Town of Chili, NY
Monroe County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Town Board of the Town of Chili 4-3-1996. Amendments noted where applicable.]
GENERAL REFERENCES
Code of Ethics — See Ch. 36.

§ 115-1 Ethical conduct.

Goods and services which are not required by law to be procured pursuant to competitive bidding must be procured in a manner so as to assure the prudent and economical use of public moneys, in the best interests of the taxpayers, to facilitate the acquisition of goods and services of maximum quality at the lowest possible cost under the circumstances, and to guard against favoritism, improvidence, extravagance, fraud and corruption. To further these objectives the Town Board is adopting internal policies and procedures governing all procurement of goods and services which are not required to be made pursuant to the competitive bidding requirements of General Municipal Law § 103 or of any other general or special law.

§ 115-2 Town's purchasing organization.

A. 
Many large municipalities have a centralized purchasing function. This is necessary when large numbers of bids must be created and processed. The Town of Chili relies upon state and county contracts to satisfy many of its purchasing needs and is able to avoid the necessity of having a centralized purchasing system. Instead, the Town relies upon a decentralized system where individual departments assist in the creation and processing of bids.
B. 
The Town is allowed to purchase off of certain state and county bids by law, and often does. When making such a purchase, the state or county bid award number must be placed on the purchase order or voucher. Departments may request copies of a particular state bid award at any time from the New York State Office of General Services; county bid awards may be requested from the County Purchasing Department. (Any questions, see the Director of Finance.)

§ 115-3 Responsibilities of departmental purchasers.

A. 
Each department should have one person assigned to handle the paperwork necessary for the processing of departmental purchases. This person should become well-acquainted with the purchasing process, understanding the procedures used by the Town of Chili, in accordance with New York State law. This process should never be circumvented, and it is the responsibility of all persons involved in purchasing to ensure that it operates as smoothly as possible.
B. 
All purchases and requests for purchases must be:
(1) 
Written on a purchase order/voucher;
(2) 
Itemized to include the name of the claimant, a description of the goods and/or services, and amount of claim;
(3) 
Identified with the fund and budget line from which payment is to be made and that such appropriation is within the budget;
(4) 
Identified if subject to a quote or competitive bid process;
(5) 
Approved and authenticated by the department head.
C. 
All documentation such as the oral or written quotes, RFP, public bids, approval process, resolutions, statement of awards and receipt of goods are to be packaged and made a part of the voucher.

§ 115-4 Determination if procurement is subject to bidding.

The procedures for determining whether a procurement of goods and services is subject to competitive bidding and documenting the basis for any determination that competitive bidding is not required by law is as follows:
A. 
The department head shall initially review every purchase to determine whether it is a purchase contract or a public works contract. The department head must also review every purchase anticipated for the fiscal year, group each purchase into items of similar nature routinely purchased from a vendor or a group of vendors, and determine aggregate dollars anticipated for each group of similar nature items. From this the department head makes the determination if, over the course of the fiscal year, the Town will spend in excess of the competitive bidding thresholds for the same or similar items or services.
B. 
The department head shall document each step of the process in the above subsection and most importantly document if aggregate anticipated purchase falls below or above the competitive bidding thresholds and any exceptions to following the competitive bidding process (i.e., items will be purchased from state or county bid awards).

§ 115-5 Purchasing process and required approvals.

