[HISTORY: Adopted by the Borough of Rutherford Council 3-21-2000 by Ord. No. 2929-00. Amendments noted where applicable.]
Administrative offices — See Ch. 4.
Length of service award program — See Ch. 51A.
Cooperative purchasing — See Ch. 82.
Editor's Note: Former Ch. 81, Purchasing, adopted 4-1-1969 by Ord. No. 2017, was repealed 9-8-1999 by Ord. No. 2907A-99.
This chapter shall be known and may be cited as the "Purchasing Ordinance of the Borough of Rutherford."
For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meaning given herein:
- The Borough of Rutherford.
- BOROUGH PURCHASING AGENT
- The Purchasing Agent of the Borough of Rutherford.
- CONTRACTUAL SERVICES
- Includes all telephone, gas, water, electric light and power service, repair or maintenance of equipment, machinery and other Borough-owned personal property. The term shall not include professional and other contractual services that are by their nature unique and not subject to competition.
- COUNCILMANIC CHAIRMAN
- The Chairman of the Finance Committee.
- MAYOR AND COUNCIL
- The Mayor and Council of the Borough of Rutherford.
- Include all supplies, materials and equipment.
- USING AGENCY
- Any department, agency, commission, bureau or other unit in the Borough government using supplies or procuring contractual services as provided for in this chapter.
There is hereby established in the administrative and executive service of the Borough the Purchasing Department, and in said Department the office of Borough Purchasing Agent.
The Borough Purchasing Agent shall be the head and have general supervision of the Purchasing Department. The Agent shall perform all duties required of a department head by law and shall have the powers and duties prescribed by this chapter.
The Agent shall:
Be appointed according to the New Jersey State Civil Service Rules and Regulations and in accordance with the personnel regulations of the Borough of Rutherford.
Have considerable experience as a buyer or in responsible purchasing work involving the procurement of a variety of supplies, materials and equipment; graduation from a four-year college with specialization in business and public administration or an equivalent combination of experience and training as required by the New Jersey Department of Personnel.
The Agent shall have the power and it shall be his or her duty:
To purchase or contract for all supplies and contractual services needed by any using agency of the Borough in accordance with purchasing procedures as prescribed by this chapter and such procedures as the Agent shall adopt for the internal management and operation of the Purchasing Department.
The authority of the Agent, at this time, shall not include construction of buildings, street improvements, parks and other related projects that require professional engineering or architectural services.
Except as herein provided, no Borough officer or employee shall order or purchase any supplies or make any contract within the purview of this chapter, other than through the Purchasing Department, and any purchase ordered or contract made contrary to the provisions hereof shall not be approved by the Borough Purchasing Agent and the Borough shall not be bound thereby.
In addition to the purchasing authority conferred in Subsection B above and in addition to any other powers and duties conferred by this chapter, the Agent shall:
Act to procure for the Borough the highest quality of supplies and contractual services at the least expense to the Borough.
Discourage uniform bidding and endeavor to obtain full and open competition insofar as possible on all purchases and sales.
Establish and amend, when necessary, all procedures, rules and regulations authorized by this chapter and any other necessary to its operation.
Keep informed of current developments in the field of purchasing, prices, market conditions and new products and secure for the Borough the benefits of research done in the field of purchasing by other governmental jurisdictions, national technical societies, trade business and organizations.
Prescribe and maintain such forms as he or she shall find reasonably necessary to the operation of this chapter.
Prepare, adopt and maintain a vendor's catalog file. Said catalogs shall be filed according to materials and shall contain descriptions of vendor's commodities.
Exploit the possibilities of buying in bulk so as to take full advantage of discounts.
Act, in conjunction with the Borough's Chief Financial Officer, so as to procure for the Borough all federal and state tax exemptions to which it is entitled.
Have the authority to declare as irresponsible bidders those vendors who default on their quotations and to disqualify them from receiving any business from the Borough for a stated period of time, as recommended by the Purchasing Agent and approved by the Mayor and Council.
When necessary, prepare and adopt a standard purchasing nomenclature for using agencies and suppliers and for the Purchasing Department, with reference to state statutes.
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 Agent detailed requisitions or estimates of their requirements in supplies and the contractual services in such manner at such times and for such future periods as the Agent shall prescribe.
The 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 and the needs of the using agency.
Any purchase order or contract within the purview of this chapter in which any officer or employee of the Borough is financially interested, directly or indirectly, shall be void, except that, before the execution of a purchase order or contract, the Council shall have the authority to waive by resolution compliance with this section when it finds such action to be in the best interests of the Borough.
The Agent and every officer and employee of the Borough 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, except where given for the use and benefit of the Borough.
All purchases of and contracts for supplies and contractual services and all sales of obsolete equipment or other personalty shall, except as specifically provided herein, be based wherever possible on competitive bids.
