businesses because of the higher administrative costs and the inability to enjoy the
economies of scale that regional or national businesses enjoy; and
WHEREAS, the City Council finds and determines that providing a local preference of 5% in the
City's contracts for supplies and equipment and professional services for contracts under $100,000 to
local small businesses will support local small businesses and the local economy and that it is in the
interest of the public health, safety, and general welfare for the City of Carson to do so.
NOW, THEREFORE, the CITY COUNCIL of the CITY of CARSON, CALIFORNIA, does hereby ordain
as follows:
Section 1. The recitals set forth above are true and correct, and incorporated herein by
this reference.
Section 2. Section 2601, "Definitions," of Chapter 6, "Purchasing System," of Article II,
"Administration," of the Carson Municipal Code is hereby amended as follows (new text, if any, is
identified in bold & italics, while deleted text, if any, is identified in StFiketl;Fgugh`:
"As used in this Chapter, the following words shall have the following definitions:
(a) "Awarding authority" shall mean either the City Council, City Manager or his or her
designee who has been given the authority to award under this Chapter PUFGhasing
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(b) "Capitalized equipment" shall mean equipment that is reported as an asset on the
City's audited financial statements in accordance with generally accepted accounting
principles.
(c) "Commission" shall mean the Uniform Public Construction Cost Accounting
Commission, created pursuant to California Public Contract Code Section 22010.
(d) "Inventory" shall mean supplies that may be consumed such as light bulbs, printing
paper, writing instruments, and other similar items.
(e) "Local business" shall mean a business that can certify that the business:
(1) has a headquarter, primary or branch office within the City, which was
established prior to the City inviting bids for the respective procurement, and
(2) possesses a current business license and certificate of occupancy, and
(3) is certified by the State Department of General Services as a Small Business.
(f) "Maintenance work" shall have the same meaning as that term is defined under
California Public Contract Code Section 22002.
(g) 4€ -"Public project" shall have the same meaning as that term is defined under
California Public Contract Code Section 22002.
(h) kg --"Purchase order" shall mean a written or electronic authorization for a particular
vendor to provide particular materials, supplies, equipment, and services to the City for
a particular price and which shall contain terms and conditions of such purchase and
shall be in a form approved by the City Attorney.
(i) kl+)—"Purchasing system" shall mean the purchasing system established by the
ordinance codified in this Chapter and codified under this Chapter.
(j) (+-"Surplus property" shall mean personal property belonging to the City that is no
longer needed or which has become obsolete or worn out as determined by the
relevant City department. "Surplus property" includes capitalized equipment, but does
not include inventory.
(k) k+"The Act" shall mean the "Uniform Public Construction Cost Accounting Act." "
Section 3. Section 2610(1), "Award to Lowest Responsive and Responsible Bidder," of
Chapter 6, "Purchasing System," of Article II, "Administration," of the Carson Municipal Code is hereby
amended as follows is hereby amended to read as follows (new text, if any, is identified in bold & italics,
deleted text, if any, is identified in stFike thFewgI ):
"Unless bids are rejected as provided in this Chapter, all contracts of the City for the
purchase of materials, supplies, equipment, and services of a value equal to or
exceeding $25,000, except as otherwise provided in this Chapter fG "^^#aGtom ,,..+,,.,.�
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PUFSuaRt W Fequests {^F pFepesals and exempted puFehases, shall be awarded to the
lowest responsible and responsive bidder. "Lowest responsible and responsive bidder"
means the bidder who submits the lowest monetary bid that responds to the terms
upon which bids were requested, and who has demonstrated the attribute of
trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily
perform the contract. To the extent permitted by law, criteria for determining whether
a bidder is responsible include, without limitation, all of the following:
(1) The conformity of the supplies, materials, equipment, or services to the required
specifications;
(2) The ability, capacity, and skill of the bidder to provide the supplies, materials,
equipment, or services as required;
(3) The ability of the bidder to provide the required items or services within the time
specified;
(4) The character, integrity, reputation, judgment, experience, efficiency, financial
resources, and financial responsibility of the bidder;
(5) The ability of the bidder to promptly provide future maintenance, repair, parts, and
service after purchase;
(6) The bidder's prior record of performance on other procurements or projects,
including timely completion of performance, quality of products and work provided, and
completion of projects within the bid amount submitted and project budget;
(7) The bidder's involvement in prior or current litigation or contract disputes that could
impair satisfactory performance of the contract to be awarded; and
(8) The bidder's history of noncompliance with occupational safety and health
requirements, labor statutes and regulations, and other local, state, and federal laws.
