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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 acq...
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