Attachment 1
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ORDINANCE NO. 1800
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING
SAN CLEMENTE MUNICIPAL CODE TITLE 3
REVENUE AND FINANCE, CHAPTER 3.40, SECTION
3.40.030(A) RELATING TO THE DEFINITION OF
LOCAL BUSINESS FOR THE LOCAL VENDOR
PREFERENCE
WHEREAS, California Public Contract Code section 2002 allows a local agency to provide for a local vendor preference in awarding contracts within the requirements of such section; and
WHEREAS, the City Council of the City of San Clemente has determined that the provision of a Local Vendor Preference Ordinance is in the best interests of the community, the local economy, and the economic stability of the City, and WHEREAS, the City Council has an interest in improving the community by leveraging, to the greatest extent possible, the funds spent contracting with private firms for goods, equipment and services to and for the benefit of the City and its residents, and WHEREAS, the City Council has determined that funds spent locally, with local businesses, provide an enhanced economic benefit to the entire City as reinvestment and recirculation of the funds in the local economy generates taxable transactions, retains and creates local jobs, increases local profits, provides for greater involvement and contributions to local charities, and increases procurement of local goods and services for resale and operations; and
WHEREAS, a Local Vendor Preference Ordinance can encourage businesses to compete for City contracting opportunities, locate operations in the City, and encourage existing local businesses to refrain from relocating to different, less expensive areas; and WHEREAS, on May 16, 2023, City Council adopted Ordinance No. 1750, which added Section 3.40.030 to the San Clemente Municipal Code and established a local preference with provisions that met the requirements of Public Contract Code section 2002, had a rational relationship to the legitimate governmental purpose by stimulating a local market for services, equipment, materials, supplies and any City funds will stimulate the local economy and reduce unemployment; and
WHEREAS, an amendment is needed to the definition of local business under Section 3.40.030(A) to the San Clemente Municipal Code to provide additional eligibility Ordinance No. 1800 Page 2
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criteria and ensure that business are truly local, thereby accomplishing the purpose of stimulating the local economy and reducing unemployment.
NOW, THEREFORE, the City Council of the City of San Clemente, California, hereby ordains as follows:
SECTION 1: Recitals and Scope
The recitals above are considered true and correct and incorporated fully into this Ordinance. The scope of this Ordinance is strictly financial. This Ordinance does not allow local applicants to be relieved of any specification, license requirement or any other provision of the Bid or Request for Proposal.
This Ordinance applies only to contracts that involve the expenditure of funds entirely within the City's control where responsibility and quality are equal and shall not apply to contracts that involve the expenditure of funds that are not entirely within the City's control, such as state and federal grant funds, that due to legal restrictions prohibit its application.
SECTION 2: Environmental Review
This Ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the CEQA Guidelines (14 CCR 15061) because there is no possibility that the activity in question may have a significant effect on the environment and this Ordinance is not a project as defined by CEQA.
SECTION 3: Amendment to San Clemente Municipal Code section 3.40.030(A) Section 3.40.030(A) of the Municipal Code of the City of San Clemente is hereby amended to read in its entirety as follows (underlines are additions):
A. Definitions
The following definitions shall apply to this Ordinance:
"Bid" means any response to a City solicitation for bids or proposals. "City" means the City of San Clemente.
"Contract" means a written agreement for the purchase of goods, equipment or services, including construction, for the benefit of the City or its residents.
"Contractor" means a person, business or entity awarded a Contract by the City.
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“Local Vendor”, "Local Business", “Local Contractor”, or “Local Bidder” means a Small Business with a physical location in San Clemente as indicated on an approved Business License as more particularly defined below:.
1. Businesses must have a physical location in San Clemente as indicated on an approved business license from which they regularly do business.
2. Physical locations can include a main office, headquarters, branch office, or similar functional location within the geographic boundaries of the City where business work is regularly performed.
3. An approved business license issued with a valid City business site address must be established prior to the City inviting bids or requesting proposals for the procurement.
4. Post Office Box address, shared office space without a sublease or regular performance of business work from the space or similar arrangement within the City shall not qualify as a valid business location.
5. The City reserves the right to verify claimed business location and may require documentation demonstrating
qualification and business being conducted therefrom.
"Proposal" means any response to a City solicitation for bids or proposals. “Small Business” means a business or entity that meets the requirements of a small business enterprise certified pursuant to Article 1 (commencing with Section 14835) of Chapter 6.5 of Part 5.5 of Division 3 of Title 2 of the Government Code as that section may be amended from time to time and that performs a commercially useful function within the meaning of Public Contract Code section 2002(d) as that section may be amended from time to time.
SECTION 4: Severability
All ordinances or parts of ordinances or resolutions or parts of resolutions in conflict with any applicable law are hereby repealed to the extent of such conflict and no further.
SECTION 5: Effective Date
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This ordinance shall take effect 30 days after passage and proper publication at least once in a newspaper of general circulation in the City of San Clemente.
SECTION 6: The City Clerk shall certify to the passage of this ordinance and cause the same to be published as required by law, and the same shall take effect as provided by law.
INTRODUCED AND FIRST READ at a regular meeting of the City Council of the City of San Clemente, California, on the 17th day of February, 2026.
APPROVED AND ADOPTED at a regular meeting of the City Council of the City of San Clemente, California, on _____day of _________________, 2026.
ATTEST:
_______________________________ ___________________________ City Clerk of the City of Rick Loeffler, Mayor of the City San Clemente, California of San Clemente, California
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. _______ having been regularly introduced at the meeting of _______________________, was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the _____day of _____________, _______, and said ordinance was adopted by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of ______________________, ________.
__________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_________________________________
Elizabeth A. Mitchell, CITY ATTORNEY