Competition fairest way of awarding bids: Mastroianni
Awarding a Welland insurance company city business over a small percentage in savings would lead the city down a slippery slope and present possible legal issues, council heard last week.
Ward 6 Coun. Jim Larouche wanted to see the city switch its general insurance from Frank Cowan Company to Wellandbased Youngs Insurance Brokers.
Larouche said Youngs is one of the companies that bid on carrying the city’s insurance and that it employs local residents.
“We have to look after our own when situations like this occur. Businesses need to know the City of Welland is behind them as a partner,” said the councillor, an account executive at F.E. Coyne Insurance Brokers in Welland.
Larouche said the difference in price quoted between the two firms was a small percentage and that the bids were nearly $100,000 under what was budgeted.
Ward 3 Coun. John Chiocchio shared the same sentiment as Larouche.
He said the city needs to invest in its own people.
Ward 2 Coun. David McLeod said while he would prefer to see a Welland company win a bid, that was not the case this time.
“If we go down this road, where does it stop? It was an open bid process and we’re getting the best coverage for the best price. There’s no reason to dispute this,” he said.
McLeod said when he was first on council, the city was paying $1 million a year for insurance.
With some reviews and changes in policies, it now only costs the city $630,000.
Ward 3 Coun. John Mastroianni said council would be heading down a slippery slope if it were to award Youngs the policy.
He said competition is the fairest way of doing things.
Mayor Frank Campion agreed and said as much as he’d like to give business to a local company there would be legal issues if the bid process was not followed.