[HISTORY: Adopted by the City Council of the City of Canandaigua 12-12-1991; amended
in its entirety 9-6-2012 by Res.
No. 2012-064; 4-3-2014 by L.L. No. 3-2014. Subsequent amendments
noted where applicable.]
A.
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 Canandaigua City
Council is adopting internal policies governing all procurement of
goods and services which are not required to be made pursuant to the
competitive bidding requirements of General Municipal Law (GML) §
103, or of any other general, special or local law. The City Manager,
upon recommendation of the Treasurer, may implement and or amend procedures
as necessary to carry out the polices set forth here.
[Amended 11-3-2022 by Ord. No. 2022-004]
B.
The basic goals of the City’s purchasing program are:
(1)
To comply with the legal requirements of public purchasing and procurement.
(2)
To assure vendors that impartial and equal treatment is afforded
to all who wish to do business with the City.
(3)
To receive maximum value for each dollar spent by awarding purchase
orders to the lowest responsible bidder, taking into consideration
quality, performance, technical support, delivery schedule, past performance,
and other relative factors.
(4)
To provide City departments the required goods, equipment and services
at the time and place needed and in the proper quantity and quality.
(5)
To promote good and effective vendor relations, cultivated by informed
and fair buying practices and strict maintenance of ethical standards.
(6)
To ensure that the purchasing policies and procedures of the City
of Canandaigua be clearly established and understood by all concerned.
A.
General.
(1)
The purchasing procedures employed will comply with all applicable
laws and regulations of New York State and shall be subject to the
approval of the City Council.
(2)
The purchasing policy herein shall be administered in accordance
with all ethical rules called for by the City of Canandaigua.
(3)
No official or employee will be interested financially in contracts
entered into by the municipality (as defined in § 800 of General
Municipal Law). This also precludes acceptance of gratuities, financial
or otherwise, as stated in the City of Canandaigua Code of Ethics.[1]
(4)
The City of Canandaigua will not be deemed responsible for any commitment
made at the departmental level circumventing these procedures. If
City procedures are circumvented, disciplinary action may be taken.
B.
Departments. The City of Canandaigua has instituted a decentralized
purchasing process, which places the purchasing responsibilities at
the departmental level. The department head is responsible to ensure:
(1)
All City of Canandaigua employees comply with the City’s purchasing
policy and New York State statutes covering procurement.
(2)
Pursuant to § 14.7 of the City Charter, no expenditure shall be made or obligation authorized unless an appropriation has previously been made and there is at the time a sufficient unencumbered balance of such appropriation. It is the department head's responsibility to ensure that he or she has sufficient appropriate funds in his or her budget center or to make the appropriate request for a budget amendment to the City Manager as necessary.
[Amended 3-3-2016 by Ord.
No. 2016-002]
(3)
Any employee deliberately violating the policy regarding unauthorized
purchases may be held personally accountable for the purchases. Violation
of the purchasing policy may result in disciplinary action, up to
and including dismissal.
(4)
Effective and professional public, vendor and customer relationships
are maintained.
(5)
Goods and services are requisitioned in such a way as to allow time for competitive bidding, ordering, and delivery of materials. Exceptions shall be made only on rare occasions, when a true emergency exists as per § 161-4B(3).
(6)
Impartial judgments are made in the selection of vendors, based on
product quality, cost, warranty, and performance and vendor delivery,
service, and performance.
(7)
Adequate documentation of all action taken in connection with each
method of procurement is maintained.
(8)
All contracts that do not require the City Manager’s signature,
do not require a budget amendment, and are awarded to the lowest bidder
are signed by the responsible department head and filed in the City
Treasurer's office.
[Amended 11-3-2022 by Ord. No. 2022-004]
C.
Budget Director (as delegated by the City Manager):
(1)
Is responsible to certify that there is an unencumbered balance of
appropriation and funds available for the purpose before any department,
office or agency of the City government can expend or commit any funds
of the City, and to submit the pre-audit report to the City Manager.
