24 - Laserfiche WebLink

receipt of 1% of the 9.25% sales tax, and increased economic activity for Pleasanton- based businesses. BACKGROUND The General Plan includes a policy to "Focus City efforts on supporting and assisting Pleasanton businesses' success."' To that end, the Council adopted the Economic Development Strategic Plan (2013), and its current Work Plan includes the development of a Coordinated Business Support Program, which provides, in part for a local preference wherein: "If the procurement submissions are competitively matched in relation to qualifications, quality, experience and cost, the City will consider locality when selecting providers of goods and services. ...." As the purchaser of supplies, equipment and services in the marketplace, the City has some flexibility on how it chooses to select vendors, suppliers, contractors and consultants. However, the City is constrained by State law requirements for formal bidding under the Public Contracts Code2, as well as regulatory limits often imposed by the source of funds.3 At its meeting of October 17, 2019, the Economic Vitality Committee (EVC) considered options for a local preference. (See Attachment 3 for report considered by EVC.) This included a review of local preferences provided in neighboring communities. The EVC recommended that the Council adopt a local preference as generally presented in Attachment 1, except the EVC recommended that the local preference be applied to the acquisition of all services. The staff recommendation is that the local preference apply to trade services (e.g. plumbers, electricians, locksmiths, etc.), but exclude professional services (e.g. accountants, engineers, landscape architects, attorneys, etc.). This distinction is because the process to select professional service providers and consultants, such as civil engineers, appraisers, architects, planners, etc., involves the consideration of many skills and qualifications such as experience with local laws or regulatory agencies, presentation skills, etc., not just pricing. DISCUSSION 1. Local Preference for Tie Bid. The proposed amendment to Municipal Code Section 3.28.020 would provide a preference to a local business in the event that bids for the purchase of supplies, equipment and trade services are tied in terms of price and qualifications. For example, if both a Pleasanton-based company and a Modesto-based company each offer to sell chairs for use at Gingerbread at $35 a chair, with both ' See Pleasanton General Plan 2005-2025 Economic and Fiscal Element, Policy 5. For example, the California Public Contracts Code is used to award bids for public works (e.g., construction and building maintenance projects) and only statutory minority-owned businesses which pre- qualify can receive a bid preference. 3 For example, federal highway funds awarded to the City by Caltrans, which are used for sidewalk, paving and traffic signal work, are subject to federal and state restrictions which do not allow for a local city preference. Similarly, Measure BB transportation funds awarded to cities by Alameda County have limitations that only allow for a narrow county-wide preference in some bidding, and no city-based preference. Page 2 of 4