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THE CITY OF 2 4 -•• # _ -�-� CITY COUNCIL AGENDA REPORT pL£ASANTON January 21, 2020 Economic Development TITLE: INTRODUCE AN ORDINANCE TO AMEND MUNICIPAL CODE CHAPTER 3.28 TO ADD A LOCAL PREFERENCE FOR PLEASANTON-BASED BUSINESSES WHEN TIE BIDS ARE SUBMITTED, AND PROVIDE A BID CALCULATION PREFERENCE OF FIVE PERCENT UP TO $5,000 PER TRANSACTION FOR SUPPLIES, EQUIPMENT AND SERVICES; AND ADOPT A RESOLUTION WITH RELATED CHANGES TO THE PURCHASING PROCEDURES AND MANUAL SUMMARY In furtherance of the 2019-2020 City Council Work Plan, one element toward implementation of a Coordinated Business Support Program is a proposed amendment to the Pleasanton Municipal Code to provide a local preference: (1) in the event of a tie bid for the acquisition of supplies, equipment and trade services, the contract would be awarded to the Pleasanton-based business; and (2) when comparing bids for the purchase of supplies, equipment and trade services, a bid calculation preference of 5% up to $5,000 would be applied to the bid of the Pleasanton-based business. Related amendments are also proposed for the Purchasing Procedures and Manual. RECOMMENDATION The Economic Vitality Committee at its October 17, 2019, meeting by a vote of 16-0-0 recommended adoption of a proposed ordinance for a Pleasanton-based business local preference when the City acquires supplies, equipment and services. Staff is recommending the Council: (a) introduce an ordinance, Attachment 1 , to amend Chapter 3.28 of the Municipal Code to provide a local preference when the City acquires supplies, equipment and trade services (excluding professional services) for tie bids and a bid calculation preference of 5% up to $5,000 when a city-based vendor or contractor's bid is greater than a non-city based vendor or contractor; and (b) adopt a resolution, Attachment 2, to make related amendments to the Purchasing Procedures and Manual. Staff recommends the local preference as applied to trade services be evaluated for two years to determine if there are any adverse effects. FINANCIAL STATEMENT There would be no additional cost to the City in providing a preference for a Pleasanton- based business in the event of a tie bid. There will be increased costs to the City if the City awards bids for the purchase of supplies, equipment and trade services after the application of the bid calculation preference of 5% up to $5,000 per transaction. The financial benefit of the proposed local preference includes both the City of Pleasanton as the designated point-of-sale for a Pleasanton-based business and