HomeMy WebLinkAboutAGENDA REPORT 1995 0301 CC REG ITEM 11HCITY OF MOORPARK
AGENDA REPORT
TO: The Honorable City Council
FROM: Donald P. Reynolds Jr., Administrative Services M
DATE: February 17, 1995 (CC Mtg. 3/1/95)
SUBJECT: Consider City Policy for Buying Products from Local Vendors
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On February 13, 1995, the Budget and Finance Committee reviewed a draft administrative policy
requiring City staff to consider buying products from local vendors. The Committee agreed that
the draft policy was a good tool for staff to use, and recommended that it be forwarded to the full
Council.
Staff has to be careful to assure that the taxpayer is receiving the best benefit for their dollar. This
practice applies to all purchases. This concept can be accomplished through local vendors, and
the attached policy requires staff to "look local" before making a final decision.
City codes require that the net cost be evaluated. Providing local vendors with a one (1) percent
credit towards their bid when sales tax is applied, makes a local bid equal in net cost to the City
when compared to out -of -City purchases. This is the percentage that the City receives back from
the State of California.
Recommendation
That the City Council adopt the local purchasing policy as presented in the Administrative
Procedure attached to this report.
Attachment - Moorpark Administrative Procedure
AALPURCHCC.WPD
00157
MOORPARK
ADMINISTRATIVE PROCEDURES
ISSUED DATE
REVISION DATE
APPROVED BY
M.A.P. NO
SUBJECT: PAGE
LOCAL PROCUREMENT PREFERENCE PROCEDURES 1 of 2
PURPOSE
To provide a procurement policy which assures that local vendors are
considered when seeking quotes for goods or services related to all
City purchases which are not governed by or otherwise restricted by
state and /or federal laws. Certain credits will be applied to local
vendor's bid prior to award including (but not limited to) a one
percent credit where sales tax is applicable, and credit for delivery
charges and /or freight expenses for goods delivered to City facilities.
GUIDELINES
1. The term "Local Vendor" shall be defined as any business which is
permanently located, as a representation of a larger company
(branch or franchise establishment), or, as the primary
establishment, within the City's incorporated boundaries.
2. This MAP describes a preference policy, it does not authorize the
use of procedures which contradict any local, state or federal
procurement regulations. The procedures used for soliciting bids or
price quotes shall remain as specified in the Municipal Code
Chapter 3.04 "Purchasing." To accommodate this MAP, Section
3.04.120 "Exceptions to the Competitive Bidding Requirements,"
shall be applied as needed.
PROCEDURES
1. Solicitations for the procurement of all goods and services shall
include any local vendor which may be capable of providing the
specified good(s) or service(s). This will be accomplished by each
purchasing City employee who will identify local vendors by
referencing phone directories, the City Clerk's bid list, and /or
Business Registration list. This effort shall be recorded in
writing as part of the procurement process.
2. Language will be included in all formal bid solicitations
indicating that in calculating the net cost to the City, one
percent will be deducted from all taxable items, when purchased in
Moorpark. Verification that the taxable goods were purchased in
Moorpark may be required, per the special conditions of the
contract and /or purchase order.
MAP SUBJECT: LOCAL PROCUREMENT PREFERENCES PAGE
2 of 2
3. After the solicitation period has ended or bid process completed,
all local vendors shall be afforded a one percent credit if the
goods and services include a cost to the City for sales tax. This
consideration will be accomplished by multiplying the total cost of
the product which is subject to sales tax by the current sales tax
percentage applicable to the City minus one, (e.g., cost X (7.25
percent -1 percent) or cost X 6.25 percent). The net cost will then
be compared to other responses to determine the lowest responsible
bidder when applicable.
4. After the solicitation period has ended or bid process completed,
all local vendors shall be allowed a consideration for delivery
expenses from the vendor to the City where the City could save
expenses by providing its own transportation (assuming that the
City has the proper equipment to do so). The net cost to the City,
if applicable, will then be compared to other responses to
determine the lowest responsible bidder.
5. The City's purchasing agent or the delegated representative, shall
whenever possible, attempt to consolidate purchases into annual
blanket purchase orders, and invite regular annual competitive bids
from local vendors as well as others for these products. Examples
may include office products, printed materials and other consumable
items.
A: \LPURMAP
00, 5a