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

Department of Finance 2 BACKGROUND 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

Department of Finance BACKGROUND Spending Trend for the Last Seven Years In 2013, a major purchase was made for approximately $60,000,000 to support the Glenarm Repowering Project.

Department of Finance 4 Revised Reporting Methodology 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

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

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

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

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

Department of Finance 9 Revised Reporting Methodology Local Spending Trend

Department of Finance 10 Revised Reporting Methodology Local Spending Trend (cont.)

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

Department of Finance 12 Pasadena First Buy Local 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

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

Department of Finance 14 Pasadena First Buy Local Local Business Directory (Pasadena Virtual Mall) Increase Use of Bid Notification System Additional 50 Pasadena businesses (7.4 % increase) registered in Bid Notification System General Outreach Areas (cont.)

Department of Finance 15 Pasadena First Buy Local 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

Department of Finance 16 Pasadena First Buy Local First Source Local Hiring Total $3,738,787 in wages to Pasadena residents since inception. 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

Department of Finance 17 Advisory Group 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