Department of Finance Annual Report on City Procurement

Department of Finance Annual Report on City Procurement Presented by Larry Hammond Purchasing Administrator December 8, 2014 City Council

BACKGROUND Department of Finance • The City made purchases of $187, 975, 810 • $9, 295, 665 secured by M/WBE • $10, 910, 330 secured by Pasadena Businesses • Revised Reporting Methodology • Analysis of Local Opportunities • Local Outreach on Rose Bowl Project; and Glenarm Repowering Project • Local Businesses Bid Notification Registered 2

BACKGROUND Department of Finance Spending Trend for the Last Seven Years Total Procurement Amount $ 200, 000 $ 180, 000 $ 160, 000 $ 140, 000 $ 120, 000 $ 100, 000 $ 80, 000 $ 60, 000 $ 40, 000 $ 20, 000 $- 2007 2008 2009 2010 2011 2012 2013 Total Procurement Amount 119, 917, 252 $ $ 129, 995, 313 $ 148, 183, 682 $ 89, 388, 459 88, 840, 406 99, 741, 340187, 975, 810 $ $ $ In 2013, a major purchase was made for approximately $60, 000 to support the Glenarm Repowering Project.

Revised Reporting Methodology Department of Finance • Percentage of procurement dollars secured by local vendors fluctuate • Items for which there was no competition from Pasadena businesses • Reporting the local percentages relative to the grand total procurement does not truly represent the City’s performance 4

Revised Reporting Methodology Department of Finance • Staff analyzed procurement data for 2013 • Analysis helped identify viable local purchases • Purchases placed in the following categories: 5

Reporting Categories Department of Finance • Category 1 A: informal bids not available in Pasadena. • Category 1 B: informal bids available in Pasadena. • Category 2 A: formal bids not available in Pasadena. • Category 2 B: formal bids available in Pasadena. 6

Reporting Categories Department of Finance Category 1: Purchases under $25, 000 7

Reporting Categories Department of Finance Category 2: Purchases at $25, 000 or more 8

Revised Reporting Methodology Department of Finance Local Spending Trend 9

Revised Reporting Methodology Department of Finance Local Spending Trend (cont. ) $ 45, 000 $ 40, 000 $ 35, 000 $ 30, 000 $ 25, 000 $ 20, 000 $ 15, 000 $ 10, 000 $ 5, 000 $Available But Not Purchased 2013 $ 31, 436, 432 2012 $ 30, 795, 817 Purchased in Pasadena $ 10, 910, 330 $ 7, 165, 050 10

Regional Input Output Modeling System Department of Finance Includes the following local subcontracting and procurement activity: $10, 910, 330 from City departments 11

Pasadena First Buy Local Department of Finance General Outreach Areas Local Purchasing Outreach Efforts in 2014 • Identifying specific goods or services most likely to be purchased • Encouraging registration into the City’s bid notification system Local Purchasing Outreach Efforts in 2015 • Conducting outreach to City departments • One-on-one introductions between city departments and Pasadena businesses • Expand Presentations to Business Organizations Local Hiring Outreach Efforts in 2014 • Utilizing plans to establish local hiring goals on public projects • Collaborating with community stakeholders • Offering a web based, certified payroll tracking system to city departments Local Hiring Outreach Efforts in 2015 • Conducting outreach to Pasadena residents to encourage registration 12

Pasadena First Buy Local Department of Finance General Outreach Areas (cont. ) Commodities targeted for outreach to Pasadena Businesses: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Automotive Shop and Repair Building Construction Services Carpet Cleaning Computer Hardware/Software Construction Services Door Installation Electrical Equipment Employment Agency Event Planning Services Fencing Economics Consulting Financial Services Fire Protection Equipment Flooring Maintenance 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. Furniture Janitorial or Custodial Services Landscaping & Irrigation Lumber Related Products Marketing Consulting Moving Services Office Equipment Painting Pest Control Plumbing Equipment Plumbing Maintenance Printing Related Services Roofing 13

Pasadena First Buy Local Department of Finance General Outreach Areas (cont. ) • Local Business Directory (Pasadena Virtual Mall) • Increase Use of Bid Notification System • Additional 50 Pasadena businesses (7. 4 % increase) registered in Bid Notification System 14

Pasadena First Buy Local Department of Finance Rose Bowl Local Participation Plan • All Outreach Deliverables Satisfied • 270 Pasadena residents Hired • Over $2. 5 Million in certified payroll to Pasadena residents • Over $10. 7 Million in subcontracting and procurement 15

Pasadena First Buy Local Department of Finance First Source Local Hiring • Total $3, 738, 787 in wages to Pasadena residents sinception. • Total of over 350 jobs filled by Pasadena residents • Including 3 Public Projects; and 9 Private Development Projects • Potential Upcoming Projects: > > Heritage Square Mar Vista Glenarm Repowering Project Robinson Park Recreation Center 16

Advisory Group Department of Finance Mission: “Provide advice and recommendations on strategies the City can use to maximize local participation of Pasadena residents and businesses for employment and procurement opportunities. ” Participants include: • Armenian National Committee • Flintridge Center • Foothill Workforce Investment Board (Career Services) • NAACP • Pasadena Chamber of Commerce • Pasadena Latino Coalition • Northwest Commission • Women at Work 17