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RiversideCA.govLOCAL VENDOR PREFERENCE PROCUREMENT POLICY EXPANSION UPDATEFinance CommitteeDecember 11, 2024FINANCE DEPARTMENT RiversideCA.gov2
“Evolution of Local Preference Policies”1991: 1% local preference for goods purchases.2003: Local preference increased to 5% for goods.2012: Community Benefit Program template for Design-Build contracts.2020: Overview presented to Committee.2021: Organizational plan received and filed.2023: Finance Department outlines existing policies and recommendations.2024: City Council approved 5% LVP expansion for Services and Professional Services.Background 11/26/2024
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“Policy Changes Summary”•Goals: Increase local business participation, particularly in Services and Professional Services.•Key Revisions:•Goods Purchases: Criteria unchanged (local sales tax, City Business License).•Services & Professional Services: Tiered approach:•Level 1: <$10K - Single quote, good-faith outreach.•Level 2: $10K–$50K - 3 quotes, 5% local preference.•Level 3: >$50K - 5% preference in formal bids.•Locality prioritized in informal and formal procurements.•Exceptions: Construction projects, emergency contracts, cooperative purchases, utility expenditures.Discussion RiversideCA.gov4
Impact on Local Spending
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Local Vendor Participation & Awards
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Success Rates (Local Vendors)
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Conclusions•Policy revisions significantly increased local business engagement and spending.•Local vendors secured more bids and awards despite increased competition.•LVP updates effectively bolstered the local economy while maintaining competitive procurement practices.
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STRATEGIC PLAN ALIGNMENTECONOMIC OPPORTUNITYCROSS-CUTTING THREADS Equity
Innovation
Community Trust
Fiscal Responsibility
Sustainability and Resiliency
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That the Finance Committee:1. Discuss and provide input for a local preference procurement policy; and2. Direct staff to incorporate discussion decisions, as well as discuss determinations for policy and legislative revisions.Recommendations RiversideCA.gov10
"Open Floor for Questions and Discussion"Q&A