Item No:††††††† ††††††††††† 5E.
Meeting Date:†††††††††† July 23, 2012
From:††††††††††††††††††††††††† Mike Thornton, Purchasing Manager
Subject:††††††††††††††††††††† Resolution rescinding the Local Business Enterprise Policy and adopting a new Local Vendor Preference Policy related to the acquisition of goods and services.
At the direction of the City Commission, staff presents this resolution for adoption of a Local Vendor Preference Policy.
On July 27, 2009 Commission approved resolution 8493 adopting a Local Business Enterprise (LBE) Policy.† On at least two occasions, the current LBE policy has fallen short of providing a benefit to Local Vendors in the Cityís bid process.† The Commission directed staff to rework the current LBE policy to be more favorable to local vendors.
Staff prepared the attached Local Vendor Preference Policy for consideration.† The attached resolution rescinds the previously adopted LBE policy and adopts a new simpler Local Vendor Preference (LVP) policy, one that should be more favorable to local vendors.
Staff has surveyed other agencies in the area to see what LVP programs they offer, if any.† The results of those surveys are summarized in the table included in this memorandum.† Staff has identified the LVP program used by the City of Gainesville as being the simplest and offering a generous percentage for local vendors to obtain the preference.
The LVP presented will provide two tiers of Local Vendors.† A Tier I Local Vendor will be located within the City of Leesburg or receive one or more utility services from the City.† A Tier I Local Vendor will receive a 5% preference on all competitive solicitations of $25,000 or more.† The preference amount will never exceed $25,000 (equal to 5% of the first $500,000).† On competitive Request for Proposalís (RFPs) and Request for Qualifications (RFQs), local vendors will be given a 10 point preference in the evaluation criteria for locale.† Non-local vendors will receive no additional points for locale in an RFP or RFQ.
A Tier II Local Vendor will not meet the requirements of a Tier I Local Vendor, but will be located within a 20-mile radius of the intersection of 14th Street and Main Streets.† A Tier II Local Vendor will receive a 2% preference on all competitive solicitations of $25,000 or more.† The preference amount will never exceed $10,000 (equal to 2% of the first $500,000).† On competitive Request for Proposalís (RFPs) and Request for Qualifications (RFQs) local vendors will be given a 4 point preference in the evaluation criteria for locale.† Non-local vendors will receive no additional points for locale in an RFP or RFQ.
As written, the LVP will apply to purchases between $25,000 and $500,000.† The percentage preference, or any preference, for either tier vendor will not be applicable for purchases exceeding $500,000.
1.† Adopt the new Local Vendor Preference Policy as written and presented; or
2.† Such alternative action as the Commission may deem appropriate
The actual fiscal impact to the City cannot be determined.† The City could end up paying more for some projects should the Local Vendor Preference policy be applicable.† Staff recommends providing vendor workshops and education sessions to educate local vendors on doing business with the City.† Educating vendors on the sealed bid process is an effective method to making them more successful and winning City business by being the low bidder.
Since October 2, 2009 the City has had approximately 40 projects or purchases exceeding the $25,000 value.† Of those projects, staff estimates 15 could not have been provided by a local vendor or were grant funded and the LVP could not have been used.† There are approximately 35 projects where the LVP could have been applicable if the local vendor was within the 5% preference.
Department: _City Manager___________
Prepared by:† _Mike Thornton__________†††††††††††††††††††††
Attachments:†††††††† Yes__X_†† No ______
Advertised:†† ____Not Required __X___†††††††††††††††††††††
Attorney Review :†††††† Yes___† No ____
Reviewed by: Dept. Head ________
Finance† Dept. __________________††††††††††††††††††††††††††††††††††† †
Deputy C.M. ___________________††††††††††††††††††††††††††††††††††††††††† †††††††††††††††††††††††††††††††
City Manager ___________________
Account No. _____N/A_________
Project No. ______N/A___________
WF No. ______________________
RESOLUTIONOF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, RESCINDING THE LOCAL BUSINESS ENTERPRISE POLICY AND ADOPTING A NEW LOCAL VENDOR PREFERENCE POLICY RELATED TO THE ACQUISITION OF GOODS AND SERVICES; AND PROVIDING AN EFFECTIVE DATE.
††††††††††† WHEREAS, the City of Leesburg has heretofore adopted and amended formal policies for the purchase of items and services, and
††††††††††† WHEREAS, the City of Leesburg on July 27, 2009 adopted resolution 8493 which replaced an existing Local Vendor preference policy with a Local Business Enterprise policy, and
††††††††††† WHEREAS, the City of Leesburg desires by means of this resolution to replace the Local Business Enterprise policy with a standard Local Vendor preference policy, and
††††††††††† WHEREAS, this resolution in its entirety shall supersede and replace all previous resolutions or sections of resolutions that address purchasing policy related to local vendor preference or any purchase policy related to a locale based vendor preference for any and all purchases of items and services.
NOW, THERFORE BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
††††††††††† THAT the commission recognizes local business and business with a local presence contribute to the Leesburg economy through spending, employment and civic involvement.† The commission further recognizes City staff and elected officials must be vigilant and be good stewards of taxpayer money.† These two functions must be balanced and not conflict with one another.
††††††††††† THAT the attached policy will define and outline the application of a local vendor preference and is hereby adopted in replacement of the policy formerly promulgated under Resolution 8493.
††††††††††† †THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __23rd__ day of __July _ 2012.