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01-11 COUNTY OF ELGIN By-Law No. 01-11 BEING A BY-LAW TO ESTABLISH A PURCHASING POLICY FOR THE 96-10' CORPORATION OF THE COUNTY OF ELGIN AND TO REPEAL BY-LAW NO. WHEREAS it is deemed desirable to codify standardized procedures to ensure fair and equitable practices for the procurement of all County goods and services Elgin of the Corporation of the County of Counci the Municipal NOW THEREFORE 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authorized as the standard to be followed for the procurement of all County goods and services its passing s hereby repealed nto force and take effect upon the same THAT By-Law no. 96-10 be and this By-Law shall come THAT 2 3 2001 - D.J. McPhai Warden. 2001 time and finally passed this 10th day of Apri . G. onald, Chief Administrative Officer day of Apri this 10th READ a second and third READ a first time SCHEDULE "A" By-Law No. 01-11 COUNTY OF ELGIN PURCHASING POLICY APRIL 2001 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 Guidelines 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 another party or parties for the supply of goods or services at a specified price. c) "Normal Operating Expenditure" means expenditures of an operational recurring 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 Council for approval 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 Quotations Orders for goods or services with a value between $5,000.00 and $49,999.00 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 Quotations Orders for goods or services with a value between $5,000.00 and $49,999.00 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 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 (3) 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 Council prior to the purchase of the 3- goods or services. n a cases, Council must authorize the purchase of goods and services prior to procurement. c) Tenders 1. All goods or services to be purchased with a value exceeding $50,000.00 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 Councilor the various Ministries. The tender advertisement 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 Warden or designate and the Department Head or designate. 4. Following a thorough review of all tenders received, the Department Head must report to Council, 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 or the public interest are in jeopardy, and where this method of purchasing would result in an over-expenditure or a non-budgeted expenditure of $2,500.00 or more. Emergency purchases require the approval of the Department Head and must be reported to Council at the next scheduled meeting 4- b) ualified Su ers Qualified suppliers are defined as suppliers of goods or specialized services 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 that 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 Council, 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 impractical to call for tenders, such as in the retention of consulting services. A minimum of three proposals must be documented on the Quotation Summary Form. The Department Head must report to Council, recommending a preferred supplier if the recommended proposal exceeds $50,000.00. 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 designate. b) Exceptions to Sec. 6, sub. sec. (a): petty cash purchases utilities, telephone, benefits, expense claims. 5- 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 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 coin in the presence of both suppliers would determine the successful bidder. e) A copy of the Quotation Summary Form shall be sent to the Director of Financial Services who shall inspect each form for compliance with the policy. The Director of Financial Services shall sign the form indicating that he/she has reviewed it. The Department Head, who authorized the purchase s ultimately responsible for the transaction 6- THE COUNTY OF ELGIN UOTATION SUMMARY FORM Department Verbal (>$1,000<=$4,999) Good or Service Requested: Written (>$5,000<=$49,999) Supplier Price Remarks I II I I I: I I I II I I II 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 County Council 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 Director of Financial Services A MUnIClpa nformation Request Ontario-Quebec Procurement Agreement Ontario must comply with the Agreement which comes the terms and conditions of nto effect 1 1995 APPENDIX Municipal Finance Branch 7T7 Bay Street Toronto ON M5G 2.E5 Fax (416) 585-6315 Municipalities throughout Ontario-Quebec Procurement M i n istry of Municipal Affairs and Housing ® Ontario ..- . -..-. Broader July Ontario and affects al of ïhis Agreement was signed in 1994 by the Government Public Sector entities including municipalities. ïhe 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. ¡ Ma this Form and Return by Fax or Please Complete Muntclpal 1.0. Number 3+000 Muntcipality be uSing the municipality wi methods procurement Agreement Please Indicate which one or combination of to comply with the terms of the Procurement Dai!y Newspaper o to adver;ise construction procurements valuec the Minis,r¡ of Municipal Affairs and Housing Advertising nform Suppliers List f the municipality IS uSing Newspape at $î 00,000 or more, the municipality must by completing the following section r Use of Electronic ïendering u n ~ Designated Daily Newspaper 7'51 (01,'95)