Elk Point to Research the Viability of Local Incentives

Town of Elk Point Council will be researching the viability of a local incentive program after receiving a letter from the community’s Chamber of Commerce urging the Town to do more to support local contractors in its tendering process. Town Council decided to look into neighbouring municipalities, as well as research the Municipal Government Act (MGA)more thoroughly to ensure a local incentive program is something that can be done and is lawful.

“We are going to look at it, but there’s a lot more to it than just buying local,” explains Town of Elk Point Councillor Lorne Young, “especially, when we’re using tax payer’s dollars.” According to the MGA, which is essentially the law book for municipalities, tenders (or the job bidding process) must be open to all contractors, not just local ones. On top of that most municipalities have policies in place that award contracts to the lowest competent bidder.

“We definitely, when we can, want to shop local,” Councillor Young explains that the Town has been urged to use local, regardless of whether or not the bid is lower.  Speaking for himself, Young explains his view, “I’m hesitant to award a tender to a local contractor, if they’re not the lowest bidder, because we’re using other people’s (the tax payers’) money. There is some danger to that.”

“One of the dangers to that is, if this becomes a policy, that we will accept local tenders, even if they are not the lowest tender price, it kind of changes the playing field a little bit because local contractors know they can bid a little bit higher.” Young explains that’s just one of the outcomes that Council needs to consider when reviewing their options.

Out of town contractors can also help stimulate the economy by staying in local hotels, dining at local restaurants and using local gas/convenience stores. On top of that, local contractors are free to bid on out of town jobs; which many do and should other towns across the province adapt the same policies it would hinder their ability to find work outside of the community.

The Town of Elk Point will look into neighbouring municipalities that have recently instated local incentive programs, such as the Town of Bonnyville. In Bonnyville when tenders are put out, instructions are included on the qualifications to be awarded, such as competency, bid price, and local. In the bid package it is outline what percentage of weight is given to each factor when the Town is determining to whom to award the bid to.

“We want to look at this, and we want to support local businesses as much as we can,” Councillor Young says Town Council will review their options and bring the discussion back to the table over the next couple months. “Because we’re using tax payers’ money, typically we’ll go with the lowest tender.”