WEB ONLY: Dump truck purchase generates debate on township procurement policy

Last week, when public works director Larry Lynch recommended the township purchase a dump truck at a price that was not the lowest of three received, councillor Mike Downey said it brought to mind a similar scenario that occurred in 2007.

Lynch suggested the township purchase a dump truck and plow equipment from Bramhill Truck Centre, located on Highway 23 less than 15km northwest of Mapleton, for the price of $203,038.

The other quotes received from the township were $199,008 and $201,736 for two different models from two different suppliers.

“It’s a slippery slope, isn’t it?” Downey asked.

He explained the township three years ago rejected a local bid that was $80 higher than the lowest bid, but now council would be doing the exact opposite for $4,000 difference.

“I have a little bit of a problem with that,” said Downey.

In April of 2007, several councillors expressed an interest in awarding a contract for electrical work at the new Drayton medical centre to Jack’s Electric, of Moorefield ($104,298), instead of to Dewar Services, of Mount Forest, which provided the lowest price of $104,212 – a difference of just $86.

However, in the end council sided with clerk Patty Sinnamon, who suggested the township accept the Dewar quote in order to meet provincial legislation and prevent a possible lawsuit (municipalities are required to accept the lowest tender price, regardless of the size difference).

But this time around, Lynch said he is not proposing council accept a higher bid simply because of geography. He did note “the proximity of the Bramhill Volvo dealership allows for the fastest and most efficient response time in the event of breakdown or maintenance.” Yet Lynch also stressed staff members prefer the visibility offered by the Bramhill Volvo over the other trucks.

He also explained he is proposing the township waive its usual purchasing policy – all three quotes came through Viking-Cives Ltd. – for three reasons. First, the three trucks have engines with 2007 emissions equipment, which would save the township $8,000 to $10,000 as compared to newer emission equipment.

Second, all three trucks could be invoiced for July, thus capitalizing on the harmonized sales tax rebates. And lastly, the estimated shipping date for all three trucks is 10 to 14 weeks from receipt of the chassis at the Viking-Cives plant; likely much faster than through a regular tender process.

Downey said he had no problem waiving the purchasing policy. But he wondered if all three trucks have “near identical specifications,” as noted in?Lynch’s report, how the township could justify purchasing the most expensive of the three.

“I don’t think we have a choice, under our procurement policy,” said Downey.

Finance director Mike Givens agreed and said council would have to make the reason for its choice very clear, if it did decide to go with the Bramhill truck.

Council voted 2-1 against Lynch’s recommendation, with councillor Dennis Craven in favour (councillor Bruce Whale was absent). A second resolution approving the lowest tender – $199,008 from Waycon International Trucks Ltd., of Guelph – was passed by a 2-1 vote.

Council had previously approved $220,000 for the purchase of the dump truck and plow in the 2009 budget.

 

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