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1. What contracts and purchases are covered by the Local Business Preference?

1. Construction and Public Works Contracts valued at or above $100,000
2. Professional and Non-Professional Service Contracts valued at or above $25,000
3. Contracts for the procurement of goods, materials, equipment, furnishings or supplies valued at or above $5,000

2. How does the Local Business Preference work?

Solely for the purpose of calculating the lowest bid or proposal, bids from San Leandro businesses will be reduced by 10%. Bids from a joint venture that includes a San Leandro business will be reduced by 5% (the San Leandro business must receive at least 5% of the total contract amount).

The maximum bid reduction under this policy is $50,000 per contract.

3. What contracts and purchases are covered by the Local Business Participation Goal?

Construction and Public Works contracts, Professional and Non-Professional Service contracts, and contracts for the procurement of goods, materials, equipment, furnishings or supplies at or above $100,000.

4. How does the Local Business Participation Goal work?

Prior to award of a contract governed by the Local Business Participation Goal, the contractor must engage in good faith efforts to hire or contract with San Leandro businesses, nonprofit organizations or residents to perform the contract with the goal that at least 25% of the total contract dollar amount is spent on local businesses.

5. What constitutes “good faith efforts”?

In order to show good faith efforts towards meeting the Local Business Participation Goal, the contractor shall certify that it has already completed, or will complete during the course of the project, at least five of the following activities:

1. Attending any pre-solicitation or pre-bid meetings scheduled by the City to inform all contractors, subcontractors, and suppliers of the project and the requirements of this policy
2. Convening a meeting within the City of San Leandro for San Leandro businesses, suppliers, nonprofit organizations and residents to identify specific items of work to be performed on the project in order to increase the likelihood of meeting the business participation goal and intent of this chapter, including breaking down contracts into smaller units
3. Listing all contact information for any San Leandro business or nonprofit organization that will participate in the project, or provide services or supplies to the prime contractor
4. Advertising for subcontracting, supplying or employment opportunities on the project not less than 20 calendar days before the date bids are due in one or more daily or weekly newspapers, websites, trade association publications, trade journals or other media
5. Documentation of personal contacts with San Leandro businesses informing them of the opportunity to subcontract or supply to the project
6. Documentation of good faith negotiations with San Leandro businesses and nonprofit organizations to subcontract or supply to the project
7. Making the project plans, specifications and in the case of a construction, design or engineering contract, the City Engineer's estimates available for review upon the request of interested San Leandro businesses
8. Documentation of requests for assistance from San Leandro community organizations, contractors or professional groups, local, state or federal business assistance offices or other organizations that provide assistance in the recruitment and placement of San Leandro businesses

6. How are “San Leandro Businesses” defined under the Local Inclusion policy?

"San Leandro Business" means any business which possesses or establishes all of the following at least six months before bids or proposals are opened by the City:

1. A written agreement for City occupancy or proof of ownership of a San Leandro office
2. Proof that business is transacted or revenue generated in an office located in San Leandro
3. A conspicuously displayed business sign at the San Leandro business premises except where the business operates out of a residence
4. Proof that the office is appropriately equipped for the type of business for which certification as a San Leandro business is sought. Where equipment, such as computer and reproduction and communications machines are typically and routinely used in a non-San Leandro location, comparable equipment shall be installed and routinely used at the San Leandro office
5. A valid City of San Leandro business license

7. Are any purchases or contracts exempted from the Local Inclusion Policy?

Yes. Contracts governed by this policy do not include:

1. Awards made by the City with federal or state grant monies or City general fund grants to a nonprofit entity where the City offers assistance, guidance or supervision on a project or program and the recipient of the grant award uses the monies to provide services to the community
2. Contracts wherein the funding or monies available for the project, service or procurement, whether for the whole or a portion of the project's scope, are restricted by the funder, donor or grantor, whether as to amount, use or otherwise
3. Sales transactions where the City sells its personal or real property
4. Gifts of materials, equipment, supplies or services to the City
5. Contracts exempted from the provisions of Chapter 1 through 6 of the San Leandro Municipal Code
6. Contracts that would violate any State or Federal law or grant requirements