Council member Rob Fuller, who pushed for a preference policy, argued for keeping tax dollars local by supporting local companies.

“Honestly, there’s no better economic development than our business in Minot getting some of their tax dollars back. We’re not guaranteeing anybody anything, but at least they have a chance against some of these bigger companies,” he said.

However, his arguments weren’t enough, as the council voted 3-4 against a proposed policy.

“To me, ‘local’ would be North Dakota,” council member Mike Hayes said. “I think it should be a bigger group that we at least have to pick from.”

Paul Pitner

The proposed local preference bidding policy would have required companies to meet two of three eligibility criteria:

– The business formed in North Dakota, and its principal and mailing addresses are located in Minot or within a 15-mile radius of Minot.

– The business has maintained a store-front, building or other structure within Minot or within a 15-mile radius of Minot for at least three years prior to application.

– The business has at least six full-time employees who regularly conducted work and business in Minot at least three years prior to application.

Local bidders that were within 5% of a nonlocal company’s low bid would have had the right to match the unit pricing and hourly rates to obtain the project contract., under the proposed policy, which would have become effective Jan. 1 if approved. Contracts with state or federal government participation would have been outside the policy, as would any other contracts exempted by the council.

Rob Fuller

Council member Lisa Olson said the individuals who contacted her about the policy opposed it. Fuller responded people asking for “no” votes are contractors outside of city limits who wanted a bigger circle to include them.

“I’m sure there’s going to be some people that don’t favor this, but people outside the city, that aren’t constituents and that aren’t business owners in the city of Minot, while they’re important to our economy and they’re important to our region, this is to help affect those little businesses and some of the larger business in Minot, to give one little step up on some of the big companies,” Fuller said.

Council member Paul Pitner said he’s found local companies don’t support the policy.

“They never want to be considered a part of the ‘good old boy club,’ that they receive a bid just because they’re local,” he said. He also provided research into a local preference policy in Madison, Wisconsin.

“Average awarded bids under the local preference provision were 2-3 percent higher than the lowest nonlocal bidder. Participation by local vendors did increase, but overall, competition decreased,” he said. A research firm that analyzed more than 1,500 cities found preference clauses reduced competition by 5-10% and increased contract prices by 1-3%, he added.

“I truly do believe this is a solution in search of a problem. I believe in the free market,” Pitner said. “Protectionism should not be a part of government policy.”

Fuller pointed out the proposed ordinance would require local bidders to match low bids to get preference, not obtain projects at higher costs.

“This is about protecting a little bit, not a lot,” he said. “That’s all we’re trying to do here is give our locals a little bit of a chance.”

Council members Mike Blessum and Scott Samuelson voted with Fuller in support of the policy. Voting against were Olson, Pitner, Hayes and Mayor Mark Jantzer.