A new policy approved by Bonnyville Town Council will give greater preference to local businesses when it comes to town purchases.
During their meeting last week, council was presented with a revised version of the Purchasing of Goods and Services Policy. Changes to the policy included increasing local purchase preference thresholds and the introduction of a scale to ensure consistent incentives are given.
“It allows for local preference, but still keeps an eye on the public pocket book,” said assistant CAO Bill Rogers.
The process to update the town's shop local policy started back in February, after a concerned local business owner requested a review.
Previously, the policy allowed for a 10 per cent variance in pricing for projects $30,000 or less. Over that limit, there were no requirements for council to favour a local company.
Under the revised policy the threshold for local purchase preference has been increased to a maximum of $75,000.
The policy now states that for purchases between $250 and $1,000 verbal quotes from two suppliers is sufficient. For all purchases of $1,000 to $30,000 written quotes are needed from at least two vendors, with a 10 per cent variance for local vendors. This means that the town will be required to choose a local company, unless the out of town quote is more than 10 per cent cheaper.
When it comes to expenditures between $30,000 and $50,000, requests for proposals will be obtained from a minimum of three vendors. This must include at least one out of town vendor for comparison.
In this price category, purchases now must be made locally unless the local vendor's quote is more than six per cent higher than the out of town company's.
The final range is for expenditures between $50,000 and $75,000. Quotes from at least three vendors are required, including one from out of town, with the preference given to local companies provided they fall within the four per cent variance.
As it refers to the new policy, a local business is defined as any business located within the Town or MD of Bonnyville.
“It's very important for the vibrancy and the sustainability of a community,” said Mayor Gene Sobolewski. “You want to try and keep as much of the local economy vibrant as you can, and part of that is you have to keep people employed.”
Regardless of the price, the exception is when it comes to projects that are funded through provincial or federal grants. In that case, no local preference is permitted and the decision is made strictly on lowest bid.
For goods and services over $75,000, municipalities don't have a say in policy as they are governed by the New West Partnership Trade Agreement (NWPTA). A partnership between the Governments of British Columbia, Alberta, and Saskatchewan, the NWPTA has been implemented since 2013. It requires municipalities throughout the three provinces treat businesses as favourably as their own regardless of which province they're in to create an inter-provincial market.
Subsequently, the town will request tenders for all expenditures over $75,000 and must follow the NWPTA requirements for all purchases that fall within its thresholds.
Council approved the new purchasing policy unanimously.
