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HomeMy WebLinkAboutFSD-032-24Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. General Government Committee 3, 2024June Report Number:FSD-032-24 Trevor Pinn Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Mary-Anne Dempster, CAO Resolution Number: GG-109-24 Report To: Date of Meeting: Authored by: Submitted By: Reviewed By: File Number: Report Subject: Amendment to Purchasing Bylaw – Reporting Threshold for Rosters Recommendations: 1.That Report FSD-032-24, and any related delegations or communication items, be received; 2.That the By-law attached to Report FSD-032-24, as Attachment 1, be approved; and 3.That all interested parties listed in Report FSD-032-24, and any delegations be advised of Council’s decision. By-law Number: 2024-028 Municipality of Clarington Page 2 Report FSD-032-24 Report Overview This Report seeks Council approval to add a clause in the Purchasing By-law to change the reporting requirements to Council for those procurements which follow a roster process. The roster process completes a number of the back-office review of vendors to ensure that they meet the requirements of the Municipality and are capable of completing the work. The current roster is for consulting services and with a limit of $50,000, staff are not able to utilize the roster to its fullest potential. Other purchase s have a reporting limit of $500,000, however consulting is set at $50,000; the proposal would have consultants appointed through a roster able to be approved for up to the Canadian Free Trade Agreement threshold (currently $133,800). 1. Background 1.1 In 2019, the Municipality established a roster of consultants for specific engineering services. This roster is currently being used; however it is time to issue a new solicitation. 1.2 Given the increased costs since 2019, the current threshold of $50,000 is problemat ic. In the Purchasing By-law, consultants valued greater than $50,000 requires the Purchasing Manager to issue a bid solicitation and submit a report for Council approval. 1.3 It has been noted that general contract administration services are trending above this threshold even for relatively easy projects. This is creating additional work for Planning and Infrastructure Staff, as well as Purchasing Services Staff in having to issue RFPs for items less than $100,000. For comparison, for non -consulting purchases items less than $100,000 only require three quotes. 1.4 Finance and Technology staff will be reviewing the Purchasing By-law over the summer with a revised by-law to come to Council in the fall; however, to facilitate the issuance of a roster and the expedition of capital projects, staff are recommending a change at this time. 2. Proposed Amendment 2.1 Staff are recommending that a new paragraph be added after paragraph 6 4, and that subsequent paragraphs be renumbered. The proposed paragraph 64 .1 would read “Where a roster has been established for consulting services, in compliance with this By-law, a report to Council to award a contract under the roster shall only be required for awards in excess of the threshold set by the Canada Free Trade Agreement (CFTA).” 2.2 The current threshold is $133,800 for consulting services in the CFTA. Any project anticipated to be above this would be issued an RFP or RFT as appropriate. Municipality of Clarington Page 3 Report FSD-032-24 2.3 The proposed amendment will only impact consultants performing engineering work, primarily contract administration, and would be for projects that have already received budgetary approval. The threshold of the CFTA was chosen to ensure that any projects greater than this amount still go out for a separate solicitation in compliance with the free trade agreement. Given that a roster would pre-qualify consultants, and all projects are already budgeted, increasing the reporting threshold is a reasonable step to increase efficiency. 2.4 It is anticipated that significant time can be saved from the expanded use of a roster. The roster has been successful; however, as costs of risen the applicability of the roster has decreased. The time to draft the RFP, issue the RFP, review the RFP, draft the report to Council can all be eliminated through the expanded reporting limit in the use of the roster. 3. Financial Considerations 3.1 The change in process does not have financial implications as the funds would already be budgeted for. There will be time efficiencies in departments utilizing the roster as well as the Purchasing Division through reduced reporting burden and improved timeliness of award of work. 4. Strategic Plan 4.1 Not Applicable 5. Concurrence This report has been reviewed by the Deputy CAO of Planning and Infrastructure who concurs with the recommendations. 6. Conclusion It is respectfully recommended that the Purchasing By-law be amended to add the reporting limit for procurements undertaken through rosters. Staff Contact: Sandra McKee, Assistant Purchasing Manager, 905-623-3379 ext.2210 or smckee@clarington.net. Attachments: Attachment 1 – Draft By-law Amendment Interested Parties: There are no interested parties to be notified of Council's decision. If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. The Corporation of the Municipality of Clarington By-law 2024-XXX Being a by-law to amend the Purchasing By-law 2021-077. Whereas, pursuant to Section 270 of the Municipal Act, 2001, the Corporation enacted By-law 2021-077 (the “Purchasing By-law”) to establish and maintain policies with respect to its procurement of goods and services; and Whereas it is deemed expedient to amend the Purchasing By-law to change the process for hiring engineers and engineering consultants ; Now therefore the Council of the Municipality of Clarington enacts as follows : 1. The following section shall be added: 64.1 Where a roster has been established for consulting services, in compliance with this By-law, a report to Council to award a contract under the roster shall only be required for awards in excess of the threshold set by the Canada Free Trade Agreement (CFTA). 2. This by-law shall take effect on the date of passing. Passed in Open Council this 24 day of June, 2024. _____________________________________ Adrian Foster, Mayor _____________________________________ June Gallagher, Municipal Clerk