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96-10 COUNTY OF ELGIN By-Law No. 96-10 "BEING A BY-LAW TO ESTABLISH A PURCHASING POLICY FOR THE CORPORATION OF THE COUNTY OF ELGIN" WHEREAS it is deemed desirable to codify standardized procedures to ensure fair and equitable practices for the procurement of all County goods and services. NOW THEREFORE the Municipal Council of the Corporation of the County of Elgin enacts as follows: 1. THAT the County of Elgin Purchasing Policy, attached as Schedule "A", be and is hereby authorized as the standard to be followed for the procurement of all County goods and services. 2. THAT this By-Law shall come into force and take effect upon its passing. READ a first and second time this 26th day of March, 1996. READ a third time and finally passed this 26th day of March, 1996 ~:./ M G Redd, County Administrator/Clerk. SCHEDULE "A" By-Law No. 96-12 COUNTY OF ELGIN PURCHASING POLICY MARCH 1996 THE CORPORATION OF THE COUNTY OF ELGIN A Policy for the Purchase of Goods and Services Purpose: The purpose of this policy is to standardize procedures to ensure fair and equitable practices for the procurement of all County goods and services, taking into account the Municipal Guide- lines regarding the Ontario-Quebec Procurement Agreement as indicated in Appendix 'A' attached. 1. DEFINITIONS For the purposes of this policy the definitions as set out in this section shall apply: a) "Approved Budget" means the total budget as approved by Council for the current fiscal year. b) "Contract" means any agreement, written or oral, including leases and rentals between the County of Elgin and some other party or parties for the supply of goods or services at a specified price. c) "Normal Operating Expenditure" means expenditures of an operational reoccurring nature and does not include one-time special or Capital expenditures. 2. APPLICATION OF THIS PURCHASING POLICY This purchasing policy shall apply to the purchase of all goods and services made on behalf of the County of Elgin. 3. GENERAL CONDITIONS - APPROVALS When a purchase of goods or services is contemplated, the general conditions with respect to approvals set out herein shall be followed 2 a) The Department Head shall ensure that all goods or services to be purchased are authorized in the. approved budgets b) When goods or services to be purchased, in order to accomplish Council approved priorities and programs, would cause the approved Budget to be exceeded, the Department Head shall report to County Council through the respective Standing Committee to obtain the approval of Council prior to engaging in a contract, subject to sub-clause (c) herein. c) Prior to the approval of the Current Budget a Department may incur normal operating expenditures up to 40% of the previous year's Budget. 4. PROCEDURE FOR THE SELECTION OF SUPPLIES OR SERVICES a) Verbal ouotations Orders for goods or services with a value between $1,000.00 and $4,999.00 shall not be placed until at least three (3) verbal quotations are obtained. These quotations must be documented on the Quotation Summary Form. In the absence of quotations from three suppliers for the goods or services requested, or if the lowest quotation that meets all acceptable standards and specifications is not selected then an explanation on the Quotation Summary Form is required in all cases. b) written ouotations Orders for goods or services with a value between $5,000.00 and $24,999.00 shall not be placed until at least three (3) written quotations are obtained. A written specification must accompany the request to potential suppliers for goods or services 3 ordered with a value greater than $10,000.00 The written quotations must be summarized on the Quotation Summary Form. In the absence of three suppliers willing to provide a written quotation for the goods or services requested, an explanation on the Quotation Summary Form will be required. If the lowest quotation that meets all acceptable standards and specifications is not selected, the Department Head must report to the respective Standing Committee and County Council prior to the purchase of the goods or services. In all cases, the purchase of goods and services must be authorized by Committee and Council prior to procurement. c) Tenders 1. All goods or services to be purchased with a value exceeding $25,000.00 must be tendered in writing. 2. All tenders shall be publicly advertised in the London Free Press and the st. Thomas Times Journal, unless otherwise specified by County Councilor the various Ministries. The tender advert- isement must allow sufficient time between the advertisement and the closing date of the tender to allow suppliers the opportunity to examine details pertaining to the tender, to obtain all necessary documents, and to complete and submit the formal tender documentation. 3. Tenders shall be opened publicly at a pre-determined time in the presence of the Chairman of the appropriate Standing Committee or designate and the Department Head or designate. 