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HomeMy WebLinkAboutOctober 22, 2001 (Finance)FINANCE COMMITTEE Thomas J. Quinn Chief Administrative Officer OCTOBER 22, 2001 PICKERING AGENDA Finance Committee Meeting Monday, October 22, 2001 10:00 a.m. ADOPTION OF MINUTES Meeting of September 24, 2001 MATTERS FOR CONSIDERATION CORPORATE SERVICES REPORT CS 30-01 REQUEST FOR PROPOSAL PAGE 1-13 CORPORATE SERVICES REPORT CS 32-01 CLOSUR:E OF THE MILLENNIUM ACCOUNT 14-16 CORPORATE SERVICES REPORT CS 35-01 PURCHASING BY-LAW, POLICY AND PROCEDURES 17-84 CONFIDENTIAL ITEMS CORPORATE SERVICES REPORT CS ~_-01 SUNLIFE FINANCIAL SERVICES OF CANADA INC. 85-87 STAFF ITEMS FOR DISCUSSION OTHER BUSINESS ADJOURNMENT Finance Committee Meeting Monday, October 22, 2001 10:00 a.m. ADOPTION OF MINUTES Meeting of September 24, 2001 MATTERS FOR CONSIDERATION CORPORATE SERVICES REPORT CS 30-01 REQUEST FOR PROPOSAL PAGE 1-13 CORPORATE SERVICES REPORT CS 32-01 · CLOSLJR:E OF THE MILLENNIUM ACCOUNT 14-16 CORPORATE SERVICES REPORT CS 35-01 PURCHASING BY-LAW~ POLICY AND PROCEDURES 17-84 (III) CONFIDENTIAL ITEMS 1. CORPORATE SERVICES REPORT CS 22-01 SUNLIFE FINANCIAL SERVICES OF CANADA INC 85-87 IV.{~.~.~TAFF ITEMS FOR DISCUSSION (V) OTHER BUSINESS (VI} ADJOURNMENT 001 RECOMMENDATION OF THE FINANCE COMMITTEE DATE MOVED BY It is recommended that Report CS 30-01 of the Director, Corporate Services & Treasurer, concerning the Request tbr Proposal, be received tbr information. 002 PICKERING REPORT TO COUNCIL FROM: Gillis A. Paterson Director, Corporate Services & Treasurer DATE: September 20. 2001 REPORT NUMBER: CS 30-01 SUBJECT: Request for Proposal RECOMMENDATION: It is recommended that Report CS 30-01 of the Director, Corporate Services & Treasurer be received for information. ORIGIN: Director, Corporate Ser¢ices & Treasurer A U TH ORITY: The Municipal Act, R.S.O. 1990, as amended and Regulations Thereunder FINANCIAL IMPLICATIONS: Not applicable. EXECUTIVE SUMMARY: Not applicable. BACKGROUND: Over the course of the last month, Purchasing and Finance staff have held a number of meetings to develop a Purchasing By-law. This initiative was undertaken as it was time to review the current Purchasing Policy and to address concerns raised around Request for Proposal procedures. We are now at the stage where we are just completing some fine tuning. I have attached a copy of the draft by-law for your information and expect this by-law to be forwarded to the Finance Committee for final approval in October. In addition, I have included an excerpt from the draft Purchasing Procedures that covers detailed procedures pertaining to Request for Proposal. While staff' procedures are not normally submitted to a Committee or Council it was felt that, due to the nature of this item, it wa-s appropriate in this case. There are still a number of meetings to bc held which have been scheduled over the next couple of weeks. We are targeting that the Purchasing Procedures will be released around the same time. However, timing restrictions may precipitate that the Purchasing Procedures be released in November. Report to Council CS 30-01 Subject: Request tbr Proposal Date: September 2f), 2001 Page 003 AT FACHMENTS' 1. Draft Purchasing By-La~~ 2. Draft Purchasing Procedures Prepared App;'oxed Endorsed By: ~-~Uillis A. Paterson Di~'cctor. Corporate Services 8: Treasurer GAP:vxv Recommended lbr thc considc~'ation of Picketing City Council ,, ,., ,, 0 O 4 Pickering draft policies and procedures September 19. 2001 2.0 PURCHASING BY-LAW ATTACHMENT~ / TO REPORT#._f_~~, -:~> o/ THE CORPORATION OF THE CITY OF PICKERING BY-LAW NUMBER- ESTABLISHING POLICIES GOVERNING THE PURCItASE AND DISPOSAL OF GOODS AND SERVICES (Hereinafter called the Purchasing By-law) 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 Board has historically adopted the purchasing policies and procedures of the City and have relied on the staff of the City to provide certain services for their purchasing needs; AND WHEREAS the City of Pickering and the Town of Ajax have formed the Ajax Picketing Transit Authority as a separate entity as in a board or commission; AND WHEREAS this by-law anticipates tile continuation of the cooperative arrangements between the City and the Library Board; AND WHEREAS the Council of the Corporation has by resolution adopted on (date) authorized the enactment of this by-law and the repeal of resolution #35/89 item #15 and any other By-laws or resolutions fom~erly governing the subject matter of this by-law; NOW THEREFORE the Council of the Corporation enacts as follows: 4 Picketing draft policies and procedures September 19, 2001 005 1.00 PURCItASING POLIC'i' PURCHASING PRINCIPLES DR I:T The Manager, Supply & Services (hereinaf'ter referred to as tile Managerl shall: 1.01 Be responsible for' tine provision oFpm'ctlasing services ibc the acquisition and disposition of all goods and services required by thc City, tile library Board and the Ajax Picketing Transit Authority (hereinafter referred to collectively as tile Citx ~. 1.02 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. 1.03 Ensure the greatest value ibc the City by exercising professional purchasing practices, fiTee from influence and interference, and encourage where practical, standardization m~d open and competitive bidding. 1.04 Promote acceptance of bids based on total acquisition al'id lif'c cycle cost rather than the lowest bid received. 1.05 Provide for the appropriate level of delegated commitment authority to enable clients to meet service level expectations. 1.06 Assist in the facilitation, comparison and assessment of alternate service delivery options. 1.07 Encourage wherever possible, specifications that arc environmentally responsible and fi'iendly. 2.00 AUTHORITIES AND RESPONSIBILITIES 2.01 The Manager, who shall report to tile Director of Corporate Services and Treasurer, (hereinafter referred to as the Treasurer) is hereby gixen tile attthority and responsibility to operate a centralized purchasing program on behalf of tile City of Picketing in accordance with the requirements oi' this Bv-lax~ and to act on behalf of the City in entering into contracts wit}l third parties tbr the purchase and disposal of all goods and services. 2.02 The Manager, with the approval ot' the depai-tment 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 tip to an amount of $500 on the understanding that employees usc their own judgement to promote the objectives of this by-law in any competitive or direct purchase. 2.03 Goods and services with an estimatect total purchase price greater than $500 and not exceeding $5,000, shall be obtained by the Manager by whatever method of purchase deemed appropriate. Informal written quotations should be sotight whenever possible for Picketing draft policies and procedures September 19. 2.04 2.05 2.06 2.07 purchases between $5,000 and $25,000. 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 endeavouring to obtain a minimum of three ~vritten quotations. 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. Goods and services xvith 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 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. Where the compliant tender meeting specifications and offering the best value to the City is acceptable, and subject to consultation with the appropriate department head, the Manager will recommend or concur in a recommendation to the Chief Adnfinistrative Of ricer who shall approve the award. 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 wilt result in the total contract price exceeding $100,000 the report recommending award shall so indicate. Where the recommended tender is not from the lowest acceptable bidder, the award must be approved by Council. Notwithstanding the provisions of Section 2.00, 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 ora 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 - $50,O0O. 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 Picketing draft policies and procedures and other individuals having appropriate expertise. The selection committee shall determine a recommendation for axvard. A,ioint report setting out the recommendation shall be submitted by tho Manager and department head to thc appropriate Standing Committee and Council who shall approve tile ax~ ard. 2.08 2.09 In the case of purchase an-angements by Request ibr Proposal (RFP} that exceed one year or allow tbr 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 tile report recommending award shall so indicate. Tile Manager shall ensure that all recommendations dealing with the a~vard of tenders or proposals contain the appropriate funding statement from tile Treasurer. Notv:ithstanding 2.01, subject to statutory requirements and where all the requirclnents of this By-law have been met, tile appropriate officials are authorized to execute formal contracts. 2.10 2.11 2.12 Anthorities and responsibilities shall be applied and administered having regard to the provisions of the Corporate Financial Controls Bv-laxv. Authorization limits shall adjust am~ually in accordance with tile Consumer Price Index as published bv Statistics Canada ami tile Manager shall advise accordingly. Where an official of thc City is authorized to act pursuant to this By-law such act may be done by such official's attthorizcd designate. 3.00 NEGOTIATION The Manager, is atttborized to enter into ne?tiations without lbrmal competitive bids, under the following circumstances: 3.01 When an event which could not be foreseen occurs, that is a threat to public health, se~wice, welfare or public property, and requires the immediate delivery of supplies or performance of service. 3.02 When competition is precluded because of tile existence cfa sole source, patent rights, copyrights, secret processes, control of basic raw material of similar circumstances. 3.03 When bids have been solicited and no responsive bid has been received, or the lowest bid rcceived exceeds the estimated cost, or the lowest bids received are identical. 3.04 When all bids fail to comply with the specifications or conditions and it is impractical to recall. 3.05 When the extension or reinstatement of an existing contract would prove most cost- effective or beneficial. The extension shall not exceed one year. 0O8 3.06 Picketing draft policies and procedures k Fr ''a When a fluctuating market prevents the Manager from obtaining price protection or owing to market conditions, required goods or services are in short supply. 4.00 EMERGENCY PURCHASE 4.01 In a situation where the immediate purchase of goods or services is essential to prevent serious delays, further damage, threat to life, restore mi~fimum 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 earliest time. In the event that the purchase amount exceeds $50,000 a report of the incident shall be submitted to the appropriate Committee and Council at the earliest time. 5.00 CO-OPERATIVE PURCHASING 5.01 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-la,v; and the awarding and reporting of such contracts is generally in accordance with the requirements of this By- law. 6.0 DISPOSAL OF SURPLUS PROPERTY 6.01 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. The Manager is authorized to dispose of real property in accordance ~vith the policies adopted by Council from time to time. 7.00 PROHIBITIONS 7.01 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. 7.02 No employee or member of City Council, Standing Cormnittee or Board shall bid on the sale of goods except those disposed of by public auction. 7.03 7.04 7.{)5 8.0 8.01 9.0 9.01 10.0 10.01 Picketing draft policies and procedures Septemb~2~ 00 The City shall make no personal purchase for ai]v employee, member of City Council, Standing Cominittee or Board, unless specifically authorized by Council. No employee, or member ot7 Citx, Council. Standing Committee or Board, shall purchase or offer to purchase on behalt-ofthe City except as may be provided for in this By-law. No requirement for goods or services shall bo divided to avoid thc requirements of this By-law and the total project or annual requirement shall be considered. CODE OF PURCIIASING ETIIICS The code of purchasing ethics established by the National Institute of Govermnental Purchasing Inc. and the Purchasing Management Association of Canada shall apply to all staff involved in the procurement process EXEMPTIONS Items listed in Appendix %\" arc excluded from the requirements of' this By-law. Notwithstanding, depm-tment heads are expected to provide details to the Treasurer and the Chief administrative O['licer of any contractual arrangements ( under Appendix 'A') with third parties that exceed S25,000 annually or are for more than one year. These include, but are not limited to an'angcmems for insurance and brokerage, counselling, banking, audit, legal, sui'vev and property appraisal. ADMINISTRATIVE PROCEI)URES This By-law shall be read in co,\junction with any written administrative policies and procedures. The Manager shall prepare and maintain administrative procedures to implement this By- Law. The Treasurer and Chief Administrative Officer shall approve such procedures. 