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HomeMy WebLinkAboutBy-law 5900/01THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. 5900/01 Being a By-Law for establishing policies governing disposal of goods and services. (Hereinafter called the Purchasing By-Law) the purchase and WHEREAS the Council of the Corporation of the City of Pickering (hereinafter the City) has sole authority to allocate funds through its adoption of budgets for approved corporate programs and objectives; AND WHEREAS the City recognizes the need for sound and effective purchasing policies for the commitment of public funds in the acquisition of goods and services; AND WHEREAS this By-Law establishes the authority and responsibilities governing the purchase and disposal of goods and services subject to certain exceptions; AND WHEREAS in the interests of administrative efficiency and the elimination of unnecessary duplication of service, the Library has historically adopted the purchasing policies and procedures of the City; AND WHEREAS this By-Law anticipates the continuation of the cooperative arrangements between the City and the Library; AND WHEREAS the Council of the Corporation has by Resolution adopted on March 20, 1989 authorized the enactment of this By-Law and the repeal of Resolution #35/89 and any other By- Laws or resolutions formerly governing the subject matter of this By-Law; NOW THEREFORE, notwithstanding any other By-Law or policy, the Council of the Corporation enacts the following Purchasing Policy as detailed in Attachment 1: BY-LAW read a first, second and third time and finally passed this 5th day of November, 2001. Wayne Arthurs, r /~3ruce Taylor, Clerk Approval: Chief Administrative Officer Reference: CITY POLICY Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001/001 Policy Title: PURCHASING POLICY POLICY STATEMENT: We will provide leadership, quality customer service and best value to the taxpayers of the City of Pickering through the provision of open and fair, equitable, accessible and competitive bidding processes. We are committed to: timely, efficient and professional service delivery, appropriate delegation of commitment authority, consultation and co-operation, partnerships both internal and external, innovative solutions, standardization, education and collective knowledge of products and market conditions, developing and maintaining good supplier/client relations and supplier /client outreach. POLICY OBJECTIVE: The object of this Policy is to: 1. Demonstrate a process that could encompass large, high value, complex procurements. Seek out appropriate vendors and conclude the purchase arrangement such that best value is achieved. 3. Maintain the City's business and promote practices. Promote the purchasing methods and purchasing 'tools' outlined in the policy and procedures to allow staff t° effectively and efficiently carry out their responsibilities and acquire goods on time. Page 1 of 1 CITY POLICY Approval: Chief Administrative Officer Refe re n ce: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001 Policy Title: PURCHASING POLICY GENERAL: 01 Definitions: 01.01 01.02 01.03 01.04 01.05 01.06 01.07 01.08 01.09 Acquisition - the process of obtaining goods and services Bidder - the person, firm or corporation submitting an offer to the City Board - a group of persons who manage or control an aspect of business related to the City Centralized Purchasing - the activities conducted by the Supply & Services Section of the Corporate Services Department, which is responsible for the acquisition of all goods, and services as provided in this By-law City - the Corporation of the City of Pickering Consulting and Professional Services - services requiring essential technical skills provided on the basis of a defined project or undertaking to recommend and assist in implementing solutions; and may include supervision related to the project or undertaking; includes architects, engineers, designers, surveyors, management and financial consultants, brokers, soil consultants, real estate appraisers, Ontario land surveyors Contract - a binding agreement between two or more parties Co-Operative Purchasing - the participation of two or more public agencies in a call for tenders Council - the Council of the Corporation of the City of Pickering Page 1 of 11 CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001 Policy Title: PURCHASING POLICY 01.10 01.11 01.12 01.13 01.14 01.15 01.16 01.17 01.18 01.19 Department Head - the head of any City department appointed by Council to serve as Director of a department within the organization, or authorized delegate or in specifically related instances, the Chief Executive Officer of the Library EmerqencY - a situation with potential to cause harm, death, to persons; accrue liability to the City; cause damage to property; or hamper the City's operation - as a result of the City's inaction and warrants operating outside of the requirements of this By-law Goods and Services - labour, materials, products, equipment, services, supplies, acts required to be done, furnished or performed by a company that are the subject of the contract Manager - the Manager of Supply & Services Proposal - an offer from a supplier in response to a request for proposal, which