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2 King St. E., P. O. Box 70, St.-Gharles, ON POM 2W0
PURCHASING POLICY
Policy Record
lntent
To govern and stand ardize the purchase of goods and services by the Municipality of St.-
Charles. This Policy establishes the authority and sets out the methods by which goods
and services will be purchased and disposed of by and I or for the Municipality of St.-
Charles.
Statement
Section 27O (1) of the Municipal Act, 2001, S.O. , 2001, c. 25 as amended, requires all
municipalities and local boards to adopt and maintain a Policy with respect to its
procurement of goods and services.
The Municipality of St.-Charles will acquire goods and services in a manner that
complies with this Policy and appropriate purchasing principles for the public sector,
reflects a high standard of business ethics, does not favour or discriminate, is cost
effective and results in best value for the Municipality.
Policy No.: FIN-002
Effective Date:
October 18,2023
Replaces:
By-Law 2005-08 Procurement
Procedure By-Law; By-Law
201 1 -49 Amendi ng By-Law
2005-08; P-39 Credit Gard
Policv
Last Review Date: October 18,2023
Approval: By-Law2023-48
Next Review Date: October 2028
Reference: Municipal Act, 2001, S.O. 2001, c.25, Section 270 (11
Policy
1.
GENERAL PROVISIONS
1.1 The purpose of this Policy is to
a) Ensure the Municipality conducts fair, objective, transparent and
consistent purchasing practices;
b) Maintain the integrity of the procurement process by ensuring that,
wheneverpossible, competitive methods of procurement will be utilized
to obtain Best Value for the Municipality;
c) Clearly define the circumstances which allow for non-competitive
procurement;
d) Ensure that the procurement process is conducted in a manner that enables
departments of the Municipality to operate efficiently and effectively;
e) Protect the interests of the Municipality, public and persons participating in
the procurement process by providing a clear statement of how Goods and
Services will be acquired;
0 Clearly define the roles and responsibilities of those involved in the
procurement process;
g) ldentifies signing authorities;and,
h) Outline the process for disposing of Surplus Goods.
2.
DEFINITIONS OF THIS POLICY
2.1 ln this Policy:
a) "Agreement to Bond" means an insurance agreement by which a third
party (a surety) guarantees that if a Contract is awarded to the Bidder, the
Bidder is capable of furnishing Bonds as required;
b) "Best Value" means the optimal value balance of cost and performance
of Goods orServices having consideration for quality, timing, efficiency,
and lifecycle costs;
c) "Bid" means an offer or submission from a Bidder or Proponent in
response to a Bid Request;
d) "Bid Bond" means an insurance agreement, accompanied by a
monetary commitment, by which a third party (a surety) accepts liability
and guarantees the Bidder will notwithdraw the Bid. The Bidder will furnish
Bonds as required, and if the Contract is awarded to the Bidder, the Bidder
will accept the Contract as Bid, or else the surety will pay a specific
amount;
e) "Bid lrregularity" means a deviation from the requirements of a Bid
Request, as set out in Schedule "8" of this Policy;
f) "Bid Request" means a solicitation by the Municipality in a form as
specified in Section 6 of this Policy;
g) "Bidder" means a person or entity that submits a Bid in response to a Bid
Request;
h) "Bond" means a form of financial protection against damages; a binding
agreementexecuted by a Contractor and a third party (a surety) to guarantee
the performance of certain obligations or duties to the Municipality;
i) "Call for Bid" means a formal request for an offer based on the terms and
conditions of the Municipality's bid documents. A Call for Bid may be in the
form of a Request for Quotation (RFQ), Request for Tender (RFT), Request
for Proposal (RFP), Request for Prequalification (RFPQ), Request for
lnformation (RFl), Expression of lnterest (EOl) or Offer to Sell (OTS);
j) "Contract" means any agreement, regardless of form ortitle, forthe purchase
of Goods or Services in return for money or other consideration;
k) "Contractor" means the selected Bidder or Proponent to whom the Contract
for the purchase of Goods or Services is awarded and executed under the
terms and conditions of the Contract;
l) "Department Heads" means a Department Head, Municipal Clerk, Municipal
Solicitor, Fire Chief, Treasurer or respective Designate authorized by the CAO,
who has responsibility for a specific business unit or department of the
Municipality;
m) "Designate" means a person authorized by the CAO or respective
Department Heads to act on his or her behalf, for the purpose of this Policy;
n) "Goods" means goods of all kinds, including both tangible and intangible
goods, and shall include supplies, materials, equipment, structures, and
fixtures to be delivered, installed and/or constructed, and licenses;
o) "lrrevocable Bid" means a Bid or Proposal, whereby the Bidder and the
Municipality are bound by a contractual obligation' under both expressed
terms of the Bid Request and implied terms based on the laws of competitive
procurement. The inclusion of Bid deposit or Bid Bond in a Bid Request is the
means or normal method by which the Municipality obtains an lrrevocable Bid.
p) "Proponent" means a person or entity who submits a response to a Call for
Bid;
q) "Proposal" means the submission received or response to a Call for Bid,
r) "Purchasing Review Committee" means the committee consisting of the
Treasurer and respective Department Heads and other such persons as
designated by the CAO or respective Department Heads that would be
assembled to collectively review Bid lrregularities or other matters pertaining
to a procurement process with the objective of recommending a solution or
otherwise resolving an issue;
s) "Purchase Order" means the Municipality's written document to a Supplier
or Contractor formalizing all the terms and conditions of a Contract;
t) "Real Property" means land and its permanently affixed buildings or
structures;
u) "services" means services of all kinds, including, but not limited to, labour,
construction, maintenance, and professional and consulting services;
v) "Selection Committee" means a committee established as part of the RFP
process and made up of Municipality staff and such others as selected by the
Municipality, with a purpose to establish RFP evaluation criteria and review
and evaluate Proposals;
w) "supplier" means the selected Bidder or Proponent to whom the Contract for
the purchase of Goods or Services is awarded and executed under the terms
and conditions of the Contract;
3.
