Agenda - Special Council - 20250211Town of Aurora
Special Meeting of Council Agenda
Date:Tuesday, February 11, 2025
Time:6 p.m.
Location:Council Chambers, Aurora Town Hall
Meetings are available to the public in person and via live stream on the Town’s YouTube channel.
To participate, please visit aurora.ca/participation.
Pages
1.Call to Order
2.Land Acknowledgement
3.Approval of the Agenda
4.Declarations of Pecuniary Interest and General Nature Thereof
5.Delegations
6.Consideration of Items Requiring Discussion
6.1 FIN25-009 - Response to Potential U.S. Tariffs 1
That Report No. FIN25-009 be received; and1.
That Staff bring forward a by-law to amend the Procurement By-
law to the February 25, 2025 Council meeting, which includes the
amendments identified in this report, and any other amendments
that may be required to implement Council’s decision.
2.
7.Confirming By-law
7.1 By-law Number XXXX-25 - Being a By-law to confirm actions by Council
resulting from a Special Meeting of Council on February 11, 2025
9
8.Adjournment
100 John West Way
Aurora, Ontario
L4G 6J1
(905) 727-3123
aurora.ca
Town of Aurora
Council Report
No. FIN 2 5 -0 09
Subject: Response to Potential U.S. Tariffs
Prepared by: Anna Ruberto, Manager, Procurement Services
Department: Finance
Date: February 11, 2025
_
Recommendation
1. That Report No. FIN25-009 be received; and
2. That Staff bring forward a by-law to amend the Procurement By-law to the February
25, 2025 Council meeting, which includes the amendments identified in this report,
and any other amendments that may be required to implement Council’s decision.
Executive Summary
This report outlines the impacts and options the Town can use to respond to potential
tariffs with the United States of America.
Tariffs on Canadian goods could be applied in early March by the United States
The Town must abide by trade treaties in setting the open competition
procurement threshold
Almost all of the Town’s current procurements are with Canadian suppliers
Increasing the procurement thresholds can support more Canadian purchasing
The Procurement By-law can be amended to support Canadian procurement
while managing trade treaty obligations
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February 11, 2025 2 of 8 Report No. FIN25-009
Background
Tariffs on Canadian goods could be applied in early March by the United States
The US President planned to implement tariffs on Canadian imports of 10 percent on
energy and 25 percent on everything else on February 4. The day before these tariffs
were to take effect, the tariffs were deferred for 30 days after an agreement was
reached by the Canadian Prime Minister and US President.
On February 5, the Mayor directed staff to undertake research and provide advice to
Council to review and recommend amendments to the Town’s Procurement By-law to
prioritize Canadian businesses in our procurement processes both locally and nationally
in accordance with applicable trade agreements and regulations. This report provides
information which can support this direction.
The Town must abide by trade treaties in setting the open competition procurement
threshold
The Canadian government has trade treaties, both internally within Canada and
internationally. To ensure that the Town meets the requirements of the trade treaties
the open competition threshold in the Procurement By-law must align with them. Table
1 shows the trade treaties and the applicable thresholds for goods, services and
construction contracts.
Table 1
Canadian Trade Treaties with Thresholds
Treaty Goods Services Construction
Canadian Free Trade Agreement
(CFTA) – Canada only
$133,800 $133,800 $334,400
Canada – Chile Free Trade Agreement $134,300 $134,300 $8,800,000
Comprehensive and Progressive
Agreement for Trans-Pacific
Partnership (CPTPP)
$229,600 $229,600 $8,800,000
Canada-Colombia Free Trade
Agreement
$134,300 $134,300 $8,800,000
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February 11, 2025 3 of 8 Report No. FIN25-009
Treaty Goods Services Construction
Canada-European Union
Comprehensive Economic and Trade
Agreement (CETA)
$229,600 $229,600 $8,800,000
Canada-Honduras Free Trade
Agreement
$134,300 $134,300 $8,800,000
Canada-Korea Free Trade Agreement $100,000 $100,000 $8,800,000
Canada-Panama Free Trade
Agreement
$134,300 $134,300 $8,800,000
Canada-Peru Free Trade Agreement $167,800 $167,800 $8,800,000
Canada-Ukraine Free Trade Agreement $229,600 $229,600 $8,800,000
Canada-United Kingdom Free Trade
Agreement
$229,600 $229,600 $8,800,000
World Trade Organization-Agreement
on Government Procurement (WTO-
GPA)
$229,600 $229,600 $8,800,000
Source: https://www.canada.ca/en/treasury-board-secretariat/services/policy-
notice/contracting-policy-notice-2023-6-trade-agreements.html
Analysis
Almost all of the Town’s current procurements are with Canadian suppliers
Most of the suppliers that the Town procures goods and services from are located in
Canada. Of the 2515 suppliers the Town works with only 18 are from the US which is 0.7
percent of the total suppliers. These suppliers provide goods or services which we are
typically not able to procure within Canada and have been engaged through non-
standard procurements. The Town also has the other international vendors including
one each from Australia, Italy and the United Kingdom.
