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HomeMy WebLinkAboutTR-13-95 THE CORPORATION OF T'IIE MUNICIPALITY OF CLARINGTON REPORT Meeting: ENERAL PURPOSE AND ADMINISTRATION COMMITTEE g� File # Date: MONDAY, MARCH 20, 1995 Res. #��C�ia Report#: TR-13-95 File#: By-Law# Subject: CO-OPERATIVE PURCHASING Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: c 1 . THAT Report TR-13-95 be received; 2 . THAT Council approve the membership of the Municipality of Clarington in the Durham Purchasing Co-operative; and 3 . THAT Council endorse the attached "Terms of Reference/Constitution" for the Durham Purchasing Co- operative. BACKGROUND AND COMMENT: On July 18, 1994 , Council approved Resolution $#GPA-502-94 which read as follows : "THAT Report TR-62-94 be received; THAT the concept of establishing the Durham Purchasing Co-operative be approved, provided that the terms of reference includes that the lowest overall bid will be accepted; and THAT Council endorse in principle the proposed "draft" Constitution (subject to revision) for the Durham Purchasing Co-operative . " i As per Report TR-62-94 , (see Schedule "A" attached) , Council approval of the final "Terms of Reference/Constitution" (see Schedule "B" attached) is required. This "Terms of Reference/Constitution" has been approved and adopted by all members of the Durham Purchasing Co-operative . PA,LR E�r�eE T11 IS GI'll -U -RECYCLED PAPER REPORT NO. : TR-13-95 PAGE 2 CO-OPERATIVE PURCHASING For the information of Council, Page 4, Item 10 . 1 . 1, of the "Terms of Reference/Constitution" addresses the resolution passed by Council with respect to the lowest overall bid being accepted. Item 10 . 1 . 1 reads as follows : 10 . 1 . 1 The Durham Purchasing Co-operative shall endeavour to acquire commodities and services at the lowest cost/best value without discrimination or favouritism consistent with the application of the highest standards of purchasing and business ethics; This has been worded this way as there are times when depending on the commodity that is being tendered, it may not be practical to have only one tender award, ie : the delivery location may have a definite impact on the pricing and therefore it may be necessary to divide the pricing schedule into various sections . However, the decision as to whether there will be one total bid price or pricing by sections is made jointly by the participating agencies prior to the tender being issued. In all cases one total bid price is preferred and is utilized whenever possible in order to ensure the lowest overall cost and best value is obtained. Each tender document issued advises the bidders as to the intent of the participants, as to whether there will be one contract award or more than one . As identified in Report TR-62-94, any member agency may elect to participate in a co-operative tender call and in so doing, agrees to remain committed to the call and award its requirements based upon the overall lowest cost/best value, subject to the availability and approval of funds by the respective Council, Board or Commission. I i I / 16 REPORT NO. : TR-13-95 PAGE 3 CO-OPERATIVE PURCHASING Respectfully submitted, Reviewed by, I/-���ib�jl M---le Marano, H.BSc . ,AMCT. , W.H. Stockwell, Treasurer Chief Administrative Officer MM*LB*ld i i i I i I i i i i i i I I I i i SCHEDULE "A" THE CORPORATION-OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Date: MONDAY, JULY 18, 1994 Res. # Report #: TR-62-94 File#: By-Law# Subject: CO—OPERATIVE PURCHASING Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-62-94 be received; 2 . THAT the concept of establishing the Durham Purchasing Co- operative be approved; and 3 . THAT Council endorse in principle the proposed "draft" Constitution (subject to revision) for the Durham Purchasing Co-operative. . BACKGROUND AND COMMENT- 1. 0 Co—operative Purchasinq Government agencies, boards and commissions oftentimes procure common or similar commodities and services. An effective and efficient means by which to procure such commodities and services is by joint effort as a co-operative purchasing group. The advantages include savings generated to ­each participant as a result of volume buying while reducing duplication of effort. To date, the Municipality of Clarington has benefited by participating in various co-operative efforts such as road salt, gravel, gasoline and diesel fuel. Albeit successful, problems have occurred and may be overcome in future with a more formalized approach as a group. The time has come to expand the membership base and explore the commonality of the 718 SCHEDULE "A" continued REPORT NO. : TR-62-94 PAGE 2 CO-OPERATIVE PURCHASING needs within the group, and administer the procurement as a group to obtain maximum value for the dollar spent while minimizing administrative costs associated with the process . Before staff commit significant time to this endeavour, it is felt that Council be advised and requested to support the concept. 2 . 0 Introduction Various public funded agencies have expressed an interest in participating as a co-operative purchasing group, and, wish to pursue the co-operative effort as the Durham Purchasing Co- operative. • Regional Municipality of Durham • Corporation of the Town of Pickering • Corporation of the Town of Ajax • Corporation of the Town of Whitby • Corporation of the City of Oshawa • Corporation of the Municipality of Clarington • Oshawa Public Utilities Commission • Pickering Hydro Electric Commission • Ajax Hydro • Whitby Hydro • Clarington Hydro 3 . 