AN ORDINANCE RELATING TO THE PURCHASING OF FOOD PRODUCTS BY LOUISVILLE METRO GOVERNMENT OFFICE.
BE IT ORDAINED BY THE LEGISLATIVE COUNCIL OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT (THE COUNCIL) AS FOLLOWS:
SECTION I.
POLICY.
Local public agencies, as defined by KRS 45A.345 (11), shall purchase at least 10% Kentucky-grown agricultural products during each fiscal year if the products are available and if the vendor can meet the applicable quality standards of the local public agency.
DEFINITIONS.
For the purpose of this ordinance, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
LOCAL PUBLIC AGENCY. A city, county, urban-county, consolidated local government, school district, special district, or an agency formed by a combination of such agencies under KRS Chapter 79, or any department, board, commission, authority, office, or other sub-unit of a political subdivision which shall include the offices of the county clerk, county sheriff, county attorney, coroner, and jailer.
KRS CHAPTER 79. Intercity, intercounty and city-county compacts for purchasing and merit systems – retirement and disability plans for employees of counties and cities.
(A) Prospective vendors of Kentucky-grown agricultural products may apply to the Kentucky Department of Agriculture for marketing assistance for the purchase of Kentucky-grown logos or labeling statements to be used on Kentucky-grown agricultural products under KRS 260.015, the Kentucky logo or labeling program.
(B) Before a local public agency may purchase Kentucky-grown agricultural products, the vendor shall be required to participate in the logo or labeling program established by KRS 260.015, and shall provide to the purchasing officer written certification that the agricultural products under consideration for purchase meet the definition of Kentucky-grown agricultural product.
(C) All local public agencies that purchase Kentucky-grown agricultural products shall, on or before January 1 of each year, provide a report to the [administrative office] 1) describing the amount of each KY- grown agricultural product purchased 2) disclose the total budget allocated to food purchases.
[SECTION TITLE]
If a contract is awarded to a vendor that supplies agricultural products that are raised or produced outside the United States or its territories, the vendor shall be required to identify the country in which the agricultural product was raised or produced if the vendor is the producer or packager of the product or if the vendor is not the producer or packager, provided the information is available to the vendor from the producer or packager of the product. The producer or packager shall clearly label that information on any containers or packages holding the product.
SECTION II: This Ordinance shall take effect upon its passage and approval.
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_______________________________ Kathleen J. Herron Metro Council Clerk |
_____________________________ David S. Tandy President of the Council |
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_____________________________ Jerry E. Abramson Mayor |
Approved:________________________ Date |
APPROVED AS TO FORM AND LEGALITY:
Irv Maze
Jefferson County Attorney
BY: ____________________________
PREFERENCES FOR LOCAL BUSINESSES
For the purpose of this ordinance, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
AVAILABLE LOCALLY. A local business is capable of furnishing services in a timely manner, in sufficient quantity, and of a quality substantially the same as similar services available from a non-local business.
LOCAL BUSINESS. A business which:
(1) Has been established in the Louisville Metropolitan Statistical Area, as defined by the United States Census Bureau ("MSA"), for 12 months and has local tax identification numbers, if required, within MSA; or, in the event of food purchases, a vendor/producer that uses KY-grown agricultural product and has been established in the state of KY for 12 months and has local tax identification numbers.
(2) Has its headquarters located in the Louisville MSA, or has a branch office, which is currently located in the Louisville MSA and has been located in such area for at least seven consecutive years prior to the date of invitation for bid, and either the city and/or the county within the Louisville MSA in which the business is located has a reciprocal ordinance that recognizes other businesses located in cities or counties in the Louisville MSA as a local business for purposes of a procurement preference;
(3) Utilizes local businesses to furnish at least 75% of the services under a contract pursuant to this subchapter unless such services are not available locally; or, in the case of food purchases, utilizes KY-grown agricultural product to furnish at least 75% of the menu under a contract pursuant to this subchapter unless such services are not available locally; and
(4) Is certified by Metro Government pursuant to § 37.03.
METRO GOVERNMENT. The Louisville/Jefferson County Metro Government, the Metro Mayor, Metro Council and the agencies or departments of the government, but this term shall not include any other county or constitutional officers or their agencies.
NONLOCAL BUSINESS. A business which is not a local business.
(1994 Jeff. Code, § 37.01) (Jeff. Ord. 5-1991, adopted and effective 2-26-1991; Lou. Metro Am. Ord. No. 233-2003, approved 12-19-2003)
§ 37.02 PREFERENCES FOR LOCAL BUSINESSES REGARDLESS OF PROCUREMENT PROCEDURE.
(A)
The local business preference provided in this subchapter applies to
contracts estimated to be equal to or more than the threshold amount
established in KRS 67C.119 annually at the time of invitation for bid and, in the
case of food purchases, contracts above and below the
threshold amount establish in KRS 67C.119 annually at the time of invitation
for bid..
(B) To enter into a contract that is estimated to be equal to or more than $100,000 annually with Metro Government pursuant to this subchapter, a bidder or RFP respondent that uses subcontractors to perform all or part of the work or services required under the contract must submit a local business utilization plan demonstrating the scope of work or services to be done by local businesses, the amount to be allocated to local businesses to perform work or services, and the local business's name, address and local tax identification number.