0 ] 0 Pickering draft policies and procedures September APPENDIX 'A' -EXEMPTIONS The following items are excluded from the requirements of this By-law and expenditures will bc in accordance with established procedures. 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 a) b) c) d) e) Utility Services Gas and heating oil Sewer and water Postage and related costs Hydro 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. 10 11.0 11.1 11.2 11.3 Picketing draft policies and procedm-es September 19, 2001 REQUEST FOR PROPOSALS Overview The Request for Proposals (RFP) method of purchase is a competitive method of purchase that may or may not include Vendor pre-qualification. The process generally lbllows the activities included ir~ a typical procurement cycle Isec 1.0 General). Depending on the degree of complexity or dollar value associated witln tile proposal it will be necessary to carry out maw,' of these activities albeit to a varying extent. Some or all of the specifications and contract telTnS and conditions may not be detemfined prior to proposals being solicited. Depending upon tile terms of the proposal call, the process may involve negotiations subsequent to the submission of proposals on any or all of the specifications, contract terms and price. Proponents may or may not be invited or permitted to submit a final and best o fl'ct. Thc usc of proposals alloxvs tbr greater flexibility in selecting a successful bidder. howc~er, all proponents arc to be given the sa;ne inl-omlation, and must be treated equally and t'airlv. Tile RFP document still l-ornqs the basis for tile contract. The contract may include jnf'ormation that ,,','as i1ot originally specified in thc RFP document. With regard to professional services, it is the intention of the City to employ consultants generally on the basis of their perccixed con~petcncc and expertise relative to the project m hand, the cost of their services, their ability to complete the work within the required time, and their past record in pertbrming si~,nilar x;'ork. A Request £or Information or Request ibr Expression of Interest n~av be issued in advance of a proposal to assist in tile development of at more definitive set of tern-is and conditions, scope of work and the selection oF qualified Vendors. Alte~q~ativelv, it may be incorporated into the proposal document where pr'e-qualification el-\ endors is required. Prohibitions, Restrictions and Compliance No purchase of goods and selwices having a price in excess of 5500 shall be authorized unless it is from an agreement established by thc ~\lanager and is in compliance ~vith the Purchasing By-law and purchasiug procedures. Goods or services that are obtained without following the Purchasing By-lay,' and purchasing procedures will not be accepted and any invoices received will not be processed for payment. Any employee ~vho knowingly contravenes any of the above is committing an act of misconduct and is liable tbr tile purchase as well as disciplinary action. Procedures Client responsibilities: 39 Pickering draft policies and procedures September 19, 2001 1. Complete Online Purchasing Requisition. Oi~4~r 2. Submit any attachments by email or internal mail quoting the requisition number. Supply & Services responsibilities (and Client where indicated): 1. Review requisition and/or meet with Client for an initial meeting to ensure all required information is available and the Request for Proposal is the most appropriate Purchasing Method. 2. If not already submitted, request the Client to prepare (in point form) and submit a Scope of Work/Service and a requisition if not already submitted. 3. Assign docmnent number. 4. Prepare draft proposal document (may be prepared by the Client if applicable). 5. Review draft document with Client. Discuss specific areas such methodology, timelines, evaluation process and criteria. 6. In conjunction with the Client, complete criteria and establish a weight for each criteria. 7. Establish an evaluation conunittee with a minimum composition of two representativcs from the Client department and one from Supply & Services. 8. Advertise proposal (only if required) including a general description of the proposal; where and how the document cm~ be obtained, the closing date, time and location, and the cost for the documents (if any). 9. Circulate bid documents to prospective bidders. 10. Respond to enquiries during bidding period. 11. Receive proposals. Note: Not a public opening. t2. Meet with Client to review proposals received. Each member of the evaluation committee is given a copy of the proposal response and an evaluation criteria. Members are requested to evaluate each response against the criteria and upon completion forward to Supply & Services representative. 13. Receive the completed evaluation from each committee member and transfers all figures to a summary to show the complete evaluation from all members for each bid response. Total all committee member responses for each vendor and establish an average score. 40 14. 15. 16. 17. 18. dra£t policies and procedures September~?,~01~,,,~__ (-} '~ ~ Picketing ,q,er Review the results with the evaluation committee. The committee has the option of the following: ^) Select proponent who has the highest average score. Supply & Services then sets up a meeting with the selected proponent and the committee members. This meeting is called to confirm understanding of the Scope o[' Work. Services as set out in the proposal and to ~nali×e timelines. OR B) if scoring is close, the committee could decide to interview all or the three proponents with the highest scores. Supply & Services sets up an interview session with each proponent. The committee prepares interview questions. Proponents may or may not get a copy of' thc questions prior to intet'viexv. A matrix is then created to evaluate the proponent's responses in the interview session m~d to establish thc successful proposal. A~vard proposal call as Iblloxvs: · For proposals over $5()()() ) selection cormnittee to prepare report with recommendation to Council For proposals between S25.())() and $50,000 Manager/Department Head submit (joint report) with recommendation to Chief Administrative Officer · For proposals under $25,()()(} suNnit recommendations to the Manager Receive approvals, notify successful Vendor. issue Purchase Order and/or contract agreement. Send a letter of regret to unsuccessful proponents optional). Resolve any contract administration or pricing issues with :\ccounting, Client, and Vendor. 41 RECOMMENDATION OF THE FINANCE COMMITTEE DATE MOVED BY It is recommended that Report CS 32-01 of the Director, Corporate Services & Treasurer, concerning the Closure of the Millennium Account, be received for information and as there are no outstanding cash balances or bills due in the Millennium Account the matter be considered closed. PIC_KERIN REPORT TO COUNCIL FROM: Gillis A. Paterson Director. Corporate Services & Treasurer I).-\TE: September 2(). 2001 REPORT NUMBER: ('So.-O1 ' T SUBJEC : Closure of the Millennium Account RE(7OMMENDATION: It is recommended that Report CS 32-01 of the Director'. ('orporatc Services & Treasurer be received t'or intbrmation and as there are no outstanding cash balances or bills duc iH ttlC Millcnniuna ,,\ccount tiao matter be considered closed. ORIGIN' Director, Coq~orate Services & Treasurer AL~THOR1T¥' Audit Committee Meeting OI'JLII~C 1S, 2001 FINANCIAL IMPLICATIONS: Not applicable. EXECLiTIVE SUMMARY: Not applicable. BACKGROUND: At its meeting of June 1S, 2()()1 thc Committee suggested that tlqe Chair of the Millennium Committee regarding the status of certain assets. ,At the direction of tho Chair oF the Audit Committee it was suggested 1 write thc City Solicitor xx hich was done. In subsequent discussions with the Solicitor it was determined alad agreed upon that tho aboxe recommended course of action would be put before the Comnaittee. Report to Council CS 32-01 Subject: Closure of the Millennium Account Date: September 20.2001 Page 2 ATTACHMENTS: Not applicable. Prepared / Approved / Endorsed By: Gillis A. Paterson Director, Corporate Services 8,: Treasurer Copy: T.J. Quinn, Chief Administrative Officer J. Reble, Solicitor GAP:vw Recommended for the consideration of Pickering City Council ~_.~--j ,<;.. -~ ,~ ~.,~ C...gr -- , , . . Tl~omas J. Qume, Chle~'/Adm~mst~ RECOMMENDATION OF THE FINANCE COMMITTEE DATE MOVED BY SECONDED BY ~5 1. It is recommended that Report CS o~-01 of the Director, Corporate Services & Treasurer be adopted by Council; and 2~ That the purchasing Policies and Procedures adopted by Council in March 1989 under ~ 9 Resolution # o5/8 and any subsequent amendments, policies or procedures adopted by Council in this regard be repealed: and 3. The attached Purchasing By-law (Attachment #1) be read three times and approved; and 4. That a copy of this Report and the attached By-law, Policy and Procedures be forwarded to the Picketing Public Libra~ Board for their information and, if necessary, approval; and 5. That the appropriate authorities of the City of Picketing be given authority to give effect thereto. 018 PICKERING REPORT TO COUNCIL FROM: Gillis A. Paterson Director, Corporate Sendces & Treasurer DATE: October 16, 2001 REPORT~MBER: CS 35-01 SUBJECT: Purchasing By-Law, Policy and Procedures RECOMMENDATION: 1. It is recommended that Report CS 35-01 of the Director, Corporate Services & Treasurer bc adopted by Council; and that: the Purchasing Policies and Procedures adopted by Council in March 1989 under Resolution # 35/89 and any subsequent amendments, policies or procedures adopted by Council in this regard be repealed; 3. the attached Purchasing By-Law (Attachment #1) be read three times and approved; 4. a copy of this Report and the attached By-Law, Policy and Procedures be forwarded to the Pickering Public Library Board for their information and, if necessary, approval; and, 5. the appropriate authorities of the City of Pickering be given authority to give effect thereto. ORIGIN: Director, Corporate Services & Treasurer AUTHORITY: Municipal Act, R.S.O. 1990, as amended FINANCIAL IMPLICATIONS: Approval of the above Recommendations will provide Council and staff with consolidated, updated and expanded policies and procedures regarding the acquisition of goods and services. It also provides the authority for the Chief Administrative Officer to approve revisions and updates to these procedures to improve efficiencies. This should result in cost effective improvements in the provision of good and services. The adoption of this report and the attached By-Laxvs will provide elected and appointed officials with the first consolidated rules governing the acquisition of goods and services. This should result in much improved purchasing, financial and budgetary control across the Corporation. EXECUTIVE SUMMARY: This By-Law is an amalgam of former Pickering policies, those of various Regional Governments and Cities across Ontario and that recently approved by Durham Region Council. As the By-Law, Policy and Procedures go "hand in hand" it is felt they should be presented to Council at the same time. Report to Council CS 35-01 Subject: Purchasing Bv-Laxv Policy and Proocedures Date: October 10, 2001 Page BACKGROUND: In March 1989, Council approxed a document entitled }atirciqasing Policies and Procedures. In May, 1997 Council also approved Report 1497 from the Clerk regarding Review of Tenders and Contracts. In addition, a document entitled "Procurement Policies aiad Procedures" dated 1996 as an update to the 1989 Policy was developed and utililized as operational guidelines. 