CITY OF HUMBOLDT

PURCHASING POLICY

 

 

1.         PURPOSE & OBJECTIVE

1.1              The purpose of this policy is to establish the parameters for the acquisition, sale or lease of goods and services by the City of Humboldt. The policy establishes the basic direction, philosophies, climate and values upon which the purchasing function must operate.

 

1.2              The objective of the City’s Purchasing Policy is to ensure that goods and services are acquired through a fair, open, transparent and competitive process that uniformly balances the interests of taxpayers with the fair and equitable treatment of suppliers.

 

 

2.         DEFINITIONS

2.1       Consultant - includes individuals and firms who provide professional services, reports, opinions and recommendations in specialist areas.  For the purpose of this policy, consultant will not include those who perform day-to-day functions as an extension of in-house resources or those who are retained for on-going municipal operations.

 

2.2              Request for Proposals (RFP) - a request to vendors to submit proposals that are innovative.  Requests for proposals do not tie firms to existing processes or rigid specifications but, rather, encourage new approaches, techniques and methods for meeting the City’s requirements.  Requests for proposals must set out evaluation criteria to determine if the proposals are compliant.

 

2.3              Sole Source Contract - an agreement entered into by the City for the purchase of goods or services which has not been publicly advertised or for which written quotations or telephone quotations have not been received from more than one vendor.

 

2.4              Public Tender - a process wherein the specifications and conditions of the `tender are readily available to suppliers either through advertising or by invitation and bids are publicly opened.

 

 

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2.5              Purchasing Procedures - The City Administration shall develop and maintain purchasing procedures that provide city personnel with the guidelines and, where appropriate, the specific action sequences to ensure uniformity, compliance and control of purchasing activities.

 

2.6              Compliant - Compliant means that, in the sole opinion of the City, the bidder has the expertise and ability, physically and financially, to supply or perform the goods or services tendered, bid or proposed, and whose past performance or references are satisfactory to the City

 

 

3.                  ACQUISITION POLICY

3.1       When the City decides to acquire (purchase or rental) goods or services from outside parties it shall do so through the process outlined below:

 

a)         Public Tender with Public Advertising - A tender that is publicly advertised is required when the amount of the purchase is expected to exceed $250,000 or if it is deemed to be in the best interest of the City.

b)                  Invitational Tendering – Subject to subsection (a) invitational tenders may be utilised if all known suppliers in the City of Humboldt are invited to bid.

c)                  MERX - Pursuant to the federal provincial agreement on inter-provincial trade, tenders for goods over $100,000 and construction contracts over $250,000 must be advertised on the MERX computer system.

d)                  Facsimile Quotations - The acquisition of goods or services expected to be less than $5,000 may be completed by obtaining facsimile quotations from a minimum of three vendors.

e)                  Direct Awards  - a sole source contract may be awarded if the acquisition is expected to be less than $2,500 unless it is deemed to be in the best interest of the City to obtain written or facsimile quotations.

 

 

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f)                    Sole Source Contracts - The City retains the right to use a sole source contract with the prior approval of Council regardless of the amount of the contract. In the case of apparent emergencies, the City

Commissioner shall be empowered to sole source the acquisition.

 

 

4.         Tender/Bid/Proposal Acceptance Criteria

4.1              The City reserves the right to refuse any or all tenders, bids or proposals if:

 

i)                    the price exceeds the approved budget, or

ii)                   the tender documents or specifications contain errors.

 

4.2              Subject to the rights and reservations contained in the City’s purchasing policies and procedures and tender documents, the City shall accept the lowest compliant tender or bid meeting the City’s specifications.

 

 

5.         Awarding of Contracts

5.1              The City Commissioner has the authority to award public tenders, telephone/fax quotations, RFP's, and direct awards if all of the following conditions have been met:

 

(a)                sufficient funding has been provided for in the approved budget

(b)               the contract is being awarded to the lowest compliant bidder meeting specifications

(c)                 the award of the contract is not of a controversial nature.

 

5.2              All tender and RFP awards over $25,000 must be reported to City Council for the information of Council. The report shall confirm that the purchasing policy procedures have been uniformly applied for each award, or if not, inform Council of any deficiencies.

 

 

 

 

 

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5.3       City Council shall award contracts if any of the following conditions exist:

 

a)         sufficient funding has not been provided for in the budget

b)                  in the case of public tenders, the contract is not being awarded to the lowest compliant bidder meeting specifications

c)                  in the case of sole source contracts, the contract is in excess of $2,500.

d)                  the award of the contract is of a controversial nature

e)                  the City Commissioner, for any reason, refers the award of the contract to City Council.

 

 

6.         LEASES AND LAND SALES

6.1              Property is leased on the basis of the highest offer. The City Commissioner has the authority to lease property unless it is of a controversial nature. If the lease is of a controversial nature Council approval is required.

 

6.2              Property acquired pursuant to the Tax Enforcement Act (the Act) as a result of tax arrears shall be disposed of according to the specifications in the Act. The City Commissioner has the authority to sell tax title property unless it is of a controversial nature. If the sale is of a controversial nature Council approval is required.

 

6.3              Residential property shall be sold on the basis of the prices established by Council. The City Commissioner has the authority to sell residential property.

 

6.4              The City Commissioner has the authority to sell commercial property only if the price has been approved by Council.

 

 

 

 

 

 

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7.                  EXCEPTIONS

7.1       The requirement for a public tender does not apply to the purchase

of the following goods or services:

 

a)      utility contracts (telephone, power, etc),

b)      contracts or agreements relating to employee compensation, reimbursements, training, education, etc.

c)      land;

d)      any items, which due to their nature do not lend themselves to public tender.

 

 

8.         monies to be deposited

            8.1       All monies forwarded with tenders and RFP's shall immediately be

                  deposited in the City's bank account. The City shall refund the

                  deposits submitted by unsuccessful bidders.

 

 

9.         CONFLICT OF INTEREST

             9.1     No city employee shall place himself/herself or another in a

                       position of advantage or conflict when acquiring goods or services

                       on behalf of the City. Accepting gifts or favors from suppliers is

                       prohibited except promotional items such as caps, pens, golf shirts,

                       etc. with a value of under $30 and entertainment (excluding

                       alcohol) for the strict purpose of business discussions. Potential

                       conflicts should be referred to the City Commissioner in advance

                       for clarification.

 

 

 

 

 

Adopted by resolution of Council January 14, 2021

 

 

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