The purchasing file shall contain a written summary of the basis on which the award is
made. If a bidder is rejected because of an adverse determination of that bidder's
capability of performing the contract, a written determination of irresponsibility, setting
forth the basis of the finding, shall be prepared by the Procurement Officer or designee.
The unreasonable failure of a bidder promptly to supply information in connection with
an inquiry regarding responsibility may be grounds for a determination of
irresponsibility. Prompt written notice shall be sent to the bidder of the evidence
reflecting upon the bidder's responsibility that has been either received from others or
adduced from independent investigation. The bidder shall be afforded an opportunity to
rebut such adverse evidence and to present evidence of qualification. After
consideration of the evidence and the rebuttal evidence, the Procurement Officer shall
make a final determination of the lowest bidder's responsibility and promptly so notify
the bidder in writing. A bidder aggrieved by any such determination may protest as
provided in CMC 2613."
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Section 4. Section 2610(j), "Equal Bids," of Chapter 6, "Purchasing System," of Article II,
"Administration," of the Carson Municipal Code is hereby amended as follows is hereby amended to
read as follows (new text, if any, is identified in bold & italics, deleted text, if any, is identified in strike
thFeUgh):
"If prices quoted or received in two (2) or more sealed bids are equally the lowest
bidder, including application of the local preference pursuant to Section 2611.1, then a
bidder may be chosen pursuant to any of the following options that is deemed the Got
to
serve the best interest of the City:
(1) Select one (1) bid, giving preference to a business located within the City of Carson;
or
(2) Reject all bids and re -solicit for bids; or
(3) Reject all bids and authorize negotiation of an agreement between the City and one
(1) of the equivalent bidders; or
(4) Select one (1) bid, giving preference to the business which is the most experienced;
or
(5) Take any other action that the City Council deems to serve the best interest of the
City."
Section S. Section 2611(j) is hereby added to Chapter 6, "Purchasing System," of Article II,
"Administration," of the Carson Municipal Code as follows:
"For the evaluation and award of any bids, proposals, or offers received pursuant to this
Section, a local preference shall be given to local businesses, as provided further in
Sections 2611.1."
Section 6. Section 2611(k) is hereby added to Chapter 6, "Purchasing System," of Article II,
"Administration," of the Carson Municipal Code as follows:
"If prices quoted or received in two (2) or more bids, proposal, or offers pursuant to this
Section are equally the lowest, including application of a local preference pursuant to
Section 2611.1'then the awarding authority may choose whichever options as provided
in Sections 2610(j)(1) through (j)(5) that it deems to serve the best interest of the City."
Section 7. Section 2611.1, "Local Preference for Materials, Services, Supplies, and
Equipment," is hereby added to Chapter 6, "Purchasing System," of Article II, "Administration," of the
Carson Municipal Code as follows:
"2611.1 Local Preference for Materials, Services, Supplies, and Equipment.
(a) Local Preference for Materials, Supplies, and Equipment. Notwithstanding
anything in this Chapter to the contrary, except for those contracts funded through
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programs or partners, including but not limited to federal or state agencies, which
prohibit the use of a local preference, local businesses shall be provided a local
preference for all contracts for materials, supplies, or equipment as provided in this
Section.
(1) This Section 2611.1(a) shall only be applicable to contracts for materials,
supplies, or equipment in an amount of $100,000 or less.