(2)
Shall conduct an audit of all claims prior to payment by ensuring
that it is a valid, legal, and necessary obligation incurred by an
authorized employee, in its proper form, is mathematically correct,
does not include charges previously paid, and complies with all City
policies and procedures.
D.
Chief Fiscal Officer (Treasurer):
[Amended 11-3-2022 by Ord. No. 2022-004]
(1)
Shall review all claims prior to issuance and ensure required documentation,
approvals and available funding support each payment request.
(2)
Shall review check register and compare with pre-audit report signed
by City Manager.
(3)
Shall review the system audit report generated by Accounts Payable
and review all vendor activity on the file.
E.
City Manager:
(1)
Is authorized, following City Council approval, to sign all contracts
for goods and services that must first be approved by City Council,
which include the following:
(a)
Any contract for goods and services that require a formal bid
as required by New York State law or formal RFP as outlined in this
policy.
(b)
Any contract for which a Council-approved budget amendment is
required.
(c)
Any time there is a contract for goods and services (excluding
professional contracts) where the lowest bidder or quote is not selected.
(2)
Shall cause an audit of all claims prior to payment by ensuring that
it is a valid, legal, and necessary obligation incurred by an authorized
employee, in its proper form, is mathematically correct, does not
include charges previously paid, and complies with all City policies
and procedures. [This may be delegated per City Charter § 5.4(o).]
The procedures for determining whether the procurement of goods
and services is subject to competitive bidding, and required documentation
of the basis for any determination that competitive bidding is not
required by law, shall be as follows:
A.
Departments are to analyze the proposed procurement to determine
whether it is subject to competitive bidding as outlined in New York
State General Municipal Law § 103. The following questions are
to be answered:
(1)
Is the proposed procurement a purchase contract or a contract for
public work?
(2)
If yes, is the amount of this purchase above the applicable threshold,
which is currently $20,000 for purchase contracts and $35,000 for
public works contracts?
(3)
If no, determine the type of procurement and follow the procedures
outlined in this policy.
B.
PROFESSIONAL SERVICES (GML § 104-b(2F))
(1)
(2)
(3)
(4)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
PUBLIC WORK CONTRACTS (GML § 103)
PURCHASE CONTRACTS "PRODUCTS OR SERVICES" (GML § 103)
Definitions of procurement types:
Require special or technical skill, training or expertise
under the following guidelines:
Services are subject to state licensing or testing requirements;
or
Substantial formal education or training is a necessary prerequisite
to the performance of the service; and
Services require a personal relationship between the individual
and municipal officials.
Professional and technical services shall include but not be
limited to the following:
Attorney.
Physician.
Engineer.
Insurance broker.
Certified Public Accountant.
Investment management services.
Printing services involving extensive writing, editing or art
work.
Property management.
Computer software.
Network management.
Management consulting services.
Involve services, labor or construction.
Involve the acquisition of commodities, materials, supplies
or equipment and contracts for service work but excluding purchase
contracts necessary for the completion of a public works contract.
[Amended 3-3-2016 by Ord.
No. 2016-002; 11-3-2022 by Ord. No. 2022-004]
The following requirements, to be used regardless of payment
method, will apply unless the purchase is made pursuant to one of
the exceptions noted below:
|
Amount of Purchase
|
Purchase Requirements
|
|---|---|
|
Less than $999: product or service
|
Verbal order
|
|
$1,000 to $4,999: product or service
|
2 documented quotes (See quote sheet.)
|
|
$5,000 to $20,000: product or service
|
3 written quotes (written, faxed or e-mailed)
|
|
Less than $35,000: professional services
|
3 written proposals/quotes or established and ongoing relationships
|
|
$35,000 or greater: professional services
|
Request for proposal or pursuant to continuing contract
|
|
More than $20,000: product or service
|
Formal bid procedures
|
|
More than $35,000: public works projects
|
A.
