[HISTORY: Adopted by the Borough Council
of the Borough of Chesilhurst 12-13-1990 by Ord. No. 90-5. Amendments noted where
applicable.]
GENERAL REFERENCES
Payment of claims — See Ch.
9.
Financial control — See Ch.
30.
Chief Financial Officer — See Ch.
60, Art.
IV.
This chapter shall be known as the "Purchasing
and Payment of Claims Ordinance" of the Borough of Chesilhurst.
As used in this chapter, the following terms
shall have the meanings indicated:
BILLING
Any periodic payment, final payment, written approved change
order, or request for release of funds.
[Added 11-10-2016 by Ord.
No. 2016-7]
CONTRACTOR
Any person or entity that contracts with the Borough to provide
goods and/or services.
[Added 11-10-2016 by Ord.
No. 2016-7]
SUBCONTRACTOR
Any person who has contracted to furnish labor, materials,
or other services to a contractor.
[Added 11-10-2016 by Ord.
No. 2016-7]
USING AGENCY
Any department, agency, commission, committee, or board in
the Borough government using supplies or procuring services as provided
for in this chapter.
[Amended 3-9-1995 by Ord. No. 95-3]
There is hereby established in the Borough of
Chesilhurst the Central Purchasing Center (CPC). The Chief Financial
Officer is hereby designated as the Borough Purchasing Agent. The
CPC Office will make sure that all departments obtain supplies, equipment,
or other necessary goods or services needed in the various departments
such as sanitation, buildings and grounds, and the police, in a timely
and efficient manner.
A. The Purchasing Agent shall have general supervision
of the purchasing of the Borough of Chesilhurst and shall coordinate
all purchasing activities. The Purchasing Agent shall have the powers
and duties prescribed by this chapter and comply with all state and
federal laws regarding purchasing and public contracts.
B. The authority of the Purchasing Agent shall not include
construction of buildings, street improvements, parks and other capital
projects.
C. The Purchasing Agent shall act to procure for the
Borough the highest quality in supplies and services at the least
expense to the Borough.
A. The Borough Council shall, by resolution, designate
the person(s) who shall prepare and sign requisition forms.
[Amended 3-9-1995 by Ord. No. 95-3]
B. Requisitions having an estimated value in excess of
$500 shall be approved by the Mayor or President of Council.
C. Requisitions shall be completed and signed by the
authorized person. Requisitions shall describe the items requested
in sufficient detail to make them understandable to the Purchasing
Agent and identifiable to the vendor and include a brief reason for
the purchase. Requisitions shall include prices, if available; otherwise,
estimated prices should be entered. Requisition forms will not be
issued without prices. At least two quotations from vendor must be
documented for any requisition that exceeds the limits stated in N.J.S.A.
40A:11-3 and be attached to the requisition. Requisitions shall be
prepared in triplicate and submitted to the Purchasing Agent. The
original will be attached to the first copy of the requisition form.
The second copy will be filed alphabetically by the Purchasing Agent.
The third copy will be retained by the using agency.
[Amended 3-9-1995 by Ord. No. 95-3]
D. All the departments should be given an ample supply
of blank requisition forms.
[Added 3-9-1995 by Ord. No. 95-3]
E. The department head must sign off on these forms and
forward them to the CPC Office by dropping them in the slot provided
next to the sliding window located in front of the CPC Office. (The
door of the CPC Office should always remain closed to minimize interruptions.)
[Added 3-9-1995 by Ord. No. 95-3]
F. At the end of the day, the day-to-day operations manager
or his/her designee will review the completed requisition forms from
all departments. Then, the approved requisition forms will be processed
by the CPC Office, which should ensure that a processed requisition
form is mailed by the second day, except where a quote or a bid is
required, in which case it may take longer.
[Added 3-9-1995 by Ord. No. 95-3]
G. Where there is a contract between the Borough and
a vendor, requisition forms will be provided to the vendor. At the
end of any specified period, the vendor should submit the completed
and signed requisition form(s) along with all the invoices for payment
to the CPC Office.
[Added 3-9-1995 by Ord. No. 95-3]
H. No payment will be processed for any vendor without
the prior approval of the day-to-day operations manager or his/her
designee. All requests for payment shall be accompanied by all the
necessary supporting documentation. Goods delivered to the Borough,
such as oil, shall be properly accounted for and received by an appropriate
official of the Borough.
