By Lyonel Doherty

The Town of Oliver wants a legal opinion on its Purchasing Policy as it tries to stimulate the local economy during COVID-19.

At Monday’s council meeting, Mayor Martin Johansen and water councillor Rick Machial expressed concern about the policy that could see the Town taking on legal liability.

Chief Administrative Officer Cathy Cowan said the municipality wants to stimulate the local economy during the pandemic by giving preference to local businesses (and suppliers) for services and construction projects.

The policy states that where the total price of two or more tenders are the same, preference shall be given to Oliver businesses, followed by firms in B.C. and then those located in Canada.

While Machial said he supports utilizing local businesses whenever possible, he doesn’t want to tie council’s hands by awarding a tender to a local firm when a competitor’s bid is much lower.

“We’re not doing the taxpayer any good (in this case).”

Machial added that he has always promoted giving local contractors the work.

“I’ve always said they should get the work first . . . (but) I’m a little concerned that if things get competitive out there, I feel I have a responsibility to our taxpayer.”

Johansen feared the Town would be opening itself up to liability if it doesn’t take the lowest bid.

But Councillor Dave Mattes said the Town is not obligated to take the lowest bid.

“We can choose whomever we want. If we want to spend more money, that’s our call.”

Mattes added that no two bids are ever equal.

Machial commented that the Town hasn’t always taken the lowest bid, noting (on the advice of staff) it has taken higher bids in the past.

Cowan said when the Town sends out the tenders, it has a clause stating that the lowest bid isn’t necessarily the bid that will be accepted.

But Johansen said, with his 15 years’ experience in tendering and contract law, he would want a legal opinion on the issue.

“I think we’re going down a very slippery slope here.”

He said every tender has that lowest bid clause and many times he has tried to invoke that without success. Going against a low bid in favour of a local contractor may have legal ramifications, he reiterated.

He added that if a company goes to a lot of effort submitting a tender, which is the lowest bid, and that tender is not accepted, there is legal liability (loss of profit, for example).

But Mattes said many business people he knows have often said, “I need to get a quote from everyone in town but I can buy from whoever I want.”

Machial said if the Town is liable by not taking the lowest bid, that’s scary.

Council referred the matter back to staff for more information regarding waiving the purchasing policy respecting low bids.