Local Preference Purchasing Ordinance City of Salinas

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

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

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

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 Contact Purchasing at

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