The bid preference ordinance for local businesses pursuing city contracts for certain goods, services and equipment will be revisited tonight by the El Centro City Council.
The proposed ordinance applies to businesses located in the city that earn at least 50 percent of their sales within the city, according to a report to the council.
Once applied, the ordinance gives a 10 percent deduction to a local vendor’s bid versus a non-discounted vendor.
This ordinance excludes contracts using local funds and public works-related contracts. However, a separate ordinance for public works contracts will be presented also tonight.
The council reviewed both bid preference ordinances some five months ago, but both proposals were continued after council members questioned what a local business is, who should be getting this bid preference and whether there should be enforcement penalties for businesses that lie about their local status.
Also, City Councilwoman Cheryl Viegas Walker asked that minorities, women and veterans get an additional bid discount.
This ordinance took into consideration Viegas’ recommendations and identifies so-called minority-owned small businesses, veteran-owned small businesses and women-owned small businesses.
Under the revised ordinance, these categories would come into play whenever two discounted bidders are tied in a bid, City Manager Ruben Duran said, who noted that if two businesses’ bid match and fit the categories, then the contract will be awarded by lot.
However, Duran doesn’t expect such situation to occur often.
The ordinance also includes enforcement language for those businesses that use their discounted category for fraudulent purposes.
According to the report, if a vendor fails to comply, it won’t be recognized as a local business for two years and the city, moreover, could terminate or suspend the contract, as well as pursue “any other remedy available by law.”
Public works preference
The public works preference ordinance is similar to the goods, services and equipment ordinance and carries the same exceptions, meaning it works only on projects using local funds.
The proposed ordinance also works only for the purpose of determining the low bidder, and does not actually reduce the bid price. In addition, non-local companies do get benefits under the ordinance when subcontracting with local companies.
Mayor Benjamin Solomon, who worked with staff in designing both ordinances, said one of the new recommendations is that a business that hires local people gets a certain percentage points in their favor.
Very few projects will qualify for this ordinance, according to Duran who noted there aren’t many projects that use solely local funds. “But when they do, we do want to apply this ordinance,” Duran said.
“Businesses are hurting right now and this is one way that they can have a little more income coming in local and perhaps hire a couple of people,” Solomon said.
If you go
What — El Centro City Council meeting
When — 6 p.m. today
Where — City Council chambers, 1275 Main St.
Staff Writer Alejandro Dávila can be reached at 760-337-3445 or adavila@ivpressonline.com
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