Calgary company outbid locals by 60% for Penticton’s Peach contract

The City of Penticton will be raking in 60% more revenue by choosing an out-of-town operator to take over its famous Peach concession stand.

Many customers were surprised to learn last month that local operator Diana Stirling could lose the contract to a Calgary-based company, but the City has finally explained why. 

“The successful proposal was for $13,125 per year,” Angela Campbell, director of finance for the City of Penticton, said in an email.“The successful bid provides more than 60% higher revenues than the other two received to the City.”

READ MORE: Decision to hand iconic Penticton Peach to Alberta-based company irreversible: city

During a presentation to council at this week’s regular meeting, Campbell said the request-for-proposal criteria is structured to get the City the best value, in accordance with the New West Partnership Trade Agreement.

“In circumstances where there is no difference in value to the city, local suppliers will be given preferential treatment,” she said.

Councillor James Miller said he would like to see more points weight in favour of local business.

“When somebody’s doing a good job and there seems to be public support and sentiment on their side, I think that should almost weigh 80% in favour,” he said.

Miller took exception to a city press release titled, “New tenant of Peach concession awarded to local operator,” which he called misleading since Freshly Squeezed is based out of Calgary.

“As a journalist if I had handed such a story to my editor, I'd be disciplined.”

READ MORE: Overnight homeless campsite near Penticton's Peach ignites social media furor

Coun. Judy Sentes asked if there were ways the City could give heavier preference to local suppliers.

"You just can't have it as a criteria that said, 'I'm going to give you extra points for being local,'" Campbell said. "But if you’ve reviewed three proposals and they were all the same, then you could give preference to the local person, you just can’t have it as a criteria where you give them the preference in advance."

The rest of council were more content with the status quo.

Councillor Campbell Watt said council should be striving to keep the request for proposals process at arm’s length.

Mayor John Vassilaki said it’s not fair to criticize staff for properly following the process.

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