[HISTORY: Adopted by the Township Committee of the Township of Manalapan 12-6-2000
by Ord. No. 2000-15. Additional amendments noted where applicable.]
A.
The Township Committee as the governing body of the Township
realizes that it is responsible to implement a central purchasing function
for the Township Treasurer to supervise proper disbursement of funds and for
all departments and officials of the municipal government to function in an
effective and responsible manner.
B.
The Township Committee recognizes that the major portion
of budgeted funds are disbursed in the procurement of goods and services and
that it is necessary to establish a procedure to regulate purchases in the
Township which permits continuous awareness and control of all commitments
and expenditures, as well as the assurance of proper economical considerations.
C.
The Township Committee further recognizes that it is
necessary with regard to capital improvements that all costs for such projects
be encumbered against the ordained appropriation.
D.
Any and all funds available to the Township are directly
or indirectly contributed by the taxpayers, citizens and residents of the
Township or the state; all expenditures must be open to public review and
are subject to questioning by any of the aforesaid.
As used in this chapter, the following terms shall have the meanings
indicated:
Refers to the responsibilities and functions described in the detailed procedure established by the Township Administrator, which is included in § 37-10 of this chapter.
The Township Administrator or his representative in his statutory
function of administrator of purchasing, or a person designated and authorized
by him as Assistant or Acting Director of Finance, subject to approval of
the governing body, and shall be referred to in the detailed procedure as
the "buyer."
Any department head or any person authorized by a department head
to prepare a purchase requisition in accordance with the procedure set forth
in this chapter and as implemented in the detailed procedure.
B.
Each department shall follow the procedure and use such
forms for requisitioning and purchasing as the Purchasing Agent shall prescribe.
Upon request of the Purchasing Agent, each department head shall submit a
complete statement of the materials, supplies, equipment, work and labor under
contract which will be required by the department during the ensuing year,
half-year or quarter-year, as the Purchasing Agent may determine according
to the best estimate of the department head. The statement shall be in writing
and in such form and detail as the Purchasing Agent may require.
The office of the Treasurer has the following responsibilities:
A.
All purchase estimates in excess of the amount set forth,
or the amount calculated by the Governor and pursuant to N.J.S.A. 40A:11-3
shall be publicly advertised when required by law, and upon receipt of sealed
bids by the Township Clerk, the bids shall be opened by the Township Clerk
in the presence of the Purchasing Agent or his representative and such other
person that may be designated by the Township Clerk from time to time dependent
upon the nature of the item for which bids have been taken. Recording of the
bid taking, when conducted out of the presence of the governing body, shall
be submitted to the governing body with recommendations of award of contract,
together with a summary in writing of all bids received setting forth the
name and address of the bidder in the amount of the bid.
B.
All bids, when required by law, will be received at the
Municipal Building in the Township on the date and time set forth in the notice
of bid proposal.
The governing body, upon consideration and review of the procedure and recommendations referred to in § 37-5, shall award the contract of purchase to the lowest responsible bidder pursuant to law, N.J.S.A. 40A:11-1 et seq.
The Mayor shall execute and sign all contracts awarded by the governing
body and authorized pursuant to law. The signature of the Mayor shall be attested
to by the Township Clerk. In those instances where the dollar amount of contract
awarded is less than the amount required by law to be bid, the Purchasing
Agent may, in the absence of the Mayor, execute and sign the contract to be
attested to by the Township Clerk.
A.
All purchases, whether they are for supplies, materials,
equipment, labor or other contractual services for the Township, shall be
made by the Purchasing Agent pursuant to a written requisition from the department
head. The appropriation for the department shall be charged subsequent to
certification by the office of the Treasurer, setting forth that a sufficient
unencumbered balance of detailed appropriation is available to pay therefor.
B.
The following guidelines apply to the obligation of the
buyer to purchase at reasonable and economical levels:
Aggregate Cost For Any One Item
|
Action Required
| |
---|---|---|
Under 15% of statutory bid threshold
|
At least 2 quotes preferred but not required
| |
Over 15% of statutory bid threshold
|
At least 3 verbal or written quotes required where practicable
| |
Over bid threshold
|
Follow statutory procedure for threshold public bid, where applicable
and required
|
C.
Where no quote is required or where verbal quotes are
acceptable, the buyer shall establish a written record of purchasing experience.
D.
The Administrator shall set forth uniform standards for
requisitions and purchases. The Purchasing Agent shall control the delivery
of all supplies, materials, equipment and other items purchased and shall
make or cause to be made proper test checks and inspections. The Purchasing
Agent shall ascertain whether the supplies, materials, equipment and other
items purchased comply with the specifications and shall cause laboratory
or other tests to be made whenever, in the opinion of the department head,
it is necessary to determine whether the materials or supplies furnished are
of the quality and standard required as part of the procedures for requisition
and purchase. Each department head may request a transfer of funds within
its detailed appropriation of line items in order to fulfill an unforeseen
necessity.
A.
