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61. - Page 4 of 19 <br />6. Design -Build authorized. <br />The proposed ordinance allows for a "design -build" contracting method for public works projects in excess <br />of $1 Million pursuant to the procedures set forth in State law. This allows for flexibility in procurement <br />of major City projects as the design -build methodology has become a viable alternative to the sequentially <br />ordered tradition of "design -bid -build". (See Section 2.67.2) <br />7. Preference given to local businesses for goods. <br />The proposed ordinance provides a 1% preference to a local business certifying it has had a valid address <br />from which the business operates or performs business on a day-to-day basis and a business license within <br />the City for at least six months. This minimal preference mitigates the fact that local businesses which <br />seek to enter into contracts with the City are at a competitive disadvantage with businesses from other <br />areas because of the higher administrative costs of doing business in the City (e.g. rising costs of living, <br />rising property values and corresponding rents, and rising labor costs on certain employers as a result of <br />the minimum wage ordinance. Additionally, such minimal preference is in the public interest by <br />encouraging businesses to remain in the City. (See Section 2.67.3) <br />8. Standing Supply Purchase Agreements and Master Services Agreements authorized. <br />The proposed ordinance expressly authorizes the use of master agreements for the purchase of goods <br />(Standing Supply Purchase Agreements) and services (Master Services Agreements). This practice allows <br />a department or departments to contract with vendors on an "as -needed" basis and streamlines the <br />process for ultimately obtaining the goods or services when needed. (See Sections 2.65.3 and 2.66.3) <br />FISCAL IMPACT <br />This amendment should increase the efficiency of the City's purchasing process, and will reduce required <br />staff time and city resources. <br />ENVIRONMENTAL REVIEW <br />This activity is not a "project" within the meaning of the California Environmental Quality Act (CEQA) <br />because it involves organizational or administrative activities of the City that will not result in direct or <br />indirect physical changes in the environment. (CEQA Guidelines § 15378(b)(5)). <br />PUBLIC NOTICE <br />Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 <br />hours prior to the meeting. <br />Page 4 of 5 <br />AL . <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />165 <br />