Cumberland leads Canada, uses existing purchasing to impact society

Cumberland leads Canada, uses existing purchasing to impact society

PHOTO: Cumberland Mayor Leslie Baird at Tarbells on Dunsmuir Avenue

 

Around the world, the criteria for how to spend public money has shifted toward achieving a community’s social and economic values, in addition to getting the best value. The Village of Cumberland is leading the way for Canada, along with Comox resident Sandra Hamilton 

 

Comox Valley governments spend more than $100 million every year to purchase goods and services. The criteria for deciding from whom to make those purchases has been historically based on the most fiscally responsible option.

But in other parts of the world that way of thinking has shifted toward spending taxpayers’ dollars more strategically. Specifically, to not only get the best value, but to also provide social benefits.

It’s a concept called social procurement, using dollars the government was going to spend anyway to drive social change and economic development.

Canada has lagged the rest of the world in adopting social procurement, but not the Village of Cumberland.

Cumberland is the first Canadian municipality to incorporate a social procurement framework into its purchasing policy.

And it’s the first Canadian government body to receive certification from Buy Social Canada, an organization devoted to “bringing socially driven purchasers and social enterprise suppliers together … to generate social benefits to communities across the country.”

The village can already point to several community improvements directly attributable to social procurement. And Cumberland’s success has reverberated up and down Vancouver Island, across the province and into eastern Canada.

But for Cumberland Financial Officer Michelle Mason the blessings of leading a nation have come with a bit of a burden. Since the Village Council adopted social procurement in November of 2016, she has been inundated with calls from other B.C. and Canadian cities, including Toronto and Vancouver, seeking information about the policy.

“Most often, the first question is: What is this?” she said.

To answer that question, Mason has also travelled widely around the province making presentations about Cumberland’s nation-leading policy as more communities start to realize the benefits of social procurement. She recently addressed the annual convention of the B.C. Government Financial Officers Association.

The importance of Mason’s role in educating other municipalities about social procurement has inspired a group of Island mayors to envision a Social Procurement Hub that would take her work to the next level.

FURTHER READING: Island mayors work together to create Community Benefit Hub

Cumberland leading Canada

While living in Scotland in 2012/2013, Cumberland Councillor Jesse Kelter observed the Scottish government wrestle with the idea of leveraging public spending to create community benefits. She was there with her husband, who had a temporary work assignment, and her children.

She remembers reading the newspapers about the debate and thinking, “this is about building better relationships with our suppliers, making it more than just a business transaction about price,” she said. “It’s about building a better community together.”

Her understanding of how social procurement could work for local government came from a conversation she had at a Christmas party with Sandra Hamilton.

Councillor Jesse Kelter

After Kelter was elected to public office in the fall of 2014, she posed the idea of adding social values into the village’s purchasing policy during the council’s 2015 Future Priorities session.

“It was an easy sell to council,” she remembers. “And staff were very receptive.”

Cumberland Mayor Leslie Baird was on board immediately. She had taken a similar idea to an unreceptive council in 2011 .

It took another year and some outside expert help from Comox resident Sandra Hamilton to help draft Canada’s first social procurement framework, but it all came together when the village updated its purchasing policy in November of 2016.

“Sandra played an initial role early in the development of her social consulting business,” Baird said. “And we were fortunate staff was so supportive. It took all of us coming together to make it happen.”

Hamilton, a United Kingdom native now living in Comox, is Canada’s first social MBA and a public sector social procurement consultant working with all three levels of government.

Scotland has since become the world’s first country to make social procurement a law.

What is social procurement?

The Village of Cumberland has a special page on its website devoted to its social procurement policy, where it introduces the concept this way:

“Social procurement leverages the public procurement process for goods and services, to advance positive economic, workforce, and social development outcomes. Social procurement blends financial and social considerations in public sector purchasing ….”

That’s a lot of words, but the rationale is simple: provide social value for the money a government spends. It’s an invitation for suppliers to advance a community’s social and economic goals through the tendering and procurement process.

FURTHER READING: Village of Cumberland’s social procurement website page

Mayor Baird puts it more directly.

