Chapter 3.36
PREFERENCE FOR LOCAL BUSINESSES IN AWARDING PUBLIC CONTRACTS

Sections:

3.36.010    Purpose.

3.36.020    Findings.

3.36.030    Definitions.

3.36.040    Requirements of preference in the award of City contracts.

3.36.050    Exemptions and limitations.

3.36.060    Enforcement and penalties.

3.36.010 Purpose.

The purpose of this chapter shall be to afford certain local businesses a preference in the awarding of City contracts for supplies, services and equipment in order to encourage and assist businesses to locate and remain in Calistoga. (Ord. 543 § 1, 1998).

3.36.020 Findings.

The City finds:

A. It serves the interests and general welfare of the City of Calistoga to encourage and assist businesses to locate and remain in the City, and thereby preserve and foster the City’s economic and social vitality.

B. It is in many cases difficult or impossible for businesses located in the City to compete with non-local businesses for City and other contracts. This competitive disadvantage results in many businesses leaving or choosing not to locate in Calistoga, and thus further results in the deterioration of the local tax base and labor force, and in some local persons and families having to leave Calistoga in order to secure work. (Ord. 543 § 1, 1998).

3.36.030 Definitions.

As used in this chapter:

A. “Business” shall mean any person, firm or entity of any kind seeking or bidding on any City contract for supplies, services or equipment.

B. “Local business” shall mean any business which has maintained its primary office, primary distribution point or place of business within the City of Calistoga for a period of at least one year, and which is shown by the records maintained by the City’s Finance Department as having secured all necessary business licenses and as having paid all applicable fees and taxes imposed by the City of Calistoga.

C. “Preference” shall mean the reduction factor applied to the bid and/or estimate of a local business pursuant to this chapter.

D. “Reduction factor” shall mean the amount by which any bid or estimate submitted by a local business for a City contract shall be deemed by the City to be reduced as a preference for a local business in the City’s award of a City contract and/or selection of a City contractor for supplies, services or equipment.

3.36.040 Requirements of preference in the award of City contracts.

In evaluating any bid and/or estimate prior to awarding or entering into any City contract for which competitive bidding is required pursuant to Chapter 3.34 CMC, or in otherwise selecting a contractor for any other City contract for which the City selects a business for a City contract on the basis of a comparison of the price of bids or estimates, the City shall provide each local business with a preference of a three percent reduction factor. Application of the reduction factor in the award of the contract and/or selection of the contractor shall not actually reduce the amount ultimately paid by the City to the successful bidder and/or selected contractor. (Ord. 543 § 1, 1998).

3.36.050 Exemptions and limitations.

The provisions and requirements of this chapter shall not require the City to award any City contract under any of the following circumstances:

A. Where, for reasons other than price or the amount of a bid or estimate, the City determines that a bid is unresponsive and/or, that the person, entity or business seeking the City contract is unqualified and/or is not responsible;

B. Where application of this chapter would violate or be prohibited by any applicable State or Federal law;

C. Where the City contract is with any single or sole source supplier of any good or service;

D. Where the City contract which for any reason does not either require competitive bidding or otherwise involve a comparison of the price of bids or estimates;

E. Where the contract amount exceeds $75,000;

F. Where the City contract is for a public project as defined in Public Contracts Code Section 22002. (Ord. 543 § 1, 1998).

3.36.060 Enforcement and penalties.

A. Any person, entity or business who or which has made an intentional misstatement or misrepresentation in order to obtain a preference under this chapter shall be guilty of a misdemeanor, and also shall be subject to all other penalties and remedies available to the City.

B. Any person, entity or business damaged or aggrieved by such misstatement or misrepresentation shall have a private right of action against the person, entity or business which made the misstatement or misrepresentation. In any such action, the aggrieved party shall be entitled to treble damages and attorneys’ fees.

C. Any person, entity or business which makes such misstatement or misrepresentation may, in the City’s discretion, be deemed unqualified to bid on or receive any City contract for a period of one year following the discovery of the misstatement or misrepresentation.

D. A finding by the City of such misstatement or misrepresentation shall be regarded as a basis for determining that the person, entity or business is not responsible or competent for present and future City contracts. (Ord. 543 § 1, 1998).