And some are even accusing members of hamlet council of favouring certain contractors over others because of their family connections.

The difference between the lowest and the winning bids for the two contracts in question amounts to almost $600,000 over three years.

Mayor Eddie Dillon defended council's decision, saying the losing contractors are just being poor sports.

"I don't think it's favouritism or nepotism or whatever," said Dillon. "People use that as an excuse to why they didn't get the contract."

He said the contracts fall within budget and residents won't see any increases in their water bills when the new water and sewer contracts come into effect April 1.

Nine bids for two contracts There were six bids for the water contract, and three for the sewer contract.

The uproar began a little more than two weeks ago when winners of the three-year contracts were announced. E. Felix Enterprises won the sewer contract at $552,000 per year. M & J Water Services was awarded the water delivery contract at $520,000 per year.

Peter Louie's J & L Transport put in the lowest bid for the water contract, at $399,000 per year.

"Over three years the difference between my bid and their bid is $400,000, and that's taxpayers' money they're throwing around," said Louie.

He said it's difficult to ignore the fact that the winning contractor -- M & J co-owner Millie Gruben -- is the sister of hamlet councillor Maureen Gruben, and aunt to Deputy Mayor Merven Gruben.

"It almost seems like their minds were made as to who was going to get it right from the start," said James Pokiak, owner of Ookpik Tours and Adventures, who -- at $456,000 per year -- had the second lowest bid for the water delivery contract.

Pokiak also had the lowest bid for the sewer contract at $476,000 per year.

There is no appeal process for failed contract bids in Tuktoyaktuk, but council did call a special meeting Jan. 23 to discuss the matter with the losing parties.

"We were basically told that we met the criteria that was set out, and yet, they still went ahead with the higher bid," said Pokiak.

Neither Maureen Gruben nor Merven Gruben would discuss the issue with News/North.

Millie Gruben's husband and co-owner of M & J, John Russell, returned a phone call made to the company but only to say they wouldn't comment.

Under guidelines set out by the Department of Municipal and Community Affairs, in order for a conflict of interest to arise, the elected official must be a direct relative -- either a spouse, mother, father, son or daughter -- to have a pecuniary interest.

Sisters and aunts don't count, according to the GNWT.

"In a community of 1,000, we're all connected somehow," said Dillon.

"We're not going to please everybody."