Mayor Jim Irwin had asked staff last month to place a local vendor policy discussion on the council agenda this month.
That issue had arisen largely over questions by local business owners about large construction and design contracts that were being awarded to out-of-county firms.
The notable instance was the engineering design contract for the Downtown Improvement Project Phase II. Earlier this month the council signed the $316,000 contract with a Ukiah firm, Rau and Associates.
Tuesday's discussion eventually got to those larger contracts, but considerable time also was spent on more minute purchases, such as office supplies.
City Attorney Steve Brookes gave the council some examples to consider, including the county's local vendor preference ordinance.
“Local preference has been around for while,” said Brookes, explaining that it tends to be determined on a percentage basis.
Some larger cities require businesses be a certain size, which sometimes is determined by the number of employees. When it comes to seeking professional services, such selections usually are made with the help of points assigned during the grading process.
In the last selection process in which Rau and Associates was chosen, a local firm, DeLeon Engineering, received preference in a tie situation, Brookes said.
Local architect Vincent Price said the process to choose firms for jobs needed to include an evaluation about how local business owners spend their money in the community.
Deanne Padel, owner of Lake Parts, said the city buys nothing from her, instead making their purchases at Napa Auto Parts, whose profits go out of county.
Noting she was born and raised in the county, Padel said, “I think I deserve a fair chance like everybody else.”
Public Works Director Doug Grider told the council that staff compares prices when purchasing supplies, and as public servants the standard has been set for them to get the best bargain.
Kevin Burke, the city's interim city manager and police chief, said they can't spend locally if the price difference is too high, and when purchasing office products and other supplies they have to factor in how quickly they need something as well as the difference in shipping and sales tax.
He said the council doesn't need to micromanage its department heads over small purchases, and that a certain amount of flexibility is needed. Being accountable to the council for how his spends his budget is “what keeps me motivated” in spending carefully, Burke said.
Eventually, Irwin guided the focus back to how the city can determine contracts with consultants, noting that it wasn't his intention to micromanage small purchases.
Grider told the council that staff already buys what they can locally even if it costs a little more, and larger purchases of equipment require council approval anyway.
Burke encouraged a “should” not “shall” policy in order to allow department heads the flexibility to determine how best to make their budget numbers without creating difficulties. He said his department already spends a large amount of its $2,500 office supplies budget – which already is nearly expended for the fiscal year – at local suppliers.
Council member Suzanne Lyons suggested giving local vendors preference if their pricing falls within a 10-percent price difference.
Fellow council members agreed, and Councilman Bob Rumfelt suggested adding a“Lakeport first” plan, but letting department heads use their own judgment.
Councilman Ron Bertsch also liked the county's policy, which gives a 10-percent margin to local businesses.
Moving to decisions about requests for proposals, Irwin suggested defining local businesses as being based within Lake County to get the preference. He additionally recommended giving such local firms two additional points in the selection process.
The staff directed Brookes to bring back a draft policy, which he'll work on with Bertsch.
Bertsch suggested using the policy as a guideline until the new city manager is selected, and allowing that individual to go forward with setting the rules.
Brookes said the final four city manager candidates are scheduled for interviews with the council Jan. 29.
In other council news, members unanimously approved awarding the Forbes Street overlay project to Petaluma-based North Bay Construction for $521,217. Grider told the council that about $720,000 in American Reinvestment and Recovery Act (ARRA) funds were available for the project, which came in significantly under that amount due to the economy.
Irwin asked what would happen with the leftover funds. Grider said he's heard that it reverts back to the government, and may be given back to the Area Planning Council for reallocation, but that has not been confirmed.
While sitting jointly as the Lakeport Redevelopment Agency, members received the agency's annual report.
Before the meeting, the council held an hour-long workshop to begin discussing the development of a strategy for affordable housing projects under the redevelopment agency's housing program.
E-mail Elizabeth Larson at
How to resolve AdBlock issue? 
