Rialto Municipal Code Ch. 2.47 Local Business Preference

The city council finds and declares that this chapter is enacted to achieve several purposes and for various reasons as follows:

A. The economy of the Inland Empire has experienced a greater downturn than most other areas in the state and the city of Rialto finds that expending its own funds and exercising its various powers will ameliorate the underlying adverse economic impacts of this downturn and will lead to the generation of improved economic dynamics within the city.

B. There are several circumstances that make it more difficult or expensive for local businesses to compete for city contracts such as the location and size of other businesses and lower labor and material costs of such other businesses.

C. The general welfare of the city of Rialto is furthered by policies, practices and procedures that assist businesses to remain and locate in the city and that foster the local economy by the creation and retention of employment opportunities, the promotion of commerce among all businesses in the city and the generation of tax revenues for the city.

(Ord. No. 1496, § 1, 12-13-11)

For purposes of this chapter, the following terms, words and their derivations shall have the meaning defined herein:

"Bid" means an offer submitted by a business to enter into a contract with the city of Rialto for any project, purchase or service.

"Business" means any person, sole proprietorship, partnership, limited liability company or corporation engaged in an enterprise and seeking to enter into a contract with the city.

"City" means the city of Rialto, the redevelopment agency of the city of Rialto or the Rialto utility authority.

"City council" means the city council of the city of Rialto.

"Code" means the Rialto Municipal Code.

"Contract" means an agreement between the city and a business for any project, purchase or service for a price certain other than a contract to perform a public project as defined by Public Contract Code Section 20161.

"Original bid" means the amount of the bid actually submitted by a business.

"Preference bid" means the bid amount resulting from the reduction applied hereunder.

"Professional services" means services rendered by a person or entity having special expertise, knowledge or training which usually requires a license to provide such services.

"Public project" means a project defined in Public Contracts Code Section 20161.

"Purchasing manager" means the person designated by the city administrator pursuant to Section 2.48.030 hereof.

"Qualified local business" means a business which submits an application for a local business preference that satisfies the following criteria:

1. It has maintained an office, place of business or distribution point within the city for a period of one year preceding the date upon which a bid is required to be submitted to the city;

2. It has secured all licenses and permits necessary to conduct business in the city and it has paid all fees and taxes imposed by the city;

3. It consents, in writing, to a reduction of its original bid by a percentage determined by the city council and to enter into a contract with the city for the preference bid amount; and

4. It meets all other qualifications required to perform the contract for which its bid has been submitted.

(Ord. No. 1496, § 1, 12-13-11)

A. Notwithstanding any other provision of this code, the city council may apply a reduction of up to five percent of the amount of the original bid submitted by each qualified local business for any particular project, purchase or service for which the city has solicited bids to achieve a preference bid for each qualified local business provided that: (1) the value of the project, purchase or service exceeds fifteen thousand dollars based upon the average of all original bids submitted for a particular project, purchase or service, (2) such a reduction shall be applied where, at least, one qualified local businesses has submitted an original bid but it is not the low bid, (3) the percentage reduction to be applied shall be the smallest percentage necessary to transform an original bid of a qualified local business into a preferred bid that can become the low bid and (4) the same percentage reduction shall be applied to the original bid of each qualified local business. Thereafter, the preference bid of each qualified local business shall replace the original bid of each such qualified local business and used to rank all bids and determine the low bid for any particular project, purchase or service for which the city has solicited bids.

B. In determining whether to apply a reduction to the original bid of any qualified local business, the city council shall consider the city's need for each particular project, purchase or service, the city's requirements for same, the qualifications of all bidders and any other relevant matter provided that the city council shall not be required to apply any reduction.

(Ord. No. 1496, § 1, 12-13-11)

A. The city council may utilize the preference bid of each qualified local business and the original bid of every other business in awarding a contract for any project, purchase or service which decision will supersede the provisions of Chapter 2.48 including the requirement to award the contract to the lowest responsible bidder. When the city council awards a contract to a qualified local business based upon its preference bid, the contract amount shall be the amount of the original bid of said qualified local business.

B. For projects, purchases or services under fifteen thousand dollars, the city administrator may direct the application of the provisions hereof in order to award a contract to a qualified local business based upon its preference bid provided its bid is the low bid among all bids submitted. Likewise, the contract amount shall be the amount of the original bid of the local qualified business to which the contract is awarded.

(Ord. No. 1496, § 1, 12-13-11)

The local business preference described in Section 2.47.030 hereof shall apply to all contracts awarded by the city except for the following contracts:

A. A contract for a public project or any other contract required to be awarded to the lowest responsible bidder by state or federal law;

B. A contract which if awarded pursuant to Section 2.47.040 hereof would be prohibited by state or federal law or regulation;

C. Contracts required as a result of an emergency where a delay in the performance of the contract would jeopardize the public health, safety or welfare of the residents of the city as determined by the city council;

D. Contracts where a significant function of city government would be seriously threatened if the contract were not entered into expeditiously as determined by the city council;

E. A contract which if awarded based upon application of the local business preference would result in the loss of state or federal funding.

(Ord. No. 1496, § 1, 12-13-11)

A. All notices inviting bids or requests for proposal issued by the city shall state that the city applies a local business preference and that qualified local businesses may submit an application for a local business preference together with its bid or proposal except for notices inviting bids for public projects as defined in Public Contract Code Section 20161.

B. Qualified local businesses may submit an application for a local business preference on the form prepared by the purchasing manager. The application shall require the business, or agent thereof, to submit the following information under penalty of perjury:

1. Its qualifying office, place of business or distribution point within the City and the time it has been located at such location;

2. The total number of its employees as of the date of the application with adequate proof as determined by the purchasing manager;

3. The number of employees that reside in the city and the time they have resided in the city with adequate proof as determined by the purchasing manager;

4. Its consent to permit the city to reduce its original bid pursuant to this chapter not to exceed five percent of its original bid; and

5. All such other information reasonably necessary for the purchasing manager to provide information to the city council in order to determine the applicability of this chapter to award a contract for any public project, purchase or service.

(Ord. No. 1496, § 1, 12-13-11)

A. Any business or person that submits false information or conceals material information in order to become a qualified local business, or to obtain a reduction of its original bid, or to receive a contract based upon a preference bid is guilty of a misdemeanor.

B. Any business or person damaged by a false statement or concealment of material information by another business or person in violation of subsection A of this section shall have a private cause of action against such business or person. In any such action, the damaged party shall be entitled to treble damages and attorneys fees.

C. Any business or person that makes any false statement or conceals material information in order to become a qualified local business, or to obtain a reduction of its original bid, or to receive a contract based upon a preference shall be prohibited from submitting a bid for any city contract or receiving any contract from the city for a period of three years from the discovery of facts supporting same. For purposes of this section, the city council may, in its sole discretion, find that a business or person submitted false information or concealed material information in order to become a qualified local business, or to obtain a reduction of its original bid, or to receive a contract based upon a preference bid; and such finding shall be final and binding on such business or person.

(Ord. No. 1496, § 1, 12-13-11)