Councillor’s company wins bid

Colin Dacre - Jul 18, 2017 - Biz Releases

 

Image: Mike Biden

A contract worth at least $187,000 to remove sandbags around Penticton has been awarded to a company owned in part by a city councillor.

According to a disclosure notice, Coun. Max Picton informed the city’s corporate officer on Friday that Sun-Oak Construction, a company of which he is a partial owner, was awarded the contract.

“The Community Charter does not prohibit a Council member from having a contract with the municipality but it does require that the Council member disclose this information,” wrote Dana Schmidt in her report to council.

Picton said Monday his company got no benefit from him being a city councillor, noting he found out about the request for proposals with everyone else when it was posted online to the city’s website.

The City of Penticton’s Chief Financial Officer says Picton’s Sun-Oak Construction was one of only two companies that submitted bids for the contract.

In a detailed scoring of the bid process released Monday afternoon, Jim Baur said Sun-Oak beat out Dynamic Landscaping of Castlegar, 91.07 to 79.54 points out of 100.

The request for proposals was determined with the following criteria: proponent qualifications (20 per cent), proponent approach (30 per cent) and price (50 per cent).

Sun-Oak received the full 50 points for having a lower price, an estimated total of $206,000 versus Dynamic $213,000. That included a more affordable per bag rate for the estimated 9,000 sandbags on private property.

Sun-Oak also scored almost 10 points higher on the methodology and approach component.

“Prior to the closing date, it was disclosed that a City Council member’s company was intending to submit a proposal.  In anticipation of which, staff sought a legal opinion respecting conflict of interest,” Baur said.

Baur stated their legal counsel advised it would be completely fair to accept the bid, as long as it was disclosed “as soon as reasonably practicable”

He added that Sun-Oak was the only company to show up for the offered site visit, with the answers to the questions they asked to posted online on the RFP page in an addendum.

The contract will see Sun-Oak receive $187,000 to clear around 120,000 sandbags from public spaces, plus $2.15 for each sandbag on private property. The provincial government is expected to foot the bill.


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