Purchase requirements:
(1)
Verbal order. The time and documentation required by this policy
to purchase products or services under $999 may be more costly than
the item itself and would therefore not be in the best interests of
the taxpayer. In addition, it is not likely that such de minimis contracts
would be awarded based on favoritism. These items do not require a
purchase order prior to purchasing.
(2)
Documented quotes. Two documented quotes (or purchase on a state
or county contract) are required for any product or service costing
$999 to $4,999. Verbal quotes should be documented on a quote sheet
and forwarded as part of the documentation for payment. An approved
purchase order is required prior to purchasing.
(3)
Written quotes. Three written quotes (or purchase on a state or county
contract) are required for any product or service costing between
$5,000 and $19,999 and for new professional services contracts with
total service fees of less than $34,999. These quotes can be written,
faxed or e-mailed and must be retained and forwarded as part of the
documentation for payment. (At a minimum, this documentation shall
include the date, description of items or details of service to be
provided, price quoted, and name of the contact person at the firm.)
An approved purchase order is required prior to purchasing.
(4)
Request for proposal (RFP). An RFP is generally used for the procurement
of services or technology, or technical expertise, in situations where
price is not the sole determining factor and the award will be based
on a combination of cost and technical factors (best value). An RFP
is required for all professional services contracts of $35,000 or
more because price is not the sole determining factor. All RFPs and
evaluation criteria should be maintained as part of the contract documentation.
Award for these contracts will be made by City Council. An approved
purchase order is required prior to purchasing.
(5)
Formal bid procedures. All contracts for service involving expenditures of more than $35,000 and all purchase contracts involving an expenditure of more than $20,000 shall be awarded to the lowest responsible bidder or "best value," as defined in § 163 of the New York State Finance Law (but excluding purchase contracts necessary for the completion of a public works contract pursuant to Article 8 of the State Labor Law and excluding any other contract that may in the future be excluded under state law from the best value option), furnishing the required security after advertisement for sealed bids. The best value option may be used if it is more cost-efficient over time to award the good or service to other than the lowest responsible bidder based on objective factors such as lower cost of maintenance, durability, higher quality and longer product life. In any case where a responsible bidder's or responsible offerer's gross price is reducible by an allowance for the value of used machinery, equipment, apparatus or tools to be traded in by a the City, the gross price shall be reduced by the amount of such allowance, for the purpose of determining the best value. All formal bid awards will be made by City Council based either on lowest responsible bidder or best value pursuant to competitive bidding under General Municipal Law § 103. If the dollar thresholds of General Municipal Law §103 are increased or decreased in the future by the State Legislature, the dollar thresholds set forth herein shall be deemed simultaneously amended to match the new General Municipal Law thresholds. An approved purchase order is required prior to purchasing.
(a)
Standards for best value. Goods and services procured and awarded
on the basis of best value are those that the department head determines
will be of the highest quality while being the most cost-efficient.
The determination of quality and cost-efficiency shall be based on
objectively quantified and clearly described and documented criteria,
which may include, but shall not be limited to, any or all of the
following: cost of maintenance; proximity to the end user if distance
or response time is a significant term; durability; availability of
replacement parts or maintenance contractors; longer product life;
product performance criteria; and quality of craftsmanship.
(b)
Documentation. Whenever any contract is awarded on the basis of best
value instead of lowest responsible bidder, the basis for determining
best value shall be thoroughly and accurately documented.
(6)
Any purchase contracts involving expenditures for more than $20,000
annually, except for professional services and public works contracts,
shall be awarded based on a formal bid or purchased on a state or
county contract. Annually, the Treasurer's Office will prepare a volume
report based on purchases from the previous 12 months to determine
if purchases with a vendor have exceeded $20,000 and are required
to be bid in the following year as required under GML § 103.
[Amended 11-3-2022 by Ord. No. 2022-004]
B.
Exceptions. A good-faith effort shall be made to obtain the required
number of proposals or quotations. If the purchaser is unable to obtain
the required number of proposals or quotations, the purchaser will
document the attempt at obtaining the proposals. In no event shall
the failure to obtain the proposals be a bar to the procurement. Exceptions
to the purchase requirements shall be allowed for:
(1)
Products and services under $999.
