City of Hoboken, NJ
Hudson County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Mayor and Council of the City of Hoboken 9-2-1987 by Ord. No. V-122.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Department of Administration — See Ch. 4.
Administrative affairs — See Ch. 6.
Budget operations — See Ch. 16.
[1]
Editor's Note. This ordinance also repealed former Ch. 60, Purchasing, adopted 8-17-1977 by Ord. No. C-84.

§ 60-1 Title.

This chapter shall be known and may be cited as the "Purchasing Ordinance of the City of Hoboken."

§ 60-2 Word usage; definitions.

A. 
The word "shall" is always mandatory and not directory.
B. 
For the purposes of this chapter, the following terms, phrases, words and their derivatives shall have the meanings given herein:
BUSINESS ADMINISTRATOR
The Business Administrator of the City of Hoboken in the County of Hudson.
CITY
The City of Hoboken in the County of Hudson.
CONTRACTUAL SERVICES
Includes all telephone, gas, water, electric light and power service, repair or maintenance of equipment, machinery and other City-owned personal and real property. The term shall not include professional and other contractual services which are, by their nature, unique and not subject to competition.
COUNCIL
The Council of the City of Hoboken in the County of Hudson.
EXTRAORDINARY UNSPECIFIABLE SERVICES
Services which are specialized and qualitative in nature requiring expertise, extensive training and proven reputation in the field of endeavor.
PROFESSIONAL SERVICES
Services rendered or performed by a person authorized by law to practice a recognized profession, whose practice is regulated by law, and the performance of which services requires knowledge of an advanced type in a field of learning acquired by a prolonged formal course of specialized instruction and study as distinguished from general academic instruction or apprenticeship and performance of work that is original and creative in character in a recognized field of artistic endeavor.
PURCHASE
A transaction for a valuable consideration or acquiring an interest in supplies, contractual services and property except real property or any interest therein.
PURCHASING AGENT
The Purchasing Agent of the City of Hoboken in the County of Hudson.
[Amended 5-5-2010 by Ord. No. Z-37]
SUPPLIES
Includes all supplies, materials and equipment.
USING AGENCY
Any department, agency, commission, bureau or other unit in the City government using supplies or procuring contractual services as provided for in this chapter.

§ 60-3 Centralized purchasing system; establishment of position of Purchasing Agent.

[Amended 5-5-2010 by Ord. No. Z-37]
A centralized purchasing system is hereby established as a Division of Purchasing in the Department of Administration. There is hereby established the position of Purchasing Agent who shall be appointed by the Business Administrator. The Business Administrator shall serve as the Purchasing Agent until the office is filled by appointment.

§ 60-4 Powers and duties of Purchasing Agent.

[Amended 5-5-2010 by Ord. No. Z-37]
The Purchasing Agent shall have the powers and duties prescribed by this chapter:
A. 
The Purchasing Agent is hereby authorized and it shall be his/her duty to purchase or contract for all supplies and services needed by the City in accordance with purchasing procedures, as prescribed by this chapter and such rules and regulations as the Business Administrator shall adopt for the internal management and operation of the Division of Purchasing.
B. 
The authority of the Purchasing Agent shall not include the construction of buildings, major street and parks improvements and other related projects.
C. 
Except as herein provided, it shall be unlawful for any City officer or employee to order, to purchase or to make any contract within the purview of this Article other than through the Division of Purchasing, and any purchase order or contract made contrary to the provisions hereof shall not be approved by the Purchasing Agent, and the City shall not be bound thereby.
D. 
In addition to the purchasing authority confined herein, the Purchasing Agent shall:
(1) 
Act to procure for the City the maximum value for each dollar of expenditure.
(2) 
Discourage uniform bidding and endeavor to obtain full and open competition insofar as possible on all purchases and sales.
(3) 
Keep informed of current developments in the field of purchasing, prices, market conditions and new products and secure for the City the benefit or research done in the field of purchasing by other governmental jurisdictions, national technical societies and trade and business organizations.
(4) 
Prescribe and maintain such forms as he shall find reasonably necessary to the operation of this Article and the administration of the centralized purchasing system.
(5) 
Prepare, adopt and maintain a vendor's catalog file. Said catalog file shall be filed according to materials and shall contain descriptions of vendors' commodities.
(6) 
Explore the possibilities of buying in bulk in order to take full advantage of discounts.
(7) 
Act to procure to the City all federal tax exemptions to which it is entitled.
(8) 
Prepare and adopt a standard purchasing nomenclature for using agencies and suppliers.
(9) 
Prepare and secure, with the cooperation of the various City departments and agencies, standard and written specifications for supplies used by the various branches of the City government.
(10) 
Establish a bidders list and a policy covering the organization, structure and maintenance of the bidders list.

