Glenwood Springs adopts ‘local preference’ ordinance
Glenwood Springs, CO Colorado
GLENWOOD SPRINGS, Colorado – The Glenwood Springs City Council has approved an updated local preference ordinance, intended to give locally funded projects to local contractors.
Council has been revising the city’s local preference code since fall 2009 after realizing that the code needed updating.
The new ordinance will give preference to local businesses or subcontractors bidding on city contracts, as long as doing so doesn’t add significant costs to the project.
Contractors must prove when they enter a bid for a project that they qualify as a “local contractor”. To qualify as a local contractor, a business must be headquartered and primarily doing business within a 45-mile radius of the Eighth Street and Grand Avenue intersection in Glenwood Springs. The business must also be able to prove that a minimum of 75 percent of its project work force resides in, or 75 percent of its vehicles are registered in the counties within the 45-mile radius at the time of application.
The new ordinance also raised the dollar amount credited to a contractor for using local subcontractors. Contractors will be given local preference credit of 5 percent on projects up to $200,000. For projects over $200,000, contractors will receive $10,000 plus 2.5 percent of the total local business portion exceeding $200,000, up to $135,000.
Mark Gould, CEO and president of Glenwood Springs based Gould Construction called the ordinance a “good stand alone document” that protects the local workers.
“Essentially what they’ve done is benefited all of the contractors in the 45-mile radius,” Gould said. “And it’s a good thing.”
The ordinance applies to construction services and procurement of goods and supplies on contracts of $25,000 or more. However, the preference is only one factor used in determining the award of a bid.
Council’s intention is to give local businesses an advantage in the bidding process as a way to keep taxpayer dollars circulating within the local economy.
The ordinance also applies to the procurement of goods and supplies, contraction equipment and other vehicles, however in those instances, a local business is defined as a business located and primarily doing business in the corporate limits of Glenwood Springs. If the business is otherwise registered or incorporated, it must be so within Colorado, the ordinance states.
The ordinance will have to go through a second reading at Council’s first meeting in June before it’s formally adopted.