(2)
Procurements made pursuant to General Municipal Law § 103, Subdivision
3 (through county contracts); General Municipal Law § 103, Subdivision
16 (piggyback on other municipal contracts); General Municipal Law
§ 104-b (through state contracts); State Finance Law § 175-b
(from agencies for the blind or severely handicapped);[1] Correction Law § 186 (articles manufactured in correctional
institutions); or when the City is a pass-through for funding only,
bidding or quote requirements are not required. Such procurements
must be documented with an executed quote from the vendor or a memorandum
of understanding that details the state, county, other municipal contract,
or state finance law or correction law being utilized for the procurement,
the product(s)/services to be provided and the total cost for said
product(s)/service.
[Amended 11-3-2022 by Ord. No. 2022-004]
[1]
Editor's Note: State Finance Law § 104-b was repealed
by L. 1995, c. 83, § 33. See now State Finance Law § 162.
(3)
Emergency purchases. Pursuant to General Municipal Law § 103(4),
emergencies which arise out of an accident or other unforeseen occurrence
or condition whereby circumstances affecting public buildings, public
property or the life, health, safety or property of the residents
of the City require immediate action which cannot await competitive
bidding, quotes or prior approval. The City Manager must authorize
all emergency purchases.
(4)
Sole-source procurements. Competitive bidding is not required under
GML § 103 in those limited situations when there is only one
possible source from which to procure goods and services required
in the public interest, such as in the case of certain patented goods
and services or public utility services. Required quotes may not be
required in cases where a manufacturer must be used and the product
has no reasonable equivalent. All cases of sole-source procurement
must be documented by the department and be authorized by the City
Council.
(5)
Single source. A single source could be a distributor/wholesaler/retailer
that has a contractual agreement for a specific territory to the exclusion
of others. Documentation of a situation involving a single-source
supplier must be maintained in the form of a letter on the manufacturer’s
letterhead confirming the single source authorized vendor.
(6)
Procurements from other than the lowest responsible bidder or quote.
(a)
Formal bid. After solicitation for a particular procurement
is made, the department head, with counsel from the City Attorney,
may recommend to City Council to award to other than the lowest bidder.
In such a case, the department head shall provide written justification
for such action, and any other appropriate documentation will be added
to the bid folder.
(b)
Outside formal bid. After solicitation for a particular procurement
is made, the department head may recommend to award to other than
the lowest bidder. In such a case, the department head shall provide
written justification for such action, and any other appropriate documentation,
to the City Manager for approval.
(7)
In certain situations, solicitation of alternative proposals or quotes
is not practical. These may include emergencies, true leases and sole-source
situations and combinations of professional services/purchases. In
each of these cases, the requesting department shall analyze, justify
and clearly document the reasons behind the award. In these cases,
the quote form shall be used as a basis to establish pricing and a
contract.
The procedures outlining purchasing methods that are to be used
in acquiring goods and services:
A.
Purchase requisition. A purchase requisition is required to be initiated for all goods and services used by a department and is the first step in creating a purchase order. A purchase order is required for the purchase and payment of all goods and services, except for those listed in § 161-5C.
(1)
A purchase requisition must contain an adequate description of the
materials or services required. Descriptions should include size,
type, style, color, reorder or catalog number and any other information
that will identify the items.
(2)
All required quotes or state/county contract pricing must be documented
on the purchase requisition.
(3)
The individual department head is responsible to ensure that expenditures
are within the budgetary appropriations and that the proper department
account is charged. The department head may approve purchase requisition
requests less than $2,500 without approval of the Budget Director,
prior to initiating a purchase order.
[Amended 3-3-2016 by Ord.
No. 2016-002]
(4)
Should there be insufficient funds available, departments must request
a budget transfer and secure all the necessary approvals, including
City Council's (if required), before the order will be processed.
(5)
All purchase requisition requests over $2,500 must be approved by
both the department head and the Budget Director prior to initiating
a purchase order.
