HomeMy WebLinkAboutNS-2828 - Amending Article VII.II of Chapter 2 of Santa Ana Municipal Code, Establishing A Preference for Local Businesses...zi?i i 2
ORDINANCE NO. NS-2828
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA AMENDING ARTICLE VII.11
OF CHAPTER 2 OF THE SANTA ANA MUNICIPAL
CODE, ESTABLISHING A PREFERENCE FOR
LOCAL BUSINESSES IN THE PROCUREMENT OF
MATERIALS, SUPPLIES, LABOR, EQUIPMENT OR
SERVICES
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds,
determines and declares as follows:
A. The City of Santa Ana encourages businesses to locate in the City and
desires to support businesses located in the City of Santa Ana and the
surrounding Orange County area; and
B. An examination of contracts awarded by the City indicates that local
businesses are under-represented in providing goods and services to
the City; and
C. Awarding contracts to local businesses promotes not only those local
businesses, but also simulates economic activity throughout the
community as the City directly invests in its local businesses; and
D. The investment in local businesses results in a multiplier effect arising
from those businesses increasing purchases of materials, supplies,
equipment and labor from other local sources, resulting in the re-
circulation of local dollars in the local economy; and
E. As a result of additional local opportunities, household spending
increases, which increases taxable transactions occurring in the local
community; and
F. Providing a bid preference for small local businesses will increase the
number of local businesses that participate in City contracting, which
will increase the circulation of city dollars, stimulate a stronger
economic base and decrease the unemployment rate in the City_
Ordinance No. NS- 2828
Page 1 of 7
Section 2. The adoption of this ordinance is exempt from CEQA and a
Notice of Exemption will be filed if this ordinance is adopted.
Section 3. Section 2-802 of the Santa Ana Municipal Code is hereby
amended such that it reads as follows (new language in bold, deleted language
in strikeout for tracking purposes only):
Sec. 2-802. Definitions
For purposes of this article, the following definitions shall apply:
Agency shall mean the Executive Director of the City agency or
department which has responsibility for awarding a contract for services.
Agreement or contract shall mean a legal contract which complies fully
with the provisions of section 421 of the city's charter and this article. The words
agreement and contract may be used interchangeably in this article.
E/ectronic shall mean electrical, digital, magnetic, optical, electromagnetic,
or any other similar technology-
Loca/ Business shall mean a business certified by the State Department of
General Services as a Small Business, which has a substantial presence through
either a headquarters or branch office within the geographical boundaries of the
City, and which headquarters or branch office was established prior to the city
inviting bids for the respective procurement. Said business must possess a current
business license and certificate of occupancy. For purposes of this ordinance, a
Post Office box address within the City shall not qualify as a valid business location.
Materia/s, supplies, labor and equipment shall mean those goods or
services, but excluding services and public works construction, that are readily
ascertainable and measurable by an objective standard in terms of quantity or
quality so as to be susceptible to competitive bidding.
Orange County Business shall mean a business certified by the State
Department of General Services as a Small Business, which has a substantial
presence through either a headquarters or branch office within the geographical
boundaries of Orange County, and which headquarters or branch office was
established prior to the City inviting bids for the respective procurement. Said
business must possess a current business license to perform work in Santa Ana.
For purposes of this ordinance, a Post Office box address within the County shall
not qualify as a valid business location.
Ordinance No. NS- 2828
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Pub/ic notice shall mean the distribution or dissemination of information to
interested parties using methods that are reasonably available. Such methods
can include publication in newspapers of general circulation, electronic or paper
mailing lists, and web site(s) designated by the city and maintained for that
purpose.
Purchasing manager shall mean that city employee or official so
designated by the city manager and authorized to carry out the responsibilities
under this article, including the promulgation and enforcement of administrative
procedures.
Purchase order (PO) shall mean that standardized contract developed
pursuant to subsection 2-803Q) issued to the vendor of materials, supplies, labor
and equipment.