§ 60-5 Rules and regulations.

The Business Administrator shall establish and amend, when necessary, all rules and regulations authorized by or promulgated under this chapter and any other rules and regulations necessary to its operation.

§ 60-6 Using agencies.

[Amended 5-5-2010 by Ord. No. Z-37]
All using agencies, either by or with the authorization of the head of the department under which the using agency operates, shall file with the Division of Purchasing detailed requisitions or estimates of their requirements in supplies and the contractual services in such manner at such time and for such future periods as the Purchasing Agent shall prescribe. The Purchasing Agent shall examine each requisition or estimate and shall have the authority to revise it as to quantity, quality or estimated cost, but revision as to quality shall be in accordance with the standards and specifications established pursuant to this chapter.

§ 60-7 Ethics and voidable contracts.

A. 
Any purchase order or contract within the purview of this chapter in which any officer or employee of the City is financially interested, directly or indirectly, shall be void.
B. 
The Purchasing Agent and every officer and employee of the City are expressly prohibited from accepting, directly or indirectly, from any person, company, firm or corporation to which any purchase order or contract is or might be awarded any rebate, gift, money or anything of value whatsoever.
[Amended 5-5-2010 by Ord. No. Z-37]

§ 60-8 Competitive bids; exception.

[Amended 5-5-2010 by Ord. No. Z-37]
All purchases of and contracts for supplies and contractual services and all sales of obsolete equipment shall, except as specifically provided herein, be based whenever possible on competitive bids. The Purchasing Agent may purchase supplies or contractual services under any contract for such supplies or contractual services entered into on behalf of the State of New Jersey by the Division of Purchase and Property in the Department of the Treasury without advertising for bids in accordance with the Revised Statutes of the State of New Jersey.

§ 60-9 Procedure for purchases over statutory limit.

A. 
All supplies and contractual services, except as otherwise provided herein, when the estimated aggregate value thereof shall exceed the New Jersey statutory threshold established by N.J.S.A. 40A:11-4, shall be purchased by formal, written contact from the lowest responsible bidder, after due notice inviting proposals as required by the Revised Statutes of New Jersey.
B. 
Authorization to publicly advertise for formal bids shall be initiated by approval of the Council.
C. 
Formal bids shall be received by the Council unless otherwise ordered.
D. 
The Purchasing Agent, Business Administrator and using agency head shall review bids and submit recommendations as to the award to the Council.
[Amended 5-5-2010 by Ord. No. Z-37]
E. 
The Council shall award or reject bids under this section.

§ 60-10 Procedure for purchases under statutory limit.

A. 
All purchases of supplies, real property, contractual services, professional services and extraordinary unspecifiable services of less than estimated aggregate value of the New Jersey statutory threshold established by N.J.S.A. 40A:11-3 may be made in the open market without newspaper advertisement and without observing the procedure prescribed by § 60-9 of this chapter for the award of formal contracts, but all purchases shall be made as required by the Revised Statutes of New Jersey.
B. 
All requisitions shall be approved by a using agency head.
[Amended 5-5-2010 by Ord. No. Z-37]
(1) 
All open-market purchases over 15% of the current statutory bid threshold applicable to the City of Hoboken shall, whenever possible, be based on at least three competitive bids and shall be awarded to the lowest responsible bidder.
(2) 
The Purchasing Agent shall solicit bids in the manner provided by law, including but not limited to:
(a) 
Direct-mail request to prospective vendors;
(b) 
Telephone; and
(c) 
Public notice.
(3) 
The Purchasing Agent shall keep a record of all open orders and all competitive bids submitted in connection herewith.

§ 60-11 Emergency purchases.