(2) Amount of Preference. A local preference of 5% shall be extended to all bids
by a local business for all applicable contracts.
(3) Application of Preference. All bids submitted by a local business that
includes a certification signed by the bidder that the business meets the
definition under Section 2601, shall have the bid price reduced by the local
preference and the reduced bid amount shall be deemed the amount of the bid.
(4) Substantial Local Work. The local preference awarded shall be applied only if
the local business substantially acts as the supplier or dealer, or substantially
designs, manufactures or assembles the materials, supplies and/or equipment
at a business location in the City. As used in this subsection, "substantially"
means not less than two-thirds of the work performed under the contract must
be performed, respectively, by the local business in the City."
(b) Local Preference for Services. Notwithstanding anything in this Chapter to the
contrary, except for those contracts funded through programs or partners, including but
not limited to federal or state agencies, which prohibit the use of a local preference,
local businesses shall be provided a local preference for contracts for services provided
in this section.
(1) Applicable Contracts. Section 2611.1(b) shall only be applicable to contracts
for services in an amount less than $100,000.
(2) Preference. The City shall give a primary preference to local businesses on
contracts for services, whenever such businesses have the necessary
qualifications, experience and expertise to complete the project(s) being
proposed for work, as determined by the City. When a proposal, bid, or offer
submitted by a local business for award is being evaluated, the local business
shall be provided a 5% preference for a local business in the proposal price.
(3) Substantial Local Work. The preference awarded shall only be applied if the
services are provided directly by the local business using employees whose
exclusive, primary working location is in the City."
(c) Nothing in this Section is intended to require the award of any contract to any
particular bidder, offeror, or proposer, regardless if they qualify as a local business.
(d) Nothing in this Section is intended to limit the City's authority to reject any and all
bids.
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(e) This Section shall not apply to public projects.
(f) Failure to Maintain Status as Local Business. Without limitation to any other remedies
available to the City, if for any reason a contractor that receives a local preference
pursuant to Section 2611.1 fails to maintain its status as a local business for more than
60 days during the entire term of its related contract with the City, the City shall be
entitled to withhold or recover funds from the contractor in an amount that represents
the value of the bid."
Section 8. The City Council hereby finds that it can be seen with certainty that there is no
possibility the adoption and implementation of this Ordinance may have a significant effect on the
environment. The Ordinance is therefore exempt from the environmental review requirements of the
California Environmental Quality Act pursuant to Section 15061(b) (3) of Title 14 of the California Code
of Regulations.
Section 9. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or
phrase of this section, or its application to any person or circumstance, is for any reason held to be
invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability
of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this
section, or its application to any other person or circumstance. The City Council declares that it would
have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof,
irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs,
sentences, clauses or phrases hereof be declared invalid or unenforceable.
Section 10. The City Clerk shall cause this ordinance to be published at least once in a
newspaper of general circulation published and circulated in the City within fifteen (15) days after its
passage, in accordance with Section 36933 of the Government Code, shall certify to the adoption of this
ordinance.
Section 11. This Ordinance shall be in full force and effect thirty (30) days after its second
reading and adoption.
PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on this 15` day of
May, 2018.
APPROVED AS TO FORM: CITY OF CARSON:
01007.0007/456592.4
Al�v7 ,
A ert Robles, Mayor
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ATTEST:
Donesia Gause- Jana, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF CARSON )
I, Donesia Gause-Aldana, City Clerk of the City of Carson, California, hereby attest to and certify that the
foregoing ordinance, being Ordinance 18-1806 passed first reading on the 17`h day of April, 2018,
adopted by the Carson City Council at its meeting held on the 15L day of May, 2018, by the following roll
call vote:
AYES: COUNCIL MEMBERS: ROBLES, HILTON, SANTARINA, HICKS, DAVIS—HOLMES
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
Donesia Gause- Idana, MMC, City Clerk
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