HomeMy WebLinkAboutAgenda Report - May 6, 1992 (75)ev
CITY OF LdDI
COUNCIL COMMUNICATION
AGENDA TITLE: An Ordinance Allowing Consideration of State Sales Tax
Rebates in Determining "Lowest Responsible Bidder".
MEETING DATE: May 6. 1992
PREPARED BY: City Attorney
RECOMMENDED ACTION : Council consideration of the attached d raft
ordinance specifying that the 1%sales tax rebate
received by the City for goods sold by firms
domiciled in Lodi be considered in determining
"lowest responsible bidder" for City contracts.
BACKGROUND: Based on recent discussions. the attached draft
ordinance has been prepared. It allows the City
to determine the "lowest responsible bidder" for
City contracts with reference to the 1% sales tax
rebate the City receives on the sale of goods by
firms domiciled in Lodi.
In rry opinion, this is different that a true "local preference" statute
which I continue to believe would be impermissible (see 64 Ops AG 670)- A
"local preference" ordinance gives local businesses a stated percentage
preference (such as 3 - 5 %) on all bids to supply goods or services to a
local government agency. This would mean that a city could actually end up
paying more under a local preference if it went to the second low bidder who
resided in the City. For example, if a 5% preference i s given to local
bidders. the City could pay up to $1.050 to a local business for an item
which an out-of-town vendor offered for 51,000. On the other hand, using
the 1%rebate factor, a local bidder's price would have to be less than 1%
over the next low bidder in order to be successful. If both binders' price
was $1,000, the local business would get the contract because the City would
actually have paid only 3990 out-of-pocket after the 1% sa les tax rebate.
I believe this is consistent with public policy stated in City of Inglewood
et al. v. S4perior Court (1972) 7 Cal. 3d 861 ;which says it is in the
oil iC s interest o nave contracts awarded . without favoritism and at
the lowest price consistent with reasonable quality." (emphasis added)
APPROVED
IHOMAti A PETERSON
City Mnongor
BM /IXTA.DIV CC
.,P,.
100%x
Title: An Ordinance Allowing Consideration of State Sales Tax Rebates in
Determining "Lowest Responsible Bidder".
Date: F+3y 6, 1992
Page Two
FUNOING: (None required)
Respectfully submitted.
L�
Bob McNatt
City Attcrney
BM/vc
attachment
BIDE/TXTA,OIV
ORDINANCE NO. 1549
AN ORDINANCE OF THE CITY COUNCIL DF THE CITY OF LODI
AMENDING LODI MUNICIPAL CODE SECTION 3.20.100(E)
SPECIFYING CRITERIA FOR DETERMINATION OF "LOWEST RESPONSIBLE BIDDER"
aisiisassisaisasiisissisisisssisisliaiasz=stsizsRisf!!sliisRlGii*iiaiii
BE IT OROAIREO BY THE CITY COUNCIL OF TIIE CITY OF LODI AS FOLLOUS:
SECTION 1. Lodi Municipal Code Section 3.20.100(E), Formai contract
procedure, is hereby amended to read as follows:
"E. Award of Contracts. Contracts shall be awarded by the
City Council to the lowest res onsible bidder except as
otherwise provided in this chap,.Er. In determining the
lowest responsible bidder, considerations shall include but
not be limited to such factors as whether any portion of
the State sales tax payable on the article which is the
subject of the bid will be rebated to the City by reason of
awarding such contract to a person or firm domiciled within
the City of Lodi."
SECTION 2. All ordinances and parts of ordinances in conflict herewith
are repealed insofar as such conflict may exist.
SECTION 3. This ordinance shall be published one time in the "Lodi
News Sentinel". a daily newspaper of general circulation printed and
published in the City of Lodi and shall be in force and take effect
thirty days from and after its passage and approval.
Approved this day of
Mayor
Attest:
ALICE M. REIMCHE
City Clerk
essassssssasrsasscssaassss:ssxssss=c:ssascssssaasssssssasaasasssstsaa:ss
State of California
County of San Joaquin, ss.
I, Alice M. Reimche, City Clerk of the City of Lodi. do hereby certify
that Ordinance No. 1549 was introduced at a regular meeting of the City
Council of the City of Lodi held May 6, 1992 and was thereafter passed.
adopted and ordered to print at a regular meeting of said Council held
1992 by the following vote:
Ayes:
Council
Members -
Noes:
Council
Members -
Absent:
Council
Members -
Abstain:
Council
Members -
I further certify that Ordinance No. 1549 was approved and signed by
the Mayor on the date of its passage and the same has been published
pursuant to law.
ALICE M. REIMCHE
City Clerk
Approved as to Fann
BOBBY K. McNATT
City Attorney
0RiD1549/TXTA.0IV
ft
CW "' �E OF
CITY OF NODI
Date: May 6. 1992
�. CARNECIF FORUM
305 West PineSfreet, Lodi Time: 1:30 p.rri.
For information regarding this Public Hearing
Please Contact:
Alice M Reimche
City Clerk
Telephone: 333-8102
NOTICE OF PUBLIC HEARING
LIC HEARING
May 6, 1992
NOTICE S HEREBYGIVEN that on Wednesday. at the hour of 7:30 p.m., or as
soon thereafter as the matter may be heard, the City Council will conduct a
public hearing to consider the following matter:
a) amending the Lodi Municipal Code Chapter 3.20 establishing
criteria for determination of "Lowest Responsible Bidder".
All interested persons are invitedto present theirviews ana comments on this
matter. Written Statements may be filed with the City Clerk at any tfine prior
to the hearing scheduled herein. and oral statements may be made at said
hearing.
It you challenge the subject matter Incourt, you may be limited to raising only
those issues you or someone else raised at the Public Hearing described in
this notice ar in written correspondence delivered Io the City Clerk, 221 West
Pine Street. at or prior to the Public Hearing.
By Order Of the Lodi City Council:
Alice M. Reimche
City Clerk
Dated: April 1, 1992
Approved as to form:
Bobby W. McNatt w[.
City Attorney