Local PreferenceLocal PreferencePurchasing Purchasing OrdinanceOrdinance

City of Salinas

Presentation GoalsPresentation Goals

• Explain Local Preference Ordinance

• Doing business with the City

• Communicate with local businesses

• Local preference purchasing benefits

Local Preference Local Preference Purchasing BenefitsPurchasing Benefits

• Support local economy

• Higher employment rates

• Increase sales and Measure V tax

– Supports City services

• “Buy local” and “shop local”

Ordinance HistoryOrdinance 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 Win-Win Local Preference ProgramPreference Program

• Supports local businesses

• Locals can compete against non-locals

• Provides sound fiscal policy

– Award to “lowest responsible bidder”

Business PointsBusiness 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 Business Points (Does Not Apply)(Does Not Apply)

• Professional services

• Construction bids

• Emergency purchases

• Direct or sole source purchases

• Some grant funded purchases

Professional ServicesProfessional Services

• Physicians

• Attorneys

• Appraisers

• Architects

• Engineers

• Auctioneers

• Consultants

• Arbitrators

• Designers

• Auditors

• Insurance

Evaluation Based on Qualifications

Local Business Local Business RequirementsRequirements

• Current business license• Business License Application

• Business must be within City limits

• In business locally one year prior to bid

Informal BidsInformal 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 BidsFormal Bids

• Purchases over $20,000

• Bid document

• Bid opening advertised (no later than ten

days)

• Award needs Council approval

Cooperative Purchasing Cooperative Purchasing GroupsGroups

• 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 PurchasingCooperative Purchasing

• Conduct their own formal bid process

• Over $20,000 needs Council approval

• Successful local competition

When is the City When is the City requesting bids?requesting bids?

• Salinas Californian “Legal Section”

• Website www.ci.salinas.ca.us/

• Contact Purchasing at 758-7371

How does City find local How does City find local businessesbusinesses??

• Communicate with local business organizations

Local Business Local Business OrganizationsOrganizations

• Salinas Chamber of Commerce

• Salinas Oldtown Association

• Salinas United Business Association

• Salinas Valley Builders Exchange

• Grower-Shipper Association of Central California

City GoalsCity Goals

• Ordinance compliance

• Knowledge of City bid procedures

• Communication with local business organizations