[HISTORY: Adopted by the Board of Trustees
of the Village of Perry 5-17-2018 by L.L. No. 3-2018.[1] Amendments noted where applicable.]
[1]
Editor's Note: This local law also superseded former Ch. 104,
Purchasing Policy, adopted 8-14-1995, as amended.
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 monies, in the
best interests of taxpayers, to facilitate the acquisition of goods
and services of maximum quality at the best value cost under the circumstances
and to guard against favoritism, improvidence, extravagances, fraud
and corruption.
A.
Pursuant to requirements of General Municipal Law § 103,
Competitive bidding process/requirements, and General Municipal Law
§ 104-b, which requires the governing board to adopt written
policies and procedures for all goods and services that are not subject
to the requirements of competitive bidding, the purpose of this Purchasing
Policy is to bring together, in one document, comprehensive policy
and procedural guidelines for the purchasing function, including all
facets of the purchasing process: vouchers, abstracts, approvals,
filing, etc.
B.
All Village purchasing decisions should be designed to procure needed
commodities of the desired quality at the best value cost to the Village.
C.
Documentation requirements should be followed to act as evidence
that the Village obtained the needed commodities of the desired quality
at the best value cost to the Village, and that purchasing procedures
complied with state and Village laws, rules, regulations and policies.
A.
This policy shall be reviewed annually at the organizational meeting
of the Village Board of Trustees, and revised and/or updated as necessary.
B.
It will be the responsibility of the Mayor and/or Treasurer to distribute
the current copy to responsible department heads (DPW Superintendent,
Chief of Police, Treasurer, Justice, Sewer Plant, and Water Plant).
As used in this chapter, the following terms shall have the
meanings indicated:
Will comply with state guidelines as identified in General
Municipal Law § 103, Subsection 2 (i.e., published at least
five days prior to bid opening and published in Village's legal
newspaper).
All anticipated purchases of a like commodity or commodity
group will be aggregated to determine if the Village will exceed the
threshold. Each department head will be responsible to continually
monitor his usage patterns to be aware of commodities that over a
period of time will exceed the thresholds.
As defined in State Finance Law § 163, the basis
for awarding contracts for services to the offeror which optimizes
quality, cost and efficiency, among responsive and responsible offerors.
For the purposes of this policy, the Village Board of Trustees adopts
the above definition of "best value" as may be modified from time
to time by the State Legislature.
After compliance and price review, the Board will make a
determination of which vendor is the lowest, responsible bidder meeting
bid specifications and award the contract accordingly. This determination
will be entered as a resolution in the minutes and, if the award is
to other than the apparent low bidder, such resolution will specify
in what material respects the low bidder(s) did not comply with specifications.
All bid files will be filed with the Village Clerk within
marked folders indicating item bid and date, per item.
The applicable department head and the Village Board will
review bid compliance for each submittal. Compliance for each bid
specification will be noted on the bid submittal for each vendor.
Includes all conditions that will be used to evaluate compliance,
including, but not limited to, product description, quality, alternatives
and options, trade-in, delivery, mileage allowances, repair needs,
etc. Considerations that are not listed in the specifications list
cannot be used as the basis to measure compliance with the proposals
and the award of the contract. Also each bid submittal shall require
a statement of noncollusion by the vendor.
Documented quote on company letterhead from vendor.
Quote obtained by either verbal or electronic.
Any service that included material and labor with labor being
the predominant expense.
Includes the purchase of equipment, and/or equipment and
labor with equipment being the predominant expense.
The time period of aggregation will be the Village fiscal
year 12 consecutive months, or if more appropriate, the normal purchase
season for the commodity group (for example, winter months for road
salt, etc.).
