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CC - Item 4D - Second Reading of Ordinance No. 990 - Veteran Vendor Preference in Non-public Works City Contracting Procedures r r- s M A -10'... .q ,,,S >,, ,,........ ) ROSEMEAD CITY COUNCIL PRLDE. STAFF REPORT ,kCORPORATED''') TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: GLORIA MOLLEDA, CITY MANAGER,J . DATE: DECEMBER 10, 2019 SUBJECT: ORDINANCE NO. 990 - SECOND READING AND ADOPTION: AMENDING CHAPTER 3.24 TO TITLE 3 OF THE ROSEMEAD MUNICIPAL CODE CREATING A LOCAL AREA VETERAN VENDOR PREFERENCE IN NON-PUBLIC WORKS CITY CONTRACTING PROCEDURES SUMMARY On November 12, 2019, the City Council introduced for first reading, by title only, Ordinance No. 990, by amending Chapter 3.24 to Title 3 of the Rosemead Municipal Code creating a local area veteran vendor preference in non-public works city contracting procedures. STAFF RECOMMENDATION It is recommended that the City Council approve the second reading and adoption of Ordinance No. 990 by title only, entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AMENDING CHAPTER 3.24 TO TITLE 3 OF THE ROSEMEAD MUNICIPAL CODE RELATING TO PREFERENCES FOR LOCAL AREA VETERAN VENDORS FISCAL IMPACT -None PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: ;: it Ericka Hernandez, City Clerk Attachment A: Ordinance No. 990 AGENDA ITEM 4.D 4. k*MBiii '9 It..,.,.: CIVIC PRIDE - iiM.07 ikil 'NC1161 ORPORATED X959 Attachment A Ordinance No. 990 ORDINANCE NO. 990 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AMENDING CHAPTER 3.24 TO TITLE 3 OF THE ROSEMEAD MUNICIPAL CODE RELATING TO PREFERENCES FOR LOCAL AREA VETERAN VENDORS THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES ORDAIN AS FOLLOWS: SECTION 1. Findings. The City Council finds and determines as follows: The purpose of this ordinance is to contribute to the social well-being of all residents in the City and to further improve the City's public health, safety and welfare by providing a preference in certain City contracting procedures to local area veteran vendors who have served our Country in the military and thereby enabled our community to be secure and to prosper. SECTION 2. Environmental Review. The City Council exercises its independent judgment and finds that this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3: (1) Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); and (2) Section 15060(c)(3) (the activity is not a project as defined in Section 15378), because the subject regulations have no potential for resulting in any significant physical change to the environment, directly or indirectly. SECTION 3. Amending Chapter 3.24. The Rosemead Municipal Code is amended to add Chapter 3.24 to Title 3 to read as shown in Exhibit A. SECTION 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase, or portion of this ordinance is, for any reason, held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional or invalid or ineffective. To this end the provisions of this ordinance are declared to be severable. SECTION 5. Publication. The City Clerk is directed to certify to the adoption of this ordinance and publish in accordance with law. PASSED, APPROVED, AND ADOPTED this 10th day of December, 2019. Margaret Clark, Mayor ATTEST: Erick Hernandez, City Clerk APPROVED AS TO FORM Rachel H. Richman City Attorney STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF ROSEMEAD ) I, Ericka Hernandez, City Clerk of the City of Rosemead, California, do hereby certify that the foregoing Ordinance No. 990 was regularly introduced and placed upon its first reading at a regularly meeting of the City Council on the 12th of November 2019. That after said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 10th of December 2019 by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk EXHIBIT A 3.24.120 A. Definitions. "Local area veteran vendor" means a veteran vendor, as defined herein, who is a contractor, or consultant that has a valid physical business address located within the boundaries of the city of Rosemead or within any of the cities that directly boarder the City which include, Alhambra, Montebello, Monterey Park, San Gabriel, Temple City, El Monte and South El Monte, at least six months prior to bid or proposal opening date, from which the vendor, contractor, or consultant operates or performs business on a day-to-day basis, and holds a valid business license issued by the city of Rosemead or one of cities listed above, and designates, for sales tax purposes, the city of Rosemead or one of the cities listed above, as the point of sale for retail transactions within the city. Post office boxes are not verifiable and shall not be used for the purpose of establishing such physical address. "Solicitation" means the city's process to obtain bids, quotes, or proposals as provided in Chapter 3.24 for the purchase of goods or services. "Veteran vendor" means a person who served in the active military, naval, or air service and who was discharged or released under conditions other than dishonorable as verified by a Form DD214 or other acceptable proof of service, who owns a business where at least 50% of the company is owned by a Veteran. B. Local area veteran vendor preference in purchasing supplies and equipment. a. In the solicitation of supplies and equipment, as provided in Chapter 3.24, the city council or the city manager or his/her designee may give a preference pursuant to this chapter to local area veteran vendor in making such purchase or awarding such contract. b. If the vendor that submits the lowest responsive bid or quote is not a local area veteran vendor as defined herein, the lowest responsive