City officials are considering changing their procurement rules so that the 10 percent local-preference discount applies only to companies with most of their assets in Santa Fe County.

They also are looking at an additional 2.5 percent discount to businesses with fewer than 35 employees.

City procurement officer Robert Rodarte told the Public Works Committee on Monday that the proposals are aimed at giving Santa Fe-based businesses — most of which are small — advantages over out-of-town competitors.

Currently, a firm can qualify for the local preference by opening a part-time office in Santa Fe while keeping its main office in Dallas or elsewhere. Rodarte said an Albuquerque firm with a temporary office in Santa Fe recently qualified as a local company to win a $463,000 city pavement-repair contract over a Santa Fe firm by $2,400.

If the changes proposed by Rodarte are adopted by the City Council, local firms with fewer than 35 employees could win city contracts with bids that were up to 12.5 percent higher than bids by larger, out-of-town or out-of-state firms.

According to the proposals:

• Businesses qualifying for the local preference must have had a "fixed office" with at least one employee in Santa Fe County for at least six months. Post-office boxes no longer would suffice.

• The prime contractor, rather than a subcontractor, would have to qualify for the local or small-business preference.

• Small businesses would be provided the 2.5 percent preference in addition to the 10 percent local preference for sums not exceeding $100,000. For sums exceeding $100,000, the additional 2.5 percent small-business preference would apply only to the first $100,000.

• The 35-employee maximum for the small-business discount would include all administrative staff, stockholders or anyone who draws a salary or received royalties.

• The local-business preference would apply only to businesses with 51 percent of the overall company and assets located in Santa Fe County. The administrative office also must be located in Santa Fe County.

Contact Tom Sharpe at 986-3080 or tsharpe@sfnewmexican.com.