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File Number: 13-630 <br />b) Solely for the purpose of calculating the lowest bid or proposal, five percent (5%) shall <br />be deducted from the total bid amount submitted by a contractor or supplier that is a <br />joint venture wherein one of the joint venturers is a business that has as its principal <br />place of business, its headquarters, or a significant portion of its operations within the <br />City of San Leandro. <br />c) Under no circumstances will the real dollar amount of the percentage applied under <br />sections (a) or (b) exceed $50,000 in the reduction of the lowest bid. <br />As an example, if the City received qualifying bids for a project in the amounts of $100,000 <br />and $110,000, with the higher bid coming from a San Leandro company and the lower bid <br />coming from a non -local company, the local bid would be subject to the 10% incentive. Solely <br />for the purposes of determining the low bidder, the $110,000 bid of the local company would <br />be reduced by 10% and recalculated to $99,000. Thus, the local company would be <br />determined to be the apparent low bidder. The local company would receive a contract for its <br />full bid amount of $110,000 with the City paying an additional $10,000 for this service. <br />Under the proposed ordinance, the City does maintain the authority to award some contracts <br />based solely on qualifications rather than a quantitative review of bid amounts. In these cases, <br />the Local Business Preference Rating Incentive would not apply. These instances are limited <br />to projects for which the City requires specialized expertise, competence or qualifications. <br />Local Business Participation Goal <br />The Local Business Participation Goal pertains to contracts that exceed $100,000 and are <br />subject to the Local Inclusion Policy. For these contracts, the ordinance requires the <br />contractor, prime contractor or supplier engage in good faith efforts to hire San Leandro <br />businesses, nonprofit organizations or residents to perform the contract so that a goal of at <br />least 25% of the total contract dollar amount is spent on local businesses. The 25% goal is <br />not a "hard" contract requirement, such that a contractor would be in breach of contract if it <br />failed to meet the 25% local participation goal. However, engaging in good faith efforts, and <br />documenting the evidence of good faith efforts would become a requirement of the bid or <br />proposal submission, such that failure to properly submit documentation of good faith efforts <br />with a bid or proposal when it is due would be grounds for rejecting a bid or proposal as <br />non-responsive to the City's bid or proposal instructions, rules or requirements. This <br />component of the ordinance is designed to encourage large contractors to engage local San <br />Leandro businesses as subcontractors on major projects. <br />The Local Business Participation Goal outlines a specific set of activities required to meet this <br />objective. The contractor or supplier must achieve at least five of the following activities: <br />(1) Attending pre -solicitation or pre-bid meetings scheduled by the City to inform all <br />contractors, subcontractors, suppliers, and San Leandro residents of the project; <br />(2) Convening a meeting for San Leandro businesses to identify specific items of work to <br />be performed on the project; <br />(3) Listing all contact information for any San Leandro business that will participate in the <br />project if a contract is awarded to the prime contractor or supplier; <br />(4) Advertising for subcontracting, supplying or employment opportunities on the project <br />not less than twenty calendar days before the date bids are due in newspapers, <br />websites, trade association publications, or other media; <br />City of San Leandro Page 3 Printed on 12123/2013 <br />