Services shall mean the furnishing of labor, time, or effort by a contractor,
not involving the delivery of a specific end product other than reports which are
merely incidental to the required performance. Services are of an advisory
nature, provide a recommended course of action or personal expertise, have an
end product comprised of a transmittal of information, written or verbal, and that
is related to the governmental functions of administration, management, program
management or innovation. The product may include anything from answers to
specific questions to design of a system or plan, and includes provision of
workshops, seminars, retreats, and conferences for which expertise is
necessary. This term shall not include employment agreements or collective
bargaining agreements. This term shall not include contracts for the construction,
alteration, improvement, repair, or maintenance of real or personal property.
Section 4. Section 2-803.1 is added to Chapter 2 of the Santa Ana
Municipal Code to read in full as follows:
Section 2-803.1 Local Preference in Contracts for Materials, Supplies,
Labor and Equipment.
Except for those contracts for which the Charter of the City of Santa Ana
prohibits the provision of a local preference, and/or those contracts funded
through programs or partners which prohibit the use of a local preference, the
City Council authorizes the purchasing manager to extend a preference to Local
Business and Orange County Business as set forth herein.
(a). In the procurement of material, supplies, labor and equipment
involving expenditures between five thousand dollars ($5,000.00) and one
hundred thousand dollars ($100,000.00), the purchasing manager shall extend a
preference to each local business and each Orange County business, which
preference shall be applied to the bid which provides maximum quality at
Ordinance No. NS- 2828
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minimum price. Said preference shall be set by Resolution of the City Council.
(b). If the bidder submitting the maximum quality at minimum cost bid is
not a local business or an Orange County business, and if a local business or an
Orange County business has submitted a responsive and responsible bid, and
with the benefit of the applicable preference, the bid submitted by local business
or Orange County business is equal to or less than the original maximum quality
at minimum cost bid, the contract shall be awarded to the local business or the
Orange County business at its submitted bid price. If two (2) or more low bids
received are equal after the application of the preference, the contract shall be
awarded in the following order:
1) to a local business
2) to an Orange County business
3) to the bidder submitting the maximum quality at minimum cost
bid.
The city shall reserve the right to reject any or all bids.
(c). In order for the preference to apply, a bidder must certify under
penalty of perjury, that the bidder qualifies as a local business or Orange County
business. The preference is waived if the certification does not appear on the bid.
Section 5. Section 2-805 of the Santa Ana Municipal Code is hereby
amended such that it reads as follows (new language in bold, deleted language
in strikeout for tracking purposes only):
Sec. 2-805. Procurement of materials, supplies, labor, and equipment between
five hundred dollars ($500.00) and twenty-five thousand dollars ($25,000.00).
(a) For those agreements exceeding five hundred dollars ($500.00) but
not exceeding five thousand ($5,000.00), the city manager may bind the city on
contracts for materials, supplies, labor, and equipment in amounts not exceeding
five thousand dollars ($5000.00) in any one contract or in the aggregate with any
one vendor or service provider. These contracts can be entered into
administratively without the need for informal or formal bidding.
(b) Unless exempt from bidding pursuant section 2-807, all contracts
involving an expenditure between five thousand dollars ($5,000.00) and twenty-
five thousand dollars ($25,000.00) for materials, supplies, labor, and equipment
shall be let on the basis of obtaining maximum quality at minimum cost in
accordance with procedures established by the purchasing manager. Those
procedures shall provide for at a minimum the following:
Ordinance No. NS- 2828
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2/7/ 1 2
(1) There shall be a written or verbal invitation for bid which shall
include the following information: A general description of the things
to be purchased or project, the time and place for bid opening when
applicable, bid instructions, and the terms and conditions of the bid
and any resulting contract. The purchasing manager shall make a
good faith effort to notify all businesses engaged in providing such
materials, supplies, labor, and equipment located within the
boundaries of the city of the opportunity to bid.
(2) Where required by state or federal law or regulations, or upon
request by a bidder, the bids shall be opened, if sealed, and
declared in public at the time and place stated on the "Invitation for
Bid."
Section 6. Section 2-806 of the Santa Ana Municipal Code is hereby
amended such that it reads as follows (new language in bold, deleted language
in strikeout for tracking purposes only):
Sec. 2-806_ Procurement of materials, supplies, labor, and equipment in excess
of twenty-five thousand dollars ($25,000.00).
