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HomeMy WebLinkAbout07- Economic Development ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION PROM: TIMOTHY C. STEINHAUS SUBJECT: LOCAL PREFERENCE Agency Administrator CRITERIA DATE: January 6, 1994 -------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): None. ---------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) (Councilman Hernandez's Recommendation) MOTION: To discuss and take necessary action to adopt local preference criteria applicable to contracts considered by the City of San Bernardino or the Economic Development Agency. J � TIMOTHY C. STEINHAUS Agency Administrator -------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Timothy C. Steinhaus Phone: 5081 Project Area(s): N/A Ward(s): 1-7 Supporting Data Attached: Memorandum dated 1/5/94 FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A Budget Authority: N/A ------------------------------------------------------------------------------------------------------------------------------------------------ Commission/Council Notes: ------------------------------------------------------------------------------------------------------------------------- TCS:lag:lclpref.cdc COMMISSION MEETING AGENDA MEETING DATE: 01/10/1994 Agenda Item Number: 9 i CITY OF SAN BERNARD 5 1994 tCfifdt)Pr1iC DEVELOFiV-1ENT ti INTEROFFICE MEMORANDUM L.AGENCY TO: Timothy C. Steinhaus, Administrator, Economic Development Agency FROM: Council Office SUBJECT: Council/Commission Agenda for January 10, 1994 DATE: January 5, 1994 COPIES: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Please place the following motion on the Council/Commission agenda for January 10, 1994: To discuss and take necessary action to adopt local preference criteria applicable to contracts considered by the City of San Bernardino or the Economic Development Agency. 00104d RALPH HERNAND Councilman, Third Ward RH:jv SAN BERNARDINO �rilrk �r DOWNTOWN �� S � ��,� ASSOCIATIQNIj 41 p, Businesses working together to make downtown and all of San Bernardino the best place to work, visit and live. January 6, 1994 The Honorable Tom Minor Members of the Common Council c/o City Clerk 300 North "D" Street San Bernardino, CA 92418 Dear Mayor and Council: At its meeting of January 6, 1994 the San Bernardino Downtown Business Association, after considerable discussion, recommended that the Mayor and Council consider the following in adopting a Local Business Utilization Ordinance: Background Unemployment in the City of San Bernardino is among the highest of any City in Southern California. To help stimulate the local economy and maintain and create jobs, it is important that local tax dollars be directed into the local economy whenever feasible during this crises period. Recommendation #1 The following preferences are expressed as a percentage. Where a vendor is selected on a price/bid basis, the local businesses bid would be reduced, for competitive consideration, by the applicable percentage set forth below. Where the vendor is selected on a "point" basis, additional points would be awarded to the local business by increasing such business's points by the applicable percentage (as set forth below) of total possible points. A. If vendor's principal office is located in the City of San Bernardino, vendor will receive 1% for each year the principal office has been located in the City of San Bernardino up to a maximum of three years. P. O. Box 1662 San Bernardino, CA 92402 B. In addition to "A" above, the vendor will receive 1% for each year the vendor has physically located 50% or more of its employees in offices located in the City of San Bernardino up to a maximum of three years. Recommendation #2 The ordinance should encourage the use of local subcontractors and suppliers for all contracts. Recommendation #3 To assure the public interest is protected, the ordinance should include an appropriate conflict of interest section making it unlawful for any person involved in the selection process to participate in activities such as rebates, kickbacks or business relationships with a person or business entity seeking a contract. The members of the Downtown Business Association thank you for your consideration of our recommendations. Yours truly, Salvatore F. Catalano President SFC:rls SAN BERNARDINO DOWNTOWN BUSINESS