“Our major suppliers are not from Cumberland, so our village doesn’t benefit from the volunteering, sponsorships and all the other wonderful community services they donate in their hometowns,” she said. “So what we’re doing is leveraging our spending to receive some of that community benefit.”

How it works in practice

When evaluating bids for a Village of Cumberland contract, staff and elected officials consider the usual criteria of quality, price and environmental issues, but now add a fourth component: social.

Bidders must meet certain social values determined by the Village Council. They include a living wage evaluation and apprenticeship opportunities for residents of the village who are at-risk youth, aboriginal people, women, newcomers to Canada or retiring veterans and people transitioning into new careers.

Community Benefit Clauses (CBCs) valued at between 5 percent to 15 percent of the total contract may also be added. You can read the list of goals that a CBC should address here.

The Sutton lane multi-use path project

When the local J.R. Edgett company won the contract for separating wastewater and stormwater pipes along Dunsmuir Avenue, it discussed possible CBCs with village staff.

At the time, the village was trying to build a BMX bike jump park next to its skate park. Edgett offered to utilize anticipated down time of equipment and labor already onsite for the pipeline project to provide the fill and finish the jump park.

When Edgett was also hired to build a new bike lane for mountain bikers to travel safely from the Cumberland Recreation Institute parking lot down to the main entrance into the MTB trails, they also contributed to the building of trails in the Cumberland Community Forest.

Councillor Kelter and CFO Mason point out that the policy is not prescriptive to suppliers. They are allowed autonomy to be creative about offering a community benefit, but must meet at least two goals to be considered.

“It’s like we say, here are our goals, tell us how you can help us achieve some them without affecting your price,” Mason said. “Vendors know their business better than we do, and they’re creative.”

Mason said sometimes a company needs temporary employees for the job, so they offer to hire qualified Cumberland residents. Or, the company is from Vancouver and they have to rent apartments for their workers, so they get credit for what they’re already doing.

Benefits for community and contractors

Council members and staff worried that fewer vendors would bid on Cumberland projects after the social procurement policy was adopted. It turned out to be a needless worry.

The village’s last tender for its new water supply UV treatment plant attracted eight bidders, considered a healthy number by Operations Manager Rob Crisfield.

The main concern expressed by the construction industry is for consistency in the Request for Proposal process. Adding a social component to the RFP means a five to 10 page document, which can be daunting to suppliers.

The Island Social Procurement Hub would address this issue, and Financial Officier Mason has been working on creating competitive bidding templates to make it easier on vendors.

But Mayor Baird says social procurement policies are really protections for local contractors against globalization.

“All governments are open to global bids when the spendf reaches a certain dollar level,” she said. “But what will a vendor from far away do for our community?”

Baird speculates that social procurement policies have spread so quickly throughout Europe and Australia because it’s a “means of protecting our own workers.”

Sandra Hamilton

Before helping Cumberland write its policy, Sandra Hamilton worked as the director of marketing for The Vancouver Sun, and owned and published BC Woman Magazine.

Sandra Hamilton

But when she later acted as the business manager for John Furlong, CEO of the Vancouver 2010 Olympics, her mind was opened to the potential for social procurement. She was engaged in the Vancouver Olympics effort to include social criteria into its purchasing policies.

“For example, we awarded the floral contract to a company that offered to train inmates at the Women’s Transition Society Prison as florists during their contract period,” Hamilton said. “Half of them are still working as florists today.”

That’s when it clicked for her. Why not add social values into all taxpayer contracts, and align procurement with each government body’s policy objectives?

Hamilton has since earned the nation’s first social MBA and has helped draft both B.C.’s (Cumberland) and Alberta’s (Fort McMurray) first social procurement policies.

FURTHER READING: Sandra Hamilton’s website

She now speaks across the country, and is recognized as one of the nation’s leading social procurement experts. She was Canada’s nominee to speak about social procurement at the World Trade Organization (WTO) symposium in Geneva last February. In March she spoke on the topic at the Canadian Construction Conference in Mexico.

On a local level, Hamilton was the project lead for the FEED initiative through North Island College to get food grown by Comox Valley farmers into local institutions, such as the Comox Valley Hospital.

“Tax dollars drive our economy and shapes out communities,” she said. “But governments are still procuring and buying like they did 30-40 years ago — that’s the change I’m driving for.”