Unless exempt from bidding pursuant to section 2-807, all contracts
involving an expenditure in excess of twenty-five thousand dollars ($25,000.00)
for materials, supplies, labor, and equipment shall be let on the basis of obtaining
maximum quality at minimum cost, in accordance with procedures established by
the purchasing manager. Those procedures shall provide for at least the
following:
(a) Public notices inviting bids shall include a general description of the
things to be purchased and the time and place for bid opening.
Adequate public notice of the invitation for bids shall be given a
reasonable time prior to the date set forth therein for the opening of
bids, in accordance with regulations established by the purchasing
manager. To the extent that public notice is by way of publication in
a newspaper of general circulation, such publication shall be for at
least two (2) days, the first of which shall be at least ten (10) days
before the date set for opening bids.
(b) Invitation of bids shall be mailed or transmitted by other means
established by the administrative code but not recited over the
telephone or in person. Any interested bidder may obtain an
invitation for bid.
(c) All bids shall be submitted sealed in accordance with the
instructions contained in the "Invitation for Bid" form.
Ordinance No. NS- 2828
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(d) The bids shall be opened in public, at the time and place stated on
the "Invitation for Bid." All bids shall be publicly declared.
Section 7. Section 2-808 is added to Chapter 2 of the Santa Ana
municipal Code to read in full as follows:
. Section.2-808 Local Preference in Contracts for Services
Except for those contracts for which the Charter of the City of Santa Ana
prohibits the provision of a local preference, and/or those contracts funded
through programs or partners which prohibit the use of a local preference, the
City Council authorizes the Agency to extend a preference to Local Business and
Orange County Business as set forth herein.
(a) Contracts for services shall be awarded on the basis of
demonstrated competence and on the professional qualifications necessary to for
the satisfactory performance of the services required. In evaluating proposals for
service contracts in amounts up to one hundred thousand dollars ($100,000.00),
proposers which qualify as Local Business or Orange County Business shall be
eligible for preference points. The preference shall be added to the proposal to
reach a final score in determining the most advantageous proposal. Said
preference shall be set by Resolution of the City Council.
(b). A non local proposer associating with a Local Business or
Orange County Business, shall be eligible for the local preference if a
minimum of fifty percent (50%) of the contract value will be performed by the
Local Business or Orange County Business.
Section 8. Any provision of the Code that is inconsistent with the
provisions of this Ordinance, to the extent of such inconsistencies and no
further, is hereby repealed or modified to that extent necessary to effect the
provisions of this Ordinance.
Section 9. If any section, subsection, sentence, clause, phrase or portion of
this ordinance is for any reason held to be invalid or unconstitutional by the decision
of any court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Santa Ana
hereby declares that it would have adopted this ordinance and each section,
subsection, sentence, clause, phrase or portion thereof irrespective of the fact that
any one or more sections, subsections, sentences, clauses, phrases, or portions be
declared invalid or unconstitutional.
Ordinance No. NS- 2828
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2/7/12
Section 10. This ordinance shall become effective thirty days after its
adoption by the City Council.
ADOPTED this 19th day of March 2012
' uel A. Pulido
ayor
APPROVED AS TO FORM:
Joseph Straka, Interim City Attorney
I c?
Laura Sheedy
Assistant City Atto ey
YES: Councilmembers: Alvarez. Bustamante. Tinaiero. Pulido (4)
NOES: Councilmembers: None (O)
ABSTAIN: Councilmembers: None (O)
NOT PRESENT: Councilmembers: Benavides. Martinez. Sarmiento (3)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the
attached Ordinance No. NS-2828 to be the original ordinance adopted by the
City Council of the City of Santa Ana on March 19, 2012 and that said ordinance
was published in accordance with the Charter of the City of Santa Ana.
Date: ?/?fo`?o? z- ??L1 ?Q .%? ;(??'?.Zw?-
Clerk of the Council
City of Santa Ana
Ordinance No. NS- 2828
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