APPLICATION
3.1
This Policy shall apply to staff in all departments of the Municipality and shall
be adopted in principle, by affiliate agencies, boards, and commissions of the
Municipality.
The acquisition of Goods or Services or disposal of Surplus Goods shall be
authorized only when in compliance with this Policy.
3.2
4.
RESPONSIBILITIES
All employees of the Municipality have a stewardship responsibility. All
employees shall ensure that funds are used appropriately and for intended use.
All employees shall exercise due diligence when generating, reviewing, and
approving transactions that commit to the expenditure offunds.
4.1
4.2 The Finance Department shall have the authority and be responsible for
a) Overseeing all procurement activities of the Municipality;
b) Providing advice, guidance and related services that may be required by
departments for the purposes of fulfilling their procurement needs;
c) Developing, maintaining, and continuously improving detailed processes,
systems, templates, and practices to be used in the procurement process;
d) Providing training for department staff responsible for acquiring Goods and
Services;
e) Determining the appropriate method for acquiring Goods or Services;
f) Managing formal Bid Requests including notification, receipt, opening, and
compliance with stated terms andconditions;
g) Establishing project specific terms and conditions for Bid Requests and
Contracts in consultation with department staff and Municipality Solicitor;
h) Standardizing Goods and Services in collaboration with departments, when
and where appropriate;
i) Disposing of Surplus Goods;
j) Reporting to Council for all capital items approved by the CAO and / or
Treasurer or any operating expenditures over $10,000;
k) Ensuring Municipality staff complies with this Policy and any non-compliance is
reported, in writing, to the respective, Department Heads and the CAO; and,
l) Ensuring no procurement activity or decision is contrary to this Policy
The Department Heads (DH) shall be responsiblefor:
a) Ensurlng that all purchases are subject to budget limitations and any budget
4.3
4,4
overages must be reported to council in afollow-up report;
b) All department procurement activity and authorization within the limits as
stated in Schedule "C" of this Policy;
c) Ensuring staff involved in procurement activity receive appropriate training;
d) Ensuring sufficient funding has been authorized byCouncil;
e) Preparing specifications, quantity requirements and scope of work to be used
in the procurement of Goods and Services;
0 Preparing departmental budget and related procurement requests;
g) Monitoring Contractexpenditures;
h) Receiving, accepting, and authorizing payment of Goods or Services;
i) Managing Contracts and documenting performance evaluation;
j) Ensuring that all invoices including all backup documentation are submitted to
the Finance Department within fifteen (15) days of receipt of goods or services;
k) Ensuring departmental staff comply with this Policy and any non-compliance
is reported, in writing, to the Department Head, the Treasurer and the, CAO;
and,
l) Ensuring no procurement activity or decision is contrary to this Policy.
The Chief Administrative Officer (CAO) shall be responsible for:
a) Ensuring that all purchases are subject to budget limitations and any budget
overages must be reported to council in afollow-up report;
b) All procurement activity and authorization within the limits as stated in
Schedule "C" ofthis Policy;
c) Ensuring Department Heads comply with this Policy and any non-compliance
is reported, in writing, to Council;
d) Providing additional restrictions concerning procurement activities where
such actions are considered necessary and in the best interest of the
Municipality; and,
e) Taking appropriate action when non-conformances are of significant nature or
recurring including disciplinary actions as per the Employee Policy Manual
5.
RESTRICTIONS AND EXCEPTIONS
The open and competitive procurement procedures set out in this Policy shall not
apply to the purchase of those items listed in Schedule "A", or as otherwise listed
in this Policy.
5.1
5.2
5.3
5.4
6.1
Purchases shall be made only when funds are available in the Budget except
when an extraordinary circumstance (Emergency) exists as determined by the
CAO and Treasurer.
No Contract for Goods or Services may be divided into two (2) or more parts to
avoid the application of the provisions of this Policy.
No Contract shall be awarded to any person, company, or corporation who or
which has a claim, demand, action, or other legal proceeding against the
Municipality or against who the Municipality has a claim, demand, action, or other
legal proceeding with respect to any previous or existing Contract, except in such
circumstances as deemed necessary by the CAO.
6.
