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By-law No. 2007-017 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NUMBER 2007-017 Being a By-law to Establish a Finance Policy for"Museums Bayham" including The Edison Museum of Vienna and The Port Burwell Marine Museum& Historic Lighthouse WHEREAS the Council of the Municipality of Bayham recognizes the need for clear and concise policies concerning Museums Bayham; AND WHEREAS the Council of the Corporation of the Municipality of Bayham is desirous that a Finance Policy be established for Museums Bayham; AND WHEREAS the Council is desirous that such provision be approved by By-law; THEREFORE BE IT RESOLVED THAT the Council of the Corporation of the Municipality of Bayham enacts as follows: 1. THAT the Council of The Corporation of the Municipality of Bayham hereby establishes a financial policy to be known as the "Museums Bayham Finance Policy" as set out in Schedule "A" attached hereto and forming part of this by-law. 2. THAT financial matters related to the Edison Museum of Vienna and the Port Burwell Marine Museum shall be maintained in accordance with the said Policy being hereby adopted. 3. THAT this By-law shall come into full force and effect on the date of its passage. READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 19TH DAY OF APRIL 2007. .40 _ant_ ..1•41I + / MAY SiAlCL 'Rx Schedule"A"to B/L 2007-017 MUSEUMS BAYHAlv EDISON MUSEUM OF VIENNA - & - PORT BURWELL MARINE MUSEUM & HISTORIC LIGHTHOUSE Finance Policy Museums eu,r s B yha.• _ Finance Policy 1 . Introduction It is the responsibility of the Museums Bayham Board to secure adequate funding for the operations of the Edison Museum of Vienna and the Port Burwell Marine Museum & Historic Lighthouse and the programs that have been outlined in the Museums' policy statements. The Board must become familiar with sources of government and private funding, as well as the procedures necessary for securing this financial support. Each year the Board submits an approved annual budget to the Municipality of Bayham for Council approval. The budget delineates specific program requirements and operating expenditures, and provides a review of the year's total expenditures based upon the authorized annual budget and programs. 2 . Financial Objectives - - The Museums Bayham Board shall demonstrate that it is a fiscally responsible public institution operating Bayham's Museum sites. To achieve this, the Museums Bayham Board shall follow predetermined policies and procedures, as approved by Municipality of Bayham Council. •2.1 Upon Municipal Council approval of an annual budget, as prepared and submitted by the Museums Bayham Board, the Museums Bayham Board shall carry out its responsibility to secure funding necessary for the operations and maintenance of museum sites, museum activities, and for capital projects. 2.2 The Museums Bayham Board shall demonstrate a commitment to ethical behaviour in the pursuit of funding. 2.3 The Museums Bayham Board shall seek diverse sources of funding, both public and private. 2.4 Financial resources related to the museums' operation and administration shall be allocated and controlled through an annual budget approved by the Museums Bayham Board and the Municipality of Bayham Council. 2.5 The Municipality of Bayham, as prescribed by the Municipal Act 2001, as amended from time to time, makes public annual audited financial statements, which shall include the Museums Bayham Board's financial information. 2 . Procurement Policy : 1. This purchasing policy outlines the procedures to be followed in order to obtain the best value for time and money when purchasing or contracting for goods and services for the Municipality of Bayham museums. 2. The guiding principal is that procurement decisions will be made using a competitive process that is objective, open, transparent and fair. 3. The Treasurer and Administrator are responsible for ensuring that the procedures of the Purchasing Policy are adhered to by the Museums Bayham Board members and/or Museum Staff. 4. This purchasing policy may be overridden by Bayham Council if Council, in its' sole discretion, determines it to be appropriate and in the best interests of the municipality, . 5. Prior to the approval of the current budget, the Museums Bayham Board may incur normal operating expenditures. 6. Council approval of the current budget shall be sufficient authority for Museums Bayham Board to proceed with the procurement of materials, supplies and contractors, subject to the procedures and limitations contained herein. 7. All purchasing shall be conducted by the Museums Bayham Board or its designate in accordance with the policies and procedures established herein. 8. Purchases of a small value may be made by a Museums Bayham Board Member or Museum Staff via a petty cash fund. The petty cash fund shall be administered by the Curator, or in his/her absence, by the Museums Bayham Board. 