What’s next

The City of Victoria, Town of Qualicum Beach and City of Campbell River are working together on a pilot project to design and develop a standardized approach to adding social value into infrastructure projects.

The Social Procurement Hub will soon solicit for an employee to travel the province sharing information from Cumberland and other governments and helping municipal governments to establish their own policies.

FURTHER READING: The United Nations global review of sustainable public procurement

 

Cumberland UBCM resolution set the stage for a social hub

Cumberland UBCM resolution set the stage for a social hub

PHOTO: Jesse Kelter presents resolution B76 at the 2017 UBCM conference.

Vancouver Island mayors are working together and with the construction industry to ease the transition to a new local government procurement process that includes the achievement of a community’s social and economic goals with a community benefit hub

 

While the Village of Cumberland was the first Canadian municipality to implement social procurement, the program is spreading quickly to other BC cities.

The City of Vancouver expects to adopt its policy before the end of this year, and the City of Victoria has been moving toward full-scale social procurement since 2015.

And Victoria Mayor Lisa Helps has been a major player in a group of eight Vancouver Island mayors who have been meeting every quarter for the past two years. And they have worked closely with the Vancouver Island Construction Association.

Victoria Mayor Lisa Helps

One of the results of their work was to develop a proposal for a Social Procurement Hub.

“What we’ve heard from industry is that they want a coordinated approach (to social procurement),” she told Decafnation in a telephone interview. “They want predictability and consistency in the tendering process.”

The hub would provide templates for municipalities to use in their procurement process, as well as education and expertise for municipal staff as the public sector pivots to community benefits.

The hub got a boost when Cumberland Councillor Jesse Kelter put forward a resolution at the 2016 meeting of the Association of Vancouver Island Coast Communities to advance social procurement in the local government sector, and to create a hub for education and expertise. It passed overwhelmingly. And was subsequently supported at the province-wide Union of B.C. Municipalities.

Victoria has commited $50,000 for two years to fund the hub and the town of Qualicum Beach is applying for a $50,000 provincial grant.

The idea behind the hub is to prove the concept of social procurement works in a wide variety of geographic locations.

“It’s a two-year incubation period,” Helps said. “We’ll find out what’s working, and what’s not working with industry, and adjust.”

The hub would be administred and located in Victoria, but with satellite offices in Qualicum Beach and Campbell River.

Helps said the mayors group hopes to put out a contract for one hub employee who will work with industry and local governments to learn, share experiences and move social procurement forward collaboratively.

The group’s next meeting is in July at Qualicum Beach.

Comox resident Sandra Hamilton, one of Canada’s leading experts on social procurement, has been advising the mayors group.

FURTHER READING: Victoria Mayor Lisa Helps’ task force action plan on social procurement; City of Vancouver working paper on social procurement

 

Who wields the real power: staff or elected officials?

Who wields the real power: staff or elected officials?

PHOTO: The Edmonton organics processing program is the largest in North America.

 

Who do you think makes the important decisions that affect our communities?

It’s natural to answer, “Our elected officials.” That’s who we hold accountable for our government’s performance. But all too often elected officials haven’t read or can’t understand technical information presented to them by staff or independent consultants, and so they simply acquiesce to recommendations put before them. 

And that puts staff in charge.

This natural tension erupted at the Comox Strathcona Waste Management (CSWM) board last week, creating a showdown over where to build the new organics composting facility.

During a routine process to award the contract for engineering services, board member Marg Grant, representing Comox Council, triggered a debate that angered many directors. She asked if there would be one or two composting facilities.

Comox Valley Regional District Senior Engineer Mark Rutten answered that the CSWM’s advisory committee wants to explore all options for siting the facility, including Pigeon Lake or having two facilities.

“It’s worth reviewing,” he said.

The advisory committee consists of one staff member from the municipalities of Comox, Courtenay, Campbell River, Tahsis, Gold River, Sayward and seven staff members from the CVRD.

Rutten’s remarks set off a firestorm of angry comments from elected officials on the board, which has previously debated the issue and decided to build the organics facility in Campbell River.

Upset directors, such as Larry Samson, of Campbell River, accused staff of attempting to subvert the board’s decision.

