(File photo/paNOW Staff)

By Charlene Tebbutt

Auction Services

City signs with new auction service

Mar 11, 2019 | 5:03 PM

Prince Albert City Council has voted to go with a new auction service for municipal auctions, a must in order to comply with city policy of selecting the lowest bid for tendered projects.

Despite a plea from local business Schmalz Auctions, city council voted at a special meeting last week to go with McDougall Auctioneers Ltd. out of Regina. While some councillors were empathetic to the request to support local business, a report from administration said there was little choice in the matter.

“The City shall accept the lowest qualify tender or bid meeting the City’s specifications, unless the tender documents clearly set out additional and/or acceptance criteria,” the report said. “There is no option to the recommendations that does not involve either a contravention by City Council of the City’s binding Purchasing Policy 17.4 or litigation risk of a claim by McDougall in these circumstances.”

The issue has been debated since December, when councillors voted to send it back to administration for further review. While McDougall Auctions beat out Schamlz Auctions for the tender by about $7,800, some councillors suggested local businesses should still get the contract first.

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Others disagreed, including Ward 7 Coun. Dennis Nowoselsky, who argued that local businesses needed to “sharpen their pencils.”

“We’ve got to have a fair system,” Nowoselsky added.

Councillors voted in December to delay the January city auction until the matter could be reviewed further. The establishment of a new impound lot means the city also now holds a monthly auction to dispose of vehicles in the lot to cover bad debts, bylaw infractions and storage fees.

Tenders for auction services are scored on a variety of factors, the city report said. Mayor Greg Dionne said the city tries to support local businesses as much as possible, and will take another look to see if more can be done to support local businesses when it comes to bidding on contracts.

“When you put a document out that says lowest tender, you’ve got to go with that price,” Dionne said. “And just because they’re going to get a couple of points for being local still doesn’t mean they might not get the contract, because at the end of the day, you have to put the most metrics of course, on the price.”

Dionne said city council also erred in letting Schmalz Auctions speak on the issue after the contract was awarded to McDougall Auctioneers Ltd.

“Once you make a decision, and all four people had their opportunity to speak, that should be the end,” he added. “The other three bidders did not have the same opportunity … so that practice will cease.”

The contract with McDougall runs for the next two years, with an option to extend to 2021.

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Charlene.tebbutt@jpbg.ca

On Twitter: @CharleneTebbutt