§ 2-302. Local vendors.

(a)

This section applies only to contracts for the purchase of services, materials or supplies; capital outlay; and services for construction, maintenance, repair, or operation of city facilities, where the contract price exceeds $7,500.00.

(b)

As used in this section only, the following definitions apply:

Cadillac bidder means a bidder who meets all of the following requirements for at least six consecutive months prior to the date bids are due:

(1)

The bidder has a place of business or permanent business address in the City of Cadillac.

(2)

The bidder pays personal property and real property taxes in the City of Cadillac.

(3)

The bidder is in compliance with all applicable provisions of the City Code.

(4)

The bidder is not indebted to or in default with the city.

Local bidder means a Cadillac bidder, surrounding area bidder, or State of Michigan bidder, as defined herein.

Lowest bidder means the person or entity that submits the lowest bid that is responsive to the city's request for bids.

State of Michigan bidder means a bidder who meets all of the following requirements for at least six consecutive months prior to the date bids are due:

(1)

The bidder has a place of business in the State of Michigan but not in the city, Clam Lake Township, Cherry Grove Township, Selma Township, and/or Haring Township.

(2)

The bidder is a personal property and real property taxpayer in the State of Michigan but not in the city, Clam Lake Township, Cherry Grove Township, Selma Township, and/or Haring Township.

(3)

The bidder is in compliance with all applicable provisions of the City Code.

(4)

The bidder is not indebted to or in default with the city.

Surrounding area bidder means a bidder who meets all of the following requirements for at least six consecutive months prior to the date bids are due:

(1)

The bidder has a place of business or permanent business address outside the city, but within Clam Lake Township, Cherry Grove Township, Selma Township, and/or Haring Township.

(2)

The bidder pays personal property and real property taxes in Clam Lake Township, Cherry Grove Township, Selma Township, and/or Haring Township.

(3)

The bidder is in compliance with all applicable provisions of the City Code.

(4)

The bidder is not indebted to or in default with the city.

Surrounding county bidder means a bidder who meets all of the following requirements for at least six consecutive months prior to the date bids are due:

(1)

The bidder has a place of business or permanent business address outside the City, Clam Lake Township, Cherry Grove Township, Selma Township, and/or Haring Township, but within Wexford, Missaukee or Osceola County.

(2)

The bidder pays personal property and real property taxes in Wexford, Missaukee or Osceola County.

(3)

The bidder is in compliance with all applicable provisions of the City Code.

(4)

The bidder is not indebted to or in default with the city.

(c)

A local bidder with the lowest responsive bid who is not the lowest bidder shall be given the opportunity to competitively reduce its bid to match the bid submitted by the lowest bidder if the local bidder's bid is within the following differential of the lowest bidder's bid:

Cadillac bidder	5% differential
Surrounding area bidder	3% differential
Surrounding county bidder	2% differential
State of Michigan bidder	1% differential

 

(d)

In reducing a bid under subsection (c), a local bidder shall reduce only the amount of the bid and shall not alter any bid specifications, contract requirements, or the scope of the work to be performed.

(e)

If the local bidder with the lowest responsive bid elects not to reduce its bid, then the local bidder with the next lowest responsive bid falling within the differential set forth in subsection (c) shall be given an opportunity to reduce its bid to match the bid of the lowest bidder.

(f)

If no bids are submitted by local bidders, or if no local bidders elect to competitively reduce their bids, then the contract shall be awarded to the lowest bidder.

(g)

If two or more local bidders bid the same amount and reduce their bids to match the bid of the lowest bidder, then the purchasing committee shall give preference first to the Cadillac bidder then to the surrounding area bidder then to the surrounding county bidder and then to State of Michigan bidder and recommend to the city council the most competent local bidder whose bid is most advantageous to the city considering, among other things, the criteria set forth in section 2-300.

(h)

Notwithstanding any other part of this section, the city reserves the right to make emergency purchases without obtaining bids; to accept or reject any and all bids in whole or in part; to waive irregularities in any bid in the best interest of the city; and to consider, among other criteria, ability, qualifications, proposed timeframe, experience, price, type and amount of equipment, accessories, options, insurance, permits, licenses, other pertinent factors, and overall capability to meet the needs of the city.

(Prior Code, § 1.274; Ord. No. 86-11, 7-21-1986; Ord. No. 89-15, 9-9-1989; Ord. No. 2012-03, § 1, 5-21-2012)