New trade agreement puts town in a bind

Melissa Strle
Times Reporter

 

Strathmore town councillors chose to accept Lethbridge company Young Parkyn McNab as auditor for the town of Strathmore since the company delivered the lowest bid for services at $97,400.
Jean Gauvin, partner with Strathmore accounting firm Gregory, Harriman & Associates, expressed his disappointment at the Oct. 19 council meeting for not having been awarded the auditor position, citing his firm’s “financial commitment” and “time commitment” to the town of Strathmore, especially over the last two years.
“It is disappointing from my perspective if this is the direction that the town wants to go,” said Gauvin.
He explained to council members that his company’s bid came in at $102,991, or six per cent higher than the bid from Young Parkyn McNab.
Gauvin said he’s been involved with the Strathmore community in different places and maintained, “you’ve seen my face all over town.”
Mel Tiede, Town of Strathmore director of corporate services, said the town is subject to Canada’s New West Partnership Trade Agreement (NWPTA), and the practice of extending a preference to local or domestic goods, services or suppliers would be considered inconsistent with this agreement.
Coun. Pat Fule asked Tiede if any preference could be given to a local business, such as Gregory, Harriman & Associates in this case, and Tiede responded that preferences cannot be given to local businesses under the NWPTA. Instead, council has to look at the tender process and bids.
Tiede said the NWPTA is directed to government bodies to provide transparency and a consistent bidding process “to ensure that there isn’t discrimination applied so everybody has an equal opportunity.”
The agreement is applicable to Western Canada, including Saskatchewan, Alberta and British Columbia.
Coun. Steve Grayczyk expressed his disappointment for local businesses.
“How can I expect them to support our community more when we have to follow this rule and regulation? To me it’s not fair to the community,” said Grayczyk.
Town of Strathmore chief administrative officer James Thackray said the situation is extremely difficult.
“I’m not sure it always meets the intent of putting the community first,” he said.
Thackray added that supporters of the agreement suggest it provides opportunities for all businesses to bid on trade contracts over a prescribed amount, which in this case is $75,000.
The councillors addressed the fact the town could face legal action if found to be not in compliance with the agreement.
“We still have to be the stewards of public money. [But] it seems like we’re caught as a council between a rock and a hard place,” said Coun. Fule, adding that council is trying to look at a way to be fair in the tendering process to everyone and also to be fair to local communities.
Coun. Fule said it may be necessary to lobby the provincial government or other levels of government to take a look at this and give council a little more “wiggle room” as to ways council can approach local businesses.
Young Parkyn McNab has completed audits for the Town of Strathmore over the last six years.
“We found their services to be very satisfactory,” said Tiede.
He added that the town had asked about the cost of transitioning to a new accounting firm and was told it would need to spend between $10,000 to $20,000 on systems, documentation and other required items.
However, Gauvin questioned this amount, surmising the quote seemed perhaps too high, especially in light of technology available for these purposes.
Town of Strathmore mayor Michael Ell asked what the potential consequences would be of not following Canada’s NWPTA and Thackray responded that council may expose itself to a legal challenge.
“Nobody can argue the fact that Mr. Gauvin has given extraordinarily to our community,” said Coun. Denise Peterson. “However, we have an obligation to live under the contracts of our government.”
The idea of an annual auditor term versus a four-year term was brought up. Tiede said it would be difficult and he would not recommend it.