HomeMy WebLinkAbout1756 - ORDINANCES - 2/18/2009 ORDINANCE NO. 1756
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING SECTIONS 7.01.040 AND
7,09.030 OF, AND ADDING SECTION 1.01231 TO THE
PALM SPRINGS MUNICIPAL CODE., ESTABLISHING A
LOCAL BUSINESS PREFERENCE PROGRAM.
City Attorney Summary
This Ordinance establishes a preference program for
businesses located in the Coachella Valley in the purchase of
supplies, materials, equipment, and contractual services.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ORDAINS!
SECTION 1. Section 7.01.040 is amended by adding the following definitions:
"Director" means the City Manager or the City Manager's designee.
"Coachella Valley" means the area between the Salton Sea on the south, the San
Jacinto and Santa Rosa Mountains on the west, and the Little San Bernardino Mountains
on the east and north. For the purposes of this definition, "Coachella Valley" includes the
cities of Beaumont and Banning and the unincorporated areas between Banning and the
City of Palm Springs.
"Local Business" means a vendor, contractor, or consultant who has a valid physical
business address located within the Coachella Valley, 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 by a
jurisdiction located in the Coachella Valley. Post office boxes are not verifiable and shall
not be used for the purpose of establishing such physical address.
"Solicitation" shall mean the City's process to obtain bids or proposals as provided in
this Title for the purchase of goods or services.
SECTION 2. Section 7.09.030 of the Palm Springs Municipal Code is amended to read-
7.09.030 Local Business Preference Program.
(1) Findings-
(a) The City annually spends significant amounts on purchasing supplies, materials,
and equipment, and contractual and professional services. The dollars used in
making these purchases are derived in large measure from taxes and fees derived
from Local Businesses and the City Council has determined that funds generated in
the community should, to the extent possible, be placed back in the local economy.
Therefore, the City Council has determined that it is in the best interest of the City to
Ordinance No. 1756
Page 2
give a preference to Local Businesses in making such purchases whenever the
application of such a preference is reasonable in light of the dollar-value received in
relation to such expenditure.
(b) The City Council furtherfinds that the Coachella Valley is in a state of economic
depression and many local businesses have been forced to close their doors due to
severe financial losses. Many of these local business establishments have been
doing business in the Coachella Valley for many years. The City Council finds that
the City should promote and stimulate local businesses by requiring that purchases of
supplies, materials, and equipment and contractual services be acquired from Local
Businesses.
(c) The City Council further finds that this action is necessary to grow the local
economy and preserve the local businesses that have diligently served the Coachella
Valley for many years.
(d) Strategies that encourage people to buy locally are an important component of
economic sustainability. Retaining local dollars within a community reduces economic
export and increases the financial productivity of taxpayer dollars and increases the
consumption of local goods and services while fostering a sustainable community. In
working towards a sustainable economy, the City Council recognizes that sustainable
procurement policies are an important early step on the Palm Springs Path to a
Sustainable Community. By leveraging the purchasing power of the City to buy local
products and services instead of products and services from outside the Coachella
Valley it 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.
(2) Statement of Policy. It is the policy of the City to promote employment and business
opportunities for local residents and firms on all contracts and give preference to local
residents, workers, businesses, contractors, and consultants to the extent consistent with
the law and interests of the public.
(3) Local Preference in Purchasing. In the bidding of, or letting for procurement of,
supplies, materials, and equipment, as provided in this Title, the City Council or the
Director may give a preference to Local Businesses in making such purchase or awarding
such contract in an amount not to exceed five (5%) percent of the Local Business'total bid
price, or$15,000.00, whichever amount is lower. Total bid price shall include only the base
bid price but also adjustments to that base bid price resulting from alternates requested in
the Solicitation. In order for a Local Business to be eligible to claim the preference, the
business must request the preference in the Solicitation response and provide a copy of its
current business license from a jurisdiction in the Coachella Valley.
(4) Local Preference in Services. In awarding contracts for services, including consultant
services, preference to Local Business shall be given whenever practicable pursuant to this
Title consistent with the Statement of Policy in subsection (2) above. The contractor or
Ordinance No. 1756
Page 3
consultant will also, to the extent legally possible, solicit applications for employment and
proposals for subcontractors and subconsultants for work associated with the proposed
contract from local residents and firms as opportunities occur and hire qualified local
residents and firms whenever feasible. In order for a Local Business to be eligible to claim
the preference, the business must request the preference in the Solicitation response and
provide a copy of its current business license from a jurisdiction in the Coachella Valley-
(6) Local Preference in Public Works Contracts (Sub-Contracting_ The prime
contractor shall use good faith efforts to sub-contract the supply of materials and
equipment to local business enterprises and to sub-contract services to businesses whose
work force resides within the Coachella Valley. The prime contractor shall submit evidence
of such good faith efforts at the time of submission of bids. Good faith efforts may be
evaluated by placing advertisements inviting proposals in local newspapers, sending
request for proposals to local sub-contractors, or by demonstrating that no local sub-
contractors are qualified to perform the work or supply the materials or equipment. Any
notice inviting bids which may require the use of sub-contractors shall include notification of
this subsection. The City Council or Director may reject as non-responsive the bid of any
contractor proposing to use sub-contractors that fail to comply with the requirements of this
subsection.
(6) Exceptions to Local Business Preference Policy_ The preference set forth in this
Section shall not apply to the following purchases or contracts:
(a) Goods or services provided under a cooperative purchasing agreement.
(b) Purchases or contracts which are funded in whole or in part by a governmental
entity and the laws, regulations, or policies governing such funding prohibit
application of that preference.