i ASSOCIATION, INC. Businesses working together to make downtown and afl-af San Bernardino the best place to work, visit and live. January 6, 1994 O� The Honorable Tom Minor Members of the Common Council c/o City Clerk 300 North "D" Street San Bernardino, CA 92418 Dear Mayor and Council: At its meeting of January 6, 1994 the San Bernardino Downtown Business Association, after considerable discussion, recommended that the Mayor and Council consider the following in adopting a Local Business Utilization Ordinance: Background Unemployment in the City of San Bernardino is among the highest of any City in Southern California. To help stimulate the local economy and maintain and create jobs, it is important that local tax dollars be directed into the local economy whenever feasible during this crises period. Recommendation #1 The following preferences are expressed as a percentage. Where a vendor is selected on a price/bid basis, the local businesses bid would be reduced, for competitive consideration, by the applicable percentage set forth below. Where the vendor is selected on a "point" basis, additional points would be awarded to the local business by increasing such business's points by the applicable percentage (as set forth below) of total possible points. A. If vendor's principal office is located in the City of San Bernardino, vendor will receive 1% for each year the principal office has been located in the City of San Bernardino up to a maximum of three years. P. O. Boa 1662 San Bernardino, CA 92402 B. In addition to "A" above, the vendor will receive 1% for each year the vendor has physically located 50% or more of its employees in offices located in the City of San Bernardino up to a maximum of three years. Recommendation #2 The ordinance should encourage the use of local subcontractors and suppliers for all contracts. Recommendation #3 To assure the public interest is protected, the ordinance should include an appropriate conflict of interest section making it unlawful for any person involved in the selection process to participate in activities such as rebates, kickbacks or business relationships with a person or business entity seeking a contract. The members of the Downtown Business Association thank you for your consideration of our recommendations. Yours truly, -9-A� Salvatore F. Catalano President SFC:rls 1 ORDINANCE NO. 2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING SECTIONS 3.04.125 AND 12.20.040 TO THE SAN BERNARDINO MUNICIPAL CODE 3 RELATING TO AN EIGHT PERCENT (8% ) PREFERENCE FOR LOCAL BIDDERS ON CITY PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES AND 4 FOR PUBLIC PROJECTS. 5 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: 6 SECTION 1. Findings- 7 The Mayor and Commor !rnardino 8 do find and declare as fol - ,. 9 A. Firms and busin of San Bernardino i,'! = -�� ` ` ty 10 Users Tax, the nd Street Sweeps pus 11 landscaping an( .s and the downtoi .s, 12 all placing the in relation to loc ��'° �' "` � st 13 pay such exactic is or to supply Ci J er 14 to equalize the it is necessary to r< ,t `, ` es 15 an eight percen I. C / t. 16 B. Businesses are leaving the City in recore numbers, including the relocation of the Santa F 17 yards out of state, the closure of Norton A Force Base and its attendant employment and i 18 numerous closure and relocation of small medium size businesses from this City, 19 eroding the City' s property tax base significantly decreasing the income to the 20 from sales tax, utility users tax, licenr users fees making it extremely difficult ' 21 City to provide basic health and safety s to all of the residents of the City at 22 when crime and vandalism are increasing necessary to encourage local businesses 23 in the City to contribute to the revia of San Bernardino, by providing an 24 opportunity for them to do busines projects and to provide goods and ser� 25 City. 26 C. In an attempt to encourage business to the City to offset and discour 27 gang activity, drugs, vandalism, delinquency, joblessness and th, 28 whole neighborhoods by the DAB/bg [Preference.Ord] 1 197A� aEsr 1 residents, it is necessary to provide an incentive to do business on City projects and to 2 provide city goods and services. 3 SECTION 2. Section 3.04. 125 is hereby added to the San 4 Bernardino Municipal Code to read as follows: 5 113.04.125. Local Bidders. 