HomeMy WebLinkAbout11 Local ProcurementAgenda Item # 11
ACTION
To: Board of Directors
From: Robert Mescher
Date: April 06, 2011
Subject: Consideration of a Resolution to Adopt a Local Preference
Procurement Policy
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board requested staff to draft a local preference procurement policy for
consideration.
2. HISTORY
The District's purchasing procedures are defined in Chapter 3.08 of the District Code.
Types of procurements are:
• Commodities or equipment
• Service contracts (public works and other service contracts)
• Joint purchasing with the State and other public agencies
• Special services
• Consulting services
• Emergencies
Our total annual procurements are about $10,000,000.
On January 19, 2011 and March 16, 2011, staff presented workshops discussing the
possibility of a local preference procurement policy to encourage utilization of Truckee
local businesses. The following points were discussed:
Eligible Procurements
Types of procurements that could include a local preference component are:
• Commodities or equipment up to $10,000
• Public works contracts up to $15,000
• Other service contracts
• Special services
• Consulting services
• Emergencies
These eligible procurements represent about $2,000,000 or 20% of the District's total
annual procurements.
Examples of special services relate to financial, economic, accounting, engineering,
legal, or administrative matters.
Examples of consulting services relate to private architectural, landscape architectural,
engineering, environmental, land surveying, or construction project management
firms, where the firms have equal competence and professional qualifications.
Other Agencies
Counties and cities have local preference procurement policies to assist their local
businesses, expecting that sales and property tax revenue will increase in the long
term.
Most California counties have a local preference procurement policy; typically 5% of
the total contract cost.
The Town of Truckee has a 5% local preference policy for public works projects and is
currently considering a local preference for commodity procurements based on the
local business' contribution of local sales tax.
Our neighboring local agencies do not have a written local preference procurement
policy:
Alpine Springs County Water District
North Tahoe Public Utility District
Northstar Community Service District
Placer County Water Authority
Squaw Valley Public Service District
Tahoe City Public Utility District
Tahoe Truckee Sanitation Agency
Truckee Fire Protection District
Truckee Sanitary District
To encourage public comment, the District recently advertised tonight's meeting in the
Sierra Sun, posted the proposed policy on the District's web site, and contacted the
Chamber and CATT.
3. NEW INFORMATION
The proposed new section of District Code to describe the new policy is:
"Section No. 3.08.005
It shall be the policy of the District to encourage local businesses to
provide goods and services to the District in order to increase local
competition and the number of bids received by the District for the
procurement of certain goods and services, and to lower core costs of
goods and services to the District. To facilitate this policy, the District
shall make purchases in accordance with the following guidelines:
Local preference for the purchases of eligible goods and services may
be allowed by providing a 5% local preference where the purchases or
contracts with a respective local vendor or business during any fiscal
year do not exceed $100,000.
Proposals for services, by their nature, are evaluated based upon
qualifications. A 5% local preference shall be applied towards the fee
component when scoring the proposal. In order to qualify for the above
local preference, a vendor or business must either 1) be a District rate
payer in good standing for the six month period immediately preceding
award of the contract, or 2) receive District power or water at their
business location for the six month period immediately preceding award
of the contract; paid by a third party.
Eligible procurements are:
• Commodities or equipment up to $10,000;
• Public works contracts up to $15,000;
• Other service contracts up to $100,000;
• Special services up to $100,000; and
• Consulting services up to $100,000.
This policy shall be reviewed annually to ensure consistency with the overall
policy objectives."
Attachment 1 is the proposed resolution to adopt the above policy.
4. FISCAL IMPACT
The District's total annual procurements are about $10,000,000. Approximately
$2,000,000 or 20% of the annual procurements are eligible to include a local
preference policy. If the local preference policy gave a 5% preference adjustment to
local venders; and all eligible procurements went to local firms, then the potential cost
to the District would be $100,000. However, the estimated fiscal impact is less than
$10,000 per year.
5. RECOMMENDATION
Adopt Resolution 2011-XXX to amend District code to include a local preference
procurement policy for certain procurements.
Robert Mescher
Acting Administrative Services Manager
Mid ael D. Holley
General Manager
Attachment 1
Resolution No. 2011 - XXX
Establishing a Local Preference Procurement Policy
WHEREAS the District has determined it is necessary to adopt a policy to encourage local
businesses to provide goods and services to the District in order to increase local
competition and the number of bids received by the District for the procurement of certain
goods and services, and to lower core costs of goods and services to the District; and
WHEREAS the District held two workshops on January 19 and March 16, 2011; and
WHEREAS, the District initiated public outreach to encourage input on April 6, 2011; and
WHEREAS, the District has a purchasing procedure in the District Code defined in Chapter
3.08; and
WHEREAS, the policy will be incorporated into the District Code as Section 3.08.005.
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
TRUCKEE DONNER PUBLIC UTILITY DISTRICT that the District will establish parameters
for local preference procurement.
Local Preference Procurement Policy
It shall be the policy of the District to encourage local businesses to provide goods and
services to the District in order to increase local competition and the number of bids
received by the District for the procurement of certain goods and services, and to lower
core costs of goods and services to the District. To facilitate this policy, the District shall
make purchases in accordance with the following guidelines:
Local preference for the purchases of eligible goods and services may be allowed by
providing a 5% local preference where the purchases or contracts with a respective local
vendor or business during any fiscal year do not exceed $100,000.
Proposals for services, by their nature, are evaluated based upon qualifications. A 5% local
preference shall be applied towards the fee component when scoring the proposal. In
order to qualify for the above local preference, a vendor or business must either 1) be a
District rate payer in good standing for the six month period immediately preceding award
of the contract, or 2) receive District power or water at their business location for the six
month period immediately preceding award of the contract; paid by a third party.
{00212614.DOC 2 1 1
Resolution 2011-XX
Attachment 1
Eligible procurements are:
• Commodities or equipment up to $10,000;
• Public works contracts up to $15,000;
• Other service contracts up to $100,000;
• Special services up to $100,000; and
• Consulting services up to $100,000.
This policy shall be reviewed annually to ensure consistency with the overall policy
objectives.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held
within the District on the sixth day of April, 2011 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Jeff Bender, President
ATTEST:
Michael D. Holley, District Clerk
{00212614.DOC 2 } 2
Resolution 2011-XX