9. Museums Bayham Board (or its designate where identified) shall initiate a purchase in the following manner: a. For purchases up to $1,000.00, comparison pricing should be done where practical. 3 b. For purchases between $1,000.00 and $5,000.00, three (3) verbal quotations shall be obtained where possible. The supplier shall be selected upon terms and conditions as determined by the Museums Bayham Board or its designate, in its sole discretion. c. For purchases between $5,000.00 and $20,000.00, three (3) written quotations shall be obtained where possible. The supplier shall be selected upon terms and conditions as determined by the Museums Bayham Board in consultation with the Treasurer or Administrator. d. For purchases between $20,000.00 and $50,000.00, a Museums Bayham Board or its designate shall, at its sole discretion, select one of the following procedures to gather quotation information: i) formal invitation to quote/request for quotation OR ii) sealed tenders. The quotations or tenders shall be submitted by the Museums Bayham Board to Council upon receipt along with a recommendation for supplier. e. For purchases greater than $50,000.00, a Museums Bayham Board or its designate shall, in consultation with the Treasurer or Administrator, select one of the following procedures to gather quotation information: i) sealed tenders OR ii) request for proposal The quotations or tenders shall be submitted by the Museums Bayham Board to Council upon receipt along with a recommendation for supplier. f. Notwithstanding the forgoing, Council may, by resolution, direct the method of obtaining quotation information. g. A copy of all written or verbal quotations shall be submitted to the Museums Bayham Board for recording in the meeting minutes, together with a copy to the Treasurer. h. In general, in-house bids will not be accepted unless authorized by the Museums Bayham Board and Bayham Council and fully disclosed in all tender or request for proposal documentation. 4 10. Where an emergency occurs that, in the opinion of the Museums Bayham Board or its designate, constitutes immediate danger to health, safety, life or property, that requires the immediate procurement of goods and services, the Museums Bayham Board or its designate may purchase such goods or services through the open market at fair market value regardless of the amount of the expenditure. Written and/or verbal quotes from three (3) vendors should be obtained whenever practical. As soon as practical following the emergency, a full written report shall be submitted to the Treasurer for review and immediate submission to Council. 11. A tendering process may not be required where the goods or services are proprietary, where there is only one supplier that can meet the municipality's needs within a reasonable distance or where the cost of changing suppliers for a product or service already in place is deemed to be exorbitant. Upon Museum Staff and/or Board Members recommendations, Council shall, in its' sole discretion; determine whether a tender process may be forgone for these reasons. 12. Notwithstanding the provisions of this policy, the following expenditures may be made without following the formal purchasing procedures detailed herein: a. petty cash items, maximum $300.00; b. training and education, provided these costs fall within the approved budget, including: i) conferences ii) courses iii) memberships iv) seminars v) Museum Staff and/or Board Members development vi) subscriptions; c. mileage, travel and accommodation, provided these costs fall within the approved budget; d. employer expenses including: i) payroll ii) payroll deduction remittances iii) insurance premiums iv) group benefits v) pension remittances vi) expenditures under union contract; e. utilities; 5 f. maintenance, support and upgrades for existing computer hardware and software; g. other professional and special services including: i) legal costs for general issues ii) consultant costs iii) engineering consultant costs for general issues. 13. Objectivity i) Quotations and tenders shall be solicited, reviewed and selected in an unbiased atmosphere. ii) Museums Bayham Board Members, Museum Staff, and Council involved with the solicitation, review and selection process for any particular bid shall not submit their own, personal bid for consideration. Further, should a bid be submitted from an immediate family member (parent, spouse, or any child) of the Museums Bayham Board, Museum Staff or Council Members involved with the process, it shall be disqualified without consideration. iii) Notwithstanding Article 13 ii), in the event that a Museums Bayham Board member, Council member, of staff have publicly declared an interest in the process, and have not participated in the solicitation, review, or selection process, members and immediate family members may submit bids for consideration. iv) Personal preferences shall not be given priority unless the bid submitted demonstrates that it is the lowest priced, compliant bid. 14. Fairness The terms of selection