[Amended 5-5-2010 by Ord. No. Z-37; 10-21-2015 by Ord. No. 380]
A. 
Criteria for emergency purchases: An emergency may exist only if it fulfills the requirements of an emergency under N.J.A.C. 5:34-6.1 and these guidelines:
(1) 
The emergency is a specific, definable danger to the public health, safety, or welfare; and
(2) 
The emergency actually exists or imminently will exist because of unexpected circumstances, and it requires the immediate delivery of goods or services.
(3) 
The emergency purchasing procedure can only be used if the need for the emergency purchase of goods or services both could not have been reasonably foreseen; and has arisen notwithstanding a good faith effort to plan for required goods or services.
(a) 
An emergency:
[1] 
Cannot be a failure to anticipate normal needs or project deadline dates.
[2] 
Cannot be the result of ignoring a situation known to be present.
B. 
Chain of command.
(1) 
If the director of a City department believes an emergency exists, the director must immediately notify, advise, and give sufficient information of the emergency to the following "notified persons:"
(a) 
The Business Administrator; or
(b) 
In his or her absence, the Mayor; or
(c) 
In his or her absence, the Director of the Office of Emergency Management; or
(d) 
In his or her absence, the Director of Public Safety.
(e) 
If none of the above is available, see below, Subsection B(3).
(2) 
The director must also, in writing, on or before the first working day after the emergency, prepare and deliver to the Business Administrator, an "Emergency Certification Form," attached Form A.[1]
(a) 
The Emergency Certification Form will include the following:
[1] 
Sufficient detail of the nature and cause of the emergency, including whether it was unforeseen or unforeseeable, and why immediate purchasing action is required;
[2] 
A request for the goods and services that are required to mitigate the emergency;
[3] 
A certification of an existing or imminent emergency, and that there are not enough currently purchased supplies or services to respond to the emergency; and
[4] 
The signature of the director.
[1]
Editor's Note: Said form is on file in the City offices.
(3) 
If an emergency occurs when none of the notified persons is available:
(a) 
The director defers a purchasing decision until one of the notified persons becomes available. However, in making this decision, the director shall weigh the potential damage to the public safety, health, or welfare that would be caused by a delay.
(b) 
If the damage to the public would be great due to a delay in waiting for a notified person, the director may purchase the necessary and proper materials or services.
[1] 
Note: Emergency purchases are costly and should be kept to a minimum. They are usually made hurriedly, on a noncompetitive basis, and at top prices. Most vendors charge a premium when supplies must be obtained immediately. By avoiding emergency orders, the City will save substantial money.
(c) 
Any and all evidence and documentation of emergency purchases must be preserved by the director, including but not limited to sales tickets, bills, delivery slips, and/or counter receipts which the supplier normally furnishes.
(d) 
This evidence must be attached to the Emergency Certification Form (Attached Form A) and be forwarded to the Business Administrator on the next work day following the date of purchase.
(e) 
The Business Administrator may reject requests which are confirmation of orders if there is reason to believe no true emergency existed at the time of Purchase.
(4) 
The notified person charged with approving the emergency purchase has the immediate responsibility to do the following:
(a) 
To always adhere to the policy adopted by the Code of the City of Hoboken, the Local Public Contracts Laws, and the New Jersey Administrative Code, including, but not limited to:
[1] 
N.J.S.A. 40A:11-6.
[2] 
N.J.A.C. 5:34-6.1 et seq.
(b) 
To determine whether an emergency truly exists;
(c) 
To ensure there are sufficient funds to carry out the work in mitigating the emergency; and
(d) 
To determine further appropriate action in accordance with Subsection B(5) and (6) infra.
(5) 
If the notified person charged with approving the emergency purchase finds there is no actual or imminent emergency, they must detail their reasons for denial in a written response to the director within four hours of the emergency purchase request.
(6) 
If the notified person charged with approving the emergency purchase finds there is an actual or imminent emergency that requires immediate delivery of goods or services, the notified person charged with approving the emergency purchase can choose between options in Subsection B(6)(a) or (b) and must do Subsection B(6)(c):
(a) 
Immediately authorize a contract for the emergency procurement of the goods and services which must be subject to the stated terms of contract below, at Subsection B(7), and:
[1] 
During the next regular working day prepare a resolution acknowledging the contract for Council action; and
[2] 
Notify the Mayor, the Director of Public Safety, and Corporation Counsel of the decision; or
(b) 
Prepare a resolution for Council action declaring the existence of an emergency and authorizing the Business Administrator to proceed with the procurement of the needed goods and services.
(c) 
Inform the Mayor, Corporation Counsel, and Office of Emergency Management of the nature and extent of the emergency and what actions have or will be taken, in writing.
(7) 
In determining whether to apply Subsection B(6)(a) or (b), the notified person charged with approving the emergency purchase should solely measure the possible consequences to the public health, safety, or welfare which might result due to delay by waiting for the Council of the City of Hoboken to convene on the emergency.
(8) 
The terms of the contract for an emergency purchase must follow N.J.S.A. 40A:11-6 and N.J.A.C. 5:34-6.1:
(a) 
Emergency contracts do not require contract bidding:
[1] 
But, whenever practicable, the Business Administrator will attempt to obtain at least two written quotes for the goods and services necessary to resolve the emergency.
[2] 
If any quotes are received verbally, the Business Administrator must document the quotes, in writing, indicating the name of the vendor and the price quoted.
(b) 
The contract awarded must be limited to the immediate needs of the emergency:
[1] 
Limited in time.
[2] 
Limited in spending.
(c) 
The emergency purchasing procedure cannot be used to enter into a contract for greater than six months.
(9) 
The City of Hoboken will be bound by any contract made by the Business Administrator which is made in accordance with this article.
(10) 
Within 30 days of issuing the emergency contract, the Business Administrator must submit an "Emergency Procurement Report" (Attached Form B)[2] to the Director of the Division of Local Government Services.
(a) 
Exception: If the Governor has formally declared an emergency in New Jersey, the Business Administrator does not have to file an Emergency Procurement Report.
[2]
Editor's Note: Said form is on file in the City offices.

