HomeMy WebLinkAboutCST 16-12
cal, o0 Report to
Executive Committee
PICKERING Report Number: CST 16-12
Date: May 14, 2012
From: Gillis A. Paterson
Director, Corporate Services and Treasurer
Subject: Purchasing Policy - Revision
Recommendation:
1. That Report CST 16-12 of the Director, Corporate Services & Treasurer,
regarding revision to the Purchasing Policy be received, and,
2. That Council approve the revised wording to the Purchasing Policy, Section 17,
as presented in Attachment 1 to this report.
Executive Summary: Council approved the Purchasing Policy in Report CST 31-11
on October 11, 2011 by Resolution #166/11. The Policy has been in use for a six
month period and some minor housekeeping amendments have been identified which
are recommended for Council's consideration and approval.
Financial Implications: There are no financial implications associated with the
recommendations.
Discussion: Section 17 of the Purchasing Policy was originally intended to'address
real and potential conflicts of interest. Subsequent reviews of the wording reveal that
this Section appears to be overly restrictive in that it has the potential to be too far
reaching in what it prohibits. It is in the City's best interest to simplify the intent of this
Section while the Policy is still fairly new and avoid any confusion should a situation
arise. It should be noted that no issues related to this Section have arisen to date.
However, providing additional clarity in Section 17 - Conflict of Interest - as is contained
in Attachment 1 will be beneficial.
The general intent of having a conflict of interest declared with a vendor is to protect the
City and the employee declaring the conflict. Once a conflict is declared, steps such as
removing the employee from the decision making or from authorizing payments to the
vendor'are two examples of creating distance in the administrative process.
The current clause can be interpreted as being very prohibitive with the wording "...this
applies to relatives and former employees as well." It is simply too far reaching in its
potential restrictions pertaining to relatives and former employees and businesses they
may be directly or indirectly related to.
RPnnrt CST 16-12 May 14, 2012
206
Subject: Purchasing Policy - Revision Page 2
The wording pertaining to relatives and former employees has been removed and
replaced with revised wording that clarifies the role of employees to declare a conflict of
interest with respect to their involvement in a procurement process and for vendors to
declare any potential conflict of interest in all bids or tenders. The City can then
undertake whatever measures necessary to minimize or remove a conflict of interest.
Attachments:
1. Purchasing Policy - Section 17 - Amended
Prepare By: Approved/Endorsed By:
Vera A. Feld acher Gillis A. Paterson, CMA
CSCMP, CP O, CPPB, C.P.M, CMM III Director, Corporate Services & Treasurer
Manager, Supply & Services
Recommended for the consideration
of Pickering City ouncil
2, 2 o <Z
Tony Prevedel, P. Eng.
Chief Administrative Officer
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ATTACHMENT# TO REPORT#12
L J Amendment to Purchasing Policy
Section 17
Current Working - to be removed.
17 Conflict of Interest
17.01 Subject to the Municipal Conflict of Interest Act, no member of City Council,
Committee or Board, employee of the City is or will become interested directly
or indirectly as a contracting party or otherwise in the performance of the
contract or in the provision of goods or services or in any portion of the profits
thereof, or in any of the monies to be derived therefrom. This applies to
relatives and former employees as well.
17.02 A vendor will be required to declare any potential conflict of interest in writing
to the Manager.
17.03 The City reserves the right to disqualify from further consideration any
proposals which demonstrate a conflict of interest.
17.04 A conflict of interest arising during the term of a contract must be reported
immediately to the City and failure to advise may result in termination of the
contract.
Revised Wording - to replace current wording:
17 Conflict of Interest
17.01 All members of City Council, Committee or Board must comply with the
Municipal Conflict of Interest Act.
17.02 With respect to all City purchasing, City employees must declare and disclose
to the Manager any actual or potential direct or indirect conflicts of interest with
respect to their involvement in a procurement process, including all evaluation
processes, and, where necessary, not participate in a procurement process
where there is a conflict of interest.
17.03 Vendors will be required to declare any real or potential conflict of interest in all
instances involving the procurement of goods and services.
17.04 The City, through the Manager, reserves the right to disqualify the vendor from
further consideration in any instance involving the procurement of goods and
services which demonstrates a conflict of interest.
17.05 A conflict of interest arising during the term of a contract must be reported
immediately to the Manager. If the Manager and the vendor are unable to
rectify the conflict of interest to the Manager's satisfaction, the City may
terminate the contract. Failure to disclose a potential conflict of interest during
the term of a contract may result in termination of the contract by the City.
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