Marion businesses cut out by Cedar Rapids’ buy-local initiative

Stan Pfoff is a good-natured guy - an observation supported by the backward spelling of his business name, Pfoff Electric, on the front of his trucks.

In the rear view, the name is clear, and you know Pfoff is looking over your shoulder.

Cedar Rapids City Hall knows that now, too.

Pfoff's is one metro-area business that has lost out on work with Cedar Rapids because of its 6-month-old, buy-local policy, and he's not happy.

On contracts of less than $25,000, a company with a presence in Cedar Rapids can submit a bid

10 percent higher than a company outside of Cedar Rapids and still win the bid. (The advantage is 5 percent on contracts from $25,000 to $199,999 and 1 percent on those of $200,000 or more, but does not apply to many contracts with state or federal bidding rules or funding.)

The bid numbers on an electrical project at the city's flood-damaged former downtown library tell Pfoff's story of displeasure: Pfoff Electric Inc., Marion, $8,078; Paulson Electric Co. Inc., Cedar Rapids, $8,250; Delancey Electric, Anamosa, $8,600; Justice Electric Co., Cedar Rapids, $8,730. Four others had higher bids.

Paulson was awarded the bid Thursday, and it would have won the bid even if its bid had been as high $8,885, or 10 percent higher than Pfoff's.

Pfoff, a longtime electrician who opened his own business five years ago in Marion, points out how the Cedar Rapids City Council has been rattling on for years about the value of regional cooperation and the Corridor between the Iowa City and Cedar Rapids metro areas.

“I thought Marion, Hiawatha, Robins were part of the Corridor,” Pfoff said.

Also an irritant for him is the fact that his company answered the call when Cedar Rapids desperately needed contractors to provide emergency services after the June 2008 flood. Pfoff said he and his electricians worked 70 days straight, dawn to dark.

“We were there,” said Pfoff.

“Buy-local” was one of the ideas that Mayor Ron Corbett campaigned on in 2009, and it was one of the first items he and the City Council took up in January.

Corbett said Thursday that the law is designed to help businesses in Cedar Rapids at this point in time, as the city recovers from the 2008 flood. He said he knows there is “chatter” in the metro area for the city to expand the resolution to all of Linn County.

Jill Ackerman, president of the Marion Chamber of Commerce, agrees that it should be expanded to Linn County.

“ … As written today, the Cedar Rapids buy-local resolution is counterproductive to the regionalism efforts within our communities and it hinders the economic well-being of our members as well,” she said.

Tim Wentz, who owns Truck Builders in Marion, said his business has been doing work on Cedar Rapids buses, firetrucks and other equipment for years - until now.

“I don't want to sound like a kid in the sandbox who isn't getting treated fair, but why penalize us?” said Wentz, who now buys his parts outside Cedar Rapids to make a point.

Electrician Pfoff said he was having dinner Friday evening at the Vernon Inn, spending his money at a Cedar Rapids business. A few tables away, Corbett was having dinner. Pfoff said he was tempted to give the mayor an earful with his entree.

“I don't want to be aggressive on this, but I think it needs to be changed,” Pfoff said. “I don't think they realize what they've done.”

Stan Pfoff is a good-natured guy - an observation supported by the backward spelling of his business name, Pfoff Electric, on the front of his trucks.

In the rear view, the name is clear, and you know Pfoff is looking over your shoulder.

Cedar Rapids City Hall knows that now, too.

Pfoff's is one metro-area business that has lost out on work with Cedar Rapids because of its 6-month-old, buy-local policy, and he's not happy.

On contracts of less than $25,000, a company with a presence in Cedar Rapids can submit a bid

10 percent higher than a company outside of Cedar Rapids and still win the bid. (The advantage is

5 percent on contracts from $25,000 to $199,999 and 1 percent on those of $200,000 or more, but does not apply to many contracts with state or federal bidding rules or funding.)

The bid numbers on an electrical project at the city's flood-damaged former downtown library tell Pfoff's story of displeasure: Pfoff Electric Inc., Marion, $8,078; Paulson Electric Co. Inc., Cedar Rapids, $8,250; Delancey Electric, Anamosa, $8,600; Justice Electric Co., Cedar Rapids, $8,730. Four others had higher bids.

Paulson was awarded the bid Thursday, and it would have won the bid even if its bid had been as high $8,885, or 10 percent higher than Pfoff's.

Pfoff, a longtime electrician who opened his own business five years ago in Marion, points out how the Cedar Rapids City Council has been rattling on for years about the value of regional cooperation and the Corridor between the Iowa City and Cedar Rapids metro areas.

“I thought Marion, Hiawatha, Robins were part of the Corridor,” Pfoff said.

Also an irritant for him is the fact that his company answered the call when Cedar Rapids desperately needed contractors to provide emergency services after the June 2008 flood. Pfoff said he and his electricians worked 70 days straight, dawn to dark.

“We were there,” said Pfoff.

“Buy-local” was one of the ideas that Mayor Ron Corbett campaigned on in 2009, and it was one of the first items he and the City Council took up in January.

Corbett said Thursday that the law is designed to help businesses in Cedar Rapids at this point in time, as the city recovers from the 2008 flood. He said he knows there is “chatter” in the metro area for the city to expand the resolution to all of Linn County.

Jill Ackerman, president of the Marion Chamber of Commerce, agrees that it should be expanded to Linn County.

“ … As written today, the Cedar Rapids buy-local resolution is counterproductive to the regionalism efforts within our communities and it hinders the economic well-being of our members as well,” she said.

Tim Wentz, who owns Truck Builders in Marion, said his business has been doing work on Cedar Rapids buses, firetrucks and other equipment for years - until now.

“I don't want to sound like a kid in the sandbox who isn't getting treated fair, but why penalize us?” said Wentz, who now buys his parts outside Cedar Rapids to make a point.

Electrician Pfoff said he was having dinner Friday evening at the Vernon Inn, spending his money at a Cedar Rapids business. A few tables away, Corbett was having dinner. Pfoff said he was tempted to give the mayor an earful with his entree.

“I don't want to be aggressive on this, but I think it needs to be changed,” Pfoff said. “I don't think they realize what they've done.”