§ 60-12 Inspection of purchases.

A. 
The head of the using agency shall inspect or supervise the inspection of all deliveries of supplies or contractual services to determine their conformance with the specifications set forth in the order of contract.
B. 
The Purchasing Agent shall have the authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with the specifications. In the performance of such tests, the Purchasing Agent shall have the authority to make use of laboratory facilities of any outside laboratory. The costs of such tests shall be charged to the using agency.
[Amended 5-5-2010 by Ord. No. Z-37]

§ 60-13 Inventory procedure.

[Amended 5-5-2010 by Ord. No. Z-37]
A. 
All using agencies shall submit to the Purchasing Agent, at such times and in such form as he/she shall prescribe, reports showing stocks of all supplies and those which are no longer used or which have become obsolete, worn out or scrapped.
B. 
The Purchasing Agent shall submit to all departments, prior to the sale of surplus materials as described below, a list of items no longer required to determine if they can use any of the equipment, parts and supplies listed.
C. 
The Purchasing Agent shall have the authority to transfer surplus stock to other using agencies.
D. 
The Purchasing Agent shall have the authority to sell all supplies which have become unsuitable for public use or to exchange the same for or trade in the same on new supplies. Sales under this subsection shall be made to the highest responsible bidder in accordance with the statute in such case made and provided. A record of each sale shall be made and placed on file.

§ 60-14 Cooperative purchasing.

[Amended 5-5-2010 by Ord. No. Z-37]
The Purchasing Agent shall have the authority to join with other units of government in cooperative purchasing plans as provided for in the Revised Statutes of the State of New Jersey when the best interests of the City could be served thereby.

§ 60-15 Violations and penalties.

Any person, firm or corporation found guilty of violating this chapter or any of the provisions thereof shall be punished by a fine not exceeding $500 or imprisonment for a period not exceeding 90 days, or both, in the discretion of the Judge of the Municipal Court.

§ 60-16 Construction contract bids.

