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  13.A.       
Meeting Date: 08/18/2021  
From: Jenny McAdams
RECOMMENDATION
Discuss Pacific Grove Municipal Code 2.16 Purchases System and Procedures to consider incorporating local preference and direct the City Manager to return with changes for City Council review.
DISCUSSION
As we begin to recover from the pandemic and the hardships our economy has experienced, supporting local business is key to economic recovery. The purpose of the practice of local preference is to make sure: the dollars stay local, the jobs stay local, and to support small business in the local region.

An ordinance providing preference to local firms is permissible insofar as it withstand scrutiny under the U.S. Constitution.  Generally, “local preference” or “participation goal” ordinances are permitted if the city council makes adequate findings to establish the regulation is rationally related to a legitimate government interest (e.g., that local firms are disadvantaged because doing business within the city limits is more expensive than doing business outside the city). 
 
The City of Pacific Grove does not have local preference in its current bidding and procurement practice. Our Pacific Grove Municipal Code 2.16.100 (a)-(j) speaks to determining factors of defining the “lowest responsible bidder.” It would be a positive to our Pacific Grove and Monterey County businesses, local COVID-19 economic recovery, and sustainability of our local economy to add local preference to the City of Pacific Grove’s Purchasing Systems and Procedures.

GOAL ALIGNMENT
Facilitate Local Business Recovery:  Review, and revise existing policies and programs, and develop a strategic plan to better serve existing businesses while attracting new commerce to better stimulate the economy and revitalize commercial corridors, especially the downtown.
 
ATTACHMENTS
  1. Monterey County Local Preference Policy 
  2. City of Monterey Local Preference Ordinance
OPTIONS
  1. Provide staff direction. 
  2. Take no action.
FINANCIAL IMPACT:
There is no fiscal impact.  
  
GOAL ALIGNMENT: See Goal Alignment within Discussion section.

    

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