(A) Public policy. The City has a significant interest in encouraging the creation of employment opportunities for its residents and for businesses located within the City. As a purchaser of goods and services, the City will benefit from expanded job and business opportunities for its residents and businesses through additional revenues generated by City purchases. It is in the interest of the City of Big Rapids and its residents to define and quantify a preference for local eligible bidders who have direct physical and economic relationships with the City of Big Rapids.
(B) The City also values the growth and economic health of those businesses that are located outside the City, but still in Mecosta County. It is in the interest of the City to define and quantify a preference for area bidders who have an economic relationship with Mecosta County.
(C) This preference for local bidders and area bidders shall not apply to purchases or projects in which restricted state or federal grant funds are utilized and the funding conditions prohibit such preferences.
(1) Local bidders.
(a) Definition. LOCAL BIDDER shall mean a bidder whose business is located within the City of Big Rapids, whereby there is a physical and economic relationship with the City demonstrated by the payment of City income taxes on net profits, or the payment of City property taxes on a plant, office, or other developed site and equipment as is ordinarily required for the performance of the contract or service.
(b) Preference for local bidders.
1. If the City receives a bid between $1,000 and $20,000 from a local bidder and the amount of the bid is no more than 5% greater than that of a non-local bidder in an amount not to exceed $1,000, then the City Commission in its discretion may consider the bids equal, and can award the bid to the local bidder based on local preference.
2. On amounts between $20,000 and $500,000, the following local preference percentage shall apply:
Amount | Local bidder preference |
$20,000 to $100,000 | 4% |
$100,001 to $500,000 | 3% |
(2) Area bidders.
(a) Definition. AREA BIDDER shall mean a bidder, vendor or business with an established place of business outside of the City of Big Rapids, but within Mecosta County.
(b) Preference for area bidders.
1. If the City receives a bid between $1,000 and $20,000 from an area bidder and the amount of the bid is no more than 2.5% greater than that of a non-area bidder in an amount not to exceed $1,000, then the City Commission in its discretion may consider the bids equal, and can award the bid to the area bidder based on local preference.
2. On amounts between $20,000 and $500,000, the following area preference percentage shall apply:
Amount
| Area bidder preference |
$20,000 to $100,000 | 2% |
$100,001 to $500,000 | 1.5% |
(3) Discretion. The use and application of the local and area preference shall be in the sole discretion of the City Commission. No local or area bidder can compel the City Commission to exercise its discretion and apply the local preference to a particular bid.
(4) Vendor list. Where possible, requests, quotes and/or bids from local and area vendors shall be solicited as a part of any procurement process. A list of local and area vendors and their wares shall be maintained in the City Treasurer's office. It is the obligation of the vendors to submit their names and wares for the vendor's list.
(Ord. 657-03-13, passed 3-4-13)