4 FOllowing a thorough review of all tenders received, the 4 Départment Head must report to County Council through the appropriate Standing Committee, recommending the preferred bid. 5. EXCEPTIONS TO PROCEDURE FOR SELECTION OF SUPPLIERS a) Emerqencv Purchases This method of purchasing may be used when the circumstances warrant immediate action or when health and safety and the public interest are in jeopardy, and where this method of purchasing would result in an over-expenditure or an unbudgeted expenditure of $2,500.00 or more. Emergency purchases require the approval of the Department Head and must be reported to Council through the appropriate Standing Committee. b) Oualified Supplies Qualified suppliers are defined as suppliers of goods or services of a specialized nature which, due to the nature of the goods or services, make it impractical to change suppliers frequently. Banking, legal, audit, and insurance are examples of services which Would require qualified suppliers. It will be the responsibility of the Department Head to assess the appropriateness of using qualified suppliers. Ongoing contracts with qualified suppliers, where annual expenditures exceed $5,000.00, will be reviewed at least every three years by the appropriate Standing Committee, in order to assess the continued suitability of those suppliers. The Department Head will be responsible for preparing such a review. c) Proposal Method· of Purchasinq This method of purchasing shall be used onlv where the expertise for developing proper specifications lies in the hands of the supplier, or where additional information is required and it is 5 impractical to call for tenders, such as in the retention of consulting services. A minimum of three prQPosals must be documented on the Quotation Summary Form. The Department Head must report to Council through the appropriate Standing Committee, recommending a preferred supplier if the recommended proposal exceeds $25,000.00. d) Co-Operative Purchasinq Every department will have regard to the Co-Operative Purchasing Agreement and will not deviate from the terms and conditions of said agreement. 6. PURCHASING PROCEDURES a) No purchase shall be made without authorization of the Department Head or his/her designate. b) Exceptions to Sec. 6, sub. sec. (a) : - petty cash purchases - utilities, telephone, benefits, expense claims c) The appropriate invoice along with all accompanying documentation, including the Quotation Summary Form, will be forwarded to the Department Head for approval of payment. Here, the Department Head is approving all documentation as being in good order and that departmental spending is within approved budgetary levels, as prescribed by County Council. d) Tenders/Quotations that are equal in price shall be decided on quality, performance, references and service, among other factors considered relevant to the service or goods. If both suppliers are judged to be equal in price, quality and service, a flip of the 6 coin in the presence of both suppliers would determine the success- ful bidder. e) A copy of the Quotation Summary Form shall be sent to the County Treasurer who shall inspect each form for compliance with the policy. The Treasurer shall sign the form indicating that he/she has reviewed it. The Department Head who authorized the purchase, is ultimately responsible for the transaction. 7 THE COUNTY OF ELGIN QUOTATION SUMMARY FORM Department Verbal ____ (>$1,000<=$4,999) Good or Service Requested: written ____ (>$5,000<=$24,999) SUÞÞlier Price Remarks I I I I I I I I I I I I I I I I * USE REVERSE TO PROVIDE ADDITIONAL INFORMATION IF REQUIRED. This document must be filled out for the above-noted verbal or written quotation amounts. If less than three quotations are obtained or if the recommended quotation is higher than the lowest quotation that meets all acceptable standards and specifications, an explanation must be provided on this form. Approval from the appropriate standing Committee is required if the amount of the purchase is greater than $2,500.00 and the recommended quotation is higher than the lowest quotation that meets all acceptable standards and specifications. RECOMMENDATION: Signature Date Department Head Signature Date Treasurer A' Municipal Information Request Ontario-Quebec Procurement Agreement APPENDIX Municipal Finance Branch 777 Bay Street Toronto ON M5G 2E5 Fax (416) 585-6315 Ministry of Municipal Affairs and Housing ® Ontario .... . -...- Ontario must comply with the terms and conditions of the Agreement which comes into effect July 1, 1995 Municipalities throughout Ontario-Quebec Procurement Ontario and affects all Broader of This Agreement was signed in 1994 by the Government Public Sector entities including municipalities. The information provided by municipalities to the Ministry of Municipal Affairs and Housing will be used to meet the reporting requirements of the Ontario-Quebec Trade Agreement Mail. this Form and Return by Fax or Please Complete Municipal I.D. Number Municipality be using the municipality wi methods Please indicate which one or combination of procurement to comply with the terms of the Procurement Agreement Daily Newspaper o o o Suppliers List Use of Electronic Tendering -. to advertise construction procurements valued the Ministry of Municipal Affairs and Housing If the municipality is using Newspaper Advertising at $100,000 or more, the municipality must inform by completing the following section Designated Daily Newspaper 767 (07195)