6 "Any formal or informal bid submitted by a local bidder pursuant to this Chapter shall receive an eight 7 percent ( 8%) credit for comparison purposes with other bidders. For the purposes of this Section, "local 8 bidder" shall be a bidder with its primary place of business located within the City of San Bernardino at 9 the time of submitting the bid, or with a place of business in the City employing at least ten ( 10) full- 10 time employees at such time. " 11 SECTION 3. Section 12.20.040 is hereby added to the San 12 Bernardino Municipal Code to read as follows: 13 1112.20.040. Local Bidders. 14 "Any bid submitted by a local bidder for a public project pursuant to this Chapter shall receive an 15 eight percent ( 8%) credit for comparison purposes with other bidders. For the purposes of this Section, 16 "local bidder" shall be a bidder with its primary place of business located within the City of San 17 Bernardino at the time of submitting the bid, or with a place of business in the City employing at least ten 18 ( 10) full time employees at such time. " 19 20 21 22 23 24 25 26 27 28 DAB/bg (Preference.Ord] 2 January 7. 1994 1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING SECTIONS 3.04.125 AND 12.20.040 TO THE SAN BERNARDINO MUNICIPAL CODE 2 RELATING TO AN EIGHT PERCENT (8%) PREFERENCE FOR LOCAL BIDDERS ON CITY PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES AND 3 FOR PUBLIC PROJECTS. 4 I HEREBY CERTIFY that the foregoing Ordinance was duly 5 adopted by the Mayor and Common Council of the City of San 6 Bernardino at a meeting thereof, held on the 7 day of 1994, by the following vote, to wit: 8 Council Members: AYES NAYS ABSTAIN ABSENT 9 NEGRETE 10 CURLIN 11 HERNANDEZ 12 OBERHELMAN 13 DEVLIN 14 POPE-LUDLAM 15 MILLER 16 17 City Clerk 18 19 The foregoing Ordinance is hereby approved this day 20 of , 1994. 21 Tom Minor, Mayor 22 City of San Bernardino 23 Approved as to form and legal content: 24 JAMES F. PENMAN, 25 City Attorney 26 27 By: 28 DAB/bg (Preference.ord] 3 January 7. 1994 I ORDINANCE NO. 2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING SECTIONS 3.04.125, 3.04.130, 12.20.040 AND 12.20.050 TO THE SAN BERNARDINO 3 MUNICIPAL CODE RELATING TO A PREFERENCE FOR LOCAL BIDDERS ON CITY PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES AND FOR 4 PUBLIC PROJECTS. 5 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: 6 SECTION 1. Findings 7 The Mayor and Common Council of the City of San Bernardino 8 do find and declare as follows: 9 A. Firms and businesses located outside the City of San Bernardino do not pay the City' s Utility 10 Users Tax, the City Wide street Lighting and Street Sweeping Assessment, the various 11 landscaping and lighting district assessments, and the downtown parking district assessments, 12 all placing them at a significant advantage in relation to local firms and business which must 13 pay such exactions, when bidding on City projects or to supply City goods and services. In order 14 to equalize the position of all such bidders it is necessary to give local firms and businesses 15 a credit. 16 B. Businesses are leaving the City in record numbers, including the relocation of the Santa Fe 17 yards out of state, the closure of Norton Air Force Base and its attendant employment and the 18 numerous closure and relocation of small and medium size businesses from this City, all 19 eroding the City' s property tax base and significantly decreasing the income to the City 20 from sales tax, utility users tax, license and users fees making it extremely difficult for the 21 City to provide basic health and safety services to all of the residents of the City at a time 22 when crime and vandalism are increasing. It is necessary to encourage local businesses to remain 23 in the City to contribute to the revitalization of San Bernardino, by providing an increased 24 opportunity for them to do business on City projects and to provide goods and services to the 25 City. 26 C. In an attempt to encourage businesses to relocate to the City to offset and discourage increasing 27 gang activity, drugs, vandalism, crime, juvenile delinquency, joblessness and the abandonment of 28 whole neighborhoods by their owners and DAB/js (2Preference.Ordj 1 January 7, 1994 `Z- o"vretiA/ B-pr ✓es.S Assocmriow ?EQjos� I residents, it is necessary to provide an incentive to do business on City projects and to 2 provide city goods and services. 