Charlottetown council backs out of controversial deal to lease vehicles

CHARLOTTETOWN, P.E.I. — The Metropolis of Charlottetown is backing out of a controversial car lease settlement deal it reached earlier this 12 months with a U.S.-based firm.

At a particular assembly of council on Aug. 22, the town’s elected officers voted 7-3 in favour of rescinding a decision that may have seen Enterprise Fleet Administration deal with the acquisition of municipal autos.

It was a deal that instantly raised the ire of the P.E.I. Car Sellers Affiliation as a result of it meant the town would not deal straight with native dealerships.

Coun. Bob Doiron, one of many seven councillors who voted in favour of skuttling the Enterprise settlement, stated the town ought to help native dealerships.

“Now we have individuals right here who know the (car) market,’’ Doiron stated.

The town’s take care of Enterprise would have resulted within the firm buying 19 autos for the municipality. The corporate was tasked with discovering autos on the lowest worth attainable.

Coun. Terry Bernard stated Aug. 22 the deal would save the town $260,000, arguing that metropolis workers advisable signing on with Enterprise.

“Relying on what the autos had been used for and what number of miles had been on them, Enterprise (had the experience) on what we must always do with them,’’ Bernard stated.

Coun. Greg Rivard stated he failed to know why the town needed to go together with Enterprise to economize on car purchases, including that the town might arrange a system the place the town’s autos are examined each two years and resold at a great worth.

“We don’t want an outdoor agency,’’ Rivard stated. “We are able to change the fleet each two years. The (P.E.I.) car affiliation had an enormous, enormous downside with this and I believe we’ve to hear. We don’t want an outdoor firm to save lots of the identical cash.’’

Coun. Mike Duffy, one of many three councillors who opposed rescinding the deal, stated it will have saved taxpayers tons of of 1000’s of {dollars}.

“In my 16 years on council, I’d say that is the worst choice I’ve seen,’’ Duffy stated. “We lastly have somebody who can get the utmost use out of our autos from an organization that is aware of what it’s doing.’’

Pulling out of the lease settlement gained’t price the town any monetary penalties as each Enterprise and the town each had out-clauses.

The vote

Following is the council vote on Aug. 22 to rescind the take care of Enterprise on car purchases:

• In favour of rescinding: Alanna Jankov, Julie McCabe, Mitchell Tweel, Jason Coady, Greg Rivard, Kevin Ramsay, Bob Doiron.

• Opposed: Mike Duffy, Terry Bernard, Terry MacLeod.

Dave Stewart is a reporter with the SaltWire Community in Prince Edward Island. He will be reached at [email protected] or on Twitter @DveStewart