may be subject to further negotiation Purchase Requisition or Requisition - a request, in an approved form, to the Supply & Services division to acquire goods or services Quotation - an offer from a supplier to buy from or sell goods or services to the City Real Property - lands, buildings, tenements and any interest, estate or right or easement affecting same Standinq Committee - a committee appointed by Council Surety - a specified dollar amount' in the form. acceptable to the Treasurer of cash, certified cheque, bid bond, performance bond, labour and materials bond, letter of credit or any other approved form of collateral as deemed necessary Page 2 of 11 CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001 Policy Title: PURCHASING POLICY 02 01.20 Tender - a written offer in a specified form received from a bidder in response to an invitation to a public call for tenders Responsibilities: 02.01 Council to: (a) Approve this policy (b) Support the Purchasing Policy 02.02 Chief Administrative Officer: (a) Approve amendments to this policy (b) Support the Purchasing Policy 02.03 Department/Division Heads/Managers to: (a) Support the Purchasing Policy 02.04 Director of Corporate Services to: (a) Approve amendments to this policy for the consideration of the (b) (c) Chief Administrative Officer Provide final interpretations and rulings in regards to the understanding and implementation of this policy Support the Purchasing Policy 02.05 Manager of Supply & Services to: (a) Prepare and maintain administrative procedures required to implement the provisions of this policy (b) Present such administrative procedures first to the Director, Corporate Services and then to the Chief Administrative Officer for their approval. Page 3 of '11 Approval: Chief Administrative Officer Reference: CITY POLICY Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001 Policy Title: PURCHASING POLICY O3 04 Purchasincl Principles The Manager, Supply & Services (hereinafter referred to as the Manager) shall: 03.01 Be responsible for the provision of all purchasing services for the acquisition and disposition of all goods and services required by the City and the Library (hereinafter referred to collectively as the City). 03.02 Arrange for the procurement, by purchase, rental or lease, the required quality and quantity of goods and services in an efficient and cost- effective manner. 03.03 03.04 Ensure the greatest value for the City by exercising professional purchasing practices, free from influence and interference, and encourage where practical, standardization and open and competitive bidding. Promote acceptance of bids based on total acquisition and life cycle cost rather than the lowest bid received. 03.05 Provide for the appropriate level of delegated commitment authority to enable clients to meet service level expectations. 03.06 03.07 Assist in the facilitation, comparison and assessment of alternate service delivery options. Encourage wherever applicable, specifications that are environmentally responsible and friendly. Authorities and Dollar Limits 04.01 The Manager, who shall report to the Director of Corporate Services and Treasurer, (hereinafter referred to as the Treasurer) is hereby given the authority and responsibility to operate a centralized purchasing program on behalf of the City of Picketing in accordance with the requirements of Page 4 of 11 PICKER1NG Approval: Chief Administrative Officer Reference: Policy Title: CITY POLICY Date Originated: Date Revised: policy Number: Classification: FIN Category: 020 Subject: 001 PURCHASING POLICY 04.02 04.03 04.04 04.05 -04.06 04.07 this By-law and to act on behalf of the City in entering into contracts with third parties for the purchase and disposal of all goods and services. The Manager, with the approval of the department head responsible for the employees concerned, may delegate to an employee or employees who are not in Supply & Services, all or part of the authority to purchase goods and services up to an amount of $500 on the understanding that employees use their own judgement to promote the objectives of this by- law in any competitive or direct purchase. Goods and services with an estimated total purchase price greater than $500 and not exceeding $5,000, shall be obtained by the Manager by an acceptable method of purchase and shall be so documented. Informal written qUotations shall be obtained if possible for purchases between $5,000 and $25,000 and shall be so documented. After consultation with the appropriate department head, the Manager shall approve an award upon such terms and conditions deemed beneficial to the City on the understanding that the objectives of this by-law in any competitive or direct purchase are met. Goods and services with an estimated total purchase .price greater than $25,000 and not exceeding $100,000, shall be obtained by the Manager by soliciting a minimum of three formal written quotations if possible. Where the compliant quotation meeting specifications and offering the best value to the City is acceptable, and subject to consultation with the appropriate department head, the Manager shall approve the award. An award exceeding $75,000 is subject to Council approval. A summary of contract awards arising from