Local Business Purchasing Preference Ordinance
City Council recently adopted a Local Business Preference ordinance. This ordinance was created because local businesses contribute significantly to the economic health of our City and to the quality of life of our citizens and visitors. The city’s intent is to encourage the growth of local businesses by increasing the participation of these businesses in the City’s purchase of goods and services.
The preference has two tiers. The first tier is 2% for vendors that have in office with at least one employee within our city limits, have a current business license, and are not delinquent in any payments owed to the City. The second tier is an additional 4% for any vendor where at least 50% of the owners live in Santa Cruz County. The preference must be applied to any bid over $10,000 for goods, supplies, equipment, materials, services or professional services. The preference does not apply to sole source purchases; construction projects; urgent purchases; purchases made under a cooperative agreement; those made by credit card, petty cash, or as claims; those funded by outside agencies that prohibit the use of preferences (typically grants); and qualification based selections for professional services.