[HISTORY: Adopted by the Borough Council of the Borough of Marcus
Hook 2-6-1984 by Res. No. R-84-3, approved 2-6-1984.
Amendments noted where applicable.]
GENERAL REFERENCES
Manager — See Ch. 24.
A formal purchasing system shall be adopted to regulate the flow of
Borough funds for the purchase of all the items necessary to the operation
of the Borough.
A.
The objectives of a purchasing system are economy and
efficiency in the procurement of supplies, equipment and services. A second
objective is to purchase materials which are best suited to the specific needs
of an operating department. Needed materials should also be in sufficient
supply so as to avoid any interruption in the delivery of services to the
public.
B.
The procedures established herein are designed to accomplish
the following objectives:
(1)
To assure that materials and services are ordered only
by authorized employees and officials.
(2)
To assure that purchases over $10,000 are advertised
and bids obtained in accordance with the Borough Code.
[Amended 6-2-1997 by Res. No. R-97-6,
approved 6-2-1997]
(3)
To assure that ordered goods are actually received prior
to authorizing payment.
(4)
To assure that surplus and obsolete materials, equipment
and supplies are disposed of properly in accordance with the Borough Code.
Materials and supplies shall include such items as are normally used
or consumed during the current budget year and for which an appropriation
in the annual budget has been made, and shall include the purchase of automotive
equipment, machinery, construction contracts or other purchases of materials
of a permanent or semipermanent nature.
A.
The Borough Manager shall be designated as Purchasing
Agent for the Borough. No one other than the Purchasing Agent shall commit
the Borough to any purchase, vendor or product. In the absence of the Purchasing
Agent due to illness or vacation, the appropriate committee chairman's signature
can substitute for the signature of the Purchasing Agent.
B.
The duties of the Purchasing Agent shall be to secure
prices for all supplies of every kind and character required by the various
departments of the Borough; to inspect materials and supplies purchased by
the Borough to determine that said materials and supplies have been properly
represented; to determine that the prices paid for materials and supplies
purchased by the Borough are the best that can be obtained in the local market
or elsewhere, and such other duties as the Borough Council may from time to
time prescribe.
C.
The Purchasing Agent shall have the authority to purchase
materials and supplies on the open market where the purchase price does not
exceed $1,000. Where the purchase price exceeds $1,000 but is less than the
limit currently established in the Borough for public bidding, such purchase
may be made by the Purchasing Agent only after formal approval is received
from the appropriate Council committee chairman.
The Borough Council shall have general supervision of the authorized
Purchasing Agent.
Purchase orders may be initiated by the following:
Where a department head seeks to purchase an item for which no appropriation
has been made in the annual budget, he or she must first seek the approval
of the Purchasing Agent. Said Agent may authorize transfers between accounts
within the operating budget of a single department to permit such a purchase.
However, budget transfers between the accounts of the operating department
and transfers between or among separate governmental funds shall require formal
authorization by the Borough Council at a public meeting.
A.
Except as otherwise provided herein, when the probable
cost of a purchase is estimated to exceed the dollar limit currently established
in the Borough for public bidding, the Purchasing Agent shall first seek authorization
from the Borough Council at a public meeting to prepare specifications and
advertise for competitive bids.
B.
Upon authorization by the Borough Council, the Purchasing
Agent in cooperation with the department heads shall prepare specifications
and publish a "Notice for Bids" in one newspaper of general circulation in
the County of Delaware at least two times at intervals of not less than three
days where notice is published in a daily newspaper. The first advertisement
shall be published not more than 45 days and the second advertisement not
less than 10 days prior to the date fixed for the opening of bids.
[Amended 6-2-1997 by Res. No. R-97-6,
approved 6-2-1997]
C.
Acceptance of bids must be made only by public announcement
at the meeting at which bids are received or at a subsequent meeting, the
time and place of which must be publicly announced when bids are received.
If for any reason one or both of the above meetings will not be held, the
same business may be transacted at a subsequent meeting if at least five days'
notice is published in the newspaper.
D.
The Council may direct the Purchasing Agent to receive,
open and review bids during normal business hours and forward the information
for subsequent award at a public meeting.
E.
The Purchasing Agent shall report to the Borough Council
the tabulation of bids and the results of any investigation of the responsibility
of the bidders and shall recommend to the Council the selection of the lowest
responsible bidder. The term "responsible" shall include considerations of
the quality of previous work, record of completing projects on time, history
of payments to subcontractors and suppliers, maintenance of a permanent place
of business, adequacy of equipment and plant to do the job, technical expertise
and whether the bidder has a solid financial base to guarantee contract completion.
F.
Where the Purchasing Agent recommends an award to a bidder
other than the lowest bidder, a full and complete statement of reasons shall
be prepared by the Purchasing Agent and submitted to the Borough Council.
Said statement shall be reviewed by the Solicitor for compliance with the
applicable provisions of the Borough Code.
G.
Borough Council shall not be required to follow formal
public bidding procedures involving advertising and bidding in the case of
emergency purchases authorized under the Emergency Management Services Code
and where specific exemptions are provided in the Borough Code.
[Amended 6-2-1997 by Res. No. R-97-6,
approved 6-2-1997]
A.
All contracts or purchases estimated by the Purchasing Agent
to cost $4,000 or more, but less than the amount currently specified in the
Borough Code requiring advertisement and competitive bidding shall be awarded
on the basis of written or telephonic price quotations from at least three
qualified and responsible vendors or, in lieu of price quotations, a memorandum
shall be kept on file showing that fewer than three qualified vendors exist
in the market area within which it is practicable to obtain quotations. A
written record of telephonic price quotations shall be made and contain the
quotation date, name of the vendor or vendor's representative, the work or
items which were the subject of the quotation and the price. All contracts
and purchases less than $4,000 but more than $1,000 shall be awarded on the
basis of written or telephonic price quotations from at least three vendors.