the formal quotation process shall be forwarded to Council as information only on a quarterly basis. Goods and services with an estimated total purchase price greater than $100,000 shall be obtained by the Manager by sealed public tender. Tenders will be publicly advertised or by invitation from a list of qualified Page 5 of 11 Approval: Chief Administrative Officer Refe re n ce: CITY POLICY Date Originated: Date Revised: -Policy Number: Classification: Category: FIN 020 Subject: 001 Policy Title: PURCHASING POLICY 04.08 O4 .O9 bidders, or a combination' thereof, Tenders will be issued, received and then opened in public. Tenders that are late, illegible, unsigned, contain insufficient deposit, contain uncertified cheques, or do not include a deposit, bond or surety, shall be rejected. The terms and conditions of the deposit, bond or surety are subject to the approval of the Treasurer. In the case of purchase arrangements that exceed one year or allow for extension for more than one year subject to satisfactory negotiations, and the value of the original term or results of any extension will result in the total contract price exceeding $100,000 the report recommending award shall so indicate. After consultation with the appropriate department head, the Manager will recommend or concur in a recommendation to Council who shall approve the award. Notwithstanding the provisions of Section 04.00, goods and services including but not limited to the acquisition of consulting and professional services may also be made through the use of Requests for Proposals (RFP). The Manager, subject to consultation with the appropriate department head shall approve the award of a proposal for the purchase of goods and services up to $25,000. The Manager, subject to consultation with the appropriate department head, will recommend or concur in a recommendation to the Chief Administrative Officer who shall approve the award of a proposal for the purchase of goods and services from $25,000 to $50,000. Where it expected that the total purchase price is greater than $50,000, a selection committee shall be established consisting of the Manager, the initiating department head and other individuals having appropriate expertise. The selection committee shall determine a recommendation for award. A joint report setting out the recommendation shall be Page 6 of 11 CITY POLICY Approval: Chief Administrative Officer Refe re n ce: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001 Policy Title: PURCHASING POLICY 04.10 04.11 04.12 04.13 04.14 submitted by the Department Head and Manager to the appropriate Standing Committee and Council who shall approve the award. In the case of purchase arrangements by Request for Proposal (RFP) that exceed one year or allow for extension for more than one year subject to satisfactory negotiations, and the value of the original term or results of any extension will result in the total contract price exceeding $50,000 the report recommending award shall so indicate. The Manager shall ensure that all recommendations dealing with the award of tenders or proposals contain the appropriate funding statement from the Treasurer. Notwithstanding 04.01, subject to statutory requirements and where all the requirements of this By-law have been met, the appropriate officials are authorized to execute formal contracts. Authorities and responsibilities shall be applied and administered having regard to the provisions of the Corporate Financial Controls By-law and approved Signing Authorities. Authorization limits shall adjust annually in accordance with the Consumer Price Index as published by Statistics Canada and the Manager shall advise accordingly. Where an official of the City is authorized to act pursuant to this By-law such act may be done by such official's authorized designate. Page 7 of 11 CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001 Policy Title: PURCHASING POLICY 05 Ne.qotiation O6 The Manager, is authorized to enter into negotiations without formal competitive bids, under the following circumstances: 05.01 When an event which could not be foreseen occurs, that is'a threat to public health, service, welfare or public property, and requires the immediate delivery of supplies or performance of service. 05.02 When competition is precluded because of the existence of a sole source, patent rights, copyrights, secret processes, control of basic raw material or similar circumstances. 05.03 05.04 When bids have been solicited and no responsive bid has been received, or the lowest bid received .exceeds the estimated cost, or the lowest bids received are identical. When all bids fail to comply with the specifications or conditions and it is impractical to recall. 