[HISTORY: Adopted by the Village Council of the Village of New Haven as indicated in article histories. Amendments noted where applicable.]
Contracts — See Ch. 26.
Article I Purchasing Procedures
Article II Payment of Recurring Fluctuating Invoices
[Adopted 12-8-2009 by Ord. No. 302]
The Village President shall act as the designated Purchasing Agent of the Village, unless the Village Council, by a majority resolution, designates another person to act as the Purchasing Agent. Any designation beyond the Village President shall be filed in writing with the Clerk. Unless otherwise allowed under this article, every purchase, purchase order or expenditure in excess of $2,500 shall be approved by the Village Council before being made/issued. The Village Council shall adopt any necessary rules governing the terms of such purchases. Under no circumstance shall the Purchasing Agent divide, change or alter purchases for the purpose of lowering the amount of any purchase below the $2,500 threshold.
Purchases of supplies, materials or equipment, the total cost of which is less than $2,500, shall be made on the open market. Such purchases shall, where practicable, be based upon at least three competitive bids, and shall be awarded to the lowest qualified bidder. The Village President, or person designated by the Village Council as the Purchasing Agent, may solicit bids verbally by telephone or request written bids. Where written bids are solicited, such bids shall be kept by the Village as a public record for six months after purchase is completed. The Village and the designated Purchasing Agent reserve the right to reject any and all bids, written or otherwise.
Any expenditure for supplies, materials, equipment, construction projects or contracts obligating the Village in an amount in excess of $2,500 shall be governed by the provisions of this § 89-3 and its subsections:
Such expenditures shall be made the subject of a written and reviewed contract when directed by the Village Council. A purchase order, with all supporting documentation, shall be a sufficient written contract in cases where the expenditure is in the usual and ordinary course of the Village's affairs. The Village shall adopt and maintain a "purchase order policy" which sets forth the minimum requirements for a valid purchase order. This policy shall be approved by the current Village CPA to ensure that the policy fulfills the needs of the audit process and is defined in a way to ensure compliance. Any person, department head or entity submitting a purchase order under this article must comply with the policy and noncomplying purchase orders shall be rejected unless good cause is demonstrated to the Village Council and the Village Council votes, by a majority, to approve the purchase order as is.
The Village Council, or a person designated by it, shall solicit bids from a reasonable number of such qualified prospective bidders as are known, by sending each a copy of the notice requested bids and notice thereof shall be posted in the Village Hall. Bids may also be solicited by newspaper advertisement when directed by the Village Council.
The Village Council shall prescribe the amount of any security to be deposited with any bid, which deposit shall be in the form of cash, certified or cashier's check, or bond written by a surety company authorized to be business in the State of Michigan and otherwise acceptable to the Village Council. The amount of such security shall, when possible, be expressed in terms of percentage of the bid submitted. The Village Council shall fix the amount of the performance bond, and in the case of construction contracts, the amount of the labor and materials bond to be required of the successful bidders.
Bids shall be opened in public at the time and place designated in the notice requesting bids and in the presence of either the Village Council or the Village Clerk and at least one other Village Official, preferably the head of the department most closely concerned with the subject of the contract. In the event that the bids are not opened in the presence of the Village Council, the bids shall thereupon be carefully examined and tabulated and reported to the Village Council. After tabulation, all bids may be inspected by the competing bidders.
When such bids are submitted to the Village Council, if the Council shall find any of the bids to be satisfactory and in compliance with the request, it shall accept the bid. Such award may be by a written resolution or ordinance. The Village Council shall have the right to reject any or all bids, and to waive irregularities in bidding, and to accept bids which do not conform in every respect to the bidding requirements, all in the best interests of the Village.
At the time any contract is executed, the contractor shall file a bond executed by a surety company authorized to do business in the State of Michigan and otherwise acceptable to the Village Council to the Village conditioned to pay all laborers, mechanics, subcontractors and material men, as well as all just debts, dues and demands incurred in the performance bond when one is required. Said contractor shall also file evidence of public liability insurance in an amount satisfactory to the Village Council and agree to hold the Village harmless from loss or damage caused to any person or property by reason of the contractor's negligence.