'File current Treasurer commenced employment xx ith fine then Toxx n in late 1997 and around mid 1998 thc first draft of this Bv-Laxv was provided to staff and Councillors tbr comment. Due to tilt: colour oi' its cover it became knoxvn as tiao "Redbook". Since that time oxtonsixe meetings have been ladd with senior management, the Audit Committee, the external Auditors and the Chief Administrative Officer to reviexx, comment and improve the document. Extensix'c reviews of internal process and procedures also had to be undertaken. Staff limitations in tine tt~en Finance Department, a largc backlo~z of internal problems and matters that had to bc addressed, tt~c implementation of a complete new fir~ancial system softv,'arc {purchased prior to thc tniring of the nov, Treasurer) prohibited timely progress on tlncse matters. Moreover, Provincial "Doxxnloading". thc implementation of Cun-ent Value Assessment (C.V.A.) and hundreds of pieces of Proxincial Legislation and Regulations regarding property taxation dictated that staffs attention be directed to these matters. Furthem~ore a next' tax system and tax billing softxxarc tnad to be implen~onted in I998 and 1999, and changes are still being developed and implemented. During finis tinge sex oral nnore drafts of the "Rcdbook" were produced. At various briefings Councillors xxere advised of tint: status and comment and input was sought. In 1999 it became evident that the current PaXTOII SYstem was failing and had to be replaced. In late 1999 Council approved the replacement of thc Payroll and tinac recording (eTime) systems and their integration with the HR System. These exercises demanded a great deal of thc Finance staffing time diverting us from the "Redbook". While tI~e new Pawoll August. 2()0(), work on the remaining phases Around mid 2000, as part of tile ('et-potato roorgani×ation undertaken bx thc C.:x,.O., the respolnsibility tbr the Suppl5 and Serx ices Division xxas trans/k'rI'ed to the Treasurer. This paved the wa-,,'/bt at more comprehensive and consolidated review ot' purchasing and its relationships to the accounting and accounts payable functions. For tile first time all thc pieces were in the right place to enable completion of tile exercise. In late 2000 vet another rcviexv of existing policies and procedures together with tiao lastest draft of the "Redbook" was undertaken by the Treasurer. In early 2001 another draft was produced, reviewcd over tile sprint and sunanaer, subjected to review and change and finally put in final tbnn. \Vhile the Interdepartmental Procedures are still subject to review as to style and form it is not anticipated the content xx ~11 change. P.__urchasin~ Policies and Procedures The 1989 document, referred to above, approved by Council is proposed to be repealed and replaced with a Purchasing By-Lay,'. This Bx-I.axx will consolidate prcxious Council approvals in one document that, it is hoped, will clearly and concisely capture Council's directions in this regard. The first step is tbr Council to clearly state tiao rules Sox erning tiao acquisition of goods and services to allow staff to establish policies, processes and proccdt~res thereunder. This allows staff' to conduct the operations of tile Corporanon and to pa> Ibr same. :ts. in the end, ttnese matters must be subject to the financial rules and safeguards established bx tine Treasurer. Therefore. tile intent of' the old Purchasing Policies and Procedures will noxx, will not bc incorporated into the By-Law. under wtnich staffmay establish practices and procedures subject to change from time to time bx fine Treasurer. This Bv-Laxx is the result of extensive rexiexvs of thc old Policy and has been greatly updated and expanded to include financial or accounting needs and considerations important to any Treasurer and Corporation. The 1989 Purchasing Policy & Procedures approved by Council and the Purchasing Guideline 1994 draft versions set ottt spending limits as well as administrative procedures. Both the spending limits and procedures required adjustment to operate et'tgcientlv and in keeping with proper purchasing activity of the times. For improved efficiency, the administratixe procedures tnax'e been extracted. ~eatly expanded and developed into thc City's Corporate Ibrmat. to be utilized in coxxjunction xvittn the By-Lay,'. 02 0 Report to Council CS 35-01 Subject: Purchasing By-Law Policy and Proocedures Date: October 16. 2001 Page 3 The notable changes within the expenditure limits since the 1989 policy are: · 1989 Policy - up to $5,000 - obtain up to 3 prices; S5,000 to $20,000 - quotation; $20,000 and up - tender · 1994 draft versions/subsequent approvals - up to S25,000 - obtain up to 3 prices; $25,000 to $75,000 - quotation; $75,000 and up -tender · Revised Purchasing By-Law - up to $500 - direct purchase; S500 to $25,000 obtain up to three prices; S25,000 to $100,000 quotation; $100,00(5 and up - tender The expenditure approval limits as well as the RFP (Request for Proposal) process has become more clearly defined in the revised Purchasing By-Law. At the Audit Committee meeting of September 25, 2001, Report CS 30-01 regarding Request for Proposal was presented and discussed by the Committee. Attached to this Report was a Draft of the Purchasing By-Law and an extract from the staff Procedures on Request for Proposals. This report, together with the comments of the Committee, was referred to the Finance Committee. One point raised was clarification of Appendix "A"-Exemptions. This Appendix lists those expenditures deemed not necessary to be covered by a Purchase Order, eg utilities, prol%ssional services, Councillor/employee expense reimbursement, training and education etc., as these types of expenditures are norn~ally covered by other means dictated by the provider such as registration forms, subscription order forms, agreement by contract, and utility services provided by another government or monopoly. It is virtually unchanged from that approved by Council in 1989. It was also requested that a comparison of limits with those of other municipalities be included. This information can be found in Attachment #3. Considering all of the foregoing which are important to any large corporation, it is importm~t that Council also allow, through the adoption of this report, the Treasurer the authority to make any interpretations of the By-Law, make rulings that will allow the conduct of business to proceed and to take any actions necessary to this effect. It is our intention to provide all involved in the purchase of goods and services with access on our internal computer network to this Report, the Purchasing By-Law, Policy and Procedures. Elements of the By-La~v may also be included on our Website for external viewers. The forthcoming Financial Control By-Law, Policy and Procedures will be treated in a similar manner. Information sessions will also be held to introduce and explain, to the appropriate staff, the policy and procedures. Report to Council CS 35-01 Subject: Purchasing Bv-La~v Policy and Proocedures Date: October 16, 2001 Page 4 AT~i'ACHMENTS: 1. Bv-Lax~ No. 5900/01 2. Purchasing Procedures 3. C'omparisol~ of Dollar Limits Preparett By: Vera Felge~acher ,leffrey Manager, Supply 8: Services App~-oved E~dorsed By: Gillis A. Paterson Director, Corporate Services & Treasurer Prepared By: l~ristine Senior Manager, Accounting Services GAP:w,' Attachments Copy: Chief Administrative Officer Director, Operations ah Emergency Ser~ ices Director, Planning & Development City Solicitor Manager, Suppl.v & Services Manager, Accounting Services Recommended for the consideration of Picketing City Council Th~ative OI'fi&er , ATTACHMENT #_J___TO REPORT THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. 5900/01 Being a By-Law for establishing policies governing the purchase and disposal of goods and services. (Hereinafter called the Purchasing By-Law) WHEREAS the Council of the Corporation of the City of Picketing (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 [br 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 Board has historically adopted the purchasing policies and procedures of the City; AND WHEREAS this By-Law anticipates the continuation o£ the cooperative arrm~gements between the City and the Library Board; 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- Laxvs 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: CITY POLICY 0 Approval: Chief Administrative Officer -~ference: Date Originated' Date Revised: i Policy Number: !Classification: FIN i Category: 020 Subject: 001/001 -~olicy 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: 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 to effectively and efficiently carry out their responsibilities and acquire goods on time. O24 CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001/001 Policy Title: PURCHASING POLICY GENERAL: 01 Definitions: 01.01 01.02 01.03 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 01.04 01.05 01.06 01.07 01.08 Centralized Purchasinq - 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 Consultinq 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 CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised' Policy Number: Classification: Category: r J Subject: FIN 020 001/001 Policy Title: PURCHASING POLICY 01.09 01.10 01.11 01.12 01.13 01.14 01.15 01.16 01.17 Council - the Council of the Corporation of the City of Pickering D_D_g_partment 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 Emer eq_E_E_C_~ - 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 _ManaclE[ - 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 RecLg_isition or Req~.isition - 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 CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001/001 Policy Title: PURCHASING POLICY O2 01.18 Standing. Committee - a committee appointed by Council 01.19 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 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 Chief Administrative Officer (b) Provide final interpretations and rulings in regards to the understanding and implementation of this policy (c) 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 CITY POLICY Date Originated' I Classification: FIN -~-pproval: tChief Administrative Officer Date Revised' Category: 020 i I Subject: 001/001 Policy Title: PURCHASING POLICY' (b) Present such administrative procedures first to the Director, Corporate Services and then to the Chief Administrative Officer for their approval. O3 Purchasin~les 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 Board (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 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. 03.04 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 Assist in the facilitation, comparison and assessment of alternate service delivery options. 03.07 Encourage wherever applicable, specifications that are environmentally responsible and friendly. 028 CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised: Policy Number: Classification: Category: FIN 020 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 Pickering in accordance with the requirements of 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. 04.02 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. 04.03 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. 04.04 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. 04.05 Goods and services with an estimated total purchase price greater than $25,000 and not exceeding $100,000, shall be O4 Subject: 001/001 Policy Title: PURCHASING POLICY CITY POLICY Approval: ~ Originated: ~umber: Chief Administrative Officer ~c~ FIN Reference: IDate Revised' Category: 020 i Subject: 001/001 Policy Title: PURCHASING POLICY 04.06 04.07 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. 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 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. Where the compliant tender meeting specifications and offering the best value to the City is acceptable, and subject to consultation with the appropriate department head, the Manager will recommend or concur in a recommendation to the Chief Administrative Officer who shall approve the award. 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. Where the recommended tender, bid or quote is not from the lowest acceptable bidder, or when it exceeds by a sum deemed material by the Treasurer the amount provided for 030 CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001/001 Policy Title: PURCHASING POLICY 04.08 an approved by Council in the annual Current or Capital Budget for the purpose specified, the award must be approved by Council. 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 submitted by the Manager and department head 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. CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated' Date Revised: ~ Number: i Classification: FIN Category: 020 S u bject: O01/001 Policy Title: PURCHASING POLICY O5 04.09 The Manager shall ensure that all recommendations dealing with the award of tenders or proposals contain the appropriate funding statement from the Treasurer. 04.10 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. 04.11 Authorities and responsibilities shall be applied and administered having regard to the provisions of the Corporate Financial Controls By-law and approved Signing Authorities. 04.12 Authorization limits shall adjust annually in accordance with the Consumer Price Index as published by Statistics Canada and the Manager shall advise accordingly. 