Mayor Dan Kirkpatrick said the ordinance is “a little carrot” to encourage businesses and thank them for staying in Fairborn.
“The whole idea is we want to encourage local businesses to build and expand,” Kirkpatrick said. “It’s just one little way of saying, if you’re a local business we appreciate you being here and staying here, and we would like to encourage you to continue.”
City Solicitor Mike Mayer researched other cities’ local preference ordinances and crafted legislation to give preference to local businesses during the bidding process by discounting qualified bids.
“When the bids come in, if you meet the criteria under the ordinance, five percent is taken off the qualifying bidder’s bid up to a maximum amount of $20,000,” Mayer said.
Receiving local preference does not reduce the actual dollar amount of the contract, but instead gives a preference to local bidders as if they had submitted a slightly lower bid, according to Mayer’s briefing memorandum to city officials.
Local businesses must have maintained a permanent office or facility within Fairborn for the past two consecutive years and have paid or filed payroll or earnings tax to the city in the most recent quarter to qualify, Mayer said. Businesses will be required to provide proof of qualification.
Ties between two or more local, qualified bidders will be broken by a coin toss.
Additionally, businesses indebted to the city or that have failed to perform under previous contracts are prohibited from receiving preference.
The preference applies only to locally-funded, non-emergency purchases. Purchases funded by the state, county or federal government are exempt.
Council unanimously approved the ordinance Monday after voicing support for what Kirkpatrick called a “reasonable” plan.
“I appreciate anything we can do to help them,” said Councilman Rob Hoffman before voting yes.
Councilwoman Marilyn McCauley said she believed the ordinance is a “great opportunity” for Fairborn’s businesses.
“We’ve been looking for ways to help them, and hopefully this will be another opportunity for them,” McCauley said.
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