To: HONORABLE MAYOR AND From: Jose Obregon

CITY COUNCIL

Subject: PUBLIC OUTREACH STRATEGY Date: June 20, 2003

GENERAL SERVICES PURCHASING

The purpose of this memo is to provide additional information in response to a question raised by Councilmember Cortese regarding the public outreach strategy utilized by General Services Purchasing for the public advertisement of contract opportunities.

Prior to 1995, City bid notifications for the procurement of supplies, materials and equipment were conducted primarily through advertisements in local newspapers and publications. This mechanism of bid advertisement typically resulted in no more than one or two vendors other than the vendors already on Purchasing’s existing bid lists. During 1995, the City’s Internet was implemented and all purchases exceeding $10,000 were listed on-line. Since that time this mechanism for advertising Purchasing’s contract opportunities has proven to be quite successful. Based on a six-month survey in early 2001, statistics show that the “BidLine” had received over 1000 visits a month from potential bidders. These visits resulted in an enormous increase in the number of requests for bid documents compared to the former newspaper publication strategy.

On November 7, 2000 the voters passed Measure M and N to amend San Jose City Charter, Section 1217. The amendments removed from the Charter direct regulation of the purchase of supplies, materials and equipment. At that point, City Council was free to consider alternative procedures for advertising such bids and subsequently approved Ordinance No. 26386 relieving the requirement to advertise in local newspapers and supporting the use of the City web site for General Services bid advertisements (City Council Agenda 05/15/01, Item 3.4).

In an effort to further enhance the effectiveness of public outreach efforts, General Services Purchasing has recently taken the following actions: a) lowered the on-line bid advertisement threshold to $5,000 to support small business participation, b) improved the web-based supplier registration process, and c) attended five business outreach events since October 2002.

Jose Obregon

Director of General Services