Guelph-Eramosa council was forced to reject the lowest tender for a roads project last week after it was revealed a sub-contractor used by the winning bidder is a local councillor.
Public Works Manager Ken Gagnon recommended council accept a $19,890 bid from Metro Pavement Markings Ltd. for retracing 30km of centre lines and applying “reflectorized glass beads.”
The only other tender received was from Niagara Crack Sealing, for $8,000. But Gagnon said after consulting with a lawyer, it appears accepting that low bid could be illegal, based on the company’s sub-contractor.
“It’s a direct contravention of the procurement bylaw,” Gagnon said, explaining the township bylaw states no employee or councillor can be awarded a municipal contract.
When Mayor Chris White asked if Gagnon was implying Niagara Crack Sealing’s sub-contractor was a member of council, Gagnon replied, “That’s correct.”
Gagnon said the sub-contractor cited by the low bidder was “R & M Maintenance.” That company is owned by councillor Roger Knapp.
Councillor Reta Moyer expressed some concern with accepting a bid that was “more than double” the amount of the lowest tender, but White said council has no choice.
“Even if they offered to do it for 50 cents, it would be illegal,” White said, referring to the Niagara Crack Sealing bid.
Council approved a resolution awarding the contract to Metro Pavement Markings Ltd. for $19,890. Moyer abstained from voting and Knapp was absent and unavailable for comment by press time.
