City of Victoria - Tenders & Purchasing: Purchasing Policy

Transcription

1 Page 1 of 5 Tenders & Purchasing > Purchasing Policy NO CIVIC EXPENDITURES BYLAW A BYLAW OF THE CITY OF VICTORIA The purpose of this Bylaw is to consolidate, clarify, and modernize into a new bylaw that part of the Council Bylaw dealing with civic expenditures. Contents PART 1 INTRODUCTION 1. Title 2. Definitions PART 2 CIVIC EXPENDITURES 3. Purchases For City Departments 4. Emergency And Single Source Purchases 5. Minor Expenditures 6. General Tendering Procedures 7. Tenders/RFP s That Exceed Budget 8. Identical Tenders 9. Financial Security 10. Disposal Of Surplus PART 3 GENERAL 11. Repeal Under its statutory powers, including Section 176 of the Local Government Act, the Municipal Council of The Corporation of the City of Victoria enacts the following provisions: PART 1 INTRODUCTION 1. Title This Bylaw may be cited as the "CIVIC EXPENDITURES BYLAW". 2. Definitions In this Bylaw "Department Head" means the head of a City Department; "Director" means the City s Director of Corporate Services; "Expenditure" means an expenditure made in respect of a purchase;

2 Page 2 of 5 "Local" means located within the Capital Regional District; "Manager, SMS" means the City s Manager of Supply Management Services; "Purchase" means the purchase of goods, equipment or services; "Request for Offer (RFO)" means a competitive process for an intended expenditure by the City, which is normally less than $10,000.00; "Request for Proposal (RFP)" means a competitive process for an intended expenditure by the City of more than $10, and for which only sealed proposals are invited and accepted, but are not publicly opened; "Tender" means a competitive process for an intended expenditure by the City of more than $10,000.00, and for which only sealed offers are invited and accepted, and are publicly opened. PART 2 CIVIC EXPENDITURES 3. Purchases For City Departments 1. An intended purchase for a City Department first must be authorized by: a. a Purchase Order prepared by the Manager, SMS; and b. if applicable, an agreement written or approved by the City Solicitor. 2. Subject to Section of the Local Government Act, the City may enter into an agreement with a supplier for goods, equipment, or services only if that gives the City the best value in relation to quality, service, and price, compared to the value given by other suppliers. 4. Emergency And Single Source Purchases 1. A Department Head may negotiate a purchase for that Department without inviting offers from suppliers if: a. the Department Head has given written approval for the purchase to the Manager, SMS; and b. the Department Head and the Manager, SMS, jointly determine that: i. there exists only a single supplier from whom the purchase can be made; the circumstances in which the purchase is required are extraordinary; or i the circumstances in which the purchase is required involve an emergency. 2. A purchase made under Subsection (1) requires the approval of: a. the Director if it is more than $10,000.00; b. the City Manager if it is more than $50,000.00; or

3 Page 3 of 5 c. City Council if it is more than $100, An accounting of single source or emergency purchases be received by the Finance Standing Committee or, in its absence, by Committee of the Whole, twice per year. 5. Minor Expenditures 1. Petty Cash The Manager, SMS, may maintain petty cash funds that are used for minor purchases. 2. Purchasing Cards a. The Manager, SMS, may maintain a Purchasing Card program for purchases up to $ each. The Manager, SMS, with approval of the respective Department Head, may approve an increase in the transaction limits, based on the individual user s requirements. b. The responsible Department Head must authorize all purchases made under the Purchasing Card program. c. The Manager, SMS, must review the performance of the Purchasing Card program on a regular basis, to ensure that the recorded purchases comply with the provisions of this Bylaw. 6. General Tendering Procedures 1. For an intended expenditure by the City of less than $10,000.00, the Manager, SMS: a. must attempt to obtain offers from at least three (3) suppliers; and b. must issue a Purchase Order to the successful supplier and, if applicable, require the supplier to enter into an agreement that is written or approved by the City Solicitor, with the City. 2. For an intended expenditure by the City of more than $10, but less than $100,000.00, the Manager, SMS: a. must invite and accept only sealed tenders or RFP s from potential suppliers, and initial the tenders when they are opened; or i initial the RFP s upon opening; or b. may authorize the use of Request for Offers for purchases in excess of $10, but less than $100, if it is found to be in the City's best interest to do so; and c. in either case must issue a Purchase Order to the successful supplier and, if applicable, require the supplier to enter into an agreement that is written or approved by the City Solicitor, with the City. 3. For an intended expenditure by the City of more than $100, but less than $200, the Manager, SMS,: a. must invite and accept only sealed tenders or RFP s from potential suppliers; b. and one other employee from Supply Management Services must: initial the tenders when they are opened; or i initial the RFP s upon opening; and c. (i) must make a recommendation for the City Manager s approval; and when approved, issue a Purchase Order to the successful supplier, and if applicable, may require the supplier to enter into an agreement, written or approved by the City Solicitor, with the City. 4. For an intended expenditure by the City of more than $200, the Manager, SMS,: a. must invite and accept only sealed tenders or RFP s from potential suppliers; b. and the Director must: initial the tenders when they are opened; or

