Deal to lease Metropolis of Charlottetown autos from off-Island agency comes below hearth

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The Metropolis of Charlottetown has signed a brand new deal to lease all of its autos from a world fleet administration firm, sidestepping native sellers.

Town says the transfer will save taxpayers hundreds of {dollars}.

However some metropolis councillors, and a bunch representing native automotive dealerships, usually are not shopping for that argument. On Monday night time, the councillors requested that metropolis employees take a second take a look at the deal to ensure all the prices and impacts are identified.

Coun. Mitchell Tweel says metropolis corridor pushed by way of a deal with out figuring out all of the info. He stated he is not satisfied the town will see all of the financial savings it is promising. 

“We hear a lot about supporting native [businesses] — ‘we wish to help our native, inside motive, by no means value,'” stated Tweel. “I wasn’t comfy with it and that is why I stated no.”

‘It is a wonderful deal’

Native dealership house owners packed into a gathering final summer time when metropolis corridor first began dialogue with Enterprise Fleet Administration. 

The deal was authorized by a 4-3 vote in a particular assembly of council on Aug. 23, 2021. (Councillors Terry MacLeod, Terry Bernard, Kevin Ramsay and Mike Duffy voted for the movement; Councillors Bob Doiron, Julie McCabe, and Mitchell Tweel have been opposed; and Councillors Greg Rivard, Jason Coady and Alanna Jankov have been absent. Mayor Philip Brown votes solely within the case of a tie.) 

Town is now leasing its autos, somewhat than buying them by way of a public tendering course of. The primary order has now been positioned for 19 new autos, and the town stated the financial savings shall be substantial.

Coun. Mitchell Tweel says he’s not satisfied the town will see all of the financial savings it’s promising. (Wayne Thibodeau/CBC)

Coun. Bernard stated it is an excellent deal for the town. 

“I feel it is a wonderful deal for the Metropolis of Charlottetown, for the taxpayers of Charlottetown, the financial savings are substantial, the autos are bought by way of native and the upkeep on them is finished by way of native so to me it is a win-win state of affairs,” stated Bernard. 

 “Optics would not matter to me, it is the info that matter to me. The info are that we’re shopping for native, they ordered the final autos, they’re getting the mark-up and the Metropolis of Charlottetown is seeing the financial savings which might be important.” 

Coun. Terry Bernard says optics doesn’t matter to him, he is simply completely happy to see the financial savings, which he says are important. (Wayne Thibodeau/CBC)

Metropolis officers, for instance, stated final yr the town bought a Dodge half-ton 4X4 for $64,930. This yr, it leased a Ford half-ton 4X4 for $49,822, a financial savings of $14,958.

Sellers’ affiliation ‘disillusioned’

CBC Information reached out to various dealerships on the Island to search remark. Three expressed concern concerning the deal, however wouldn’t go on the report, preferring to let their affiliation converse for them.

The P.E.I. Car Sellers Affiliation additionally would not do an interview, however in an announcement, it stated it was “disillusioned that the Metropolis of Charlottetown has decided to vary the open tender course of and is transferring to working with an off-Island firm to accumulate fleet autos, somewhat than working straight with native car dealerships, the place they’d be assured the perfect worth.”

Lisa Doyle-MacBain, the chief director of the affiliation, instructed councillors that Enterprise orders straight by way of the producer. She famous that native dealerships will obtain what’s known as a “pass-through payment,” however stated that does not even cowl the prices related to the method, which incorporates a motorized vehicle inspection, pre-delivery inspection, and placing fuel within the tank.

Doyle-McBain stated the pass-through payment ranges from $200 to $400 relying on the producer. 

‘Working straight with native dealerships’

For its half, Enterprise Fleet Administration stated it really works with a whole lot of native governments.

Alex Reby, Enterprise Fleet Administration Director, Japanese Canada, stated in an announcement the town is estimated to appreciate a value financial savings of greater than $1.8 million over 10 years (Submitted)

“By partnering with Enterprise Fleet Administration, the Metropolis of Charlottetown is estimated to appreciate a value financial savings of greater than $1.8 million over 10 years in comparison with the present fleet technique,” Alex Reby, Enterprise Fleet Administration director, Japanese Canada, stated in an announcement to CBC Information. 

“Enterprise Fleet Administration is working straight with native dealerships on P.E.I. to order and ship autos. As well as, car upkeep repairs shall be made at native dealerships and physique outlets locally.”

The difficulty touched off a fiery alternate between Coun. Rivard and Stephen MacFadyen, the town’s public works superintendent. 

“My challenge actually boils right down to what was instructed to us within the council chambers, that there was going to be no impression to the dealerships,” stated Rivard.    

“That data is fake so all of the damage emotions you need, the purpose is that we have been instructed that nothing would occur and that the affiliation was completely happy.” 

‘My integrity is being questioned’

MacFadyen stated he has “no motive to mislead anyone.”  

The difficulty touched off a fiery alternate between Greg Rivard, a Charlottetown metropolis councillor, and Stephen MacFadyen, public works superintendent, throughout a gathering earlier this week. (YouTube)

“I used to be disillusioned Coun. Rivard to listen to that you just implied that we have been mendacity to you,” stated MacFadyen, throughout the public council assembly earlier this week.  

“You’ll be able to disagree whether or not you just like the proposal or not. I definitely don’t love the truth that my integrity is being questioned.”

Metropolis council has requested employees for extra particulars. 

The primary 19 autos have been ordered by way of Enterprise however the metropolis stated given the worldwide provide points, supply occasions haven’t been confirmed. 



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