Some electrical contractors believe they are being shut out from bidding on municipal projects even though they have provided on-demand services to the municipality for years.
A few of those contractors brought their concerns to Coun. Brian Swanson, who raised the issue during city council’s recent regular meeting. After some discussion, council voted 4-3 to table the issue until September when city administration can bring back a report that looks at the tendering process.
Councillors Scott McMann, Dawn Luhning and Swanson were opposed.
Background
Council increased the budget for electrical work on the high service reservoir nearly a month ago, Swanson said. This is one kind of service the municipality undertakes for certain jobs.
Another type of service is on-demand work, he continued, where city hall procures the services of electrical companies in town if traffic lights go out on Christmas Day or at a municipal building. Sometimes this type of work creates $150,000 to $200,000 a year in expenses.
However, there has apparently been a change in this process. Swanson said he has heard from electrical contractors who say they have provided on-demand to the municipality for years and are now being told their services are no longer required.
“There was no call for tenders or request for services,” he said. “When we are dealing with expenditures in the tens of thousands, to be accountable and transparent, we should have a mechanism … where companies can put forward their service for consideration.”
Hiring in-house electricians possible
The municipality does not have an in-house journeyman electrician to whom it can give the work, city manager Jim Puffalt told Coun. Chris Warren. There might be an option to do that, since there is already an in-house engineer and lawyer.
City administration would not be opposed to issuing requests for proposals (RFPs), he added, although it would want to review all bills and labour and material costs before deciding whether to bring this type of work in-house. The municipality paid out about $400,000 last year to electrical contractors.
“We have a disjointed purchasing policy, where every department is doing their own thing,” Puffalt told Coun. Crystal Froese, noting administration needs to analyze the work and see if an RFP is appropriate or if it makes sense to hire someone.
“We need to find a way of doing a better job of purchasing.”
Report to analyze cost of services
Administration will likely bring back an answer on how to handle this situation in September, Puffalt told Coun. Heather Eby.
“I do not want to throw the baby out with the bathwater,” said Mayor Fraser Tolmie. “If we are able to table it and look at the options, that would be also in time for our budget process. But I think expedience is key here. The $400,000 is an issue.”
CUPE representatives raised the idea of hiring in-house electricians during budget discussions a few years ago, but council was uninterested at the time, Swanson said. He disagreed with tabling the motion since he thought $400,000 in electrical work was substantial.
“I’m not in favour of hiring in-house contractors,” he said, adding it is based on the philosophical position that there should be a bidding process and a level playing field so outside contractors can continue to be hired.
The next regular city council meeting is July 8.