04.13 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. N eclotiation 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. CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001/001 Policy Title: PURCHASING POLICY O6 O7 05.03 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. 05.04 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. Emerqency 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 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 Purchasinq 07.01 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 Approval: Chief Administrative Officer Reference' CITY POLICY 033 YDate Originated: ! Pol~o~_~Number: Classification: FIN Date Revised: Category: 020 Subject: 001/001 -~olicy Title: PURCHASING POLICY O8 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. Di__~osal of Surplus Prop_~ 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. 09 Prohibitions 09.01 09.02 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. 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. 034 CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001/001 Policy Title: PURCHASING POLICY 10 11.0 09.03 The City shall make no personal purchase for any employee, member of City Council, Standing Committee or Board, unless specifically authorized by Council. 09.04 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. 09.05 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 Purchasinq 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. 12.0 Administrative Procedures 035 Cit~t "4 ~ CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated' Date Revised' Policy Number: ~Classification: FIN Category: 020 Subject: 001/001 Policy Title: PURCHASING POLICY 12.01 This By-law shall be read in conjunction with any written administrative procedures. 036 CITY POLICY Approval: Chief Administrative Officer Reference: Date Originated: Date Revised: Policy Number: Classification: FIN Category: 020 Subject: 001/001 Policy Title: PURCHASING POLICY APPENDIX 'A' -EXEMPTIONS The following items are excluded from the requirements of this By-law in that the expenditures do not require a purchase requisition or a purchase 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 ~itq o~ ~ Approval: Chief Administrative Officer ~Reference: Policy Title: CITY POLICY Date Originated: Date Revised: PURCHASING POLICY Policy__Number: Classification: Category: 'Subject: FIN 020 001/001 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. O38 ATTACH~£NT# ~ _TO P~PO~T#~ ~'- o! Interdepartmental Procedure Procedure Title: 01 General Procedure Number: FIN 020-001 Revised: Approval Date: ~. ~ ?z. ~---/ 01.01 Procurement Cycle The following represents some of the more typical procurement activities: 01.02 · · · · · · · Initial client meeting (if required) Selection of purchasing method e.g. quotation, proposal or tender or direct purchase Preparation of technical specifications, drawings and evaluation criteria Preparation and review bid document package Publishing the document (if required) Issuing the bid document Bid document submission Bid receipt and analysis Preparation of the procurement award Approvals Preparation and execution of documents Contract administration Prohibitions, Restrictions and Compliance No purchase of goods and services having a price in excess of $500 shall be authorized unless it is from an agreement established by the Manager of Supply & Services and is in compliance with the Purchasing By-law and these procedures. Goods or services that are obtained without following the City's Purchasing By-law and procedures are not acceptable. Any such invoices will not be processed for payment without the authorization of the Department Head. Page 1 of 45 L~itq o~ ~ Interdepartmental Procedure i Procedure Number: Procedure Title: ' FIN 020-001 Revised: Approved by: Approval Date: O2 O3 01.03 Any employee who knowingly contravenes any of the above is committing an act of misconduct and is liable for the purchase as well as disciplinary action. DiscLosure of Bud.qet DiscLosure of specific budget information in relation to planned expenditures is only permitted at the discretion of the Manager, Supply & Services. 01,04 Questions Should you have any questions in regards to these procedures or guidelines please contact the Manager, Supply & Services. Any changes or substantive interpretations will be reflected in the form of an amendment to these policies and procedures. Purchasing By-Law Please refer to Purchasing By-Law for Council approved Policy and dollar limits. Definitions The words and phrases listed hereunder when used in this by-law shall have the following meanings ascribed to them. 03.01 Acquisition - the process of obtaining goods and services 03.02 Bidder - the person, firm or corporation submitting an offer to the City 03.03 Blanket Order - an agreement between the City and a supplier to facilitate the reordering of repetitive use materials and services for a specified term Page 2 of 45 O40 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 03.04 03.05 03.06 03.07 03.08 03.09 03.10 03.11 03.12 Board - a group of persons who manage or control an aspect of business related to the City Centralized Purchasinq 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 Consultin,q 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 Purchasinq - the participation of two or more public agencies in a call for tenders Council - the Council of the Corporation of the City of Pickering Desi.qnated Official - the Manager of Supply & Services, an authorized delegate or such official as may be appointed from time to time by the Treasurer to act on behalf of the City to enter into contracts with third parties in accordance with the requirements of this By-law in the absence of the Manager of Supply & Services. 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 Page 3 of 45 041_ Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 03.13 03.14 03.15 03.16 03.17 03.18 03.19 03.20 03.21 03.22 Emer~ - 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 Inventon/ Control the management of materials required by departments to ensure that they are available when required while at the same time minimizing investment ManacL~ - the Manager of Supply & Services Personal Purchase goods or services requested by an elected official, an appointed official or by any employee of the City, the requirement for which is not for City purposes but is for the benefit and use of the person requesting the purchase Publicly_Advertised advertising in any publication of general circulation including the Internet Proposal an offer from a supplier in response to a request for proposal, which may be subject to further negotiation Purchase Order - a written or electronic request to purchase goods or services; or a written acceptance of an offer 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 Page 4 of 45 042 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 03.23 03.24 03.25 03.26 03.27 04 Forms 04.01 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 Systems Contract - an agreement between the City and a supplier to facilitate the reordering of repetitive use material and usually involves the supplier carrying the inventory Tender - a written offer in a specified form received from a bidder in response to an invitation to a public call for tenders Overview The following forms have been developed to support the various processes outlined in these policies and procedures: Forms Addendum Advertisement Bidders Application form Contractor Evaluation Evaluation Summary Materials Requisition Purchase order Receiving report Page 5 of 45 O43 Interdepartmental Procedure Procedure Title: ' Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: O5 Record of Tenders - opened and checked Regret letter Report to Council Requisition - Online Requisition - Manual 04.02 Prohibitions~ Restrictions and Compliance No changes are permitted to the above forms and agreements without the consent of the Manager of Supply & Services. Req.uisitionincj. Goods and Services 05.01 Overview There are two types of requisitions, an online requisition and a manual requisition. An approved online requisition shall be provided to Supply & Services to acquire all goods and services with the following exceptions: · Purchases up to an amount of $500 (Section 04.02 of Purchasing Policy). Items exempted as outlined in Section 11.0 of the Purchasing Policy and any other purchases identified from time to time by Supply & Services and Accounting. Purchases acquired through the use of delegated Low Value procurement tools e.g. purchasing cards or credit cards and other methods as prescribed by the Manager of Supply & Services. Purchases of stationery supplies under a systems contract from the City's supplier of record that can be requisitioned/ordered through the Internet, by electronic order form, by telephone or by fax. This Page 6 of 45 044 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 05.02 contract utilizes the vendors' inventory, catalogues, delivery facilities and the vendors' order forms. The City does not carry any of the items in inventory. A department may obtain goods directly from the vendor in accordance with purchasing procedures. The Signing Authority must assign the Account Number charge and sign the form to approve the transaction prior to releasing the order. Other systems contracts initiated and maintained by Supply & Services to facilitate the acquisition of the various goods required by the City. To acquire goods from the inventory. Goods carried in the Central Stores include maintenance, lighting, hardware, safety and first-aid supplies. A Materials Requisition shall be used for these purposes. Online Requisition Client responsibilities: Complete an online requisition form including the following information: · Account number(s) · Authorized project code for capital expenditures (if applicable) · Approved signature · Description of goods and/or services · Any special instructions · Budget estimate if over $500 · Date required Submit online requisition to Supply & Services together with any additional information e.g. detailed specifications, any relevant criteria for consideration during evaluation and selection of goods or services. Page 7 of 45 045 Interdepartmental Procedure Procedure Title: Approved by: Procedure Number: FIN 020-001 Revised' Approval Date: 05.03 Supply & Services responsibilities: 1. Review requisition for completeness. 2. Determine method of purchase. Acquire goods and services in accordance with the requirements of the Purchasing By-law and purchasing procedures. Materials Reqp_isition The Central Stores area maintains an inventory of items that can be obtained through the use of a Materials Requisition. A Materials Requisition shall be used to acquire goods for and from Central Stores for work to vehicles and equipment, undertaken by City staff. A Work Order must accompany the Material Requisition. Goods purchased shall be recorded on the Work Order to maintain a complete service record. Where possible, the manufacturer's number and specifications should be provided on the Material Requisition to facilitate the purchase of the appropriate goods. If goods are not available from the inventory, a purchase order shall be issued to acquire such shop sundries. Client responsibilities' Complete material requisition including: · Department · Account number · Quantity · Stock number · Description of goods · Date · Approved signature Page 8 of 45 046 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: O6 Supply & Services (Stores) responsibilities: 1. Review requisition for completeness. 2. Release goods from inventory. 