CITY OF
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
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
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
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