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CONTRACT EXECUTION POLICY
Policy Number
P2024-09
Classification
GOV
Effective Date
2025-02-18
Approval Authority
COUNCIL
Supersedes
NA
Mandated Review
2027
1. OVERVIEW
According to the Local Governance Act, no contract, instrument or other document to which a
local government is a party has any force or effect unless it is sealed with the corporate seal of the
local government and signed by the mayor and city clerk.
The City of Bathurst enters into many contracts each year, for everything from vehicle rentals to
large scale capital projects. Generally speaking, it is recognized that a municipality may only act
through its council. However, it is also recognized that some contracts are of such a routine, day
to day nature, and fall within spending authorities approved by Council, that approval to enter into
such contracts should not require the attention and approval of Council.
Through this Policy, Bathurst City Council wishes to delegate some power to approve certain
contracts to the CAO, who may delegate such authority as he or she sees appropriate. This Policy
further serves to clarify the proper approvals and authorities required in order to enter into a
contract on behalf of the City of Bathurst.
2. PURPOSE
The purpose of this Policy is to:
-
Specify the signing authority required for various types of contracts which may be entered into
on behalf of the city;
-
Specify which types of contracts require approval of council; and
-
Specify which types of contracts require legal review prior to execution.
3. SCOPE
This Policy applies to all contracts to which the city is a party, including but not limited to contracts
involving the city's departments, operating units and unincorporated entities.
This Policy does not apply to:
-
Cheques and other banking instruments;
-
Applications for funding or other in-kind assistance from other levels of government or other
organizations;
-
Internal spending authorities and related authorizations or approval processes which have
already been approved by council and do not include a separate contract document; and
-
Purchases made under the Purchasing Policy without a contract document using a purchase
card, purchase order or standing purchase order.
4. DEFINITIONS
(1)
CAO
means the Chief Administrative Officer of the City's
administration appointed for the City of Bathurst.
(2)
CITY
means the City of Bathurst
(3)
CONTRACT
means any written agreement, deed or other document which
creates an obligation or which may be binding upon the City
(4)
COUNCIL
means the mayor and councillors of the municipality
(5)
SIGNING
AUTHORITY
means an individual with authority to execute a contract on behalf
of the City of Bathurst
5. POLICY STATEMENT
No member of City administration is authorized to enter into any contract on behalf of the City
unless authority to do so has been provided for in this Policy, in another policy or by-law, or
by resolution of council.
1. EXECUTION OF CONTRACTS
a) All contracts shall be sealed with the corporate seal of the city, and signed by the Mayor
and City Clerk.
b) "City of Bathurst" is the legal entity which must be listed as a party on all contracts
entered into on behalf of the City. Internal departments such as the K.C. Irving Regional
Centre are not permitted to enter into contracts in their own names.
2. COUNCIL APPROVAL OF CONTRACTS
a) Subject to 2.b), approval to enter into a contract on behalf of the City shall require
authorization of council.
b) Council hereby delegates approval of the following types of contracts to the CAO, who
may sub-delegate such approval authority as deemed appropriate in his or her sole
discretion:
i. Facility rental agreements:
a. The Director of Parks, Recreation and Tourism shall have the authority to enter
into and execute contracts for the rental of the K.C. Irving Regional Centre if the
following conditions are met:
i) The term of the rental agreement is for a period of thirty (30) days or less.
ii) Form contracts approved by the City Solicitor are used. Any changes in the
form contracts must be approved by the City Attorney.
iii) The rental agreements follow the Tariff of Fees Policy.
ii. The awarding of contracts for the purchase of goods or services through any
procurement method, within spending authorities below the level of council as
established under the City's Purchasing Policy, and provided that such purchases
are in compliance with the Purchasing Policy; and
iii. Lease or rental agreements for equipment or vehicles.
c) Despite 2.b),
i. in accordance with the Land Disposition Policy, any agreement for the acquisition
or disposition of land shall always require council authorization via by-law or
resolution, regardless of the value;
ii. any contract may be brought forward to council for approval when deemed by the
City Manager to be in the best interests of the city; and
iii. any contract prescribed by legislation to be made by council shall only be approved
by council.
3. MANDATORY LEGAL REVIEW
a) All contracts shall be reviewed by the Legal Department prior to being signed or
presented for signature, taking into consideration:
i. Financial obligations on the city;
ii. Level of risk to the city;
iii. Whether the contract is of a routine nature;
iv. Whether the contract is in a standard-form previously approved by the Legal
Department; and
v. Public interest/stakeholders involved
b) In all circumstances, client departments shall be responsible for ensuring that the
business terms of the contract accurately reflect what has been agreed to between the
client department and the other party to the contract, and that the contract does not
conflict with any other existing city obligations or agreements. Unless the Legal
Department has been involved in the negotiations leading up to the final contract, or
has been asked to review the terms of a contract prior to seeking final approval, its role
is to ensure that contracts are approved as to form and authority in order to be executed
by the Mayor and City Clerk.
c) Whenever possible, client departments should contact the Legal Department as early
as possible in the contract negotiation/drafting process so that any issues can be
addressed without causing delay to the project.
4. PROCEDURES
a) For contracts which require council approval, client departments are responsible for
informing the Legal Department when such contracts need to be drafted or reviewed
for execution.
b) Contracts which are ready for execution must be sent by the responsible department to
the Legal Department with the following information attached:
i. A copy of the council approval resolution, if applicable;
ii. A brief covering memo explaining the purpose of the contract; and
iii. Sufficient final hard copies so that each party to the contract shall have their own
fully-executed hard copy.
c) In rare circumstances, electronic signatures may be acceptable in lieu of original hard
copies, subject to approval of the Legal Department.
d) Contracts must be executed by the other party prior to being presented to the Mayor
and City Clerk for signature, unless otherwise agreed to by the Legal Department.
e) A fully-executed original copy of each contract shall be retained by the City Clerk's
Office. Client Departments will receive a copy of the fully-executed contract for their
records.
6. RELATED POLICIES
- Purchasing Policy
-
Tariff of Fees Policy
7. RELATED LEGISLATION
- Local Governance Act S.N.B. 2017, c. 18
8. REVISION HISTORY
Date
(mm/dd/yyyy)
Description
of Change
Sections
Person who
Entered Revision
(Position Title)
Person who
Authorized
Revision (Position
Title)