3. Process and distribute paperwork as required. Purchase Orders 06.01 Overview Purchase Orders are required for the purchase of all goods and services except for purchases up to an amount of $500 (Section 04.02) of the Purchasing Policy; items exempted as outlined in Section 11.0 of the Purchasing Policy; acquired under Low Value purchase arrangements approved by the Manager, (e.g. purchasing cards or credit cards), or acquired through other forms of contract or agreements, or any other purchases identified from time to time by Supply & Services and Accounting. There are basically three types of purchase orders. A standard purchase order, a limited purchase order and a blanket purchase order. A Standard Purchase Order is used to acquire goods and services. A Limited Purchase Order that is used to acquire items carried in inventory; items required to repair and/or service a vehicle and equipment; and items considered shop sundries. A Blanket Purchase Order, which is similar to a Standard Purchase Order, but represents an agreement between the City and a vendor under which the vendor will provide goods to the City during an agreed period of time with specific instructions and/or limitations. Supply & Services may initiate and maintain Blanket Purchase Order Page 9 of 45 04t Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-00'1 Revised: Approved by: Approval Date: 06.02 arrangements to facilitate the acquisition of the various goods and services required by the City. Goods and services may then be obtained directly from the vendor by the requisitioner in accordance with purchasing procedures. Blanket Purchase Order arrangements issued as a result of a competitive process may be multi-year (subject to the terms and conditions of the bid request). Any Blanket Purchase Order issued to a vendor without competition shall not exceed a time period of one year. At the expiry of such Blanket Purchase Order, the Manager will re-evaluate the arrangement in accordance with Section 03.00 Purchasing Principles of the Purchasing By-law. A new Blanket Purchase Order is to be issued for subsequent requirements. Procedures Purchase order r~ration and circulation Supply & Services responsibilities: Complete standard purchase order from online requisition OR in the case of limited purchase orders complete by hand. 2. Distribute copies Standard Purchase Order Amendment or Cancellation Amendments or cancellation of a Purchase Order or other forms of agreement can only be initiated by communicating to Supply & Services in the form of an authorizing memorandum or e-mail. Cancellations recommended on the basis of "poor performance" must be accompanied by supporting information. Page 10 of 45 048 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: Contract terms and conditions in effect must be carefully reviewed prior to initiating action so that the impact to both the Corporation and the vendor can be quantified. There may be restocking fees or penalties so the condition of goods must be assessed. Where services are provided, work may have to be terminated on a job that is partially complete. Supply & Services is responsible for providing investigative services and/or be the arbitrator to ensure vendor relations as well as the user department's interest are protected. Client responsibilities: The Client department, in collaboration with Supply & Services is required to review and analyze the impact to the Corporation with respect to penalties or constraints which the Corporation may be subjected to by amending or cancelling an order, contract or agreement prior to notification of vendor. Initiate email with supportive information related to the request to amend or cancel the Purchase Order. Supply & Services responsibilities: Review the amendment or cancellation requirements and supportive information Co-ordinate a meeting with the Client and/or Vendor and/or Legal Services if deemed to be necessary. Prepare an amended Purchase Order and/or otherwise communicate with the vendor and client. Page 11 of 45 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: O7 Blanket Purchase Order Supply & Services responsibilities: To determine if Blanket Order is a feasibility method of purchasing in collaboration with the client and vendor. 2. To set up order and update Blanket Order listing and distribute. 3. To monitor contract expiration dates in collaboration, where necessary, in order to review before expiry. _Receivinq Goods and Services 07.01 Overview It is very important that goods and services provided are properly inspected prior to acceptance. Failure to initiate immediate action in response to incomplete transactions, damaged goods, inadequate service etc. can limit the City's ability to obtain satisfactory restitution. Goods and services received are accompanied by a packing slip or work order, tn the event either does not accompany the delivery, a receiving form is to be prepared by the requisitioning department's employee receiving the goods or services. 07.02 Procedures Receivinq Client responsibilities: To ensure goods are received and signed for by a representative of the department. The inspection process shall include: Page 12 of 45 t 50 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 1. Inspect the packaging and note any damage on the receiving form 2. If the goods are not acceptable do not accept 3. If the goods are received unopened, write "subject to inspection" along with signature on the bill of lading 4. Note on the packing slip and bill of lading any visible damage to the package 5. Note on the packing slip any concealed damage (when package is opened) 6. Compare the packing slip to the goods received for accuracy 7. Keep the bill of lading and packing slip with the shipment in the event the shipment has to be reported for damage or return 8. Sign the receiving form and forward to Accounts Payable 9. When releasing against a blanket order, ensure the account number is appropriate on receiving documents and appropriately authorized. 10. To advise Supply & Services of problems encountered with the contract and/or vendor as soon as possible. Exchanq_g_ and Return Supply & Services Responsibilities: 1. If the goods are initially accepted and subsequently deemed unacceptable contact the vendor immediately and confirm return/new shipment arrangements. Page 13 of 45 Procedure Title: 05 i Interdepartmental Procedure Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: O8 Client responsibilities: Report any damage or make request for return to Supply & Services. Exchange and return situations must include notations with respect to the reasons and damage (if applicable) on the receiving form. Person who requested the return must identify returned goods on the packing slip or receiving report and distribute copy to Accounts Payable. Retain copy and attach to client's copy of Purchase Order to ensure transaction is resolved. _Request for Information or Expression of Interest 08.01 Overview A Request for Information (RFI) or Request for Expression of Interest (RFEI) may be used prior to the preparation of a more formal bid solicitation using one of the accepted Purchasing Methods. An RFI or RFEI can be used in a number of circumstances including, but not limited to pre-qualifying and/or establishing a short list of qualified Vendors as a front end to a more formal bid solicitation. It can also be used to assist in developing options, better define scope or detailed design and documentation requirements in the case of projects where there is minimum reference or precedence or where new technologies may be involved. Page 14 of 45 05© Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 08.02 08.03 Prohibitions, Restrictions and Compliance The preparation and issuance of an RFI or RFEI shall be undertaken by Supply & Services with the involvement of the appropriate department. Procedure The following are guidelines only: A Request for Information or Request document usually consists of the following: for Expression of Interest · Project title or name · Project summary · Method of submission including: time, dates, address, telephone number, fax numbers · Outline of response requirements including the number of pages and topics to be addressed · Contact person(s) where Vendor can get additional information · Overview of and timing of selection or short list of Vendors · Evaluation criteria if required at this stage The objective is to determine as much information or interest in the required purchase of goods or services in order to proceed to a more formal request for quotation, tender or proposal. It is expected that the results of the Request for Information or Request for Expression of Interest will assist in the development of a more definitive approach to the marketplace using the most appropriate purchasing method, contractual terms and conditions and purchase agreement. The type of information that might be required of a vendor could include: · Ability to work within budget and schedule · Alternatives availability Page 15 of 45 C i ~q ,ff ~ O53 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: · Availability of Vendor · Cost implication regarding conversion, retraining, set up · Experience and expertise of the Vendor · Financial stability of the Vendor · Methodology proposed · Qualification of staff · Value added · Warranties available A questionnaire can be used to obtain information regarding the vendor, product or service offerings, capabilities, references and any other information required to establish, pre-qualify or short-list vendors. 09 Request for Quotations 09.01 Overview The Request for Quotations (RFQ) method of purchase is a competitive method. The process generally follows the activities included in the typical procurement cycle, Section 01.01. Depending on the degree of complexity or dollar value of the procurement, it will be necessary to carry out many of these activities albeit to a varying extent. The specifications for the goods and services and terms of purchase should allow for competitive quotations to be received. A sufficient number of Vendors shall be requested to submit quotations so that at least three responsive quotations are received. 09.02 Procedures Client responsibilities: 1. Complete Online Purchasing Requisition. Submit any attachments by email or internal mail quoting the requisition number. Page 16 of 45 O54 PICKE__ RING IProcedure Title: Interdepartmental Procedure Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 10 Supply & Services responsibilities: 1. Review requisition to ensure all required information is completed and the RFQ is the most appropriate Purchasing Method. 2. Assign document number. 3. Prepare Request for Quotation (RFQ). 4. Fax, mail or courier Request to selected vendors. 5. After closing date and time, review submissions. 6. Confirm that all of the required information is provided. 7. Complete evaluation summary. 8. Select lowest acceptable, responsive and responsible bid. 9. Review with client as necessary. 10. Obtain necessary approval. 11 Request appropriate securities (if required). 12. Issue Purchase Order or other form of contract. Request for Tenders 10.01 Overview The Request for Tenders (RFT) method of purchase is a competitive method of purchase that may include supplier or contractor pre- qualification. The process generally follows the activities included in Page 17 of 45 Procedure Title: I ApProved by: L O55 Interdepartmental Procedure Procedure Number: FIN 020-001 Revised: Approval Date: 10.02 10.03 the typical procurement cycle, Section 01.01. Given the complexity or dollar value associated with tenders it will be necessary to carry out many of these activities. The specifications for the goods and services and terms of purchase should allow for competitive tenders to be received. Tenders, for the most part, lend themselves to standard commodities and services as well as 'traditional' construction contracts. Complex initiatives or new technologies are better acquired by proposals. Prohibitions, restrictions and compliance All tenders are issued and received by Supply & Services. Tenders are to be advertised in a publication of general circulation, the Internet or chosen from a list of qualified bidders in accordance with the requirements of the Purchasing By-law. Procedures Preparation and distribution of tender documents Tender documents are issued by Supply & Services, in collaboration with the client department. Requirements including specifications contained within the document are to be specific, clearly stated, easily understood, and are mandatory requirements that must be met by the Vendor in order to be considered. Client responsibilities: 1. Complete Online Purchasing Requisition 2. Submit any attachments by email or internal mail quoting the requisition number. Page 18 of 45 O56 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: Supply & Services responsibilities: Review requisition to ensure all required information is completed and the Request for Tender is the most appropriate Purchasing Method 2. Assign document number Advertise tender including a general description of the contract; where and how the document can be obtained, the closing date, time and location, and the cost for the documents (if any). Any applicable mandatory site meeting or any prequalifications should be clearly identified in the advertisement. 