Individual purchases which are not subject to state mandated
bidding procedures will be governed as follows:
Purchases
|
Informal Quotes
|
Documented Quotes
|
PO
|
RFP
|
Other
| |||
---|---|---|---|---|---|---|---|---|
2
|
3
|
2
|
3
| |||||
Purchase Contracts Below $20,000
| ||||||||
Under $999
| ||||||||
$1,000 to $4,999
|
X
|
X
| ||||||
$5,000 to $19,999
|
X
|
X
| ||||||
Contracts for Public Works Below $35,000
| ||||||||
Under $999
| ||||||||
$1,000 to $4,999
|
X
|
X
| ||||||
$5,000 to $34,999
|
X
|
X
| ||||||
Emergencies
|
a
| |||||||
Insurance
|
a
| |||||||
Professional Services
|
X
| |||||||
Sole Source
|
a
|
NOTES:
| |
a.
|
The method of solicitations for these types of procurements
may vary depending on the circumstances encountered.
|
Each department head will fill out a purchase order request
for all purchases over $1,000 to verify that there is ample funding
in the account to cover the anticipated purchase. The responsible
department head must sign the order and the Treasurer must also complete
the certification before the purchase is made.
A.
In the event that an appropriation balance is insufficient, the Treasurer
will notify the department head. An explanation must be submitted
as to why the code should be increased which may be done by Board
action at the next regularly scheduled meeting.
B.
The purchase order will be attached to the invoice when it is signed
and submitted for payment.
C.
All purchase order rules must be followed.
D.
Such quotes will be documented on the quote form and attached to
the claim voucher submitted to the Board for audit and review.
A.
Each department head is primarily responsible to monitor his budget
each month, and to keep their purchases and expenditures within the
available budget for each line item.
C.
The Treasurer should also monitor budget compliance. Based on the
monthly budget report, the Treasurer should alert the Board to any
accounts that appear to be nearing or exceeding the budget. The Treasurer
could also advise or recommend remedies, such as restricting spending,
budget transfers, excess fund balances, or unanticipated excess revenues.
D.
The Board should also monitor budget compliance on a monthly basis
by reviewing the monthly budgetary reports and taking official Board
action to implement any proper budgetary sections they deem advisable.
E.
No purchase can be made until the Board has made available proper
budgetary authority to spend.
A.
Vendor invoices will be given directly to the responsible department
head. They will review the invoice, to verify the commodities delivered,
price and proper accounting. They will also fill out and sign a voucher
form, and attach the invoice and any other departmental purchase orders,
counter slips, receiving reports or shipping documents.
B.
This package will be submitted to the Treasurer on the Wednesday
before the Board meeting for processing. The Treasurer will submit
these vouchers, along with a tentative summary listing, to the Board
for their audit and approval. Upon audit and approval, the Mayor will
sign the abstract of audited vouchers prior to the Treasurer preparing
the final checks and mailing them to the vendor.
C.
A Village Trustee that is auditing vouchers for a particular month
hereby has the option to direct the Clerk-Treasurer to cause a department
to present a purchased item for verification and comparison to the
invoice.
It is the policy of the Board that all purchases and services
over New York State bidding thresholds all purchase contracts of $20,000
or more and contracts for public work of $35,000 or more will be publicly
advertised for competitive bids. (See General Municipal Law § 103.)
A.
Exceptions to the competitive bidding requirements are as follows:
(1)
Preferred source.
(2)
State contracts.
(3)
County contracts.
(4)
Cooperative contract agreement.
(5)
Certain federal contracts.
(6)
Emergencies.
(7)
Sole source.
(8)
Professional services.
(9)
True leases.
(10)
Insurance.
(11)
Second-hand equipment from other governments.
(12)
Certain food and milk products.
(13)
Certain municipal hospital purchases.
B.
Preferred sources:
(1)
In order to advance "special social and economic goals," the Village
of Perry is required to purchase certain goods and services from providers
having "preferred source" status. Prior to engaging in competitive
bidding, a municipality must first determine whether a preferred source
could provide the necessary good or service. (See State Finance Law
§ 162.) The following are preferred sources:
(a)
Commodities produced by the Department of Correctional Services
Industries Program;
(b)
Commodities and services produced by any qualified charitable
non-profit-making agency for the blind approved for such purposes
by the Commissioner of the Office of Children and Family Services;
(c)
Commodities and services produced by any special employment
program serving mentally ill persons approved by the Commissioner
of Mental Health;
(d)
Commodities and services produced by any qualified charitable
non-profit-making agency for other severely disabled person approved
for such purposes by the Commissioner of Education;
(e)
Commodities and services produced by a qualified veterans'
workshop providing job and employment skills training to veterans
where such a workshop is operated by the United States Department
of Veterans Affairs and is manufacturing products or performing services
within this state and where such workshop is approved for such purposes
by the Commissioner of Education; or
(f)
Commodities and services produced by any qualified charitable
non-profit-making workshop for veterans approved for such purposes
by the Commissioner of Education, or incorporated under the laws of
this state and approved for such purposes by the Commissioner of Education.
