City of Salinas Local Preference Purchasing Ordinance

City of Salinas Local Preference Purchasing Ordinance

Presentation Goals • Local preference purchasing benefits • Explain Local Preference Ordinance • Doing business with the City • Communicate with local businesses

Local Preference Purchasing Benefits • Support local economy • Higher employment rates • Increase sales and Measure V tax – Supports City services • “Buy local” and “shop local”

Ordinance History • Local groups request “buy local program” • Council approved the “Win-Win” program • Adopted on October 9, 2008 • Salinas Municipal Code Article III Section 12 -27. 1

Win-Win Local Preference Program • Supports local businesses • Locals can compete against non-locals • Provides sound fiscal policy – Award to “lowest responsible bidder”

Business Points • Locals get 10% preference – Right of first refusal • Business located within City limits • Must have Salinas business license • Must pay sales tax if applicable • Purchases over $5, 000 • Supplies, equipment, nonprofessional services • Formal and informal bids

Business Points (Does Not Apply) • Professional services • Construction bids • Emergency purchases • Direct or sole source purchases • Some grant funded purchases

Professional Services Evaluation Based on Qualifications • Physicians • Consultants • Attorneys • Arbitrators • Appraisers • Designers • Architects • Auditors • Engineers • Insurance • Auctioneers

Local Business Requirements • Current business license • Business License Application • Business must be within City limits • In business locally one year prior to bid

Informal Bids • Purchases over $5, 000 to $20, 000 • Bids usually conducted by phone • Need hard copy of quote or bid • Ensure correct item being quote • Authorized signature

Formal Bids • Purchases over $20, 000 • Bid document • Bid opening advertised (no later than ten days) • Award needs Council approval

Cooperative Purchasing Groups • California Statewide Contracts • California Multiple Award Schedule (CMAS) • Western States Contracting Alliance (WSCA) • US Communities • National Intergovernmental Purchasing Alliance (National IPA) • Houston-Galveston Area Council (HGAC)

Cooperative Purchasing • Conduct their own formal bid process • Over $20, 000 needs Council approval • Successful local competition

When is the City requesting bids? • Salinas Californian “Legal Section” • Website www. ci. salinas. ca. us/ • Contact Purchasing at 758 -7371

How does City find local businesses? • Communicate with local business organizations

Local Business Organizations • Salinas Chamber of Commerce • Salinas Oldtown Association • Salinas United Business Association • Salinas Valley Builders Exchange • Grower-Shipper Association of Central California

City Goals • Ordinance compliance • Knowledge of City bid procedures • Communication with local business organizations