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Asphalt plant monopoly opposed by council

Whistler willing to pay more to avoid business with Alpine Paving

Whistler has spent millions on asphalt over the years but it appears there has been no competitive bidding process to secure the work until this year.

That has left Alpine Paving, the only local producer of asphalt, with a virtual monopoly on the business.

That appears to fly in the face of the municipal tendering policy which states:

"Purchases over $100,000 require a public tender... A combination of local, regional and national newspaper advertising will be used to locate interested parties. Opportunities will also be posted on the municipal website and electronic procurement sites such as BC Bid."

The policy also states that purchases under $100,000 require quotes from a minimum of three suppliers unless it is a low value purchase.

Despite repeated requests for an explanation on why asphalt wasn't tendered in the past, municipal hall staff remained mum this week.

Under the municipality's procurement policy it is allowed to negotiate with a sole source if there are no other providers available and no substitute.

The lack of a competitive process is cause for concern for Cheakamus Crossing resident Tim Koshul.

"Do we not do that (go out for public tender) on a lot of things that we spend money on in this town?" he asked at the end of the Thursday May 26 council meeting where council received three news bids on asphalt.

"Why don't we revisit that?"

This year, however, was different because the plant, which used to operate beside the town dump, while in the same location is now operating beside Whistler's newest neighbourhood - Cheakamus Crossing.

As such, the once under-the-radar operation has now become front-page news, as it fights to keep operating, even though council says it is in contravention of the bylaw.

In the first tender this year, Alpine was the only company to submit a bid, this despite the fact that municipal staff contacted other companies, alerting them to the tender. The asphalt was to be made at the Whistler plant. Council rejected the bid.

One month later, Alpine submitted another price at a 30 per cent premium to bring the asphalt from its Squamish plant. Council rejected that too and demanded a second public tender, which specifically stated the asphalt could not be produced with the municipal boundary.

Three companies bid on the work. Alpine's was the lowest quote, and its quote was more than $100,000 lower than its two previous quotes at $673,000.

"Using the same scope of work, the same price would have been $792,000... clearly demonstrating the benefit of the public tender process," said Joe Paul in his presentation to council.

Despite the new savings, council rejected the latest bid too.

"Every time it goes back to tender, we save money," said Koshul.

"It makes you scratch your head for sure."

Council has asked staff to investigate the possibility of awarding the work to the next lowest bidder - BA Blacktop - which came in $121,000 higher than Alpine.

A further $15,000 to $20,000 will now be spent on legal fees to look at the legalities of tendering law, as requested by Councillor Eckhard Zeidler.

"Because there's some sensitivity around this, I just want to make sure that we're on side and if council makes a decision to award it to someone other than the lowest bidder, whether we can get ourselves offside on the law on that," explained Zeidler of his request.

Acting Chief Administrative Officer Jan Jansen told council that the earliest that it could be heard in the court would be the end of June. In the meantime, the municipal paving program is on hold.

Councillor Chris Quinlan can't understand why the community isn't up in arms about what he sees as undue spending.

"Why are people not freaking out about this?" he asked this week.

"Where is the outrage at wasting $121,000 just to stand there and swagger and say 'we're not doing business with you because we think you may be offside,' and that's something that has not been determined."

But four members of council, which was enough for a majority, are comfortable with the added cost.

"My comfort level of dealing with an entity who is presently ignoring a cease and desist order makes me somewhat uncomfortable," explained Zeidler at the meeting.

He found support with Councillors Ted Milner, Grant Lamont and Acting Mayor Ralph Forsyth.

"I've always felt that you have to be very careful about who you do business with," said Milner, pointing out that the Whistler plant is still operating despite being asked to stop by the municipality.

Legal proceedings are underway and a petition to declare the plant in contravention of the zoning bylaw cannot be heard in the B.C. Supreme Court until September.

On the other side of the debate, Councillors Chris Quinlan, Tom Thomson and Mayor Ken Melamed (who participated via a patchy connection from Beijing where he is on official business), voted to award the contract to the lowest bidder.

"It's a premium that you're putting on the taxpayers of Whistler," said Quinlan.

He then, speaking directly to Zeidler, said:

"Look them in their eyes and tell them it's worth that."

Zeidler, under his breath, looked out at the roughly 50-member audience and said it was worth it.

Thomson said he was looking at the issue as a whole, for the entire community and not just a portion, namely the new residents at Cheakamus Crossing, who moved into the development beside the asphalt plant last year.

"I look at this as someone who is a prudent shopper," he said.

"As a prudent shopper... I will be supporting the staff recommendation that we purchase from Alpine Paving."

In the meantime, the municipal paving program remains up in the air. Roads, such as Blackcomb Way, are already under construction, with no timeline to repave.