HomeMy WebLinkAbout04/18/2016 Council Work Session
April 18, 2016
Time indicated below
Harold E. Getty Council Chambers
Roll Call.
Approval of Agenda, as proposed or amended.
4:45 p.m. Local Preference Discussion.
ADJOURNMENT
Suzy Schares, CMC
City Clerk/Human Resource Director
Local Preference Policy—Top 10 Reasons Not to Use a Local Preference Policy
By Ron Welper
1. State Law — reads the lowest responsible, responsive bid for public improvement projects. Local
preference may be given if all other items are relatively equal.
2. What is local?Waterloo, Metro, Blackhawk County?Where do employees live?
A local preference purchasing policy means that Waterloo resident taxpayers may pay increased taxes to
support "local" businesses. If the adopted definition of "local" includes businesses that don't directly
pay taxes to the City of Waterloo, Waterloo taxpayers will pay higher taxes while those that pay taxes to
the city where the winning business is located will receive a subsidy from Waterloo taxpayers.
3. Sole purpose of bidding process—to buy the best product at the lowest possible price—create
competition.
4. Keeping taxes down—council is obligated to buy low to keep taxes down.
Competitive bidding is designed to identify the lowest priced option that meets specifications in order to
ensure that taxpayers are not paying more than necessary.
5. Who does Council represent—the taxpayer or the business selling the product/service?
6. Low bid is black and white—eliminates gray area and contention.
7. Pick and choose bidding—reduces credibility with bidders, need consistency.
8. Not to accept outside bidders—Waterloo businesses have to get business outside the area to be
successful. If we limit bids to local businesses and other cities do that also, our local contractors might
lose more business than they gain.
9. Damages the bidding process—contractors spend a great deal of time, money and effort to put bids
together. If contractors know that the City doesn't take the low bid, their motivation to bid
competitively or even to bid at all may be reduced; ultimately increasing the cost to citizens of
Waterloo.
10. High bids accepted using only a 1% premium.That would be a high dollar amount on large contracts.
State law prohibits allowing a local preference for public improvement projects. The City recently
purchased equipment with a cost near $1 million. A 1% local preference could have resulted in
additional cost of$10,000.
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