(2)
If goods or services needed by the Village of Perry are available
from a preferred source, the Village of Perry must purchase from that
preferred source and there is no competitive bidding to procure the
needed goods or services. The Office of General Services is required
to maintain a list of preferred sources.
C.
Purchases under state, county and cooperative contracts:
(1)
The Village is not required to perform their own advertising for
competitive bids if the purchases are properly made under a state,
county or cooperative contract.
(2)
The purchase must be the same commodity, price, conditions and vendor
as under the state or county contract.
(3)
Each department head shall attach a copy of the applicable state,
county or cooperative contract award documentation to the claim voucher
submitted to the Board for audit and approval.
(4)
The contract must have been made available for use by other governmental
entities.
D.
Exceptions for emergency purchases:
(1)
Emergency purchases are not subject to state-mandated bidding procedures.
(3)
Such determination will be reviewed and affirmed by resolution of
the Village Board at the next scheduled Board meeting, specifying
the condition and the threat.
(4)
The department head will still be required to document the solicitation
of at least two informal quotes as outlined in the section "Other
Purchases Not Requiring State Bidding Compliance."
(5)
If the incident invoking the emergency clause could have been avoided
or the Village of Perry failed to act to prevent the emergency, it
is unlikely that the Village of Perry can rely upon this exception.
(6)
If the Village of Perry created the event necessitating emergency
procurement, it may not invoke this exception.
(7)
If this exception is invoked, the good or service needed should be
at the lowest cost available.
E.
Exceptions for professional contracts:
(1)
Professional services are not subject to state-mandated bidding procedures.
(2)
Such professional services shall include, but not be limited to,
accounting, legal, insurance coverage, engineering, and computer consulting,
etc.
(3)
Items not classifiable as professional services include, but are
not limited to, tree removal, paving, etc.
(4)
However, it is the policy of this Board that such professional services
that will exceed $2,000 during a fiscal year will be subject to request
for proposals, if the Board so deems it necessary.
(5)
Such requests shall include (as specifications) all descriptions,
conditions, alternatives and options that shall be used as the basis
for making the decision and awarding the contract.
(6)
The Village Clerk shall maintain separate folders for proposals per
item bid with dates indicated.
(7)
The decision to award such a contract for professional services shall
be made by specific resolution of the Village Board.
(8)
In determining whether a service fits into this category, the individual
or body making the purchase shall take into consideration the following
guidelines:
(a)
Whether the services are subject to state licensing or testing
requirements;
(b)
Whether substantial formal education or training is a necessary
prerequisite to the performance of the services; and
(c)
Whether the services require a personal relationship between
the individual and municipal officials.
F.
Exception for sole source:
(1)
If a commodity type can be purchased only from one source, the Village
need not go through the process of advertising for competitive bids.
(2)
It is acknowledged that true sole-source situations (other than regulated
utilities, etc.) are rare and that proper documentation should be
provided to back up a sole-source assertion. The mere likelihood that
a particular vendor appears to be the only vendor known to deal in
a commodity is not enough, by itself, to support a sole-source assertion.
(3)
Village policy is to publicly advertise for bids in these situations,
thereby possibly uncovering other vendors that might solicit Village
business for an apparent sole-source assertion. The mere likelihood
that a particular vendor appears to be the only vendor known to deal
in a commodity is not enough, by itself, to support a sole-source
assertion.
(4)
Village policy is to publicly advertise for bids in these situations,
thereby possibly uncovering other vendors that might solicit village
business for an apparent sole-source situation.
(5)
If a commodity purchase is to be made under a sole-source situation
without advertising for competitive bids, the village administrator
shall declare a sole-source situation, and shall delineate their reasoning
for determining a sole-source situation exists.
(6)
A sole-source situation shall not be confused with a standardization
issue.