[Added 10-2-2013 by Ord. No. Z-255]
A. 
The following items shall all, on a prospective basis, be included in any and all construction contract bids which are prepared by, for, on behalf of, or in the interest of the City of Hoboken:
(1) 
Financial responsibility is an important factor in contracting for construction services, and the City of Hoboken, through its contracting authority, by way of its Purchasing Agent, shall require all bid submissions on a public construction contract or on a private construction contract that receives financial assistance to include the production of satisfactory evidence that the business entity is properly registered and authorized to conduct the type of work to be performed, including evidence that demonstrates that the entity possesses or complies with all valid licenses, registrations or certificates required by federal, state, or county law, as well as complying with the general business license requirements of the City of Hoboken prior to the award and during the term of the contract.
(2) 
The contracting authority, by way of its Purchasing Agent, shall confirm and substantiate that the contract awardee can reasonably be expected to complete and perform under the contract specifications, and the contracting authority, by way of its Purchasing Agent, may require the successful bidder to post a bid, performance, wage/fringe benefit and/or material bond(s). The contracting authority shall also determine if the successful bidder can reasonably be expected to complete the project within the time constraints as delineated in the request for bids and/or proposals.
(3) 
The contracting authority, by way of its Purchasing Agent, shall also oblige all specifications to require submission of evidence from each bidding entity that it maintains a satisfactory level of past performance and integrity as well as the financial, supervisory, personnel, material, equipment, and other resources and expertise to satisfactorily meet its contractual responsibilities and obligations. The contracting authority, by way of its Purchasing Agent, shall also determine that the successful bidder has not been debarred by any federal, state, county or local agency or authority within the past three years or has not been convicted of any crime related to the construction business.
(4) 
Social responsibility is a concern in awarding public contracts, and the contracting authority, by way of its Purchasing Agent, shall require all bidders to certify to bidder's record of conformity with environmental, labor, and health and safety laws, including compliance with the requirements of the United States Department of Labor's Occupational Safety and Health Administration. Additionally, the Purchasing Agent shall ensure that all bid specifications include a place for all bidders and their subcontractors to certify that they have participated in an apprenticeship program, registered and approved by the United States Department of Labor, for each separate trade or classification for which they employ craft employees, unless the contractor or subcontractor certifies that every worker shall be paid not less than the journeyworker's rate established for the apprenticeable trade performed pursuant to P.L. 1963, c. 150 (N.J.S.A. 34:11-56.25 et seq.). Additionally, the Purchasing Agent shall require inclusion of a certification in each bid specification that all bidders and subcontractors agree to continue to participate in such apprenticeship programs for the duration of the project. In addition, all bid specifications shall include a certification that the bidder and any and all of its subcontractors will show that such apprenticeship program provides each trainee with combined classroom and on-the-job training under the direct and close supervision of a highly skilled worker in an occupation recognized as an apprenticeable trade and meets the program performance standards of enrollment and graduation under 29 C.F.R. Part 29, § 29.6. Furthermore, the bidder shall be required to demonstrate and affirm that it is in compliance with the provisions of N.J.S.A. 34:20-1 et seq., the Construction Industry Independent Contractor Act.
(5) 
All bid specifications shall require submission by all bidding entities of satisfactory evidence that the bidder and any subcontractors provide a benefit configuration being no less than required under N.J.S.A. 34:11-56.25 et seq., the New Jersey Prevailing Wage Act. Furthermore, all bid specifications shall require a certification from the bidder affirming that it has made a good-faith effort to provide 25% of all project work hours to residents of the City of Hoboken. For the purposes of this section, good-faith effort shall be defined in the bid specifications as a minimum of at least two community job fairs related to the construction of the specified project.
(6) 
Furthermore, the bid specifications shall require all of the above items to be considered material and should allow the City to consider any bidder who fails to provide each of the required items as unresponsive to the bid specifications and, where applicable, irresponsible. Also, the bid specifications should include language that, should it be established after awarding of a contract that any of the information required by this section and provided by the bidding entity to the City of Hoboken was falsified or inaccurate, the contract shall be immediately voided at the sole cost and expense of the bidder.
B. 
The following definitions shall govern this section:
FINANCIAL ASSISTANCE
Something of economic value provided by the City of Hoboken to a private entity, expressly articulated or identified in writing by the City of Hoboken, including, but not limited to: loans, loan guarantees, grants, tax exemptions, tax abatements, tax incentive financing, and rent subsidies or reductions approved, funded, authorized, administered or provided by the local government entity or any of its instruments in connection with construction.
PUBLIC CONSTRUCTION CONTRACT
Any public construction project for the construction, reconstruction, demolition or renovation of buildings at the public expense, which it is required by law that workers be paid the prevailing wage determined by the Commissioner of Labor pursuant to the provisions of the New Jersey Prevailing Wage Act, P.L. 1963, c. 150 (N.J.S.A. 34:11-56.25 et seq).