Larry Samson
CR Councillor

“We’ve already debated this. Staff doesn’t like the answer, but we’ve already hashed this out,” he said.

Comox Valley Area B representative Ron Nichol said, “This is the first I’ve heard of two facilities. We debated this for over a year.”

Charlie Cornfield, of Campbell River, suggested staff was trying to change the Terms of Reference for the consulting contract without board approval. He was alarmed that no communication had come back to the Campbell River council about reconsidering the facility’s location.

The board amended the motion to award the contract to specify the Campbell River location. They were, in other words, admonishing Rutten for suggesting the advisory committee could disregard a board position.

The incident exposes the potential for staff to subtly direct projects by only feeding elected officials the information they think will get them the results they want.

Marg Grant
Comox Councillor

Marg Grant, of Comox, cast the lone vote against the amended motion.

“The Town of Comox Council’s position has always been: the entire region would be better served with two small compost facilities vs. one large facility in Campbell River,” she said via email.

Grant said the organics pilot project at Pigeon Lake has proved successful, it has existing infrastructure, it’s compatible with the site and staff have already been trained.

She also questioned the costs of backhauling organics to Campbell River, which Comox town staff raised in the advisory committee.

According to the minutes of the March 30, 2017, advisory committee meeting, “Town of Comox staff expressed concern regarding potential higher tipping fees associated with this project if hosted in Campbell River rather than the Comox Valley.”

But the other directors said it’s unlikely a Campbell River location for organics would increase garbage dumping fees. Campbell River, like every other north Island community, will truck their municipal waste to the Comox Valley, and the Comox Valley will send it’s organics back to Campbell River on what would otherwise be an empty truck.

This furor over siting the organics facility highlights the delicate relationship between the CSWM board and its staff advisory committee.

Directors also expressed concerns that the advisory committee receives reports before the board gets them, including in-camera reports, and that staff recommendations appear to give more weight to the advisory board’s suggestions than the views of elected board members.

The story behind recent Comox union negotiations

The story behind recent Comox union negotiations

In a press release published by the Comox Valley Record recently, Comox Mayor Paul Ives put a positive spin on the town’s new five-year collective agreement. But there’s much more to this story.

It is good news, of course, that the town finally reached an agreement, considering that the last contract expired in March 2016, about a year-and-a-half ago. But why it took so long hints at the unreported backstory.

What Ives and the rest of the Comox Council don’t want you to know is that they tried to crack their public employees union with a two-tiered wage proposal.

Ives didn’t mention that the union staged multiple flash mobs waving signs of discontent around the Comox Valley, or their overwhelming strike vote, or the reason for such unrest by good, hard-working people.

According to several sources with inside knowledge of the negotiations between the Town of Comox and CUPE local 556, which represents municipal employees throughout the Comox Valley, the town hired an out-of-town negotiator who pressed a proposal that would have divided employees.

The town proposed that all new hires in certain categories would be compensated according to a different, and lower, wage structure. For example, when the town hired new custodians and gardeners, they would have worked under a separate compensation agreement, and the town would have paid them less.

That idea didn’t sit well with the town’s working people.

During the negotiations, Comox employees staged many flash mobs around the Comox Valley, waving signs that urged support for protecting the livelihood of future town employees.

So, after 80 percent of the town’s employees voted unanimously to strike, the town withdrew its proposal, terminated its hired-gun negotiator and a contract agreement was reached.

Surprise! All the employees wanted was a fair deal.

Did Mayor Ives and council members want to break the union? That is a logical interpretation of its proposed two-tiered wage structure. The purpose of the proposal is clear: At some point in the future, as existing workers on the current pay grid retired or moved on to other jobs, the town would employ only these lower-paid workers.

What other explanation is there? I suppose is it also possible that the Town of Comox’s finances are in such bad shape that they have to reduce expenses by squeezing their working-class employees.

But it wouldn’t seem so, considering the town just spent nearly $2 million on a twin-sail-roof building, and other upgrades at Marina Park, without knowing exactly how it will be used. The town is only now holding meetings to figure that out.

And that dollar figure doesn’t include the new children’s splash park, which is a nice addition.

