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Taxpayers will be ‘big loser’ with council’s decision on tender contract, councillor says

'We will spend $50,000 more than the lowest bidder to get 22-per-cent less work done. I don’t agree with that when we can take the lowest bidder and get 125 per cent of the work done,' said Coun. Brian Swanson
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Coun. Brian Swanson speaks during the May 25 regular council meeting, in a screen grab from the meeting. Photo by Jason G. Antonio

City council has awarded a tender for sidewalk repair to a contractor who will perform 22-per-cent less work than another bidder who submitted a lower offer for the project.

During the in-camera portion of its May 11 executive committee meeting, city council voted 4-3 to award the contract for repair and replacement of sidewalks, ramps, curbs and medians tender for $449,680 plus PST — which is 78 per cent of the original bid amount of $543,880 plus GST — to North Star Concrete Inc.

In favour were Mayor Fraser Tolmie and councillors Heather Eby, Dawn Luhning and Crystal Froese. Opposed were councillors Scott McMann, Chris Warren and Brian Swanson.

During council’s May 25 regular meeting, Swanson asked that council vote on the motion again.

City council budgeted $492,100 in this year’s capital budget to replace sidewalks, curbs, gutters, medians and wheelchair ramps, a monetary amount that city administration has acknowledged to be below an adequate level to maintain this infrastructure, he said.

After the tenders closed for this project, the lowest bid came in at $395,000, while the second-lowest tender was $535,000, with council awarding this project to the latter bidder, Swanson continued. By awarding the contract to the second-lowest bidder, that bid is higher than the project’s cost and means the contractor will perform only 78 per cent of the required work.

“We will spend $50,000 more than the lowest bidder to get 22-per-cent less work done. I don’t agree with that when we can take the lowest bidder and get 125 per cent of the work done,” he said.

Contractors who receive tenders have to provide a financial bond to ensure they meet specific requirements; the contractor who would do the work for the lowest bidder has done this work for the past four years, Swanson continued. City administration told city council that this contractor’s work has been acceptable and it has repaired any deficiencies quickly. Furthermore, this contractor has repaired problems on infrastructure that have exceeded warranty.

“To accept this motion, I think the big loser is the taxpayers of Moose Jaw, who will pay more for less when they could pay less for more,” he remarked.

The bottom line should trump everything else with this project, since the lowest bidder gives taxpayers the best value in a community where the city has not funded sidewalks at sustainable levels, Swanson added. Since council is receiving bids that are lower than initially hoped, it should be “seizing the day with both arms” for this.

There were some “intricacies” with this bid that city administration brought forward during the executive committee meeting, said Tolmie. Council’s initial decision aligns with the municipality’s purchasing policy that allows it to give the contract to the lowest qualified bidder. The policy stresses that the bidder be qualified.

“The city has determined the lowest bidder did not meet the standards under the clear terms of the tender documents they filled out. These reasons are confidential and will be released to the bidder,” he added.

Council then re-voted on the motion, with the outcome the same as the May 11 executive committee meeting vote: 4-3.

The next regular council meeting is Monday, June 8.

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