City of Long Beach - File #: 23-0081

• File #: 23-0081
• Version: 2
• Name: FM - Presentation on Analysis of Local Preference in Contracting
• Type: Agenda Item
• Status: Approved
• File created: 12/30/2022
• In control: City Council
• On agenda: 2/7/2023
• Final action: 2/7/2023
• Title: Recommendation to receive and file a presentation on the Analysis of Local Preference in Contracting; Direct City Attorney to prepare ordinance amending the Long Beach Municipal Code Section 2.84.030, Local Preference, to raise the preference cap to $50,000 from $10,000 in determining the lowest responsible bidder for furnishing materials, equipment, supplies, or non-professional services, as applicable; and Direct City Manager to develop guidance for City staff to promote and prioritize the use of local vendors as practical for purchases within the discretion of Department Directors and for Requests for Proposals. (Citywide)
• Sponsors: Financial Management

Date	Ver.	Action By	Action	Result
2/7/2023	2	City Council	approve recommendation	Pass
1/24/2023	1	City Council	withdrawn

TITLE
Recommendation to receive and file a presentation on the Analysis of Local Preference in Contracting;

Direct City Attorney to prepare ordinance amending the Long Beach Municipal Code Section 2.84.030, Local Preference, to raise the preference cap to $50,000 from $10,000 in determining the lowest responsible bidder for furnishing materials, equipment, supplies, or non-professional services, as applicable; and

Direct City Manager to develop guidance for City staff to promote and prioritize the use of local vendors as practical for purchases within the discretion of Department Directors and for Requests for Proposals. (Citywide)

DISCUSSION
The Department of Financial Management (Department) is recommending an update to Long Beach Municipal Code (LBMC) Section 2.84.30, Local Preference, (the Ordinance) to raise the preference cap to $50,000 from $10,000 based on a study conducted by the Department as a part of the Extreme Procurement Makeover underway in the Purchasing Division to transform procurement in Long Beach.

Background

The Ordinance was first adopted in 2004 and modified in 2009, with the goal of strengthening local economic activity and offsetting the cost of doing business in the City of Long Beach (City) for Long Beach-based businesses. On March 1, 2022, the City Council expressed an interest in further strengthening the Ordinance to increase opportunities for local businesses to contract with the City and directed the City Manager to work with the Department to conduct an analysis and provide options.

The current Ordinance applies to Invitations to Bid (ITBs), which are solicitations for goods and non-professional services above $25,000, with exclusions outlined in 2.84.030(D) for purchases of library media, bids for public works capital projects, and purchases with funding restrictions. When eligible businesses (those with a valid City business license and seller’s permit showing a place of business within city limits) submit a bid, it is...