Township council discussed altering its purchasing policy to recognize that calling for tenders or requests for proposals is not always a better option for the municipality than sole sourcing.
The debate occurred after public works director Sam Mattina presented council with a recommendation to waive the procurement policy and accept a quotation from Viking Cives Ltd. for a 2018 Western Star tandem truck at a cost of $252,535 plus HST.
“In the past, the township has purchased Western Star truck chassis supplemented with Viking Cives equipment through a sole source procurement process, to satisfy its tandem truck needs,” Mattina stated in a written report.
“The practice of sole sourcing these tandem purchases has resulted in a number of benefits to the township. The chosen supplier … is a local supplier with whom the township has successfully dealt with for many years. Their proximity … provides the township with easily accessible repair services and readily available parts for the vehicles we own.
“In addition, the consistent purchase of Western Star trucks, being added to our fleet, allows for ease of incidental, relatively minor repairs, to be completed utilizing in-house staff, as this eliminates the need to familiarize oneself with the many alternative components of today’s complicated computer-based tandem truck composition.”
Councillor Lori Woodham said she supports the town’s procurement policy, which generally requires a call for tenders or proposals for major purchases.
“I’m still struggling with why is there only one quote. Why couldn’t we have had three quotes?” she asked.
Mayor Neil Driscoll, a member of the County of Wellington roads committee, said the problem is not unique to Mapleton.
“They had the same situation … the county couldn’t get three quotes either for trucks,” Driscoll stated.
“Just with the specs and the kind of equipment that you have to have to plow snow in rural Ontario, with the heavy trucks we’re trying to get and equipment, the other trucks aren’t available.
“They just can’t come up with a vehicle that will meet
our specs. So what the county did was offered it up to International, ‘Say … would you put this through for another two years’ … So if they will honour that, they’ll have the trucks for the next two years.”
“So do you believe we got a good price?” asked Woodham.
“Yes, I do believe the price that we have received is comparable in the industry,” said Mattina.
Woodham asked, “Is there something that we can do in-house, as we go forward then, if we are being asked to waive our procurement that the total specs of whatever it is isn’t disclosed in our agenda package?
“I feel like our hands are being tied before it comes to me. I’m elected to make these types of decisions and I take that responsibility, but when it’s full, the quote’s here, the specs are here, all the numbers are here, how can I say no? If I say no I want you to go out and tender, we’ve given the competitor the opportunity (to compare quotes).”
Woodham added, “Is there something we can put in place that in the future if we are asked to waive the procurement policy that I have an opportunity to say no?”
Driscoll suggested turning the issue over to staff for a report.
“I just hate the thought of us having to go into closed to discuss (purchases),” Driscoll said.
“Essentially, we did approve it in the budget anyway,” he continued. “We knew there was a truck coming. I even wonder why did this even have to come to council? We’ve approved the money in the budget, the truck was there …
“Really, what I think it should be is (staff) coming back just to report ‘We’ve ordered such and such a truck. It’s under budget. It will be delivered on this date.’”
Finance director Karmen Krueger said the procurement policy could be revised to allow for a process like the mayor described.
“There’s several alternatives on how it could be handled,” said Krueger. “I think the reason it’s coming to council now is our policy isn’t really addressing it, or it’s requiring it come here.”
Councillor Michael Martin suggested the policy is fine the way it is.
“To play devil’s advocate, I would say that I like it exactly how it is,” said Martin. “Not that council’s rubber stamping, but I think that Sam should feel that this is a given, because I think the very first question I would have if a report like this came out without a dollar value attached to it is, ‘Well, what’s the dollar value?’ Right?”
He continued, “I don’t think it would meet the threshold for going into closed session for purchasing a truck. So I think this probably is the only way. If we’re going to be sole sourcing a vehicle like this, it’s still 250-whatever-thousand dollars, so I think it’s a big enough number that I think the public needs to be aware of the fact that’s what we’re doing. Yes, you’re kind of giving away what you’re paying for it, but I think for council to turn this down at this point we would have to have some other reason that I’ve never seen yet.”
Council approved Mattina’s report, including the recommendation to waive the purchasing policy to buy the truck from Viking Cives.
Mattina said the truck would probably be delivered and put into service by September or October.