CAPITAL ASSETS
Capital Assets are tangible assets that are purchased, constructed, developed, or
otherwise acquired and:
a) Are held for use in the production or supply of goods, the delivery of services
or to produce program outputs;
b) Have a useful life extending beyond one fiscal year and are intended to be used
on a continuing basis;
c) Are intended to be used on a continuous basis not intended for resale in the
ordinary course of operations;
d) Capital assets also include betterments. Betterments are expenditures relating
to the alteration or modernization of an asset that appreciably prolong the
item's period of usefulness or improve its functionality;
e) To be considered an asset the costs or combined civil infrastructure systems
(built assets such as roads, bridges, sewers, water, transits, parks, etc.) with a unit
cost of $25,000.00;
f) All other assets, the costs or combined cost must be greater than $5,000.00;
6.2
g) All land acquisitions must be capitalized regardless of itscost;
h) For further clarification, tangible capital assets include:
. land, buildings (including leasehold improvements), roads, bridges,
streetlights, vehicles, equipment (office, heavy machinery, technology items
including hardware and software, environmental equipment, recreational
equipment, fire department equipment, etc.), parks, storm sewers, sanitary
sewers, landfill improvements, parking lots, drains and assets acquired by
capital leases or by donations;
i) For further clarification, capital assets do not include:
. intangible assets such as copyrights, trademarks, patents, easements, and
rights of way;
. obsolete and surplus items;
. museum and gallery collections, other works of art.
All capital expenditures require the approval of Council either through resolution
or adoption of the annual budget before any expenditures or commitment are
made.
a) Department Heads shall determine if and why the capital expenditure is
necessary and financially viable or cost effective. Reasons may include but are
not limited to:
i.
Related to growth;
ii. Renewalprogram;
iii. Part of a strategic objective;
b) Although capital requests can be made at any time, Department Heads are
expected to use all reasonably foreseeable capital requirements in the annual
budget. The annual budget identifies the magnitude of proposed capital
spending for the coming year;
c) The finance department may assist Department Heads to draft capital request
reports to Council which include consideration on the necessity of the capital
expenditure, the alternatives including but are not limitedto:
i. Repair Existing;
ii. Rent;
iii. Capital Lease;
iv. Purchase;
v. Subcontract;
as well as the financing alternatives including but are not limited to: Debenture
or L.T. Debt
i. Municipal Bonds;
ii. Reserves;
iii. Property Taxation;
6.3
iv. Other Sources: Grants, Public Donations, etc.
The capitalization of assets requires that Department Heads and / or Treasurer:
a) Ensures that all costs required to make a capital asset operational have been
recorded. Costs to capitalize include purchase price and other acquisition costs
such as installation costs, design and engineering fees, legal fees, survey
costs, site preparation costs, freight charges, transportation insurance costs
and duties. The cost of a constructed asset would normally include direct
construction or development costs (such as materials and labour), and
overhead costs directly attributable to the construction or development activity
(such as the costs of leased space used solely for the construction or
development activities);
b) Ensures that procedures are in place to differentiate between "betterments"
which are capitalized, and "repairs and maintenance" which are expensed.
Betterments improve the functionality or increase the useful life of an asset
while repairs and maintenance primarily maintain the functionality of the asset.
Where a cost cannot easily be differentiated between a repair and a
betterment, the cost should be expensed in respecting theaccounting principle
of conservatism;
c) Ensures that when capital assets are sold or traded-in, the historical cost and
accumulated amortization amounts relating to the particular capital asset are
removed from the appropriate general ledger accounts and a gain or loss on
disposal is recognized to the extent that the asset's net book value differs from
the sale proceeds or from the trade-in value;
d) Distinguishes between a capital lease and an operating lease,
e) Ensures that when capital assets become obsolete, impaired and / or are
removed from service, and the long-term expectation is that the assets no
longer have value or use to the municipality, the asset will be written down from
the net carrying amount to its net realizable value. lf the capital asset is
subsequently returned to service, the asset must not be "written up" to its book
value. Only betterments that have been made to bring the asset back into
service should be added to the bookvalue;
f) Estimates the useful life of capital assets on a consistent basis; and,
g) Applies an appropriate amortization methodology in a rational and systematic
manner, appropriate to the nature of the capital asset and its use by the
department. This methodology should be developed by assettype.
A leasehold improvement is a betterment made to a leased property. Betterments
are expenditures relating to the alteration or modernization of an asset that
appreciably prolong the item's period of usefulness or improve itsfunctionality.
6.4
6.5
The cost of property, equipment and other capital assets is essentially a long-term
prepayment of an expense in advance of the use of the asset. As the economic
service life of the asset expires, the cost of the asset is systematically allocated to
operations as an expense called "amortization":
a) Periodic amortization expense should be an allocation of the historical cost of
the asset less expected salvage value, to operations in proportion to the
economic benefits received each period from the use of the asset;
b) The service life of an asset should be determined on a basis that is linked with
the expiration of the economic benefits. For example, service life may be
measured in terms of years; total units of output; or total hours of operating
time;
c) Where the appropriate measure of service life is "in years", it is recommended
that the amortization of assets be on a straight-line basis for administrative
simplicity,
d) Departments Heads are in the best position to estimate the expected life of an
asset and Key Fiscal lndicator related to each asset or class of asset shall be
set. The maximum amortization period should be limited to 40 years. As a
guideline, assets should be amortized over the following life spans:
i. The original cost of land is not amortized;
ii. Buildings: 2O to 40 years;
iii. Roads: 10 to 40 years;
iv. Bridges: 20 to 30 years;
v. Streetlights: 20 to 30 years;
vi. Vehicles: 5 to 20 years;
vii. Machinery and equipment: 3 to 20 years;
viii. Parks and Wharfs: 20 to 40years;
ix. Storm Sewers: 30 to 40 years;
x. Sanitary Sewers: 30 to 40 years;
xi. Landfill: 20 to 40 years;
xii. Parking Lots: 20 to 30 years;
xiii. Leasehold improvements: over the useful life of the improvement or the
lease term, whichever is shorter. The lease term would include any renewal
option periods where extension of the lease isexpected; and,
xiv. Betterments: over the useful life of the asset to which the improvement was
made or the useful life of the betterment if significantly shoder;
e) Amortization shall be recorded annually and pro-rated to the first day of the
month following the month that the asset was put into service;
f) The amortization method and estimate of the useful life of the remaining
unamortized portion of a tangible capital asset should be reviewed on a regular
basis and revised when the appropriateness of a change can be clearly
demonstrated.
