(A) Definitions for section. For purposes of this section, the following terms shall have the following meanings:
(1) "AVAILABLE LOCALLY." One or more local business is capable of furnishing supplies or services in a timely manner, in sufficient quantity and of a quality substantially the same as similar supplies or services available from a non-local business.
(2) "LOCAL BUSINESS." Any person, corporation, limited liability company, partnership, or other business entity that meets with the following:
(a) The entity has an established physical office or place of business located within Woodford County, which is properly zoned and not a post office box.
(b) The entity is subject to occupational license fees imposed by the city or county and has filed an occupational license fee return in the name of the business for the year immediately preceding the year in which the contract is to be awarded; and
(c) The entity has no delinquent property taxes, occupational license fees, utility bills, or any other outstanding liens, fines or fees due the city.
(3) "NON-LOCAL BUSINESS." Any business that is not a local business.
(B) Preference to be Given Local Businesses.
(1) Regardless of the procurement procedure used to obtain supplies and services for the city, preferences shall be given to local business, as provided in this section.
(a) If it is determined that supplies or services are to be purchased by noncompetitive negotiations, as that term is used in KRS 45A.095, and the supplies or services are available locally, the city may enter into noncompetitive negotiations with a local business. A non-local business may be awarded a contract through noncompetitive negotiation only if no agreement can be reached with a local business or if the supplies or comparable services required are not available locally.
(b) If supplies or services are purchased in an amount less than the amount specified in KRS 424.260, the supplies or services may be purchased from a local from a local business unless unavailable or the cost of the supplies or services exceeds by 5% or more the cost quoted by a non-local business.
(c) If supplies or services are to be purchased by competitive sealed bidding, as that term is used in KRS 45A.365, and the supplies or services are available locally, the bid price or cost quoted by each local business shall be reduced by 5% for the purpose of determining the lowest bid price. Nothing in this section shall be deemed to prohibit the awarding of contracts by the city on the basis of evaluated bid price, as that term is defined in KR 45A.345.
(d) If supplies or services are to be purchased by competitive negotiation, as that term is used in KRS 45A.370, and the supplies or services are available locally, the offer price or cost quoted by each local business shall be reduced by 5% for the purpose of evaluating which offer is most advantageous to the city.
(2) If a contract is for services and a bidder or offeror will use subcontractors to perform all or part of the work required under the contract, the bidder or offeror, in order to qualify for the 5% preference under this section, shall not subcontract more than 20% of the work to non-local businesses unless the services are not available locally.
(3) In the event no bids or offers are received from a non-local business or any solicitation or where the supplies or services are not available from a local business, then the preference established herein shall not apply. Preferences shall not be allowed where the supplies or services required are not available locally.
(4) Each invitation for bids or requests for proposals shall state explicitly that preferences shall be afforded local businesses in accordance with the provisions of this section.
(Ord. 2022-34, passed 9-6-22)