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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 />