6.6
6.7
Management shall monitor actual and projected expenditures on a continuous
basis against the approval amount and the current conditions of the capital project.
Any significant differences will be brought to the attention of Council. Significant is
defined as estimated to exceed 1Oo/o of the approved costs. A change order
(changed purchase order) is required for the additional scope of work.
Department Heads shall ensure that the Capital Asset purchased meets
expectation (quality control) and documentation with authorization of such is
required before releasing final payment.
I
7, STANDARD PROCUREMENT METHODS
7.1
The method of purchasing Goods and Services shall be in accordance with the
standard procurement methods described in this section as recommended by the
Treasurer and shall be advertised, reported, approved and the Contract executed
in accordance with Schedule "C" ofthis Policy. The procurement limits are based
on annual purchases of the same product or services. No requirement for goods
and services may be divided into two or more parts to avoid the provisions of this
policy. ln the case of multi-year supply and/or service contracts, for the purpose of
determining authorized spending limits in this policy, the value of the procurement
shall be deemed to be the total anticipated annual expenditures over the potential
life of the contract including any extensions or renewals.
LOW VALUE PURCHASE ("LVP")
a) A LVP may be used for the procurement of Goods or Services not covered
under an existing Contract and having a purchase value up to the limit as stated
in Schedule "C" of this Policy;
b) The respective Department Head shall authorize specific individuals to make
LVP and assign a limit of spending authority;
c) These purchases may be made utilizing a Purchase Order, petty cash, or
Municipal Purchasing Card;
d) These purchases are within the discretion of the respective Department Heads
who shall also determine the need for competitive quotes and / or that
purchases demonstrate good value for the Municipality;
e) LVP may be facilitated by the Finance Department at the request of the
department.
s.
REQUEST FOR QUOTATION ("RFQ")
10.
a) A RFQ is used for the procurement of Goods or Services where the Municipality
has defined the requirements, a clear solution exists, and the estimated
purchase value is within the limits as stated in Schedule "C" of this Policy;
b) The lntention is to award to the lowest compliant Bidder, although the lowest
orany bid may not necessarily beaccepted;
c) Departments may directly request quotations for Goods or Services with a
purchase value up to the limit as stated in Schedule "C" of this Policy.
Purchases in excess of this limit must be administered by the Finance
Department;
d) Public advertising is discretionary up to the limit as stated in Schedule "C" of
this Policy.
REQUEST FOR TENDER ("RFT")
a) A RFT is used to obtain lrrevocable Bids for the procurement of Goods or
Services and where the Municipality has defined the requirements, a clear
solution exists, and estimated value is within the limits as stated in Schedule
"C" of this Policy;
b) The intention is to award to the lowest compliant Bidder without negotiation
(subject to Section 7 of this Policy), although the lowest orany Bid may not
necessarily be accepted;
c) A RFT shall be undertaken and administered by the Finance Department;
i. An evaluation plan shall be set up prior to the issuance that contains:
ii. EvaluationPanelMember;
iii. Evaluation Process;
iv. Criteria and Weighting;
d) Notice of a RFT shall be at a minimum by public advertising including the
municipal web site, Biddingo, and if deemed appropriate newspapers;
e) Bids in response to an RFT shall be received by the Finance Department. At a
time specified within the Bid Request on the closing date, the Bid envelope
shall be opened publicly, and prior to internal review, each Bidder's name and
unofficial Bid total amount shall be publicly read.
REQUEST FOR PROPOSAL ("RFP")
a) An RFP is used for obtaining competitive Proposals in situations where the
requirement cannot be expressly stated or defined and/or where a solution is
requested dependent on:
i. the effectiveness of the proposed solution based on several stated criteria
11
12.
as opposed to the price alone;
a possibility existing where negotiation with one or more Proponents may
be required with respect to any aspect of the Contract; or,
the precise scope of Goods orServices is not known, or not definable, and
it is expected thatthe Proponent will further define them;
b) An evaluation plan shall be set up prior to the issuance that contains
i. EvaluationPanelMember
ii. Evaluation Process
iii. Criteria and Weighting
COOPERATIVE PU RG HASI NG
a) A Department Head and the CAO, jointly, may choose to participate in
cooperative purchasing initiatives with other levels of government, other
municipalities, members of the broader public sector, government agencies or
public authorities where, in their opinion, it is in the best interests of the
Municipality to do so and where the purpose, goals and objectives of this Policy
are substantially complied with;
b) The policies of the organization calling the cooperative Bid Solicitation are to
be the accepted policy for that particular purchase.