Increasing the procurement thresholds can support more Canadian purchasing
The Procurement By-law includes a variety of options for procurement with the main
types being:
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February 11, 2025 4 of 8 Report No. FIN25-009
Low-value procurements: Less than $25,000 and requires a quote
Mid-value procurements: Invitational procurements to a minimum of three
suppliers between $25,000 and less than $50,000
Open competition procurements: Valued at $50,000 and up and posted publicly
Non-standard procurements: These follow the guidelines outlined in the
procurement by-law
The open competition procurement process ensures that the Town aligns with the trade
treaties. As per Table 1 above, the lowest trade treaty threshold is at $100,000. This
means that the Town could increase the high-value procurement threshold to $100,000
and still meet the requirements of the trade treaties.
The Procurement By-law can be amended to support Canadian procurement while
managing trade treaty obligations
There are changes that can be enacted within the Procurement By-law which will enable
the Town to support more Canadian procurement while still meeting the trade treaty
obligations. The changes can also support abiding with trade treaties where the other
participants are also acting in good faith. Table 2 outlines proposed amendments to the
by-law which can support these objectives.
Table 2
Recommended changes to the procurement policy
Section Edit Type Recommended changes
1.2 Principles Add bolded
text to 3rd
bullet
reciprocal non-discrimination and geographic
neutrality with respect to its trading partners in
accordance with trade treaty obligations so long
as treaty partners are acting in good faith;
6.7.2 Low-
Value
Procurement
Add bolded
text to first
paragraph
Where the Procurement Value is below the Low-
Value Purchase Threshold and the Deliverables
are not covered under an existing Standing Offer
or Qualified Supplier Roster, Departments may
make Low-Value Procurements without the
involvement of Procurement Services.
Preference should be given to Canadian suppliers
or to vendors that use Canadian-made products
or Canadian-based services, where possible.
Page 4 of 9
February 11, 2025 5 of 8 Report No. FIN25-009
Section Edit Type Recommended changes
6.7.3 Mid-Value
Procurement
(Invitational
Competition)
Add bolded
text to first
paragraph
A Mid-Value Procurement uses an Invitational
Competition, in which Bids are solicited from a
minimum of three Suppliers and is the standard
method of Procurement when the Procurement
Value is between the Low-Value Purchase
Threshold and the Open Competition Threshold.
Preference should be given to Canadian suppliers
or to vendors that use Canadian-made products
or Canadian-based services, where possible.
6.7.4 Open
Competition
Append to end
of section
Bids submitted by suppliers that are located
wholly outside of Canada and in countries not
acting in good faith of trade treaties will not be
considered, unless deemed in the discretion of
the PGC to be essential for the operation of the
Town or if no other viable Bids, as determined in
the discretion of the PGC, are submitted.
6.8 Non-
Standard
Procurement
Remove
bolded text in
last paragraph
Under no circumstances will a Non-Standard
Procurement be used for the purpose of
avoiding competition among Suppliers or in a
manner that discriminates against or advantages
Suppliers based on geographic location.
Schedule A –
Glossary of
Terms
Add to section “Acting in good faith of trade treaties” means
that the respective country is honouring the
terms of their trade treaty and not applying
additional tariffs.
Schedule B –
Exclusions
1. Excluded
Acquisitions
and
Expenditures
Add bolded
text to part (i)
This policy does not apply with respect to
competitive Procurement requirements when
the Procurement is otherwise exempt from
Open Competition requirements under all
applicable trade agreements, so long as the
supplier’s country is acting in good faith of the
treaty, and it is in the best interests of the Town
to proceed with a Non-Standard Procurement.
