Fiscal Note
The reports required by this resolution can be completed through the reallocation of available staff time.
Title
AMENDED - A study to determine the ability and efficacy of a local preference purchasing policy for the City of Madison.
Body
WHEREAS, giving preference to local suppliers, even if it means spending a little more, could actually benefit Madison's finances; and
WHEREAS, dollars spent locally generate additional economic activity even beyond the value of the initial contract as the local supplier in turn sources goods and services locally. Each additional dollar that circulates locally boosts local economic activity, employment, and ultimately tax revenue; and
WHEREAS, local procurement also saves transportation costs (financial and otherwise) and can build the community; and
WHEREAS, local procurement can help build the local economy by taking advantage of the resources that the community already possesses - locally owned businesses, the local workforce, and local infrastructure; and
WHEREAS, case studies show that the public sector can deliver the same or better quality services for the same or less money than they are already spending and save money by working collaboratively with suppliers to develop solutions to local problems; and
WHEREAS, several U.S. cities and counties have local procurement policies in place, which generally operate by giving a small preference to local businesses in the procurement process, including Albuquerque, NM, Columbus, OH, Ketchikan, AK, Lewiston, ME, San Diego, CA, Stafford, CT, Ingham Co, MI, and Osceola Co, FL.
NOW, THEREFORE BE IT RESOLVED, that the Comptroller's office provide a report to the Common Council by June 20, 2006 October 3, 2006 regarding the following:
1. A suggested appropriate level of preference given in the bidding or Request for Proposal (RFP) process.
2. Possible policies to encourage local purchasing through Limited Purchase Orders (LPOs), Purchasing Cards (P-Cards) or other purchase orders and any other method of purchasing items that do not require a RFP or bidding process.
3. Additional costs or costs savings that may be a result of a local purchasing policy.
4. Economic benefits to the City of Madison of a local purchasing policy.
5. Administrative challenges of a local purchasing policy.
BE IT FURTHER RESOLVED that the City Attorney's office provide a legal analysis of our authority to implement a local purchasing preference.