By Mark Squibb/March 10, 2023
In a post-pandemic world, we’ve come to accept that everything costs more.
Mount Pearl City council found out this week that that includes toilet paper.
“In January 2023, the vendor supplying the City of Mount Pearl with washroom paper supplies advised that they were no longer able to continue to supply these products for the tender price bid in 2020,” councillor Bill Antle explained to his colleagues at their public meeting Tuesday. “The vendor informed the City of the required increases per case for paper towels and toilet tissue and have provided a guarantee to maintain these prices until December 31, 2023. An estimated increase of approximately $34,000 to the annual budget. Current pricing was sought from two other local vendors; however, their pricing was higher than our existing vendor’s newly submitted pricing.”
The agenda identified the exact price increases per item. For example, the price of a case of toilet paper rolls is increasing from $39.20 to $52.67.
“The committee recommends approval to accept the price increases of the lowest bidder, Chandler, and amend the existing contract to reflect the same and to notify the vendor that the City will extend the existing contract until December 31, 2023,” said Antle. “The committee further recommends that a new tender for washroom paper be completed in Fall 2023 seeking a new three-year contract.”
The usual situation called for further discussion, beginning with Mayor Dave Aker, who clarified the motion.
“So, in the middle of a contract, a vendor has asked for a price increase,” said Mayor Aker. “And it seems that they’re still the lowest in the market.”
Aker asked Director of Recreation and Community Services Jason Collins for further clarification.
‘’We could re-tender now,” said Collins. “But the thought is, if we wait until December, we could get better prices because we’re further out from the pandemic.”
The issue, though small in the grand scheme of things, did set off some alarm bells for council.
“We’re only taking a fairly small amount, but we’re really not when you’re talking about a tight budget,” said councilor Isabelle Fry. “And I’m just wondering if when we have a contract, do we have any legal standing to enforce that contract? Why do we have to adjust our prices?”
To that point, Aker, who also allowed he had some concerns with the motion, noted that if council was to switch toilet paper providers, it would end up costing even more.
‘So, I guess we’re making the best of a bad situation,” said Aker.
Deputy Mayor Nicole Kiley noted it’s not just about the toilet paper.
“We have had this come up time and time again, where we have been quoted, and then two to three months down the line, there are additional costs,” said Kieley. “That is just the volatility (of the market), and I think that is concerning as we see this more and more.”
Councilor Mark Rice also shared his thoughts on the matter.
“I do have some concerns with this as well,” said Rice. “Are we setting a precedent here? If we award tenders and contracts, can companies come to us in the middle of their contract and, just because it’s not making enough profit, cancel it?”
Like Fry, he wondered what legal options are available to the City if more companies begin requesting increases mid-contract.
“There was a lot of price gouging that happened during COVID, and there’s still a true reflection of that happening now in the industry,” said Rice.
Like Fry, Rice noted the City is working within a limited budget.
“This could be precedent setting thing here, with companies bidding on these tenders, so I just wanted to bring that to the table,” said Rice. “Because that’s a concern that I have.”
Councilor Jim Locke said he appreciated the concerns expressed by his fellow councillors, but also understood the rationale of approving the increase.
“It’s not a nice situation to be in,” said Locke. “But again, the rationale used was that we could cancel this contract and go to market. But, before we did that, we tested the waters of the market, and with the $34,000 increase, it’s still a better bang for our buck then if we drop the contract and go to the marketplace for another contract. So, the hope is that by December 31, 2023, the market may come back down once supply chains get built back up again.”
Councilor Chelsea Lane said the decision was not an easy one to make, but that cancelling the current contract and re-tendering was not a viable option.
“Even with this $34,000 increase, this is the best financial option for the City at this time,” said Lane.
The conversation circled back to Fry, who said she understood the predicament, but still expressed unease at the motion.
“$34,000 (more) is a lot of money for toilet paper,” summarised Fry,
Following the discussion, the motion passed unanimously.
The original contract price when the tender was awarded in April, 2020 was $34,419, meaning the price has since doubled.