4. Meet with client to review any questions or concerns 5. Create and/or review draft Request for Tender 6. Review any necessary changes with client approval if necessary Supply all prospective bidders with one copy of the official tendering documents, one standard tender envelope and a set of plans or specifications (if applicable) If a fee for tender documents is requested, it shall be paid to the City of Pickering. The Manager shall determine an appropriate fee and it shall be non-refundable, unless otherwise specified. If the fee is refundable, the fee shall be returned when applicable conditions have been met, i.e. tender document is returned in good condition and within the time specified, otherwise the fee shall be deemed to be non-refundable. Bidders are required to provide a bid deposit with their tender submission (if requested) in accordance with the tendering document. The amount may vary, depending upon the value or Page 19 of 45 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: ~pProved by: Approval Date: scope of the tender. The bid deposit shall be retained by the City to ensure that the bidder will enter into a contract and provides additional surety documentation (or such other documents with respect to the project) as requested. 10. Respond to enquiries during bidding period Record of Tenderinq Information A list of prospective bidders shall be maintained by Supply & Services. It is essential that the name, address and telephone number of prospective bidders are recorded when tender documents are released to facilitate distribution of addenda. ChancL.es to Competition Changes to a tender under call shall be made in the form of a written addendum e.g. change in specification; closing date has been extended; competition has been cancelled. Interpretations to bidder inquiries may justify a change to a tender call. Notification of Addenda to Prospective Bidder For the purposes of this section, delivery shall mean delivery acknowledged by a receipt such as registered mail, courier, pick up, or facsimile transmission. Addenda shall be forwarded to each prospective bidder by delivery to each prospective bidder who obtained tender documents at the last known place of business. A prospective bidder may be requested to pick up addenda and sign for its receipt Page 20 of 45 058 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: Addenda shall accompany subsequent tender documents released. Notification to Prospective Bidder When Competition Closinq Date/Time Has Been Extended When the competition closing date/time for receiving tenders has been extended, in addition to the addenda, an advertisement setting out the revised competition closing information shall be inserted in the publication(s) originally used, when practical. Dis. position of Tenders When Competition Closinq Date/Time Has Been Extended When the competition closing date/time for receiving tenders has been extended, tenders already received shall be handled as follows: If the extension is two weeks or less, the bidder shall be advised that their tender will be returned when the City receives such a request in writing. If the extension is more than two weeks, tenders already received shall be returned unopened by hand delivery addressed to the last known place of business. Cancellation of Competition Each prospective bidder who obtained tender documents shall be notified of the cancellation of the competition by hand delivery addressed to the last known place of business. If practical, notification of the delivery may be given by telephone or facsimile. Page 21 of 45 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date' When a competition is cancelled, no tenders will be received. All tenders delivered to the City shall be time stamped and returned unopened to the prospective bidders by hand delivery addressed to the last known place of business. Recall of Tenders A tender may be recalled at the discretion of the Manager and the appropriate Department Head, who shall set out the justification for such recall in the final Report. Receiving Withdrawal of Tender A bidder who has submitted a tender may request that his/her tender be withdrawn. The withdrawal shall be allowed if the request is made before the competition closing date and time for the competition to which it applies. Withdrawal requests must be directed to the City by hand delivery, facsimile or in person and signed by an authorized signing officer of the bidder. 2. Telephone requests shall not be considered. Tenders confirmed as withdrawn prior to the competition closing shall be returned unopened to the prospective bidder and recorded on the Tender Summary Sheet as withdrawn. Withdrawal requests received after the competition closing time will not be received. The bidder concerned shall be informed that the withdrawal request arrived too late for consideration. However, the bidder may withdraw a tender during the tender opening under certain circumstances. (refer to Item 6). Page 22 of 45 06O Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: Withdrawal of a tender does not disqualify a bidder from submitting another tender on the same competition only if received prior to competition closing. When more than one tender is opened on the same day, a bidder who has been read out as Iow on a previous tender (same day) may withdraw from subsequent tenders in the following manner: · A written notice of withdrawal, signed by the bidder, will be handed to the Clerk before any bids are read out on the tender(s) to which it applies. The withdrawal notice shall be attached to the applicable bid and the withdrawal shall be announced. The amount of the withdrawn bid shall not be read out and shall be returned. Tenders withdrawn under this procedure cannot be reinstated. Example - a bidder cannot reinstate a withdrawn tender if subsequent checking proves that a tender submitted on a previous contract was not, in fact, Iow bid. Any correspondence requesting withdrawal of a tender discovered at the public opening shall be read by the Clerk who shall state the nature of the correspondence, the name of the bidder and the tender number. The withdrawal notice shall be attached to the envelope, and shall be returned to the bidder. Tenders The tender opening will take place in public at a time, place and date as specified. A listing of tenders received consisting of the names of bidders for each tender shall be available to people present at the tender opening. Page 23 of 45 Interdepartmental Procedure , Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: O e__~p_E.QLEg Committee 1. A minimum of three City staff to include the Clerk, Manager and appropriate Department Head or designates shall attend a public tender opening. 2. Any other people may attend the public opening. Action on Unknown Tender at O enp_E_EL0~ 1. Any tender that does not have the tender number or project description on the envelope shall be opened and placed with its appropriate group. Action on Correspondence Found Enclosed in the Envelope 1. If correspondence is found enclosed with a tender in the envelope which, in the opinion of the Clerk, could qualify the bid in any way, the tender shall initially be considered an improper bid and shall be so noted in the record of tenders opened and the tender read out in the normal manner. This correspondence and the tender shall be referred to the Manager for a decision as to its acceptance or rejection at a later time. Action When More Than One Tender Under Same Name If more than one tender is received under the same name for the same competition without any notice of withdrawal, the tender contained in the envelope bearing the time closest to the competition closing time shall be considered the intended bid. The other tender(s) received for that bidder shall be considered withdrawn and returned to him in the usual manner. (Refer to Withdrawal of Tender section) Page 24 of 45 PI_CKER! G Procedure Title: Interdepartmental Procedure -~cedure Number: FIN 020-001 Revised: Approved by: Approval Date: If two tenders are received in the same envelope, the properly executed copy or if both are properly executed and prices differ, the lower price shall be considered the intended bid. Announcing Bid Amounts and Recording Information When all tenders have been accounted for, the Clerk shall announce for each contract, the contract number, the name of the bidder and the total bid amount. Other requirements may be checked and read out as well, e.g. the amount of the bid deposit, agreement to bond form, addenda. The tender summary sheet shall be used to record information read out at the opening. When all tenders have been read out and the information has been recorded, the Tender summary sheet shall be closed off by drawing a diagonal line in the unused space under the information listed. The signatures of all people present must appear on the tender summary sheet. Alternate Bid When provided for in the tendering document, a bidder may submit an alternate to the specifications, such alternate tender shall be identified as an Alternate Bid, read out and recorded. Evaluation Tendering documents shall tendering requirements and tender to be irregular. be checked for compliance to non-compliance shall deem the Page 25 of 45 Procedure Title: Interdepartmental Procedure Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: Extreme care must be exercised to ensure that irregular tenders are handled in a manner which is fair to the bidders, the public and in the best interest of the City. An irregularity which deems a tender an "automatic rejection" and discovered during the public tender opening, shall be stated aloud, shall be so noted on the tender summary sheet and pricing shall not be read out. When rejection of Tender is discovered after the tender opening, it shall be so noted on the tender summary sheet and pricing shall not be carried forward. An irregularity which may deem a tender "subject to further review" discovered during the public tender opening, shall be stated aloud, shall be so noted on the tender summary sheet and pricing will be read out. An irregularity discovered after the tender opening, its acceptability is still subject to further review. If it is acceptable, bid information will be carried forward. If it is not acceptable, bid information will not be carried forward. If it is acceptable, bid information will be carried forward. If it is not acceptable, bid information wilt not be carried forward. Checkinq Tenderinq Documents Checking tenders shall be completed as soon as practical following the public tender opening. · Tender envelope supplied by the City is used. · Required form of tender has been used. · Tender must be legible using ink. · Bid is properly executed. · Bid sets out the base price in the terms called for in the tendering documents. · Bid deposit is provided and in an acceptable form. · Agreement to Bond (bonding) is provided and in an acceptable form. Page 26 of 45 O64 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: · Bid is not qualified. · Bid is submitted by a qualified tender call, if applicable. · Additional tendering requirements have been · Tender meets specifications. · Erasure, overwriting, or strikeout initialled signing the document. · Tender is not obscured by the use of correction fluid or correction tape. · Tendered unit prices and extensions are available for checking. bidder on a pre-qualified met. by the person Action When Bid is Rejected When checking procedures are completed, a bidder who has had a tender rejected shall be advised in writing and information shall be included in the summary to the appropriate Department Head. Action Where Two or More Bids Received in the Same Amount Where two or more responsive and responsible bidders have submitted bids and have bid the same amount, refer to Purchasing By-law Section 05.00 - Negotiation. Competition Summart: A competition summary memorandum which includes a recommendation shall be prepared by Supply & Services and sent to the appropriate Department Head. Award of Tender 1. A Report to the Chief Administrative Officer recommending the award of a tender shall be prepared and signed by the Page 27 of 45 Procedure Title: Interdepartmental Procedure Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: Manager, appropriate Department Head and Treasurer if there are financial implications. The Department Head shall include comments about the recommended bidder's past performance, funds available, account charges, project cost, and a recommendation for approval to accept a tender. Where the lowest, compliant tender meeting specifications is acceptable, award is subject to the approval of the Chief Administrative Officer. Where the recommended tender is not the lowest compliant tender meeting specifications, a Report to Council shall be prepared and signed by the Manager, appropriate Department Head and Treasurer if there are financial implications, including the reasoning for the recommendation. Award is subject to the approval of Council. Notwithstanding the guidelines for irregular tenders, the Council may, in its sole discretion, waive any irregularity. The City reserves the right to accept, not accept or reject any tender. Upon acceptance of a tender, the bidders shall be notified of the award. Disposition of Bid Deposit