As this issue continues to evolve, further amendments may be required to the
Procurement By-law.
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February 11, 2025 6 of 8 Report No. FIN25-009
Staff were in the process of reviewing the procurement thresholds to consider inflation
and business needs since they were last approved in 2022. Staff recommend that these
thresholds be increased, even if the tariffs are not imposed. Table 3 outlines
recommended increases to Schedule C – Procurement Thresholds Table 1 and
Schedule D – Threshold and Authorization Schedule Table 1 – Table of Authority for
low-value, mid-value and open competition procurements.
Table 3
Recommended changes to schedule C and D
Procurement type Current Threshold Recommended Amendment to
Schedule C Threshold
Low-value Below $25,000 Below $50,000
Mid-value $25,000 to less than $50,000 $50,000 to less than $100,000
Open Competition $50,000 and over $100,000 and over
Advisory Committee Review
None
Legal Considerations
Municipalities are required to adhere to the various trade treaties outlined in the report,
which apply for procurements above the specified thresholds. Generally, the treaties
require that procurements that fall above the thresholds do not impose criteria that are
designed to favour local goods or services. The most relevant treaty impacting Aurora,
given the thresholds and that the large majority of Town suppliers are Canadian, is the
Canadian Free Trade Agreement (CFTA), which prohibits various practices that favour
local vendors or suppliers. The CFTA does not prevent entities from limiting its
tendering to Canadian vendors and suppliers if done in compliance with other
international treaties, which require that procurements above the thresholds not
discriminate against the entities that are party to such agreements.
Additionally, by-law, or by-law amendments, have to be enacted with respect to matters
that are within municipal powers and made in good faith. Consequently, the purpose of
the proposed amendments should be tied to matters that affect the municipality, as
matters of foreign trade or foreign policy are within the federal jurisdiction. If
amendments are to be made to the Procurement By-law to respond to challenges
Page 6 of 9
February 11, 2025 7 of 8 Report No. FIN25-009
resulting from the imposition of tariffs by the USA, the scope of the by-law changes
should be limited to this purpose.
Financial Implications
There are no direct financial implications of this report. Should US tariffs be
implemented suppliers may be able to seek an increase to their current contracted rates
resulting from tariffs increasing their costs. The uncertainty about tariffs is likely to
impact new contracts and procurements currently out for bid.
Communications Considerations
Communications will ensure any modifications to the Procurement By-law are posted
on the Town’s website where applicable.
Climate Change Considerations
Procurement of more locally sourced goods can reduce the distance to transport goods
resulting in the reduction of greenhouse gas emissions.
Link to Strategic Plan
A focus on more Canadian, and specifically locally sourced procurement, aligns with the
Economy pillar of success objective: Supporting small business and encouraging a more
sustainable business environment and the Natural Environment pillar through objective:
Promoting and advancing green initiatives.
Alternative(s) to the Recommendation
1. Council provide direction.
Conclusions
There is currently uncertainty if tariffs will be implemented by the US government. This
report outlines steps that can be taken to amend the Procurement By-law to protect the
Town from trade treaty partners not acting in good faith, while also supporting more
Canadian sourced procurements and suppliers.
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February 11, 2025 8 of 8 Report No. FIN25-009
Attachments
None
Previous Reports
None
Pre-submission Review
Agenda Management Team review on February 7, 2025
Approvals
Approved by Rachel Wainwright-van Kessel, CPA, CMA, Director, Finance
Approved by Doug Nadorozny, Chief Administrative Officer
Page 8 of 9
The Corporation of The Town of Aurora By-law Number XXXX-25 Being a By-law to confirm actions by Council resulting from a Special Meeting of Council on February 11, 2025. The Council of the Corporation of The Town of Aurora hereby enacts as follows:
1. That the actions by Council at its Special Meeting of Council held on February 11,
2025, in respect of each motion, resolution and other action passed and taken by
the Council at the said meeting is hereby adopted, ratified and confirmed.
2. That the Mayor and the proper officers of the Town are hereby authorized and
directed to do all things necessary to give effect to the said action or to obtain
approvals where required and to execute all documents as may be necessary in
that behalf and the Clerk is hereby authorized and directed to affix the corporate
seal to all such documents.
Enacted by Town of Aurora Council this 11th day of February, 2025.
Tom Mrakas, Mayor
Michael de Rond, Town Clerk
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