05.05 When the extension or reinstatement of an existing contract would prove most cost-effective or beneficial. The extension shall not exceed one year. 05.06 When a fluctuating market prevents the Manager from obtaining price protection or owing to market conditions, required goods or services are in short supply. Emergency Purchase 06.01 In a situation where the immediate purchase of goods or services is essential to prevent serious delays, further damage, threat to life, restore minimum service, the Manager shall, on the approval of the appropriate, department head obtain such goods and services at the lowest obtainable prices given the emergent nature of the situation. In the event that the purchase amount exceeds $5,000, the Treasurer is to be notified at the Page 8 of 11 Approval: Chief Administrative Officer Reference: Policy Title: CITY POLICY Date Originated: Date Revised: PURCHASING POLICY Policy Number: Classification: FIN Category: 020 Subject: 001 07 08 O9 earliest time. In the event that the purchase amount exceeds $50,000 the Treasurer and/or the Chief Administrative Officer shall be notified and report of the incident shall be submitted to the appropriate Committee and Council at the earliest time. Co-Operative 07.01 Purchasing The Manager may enter into arrangements with municipalities, local boards and other public bodies or public authorities on a co-operative or joint venture basis where there are economic advantages and where the best interests of the City would be served in so doing; providing that under such arrangements the method of acquisition used is a competitive method similar to that described in this By-law; and the awarding and reporting of such contracts is generally in accordance with the requirements of this By-law. Disposal of Surplus Property 08.01 The Manager is authorized to dispose of surplus or obsolete goods and equipment by using it in other departments or, if no longer useful for municipal purposes, arranging for their disposal in a cost effective and efficient manner. 08.02 The Manager is authorized to dispose of real property in accordance with the policies adopted by Council from time to time. Prohibitions 09.01 Subject to the Municipal Conflict of Interest Act, no member of City Council, Standing Committee or Board, or officer of the City is or will become interested directly or indirectly as a contracting party or otherwise in or in the performance of the contractor or in the supplies, goods, or business to which it relates or in any portion of the profits thereof, or in any such supplies to be used therein or in any of the monies to be derived there from. Page 9 of 11 Approval:. Chief Administrative Officer Reference: Policy Title: CITY POLICY Date Originated: Date Revised: PURCHASING POLICY Policy Number: Classification: FIN Category: 020 Subject: 001 10 11 09.02 09.03 09.04 09.05 No employee or member of City Council, Standing Committee or Board shall bid on the sale of goods except those disposed of by public auction. The City shall make no personal purchase for any employee, member of City Council, Standing Committee or Board, unless specifically authorized by Council. No employee, or member of City Council, Standing Committee or Board., shall purchase or offer to purchase on behalf of the City except as may be provided for in this By-law. No requirement for goods or services shall be divided to avoid the requirements of this By-law and the total project or annual requirement shall be considered. Code of Purchasing Ethics 10.01 The code of purchasing ethics established by the National Institute of Governmental Purchasing Inc. and the Purchasing Management Association of Canada shall apply to all staff involved in the procurement process Exemptions 11.01 Items listed in Appendix "A" are excluded from the requirements of this By- law. Notwithstanding, department heads are expected to provide details to the Treasurer and the Chief administrative Officer of any contractual arrangements (under Appendix 'A') with third parties that exceed $25,000 annually or are for more than one year. These include, but are not limited to arrangements for insurance and brokerage, counselling, banking, audit, legal, survey and property appraisal. Page 10 of 11 Approval: Chief Administrative Officer Reference: CITY POLICY Date Originated: Date Revised: Policy Number: Classification: FIN Category: O20 Subject: 001 Policy Title: PURCHASING POLICY 12.0 Administrative Procedures 12.01 This By-law shall be read in conjunction with any written administrative procedures. Page 11 of 11 FIN 020 EXEMPTIONS APPENDIX A The following items are excluded from the requirements of this By-law in that the expenditures do not require a purchase requisition or a pumhase order. Notwithstanding, it is expected that the objectives of this by-law will be promoted in any expenditures for goods and services. 1. Petty Cash expenditures Training and Education a) Conference, Course, Convention and Seminar b) Magazines, Books, Periodicals, Subscription c) Membership Refundable Employee Expenses a) Advances b) Meal Allowances c) Travel 4. Advertising 5. Special Fees a) b) c) d) Counselling service Medical service Banking, brokerage or underwriting service Insurance and related costs (Liability, Property etc., Premiums, Payments and Adjusting Fees) Professional Fees a) b) c) d) e) Consultant fee related to litigation External auditor Legal services fees Ontario Land Surveyor Property Appraisal Utility Services a) Gas and heating oil b) Sewer and water c) Postage and related costs d) Hydro e) Telephone Tenders or quotations for goods or services to be provided by Utilities, Provincial or Federal Agencies, Crown Corporations, Municipalities, public agencies, when similar goods or services are not available from other sources.