Council wants more locals firms on utilities projects

More local contractors should be encouraged to bid on Colorado Springs Utilities projects, according to the City Council.

Meeting Wednesday as the Utilities Board, the council expressed concern that the percentage of contracts awarded to local firms has dipped from the policy goal of 30 percent of dollars spent.

The last year that goal was met was 2005.

In 2006, 27 percent of the $188.5 million spent on contracts went to local vendors. Last year, 26 percent of the $205.8 million spent was captured by local employers.

Companies located elsewhere in Colorado landed 46 percent of the dollars in 2006 and 43 percent in 2007. Out-ofstate contractors were awarded 27 percent of the total in 2006 and 31 percent in 2007.

Those figures exclude spending on coal, natural gas, purchased power and delivery of those commodities.

Bill Cherrier, general manager of financial services, said Utilities officials work with chambers of commerce to attract more local suppliers. He also noted that although the percentage for local businesses dropped by 1 percentage point in 2007, spending increased by $1.5 million.

He also noted some prime contractors hire local subcontractors, but Utilities doesn't track those subcontractor jobs in its statistics.

Procurement officials, Cherrier said, provide prime contractors with lists of local vendors who can do subcontracting work.

The problem, he said, is many Utilities projects involve items and work not available locally, such as power plant boilers.

"In these uncertain economic times," Councilman Tom Gallagher said, "it's important we support our local economy."

Mayor Lionel Rivera agreed, saying, "I'm going to make a suggestion that going to chambers may not be the best forum. See if you can reach out to other forums, trade groups. At least make them aware of them (contracts)."

Cherrier said Utilities works with other government agencies in hosting a local business opportunity workshop every September. He said Utilities officials will find other ways to promote contracts locally.

"If there's any way we can increase that number, it will really help the local economy," Rivera said, urging more emphasis on prime contractors hiring local subcontractors.

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