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*Note: The bid amount is the amount the City would actually pay for the goods or <br />services; but for determining lowest bidder, the local preference percentage deduction <br />would be used. <br />As previously discussed, policy interests behind a local business preference include <br />improved local economic vitality, as well as keeping a portion of sales tax within the <br />local economy. Potential drawbacks might include fewer businesses submitting bids, <br />and increased costs to the City due to bidding advantage for local businesses that <br />actually charge higher prices. <br />ACTION <br />The EVC can make policy recommendations to the City Council for an amendment to <br />the Pleasanton Municipal Code to implement a Local Business Support Program that: <br />A. In the event of a tie bid from companies with equivalent qualifications and <br />cost, provides a preference for the bidder that is physically located in <br />Pleasanton that has a current City business license. <br />B. Provides a bidding advantage for Pleasanton -based businesses <br />1. What percentage bidding advantage <br />2. Will there be a limit on the maximum dollar advantage <br />If the committee recommends only a local preference in the event of a tie bid, Section <br />3.28.020(C)3. is proposed to be added, as shown in the attachment. <br />If the committee recommends both: (A) local preference in the event of tie bid; and (B) <br />bidding advantage for local business, language is proposed in the text box in Section <br />3.28.020.(C)3. of the attachment, using a 2.5% bidding preference to a maximum of <br />$3,000.1 The committee is of course able to recommend a different bidding preference <br />percentage and maximum. <br />If amendments are recommended for the Pleasanton Municipal Code, when this item is <br />presented to the City Council, the same Local Business Support Program provisions <br />would be also recommended for addition to the existing Administrative Policy: <br />Purchasing Procedures and Manual. <br />Under these criteria, a Pleasanton -based company with a $110,000 bid would be awarded a <br />contract over a Manteca -based company with a $107,500 bid, as with the 2.5% local <br />preference, the Pleasanton -based company's bid for comparison purposes would be $107,250; <br />with the local preference bidding deduction of $2,750 (less than the $3.000 cap). <br />Page 3 of 4 <br />