This requirement may be waived if there are fewer than three accessible providers
for an item.
B.
Purchases of less than $1,000 shall be made in the open
market by negotiation.
[Amended 6-2-1997 by Res. No. R-97-6,
approved 6-2-1997]
C.
Competitive vendors shall be treated equally. Every effort
shall be made to share Borough business among responsible vendors.
D.
The Purchasing Agent or department head shall exercise
discretion in making all purchases where quality, as well as price and service,
is involved.
A.
In all cases where there is an immediate need for materials
or supplies or where an emergency should arise after office hours, on weekends
or holidays and where it is not possible or convenient to contact the Purchasing
Agent, any purchase necessary up to a limit of $1,000 may be made by the appropriate
Council committee chairman or person in charge and such purchase reported
to the Purchasing Agent without delay.
B.
In the event that a "local disaster emergency" is declared
by the Borough Council or Borough Manager for the purpose of activating the
response and recovery aspects of any and all applicable local emergency management
plans, the Borough Council, Borough Manager or person in charge shall have
the power to enter into contracts and incur obligations necessary to disaster
emergency management, response and recovery without regard to procedures and
formalities prescribed by law pertaining to the performance of public work,
entering into contracts, the incurring of obligations, the employment of temporary
workers, the rental of equipment, the purchase of supplies and materials and
the appropriation and expenditure of public funds. (See Emergency Management
Services Code, 1978, P.L. 1332, No. 323; 35 Pa.C.S.A. § 7101). Such
purchases shall be reported to the Purchasing Agent without delay.
The Purchasing Agent shall have the authority to join with other units
of government in cooperative purchasing plans so that the best interests of
the Borough shall be served thereby.
A.
The use of charge accounts as a method of purchase is
intended to expedite the procurement of frequently needed supplies and services,
such as vehicle repairs.
B.
Department heads shall provide the Purchasing Agent with
a list containing the names and signatures of all personnel authorized to
sign for supplies, repairs and materials under each charge account agreement.
Any changes to the name/signature list shall be made in writing and filed
with the Purchasing Agent.
C.
Where supplies and materials are obtained by charge accounts,
the vendor's invoice shall be signed by the authorized employee who receives
the items as well as by the department head. All signed invoices resulting
from charge account purchases shall be forwarded to the Purchasing Agent.
The Purchasing Agent shall receive all signed invoices in order to verify
the accuracy of vendors' monthly bills.
D.
The Purchasing Agent shall not authorize payment of any
invoice unless such invoice is signed by authorized personnel and approved
and signed by the department head.
All bids for goods or materials of any kind or character purchased by
the Borough shall be kept on file in the office of the Borough Manager. After
award has been made, the bids shall be subject to inspection at any time by
any citizen of the Borough.
A.
The Purchasing Agent shall have the authority to transfer
surplus supplies, materials and equipment to other using departments or to
sell Borough personal property which is valued at less than $1,000 per item
and which has become unsuitable for public use.
[Amended 6-2-1997 by Res. No. R-97-6,
approved 6-2-1997]
B.
The procedure for sale of surplus items of personal property
valued at less than $1,000 per item shall be as follows:
[Amended 6-2-1997 by Res. No. R-97-6,
approved 6-2-1997]
(1)
The Purchasing Agent shall identify in writing to the
members of the Borough Council each item of surplus property and the estimated
value thereof.
(2)
A list identifying each item or group of items offered
for sale shall be posted at the front entrance to the Municipal Building until
such time as an offer is made for purchase of the item(s).
(3)
Where no offer of purchase is made within a thirty-day
period, the Purchasing Agent, at his discretion, may dispose of the item(s)
by any available means.
C.
Surplus, unusable or obsolete supplies, materials and
equipment valued at $1,000 or more per item shall be sold upon the approval
of the Borough Council by motion of Council and in accordance with the applicable
provisions of the Borough Code. Each item valued at $1,000 or more shall be
advertised for sale once in at least one newspaper of general circulation
in the Borough not less than 10 days prior to the date fixed for the opening
of bids announced in the advertisement. The sale of property advertised in
this manner shall be made to the best responsible bidder.
[Amended 6-2-1997 by Res. No. R-97-6,
approved 6-2-1997]
D.
The above provisions shall not apply where Borough property
is to be traded in or exchanged for new Borough property or where Borough
property is to be sold to another political subdivision or to the types of
organizations which are specified in the Borough Code.
A.
The Borough shall establish a petty cash fund to handle
nonrecurring emergency purchases, express charges on shipments of goods and
materials and minor expenditures, such as reimbursement of an
employee for postage.
B.
Petty cash shall not be used in situations where an item
can be charged and a check issued for payment. Petty cash shall not be a substitute
for proper purchasing procedures.
C.
The items purchased from the petty cash fund shall be
accounted for and these expenditures shall be reflected in the Borough book
of accounts.
D.
The use of petty cash funds shall be limited to the Office
of the Borough Manager. The Borough Manager shall be designated as petty cash
custodian for the Borough.
E.
Each petty cash fund shall be limited to a maximum amount
of $100.
[Amended 6-2-1997 by Res. No. R-97-6,
approved 6-2-1997]
F.
The custodian is responsible for maintaining a petty
cash book to record all petty cash transactions by amounts, person receiving
funds, purchase made and account code numbers. Vouchers and receipts shall
be maintained by the custodian for all expenditures.
G.
The funds shall be replenished from time to time by checks
drawn on the general fund account.
