Fiscal Note
A review of the fiscal impact is not yet completed.
Title
Creating Section 4.27 of the Madison General Ordinances to encourage City purchasing cardholders to select local vendors when making purchases.
Body
DRAFTER'S ANALYSIS: This ordinance defines local vendor and encourages City purchasing cardholders to select local vendors when making purchases.
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The Common Council of the City of Madison do hereby ordain as follows:
Section 4.27 entitled "Local Vendor Preference - Purchasing Cards" of the Madison General Ordinances is created to read as follows:
"4.27 LOCAL VENDOR PREFERENCE - PURCHASING CARDS.
(1) Intent. The City of Madison expends millions of dollars annually through its employees' use of City-issued purchasing cards for the procurement of supplies and commodities. Historically a little less than half the dollar amount of these purchases have been made from vendors with local addresses. The City hereby finds and declares that the City's purchase of supplies and commodities from local vendors provides tangible benefits by strengthening the local economy, reducing negative environmental impacts and promoting more socially conscious consumers. It is the City's intent to encourage its employees to select Local Vendors when making purchases with the City's purchasing cards.
(2) Definitions. In this Section:
(a) "Local Vendor" means a person, corporation, limited liability company or partnership that has a physical location in the Local Economic Region, has 51% or more of its employees residing in the Local Economic Region, is Locally Owned, or is Locally Sourced.
(b) "Local Economic Region" means Dane, Columbia, Dodge, Green, Iowa, Jefferson, Rock and Sauk Counties.
(c) "Locally Owned" means that 51% or more of a vendor's owners or investors physically reside within the Local Economic Region.
(d) "Locally Sourced" means that 15% or more of a vendor's non-labor associated expenditures are made within the Local Economic Region.
(3) Purchasing Cards. Purchasing staff shall prepare and incorporate local purchasing procedures within the "Vendor's Guide to Doing Business with the City of Madison" and shall disseminate local purchasing procedures to all City employees who possess City purchasing cards. Purchasing staff shall schedule training sessions for City employees on the use of purchasing cards to procure supplies from Local Vendors. Department heads and supervisors should encourage, recommend and approve local purchasing decisions made by their agencies when Purchasing staff is not involved in such decision making.
(4) Local Vendor Database. The City shall collect information from self-reporting Local Vendors and make such information available to City staff for their use in selecting vendors. Information collected from each Local Vendor and compiled by the City into a Local Vendor Database shall include but not be limited to: its street address, phone number and website, if any; a description of its products; the percentage of its employees who reside within the Local Economic Region; the percentage of its owners and investors who reside within the Local Economic Region; a statement as to whether it provides on-line purchasing; the percentage of its owners or investors who reside within the Local Economic Region; and a statement as to whether it is Locally Sourced.
(5) Outreach. Purchasing staff shall work with local business associations and organizations such as the Greater Madison Chamber of Commerce, Small Business Advisory Council, Dane County Buy Local Initiative and neighborhood business associations to provide outreach to and to educate Local Vendors on the merits and process of submitting information to the City to be included on its Local Vendor list.
(6) Purchasing Staff Report. Purchasing staff will conduct a review of local purchasing procedures and report annually to the Common Council on the dollar amount of procurements made from Local Vendors included in the City's database and the increase from year to year in the amount of local purchased supplies and commodities.
(7) Joint Report on Public Access to Local Vendor Database. Within six months of adoption of this ordinance, the Office of the Mayor, the Comptroller and Information Services shall prepare and submit a joint report to the Common Council suggesting possible means of providing public access to view the City's Local Vendor Database so as to not conflict with Administrative Procedure Memorandum 3-13. The intent for public viewing of the Local Vendor Database is to encourage residents and other businesses to use the Database to form their own informed buy-local decisions."