Boise council approves local preference ordinance 

The Boise City Council approved an ordinance May 5 that will allow the city to award contracts to local companies even if they’re not the lowest bidders.

The council voted 5-1 to approve the law, which would apply only to equipment and services contracts over $50,000 and public works construction over $100,000. Jim Tibbs voted no.

The ordinance would give City Council the option of selecting companies with a “significant local presence,” including in Ada, Boise, Canyon, Elmore, Gem and Payette counties.

Councilman David Eberle, who originally proposed the idea, has said it could be most useful for large public works contracts. The city wouldn’t be forced to award a multi-million dollar contract to an out-of-state company if it underbid by only a small amount. He also noted that more than 80 percent of city contracts are already awarded to local companies, so the ordinance will likely be used sparingly.

City officials estimate that the ordinance could cost an additional $100,000 annually for every 1 percent of total city contracts awarded to companies that aren’t the lowest bidders. They say that will be outweighed by the benefits of keeping taxpayer money circulating locally.

Mayors around the state like Roger Chase of Pocatello and Garret Nancolas of Caldwell have said they will be watching closely to see how the law works.

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