0 Membership Membership shall be open to any agency in agreement to -comply with established procedures for calling and awarding tenders, quotations and proposals operating within the Regional Municipality of Durham supported by public funds . Consideration may be given to expand the boundary to provide opportunity for other agencies to participate if agreed upon by a quorum of the Durham Purchasing Co-operative. / 19 SCHEDULE "A" continued REPORT NO. : TR-62-94 PAGE 3 CO-OPERATIVE PURCHASING 4. 0 Operating Principles The Durham Purchasing Co-operative shall endeavour to acquire commodities and services at the lowest overall cost/best value without discrimination of favouritism consistent with the application of the highest standards of purchasing and business ethics. 5 . 0 Purpose The purpose of the Durham Purchasing Co-operative shall be to promote efficiency in the purchasing and materials management of commodities and services by: • jointly inviting tenders, quotations and/or proposals for common requirements; • encouraging standardization and improvement of specifications for common requirements; 0 exchanging market information; • promote closer -co-operation, exchange of information and interaction among members; and • exchange professional development through joint study and evaluation of current and state-of-the-art managerial and administrative processes as related to procurement. 6 . 0 Participation Agencies shall share responsibility to act as a host for a co- operative tender, quotation and proposal call and be considered the Lead Agency and calling procedures of the Lead Agency shall govern. ._. An agency without established calling procedures shall utilize appropriate procedures available. An agency may elect to participate in a co-operative call and in so doing, agrees to remain committed to the call and award its requirements based upon the overall lowest cost/best value, subject to the availability and approval of funds by the respective council, board or commission. i SCHEDULE "A" continued REPORT NO. : TR-62-94 PAGE 4 CO-OPERATIVE PURCHASING 7 . 0 List of Bidders The Lead Agency shall utilize guidelines to develop a bidder's list and bidder suggestions forwarded by participating agencies . 8 . 0 Endorsement In order to continue in this direction, endorsement in principle by Council is required. This will provide the opportunity for the Municipality of Clarington to be an integral part of the framework required to continue developing the Durham Purchasing Co-operative, its "draft" Constitution and ultimately benefit from its use. ii Attached, marked Schedule "A" , for Council's review, is a proposed "draft" Constitution for the Durham Purchasing Co-operative. This constitution is subject to review and must be approved by all members of the Co-operative. Once all members have agreed on the terms, the Constitution will be brought back to Council for their final approval. For Council's information, a report similar to this one is being presented to the Councils or Commissions of each of the participants for approval in principal before continuing in this direction. Respectfully submitted, Reviewed by, Marie Marano, H.BSc . ,AMCT. , W.H. Stockwell, Treasurer Chief Administrative Officer MM*LB*ld I 121 I `i SCHEDULE "B" DURHAM PURCHASING CO-OPERATIVE TERMS OF REFERENCE/CONSTITUTION 1. FORMATION 1 .1 The participating Purchasing representative of the agencies listed below agree to engage in a co-operative purchasing group. 2. NAME 2.1 The name of the group shall be The Durham Purchasing Co-operative (hereinafter referred to as The Group). 3. PURPOSE 3.1 The purpose of The Group shall be to promote efficiency in the purchasing and materials management of goods and services by: 3.1 .1 Jointly calling tenders, proposals and/or quotations (hereinafter referred to as a "tender") for commonly-used items or by any other method agreed upon by majority resolution of The Group. 3.1 .2 Encouraging standardization of specifications for commonly used items. 3.1 .3 Exchanging market information. 3.1 .4 Promoting closer co-operation, exchange of inforrrmtion and interaction among Group members. 4. MEMBERSHIP 4.1 Membership shall be open to any agency operating within the Regional Municipality of Durham and supported by public funds such as health care institutions, educational institutions, government agencies and boards or commissions, subject to approval of The Group. The membership will consist of representatives from: 4.1 .1 The Regional Municipality of Durham �. I SCHEDULE "B" continued 4.1 .2 The Corporation of the Town of Ajax 4.1 .3 Ajax Hydro-Electric Commission 4.1 .4 The Corporation of the Municipality of Clarington 4.1 .5 Clarington Hydro-Electric Commission 4.1 .6 The Corporation of the City of Oshawa 4.1 .7 Oshawa Public Utilities Commission 4.1 .8 The Corporation of the Town of Pickering 4.1 .9 Pickering Hydro-Electric Commission 4.1 .10 The Corporation of the Town of Whitby 4.1 .1 1 Whitby Hydro-Electric Commission 4.1 .12 The Corporation of the Township of Brock 4.1 .13 The Corporation of the Township of Uxbridge 4.1 .14 The Corporation of the Township of Scugog 4.2 Each member agency shall have one vote. 4.3 Consideration will be given at any time to expanding the membership to include representatives of other agencies from within the geographic area of Durham Region. 4.4 The Expansion shall be agreed upon by majority resolution of The Group. 