13. NEGOTIATION
13.1 Negotiation may be used for the procurement of Goods or Services where the
proponent meets quality expectation and:
a) Where no Bids were received in a proper, publicly issued Bid Request,
b) Where only one (1) Bid is received; it exceeds the amount budgeted forthe
purchase; and the Bidder is willing and prepared to enter into negotiations with
the Municipality;
c) Where instructions within a Bid Request expressly allow for negotiations to
occur with the low Bidder;
d) Where the highest evaluated Proponent upon completion of the evaluation, and
as a condition of award. lf a negotiated settlement cannot be reached, the
Municipality may proceed to negotiate with the next highest evaluated
Proponent;
e) Where an Extraordinary Circumstance (Emergency) exists as determined by
CAO and Treasurer;
f) Where a Sole Source or Single Source purchase is conducted; or,
g) Where authorized by Council to do so
14
EXTRAORDI NARY CI RCUMSTANC E (EMERGENCY)
PURCHASES
14.1 Notwithstanding the provisions of this Policy, an Extraordinary Circumstance
(Emergency) purchase may be conducted when an event or circumstance occurs
that is determined by the respective Department Head and approved by the CAO
and Treasurer to be a risk to:
a) Public Health;
b) Essential services of the Municipality;
c) Thewelfare of persons or of public propertVi or,
d) The security of the Municipality's lnterests and the occurrence requires the
immediate delivery of Goods or Services, and time does not permit a
competitive Bid Request.
14.2 An Extraordinary Circumstance (Emergency) purchase shall be authorized within
the limits as stated in Schedule "C" of this Policy.
14.3 With the exception of a Low Value Purchase, the Treasurer shall approve and
facilitate all Extraordinary Circumstance (Emergency) purchases. Where
impractical, a follow-up purchase requisition shall be submitted to the Finance
Department.
14.4 Where an Extraordinary Circumstance (Emergency) purchase exceeds the limits
of the CAO and requires authorization of Council, the CAO shall have authority to
approve such purchase and a follow-up information report to council shall be
completed.
15. SOLE SOURCE PURCHASES
15.1 A Sole Source purchase may be conducted for Goods or Services without a
competitive Bid Request:
a) Where the required Goods or Services are covered by an exclusive right such
as a patent, copyright, exclusive license, or distributorship;or,
b) Where a statutory ormarket-based monopoly exists
15.2 A Sole Source purchase shall be authorized within the limits as stated in Schedule
"C" of this Policy.
15.3
With the exception of a Low Value Purchase, the Finance Department shall
approve and facilitate all Sole Source purchases.
16. SINGLE SOURCE PURCHASES
16.1 A Single Source purchase may be conducted for Goods or Services without a
competitive Bid Request where:
a) The Goods or Services required are in short supply due to market conditions;
b) To ensure compatibility with previously acquired Goods and Services; and
there are no reasonable alternatives, substitutes or accommodations;
c) To avoid violating warranties and guarantees of existing Goods and Services;
d) Standardization of Goods or Services is beneficial to the Municipality with
respect to operation, functionality, and service capacities Municipality; and
such purchases have previously been acquired through a competitive Bid
Request; and a defined timeline has been established to review such
standardization;
e) The amendment to an existing Contract would be more cost effective and
beneficial to the Municipality;
f) Where, for reasons of security or confidentiality, it is in the best interest of the
Municipalityto do so;
g) No bidders have responded to a proper, publicly issued Bid Request;
h) Goods are purchased for testing or trial use and there is a clearly established
deadline forthe testing or trial period that does not exceed 12 months;or,
i) The Municipality has a rental Contract with a purchase or rental extension
option and such purchase or rental extension is beneficial to the Municipality;
16.2 A Single Source purchase shall be authorized within the limits as stated ln
Schedule "C" of this Policy.
16.3 With the exception of a Low Value Purchase, the Finance Department shall
approve andfacilitate all Single Source purchases.
17. UNSOLICITED BIDS
17.1 An Unsolicited Bid or Proposal means Bid or Proposal submitted by a Supplier or
Contractorin the absence of a Bid Requestfrom the Municipality, which may be
submitted in response to a perceived need but not in response to a Bid Request.
17.2 An Unsolicited Bid or Proposal received by the Municipality shall be reviewed by
theTreasurer. Any procurement activity resulting from the receipt of an unsolicited
Bid or Proposal shall comply with the provisions of the Single Source or Sole
Source requirements of this Policy.
18. BID IRREGULARITIES I REJECTION
18.1 Any Bid lrregularities shall be addressed in accordancewith Schedule "B" of this
Policy.
18.2 lf a formal competitive Bid contains a Bid lrregularity, the Treasurer may, at his or
her discretion, refer the issue to the Purchasing Review Committee to determine
acceptance or rejection of the Bid.
18.3 The Treasurer shall reject a Bid if it is determined that:
a) The Bidder has not complied with and 1 or satisfactorily performed the
requirements of a previous Contract;or,
b) The Bidder does not have sufficient ability, experience, capital, or plant to
execute the Contract and to do so within the time stated.
19. METHOD OF ENTERING INTO A PURCHASING AGREEMENT
19.1 Credit Cards are issued to Department Heads and the Mayor where appropriate
and at the discretion of the Finance Department and CAO, to allow for an efficient
melhod of acquiring Low Value Purchases. Credit Cards are issued subsequent to
have read, understood and agreed to the waver form in Schedule "D":
a) The Credit Card shall not to be used for expenditures of a personal nature;
b) Purchases made by Purchasing Card are subject to the requirements of this
Policy and the Purchasing Card Policy and Procedures, as amended from time
to time;
c) Any abuse or misuse of the Municipality credit cards may lead to the revocation
of the credit card privileges and the employee may be subject to discipline, up
to and including termination.
