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TO: Mayor Richard C. Irvin
FROM: Adrienne M. Holloway, Chief Innovation Officer
Martin Lyons, Chief Finance Officer
DATE: May 17, 2018
SUBJECT:
Requesting approval to revise Chapter 2 ("Administration"), Article V ("Finances") of the City of Aurora Municipal Code by adding a new Division 5 ("Local Preference in Bidding for City Contracts").
PURPOSE:
The purpose of the requested modification to the City of Aurora Municipal Code is to stimulate local economic conditions by creating a City of Aurora policy that gives preference to, and in turn invests in, local businesses that submit bids for the awarding of city contracts.
BACKGROUND:
The City of Aurora, largely utilizing tax dollars, spends considerable amounts of funds in contracts to secure goods and services. Currently, there isn't a preference given to business suppliers located within the corporate boundaries of the city when determining which businesses will be awarded City of Aurora contracts. However, there are multiple benefits the City of Aurora will receive, if such a preference was considered in the bidding process.
When local governments spend public funds to secure goods and services with locally owned businesses, those businesses depend upon, if not create, local supply chains. This in turn, creates a multiplier effect where each additional dollar that the City of Aurora invests in a local business through a procurement relationship boosts local economic activity, employment, and tax revenue.
Additionally, business growth created by a local preference in bidding process has the propensity to increase employment opportunities for our residents. Finally, the local preference policy further establishes that the City of Aurora is a business friendly city, especially for businesses that are currently (or in the future) located within the city's corporate boundaries.
Local preference purchasing policies have been adopted by various area municipalities to provide a formal preference for acquiring goods and services. The requested modification to the City of Aurora Municipal Code demonstrates this same support of local businesses by committing to their growth and to the growth of additional businesses and to all the residual benefits that such support derives.
In short, the economic benefits of adopting the policy primarily recognizes that investing public dollars locally retains, circulates and leverages local funds, boosting our local economy. Secondarily, the policy encourages our city residents to follow suit and support our local businesses with their purchasing decisions.
DISCUSSION:
The change in the ordinance will result in administrative adjustments so that proper notice is given to businesses interested in bidding on city contracts to ensure that there is full awareness and transparency of the preference policy for local businesses. Additionally, local businesses interested in qualifying under the ordinance will be given the opportunity to prequalify with the city to avoid having to engage in the documentation gathering and submission process in tandem with having to prepare a proposal in response to a bid solicitation
IMPACT STATEMENT:
The impact will be minimal and will be largely confined to the Purchasing Division, Finance Department. The impact will include:
Adjusting bid solicitation notification to include language on the policy;
Adjusting bid review timing to allow for documentation review and verification of responding businesses requesting local preference;
Including time, outside of an active bid process, to review and verify documentation provided by local businesses that choose to utilize the prequalification option
RECOMMENDATIONS:
I request the proposed ordinance be enacted.
cc: Finance Committee, City of Aurora
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance amending Chapter 2 ("Administration"), Article V ("Finances") of the City of Aurora Municipal Code by adding a new Division 5 ("Local Preference in Bidding for City Contracts.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora, largely utilizing tax dollars, spends considerable amounts of funds in contracts to secure goods and services:
WHEREAS, there isn't a preference given to business suppliers located within the corporate boundaries of the city when determining which businesses will be awarded City of Aurora contracts, and
WHEREAS, instituting a local preference policy for businesses bidding for city contracts will invest in local businesses, increase employment options and stimulate local economic growth; and
WHEREAS, adopting a local preference policy for businesses bidding for city contracts will encourage residents to support local businesses; and
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: revises the City of Aurora Municipal Code Section 2, Article V by adding Division V which establishes a Local Preference in Bidding for City Contracts policy for the City of Aurora.