Appendix 2706. Local vendor deduction.

(a)

Purpose. The purpose of this section is to encourage businesses to locate and remain within the city and to encourage them to bid on contracts with the city. The intent of this section is to allow the bid amount of a local vendor, as defined in paragraph (b) below, to be discounted by the approximate amount that will return to the city through apportionment of the sale tax revenues derived from a sale within the city. By this deduction, the bid amount from a local vendor will more closely reflect the actual cost to the city of purchasing materials, equipment, and supplies from a local vendor.

(b)

The amount of a bid submitted by a vendor located within the city and whose sales, for retail tax purposes, are recorded as derived within the city, shall be considered, for purposes of determining the lowest responsible bid, to be one (1) percent less than the actual bid amount. This one (1) percent local vendor bidding deduction shall apply only to contracts for supplies, materials, and merchandise which are subject to this chapter and which are subject to state and county sales taxes. This deduction shall be used only for comparison of bid prices. Other than this local vendor deduction, all other factors in determining lowest responsible bidder shall apply in awarding contracts pursuant to this chapter.

(Ord. No. 182, § 2, 3-27-91)