[Amended 3-3-2016 by Ord.
No. 2016-002]
(6)
A purchase requisition must be initiated so that a purchase order
can be processed prior to the order being placed with a vendor, unless
the invoice is less than $999.
[Amended 3-3-2016 by Ord.
No. 2016-002]
(7)
A purchase requisition must be created even if the purchase for goods
and services is charged to a City credit card. The purchase requisition
should be issued to the credit card bank with the name of the vendor
to be paid in the memo field along with all other required information
necessary for a purchase order.
B.
Purchase order. A purchase order is created from a properly approved
purchase requisition. The following types of purchase orders are to
be used:
(1)
Confirming purchase order. Any product or service less than $500
may be ordered without a purchase order. The invoice may be entered
into the purchase requisition system upon receipt of the invoice.
The department head is responsible to ensure that the purchase is
a necessary expenditure which has budget appropriation.
(2)
Standard purchase order: a formal document authorizing the purchase
of goods and services as well as the necessary authority to pay vendor
claims. This is created after all necessary approvals and documentation
has been obtained.
(3)
Open purchase order. This purchase order is to be used for agreements committing the City to planned purchases over the entire year. Such items to be placed on an open purchase order include leases and service contracts that have a specific monthly payment. The scheduled releases must be specified in the detail as well as the amount per month. Open purchase orders are to be for a current fiscal period only. A new purchase order must be created each year. Open purchase orders may also be used for suppliers awarded annual bids per § 161-4A(6).
(4)
Contract purchase order. Any time a properly authorized and executed
contract is entered into with a supplier or service contractor, a
purchase order will be created for the entire amount of the contract,
even though it might extend beyond the current fiscal period. This
assumes that this item is included in the current budget or that any
authorizing resolution has approved the budget amendment.
C.
Exceptions to purchase order.
(1)
Petty cash: to reimburse an employee for small incidental purchases.
Petty cash funds may be used for small incidental nonrecurring cash
purchases that do not exceed $30. The use of petty cash should not
be considered as a substitute for regular purchasing procedures.
(2)
Direct payables. There are certain expenditures for which the processing
of a purchase order is unnecessary. A direct payable is used for transactions
that are preapproved and contractual in nature, or which have already
taken place, and where other purchasing methods would not apply, including:
(a)
Utilities: phones (including cellular), gas and electric.
(b)
Insurance benefits: health, dental and other personnel expenses.
(c)
Postal fees.
(d)
Police contraband fund.
(e)
Bond payments (bank transfer).
(f)
Retirement disbursement to New York State (bank transfer).
(g)
Payment of county taxes (bank transfer).
(h)
Payment of delinquent school taxes.
(i)
"Pass through" grants.
[Amended 3-3-2016 by Ord.
No. 2016-002]
(j)
Payroll direct payables.
[Added 3-3-2016 by Ord.
No. 2016-002]
(k)
Refunds.
[Added 3-7-2019 by Ord.
No. 2019-002]
(3)
Travel and conference expenditures. Travel and conference expenses
are to be approved in advance by the department head pursuant to the
travel policy. Preapproval by the City Manager is required for all
overnight travel. These expenses are reimbursable on the employee
expense form, or preapproved payment may be made on a City credit
card.
A.
Request for the payment of an invoice must be made by the department
to the Treasurer's office. Payments will most often be made by a City-issued
check, but in limited circumstances, a payment can be made by a City-issued
credit card. In all cases, the following procedures shall be followed
to document and support all claims:
[Amended 11-3-2022 by Ord. No. 2022-004]
(1)
Departments are responsible to receive all materials, supplies and
equipment and verify the order with the delivery receipt.
(2)
Departments will receive the original invoice and verify that the
City received all items billed for by matching the delivery receipt
with the invoice. The supervisor who initiated the order will initial
the invoice and attach the delivery receipt. If the invoice is for
services, the supervisor will verify that the service to the City
was rendered and initial the invoice. (Please initial the invoice
on the part which remains with the City and not on the return payment
stub.)
