Trail considers major overhaul of purchasing and contract approvals

Trail considers major overhaul of purchasing and contract approvals

Published 2:17 pm Wednesday, September 16, 2026

Trail council is considering a major overhaul of the city’s purchasing rules that would give senior staff greater authority to award contracts and make purchases already approved through the municipal budget.

The proposed procurement policy was presented to council during its Committee of the Whole meeting Tuesday, Sept. 8.

Trail’s existing purchasing policy has been in place since 2011, and staff say its purchasing thresholds and approval processes have not kept pace with changes in legislation, technology, procurement practices and the rising cost of goods, services and construction.

Under the existing policy, purchases over $25,000 require approval by council or the General Government and Finance Committee and must be co-signed by the chief administrative officer.

That includes purchases already authorized through council’s annual approval of the Five-Year Financial Plan, according to the staff report.

Under the proposed approach, council would continue to approve expenditures through the financial plan, but staff would administer the procurement process and award contracts within delegated authority.

Following a competitive bidding process, the draft policy would give the chief administrative officer or chief financial officer authority to commit the city to purchases or contracts of up to $500,000.

The corporate officer would have authority up to $300,000, general managers and deputy positions up to $100,000, and managers up to $25,000.

For purchases or contracts above $500,000, authorization would require the chief administrative officer plus one general manager.

Those authorities would apply only when the expenditure has already been authorized through the Five-Year Financial Plan, remains within the approved budget, scope and purpose, and complies with the procurement policy.

Council approval would continue to be required when a purchase is outside the approved financial plan, requires additional funding or involves certain direct awards.

Direct awards exceeding $75,000 for goods or services or $200,000 for construction would still require council approval.

The draft also sets new requirements for competition.

Purchases between $10,000 and $50,000 would require at least two informal quotes, while purchases between $50,000 and $75,000 for goods and services, and between $50,000 and $200,000 for construction, would require formal quotes or bids.

Goods and services worth more than $75,000 and construction worth more than $200,000 would require open public competition, such as a request for proposals or invitation to tender.

Chief Administrative Officer Colin McClure said in the staff report that the existing purchasing thresholds have not kept pace with rising costs and have resulted in increasingly outdated approval requirements.

“The fundamental principle of the proposed approach is that Council approves expenditures through the Five-Year Financial Plan, while staff administers the procurement process and awards contracts within the authority delegated by Council,” McClure wrote.

To maintain oversight, staff would provide council with reports twice a year identifying purchases and contract awards exceeding $100,000.

The city already provides council with quarterly financial updates.

The policy would also establish more detailed rules for sole-source purchasing.

Single-source awards above $10,000 would require a documented justification and approval under the procedures set out in the policy.

Staff would report single-source purchases under $75,000 to council twice a year.

The proposed policy also incorporates new rules for disposing of surplus municipal assets, including public sales, trade-ins, negotiated sales, transfers to other public authorities, donations and recycling or disposal.

Land is excluded and remains governed under a separate city policy.

Staff say adopting the policy would have no direct financial impact, but increased delegated authority is expected to reduce administrative delays and provide greater flexibility while keeping spending within council-approved budgets.

The accompanying Delegation of Authority Bylaw will return to council for consideration at a future meeting.