Except as otherwise provided herein, when the estimated cost of supplies or contractual services shall exceed the bid threshold amount as provided under state statute, they shall be purchased by formal, written contract from the lowest responsible bidder after due notice inviting proposals as required by the Statutes of New Jersey.
When deemed necessary by the Agent, bid deposits shall be prescribed in the public notices inviting bids. Unsuccessful bidders shall be entitled to return of surety where the Agent has required such. A successful bidder shall forfeit any surety required by the Agent upon failure on his part to enter a contract within 10 days after the award.
The Mayor and Council shall have the authority to reject all bids, parts of all bids or all bids for any one or more supplies or contractual services included in the proposed contract when the public interest will be served thereby.
Award of contract.
The Agent shall not award the bid of a contractor or supplier who is in default on the payment of taxes, licenses or other moneys due the Borough.
Contracts shall be awarded to the lowest responsible bidder. In determining the lowest responsible bidder, in addition to price, the Agent shall consider:
The ability, capability and skill of the bidder to perform the contract or provide the service required.
Whether the bidder can perform the contract or provide the service promptly or within the time specified without delay or interference.
The character, integrity, reputation, judgment, experience and efficiency of the bidder.
The quality of performance of previous contracts or services.
The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service.
The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service.
The quality, availability and adaptability of the supplies or contractual services to the particular use required.
The ability of the bidder to provide future maintenance and service for the use of the subject of the contract.
Such other factors as are required under applicable state statutes.
When the award is not given to the lowest bidder, a full and complete statement of the reasons for placing the order elsewhere shall be prepared by the Agent and filed with the other papers relating to the transaction.
The Agent shall have the authority to require a performance bond before entering a contract in such amount as he shall find reasonably necessary to protect the best interests of the Borough.
Editor's Note: See N.J.S.A. 40A:11-1 et seq.
[Amended 6-26-2018 by Ord. No. 3465-18]
All requisitions, regardless of amount, are to be signed by the department head of the requesting department, shall be presented to the CFO (to ensure the availability of funds, and that the proper budgetary account is charged), and to the Borough Administrator, or in the absence of a Borough Administrator by anyone the Council designates by resolution.
All requisitions under the current bid threshold ($40,000 at the time of the most recent amendment to this section) shall be signed by the department head of the requesting department, the Chief Financial Officer, and the Borough Administrator, or in the absence of a Borough Administrator by anyone the Council designates by resolution.
In addition to the department head of the requesting department, the CFO, and the Borough Administrator, all requisitions having an estimated dollar value in excess of the current bid threshold ($40,000 at the time of the most recent amendment to this section) shall be presented for approval to the appropriate Councilperson and are subject to Council approval. However, a Councilperson's signature is not required for any requisitions that are statutory and contractually negotiated, including but not limited to requisitions for health benefit payments, insurance payments, distribution of tax levies, sewer utilities, pension payments and debt payments.
Emergency purchases shall be made as follows:
By the Agent.
In case of an apparent emergency that requires immediate purchase of supplies or contractual services, the Agent shall secure by open market procedure, as herein set forth, at the lowest obtainable price, any supplies or contractual services, the amount of the expenditure not to exceed $500.
A full report of the circumstances of an emergency purchase shall be filed by the Agent with the Mayor and Council and shall be entered in the minutes of the Council.
By the department head.
In case of actual emergency and with the prior consent of the Agent, the head of any using agency may purchase directly any supplies or services whose immediate procurement is essential to prevent delays in the work of the using agency which may vitally affect the life, health, safety or welfare of citizens, so long as the emergency purchase does not exceed the bid threshold amount as provided under state statute.
When the emergency purchase may exceed the bid threshold amount, such purchase shall not be made unless it meets the criteria provided under state statutes dealing with emergency purchases. The Purchasing Agent and the Borough Administrator must preapprove same, after consultation with the Borough Attorney.
All emergency purchases shall be made, wherever possible, after quotes have been obtained on the open market, as herein set forth.
The head of such using agency shall send to the Agent a requisition and a copy of the delivery record, together with a full report of the circumstances of the emergency. The report shall be filed with the Mayor and Council.
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 or contract.
The 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 Agent shall have the authority to make use of laboratory facilities of any outside laboratory. The cost of such tests shall be charged to the using agency in the same manner as described in § 81-9 regarding the approval of requisitions.
All using agencies shall submit to the Agent, at such times and in such form as he shall prescribe, reports showing stocks of all supplies which are no longer used or which have become obsolete, worn out or scrapped.
The 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.
The Agent shall have the authority to transfer surplus stock to other using agencies.
The 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 section shall be made to the highest responsible bidder. A record of each sale shall be made and placed on file.
The Agent shall have the authority to join with other units of government in cooperative purchasing plans as stated in the Statutes of the State of New Jersey when the best interests of the Borough could be served thereby.
All ordinances or parts of ordinances, resolutions or parts of bylaws inconsistent with this chapter be and the same are hereby repealed.