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M0 vmi-2 �- fl-b5-01 City Council Economic Development & Redevelopment Committee October 23, 2001 Meeting Highlights Committee Members: Orval "OB" Badger, Surlene Grant, Shelia Young Discussion Regarding Local Purchasing Ordinance • Committee Chair Grant introduced the item and reminded the Committee, staff and the audience that the matter had been referred back to the Committee for further discussion at the City Council meeting of October 1, 2001. • The current proposal provides an increase in the single vendor limit from $1,000 to $2,000; an increase in the informal bid limit from $15,000 to $20,000; and, a graduated preference scale of 5% for purchases up to $5,000 lowering to 2.5% for purchases from $15,000 to $20,000. • Staff explained the importance of striking a balance between assisting local small businesses with the need to maintain a competitive environment. It was also noted that it was important for outside vendors to know that their bids were desired. • Audience members, including representatives of the Chamber of Commerce emphasized the need to update the financial preference levels and allow single vendor purchases up to $5,000 with an informal bid limit of $50,000. A 5% preference should be applied across the board. • It was generally accepted that methods should be employed to better inform the small business community about informal bid opportunities through local channels. The Chamber indicated that it already works with the City's purchasing staff to E Mail requests for bids. This effort could be expanded. • The Committee directed staff to: (1) research the budget impact of applying the 5% preference to all purchases up to $50,000; (2) determine whether more San Leandro businesses would actually be able to bid on informal requests if the higher threshold were implemented; and, (3) obtain an opinion from the auditors about the proposed policies. Discussion Regarding East 14'h Street Development Plan • At the meeting of October 15, 2001, the City Council requested that the Committee review a preliminary staff proposal to address planning, land use, and economic development issues on East 14'h Street from the south end of Downtown to Bayfair Mall. • Staff presented a possible approach to address these issues including the preparation of an East 14t' Street Development Plan. The proposed plan would provide a detailed economic evaluation of the existing corridor including market conditions, land use constraints, and other potential barriers to development. 3S