Council weighs local-preference changes to purchasing policy; staff to return with revised draft

Amanda introduced proposed amendments to the city's purchasing policy to define a local preference and create a tiered preference scale tied to contract size. The draft defines "local" primarily at the Branch County level and allows a company with 10 local employees to qualify; it also provides consideration for explicit local subcontracting in bids. "If you're willing to match that lowest amount, you would become the lowest bidder and we would award to you," Amanda explained as an example of the matching process staff proposes.

Council and BPU members raised concerns about potential gaming (out-of-area companies opening token local offices) and whether the BPU should use a separate policy because many utility contracts are larger in scale. BPU members reported feedback favoring a 5% preference with no cap and asked staff to track whether the policy reduces outside bidders. Several council members suggested trying a straight 5% preference for a year and monitoring bid counts and awards; Amanda and staff agreed to return with formal draft language that reflects the board feedback for introduction at a future meeting.

The discussion covered a range of technical issues — corporate address vs. place-of-work, subcontractor counting, and safeguards related to responsibility and responsiveness of bidders — and the council emphasized the goal of supporting local businesses without increasing costs to taxpayers.