CC - Item 7A - Veteran Draft Ordinance Discussion E Me
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° ROSEMEAD CITY COUNCIL
civic BRIDE STAFF REPORT
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TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER
DATE: OCTOBER 8, 2019j.11•.A .
SUBJECT: VETERAN DRAFT ORDINANCE DISCUSSION
SUMMARY
This item is presented to the City Council at the request of Council Member Steven Ly. He
would like to discuss the attached draft ordinance.
DISCUSSION
The draft ordinance's main components include:
1. Adding an expanded local preference. Currently the City has a local vendor preference
for those businesses located in the City of Rosemead that respond to proposals for
services or purchase of items. This ordinance will expand the preference to all cities that
directly boarder the City.
2. Adding a Veteran preference in the review of proposals for services or purchase of items.
In general, the preference works as follows:
For Supplies and Equipment: if the lowest bid is within $10,000 or 5% which ever is less of a
veteran or local area bidder, the veteran or local area bidder may choose to reduce their bid to the
low bid.
For Service:
Because price is not the only factor considered in the award of services, staff in scoring
proposals will add 10% preference to the proposal of the veteran or local area vendor proposal.
Theveteran or local vendor must also agree to lower its proposal to the price of the best overall
proposal if the amount is lower.
AGENDA ITEM NO. 7A
City Council Meeting
October 8,2019
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PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Attachment A: Draft Ordinance
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1CIVIC 'PRIDE
PORATED 113°
Attachment A
Draft 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
VENDORS AND VETERAN VENDORS
THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES ORDAIN AS
FOLLOWS: .
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SECTION 1. Findings. The City Council finds{anddetermines as follows:
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A. The purpose of this ordinance is to contribute to tha.economic and social well-
being of all citizens in the City and by providing contracting preference for local
area vendors and veteran vendors located in the City anrin those cities contiguous
to
to Rosemead which together will further improve the City's
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B. As a market participant and pursuant to Ptublic:'Contract Code section 2002, the
City may award a contracting and purchas,mo-v5--be of rence to certain entities for the
purpose of: '_3 .
1. Encouraging City and regional economic development;
2. Assisting smai businesses which .by their nature are at a competitive
disadvantage, ;•
3. Levelilin'g the playing fieldlor local businesses whose costs of doing
businessin the area exceeds{those of non-local businesses that have the
:eff encies of s alecan location, ,
Providing to theICity localfeconornic benefit which is not provided by non-
- local businesses and A:6,z
5. Encouraging Military-service.
C. The City Council finds and determines that this ordinance is necessary to protect
the public peace, healthand safety of the City's citizens and residents.
D. Annually, theme-city Rosemead spends a considerable amount purchasing
supplies, equine
ntmaintenance services, public projects, and professional
services. A substantial portion of the funds used to make these purchases come
from taxes and fees derived from local area businesses and vendors.
E. The city council has determined that funds generated in the community should, to
the extent possible, be placed back in the local area economy. Retaining local
dollars within a community area reduces economic export, increases the financial
productivity of taxpayer dollars and increases the consumption of local area goods
and services while fostering a sustainable community.
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F. In working towards a sustainable economy, the city council recognizes that
sustainable procurement policies are an important early step on the city's path to
a sustainable community. Leveraging the purchasing power of the city to buy local
area products and services instead of products and services from outside the local
area, strengthens the local economic activity and employment as well as sets an
example that helps foster and maintain a vital economic community for future
generations.
G. The city council has determined that it is in the best interest of the city to give a
preference to local area vendors in making such purchases whenever the
application of such a preference is reasonable inlight of the dollar-value received
in relation to such expenditure.
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H. The city council further finds that this actioniis necessary to encourage, promote,
stimulate, preserve, and grow the local area economy`' „
I. The City Council also finds that providing preferences to ve er,an vendors will help
support those that have contributed greats Iy to the public safety and welfare of our
community and will assist in encouraging thosetoserve in the military and continue
to protect the public health and,welfare of ou City s residents.
SECTION 2. Statement of policy 3 .
A. It is the policofftthe�city to promote emPloqywQt arici business opportunities for
local area residents firms ion a non publ, c works contracts and give
preference tolocal area residents, wsorkers, businesses, vendors, contractors, and
consultants to°tree extentonsistentwith the law and interest of the public. It is
also the policy ofhe Citj tos�upport veterans that have contributed to the public
safety . t� g
,'Welfare ef<o44.>r communities.and to encourage those to serve in the
military with suchNpreferences. ;>
B. Localxarea vendors:and veteran vendors must otherwise normally qualify to receive
viwthe bid or quote for proposal pursuant to Chapters 3.24 of the city of Rosemead
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MunicipalCode and other applicable law.
C. The provisions of ,this Ordinance shall be construed and implemented in
accordance with ailicable federal and state laws.
SECTION 3. 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.
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SECTION 4. 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 5. 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. A:•-V-:•."
SECTION 6. Publication. The City Clerks directed totertify to the adoption of this
ordinance and publish in accordance with<law Wit` ,.
