Department of Finance Annual Report on City Procurement Presented by Antonio Watson August 31, 2015 City Council

Department of Finance 2 BACKGROUND The City made purchases of $223,407,342 $19,646,614 secured by M/WBE $41,270,361 secured by Pasadena Businesses Revised Reporting Methodology Analysis of Local Spending Analysis of Local Purchasing Opportunities Local Outreach on Glenarm Repowering Project Local Businesses Bid Notification Registered

Department of Finance BACKGROUND Spending Trend for the Last Eight Years The Department of Water & Power made major purchases in 2013 and 2014 for approximately $60,000,000 and $55,000,000 respectively.

Department of Finance 4 Revised Reporting Methodology Percentage of procurement dollars secured by local vendors fluctuate Items for which there was no competition from Pasadena businesses Reporting the local percentages relative to the grand total procurement does not truly represent the City’s performance Staff analyzed procurement data for 2014 Analysis helped identify viable local purchases

Department of Finance 5 Revised Reporting Methodology Purchases placed in the following categories: Category 1A: informal bids (under $25k) not available in Pasadena. Category 1B: informal bids (under $25k) available in Pasadena. Category 2A: formal bids ($25k or more) not available in Pasadena. Category 2B: formal bids ($25k or more) available in Pasadena.

Department of Finance Reporting Categories 6 Category 1: Purchases under $25,000

Department of Finance Reporting Categories 7 Category 2: Purchases at $25,000 or more

Department of Finance 8 Revised Reporting Methodology Local Spending Trend

Department of Finance 9 Pasadena First Buy Local General Outreach Areas Currently, emphasis is placed on helping departments establish relationships with Pasadena businesses. Local Purchasing Outreach Efforts in 2014  Identifying specific goods or services most likely to be purchased from Pasadena businesses  Increase outreach to Pasadena businesses to encourage registration into the City’s bid notification system Local Hiring Outreach Efforts in 2014  Utilizing Plans to establish local hiring goals on public projects  Collaborating with community stakeholders regarding local hiring  Offering a web based, certified payroll tracking system to city departments

Department of Finance 10 Pasadena First Buy Local Commodities targeted for outreach: 1.Automotive Shop and Repair 2.Building Construction Services 3.Carpet Cleaning 4.Computer Hardware/Software 5.Construction Services 6.Door Installation 7.Electrical Equipment 8.Employment Agency (Temporary Personnel) 9.Event Planning Services 10.Fencing 11.Economics Consulting 12.Financial Services 13.Fire Protection Equipment 14.Flooring Maintenance 15.Furniture 16.Glass and Glazing Supplies 17.Hardware and related Items 18.Janitorial or Custodial Services 19.Landscaping & Irrigation 20.Lumber Related Products 21.Marketing Consulting 22.Metal Work 23.Moving Services 24.Office Equipment 25.Painting 26.Pest Control 27.Plumbing Equipment 28.Plumbing Maintenance 29.Printing Related Services 30.Publications (Audio Visual) 31.Roofing 32.Tree Trimming 33.Window Washing Services General Outreach Areas (cont.)

Department of Finance 11 Pasadena First Buy Local Local Business Directory (Pasadena Virtual Mall) Increase Use of Bid Notification System Additional 47 Pasadena businesses (6.4% increase) registered in Bid Notification System General Outreach Areas (cont.)

Department of Finance 12 Pasadena First Buy Local Glenarm Repowering Project Local Participation Plan Goals of 25% Local Hiring and 15% Local Subcontracting & Procurement All Outreach Deliverables Satisfied 44 Pasadena Residents Hired $891,353 (33.7% Local Hiring) in certified payroll to Pasadena residents $1,226,196 (26.9%) in subcontracting and procurement Results directly related to: >Early Involvement >Project Labor Agreement >Prime Contractor Amenable to Local Outreach Peak is Expected in August 2015

Department of Finance 13 Pasadena First Buy Local First Source Local Hiring Over 375 Construction Jobs Filled By Pasadena Residents $1,209,336 in Private Development Projects (30.8% Local Hiring) $2,529,451 in Public Projects $18,211,662 in subcontracting and procurement to Pasadena Businesses Including 3 Public Projects; and 9 Private Development Projects Current and Future Projects ProjectParticipation TypeOutreach Status Glenarm Repowering Project (GT5)Project Labor AgreementActive Heritage SquareRequired by OrdinanceActive Mar Vista Union ApartmentsRequired by OrdinanceActive Rose Bowl Renovation & Tenant Improvement ProjectGood Faith EffortActive Centennial Place RehabilitationRequired by OrdinancePending