19.2 Purchase Orders are required on all purchases exceeding the Direct Purchase
Limit:
a) Standing purchase orders are used for goods or services purchased on an
ongoing basis or on a contractual basis;
b) Standing purchase orders are issued at the beginning of the year or at the
beginning of the contract to ensure that funds are committed for the year or
length of contract and not available for any other use;
c) Purchase orders are required even when a contract exists
19.3 Contracts shall be required for the purchase of Goods or Services and executed
by a written agreement in accordance with limits as stated in Schedule "C" of this
Policy or in situations where circumstances warrantsuch:
a) The respective Department Head shall be responsible for monitoring Supplier
and Contractor performance and documenting evidence of such performance
in accordance with the Municipality's Vendor Performance Policy, as amended
from time to time.
20. CONTINGENCYMANAGEMENT
20.1 Where the expenditure limit of a Contract that required Council approval is
expected to exceed the awarded amount:
a) The respective Department Heads may approve the overage so long as the
amount of the cumulative overages for the Contract is less than ten percent
(1 0"/o) of the value of the Contract, and the project remains within the approved
project budget;
b) The CAO may approve the overage so long as the amount of the cumulative
overages for the Contract is less than fifteen percent (15'lo) of the value of the
Contract, and the project remains within the approved project budget.
20,2 Where the expenditure limit of a Contract that required Council approval is
expected to exceed the awarded amount by fifteen percent (15'lo) or the project
is no longer within project budget, the matter will be referred to Council for
consideration.
2'1. PAYMENTS
21.1 The Municipality of St.-Charles abides by a Net-45 policy from the date of receipt
of goods or services. Payment should be made on oraround forty-five (45) days.
21.2 The Department Head has the responsibility to demonstrate that goods and
services are received and meets the quality expectation through proof of receipt
by marking packing slips, signed work orders, receiving slips, time sheets.
21.3 Deposits can be made upon approval of an order to a maximum of 4O% of the
value of the goods or services. Treasurer or CAO approval required.
21.4 Holdbacks are required on all operational or capital work that extends over a
period of three (3) months, that exceeds $25,000 or as deemed by the Treasurer
or CAO as included in the contract.
21.5 Payments of holdbacks will be released upon satisfactory quality of goods or
services received as per the terms of the contract as agreed by the Department
Head.
21 .6 All payments shall be authorized by one (1) elected official and one (1) senior officer
as appointed by Council Resolution. (See Section 19 herein).
22. SIGNING AUTHORITY AND COUNCIL APPROVAL
22.1 Signing authorities shall be appointed by Council Resolution.
22.2 The Mayor and one (1) Councillor shall be authorized as Elected Officials and the
CAO, Clerk and the Treasurer shall be authorized as seniorofficers.
22.3 Two (2) signatures, one (1) Elected Official and one (1) senior officer are required
on all contracts, cheques, transfer of funds, mortgages, loan agreements and any
other documents of a financial or legal nature
22.4 The award of a contract requires approval of Council
a) ln accordance with the limits as stated in Schedule "C"of this Policy;
b) Where the signing authorities deem necessary to have obtain a Council
Resolution;or,
c) Where this Policy is beingwaived.
23. ACCESS TO INFORMATION
23.1 The disclosure of information received relevant to the issuance of a Bid Request,
or the award of Contracts shall be made available in accordance with the
provisions of the Municipality's Policy under the Municipal Freedom of lnformation
and Protectian of Privacy Act, (R.5.0. 1990, Chapter M56), as amended from time
to time.
24. DISPOSAL OF SURPLUS GOODS
24.1 "Surplus Goods" means any items no longer having any use to the Municipality or
in excess of the needs of the Municipality that have become available fortransfer
sale, or disposal.
24.2 A Department Head may advise the Treasurer that items including, but not limited
to, furnishings, equipment, vehicles, supplies, and other goods and materials, and
excluding Real Property, have become obsolete, worn out or unusable or are
surplus to the needs of their department including, obsolete supplies, scrap
materials, and vehicles but excluding real property.
24.3 The Treasurer will first offer the surplus items to other departments. ltems not
required by other departments and surplus to the Municipality's needs, will be
declared as Surplus Goods by the Finance Department.
24.4 Policy No.: FIN-001 - Disposal of Municipal Assets lncluding ltems Collected at the
Landfill Site Policy to be followed for disposal processes and procedures.
25. INFLUENCE AND INTEGRITY
25.1 No person, company, corporation, organization, or representative of the
Municipality shall attempt in any way, either in private or public, to influence the
outcome of the Bid Request.
25.2 The Bid or Proposal of any person, company, corporation, or organization that
attempts to influence the outcome of a Bid Request may be disqualified and the
person, company, corporation, or organization may be subjected to suspension or
exclusion in accordance with the Vendor Performance Policy. An employee of the
Municipality that attempts to influence the outcome of a Bid Request will be subject
to discipline measures up to and including termination.
26. LEGISLATIVE TRADE AGREEMENTS AND LOCAL PREFERENCE
26J All procurement activities shall be in compliance with all legislated national and
international trade agreements (e.9., Canada Free Trade Agreement (CFTA),
Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
and Canada-United States-Mexico Agreement (CUSMA).