Each department shall follow such procedures and use
such forms for purchasing as the Administrator shall prescribe. Upon request
of the Purchasing Agent, each department head shall submit a complete statement
of the materials, supplies, equipment, work and labor under contract, which
will be required by the department during the ensuing year, half-year or quarter-year,
as the Purchasing Agent may determine, according to the best estimate of the
department head. The statement shall be in such form and detail as the Purchasing
Agent may require.
B.
The Administrator shall establish a procedure for the
purchase of any item required for the immediate protection of the public health,
safety, morals or welfare of the municipality, which will permit emergency
purchases to be made for specific purposes.
C.
Except as the Administrator, or such other officer as he may designate, may authorize, in case of emergency, no purchase shall be made and no bill, claim or voucher shall be approved unless the procedures prescribed by this chapter pursuant to detailed procedures established by the Administrator and included in § 37-10 of this chapter have been followed.
A.
Requisitions.
(1)
A requisition shall be prepared any time a department
head believes that supplies, materials, repairs or services should be ordered.
Once completed, each requisition shall be forwarded to the purchasing agent
for further processing.
(2)
The Purchasing Agent shall examine each requisition for
completeness and shall approve those found to be in compliance with this chapter
and where adequate funding is available.
(3)
Each requisition shall be compared as to whether an order
for a particular item requested by a department has already been placed. If
any requisition reaching the Purchasing Agent appears in any way to be a duplicate
of a previous requisition which has been processed, the Purchasing Agent shall
note such fact on the requisition and return it to the submitting party.
(4)
The Purchasing Agent shall compare each requisition against
all corresponding budget appropriations to determine the availability of funds.
If funds are not available the requisition shall be returned to the department
head for the department head to obtain additional funding or to modify the
requisition to fit the funding availability.
(5)
The Purchasing Agent shall forward the properly prepared
purchase order to the Finance Director or his designee for verification of
compliance with all relevant laws and for encumbrance.
(6)
After approval the Finance Director or his designee shall
return the completed purchase order including the payment voucher to the Purchasing
Agent for forwarding to the department head for processing with the vendor.
A copy of the processed purchase order shall be held in an open file in the
Finance Office and purchasing office until the executed payment voucher is
returned to the Purchasing Agent by the department head for payment processing.
B.
Purchase orders.
(1)
All purchase orders shall be prepared by the office of
the Purchasing Agent in a form approved by the Administrator or his representative.
All purchase orders exceeding the bid threshold must be approved by the governing
body by resolution at a regular meeting conducted by it.
(2)
The purchasing system described in this section shall
be strictly adhered to. All purchasing system documents shall be prepared
only in accordance with the detailed instructions found herein.
(3)
Distribution of the copies of each purchase order shall
be as follows:
C.
Receipt of goods and voucher preparation.
(1)
When items on a purchase order are received, they shall
be examined immediately by the requesting department to determine if the goods
or services are correct insofar as quantity, specification and condition are
concerned.
(2)
If the shipment on a purchase order is complete and meets
all criteria listed above, the individual or department responsible for verifying
the purchase shall attach the vendor's invoice, sign the payment voucher,
and forward the voucher and vendor invoice to the Purchasing Agent for payment
processing.
(3)
When a shipment or order is incomplete or damaged, the
individual or department responsible shall mark any shipping papers with the
appropriate purchase order number, shall note on any papers that the shipment
is not complete, shall indicate on or attach to any shipping papers the remaining
balance of items to be received later and shall forward any shipping papers
to the office of the Purchasing Agent. If an incomplete or damaged shipment
is received without any shipping papers, the individual or department responsible
shall forward a separate written memorandum to the office of the Purchasing
Agent, setting forth the appropriate purchase order number and describing
the damaged or incomplete goods. The Purchasing Agent and the requesting department
shall determine if a partial payment is to be made on any incomplete shipment
or partially damaged shipment and shall notify the vendor accordingly.
(4)
The Purchasing Agent, on receipt of any shipping papers
and completed purchase orders, shall update his records and forward the completed
voucher to the Finance Office for payment.
(5)
When a partial shipment has been received and a vendor
requests payment for partial shipment, if agreed to by the requesting department,
the Purchasing Agent shall transmit the partial payment voucher under each
purchase order to the Treasurer's office for payment, indicating on the
voucher a notation that it is for partial payment which is ready for payment.
(6)
Treasurer's office. No voucher shall be paid unless
approved by the requesting department and the Purchasing Agent, and all of
the required invoices are attached.
D.
Emergency purchases. When a purchase of supplies or need
of repair requires immediate action and there is no time for a requisition,
the department head, immediately before or after placing the order, shall
notify the Purchasing Agent in order that he may check whether sufficient
funds are available and that a purchase order can be prepared.
E.
Special purchase orders.
(1)
A payroll order shall be set up once yearly following
the approval of the Salary Ordinance or Resolution. All checks drawn during
the year for payroll shall be charged against this order.
(2)
For standard expenses, one purchase order for each type
shall be set up annually, based on the amount appropriated for such expense
in the detailed budget.
(3)
For professional services, an order shall be set up for
such predetermined fee and additional orders as authorization or resolutions
are passed for special work.
(4)
Contracts, whether budgeting or capital, shall be set
up by the purchase order immediately following the issuing of the contract.