bid or quote submitted by a local area veteran vendor (if there is one) that is within five percent or $10,000, whichever is less, of the lowest bid or quote may be deemed to be the lowest bidder. However, said local area veteran vendor must elect to reduce its bid or quote to match the bid or quote of the lowest bidder, in writing, within one business day (excluding weekends and holidays) of being notified of their status by the city. c. If the lowest local area veteran vendor within five percent or $10,000 of the lowest bid or quote does not elect to reduce its bid or quote to match the bid or quote of the lowest bidder, then the next lowest local area veteran vendor shall be given the opportunity to match the bid or quote of the lowest bidder as set forth above, providing that this local area vendor or veteran vendor is also within five percent or$10,000 whichever is less, of the lowest bid or quote that has been deemed responsive. d. In order for a local area veteran vendor to be eligible to claim the preference, the local area veteran vendor must request the preference in the response to the solicitation and provide a copy of its current business license issued by a qualifying city and veteran vendor verification. C. Local area veteran vendor preference in services. a. In the solicitation of contracts based on evaluation criteria which best serves the needs of the city and provides the city with the highest quality and cost effectiveness, as provided in this title, the city council or the city manager or his or her designee may give a preference pursuant to this chapter to a local area veteran vendor in making such purchase or awarding such contract. b. The equivalent of a (10%) ten percent preference will be added to final evaluated score of each local area veteran vendor. If the (10%) ten percent preference causes the local area veteran vendor to have the best overall score, the local area veteran vendor may be deemed the vendor that best serves the needs of the city and provides the city with the highest quality and cost effectiveness. However, said local area veteran vendor must elect to reduce the price portion of its bid, quote, or proposal to match the price portion of current best overall score vendor if lower, in writing, within one business day (excluding weekends and holidays) of being notified of their status by the city. c. If the local area veteran vendor does not elect to reduce the price portion of its bid, quote, or proposal to match the price portion of the lowest bidder, then the next lowest local area veteran vendor shall be given the opportunity to match the price portion of the lowest bidder as set forth above, provided the (10%) ten percent preference causes said local area veteran vendor to have the best overall score, and provided the local area veteran vendor is deemed the vendor that best serves the needs of the city and provides the city with the highest quality and cost effectiveness. d. In order for a local area veteran vendor to be eligible to claim the preference, the local area veteran vendor must request the preference in the response to the solicitation and provide a copy of its current business license issued by a qualifying city and veteran vendor verification. D. Exceptions to local area veteran vendor preference. The local preference set forth in this chapter shall not apply to the following purchases or contracts: a. Supplies, equipment, and services provided under a cooperative purchasing agreement; b. Purchases or contracts which are funded in whole or in part by a governmental entity, such as the State or Federal government and the laws, regulations, or policies governing such funding prohibit application of a local preference; c. Purchases made or contracts let under emergency or noncompetitive situations; d. Purchases with an estimated cost of five thousand dollars or less; or e. Application of the local area veteran vendor preference to a particular purchase, contract, or category or contracts for which the city council is the awarding authority may be waived at the city council's discretion. E. Quality and fitness. The local preference set forth in this chapter shall in no way be construed to inhibit, limit or restrict the right and obligation of the city council and the city manager to compare quality and fitness for use of supplies, equipment, and services proposed for purchase and compare the qualifications, character, iresponsibility, and fitness of all persons, firms, or corporations submitting bids or proposals. In addition, the preferences set forth in this chapter shall in no way be construed to prohibit the right of the city council or the city manager from giving any other preference permitted by law or this title. F. Application. The local area veteran vendor preference provided in this chapter shall apply to new contracts for supplies, equipment, and services first solicited on or after the effective date of this ordinance. This chapter shall be implemented in a manner consistent with otherwise applicable provisions. G. Verification of local area veteran vendor preference eligibility. Any vendor, contractor, or consultant claiming to be a local area veteran vendor shall so certify in the bid, in writing to the city manager or his or her designee. The city manager or his or her designee shall not be required to verify the accuracy or any such certifications, and shall have sole discretion to determine if a vendor, contractor, or consultant meets the definition of"local area veteran vendor". The decision of the city manager declaring that any person or business is not a local area veteran vendor shall be final.