PASSED, APPROVED, AND ADOPTED this 8, day o :October 2019 .
Of:!-* %,...s;•4, ..,.
t `''. Margaret'Clark, Mayor
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ATTEST: , •,•,.•-i, '
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Erick Hernandez, City ` ;. }_:•
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APPROVEDf S.,TO FORM :
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Rachel H. Richman - V
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF ROSEMEAD )
I, Ericka Hernandez, City Clerk of the City of Rosemead, County of Los Angeles, State of
California, hereby attest to the above signature and certify that Ordinance No. 990 was
adopted by the City Council of the City of Rosemead at a regular meeting of said Council
held on the day of , 2019, by the following vote:
AYES: Councilmembers: ; ,
NOES: Councilmembers:
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ABSENT: Councilmembers: s = �� „..
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' ,, Ericka Hernandez, City''Clerk
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EXHIBIT A
3.24.120
A. Definitions.
"Local area vendor" means a vendor, contractor, or consultant who 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 holdta valid business license issued by
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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:a emnot verifiableland shall not be used for
the purpose of establishing such physical address. :;ice
"Solicitation" means the city's process to obta n bids, quotesproposals
, or as provided in
Chapter 3.24 for the purchase of goods or services
"Veteran" means a person who served n: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. N.!
"Veteran vendor" means'a business where at leask0%vof tie company is owned by a
Veteran. tre
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B. Local area vendor and veteran.business preference in purchasing supplies and
equipment ;
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f. In the solicitati n of'supplies and-equipment, as provided in Chapter 3.24, the
city councilor the city ma`°ager may a preference pursuant to this chapter to local
area vendor ora veteran vendor in Aking such purchase or awarding such contract.
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b. If the''vendor that.submits the lowest responsive bid or quote is not a local
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area vendor or veteran vendor" as defined herein, the lowest responsive bid or quote
submitted by a local area vendor or veteran vendor 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 arevendor 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 vendor or veteran 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 vendor or veteran vendor shall be given
the opportunity to match the bid or quote of the lowest bidder as set forth above, providing
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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 vendor or veteran vendor to be eligible to claim the
preference, the local area vendor or 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 or veteran vendor verification.
C. Local area vendor and 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 may give a preference,
pursuant to this chapter to local area vendors or veteran vendors in making such purchase
or awarding such contract. tkit
b. The equivalent of a (10%) to percent preferencewk be added to final
evaluated score of each local area vendororveteran vendor. If the (�10/o) ten percent
preference causes the local area vendor or veteran ven or<to have the�best overall score,
the local area vendor or veteran aulor may be ee ed the vendor that est serves the
needs of the city and provides the, city with the highest quality and cost effectiveness.
However, said local area vendor or veteran�yendor must'e.lect to reduce the price portion
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of its bid, quote, or proposal to matche pr ceportion of current best overall score vendor
if lower, in writing, within;one business day (excluding weekends and holidays) of being
notified of their stats,by`t a city.
c. If the locate:area vendor or veteran.vendor does not elect to reduce the price
portion of its bid, quote 4r,tproposal tto match-111p price portion of the lowest bidder, then
the next lowest local arettvgrldzOWVeteranVendor shall be given the opportunity to
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match thee puce portion of theillowest bidde-r•. s sset forth above, provided the (10%) ten
percent reference causes sa ddlocal area vendor or veteran vendor to have the best
overall score, and prow dedlthe localarea vendor or veteran vendor is deemed the vendor
that best "ewes the needs of,the 8Mand provides the city with the highest quality and
cost effectiveness.s.
d. In order:for a local area vendor or veteran vendor to be eligible to claim the
preference, the local a ea ve dor or veteran vendor must request the preference in the
response to the solicitationand provide a copy of its current business license issued by
a qualifying city or veteran vendor verification.
D. Exceptions to local area vendor, veteran vendor preference policy.
The local preference set forth in this chapter shall not apply to the following
purchases or contracts:
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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 vendor and' rieteran 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,,cncil s discretion.
E. Quality and fitness.
The local preference set forth in this chapter shalllin 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, characterresponsibility and fitness of all persons, firms,
or corporations submitting bids or pr posalsP..In addition, the preferences set forth in this
chapter shall in no way be construed to. prohib t the,,rriightHo he city council or the city
manager from givingany others referencepermittedtby law or this title.
F. Application. OY
The locallarea vendor and ve an vendorpreference provided in this chapter shall
apply to"new c contracts-for supplies, equiment,and services first solicited on or after the
effects a date of this drdinanceThis chaptershall be implemented in a manner consistent
with othe._ rise applicable4provisions ;
G. Verification local areavendor and veteran vendor preference eligibility.
Any vendor,eontractorr,or consultant claiming to be a local area vendor or veteran
vendor shall so certifybid, i
in the� n writing to the city manager. The city manager shall not
be required to verify the•'accu acy or any such certifications, and shall have sole discretion,
to determine if a vendor, or consultant meets the definition of "local area
vendor" or "veteran vendor". The decision of the city manager declaring that any person
or business is not a local area vendor or veteran vendor shall be final.
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