INNISFAIL – With the country now facing new American tariffs, the Town of Innisfail has established procurement guidelines for its management team that has an emphasis on being local.
On March 17, Todd Becker, the town’s chief administrative officer, told council that because of ongoing American tariffs threats the provincial government has directed municipalities, school boards and Crown corporations to purchase all necessary goods and services from businesses based in Alberta, Canada, or other countries where there is an existing free trade agreement.
Becker added administration made a call and exchanged messages with Alberta Municipal Affairs officials and a letter from the minister is expected to be sent to municipalities outlining the government’s expectations.
In his presentation to council, he reminded members that Alberta municipalities are subject to the New West Partnership Trade Agreement and the Canadian Free Trade Agreement, which are both aimed to reduce trade barriers across the provinces and directs municipalities how to procure goods and services over a certain amount.
“Regardless of desires to procure a certain way, the town is required to procure its good and services over a set threshold legally through the trade agreements,” said Becker, adding the town is also obligated to meet the conditions under its own procurement policy,
“What I've asked of management is for the town is to be cognizant and be aware of where we are purchasing materials, goods or supplies, especially with larger capital projects,” Becker told the Albertan. “I've asked for strong understanding of where those materials are coming from, and then we came up with procurement objectives.
“Management has not been directed to evaluate further than the supplier with the intent of challenging the respective project contractors to procure as local as possible.”
In his report to council Becker outlined the following procurement guidelines:
• achieving cost-effectiveness;
• ensuring quality and timely delivery;
• optimizing supplier relationships;
• managing risks;
• alignment with organizational goals, and
• adhering to ethical and legal standards.
“Basically, it’s just understanding where we are procuring and who's applying that material,” said Becker. “It's management oversight of how we procure our goods. We need to procure responsibly.”
He said it is essential that everyone at the town working on the procurement issue has a “strong understanding” of what is defined as “local”.
Becker’s report gives a definition of local for the town as “primary local”, regional local being in Alberta, and national local being in Canada.
“Even though management is committed to procure local, there is a likelihood that some of the materials for projects will be sourced from the U.S.,” said Becker.
“Management has been directed to undertake an evaluation of project materials to understand where they are coming from and what options are available.”
As for the number of goods and materials that are typically procured from the U.S., Becker said that information was not immediately available but estimated it as “not a lot”, maybe just specialty items.
Becker told council that understanding tariff impacts and the increasing financial pressures on municipalities will be part of the upcoming 2026 budget objective discussions.
“We even talked to our local businesses,” he said. “Most of them we talked to still don't understand the impact that it's going to present, so it's really hard to manage that.”
As for even a preliminary forecast of what the cost could be for the pending American tariffs, as unpredictable as the issue might be, Becker said that issue has not yet “gone into full disclosure” of the anticipated cost to the town for each procurement item.
“Management is tasked to do that analysis,” said Becker. “Do I have a number knowing that, ‘hey, 25 per cent of our goods and supplies? Am I going to be impacted?’
“I can’t say that. We have not done that deeper level analysis.”
