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I am still hoping MOZ PERKS will back!!

Thanks for the response Chris. My assumption is the same as yours in that doing some type of local SEO for just one distinct city shouldn't hurt broad national rankings. The interesting thing about this situation is the competitor site makes no note of any locality at all, they're not trying to scale local rankings nationally - they just don't mention it. While my client's site and a 3rd competitor focus on 1-2 cities and don't do as well as the non-local company. Thanks for your input and hope to continue to hear from others!

Great response Ryan, thanks! Plugins updated, disavow and closing backdoor is next!