Mayor Ives refused to comment for this story, except to say that all my “facts are as usual wrong,” but he declined an opportunity to specify and correct the errant facts to which he referred.

 

Comox Valley Agriplex: white elephant or dream facility?

Comox Valley Agriplex: white elephant or dream facility?

For more than three decades, some Comox Valley community organizations and elected officials have touted the need for a convention center.

The Comox Valley lacks a facility that can accommodate the large numbers of people or trade show booths and equipment required by big event promoters, which some see as a potential economic driver.

But others view such large facilities as future white elephants, often underused and almost always a drain on taxpayers. In this view, the Valley simply has unrequited conference center envy.

So while there’s been much discussion about building a convention center in the Comox Valley, it has never gotten further than a lot of talk.

Until now.

The Comox Valley Farmers Institute (CVFI) and the Comox Valley Exhibition Grounds (CVEG) have recently formed an unlikely and somewhat uneasy alliance to achieve what generations of community organizations could not: a multi-use facility for a variety of community user groups that can seat up to 5,000 people.

The CVFI imagines a facility where people can play indoor soccer, tennis, pickleball or ride horses. Where groups can hold large sit-down dinners. Where promoters can stage equipment trade shows, monster truck events, BMX competitions and concerts.

The CVEG envisions a smaller Agricultural Awareness Center that has gotten a little lost in the grand idea of a multi-use facility. They imagine a 12,000 square-foot facility that would benefit farmers with a commercial kitchen and diagnostic lab to develop and test new products.

But in order to get support from MLA Don McRae and other elected officials, the two groups had to merge their competing proposals. The payoff was a B.C. Liberal Party promise of $5 million toward the project, if they’re re-elected.

Courtenay and Comox councils have supported the idea and the Comox Valley Regional District is playing along. Its Committee of the Whole green-lighted a master plan for the Comox Valley Exhibition Grounds this week that includes a future 78,000 square-foot-plus multi-use event center.

But that doesn’t mean the facility is a certainty because there are a number of public and financial concerns that haven’t been addressed. They are:

Traffic congestion — The exhibition grounds area is already congested during event days. Cars often park along Headquarters Road even during regular Saturday morning Farmers Market events. When larger events take place — Music Fest, Rib Fest, etc. — the roadside parking extends further and along side roads like Vanier Drive. Daily traffic to Mt. Washington or to the Island Highway — it’s the truck route — complicates the congestion, though the dead-ending of Piercy Road at the old bridge and large roundabouts will help.

Parking — A new 500-car parking lot is proposed on the CVRD’s recently acquired property, the former Stonehenge Farm, which will help and be adequate for most community user groups, but parking will still spill onto side roads for large events.

Loss of ALR land — Removing property from the Agricultural Land Reserve must meet a provincial test. Calling the facility an ‘agriplex’ and having one or two farm-related events isn’t enough. The CVEG’s Agricultural Awareness Center, however, does qualify.

Construction costs — Current estimates range from $12 million to $15 million, but that could go higher after the CVFI meets with user groups and finalizes a design for the proposed project. Soil engineers may add extra cost to the project given the nearby floodplain and how far down they find bedrock suitable for the foundation’s footings.

Politics — The B.C. Liberal Party has promised $5 million, but what happens if the NDP forms the next provincial government? There’s been no promise of funding from the NDP. Or, what happens if the B.C. Liberals win the May 9 election, but the Comox Valley riding elects an NDP member?

How much are taxpayers willing to pay? — There is no formal business plan yet that estimates the amount of taxes Valley residents will pay to subsidize the multiplex operation on an annual basis. And these types of publicly owned facilities always need an annual public subsidy.

With the regional district’s approval, the CVFI and CVEG now know they can build a multi-use facility on the site. The next step is to meet with potential community user groups to determine if they will use it, at what rental price and if they have specific requirements that must be built into the design. Only after that, can the groups accurately estimate construction costs.

But they also need a professional management firm to assess the potential market of organizations likely to rent the facility. Because without sufficient outside revenue to pay operating expenses, including administrative overhead, one of two things will happen: local community user groups won’t be able to afford the rental fees (outside revenue keeps them low), or Comox Valley property owners will pay higher taxes to subsidize the facility.