REPORT TO THE CITY COUNCIL June 19, 2014 FROM: DOUGLAS T. SLOAN, City Attorney City Attorney's Office BY: BRANDON M. COLLET, Deputy City Attorney's Office SUBJECT ..Title Amending Subsections (d) and (e) of Section 4-108 the Fresno Municipal Code relating to application of local preference for a public work of improvement ..Body RECOMMENDATION The City Attorney's Office makes no recommendation. The ordinance if adopted, amends Subsection (d) and (e) to Section 4-108 of the Fresno Municipal Code, relating to the application of local preference for competitive bid for a public work of improvement. EXECUTIVE SUMMARY The attached ordinance amends the Fresno Municipal Code, by increasing the local preference for public work of improvement to 5%, up to $25,000. BACKGROUND On May 22, 2014, members of the City Council requested the City Attorney's Office to review the local preference ordinance and increase the current local preference for public work of improvement. Under the current ordinance, the Purchasing Manager in the evaluation of sealed bids for public works of improvement shall extend a one-half of one percent (0.5%) preference to a local business not to exceed $1,000. Under this proposed amendment, the Purchasing Manager in the evaluation of sealed bids for public works of improvement shall extend a five percent (5%) preference to a local business not to exceed $25,000. ENVIRONMENTAL FINDINGS This is not a "project" for the purposes of CEQA pursuant to CEQA Guidelines, section 15378(b)(5), as it is an administrative activity that will not result in direct or indirect physical changes to the environment. LOCAL PREFERENCE Local preference was not considered because this ordinance amendment does not include a bid or award of a construction or services contract. FISCAL IMPACT There may be a fiscal impact to the City, depending on the number of contracts that will be affected by the amendment, in those situations where the 5% local preference would apply, the increased cost may be up to $25,000 per contract awarded to a local bidder. Attachment: Ordinance