3 SECTION 2. Section 3.04. 125 is hereby added to the San 4 Bernardino Municipal Code to read as follows: 5 "3 .04.125. Local Bidders. 6 " ( a ) Any formal or informal bid submitted by a local bidder pursuant to this Chapter shall receive a 7 credit for comparison purposes with other bidders as specified in subsection (b) below. 8 " (b) ( 1 ) A bidder will receive a credit of 1% for 9 each successive year the bidder' s principal office has been located in the City of San Bernardino up to a 10 maximum of three years. 11 ( 2 ) In addition to ( 1 ) above, a bidder will receive a credit of 1% for each successive year that 12 the bidder has physically located 50% of its employees in offices located in the City of San Bernardino, up 13 to a maximum of three years. 14 (3 ) The documentary information justifying the credits to be given pursuant to this section shall be 15 provided in writing at the time the bid is submitted. 16 SECTION 3. Section 3.04. 130 is hereby added to the San 17 Bernardino Municipal Code to read as follows: 18 "3.04.130 Conflict of Interest. 19 "In addition to the prohibitions, regulations and restrictions imposed by state law, it shall be 20 unlawful for the Purchasing Agent or any person involved in the selection process of this Chapter to 21 offer, require, or receive rebates or kickbacks or to enter into business relationships with a person or 22 entity submitting a bid. It shall also be unlawful for any bidder or prospective bidder to offer or to 23 give rebates or kickbacks or to enter into business relationships with any person involved in the 24 selection process of this Chapter. " 25 SECTION 4. Section 12.20.040 is hereby added to the San 26 Bernardino Municipal Code to read as follows: 27 1112.20.040. Local Bidders. 28 " ( a ) Any bid submitted by a local bidder for a DAB/js (2Preference.Ord] 2 January 7. 1994 1 public project pursuant to this Chapter shall receive a credit for comparison purposes with other bidders as 2 specified in subsection ( a) below. 3 " (b) ( 1 ) A bidder will receive a credit of 1% for each successive year the bidder' s principal office has 4 been located in the City of San Bernardino up to a maximum of three years. 5 ( 2 ) In addition to ( 1 ) above, a bidder will 6 receive a credit of 1% for each successive year that the bidder has physically located 50% of its employees 7 in offices located in the City of San Bernardino, up to a maximum of three years. 8 (3 ) The documentary information justifying the 9 credits to be given pursuant to this section shall be provided in writing at the time the bid is submitted. 10 SECTION 5. Section 12. 20.050 is hereby added to the San 11 Bernardino Municipal Code to read as follows: 12 °12.20.050 Conflict of Interest 13 "In addition to the prohibitions, regulations and 14 restrictions imposed by state law, it shall be unlawful for any person involved in the selection 15 process of this chapter to, offer, require or receive rebates or kickbacks or to enter into business 16 relationships with a person or entity submitting a bid. It shall also be unlawful for any bidder or 17 prospective bidder to offer or to give rebates or kickbacks or to enter into business relationships with 18 any person involved in the selection process of this Chapter. " 19 20 21 22 23 24 25 26 27 28 DAB/js [2Preference.Ord] 3 January 7. 1994 I AN ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING SECTIONS 3.04.125, 3.04.130, 12.20.040 AND 12.20.050 TO THE SAN BERNARDINO 2 MUNICIPAL CODE RELATING TO A PREFERENCE FOR LOCAL BIDDERS ON CITY PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES AND FOR 3 PUBLIC PROJECTS. 4 I HEREBY CERTIFY that the foregoing Ordinance was duly 5 adopted by the Mayor and Common Council of the City of San 6 Bernardino at a meeting thereof, held on the 7 day of 1994, by the following vote, to wit: 8 Council Members: AYES NAYS ABSTAIN ABSENT 9 NEGRETE 10 CURLIN 11 HERNANDEZ 12 OBERHELMAN 13 DEVLIN 14 POPE-LUDLAM 15 MILLER 16 17 18 City Clerk 19 The foregoing Ordinance is hereby approved this day 20 of 1994. 21 22 Tom Minor, Mayor City of San Bernardino 23 Approved as to form 24 and legal content: 25 JAMES F. PENMAN, City Attorney 26 27 By: 28 DAB/is (2Preference.Ordl 4 January 7. 1994