The methods of procurement to be used are as follows:
A. 
For aggregate annual purchase contracts for items of a similar nature:
(1) 
Under $1,000: Purchase may be made at the discretion of the department head;
(2) 
$1,001 to $3,000: documented telephone quotes from at least three separate vendors (if available), with final approval by the Town Supervisor;
(3) 
$3,001 to $10,000: Formal written quotes from at least three separate vendors (if available), with final approval by the Town Board;
(4) 
Over $10,000: Requires a public bid per General Municipal Law § 103 unless purchased under a state or county bid award with Town Board approval; Town Board awards bid.
B. 
For aggregate annual public work projects/contracts for items of a similar nature:
(1) 
Under $1,000: Purchase may be made at the discretion of the Commissioner of Public Works/Superintendent of Highways;
(2) 
$1,001 to $3,000: Documented telephone quotes from at least three separate vendors (if available), with final approval by the Commissioner of Public Works/Superintendent of Highways:
(3) 
$3,001 to $10,000: Formal written quotes from at least three separate vendors (if available), with final approval by the Town Board;
(4) 
$10,001 to $20,000: Prices to be obtained by "request for proposal" (RFP) from at least three separate vendors (if available), with final approval by the Town Board;
(5) 
Over $20,000: Requires a public bid per General Municipal Law § 103 unless purchased under a state or county bid award with Town Board approval; Town Board awards bid.
C. 
For purchase of professional services/consultants: Prices to be obtained by "request for proposal" (RFP) from at least three separate vendors (if available), with final approval by the Town Board. EXCEPTION: Should a professional service provider be designated on a retainage position based upon Town Board evaluation and determination, then the services provided and the terms of service shall not be subject to further RFP procedure and the Town Board may contract periodically for supplemental services as needed and upon negotiated terms of payment primarily because of the determination of the Board on a previous basis as to desirability to have the ongoing availability of such services and the comprehensive retainer understanding of the service provider.

§ 115-6 Determination to quote or bid.

A. 
The above price ranges refer to the total annual expense for an item or group of closely related items. If regular purchases are made during the year, the anticipated total expense is to be used to determine which price range category applies.
B. 
For example, the anticipated annual expense for janitorial services by contract is $500 each month. Such contractual services would fall within the $3,001 to $10,000 range for purchases and would require three formal written quotes and final approval from the Town Board. This is because the annual cost is $6,000.

§ 115-7 Quotes. [1]

A. 
All quotes, written or oral, must contain the following information: name and address of the vendor, name and phone number of the contact person, date of quote and signature of person obtaining quotes. In addition, written quotes must contain the signature of the contact person.
B. 
All quotes shall be broken down by units and price per unit when applicable and shall include additional charges such as freight, installation charges, etc. Written public work quotes shall specify the work to be done.
C. 
Quoted prices are normally for one-time purchases. However, if such purchases are routinely made during the year (i.e., copier paper), quoted prices can be requested for a period up to the end of the year. In this case, departments should request the quote in writing, even if the amount is under $3,000.
[1]
Editor's Note: The "Request for Quotation” form, which accompanied the resolution adopting this chapter, is on file in the office of the Town Clerk.

§ 115-8 Awards to other than lowest responsible dollar offerer.

Whenever any contract is awarded to other than the lowest responsible dollar offerer, the reasons such an award is in the best interest of the Town of Chili shall be documented and maintained with the documentation of quotes, approval, purchase offer and voucher.

§ 115-9 Exemptions.

The Town Board sets forth the following circumstances when, or types of procurement for which, in the sole discretion of the Town Board, the solicitation of alternative proposals or quotations will not be in the best interest of the Town of Chili:
A. 
Emergencies where time is a crucial factor as set forth in General Municipal Law § 103(4);
B. 
Procurement for which there is no possibility of competition, primarily sole source items;
C. 
Procurement of professional services which, because of the confidential nature of the services, do not lend themselves to procurement through solicitation;
D. 
Procurement for which solicitations of competition would not be cost effective, such as purchase contracts below $500 and contracts for public works below $2,000.

§ 115-10 Annual review.

The Town Board shall annually review these policies and procedures. The Town Supervisor shall be responsible for conducting an annual review of the procurement policy and for an evaluation of the internal control structure established to ensure compliance with the procurement policy.

§ 115-11 Unintentional failure to comply.

The unintentional failure to fully comply with the provisions of General Municipal Law § 104-b shall not be grounds to void action taken or give rise to a cause of action against the Town of Chili or any officer or employee thereof.

§ 115-12 When effective.

These policies and procedures shall become effective as of the date of adoption.