ITEM TITLE:
Consider approving an ordinance, including any floor amendments related thereto, pertaining to Finance and Purchasing Requirements; amending Section 10-1-116, Article 10-1, Chapter 10, Lawton City Code, 2015; to allow in certain circumstances and with limitations a local vendor preference when awarding public construction contracts; providing for severability and establishing an effective date.
INITIATOR: City Attorney - John Ratliff
STAFF INFORMATION SOURCE: City Attorney - John Ratliff
BACKGROUND: In December 2021 the city council had a discussion on whether there was an interest in: (1) amending city code to provide for a local bid preference in certain qualifying instances for public construction contracts, and (2) as a prerequisite for such a preference, developing a policy for council approval setting forth the parameters “to clearly demonstrate the economic benefit to the local area or economy”, and give direction to staff as appropriate. Title 61 O.S. §103 of state law allows for such a local vendor preference in certain circumstances and with limitations. After discussion, council expressed an interest in amending city code to allow for such a preference in limited circumstances.
The proposed ordinance allows in awarding public construction contracts exceeding One Hundred Thousand Dollars ($100,000.00) or construction management trade contracts or subcontracts exceeding Fifty Thousand Dollars ($50,000.00), the city may provide for a local bid preference of not more than five percent (5%) of the bid price if the city determines that there is an economic benefit to the local area or economy. Provided, however, the local bidder or contractor must agree to perform the contract for the same price and terms as the bid proposed by the nonlocal bidder or contractor. Any bid preference granted hereunder must be in accordance with an established policy adopted by the governing body of the city to clearly demonstrate the economic benefit to the local area or economy. Provided, further, no local bid preference shall be granted unless the local bidding entity is the second lowest qualified bid on the contract. The bid specifications shall clearly sate that the bid is subject to a local bidder preference law. For purposes of this amendment for public construction contracts, “local bid” means the bidding person is authorized to transact business in the City of Lawton and maintains a bona fide establishment within the Lawton municipal city limits for transacting such business within the City of Lawton. This provision does not apply to any construction contract for which federal funds are available for expenditure when its provisions may be in conflict with federal law or regulation. No local preference shall be authorized for a qualifying public construction contract until a council policy is adopted setting forth the parameters “to clearly demonstrate the economic benefit to the local area or economy.”
EXHIBIT: Ordinance No. 22-
KEY ISSUES: N/A
FUNDING SOURCE: N/A
STAFF RECOMMENDED COUNCIL ACTION: Approve the proposed ordinance, waive the reading of the ordinance, read the title only, and establish an effective date.