All bids and deposits of certified or cashier's checks may be retained until the contract is awarded and signed. If any successful bidder fails or refuses to enter into the contract awarded to him within 10 days after the same has been awarded, or file any bond required within the same time, the deposit accompanying his bid shall be forfeited to the Village, and the Village Council may, in its discretion, award the contract to the next lower qualified bidder, or said contract may be readvertised.
Competitive bidding shall not be required in the following situations:
Where the subject of the contract is other than a public work or improvement costing in excess of $2,500, and the product, service or material contracted for is not competitive in nature and no advantage to the Village would result from requiring competitive bidding or the Village Council authorizes execution of a contract without competitive bidding by an approved motion of the Council.
In the employment of professional services.
Where the Village Council determines that the public interest will be best served by purchase from, or a joint purchase from another unit of government.
Where the Village elects to undertake the work itself.
In case of an emergency, the Village President or the Purchasing Agent may purchase directly any supplies, materials or equipment, the immediate procurement of which is necessary to the continuation of the work of any Village Department, or which is necessary for the health, safety and welfare of the Village, or its inhabitants. In the event any emergency purchases are made in accordance with this section, a detailed report shall be made by the Village Clerk or the person requesting said emergency purchases, and shall be preserved by the Village Clerk for a period of two years. A report of all such purchases shall be made to the Village Council by the Village Clerk at the next regular meeting of the Village Council.
The responsibility for the inspection and acceptance of all materials, supplies and equipment shall rest with the Village Department for which said materials, supplies or equipment have been ordered.
Whenever any Village property, real or personal, is no longer needed for corporate or public purposes, the same may be offered for sale in the following manner, except as otherwise provided by law:
Personal property, not exceeding $1,500 in value, may be sold for cash by the Village President or another person designated by the Village Council after receiving quotations or competitive bids therefor for the best price obtainable.
Personal property with a value in excess of $1,500 may be sold after advertising and receiving competitive bids as provided in § 89-3 hereof.
Real property having an assessed value less than $1,500 may be sold in the same manner as personal property of a value of $1,500 or less.
The Village recognizes that it must function as a business and the timely payment of certain bills is in the best interest of the Village. The Village President is authorized to make such payments in the ordinary course. Such expenditures include monthly utilities, rents by contract, employment obligations, Council-approved contracts, etc. These bills shall be paid timely to avoid late fees and interest. A report of "bills as paid" shall be made to the Village Council.
[Adopted 3-11-2014 by Ord. No. 321]
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
- RECURRING FLUCTUATING INVOICE
- Those invoices regularly paid by the Village on a regular basis but which the specific amount is not ascertainable at the time of the regularly scheduled Council meeting preceding the usual payment date and which may cause the Village to incur additional costs and expenses if approval of such payment does not occur until the Council meeting following receipt of the specific amount.
Council acknowledgment. For a recurring fluctuating invoice to be paid prior to Council approval, the Council shall acknowledge by resolution such account on which the recurring fluctuating invoice is to be paid by number or specific identifying information with a range of the anticipated payment amount.
Payment. Once an account requiring payment of a recurring fluctuating invoice is identified pursuant to Subsection A, a recurring fluctuating invoice on such an account may be paid upon receipt provided the payment amount is in the range identified pursuant to Subsection A and notice of prior payments have been provided pursuant to Subsection C.
Notice to Council. Each recurring fluctuating invoice paid pursuant to Subsection B shall be reported to the Council at the next occurring Council meeting for final approval.
Termination. The Council, by majority vote, may remove acknowledgment of an account on which payment may be made pursuant to Subsection B at any time. If payment is made on a recurring fluctuating invoice and not reported to the Council pursuant to Subsection C, no further payments shall be authorized. If payment is made on a recurring fluctuating invoice and outside of the range identified pursuant to Subsection A, no further payments shall be authorized.