4 Page 4 of 5 i initial the RFP s upon opening; b. must make a recommendation for the City Manager s consideration, who in turn will forward the recommendation for consideration and approval by Committee of the Whole and Council; and c. must issue a Purchase Order to the successful supplier approved by Council, and, if applicable, require the supplier to enter into an agreement, written or approved by the City Solicitor, with the City. 5. A written agreement between a supplier and the City is required under this section in the following circumstances: a. if requested by the supplier; b. for construction contracts in the amount of $200,000 and over; c. if a Request for Proposal and subsequent successful proposal do not contain sufficient elements, such as specifications, conditions, warranties or indemnities, to constitute a satisfactory contract for either party; d. if there is already a contract, such as the Professional Services Agreement, between the City and the supplier, but there are changes to that contract for the particular expenditure. 7. Tenders/RFP s That Exceed Budget 1. A tender/rfp that is accepted under the procedures set out in Section 6 must not exceed the amount that is included for that purpose, specifically or generally, in a budget approved by Council. 2. The Manager, SMS, must refer back to the Department Head for which the tender/rfp process was undertaken under Section 6, a tender/rfp that would otherwise be accepted as a successful tender/rfp, but that exceeds the amount referred to in Subsection (1). 3. The Department Head to whom the tender/rfp is referred under Subsection (2) must take one of the following actions: a. recommend rejection of the tender/rfp; b. jointly with the Director make minor budget amendments to the Department Head s budget and then further deal with the tender/rfp under the procedures set out in Section 6; or c. for the purpose of accepting the tender/rfp as the successful tender/rfp, request the approval of the City Manager, Committee of the Whole, and Council for a transfer of extra funding from other items included in a budget approved by Council. 8. Identical Tenders 1. If identical lowest tenders are received by the City, each of which are less than $100,000.00, the Manager, SMS, shall take into consideration the location of the suppliers, with local suppliers being given preference, and this must be clearly stated in every call for tenders. 2. The successful tender must be chosen by the drawing of lots under the Director s supervision if identical lowest tenders, each of which are less than $100,000.00, are made by: a. two (2) or more local suppliers; or b. suppliers who are not local. 3. The City Manager must decide whether any tender should be accepted as the successful tender if the City receives identical lowest tenders each of which are more than $100, but less than $200, If the City receives identical lowest tenders each more than $200, the City Manager must make a recommendation for consideration and approval by Committee of the Whole and Council. 9. Financial Security The Manager, SMS, may require financial security from potential suppliers when the Manager, SMS, considers that to be in the City s best interest.

5 Page 5 of Disposal Of Surplus The Manager, SMS, must dispose of all goods and equipment for which a City Department no longer has a use, by any method the Manager, SMS, considers to be in the City s best interest, including without limitation, public auction, public tender, trade, negotiated sale, or transfer to another Department. PART 3 GENERAL 11. Repeal Bylaw No , the Council Bylaw, is repealed. READ A FIRST TIME the day of 20. READ A SECONDTIME the day of 20. READ A THIRDTIME the day of 20. ADOPTED by a 2/3 majority of council on the day of 20. DIRECTOR OF CORPORATE SERVICES MAYOR This website created, maintained and operated by the City of Victoria #1 Centennial Square - Victoria, BC V8W 1P6 Telephone: (250) Facsimile: (250) Last Update - January 13, 2004 Privacy Statement webmaster@city.victoria.bc.ca