(c) Purchases made or contracts let under emergency or noncompetitive situations.
(d) Purchases with an estimated cost of$5,000.00 or less.
(e) Application of the local business preference to a particular purchase, contract,
or category of contracts for which the City Council is the awarding authority may
be waived at the City Council's discretion.
(7) Quality and Fitness. The preferences established in this Section shall in no way be
construed to inhibit, limit or restrict the right and obligation of the City Council and the
Director to compare quality and fitness for use of supplies, materials, equipment, and
services proposed for purchase and compare the qualifications, character, responsibility,
and fitness of all persons, firms, or corporations submitting bids or proposals. In addition,
the preferences established in this Section shall in no way be construed to prohibitthe right
of the City Council orthe Directorfrom giving any other preference permitted by law orthis
Title.
Ordinance No. 1756
Page 4
(8) Application. The Local Business Preference provided in this Section shall apply to
new contracts for supplies, materials, equipment, and services first solicited on or after
March 1, 2009. This Section shall be implemented in a manner consistent with otherwise
applicable provisions of this Title.
(9) Verification of Local Business Preference Eligibility. Any vendor or consultant
claiming to be a Local Business, shall so certify in the bid, in writing to the Director. The
Director shall not be required to verify the accuracy or any such certifications, and shall
have sole discretion to determine if a vendor or consultant meets the definition of "Local
Business." The decision of the Director declaring that any person or business is not a
Local Business shall be subject to appeal pursuant to the provisions of Chapter 2.50 of this
Code.
(10) Enforcement.
(a) The information furnished by each bidder requesting a Local Business
Preference shall be under penalty of perjury.
(b) No person or business shall knowingly and with intent to defraud,fraudulently
obtain, retain, attempt to obtain or retain, or aid another in fraudulently obtaining or
retaining or attempting to obtain or retain certification as a Local Business for the
purpose of this Section-
(c) No person or business shall willfully and knowingly make a false statement
with the intent to defraud, whether by affidavit, report, or other representation, to a
City official or employee for the purpose of influencing the certification or denial of
certification of any entity as a Local Business.
(d) A business which has obtained City certification as a Local Business by
reason of having furnished incorrect supporting information or by reason of having
withheld information, and which knew or should have known, the information
furnished was incorrect or the information withheld was relevant to its request for
certification, and which by reason of such certification has been awarded a contract
to which it would not otherwise have been entitled, shall:
(i) Pay to the City any difference between the contract amount and
what the City's costs would have been if the contract had been
properly awarded;
(ii) In addition to the amount described in sub-section (i) above, be
assessed a penalty in an amount of not more than ten percent (10%)
of the amount of the contract involved; and
(iii) Be subject to debarment from future award of contracts from
the City.
Ordinance No. 1756
Page 5
(e) The penalties identified in (d)above shall also apply to any business that has
previously obtained proper certification and, as a result of a change in its status
would no longer be eligible for certification, fails to notifythe Finance Department of
this information prior to responding to a Solicitation or accepting a contract award.
(11) Promulgation of Administrative Rules. The Director is authorized to adopt
administrative rules supplemental to the provisions of this Title as necessary or appropriate
to implement the provisions of this Section. The provisions of this Section and the rules
adopted by the Director shall be provided to potential bidders, vendors, and contractors to
the widest extent practicable.
SECTION 3. Section 1.01.231 is added to the Palm Springs Municipal Code to read:
1,01.231. Refund of Fees.
A. Notwithstanding any other provision in this Code to the contrary, all claims against the
City with respect to any fee required pursuant to this Code and claimed to have been
overpaid, paid more than once, or collected, imposed or received by the City in a manner
not permitted by law, including without limitation any claim that such fee was imposed in
violation of constitutional or statutory law, shall be presented within the time and in the
manner prescribed by Part 3 of Division 3.6 of Title 1 of the California Government Code
(commencing with Section 900) for the claims to which that Part applies by its own terms,
as those provisions now exist or shall hereafter be amended, and as further provided by
this Section. Such fees may be refunded as provided in this Section-
B. Except as expressly provided in this Code, no refund shall be paid unless the
claimant, who actually paid the Fee for which a refund is sought produces written records
that establish the right to the claimed refund.
C. Any claim made pursuant to this Section must be made in the manner and form
prescribed by Chapter 3.16 of this Code.
SECTION 4. If any section or provision of this Ordinance is for any reason held to be
invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason
of any preemptive legislation, the remaining sections and/or provisions of this ordinance
shall remain valid. The City Council hereby declares that it would have adopted this
Ordinance, and each section or provision thereof, regardless of the fact that any one or
more section(s) or provision(s) may be declared invalid or unconstitutional or contravened
via legislation.
SECTION 5. The Mayor shall sign and the City Clerk shall certify to the passage and
adoption of this Ordinance and shall cause the same, or the summary thereof, to be
published and posted pursuant to the provisions of law and this Ordinance shall take effect
thirty (30) days after passage.
Ordinance No. 1756
Page 6
PASSED, APPROVED, AND ADOPTED THIS 18TH DAY OF FEBRUARY, 2009.
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_ STEP EN P. POUGNE , MAYOR
ATTEST:
MES THOMPSON, CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby certify
that Ordinance No. 1756 is a full, true and correct copy, and was introduced at a regular
meeting of the Palm Springs City Council on the 4th day of February, 2009, and adopted at
a regular meeting of the City Council held on the 18th day of February, 2009 by the
following vote:
AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember Weigel,
and Mayor Pougnet.
NOES: None.
ABSENT: Mayor Pro Tern Mills.
ABSTAIN: None.
Yes Thompson, City Clerk
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