26.2 The Discriminatory Business Practices Act (R.S.O. 1990, Chapter D.12), as amended
and the Canada Free Trade Agreement prohibit local preference in acquiring Goods
and Services.
27. SCHEDULES
27.1 Schedules "A", "8", "C" and "D" to this Policy form an integral part of this Policy
28. POLICY REVIEW
28.1 The Municipality of St.-Charles will review this Policy within five (5) years of the date
of the last review.
Dated at St.-Charles, Ontario, this 18th day of October,2023.
Paul Branconnier
Mayor
Tammy Godden
Clerk
X
1
SCHEDULE ''A" EXEMPT PURCHASES
The methods of procurement described in this Policy do not apply to the following items:
All payment and allowances as determined in the employee policy manual including
but notlimited to:
a. Training, Education and Professional Credentials/ Representation, Meetings,
Conferences, Workshops / Travel Expenses
b. Cell phone allowance
c. Expensereimbursement
d. Clothing allowance
Employer's General Expenses
a. Payroll deductions remittances
b. Benefits
c. Licenses (vehicles, firearms, elevators, etc.)
d. Debenture payments
e. Grants to agencies
f. Damage claims
g. Tax remittances
Professional and Special Services
a. Legal fees and other professional services related to litigation or legal matters
b. Appraisal fees
c. Insurance Deductibles
4.
Utilities
a. Water and Sewer
b. Hydro
c. Heating Fuel
d. Telephone (excluding cellular)
Vehicle Equipment Fuel / Gas
Lease, sale, or purchase of RealProperty
Freight
Purchases made through Local Authority Services (LAS) program under the
Association of Municipalities of Ontario (AMO)
9.
Purchases made through Supply Ontario
Exempt Purchases are subject to budget limitations and any budget overages
must be reported to Council in a follow-up report completed by the Department
Head or CAO.
2
3.
5
6
7
8
SCHEDULE ''B'' . BID IRREGULARITIES
lrregularity
Response
GENERAL
1
Late submission
Rejection
2
Unsealed Envelope / Package
Rejection
3
Failure to have a representative in
attendance in
person or
electronically and registered at a
mandatory site meeting
Rejection
4
Failure to include the applicable
form of Tender, Quotation, Proposal
with submission
Rejection
5
Forms that compose the submission
documents are not completed in
their entirety
Rejection unless in the opinion of
the Department Head and
Treasurer, the missing information is
minor in nature
5
More than one submission from the
same submitter and not identified as
an
alternative or
optional
submission, and no withdrawal
notice has been received
The submission package bearing
the most recent date/time stamp will
be considered with the later
submission considered to be
withdrawn, and returned to the
submitter
7
Bids containing minor, obvious
clerical errors that do not result in
any ambiguity with respect to the
overall submission
Two (2) business days to correct
and initial
8
Authority to bind the Corporation or
signature missing
Rejection
I
Other minor irregularities
The Department Head and
Treasurer shall have authority to
waive irregularities where it
considers it to be in the best interest
of the Municipality
10
Any irregularity herein
Despite the provisions contained
Council may waive any irregularity
where it considers it to be in the best
interest of the Municipality
PRICING
11
lncomplete or partial price details
where all items are mandatory to be
bid
Rejection
12
Unit price has been changed
Rejection
13
Pricing appears to be unbalanced to
the extent that it would have a
significant adverse effect to the
Municipalitv if awarded
Rejection
BID DEPOSIT
14
Bid Deposit or Bid Bond not
submitted with bid
Rejection
15
Bid Deposit or Bid Bond not in
Rejection. acceptable form
Rejection
16
Bid Deposit or Bid Bond amount is
insufficient
Rejection
17
Surety provider and I or Bidder's
authorized signature missing from
Bid Bond
Rejection
18
Effective period of Bid Bond is less
than the irrevocable period
stipulated in the bid document
Rejection
AGREEMENT TO BOND
19
Agreement to Bond not submitted
with Bid
Rejection
20
Agreement to Bond not provided in
acceptable form
Rejection
21
Agreement to Bond amount is
lnsufficient
Rejection
22
Surety provider and i or Bidder's
authorized signature missing from
Agreement to Bond
Rejection
STATUTORY DECLARATION
23
Statutory Declaration not submitted
with Bid
Two (2) business days to submit
24
Statutory Declaration not in the
form specified
Two (2) business days to submit
25
Statutory Declaration not witnessed
Two (2) business days to submit
POST AWARD NOTIFICATION
26
Failure to execute required bonding
or security within the prescribed
timeline
Rejection and Bid Deposit forfeiture
27
Failure to execute a Contract within
the prescribed period
Rejection and Bid Deposit forfeiture
28
Failure to provide supporting
document, as specified within the
Bid Request and with the prescribed
period
Rejection and Bid Deposit forfeiture
"Rejection" = Returned unopened with explanation. Opened and returned only when
bid is unsealed, or the submitter's name is not clearly identified on the package.