Following the opening of tenders, all deposits other than the deposits of at least the Iow three bidders may be returned to the applicable bidders. If deposits are returned by hand delivery, acknowledgement of receipt in writing must be signed by the bidder. The retained deposits will be held until the contract is awarded and deposits other than the deposit of the successful bidder shall be returned as aforementioned. Page 28 of 45 O66 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: Action _~pon Tender Acceptance -- Execution of Contract When a recommendation to accept a tender is approved, the bidder shall be advised as soon as practical and shall be considered under contract for tendered work upon receiving confirmation from the Manager. The bidder shall be allowed ten working days from the date of receiving confirmation to provide acceptable securities. Once received, the deposit of the bidder shall be returned as aforementioned. Bondin~nts When requested in the tendering documents, a Performance Bond and/or Labour and Material Payment Bond for the specified amount issued by a Bonding Company satisfactory to the Treasurer, must be furnished by the bidder within ten days of the acceptance of the contract. In the event the bidder wishes to substitute for any of the bonding requirements a certified cheque, bank draft, money order or letter of credit, such substitute must be approved by the Treasurer. Action When Successful Bidder Does Not Enter Contract If a contract has been awarded and a successful bidder: Fails to fulfill necessary requirements, e.g. provide acceptable securities, contract bond, cash or other acceptable collateral within the specified time, additional time may be granted or recommend to the original approving authority (eg. Chief Administrative Officer or Council): Page 29 of 45 Interdepartmental Procedure I~rocedure Title: APproved by: Procedure Number: FIN 020-001 Revised: Approval Date' 10.04 (a) (b) the tender shall be awarded to the next higher bidder; or the competition shall be cancelled. 2. If a contract has been awarded and the successful bidder: Indicates the work of the contract will not be performed, with the concurrence of the Department Head, recommend to the original approving authority (eg. Chief Administrative Officer or Council): (a) (b) the tender shall be awarded to the next higher bidder; or the competition shall be cancelled, The deposit of a successful bidder shall be forfeited to the City and the tender awarded to the next bidder. In addition, the City may claim for damages. If a deposit was not requested for the contract and a successful bidder fails to fulfill necessary requirements or fails to enter into or perform the contract, the City may claim for damages. Tend erin I rcLE_EEg u la rities Guideline forHandlin Irc~ularities 1. To maintain the integrity of the public tendering process;. To maintain a flexible process in which Iow bids are not rejected because of minor irregularities. This approach allows the City to maximize the advantages of a competitive public tender process. To ensure that the City's policy for dealing with irregular tenders promotes fair competition. Page 30 of 45 068 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: To ensure that any bid accepted by the City is legally capable of being accepted. To ensure that no bidder can avoid its tender by its own default or mistake. o Irregularities that go beyond the scope of these guidelines shall be reviewed with the Treasurer who shall consult with the Chief Administrative Officer who shall have the final decision on acceptance or rejection of the bid° Tender irregularities will be dealt with as specified below: · Late bids · · Tender envelope not sealed · Bids not completed in ink missing from · Original ink signature · Qualified bids (bids qualified or restricted by an attachment or added statement)_ Bids received on documents other than those provided in the request Bid does not meet specifications · Alternate bid Late bids will not be accepted and will returned unopened. Bids will be deemed have been received when the City stamped the envelope with the time and of receipt. · Unsealed bids will not be accepted for depo · Automatic rejection · Automatic rejection · Automatic rejection Automatic rejection unless allowed for in tendering instructions Automatic rejection · Automatic rejection unless allowed for in tendering instructions Page 31 of 45 Procedure Title: O69 Interdepartmental Procedure Procedure Number: FIN 020-001 Revised: Approval Date: Approved by: L · Bid Security a) Surety's Corporate seal or Surety signature missing from Bid Bond or Agreement to Bond b) Bid Bond or Agreement to Bond does have Surety's Corporate seal and Surety signature but does not have bidder's corporate seal or bidder's statement to bind the corporation c) Bid Deposit, Bond or Agreement to Bond not provided or not in the form specified d) Bid Deposit, Bid Bond or Agreement to Bond not sufficient Automatic rejection Two working days to correct · Automatic rejection · Unless insufficiency is insignificant, automatic rejection · Tender form does not have bidder's Corporate Seal or statement "1 have the authority to bind the Corporation" · Bid does not acknowledge addenda · Bid received from a bidder who has not been approved as a qualified bidder from a prequalification process · Bid received from a bidder who did not sign-in at mandatory site visit when instructed to do so in the tendering instructions · Failure to return the documents as specified · Automatic rejection · Automatic rejection · Automatic rejection · Automatic rejection · Automatic rejection unless otherwise specified in the tendering instructions Page 32 of 45 O70 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: 'Approval Date: · Partial bid (all items not bid) · Automatic rejection unless allowed for in Specified tender envelope or label not used · Tender form does not have the bidder's Corporate Seal or statement "1 have the authority to bind the Corporation" but has bidder's ~ature · Uninstalled changes to the bid documents which are minor (e.g. bidder's address is amended by over- writing but not initialled) · Unit prices in the Schedule of Prices have been changed but not initialled · Other mathematical errors which are not consistent with unit prices · Pages are missing from bid · Bid which suggests that the bidder has made a major mistake in calculations tendering instructions · May be considered · Two working days to correct. Two working days to correct. The reserves the right to waive initialling accept the tender. Two working days to correct. The reserves the right to waive initialling accept the tender 8 a Two working days to initial corrections made by the City. Unit prices shall govern a the tender will be corrected accordingly. City reserves the right to waive initialling a accept tender as corrected. · Two working days to supply the missing where in the opinion of the City, the missi page(s) would not directly affect the submitted. The City reserves the right waive the need to receive the missing and accept the tender or to reject the o___~_~Z~ ht · Decision will be on a case-by-case basis consultation with the Treasurer · Withdrawal of bid · Withdrawal of bids received after the closi time will not be allowed Page 33 of 45 ~itq o~ ~t~ _ Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: · Tie bids ° Completion date is other than specified in the tendering specifications The designated official may use one of the following methods of dealing with tied bids, based upon the specific situation: Use a coin toss to select a recommended bid Request the tied bidders to submit new bids Negotiate with the tied bidders to break the tie Two working days to clarify the completion date. The City reserves the right to waive the clarification of the completion date and accept the tender, or to reject the tender outright. 11 _Request for Proposals 11.01 Overview The Request for Proposals (RFP) method of purchase is a competitive method of purchase that may or may not include Vendor pre- qualification. The process generally follows the activities included in a typical procurement cycle, Section 01.01. Depending on the degree of complexity or dollar value associated with the proposal it will be necessary to carry out many of these activities albeit to a varying extent. Some or all of the specifications and contract terms and conditions may not be determined prior to proposals being solicited. Depending upon the terms of the proposal call, the process may involve negotiations subsequent to the submission of proposals on any or all of the specifications, contract terms and price. Proponents may or may not be invited or permitted to submit a final and best offer. The use of proposals allows for greater flexibility in selecting a successful bidder, however, all proponents are to be given the same information, and must be treated equally and fairly. The RFP document still forms the basis for the contract. The contract may Page 34 of 45 O'72 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 11.02 include information that was not originally specified in the RFP document. With regard to professional services, it is the intention of the City to employ consultants generally on the basis of their perceived competence and expertise relative to the project in hand, the cost of their services, their ability to complete the work within the required time, and their past record in performing similar work. A Request for Information or Request for Expression of Interest may be issued in advance of a proposal to assist in the development of a more definitive set of terms and conditions, scope of work and the selection of qualified Vendors. Alternatively, it may be incorporated into the proposal document where pre-qualification of Vendors is required. Procedures Client responsibilities: 1. Complete Online Purchasing Requisition. Submit any attachments by email or internal mail quoting the requisition number. Supply & Services responsibilities (and Client where indicated): Review requisition and/or meet with Client for an initial meeting to ensure all required information is available and the Request for Proposal is the most appropriate Purchasing Method. If not already submitted, request the Client to prepare (in point form) and submit a Scope of Work/Service. Assign document number· Page 35 of 45 073 Interdepartmental Procedure Procedure Title' Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: L 10. 11. 12. 13. Prepare draft proposal document (may be prepared by the Client if applicable). Review draft document with Client. Discuss specific areas such as methodology, timelines, evaluation process and criteria. In conjunction with the Client, complete criteria and establish a weight for each criteria. Establish an evaluation committee with a minimum composition of two representatives from the Client department and one from Supply & Services. Advertise proposal (only if required) including a general description of the proposal' where and how the document can be obtained, the closing date, time and location, and the cost for the documents (if any). Circulate bid documents to prospective bidders. Respond to enquiries during bidding period. Receive proposals which is not typically a public opening. Meet with Client to review proposals received. Each member of the evaluation committee is given a copy of the proposal response and an evaluation criteria. Members are requested to evaluate each response against the criteria and upon completion forward to Supply & Services representative. Receive the completed evaluation from each committee member and transfers all figures to a summary to show the complete evaluation from all members for each bid response. Total all committee member responses for each vendor and establish an average score. Page 36 of 45 074 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 14. Review the results with the evaluation committee. The committee has the option of the following: A) Select proponent who has the highest average score. Supply & Services then sets up ¢ meeting with the selected proponent and the committee members. This meeting is called to confirm understanding of the Scope of Work/Services as set out in the proposal and to finalize timelines. 15. 