shall be detailed in th e procurement documents and shall be applied equally to all bidders. Tenders and Requests for Proposals shall be advertised locally as well as in daily papers that are deemed appropriate by the Museums Bayham Board and Museum Staff involved. Invitations to bid may be extended rather than by a general advertisement if the Board Members and Museum Staff are of the opinion that there are a limited number of appropriate suppliers that can meet the museums' needs at that time. No action shall be undertaken by Museum Staff, Board Members or Council that would give any bidder an unfair advantage. This does not require, however, that the museums change existing conditions to ensure that conversion costs from the incumbent to another supplier are ignored in an evaluation. 6 15. Openness and Transparency The museums' requirements and the terms of selection shall be clearly defined in each invitation or tender document. The decision for the successful bidder shall be based solely on the requirements as documented, the bidder's documents and the application of review criteria. 16. Accountability The Administrator or Treasurer shall maintain accountability on behalf of Council during each process. Informal contact with Board Members, Museum Staff or Council Members not specified as official contacts in the tender/request for proposal documents shall be considered unethical and may threaten the validity of that supplier's bid or even the process as a whole. Sealed quotations, tenders or proposals, marked with the time and date of receipt, shall be maintained in a locked tender box until the time specified in the procurement documents. If the lowest bidder's price is higher than the Museums Bayham Board budget, this will be brought to Council's attention and Council, in its' sole discretion, will decide whether to proceed or to investigate alternatives. 17. Risk Management Suppliers will be required to provide proof of insurance along with a WSIB clearance certificate (or municipal waiver, if applicable) for all contracts. Insurance requirements will be detailed in the procurement documentation and must be adhered to throughout the term of the contract. Performance bonds may be required and will be disclosed during the bidding process. These bonds will be held by the municipality until end-of-contract indicators are in place (i.e. final clearance certificates are issued) at which time they will be released. 18. Effectiveness The Museums Bayham Board shall endeavour to define its' needs in a clear and simple format to minimize the occurrence of amendments to bidding documents or changes to contracts once in place. A listing of all changes required shall be maintained with the contract documents for review. An analysis of whether ratepayers' needs are being met in a satisfactory manner shall be performed throughout the term of a contract and changes or difficulties encountered shall be documented and considered upon renewal or re-tendering for those particular services or goods. This analysis shall involve on-going monitoring of service or product quality and a compilation of ratepayer complaints and resolutions. Further, prior to contract renewal or re -tendering, an evaluation of overall performance shall be made by the Museums Bayham Board, along with any Museum Staff directly involved with the contract, and shall be reported to Council. Poor performance on the part of the supplier/contractor may preclude future contracts being awarded. In the event that there are no successful bidders, the procurement documents shall be reviewed immediately by the Museums Bayham Board and the Administrator. The review shall include contacting persons or businesses that took out tender documents but did not submit or were not successful. This review shall determine if there was a n error on the part of the municipality in drawing up the documents, setting unreasonable requirements or anything else that prevented the successful completion of the procurement process. 19. Review This policy shall be reviewed every five (5) years at a minimum. An evaluation of the goals set out and the level of achieving those goals shall be made by the Museums Bayham Board. If significant problems are discovered, priorities have changed or the current policy has become unmanageable, changes must be proposed for Council's consideration. Further, procurement procedures will be reviewed at the same time to determine if the procedures outlined in this policy are being followed and whether they are supporting the goals of the policy. Variations in practi ce from the desired procedures should be evaluated to determine the underlying reasons for the changes. 8 Foliar Approval The Museums Bayham Financial Policy is approved by the Museums Bayham Board, subject to Council approval. This Financial Po licy may not be altered without the consent of the Museums Bayham Board and Council of the Municipality of Bayham. Date Signature: Chairperson Signature: Secretary 9