SCHEDULE ''C" . PROCUREMENT THRESHOLDS
Purchases are subject to budget limitations and any budget overages must be
reported to Gouncil in a follow-up report completed by the Department Head or
cAo
Purchase
Threshold
Purchase
Method
Method / Advertising
Approval
Agreement
Method
Under
$1,000
Direct
Purchase
- No competitive process
required
- Public Advertising not
required
- Employee
designated by
Department
- Department
Head
- Treasurer
- cAo
- Departmental
Credit Card
OR
- On account with
Purchase Order
$1,000 to
$10,000
Low Value
Purchase
- Competitive quotes at
the Department Head's
discretion (informal -
verbal)
- Public Advertising not
required
- Department
Head
- Treasurer
- CAO
- On account with
Purchase Order
OR
- Departmental
Credit Card with
Purchase Order
$10,000
to
$50,000
lnformal
Request for
Pricing
- Minimum of (2) two
written quotes to be
obtained {via email or fax)
- Public advertising is
discretionary
- Treasurer
- cAo
- On account with
Purchase Order
OR
- Agreement /
Contract with
Purchase Order
- Report to
council of approval
Over
$50,000
Request for
Tender (RFT)
Request for
Proposal
(RFP)
- Minimum of (2) two
written quotes to be
obtained (RF document to
be prepared using the
approved template or
professional ly prepared
format, approved by
Finance Department or
CAO, tracked with RF# and
issued)
- Public advertising is
mandatory
- CAO if within
current years'
Budget
- Council if over
or not in current
years'budget
On account with
Purchase Order
AND
- Agreement /
Contract with
Purchase Order
- Report to
council of approval
if required
EXTRAORD r NARY Cr RCU M STANCE (E M E RG E NCY) PU RGHAS E :
. No competitive process required
. Requires approvals in accordance with the limits stated above
o Purchases exceeding the limits of the CAO and requires authorization of Council;the CAO shall
have authority to approve such purchase and a follow-up report to C
SINGLE SOURCE / SOLE SOURCE:
. No competitive process required
. Requires approvals in accordance with the limits stated above
. Documentation to be provided to explain the compliance wjth Section I or 10 of t
SCHEDULE "D" - Credit Card Waver Form
Policv Reoardino Use of Mu
cioalitv-lssued Credit Cards
The Municipality will issue credit cards to certain employees for use in their jobs;
this Policy sets out the acceptable and unacceptable uses of such credit cards. Use of
Municipality-issued credit cards is a privilege, which the Municipality may withdraw in the
event of serious or repeated abuse.
All purchases must remain under $1,000 per transaction. Any amount above
$1,000 should be charged to the Treasury Credit Card as additional limits and controls
are in place.
Any credit card the Municipality issues to an employee must be used for Municipal
business purposes only, in conjunction with the employee's job duties. Employees shall
not use the credit cards for any non-business, non-essential purpose, i.e., for any
personal purchase or any other transaction that is not authorized or needed to carry out
their duties. Employees must pay for personal purchases (i.e., transactions for the
benefit of anyone or anything other than the Municipality) with their own funds or
personal credit cards. Receipts from the purchase must be handed in to the Finance
Department no later than fifteen (15) days after receiving the credit card monthly
statement. lf a receipt is not submitted or if the information on the receipt is not detailed
enough to determine the validity of the purchase, it will be deemed as an employee
personal purchase.
The Municipality will not regard expenses for one's own business-related use,
such as lodging and meals while on Municipality-approved business trips, as personal
purchases, as long as such expenses are consistent with the Municipality's travel and
expense reimbursement policy.
lf any employee uses a Municipal credit card for personal purchases or any other
type of unauthorized transaction in violation of this policy or goes beyond the
employee's authorization to make business-related purchases, the cost of such
purchase(s) or transaction will be the financial responsibility of that employee, and the
employee shall reimburse the Municipality either via deductions from pay until the
unauthorized amount is fully repaid or direct reimbursement. Such deductions will be
in the amount of the unauthorized purchase(s) and may not take the employee's pay
below minimum wage for the pay period(s) in question; any balance remaining will be
deducted in full from subsequent paychecks until the wage advance is fully repaid.
ln addition to financial responsibility and liability for wage deductions, any
purchases an employee makes with a Municipal credit card in violation of this policy
will result in disciplinary action, including termination of employment, depending upon
the severity and repeat nature of the offense.
lf suspicious of a security breach, the card holder must change the security PIN
of the credit card at the St.-Charles Caisse Populaire immediately. Then advise the
finance department at your earliest convenience. lf the card is thought to be stolen, the
card holder must inform the finance department immediately.
Employee lnitials
Aoreement for Waoe Deductions Associated with lmorooer Use of Municioalitv-
lssued Credit Gards
(name), hereby certify that I understand and agree to
abide by the Municipalit$ policy regarding use of Municipality-issue d credit
of which I have received, and which has been explained to me. I agree that
cards, a copy
if I make any
personal purchases or any purchase that I cannot justify with the proper receipt (i.e.,
transactions for the benefit of anyone or anything other than the Municipality) in violation
of that policy, the amount of such purchases is an advance of future wages payable to
me, that the Municipality may deduct that amount from my next paycheck, and that if there
is a balance remaining after such deduction, the Municipality may deduct the balance of
the wage advance from my future paychecks until the amount is repaid in full. I further
agree that if I make any non-personal transactions in violation of the Policy in question,
i.e., incur financial liability on the Municipality's part that is not within the scope of my
duties or my authorization to make business-related purchases, I am financially
responsible for any such expenses and agree to reimburse the Municipality via wage
deductions for such amounts until the unauthorized amounts are fully repaid. Such
deductions will be in the amount of the unauthorized purchase(s).
Signature of Employee
Date
Employee's Name - Printed
Signature of Treasurer
Date
Treasurer's Name - Printed