16. OR B) If scoring is close, the committee could decide to interview all or the three proponents with the highest scores. Supply & Services sets up an interview session with each proponent. The committee prepares interview questions. Proponents may or may not get a copy of the questions prior to interview. A matrix is then created to evaluate the proponent's responses in the interview session and to establish the successful proposal. Award proposal call as follows: · For proposals over $50,000 selection committee to prepare report with recommendation to Council For proposals between $25,000 and $50,000 Manager/Department Head submit (joint report) with recommendation to Chief Administrative Officer · For proposals under $25,000 submit recommendations to the Manager Receive approvals, notify successful Vendor, issue Purchase Order and/or contract agreement. Page 37 of 45 ~itq ~ ~ PICKE G 075 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised' Approved by: Approval Date: 12 17. Send a letter of regret to unsuccessful proponents (optional). 18. Resolve any contract administration or pricing issues with Accounting, Client, and Vendor. Emerqency Purchases - Over $1,000 12.01 Overview In the event of an emergency, the Purchasing By-law permits the Manager to act accordingly. An emergency is defined as an event that could not be foreseen, that is a threat to the public health and welfare, the public service, or public property that requires the immediate delivery of supplies or the performance of service. The direct acquisition of goods or services is deemed essential. Existing Blanket Purchase Agreements may be used to respond to the emergency. Alternatively new supply arrangements may have to be developed. It is in everyone's best interest to minimize such incidences and limit the application of this procedure to genuine emergency situations. The responsibility for requesting the emergency acquisition rests with the Chief Administrative Officer, respective Department Head or their designates. 12.02 Procedure In the event of an emergency Supply & Services will work with the client and the vendor community to obtain the necessary goods and services. If circumstances are such that Supply & Services are not available, the client will contact the vendor community directly. Page 38 of 45 076 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: Client responsibilities: Evaluate the emergency situation in terms of the imminent need for goods and services. Contact Supply & Services to establish supply arrangements. In the event of an emergency during business hours the requisitioner must obtain a purchase order and any necessary departmental approvals. In the event that contact cannot be made with Supply & Services proceed to establish supply arrangements directly. Prepare a Purchasing Online Requisition in accordance with normal purchasing procedures. In the case of requisitions for goods already ordered/acquired under an emergency purchase order, provide the following by the next business day: · Purchase order number if already obtained from Supply & Services · Vendor name and address · Method of shipping · FOB terms · Pricing · Taxes · Confirmation and delivery date Prepare a memorandum outlining the circumstances that required the emergency purchase of goods and services and submit to Supply & Services. Supply & Services responsibilities: Upon notification of an emergency situation requiring the immediate acquisition of goods and services, establish Page 39 of 45 07? Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised' ~Approved by: Approval Date: 13 Di_~osal 13.01 necessary sources of supply consistent with consideration to best business practice but without the need for competition if this requirement cannot be met. Upon receipt of the Purchase requisition, process a Purchase Order, in accordance with normal purchasing procedures. Review the memorandum report, and prepare or otherwise obtain any necessary post approvals in accordance with emergency provisions of the Purchasing By-law. In the event that the purchase requires the approval of Council the provisions of the Purchasing By-law apply. Overview Disposal involves the sale, exchange, transfer goods owned by the City that are surplus to its needs. Goods may be disposed of by several methods including but not limited to public auction, co- operative purchasing, call for competitive bids, trade-in, donation to charity or educational institute, scrapping, or as Council may otherwise direct. Unless otherwise stated items subject to disposal are considered "As is, where is". 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, arrange for their disposal in a cost effective and efficient manner. Real property (lands, buildings, tenements and any interest, estate or right or easement affecting same) is to be disposed of in accordance with the policies adopted by Council from time to time. Page 40 of 45 075 (~itq o~ ~ PI KEFJNG Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 13.02 13.03 All net proceeds from the disposition of any surplus goods or property shall be deposited to the credit of the general revenue of the Corporation Prohibitions, restrictions and compliance Employees may not purchase any item(s) directly from the City unless disposed of by public auction. Any employee who knowingly contravenes the Purchasing By-law commits an act of misconduct and is liable to disciplinary action. Procedure Client responsibilities: When goods owned by the City (fixed assets) are no longer required within a department, the Department Head shall advise remaining Department Heads to determine if there is a use for the item(s) elsewhere in the City's operation. If an item is transferred from one department to another, a disposal of fixed asset form shall be completed by the originating department, approved by Department Head and forwarded to Corporate Services for processing. If no Department Head has an interest in the item(s) and it is available for Supply & Services as a trade-in on an upcoming acquisition, Supply & Services shall be advised. When an item is offered as a trade-in, a disposal of fixed asset form shall be completed by the originating department, approved by Department Head and forwarded to Corporate Services for processing and a copy forwarded to Supply & Services. Page 41 of 45 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: When no Department Head has an interest in the item(s) and it is not being offered as a trade-in, it shall be declared surplus and disposed of by way of public auction or Supply & Services may determine a method of disposal. A Disposal of Fixed Asset form shall be completed by the originating department, approved by the Department Head and forwarded to Corporate Services for processing. When goods are deemed to be scrap, a disposal of fixed asset form shall be completed by the originating department, approved by Department Head and forwarded to Corporate Services for processing and a copy forwarded to Supply & Services. An appropriate method of disposal shall be determined by Supply & Services. Supply & Services responsibilities: Arrange for the surplus goods to be auctioned or otherwise dispose of them. Sale proceeds shall generally be in the form of cash, certified cheque, credit note or any combination at the time of disposal Upon receipt of any sale proceeds, verify receipt against goods sold, and forward proceeds to Accounting Services. 3. Maintain a record of any transactions for reporting purposes. The Manager shall report to Council annually on all disposal activity including sales, expenses and net proceeds. Page 42 of 45 Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised: Approved by: Approval Date: 14 Co-Operative Purchasinq 14.01 Overview 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 the Purchasing By-law; and the awarding and reporting of such contracts is generally in accordance with the requirements of the By-law. The co-operative method of purchasing with other public agencies shall be utilized when advantageous and practical. Formal quotation method may be utilized when the City is the host agency. 14.02 Procedure Supply & Services responsibilities: Submissions relating to the City shall be received by Supply & Services. A recommendation shall be prepared and forwarded with a summary and, if required, copies of the submissions, to the appropriate Department Head or designate in accordance with normal purchasing procedures. The Department Head or designate shall respond in writing, including account number(s) and budget available. When the budget allocation is available and an evaluation deems a quotation acceptable an award can be made. A contract may be established upon such terms and conditions deemed beneficial to the City. Page 43 of 45 Procedure Title: Interdepartmental Procedure ! Procedure Number: FIN 020-001 Revised: Approved by: Approval Date' 15 Vendor Performance 15.01 Overview it is very important that a vendor's performance is evaluated on an ongoing basis not only to ensure compliance to the contract terms and conditions but also to provide some basis for resolving disputes and/or dealing with requirements for additional or future business with the City. Contract terms and conditions in effect must be carefully reviewed prior to initiating action so that the impact to both the Corporation and the vendor can be quantified. Where services are provided, work may have to be terminated on a job that is partially complete. Supply & Services is responsible for providing investigative services and/or be the arbitrator to ensure vendor relations as well as the user department's interest and those of the City are protected. Supply & Services, in conjunction with Client departments, will provide more formal evaluation criteria for specific classes of purchase e.g. blanket order vendors. The results of an evaluation shall be considered for future projects. 15.02 Procedure Client responsibility: 1. Document performance concerns on a timely basis. Copy Supply & Services on any correspondence to vendors dealing with performance issues. Request Supply & Services assistance in resolving performance issues. Page 44 of 45 ~itq o¢ & ~ Interdepartmental Procedure Procedure Title: Procedure Number: FIN 020-001 Revised' Approved by: Approval Date: As requested by Supply & Services, complete a bidder's evaluation form, obtain the signature of the appropriate Department Head and send to Supply & Services. Supply & Services responsibilities: Provide the necessary support to bring satisfactory resolution to vendor performance issues up to and including termination and provision of new sources of supply. 2. Maintain a bidder's rating system(s) 3. Provide a bidder's rating to that bidder upon request by the bidder 4. Remove a bidder from the list of bidders for future projects Note: Future shall be considered as a minimum of one year from the date a bidder is notified or the project term. After such time has lapsed, a bidder may be added to the List of Bidders upon request by the bidder and after satisfactory evaluation to confirm acceptability. Page 45 of 45 ATTACHM EN-r ~,...;3___ TC REPORT # C T~___~55:c ('OMPARISON OF I)OLLAR IJMITS ~ ~ ''~ The Following is a brief summarx of dollar limits and represents SOlU~C lbi-i]~ of guide. Some caution in inte~retation is required as each municipalitx xaries in terms of tho processes, definitions of goods etc., spending authorities, approvals etc. ha addition thcx 122a~ Ha%o different limits 1bt delegated authoritx as well tbr acquisition of consulting and negotiations. RcI~rcncc should be made to thc specific Purchasing Bv-kax~ of each municipality lbra complete inteqwetation. Peel Up to $25000 $25.000 -$ l 0().( ()(~ $100,000 + h~£ormal quotations t::onnal q uotations Tender Halton Region Up to $5.00() S5,000-525.0{ S25,000-51 $100,000- CAO and ('ommissioncrs cam purchase directlx lnFomnal quotations Formal quotations Tenders Brampton Up to 52500 S2,500- S50.()()() $50.000-510().< $100,00() - PCARD Written quotations Formal quotations Tender Guelph Up to SlO0.O0() Up to S250.00() $100.000-52 Over $250,001) lnibrmal quotations tgoods and scrx ~ccs} Ini'onnal quotations (COl2Structton (mix} Fore,al Quotations Ibr ?ods and scrx ices Tenders Pickering 196'9 $5,000 to Over Fore, al quotations Tender 1994 Guidch,c Operating LIp to 525.()() ) Informal quotations S25,000to 575.000 Formal quotation Over 575.00(/ Tender Pllrc/z~Zxl'n,E ]3x'-.l.~h 2001 LIp to 5500 S500 to $5,00o $5,000 - S25.o00 $25,00o to S 100,000 Over $100.000 Manager S&S Dept Head max delegate stalT pricing by telephone xx fitten cOmmLmlcation informal quotation Fern]al quotation Tender Mississaug_~ Up to S500 $500- $15,000 $15,000 - $50,000 $50,000 + Bx' Department Head in accordance xxith certain pnnciples Written or x erbal quotations Formal quotations Purchasing Agent to advertise Durham Up to $20,000 $20,000 - $100.000 Over $100~000 Osha~va Up to $25,000 $25,000 - $50,000 Over $50,000 $3.000 - $5,000 $5.000 25,000 Over 525.000 Whitbv Up to $10,000 $10.000 - $25,000 Over 525,000 Infom~al quotations Formal quotations Tender InIbm~al quotations Formal quotations Tender informal quotations Formal quotations Tender informal quotations Fomml quotations Tender