(3)
The department head is responsible for all claims for payment and
shall verify that all charges on the invoice are valid, mathematically
correct, and supported by an authorized purchase order.
(4)
Departments will forward the claim request to the Accounts Payable
Clerk with the following documentation:
[Amended 3-3-2016 by Ord.
No. 2016-002]
(5)
The Accounts Payable Clerk will verify that all necessary documentation
is attached and enter all invoices into Accounts Payable by receipting
against a purchase order. (The accounting software will check for
duplicate invoice numbers to prevent duplicate payments.) All claims
will be forwarded to Treasurer for review.
[Amended 3-3-2016 by Ord.
No. 2016-002; 11-3-2022 by Ord. No. 2022-004]
(6)
Treasurer will review the claim and ensure that it complies with
all policies and procedures and that the expenditure is applied to
the correct budget account.
[Amended 3-3-2016 by Ord.
No. 2016-002; 11-3-2022 by Ord. No. 2022-004]
(7)
After all invoices are entered into accounts payable, a preaudit
report will be printed and forwarded to the City Manager's office
with all claims for review.
[Added 3-3-2016 by Ord.
No. 2016-002[1]]
[1]
Editor's Note: This ordinance also renumbered former Subsection
A(7) through (9) as Subsection A(8) through (10), respectively.
(8)
The City Manager will cause an audit of all claims prior to payment
to ensure that expenditures are valid, legal and necessary and that
all purchasing policies and procedures have been complied with. The
City Manager will cause a review of the pre-audit report by the selection
of certain claims for review. Upon approval of the claims, the City
Manager (or Budget Director, if so delegated) will sign the pre-audit
report and forward it, along with all claims, to the Accounts Payable
Clerk.
(9)
The Accounts Payable Clerk will issue checks to the vendors and forward
the pre-audit report and check report to the Treasurer.
[Amended 11-3-2022 by Ord. No. 2022-004]
(10)
The Treasurer will track all check numbers and ensure that the
pre-audit expenditure amount matches the final check run report. An
Accounts Payable system audit report will be conducted for each check
run, and all changes to the vendor files will be reviewed.
[Amended 11-3-2022 by Ord. No. 2022-004]
[Amended 3-3-2016 by Ord.
No. 2016-002]
City-issued credit cards may be used by authorized persons for
purchases authorized under this policy, as follows:
A.
The Treasurer may be authorized to contract with a credit card company,
bank or vendor to obtain credit.
[Amended 11-3-2022 by Ord. No. 2022-004]
B.
Persons are authorized to use City-issued credit cards under the
following conditions:
(1)
All cardholders will sign the acknowledgment of card receipt and
cardholder agreement.
(2)
In no event can the purchases on a credit card circumvent the purchase
order process. All transactions require a purchase order to be issued
to the credit card company.
(3)
Credit cards are to be used only for authorized City purchases.
(4)
No sales tax is to be charged on any purchases except for gas, restaurants
and out-of-state hotel bills.
(5)
Any misuse of the credit card will result in revocation of the card
and, if necessary, appropriate disciplinary action.
D.
Credit cards should not be used for vendors with which the City has
an established credit account.
E.
If it is necessary to make frequent credit card purchases at the
same local vendor, the establishment of a credit account with that
vendor may be warranted.
F.
All purchases of goods or services transacted with a credit card
shall comply with all other sections of this policy.
G.
All required documentation must be promptly forwarded to the Treasurer
so that any charges incurred may be paid within the applicable grace
period to avoid incurring finance charges.
[Amended 11-3-2022 by Ord. No. 2022-004]
Any City officer or employee who has, will have, or acquires
an interest in any actual or proposed contract with the City of which
he/she is an officer or employee shall publicly disclose the nature
and extent of such interest in writing to the City Council as soon
as he/she has knowledge of an actual or prospective interest. This
written disclosure will be made part of the official minutes of the
City Council. If an officer or employee has a reason to believe that
he/she may have a conflict of interest, the City Attorney should be
contacted immediately.
