Possible amendments to the Town of Bonnyville's shop local policy will be discussed at a Feb. 9 council meeting, after a concerned business owner asked for a policy review.
Kelsey Brennan, owner of Thinkwerx and 310-Sign, approached the topic at a Feb. 1 meeting between Mayor Gene Sobolewski and members of the Bonnyville business community.
With the local economy struggling due to the slumping price of oil, Brennan wondered if the town would consider improving the policy to help keep money in the region.
Currently the town's policy allows a ten percent variance in pricing for projects $10,000 or less, meaning if a local businesses bid is $1,000 more than a competing bid and the project is under $10,000, council will opt for the local bid.
“The Town of Bonnyville has been good about supporting locally, but I would like to see it pushed further,” said Brennan, who suggested the town consider upping the limit to $25,000 or pushing the variance to 15 per cent.
“When there are two (or more) bidders could council give preference to the local bidder? Asked Brennan.
“I can compete locally with my own competitors, but I can't compete with a 65-year-old company who has large warehouses.”
Sobolewski was open to the idea of reviewing the policy, feeling that council has to do all they can to try help push the local economy through the oil recession.
“In these (economic) times, this is probably the only time an issue like this comes up, is when things are a little tougher and more competitive,” said Sobolewski.
“As a council we have a desire, and there is a need, to try and keep the local economy vibrant and not send money to Red Deer, Kelowna, Calgary or Edmonton.”
The town's local preference policy was brought to the forefront back in January when council was discussing a project that would see the local swimming pool re-grouted.
The town had received two bids for the project; a $43,422 quote from JAC Inc. of Edmonton and a $48,622 bid from Ashley Fine Floors. The $5,200 difference, combined with the fact that Ashley Fine Floors couldn't lock in their price, led to council awarding the project to JAC.
While not the main subject of Brennan's concern, decisions like this are some that could be impacted by changes made to the town's shop local policy.
The issue, as explained by several town representatives in attendance at the meeting with the mayor, is finding the line between shopping local and wisely spending taxpayer dollars.
“We have to bear in mind that we our balancing buying locally, which we like to do as much as possible, versus wise spending of public money,” said Town of Bonnyville assistant CAO Bill Rogers.
“We would have to do is a little exercise to see what is reasonable and at what point does buying locally get outweighed by the fact that you need to watch the public purse; that is the discussion for council to have.”
The other side of the issue for the town is obeying both the provincial and federal government regulations when it comes to putting out tenders for projects.
Currently all projects over $100,00 have to be open for tender to everyone right across the province, with the government outlawing local preferences on large builds.
Sobolewski has placed the topic on the Feb. 9 agenda for discussion purposes. It is expected council will task administration with reviewing the policy, doing some research and preparing some recommendations.
“I think in these times with a tough economy, I would have no problem reviewing the policy,” said Coun. Ray Prevost.