(C) If the bid received complies with the requirements of this subchapter, then the bid price quoted by each bidder or RFP respondent shall be reduced by 5% for the purposes of determining the lowest bid price, or alternatively, five points shall be added to the evaluated bid total. All proposals of a bidder or RFP respondent shall be evaluated or recognized and scored according to the specifications as noted in the solicitation.
(D) With the submittal of an invoice for final payment, the bidder or RFP respondent shall submit a report that shows the work or services performed by and amount of dollars allocated to local businesses as described in the utilization plan initially submitted and subsequently amended, if necessary, with the approval of Metro Government, for that work or services performed under contract for Metro Government. If the report fails to substantially comply with the utilization plan initially submitted and subsequently amended, if necessary, with the approval of Metro Government, by the bidder or RFP respondent, then the bidder or RFP respondent awarded the contract shall be subject to a penalty equal to 5% of the total contract price. Any decision made by the Purchasing Director under this section of this subchapter which is adverse to a bidder or RFP respondent who has been awarded a contract with the Metro Government may be reviewed by the Secretary of the Cabinet for Finance and Administration at the request of any such bidder or RFP respondent, provided that a request for review shall be in writing, and shall specify with particularity the grounds for the request. Procedures for conducting any such review shall be within the sole discretion of the Secretary of the Cabinet for Finance and Administration and his/her decision after review shall be final.
(E) For purposes of determining the amount of the preference to apply to the lowest bid price, or alternatively the evaluated bid total, this subchapter shall not be combined or accumulated with the following preferences: minimum wage, recycled materials, health insurance, and any other preference, which shall take effect on or after the effective date of this subchapter.
(1994 Jeff. Code, § 37.02) (Jeff. Ord. 5-1991, adopted and effective 2-26-1991; Jeff. Am. Ord. 14-1998, adopted and effective 6-9-1998; Lou. Metro Am. Ord. No. 233-2003, approved 12-19-2003)
§ 37.03 CERTIFICATION AS LOCAL BUSINESS; APPLICATION.
(A) No business shall be considered a local business regarding an invitation for bid unless such business shall have satisfied the requirements as set forth in this subchapter.
(B) The Director shall prepare an application form for certification as a local business with said form requesting such information and proof as deemed necessary to qualify the applicant under the terms of this subchapter.
(C) A local business shall complete the application form and submit it to the Director prior to the opening of bids of any contract in which the local business desires to be given a preference. The Director shall not award a contract until the business who is seeking to be certified is certified. The Director will make every effort to determine whether a business is certified in a timely and reasonable manner.
(D) The Director shall examine the application and if necessary may seek additional information or proof to assure that the business is entitled to the preference. The Director shall not grant the certification if any one of the requirements of this subchapter is not satisfied.
(E) A bidder or RFP respondent who is denied local business status may petition the Director of Purchasing within five business days of the denial letter date. The petition shall outline the reasons why local business status should be awarded. After a review of the petition, a hearing will be set by the Director of Purchasing who will hear the petition and render a decision upholding or setting aside the initial determination. The Director of Purchasing's decision shall be final.
(F) Any bidder or RFP respondent may challenge in writing, within three business days following the day in which a contract is awarded for a particular project, the grant of a local vendor preference to another bidder or RFP respondent pursuant to this subchapter for such contract. The challenge shall outline the reasons why the local business preference should not have been awarded. After a review of the challenge, a hearing will be set by the Director of Purchasing who will hear the challenge and render a decision upholding or setting aside the initial determination. The Director of Purchasing's decision shall be final.
(G) If any bidder or RFP respondent is deemed a local business by the Metro Government on the basis of supplying false information, then the bidder or RFP respondent will be subjected to a fine equal to 25% of the total contract price. Any decision made by the Purchasing Director under this section which is adverse to a bidder or RFP respondent for local business certification who has been awarded a contract with the Metro Government may be reviewed by the Secretary of the Cabinet for Finance and Administration at the request of any such bidder or RFP respondent for local business certification, provided that a request for review shall be in writing, and shall specify with particularity the grounds for the request. Procedures for conducting any such review shall be within the sole discretion of the Secretary of the Cabinet for Finance and Administration and his/her decision after review shall be final.
(1994 Jeff. Code, § 37.03) (Jeff. Ord. 5-1991, adopted and effective 2-26-1991; Jeff. Am. Ord. 14-1998, adopted and effective 6-9-1998; Lou. Metro Am. Ord. No. 233-2003, approved 12-19-2003)
§ 37.04 PREPARATION OF RULES AND REGULATIONS; ANNUAL REPORT.
(A) The Director shall prepare regulations or rules for the purpose of implementing the provisions of this subchapter.
(B) The Director shall prepare and submit to the Metro Government on an annual basis a report demonstrating the effect and cost of this subchapter. In the case of food purchases, the report shall explicity list the total amount of general food purchases and the total amount of food purchases that qualify as KY-grown agricultural product.
2004 S-2(1994 Jeff. Code, § 37.04) (Jeff. Ord. 5-1991, adopted and effective 2-26-1991; Lou. Metro Am. Ord. No. 233-2003, approved 12-19-2003)