Press Releases

BY JOYCE LOBECK, SUN STAFF WRITER
2009-12-03 10:20:14
The situation facing local contractors, engineers and architects is beyond dire with the construction industry ground nearly to a halt by the economic downturn.

"It's a catastrophe," Doug Nicholls told his fellow Yuma City council members during a lengthy discussion Wednesday about the city's local preference policy for awarding municipal contracts.

Nicholls, himself an engineer, had asked the council to reconsider the policy in light of the economy's impact on the industry.

"There is some urgency," he said.

Contractors were wholeheartedly in agreement.

John Lines, president of Yuma Contractors Association, said there have been massive layoffs of construction workers. His company, Lines and Lundreen Roofing and Insulation, has had to reduce its work force by 60 percent, and he's heard of other companies that are down by 80 percent or even more.

"I'm all in favor," he said of the push to revise the city's policy to ensure that more municipal contracts go to local businesses. "It would have a big benefit for the whole community."

Harvey Campbell, president of betterYuma.org, said he had been asked to urge the council to take action. He also asked that the city consider expanding local preference to businesses located in the county.

City Attorney Steve Moore responded that the charter as it now is written defines a local dealer as one whose business is located inside the city limits and has a valid city of Yuma business license.

Ken Rosevear, executive director of the Yuma County Chamber of Commerce, also urged the council to act and with expediency.

He noted that the area's unemployment rate is continuing to rise. "There's virtually no projects in the pipeline. In my opinion this needs to be one of the top priorities the city needs to take on now. We need to keep these dollars in the community."

Moore provided some background on the local preference policy. He said city voters in a 1981 election approved the city charter that had a provision "to allow the city of Yuma to award public bid contracts for any improvements, materials, equipment or supplies to a local dealer ... to facilitate increased competition by such local businesses with larger metropolitan firms and to prefer the accessibility and prompt service of a local dealer which is deemed to offset the price advantage of larger volume enterprises."

The charter also states that the governing body could award construction contracts to a local bidder "if the bid of a competing bidder, quality and suitability considered is 5 percent or less below that of the local dealer."

However, Moore said, the state attorney objected, saying the local preference provision was in violation of state law as outlined in ARS 34-241. To gain the AG's approval and governor's signature for the charter, Ordinance 2090 was adopted as a footnote to the charter that excludes the use of local preference in many cases that apply to engineers, architects and contractors.

Also, he said, city code prevents the use of local preference for the purchase of commodities that cost less than $50,000, the benchmark for when a formal bid is required.

Moore offered several options for the council to consider.

He suggested that the council change the city code to authorize staff to apply local preference for purchases costing from $2,500 to the formal bid limit. While a simple matter, this step would apply only to the purchase of commodities.

"That wouldn't impact professionals and contractors," Moore said.

Therefore, Moore also recommended that the city seek approval from the AG and governor to drop the Ordinance 2090 footnote from the charter.

Third, he urged the council to consider revising the charter's provision regarding local preference.

Any changes to the charter would require the approval of city voters, Moore said, suggesting that the council act quickly on the measure so it could be included on the ballot for an already scheduled May city election.

"There's no restriction to pursuing multiple options at the same time," he said. "I suggest we move forward immediately."

To that, Mayor Larry Nelson announced that Councilman Nicholls had offered to lead a task force to come up with some recommendations. He will bring those to the council when it meets again on Dec. 16.

---
Joyce Lobeck can be reached at jlobeck@yumasun.com or 539-6853.

More Press Releases