4.5 As agreed by majority resolution of all member agencies, The Group may work in partnership arrangement with other purchasing co-operatives or publicly funded agencies for selected projects. i I SCHEDULE "B" continued 5. ADMIN/STRA T/ON 5.1 For administrative purposes The Group shall include a Chairperson,'Vice Chairperson and a Recording Secretary, to be elected annually from among the membership; the annual election to be at a meeting in June with the newly- elected executive to take office in the following September and the duties of each director shall be: 5.1 .1 The Chairperson shall preside at the meetings of The Group; shall act as the procedural officer for the transaction of business; shall be empowered to establish or postpone meeting dates and conduct correspondence on behalf of The Group; and may appoint such committees, as are considered necessary. 5.1 .2 The Vice Chairperson shall in the absence of the Chairperson, preside at the meetings, act as the procedural officer for the transaction of business; shall be empowered to establish or postpone meeting dates and conduct correspondence on behalf of the Chairperson and other duties as assigned by the Chairperson. 5.1 .3 The Recording Secretary shall, at the request of the Chairperson of The Group, or at least three (3) members of The Group, issue notices of the meeting, listing the place, the time and, as fully as possible, the business to be transacted; shall keep the Minutes of the meetings, shall distribute such Minutes within two (2) weeks; and shall, at the direction of the Chairperson or The Group members, by resolution, attend to the correspondence. 6. QUORUM 6.1 A quorum for The Group will be a minimum of two-thirds of the Member Agencies. 7. MEETING PLACE 7.1 A permanent meeting place for The Group shall not be established, it being the intent that members act as the hosts for meetings of The Group, either in rotation or as convenient. l24 t SCHEDULE "B" continued 8. MEETINGS 8.1 Meetings of The Group shall be held monthly or as often as The Group members collectively shall decide. 8.2 At the discretion of the Chair or upon request by three (3) members of The Group, meetings can be called to discuss matters of urgency. In circumstances where there is no business to conduct or a quorum cannot be obtained, the Chair is empowered to cancel or reschedule meetings as required. 9. PRINCIPLES 9.1 To carry out the aims and objectives of The Group it shall be understood that a major function will be co-operative purchasing as a means of reducing costs of goods and services by permitting purchasing in larger volumes and at lower unit prices; and by avoiding possible duplication of effort. 10. TERMS OF REFERENCE 10.1 The following terms shall apply to The Group's programme for co-operative purchasing ventures: 10.1 .1 The Durham Purchasing Co-operative shall endeavour to acquire commodities and services at the lowest cost/best value without discrimination or favouritism consistent with the application of the highest standards of purchasing and business ethics; 10.1 .2 Only those goods and services that lend themselves to cost reduction because of volume and/or methods will be considered; 10.1 .3 It is understood that the interests of the representative's agency will at all times govern an individual decision whether or not to take part in a particular tender prior to the tender being released; 10.1 .4 No one member of The Group shall be responsible for all tendering and it will be expected that all participants will take a turn in preparing outgoing tenders; 10.1 .5 It is recognized that, having regard to the various policies and procedures governing the purchasing for the participating agencies, the specific policy applying to the agency who calls the tender; I SCHEDULE "B" continued 10.1 .6 The control of ordering, receiving and paying for co-operatively tendered items will remain the responsibility of the individual agency for its portion of the co-operative tender total; 10.1 .7 Tenders will be issued, as far as possible, in a document form agreed upon by The Group as to conditions, and it is understood that individual specifications, delivery points, terms of payment, may vary; 10.1 .8 Once the Group has agreed to issue a particular tender call invitation in accordance with the purchasing co-operative procedures it will be expected that the participating members will remain committed to the tender call. The award, however will be subject to the respective agencies' approval; 10.1 .9 Members who do not wish to participate in a tender call will, whenever possible, so signify to the calling agency. The calling agency will report to the Recording Secretary noting the member agencies who will/will not be participating in each tender call; 10.1 .10 All participating members will be expected to accept, and abide by, the decision concerning the structure/format of the tender for each commodity/requirement; 10.1 .1 1 A member agency of The Group may, by two-thirds (2/3) majority vote' of the total member agencies, have their membership terminated if they fail to follow the guidelines of this document. 11. AMENDMENTS 11 .1 Any amendments to these terms of reference must be adopted by a two-thirds (2/3) majority of the member agencies. 12. CONCL USION 12.1 The Group membership shall at all times be recognized as being voluntary in nature and beneficial in practice for achieving effectiveness and efficiency in the best interests of purchasing for the member agencies. Drafted - June 1994 Adopted - September 22, 1994. Amended - January 12, 1995 M:\DATA\WP51\COOPGRP