Penticton councillors have raised questions about a new city policy governing consultants who received almost $1 million in fees last year. Coun. John Vassilaki wondered if council is losing control when staff recommended a measure that will make it easier to hire consultants who received $980,000 last year. “We are making it easier and easier to make decisions without the authorization of city council and it concerns me greatly,” he said. “We need to put a stop to this situation.” He issued that warning as council debated and eventually approved the measure that gives staff more leeway to hire consultants without competitive bidding. The city administrator can now approve consulting contracts of up to $50,000 without competitive bids and approval from council under revisions to the purchasing policy.The past limit was $15,000. The approved revisions also permit the administrator to ignore limits altogether in hiring consultants in a crisis or emergency.
Coun. Joanne Grimaldi also raised concerns about the recommendation. How can consultants gain experience with the city if it makes it more difficult to bid on contracts, she asked. “How can we ensure that we get a fresh perspective?” Purchasing manager Mike Ummenhofer said this additional flexibility would save the city money, provided staff select a consultant who was worked on local projects in the past. “The city would be better served by responding to the issues which required the consultant’s services in the first place, rather than wasting time shopping around for a better price,” he said. Delaying the selection of consultants through a competitive bidding process might actually turn time-sensitive issues into emergencies that would end up costing the city more money, he added. Ummenhofer said the new limit is within the norms of other municipalities, adding that the city has never signed a blank cheque when it hired consultants. “And by increasing this limit to $50,000 it will not do so in the future, either,” he said. Projects exceeding $50,000 would still go out for competitive bids unless the city faces a crisis or emergency.
Mayor Jake Kimberley said the new limit responds to the rising fees now charged by consultants whose numbers are also up. “It seems to be the trade of the day,” he said. Council unanimously approved the new limit and Vassilaki backed off from his earlier criticism when he said his concerns were not a commentary on the competence of staff. “I have all the confidence in the world in staff,” he said. “Don’t get me wrong.”Eight of the existing 13 consulting contracts exceed $50,000, with the remaining five ranging between $25,000 and $47,000.
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