City hall wants an efficient way for all departments to get their work done, so it is seeking contractors who can perform work for all departments, particularly in electrical, plumbing/mechanical, and carpentry.
To find those particular tradesmen, city council authorized administration to issue requests for proposal (RFP) for 2020, with an option to extend the agreement in 2021. Administration would also have to provide a report to council next December about how well this initiative went and if a one-year renewal option should be approved.
Council voted 6-1 on this recommendation during its Nov. 25 executive committee meeting. Coun. Brian Swanson was opposed.
The recommendation will have to come back to a future regular council meeting for official approval.
Administration’s initial suggestion was for a four-year renewal option from Jan. 1, 2021 to Dec. 31, 2024. However, council disagreed with that length and changed the recommendation.
Background
From 2016 to 2018, the municipality spent an average of $937,593 on outside tradespeople, with 60 per cent of those costs for labour, 40 per cent for parts, and an estimated 30-per-cent markup, according to a report to city council.
Overall, the municipality spent $1.13 million in 2016, $670,917 in 2017 and $1.01 million in 2018, for a total of $2.8 million.
With the proposed one-year agreement, administration would analyze the costs over a 10-month period and then produce a report saying whether an extension is warranted. That report would be based on costs, services provided, and satisfaction with the work.
Council discussion
Acquiring input about how to structure the RFP from construction associations would be beneficial, Swanson said. He also thought that since there was enough work to perform, it should be spread out among companies in Moose Jaw.
“That would allow us to evaluate to see the efficiencies and who gives us the best value … ,” he added. “I would like to err on the side of extreme oversight on this and make sure we are spending taxpayers’ money in a competitive way that is of value to taxpayers.”
Rotating the work among different companies would provide no value to the municipality, since administration’s goal is to find the fastest methods to get work done versus attempting to remember to whom resources were allocated, said city manager Jim Puffalt.
“We can work together with them but not be beholden to them,” he added.
A four-year extension would coincide with the next council’s term but is simply too long, said Coun. Heather Eby. A two-year extension would give council the opportunity to re-evaluate and make a different decision.
Eby added that she didn’t think spreading out the work would achieve what council and administration wanted in this process.
There is a purchasing policy that council created and that administration must follow, yet it doesn’t appear as if it is being followed since it seems like RFPs are not being issued for work and administration is simply picking contractors, said Coun. Scott McMann. He didn’t understand how administration had been steered away from following the purchasing policy.
Administration believes it is following the purchasing policy since much of the work being completed is being obtained based on quotes and values, said Puffalt.
McMann then wondered how many contractors provided services for plumbing and electrical. He was also curious how electrical issues — such as a broken wall socket — were handled.
Derek Blais, director of parks and recreation, replied that three quotes would be sought for that work.
“That is certainly not very effective,” McMann muttered.
The next executive committee meeting is Dec. 9.