[Added 3-9-1995 by Ord. No. 95-3]
I. To inquire about the status of any outstanding requisition
or order, the department head or his/her designee should drop a short
note in the slot. The CPC Office should provide an adequate response
to all inquiries within a reasonable time.
[Added 3-9-1995 by Ord. No. 95-3]
A Borough employee may make purchases of $10
or less and be reimbursed by a direct payment voucher upon presentation
of a sales receipt and in accordance with the Borough's process for
payment of claims.
[Amended 3-9-1995 by Ord. No. 95-3]
In the case of an emergency, the department
head should immediately contact the day-to-day operations manager
or his/her designee for an approval to purchase a service, buy supplies
or equipment, etc., in such case, the department head should write
a report about the nature and details of the emergency and should
forward this report to CPC Office. The CPC Office will make sure that
the financial records reflect the business transactions which transpired
at the time of the emergency.
A. New Jersey law requires that individual purchases
or annual cumulative purchases within a particular category of materials
or services, which exceed a maximum amount stated in N.J.S.A. 40A:11-3
are to be advertised for public bidding under the Local Public Contracts
Law (N.J.S.A. 40A:11-1 et seq.).
B. A department with a category of purchases which is
expected to exceed the maximum amount stated in N.J.S.A. 40A:11-3
shall so promptly inform the Purchasing Agent and assist in the preparation
of specifications for public bidding, as necessary, under N.J.S.A.
40A:11-4 et seq.
The Purchasing Agent shall have the authority
to join with other units of government in cooperative purchase plans
as stated in the Revised Statutes of New Jersey when the best interests
of the Borough could be served thereby.
[Amended 3-9-1995 by Ord. No. 95-3]
Any person claiming payment from the Borough
of Chesilhurst shall first submit to the responsible executive agency
a detailed statement of the items or demand necessitating such claim,
specifying particularly how the bill or demand is made up, and a certification
by the party claiming payment that it is correct. No bill, claim or
demand shall be considered for payment unless the requisition form
has attached to it or includes a certification from a designated Borough
employee, having personal knowledge of the facts that the goods have
been received by or the services rendered to the Borough of Chesilhurst,
and that those services or goods are consistent with an existing contract
or requisition form. The Purchasing Agent shall have the duty to audit,
warrant and make recommendations on all claims and bills.
The bill or claim duly certified shall be presented
to the Borough Clerk for inclusion in the proceedings of the next
immediate formal meeting of the governing body, and it shall be the
duty of the Clerk to examine all bills or claims submitted for payment
in order to ascertain if proper administrative procedures have been
followed. All claims or bills to be considered by the governing body
shall be listed systematically and without preference, and said list
shall be made available to every member of said governing body at
least three days prior to formal action of that body.
Claims shall be considered by the Council, which
shall approve the same, except that said governing body may reject
any claim presented to it, stating the reason for such rejection.
Any disapproved claim shall be referred back to the Borough Clerk
with such instructions as the governing body may give at the time
of disapproval.
[Amended 3-9-1995 by Ord. No. 95-3]
It shall be the duty of the Borough Clerk to
record all claims in the official minutes indicating that the governing
body has by formal action approved the same, with appropriate records
as to any claims disapproved or rejected. All records pertaining to
approved or disapproved bills or claims shall be available for public
inspection.
[Amended 3-9-1995 by Ord. No. 95-3; 11-10-2016 by Ord. No. 2016-7]
The Purchasing Agent shall make disbursement
upon receipt of an order by the Borough Council, attested by the Borough
Clerk. Where applicable, the Borough will provide all payments in
accordance with the New Jersey Prompt Payment Law, N.J.S.A. 2A:30A-l
et seq.
[Added 11-10-2016 by Ord.
No. 2016-7]
A. If a contractor
has performed in accordance with the provisions of a contract with
the Borough and the billing for the work has been approved and certified
by the Borough or the Borough's authorized approving agent, the Borough
shall pay the amount due to the contractor for each periodic payment,
final payment or retainage monies. If the billing is approved, said
bill shall be paid to the contractor in the payment cycle following
approval by the Borough's governing body.
B. If a subcontractor
has performed in accordance with the provisions of its contract with
the contractor and the work has been accepted by the Borough, the
Borough's authorized approving agent, or the contractor, as applicable,
and the parties have not otherwise agreed, in writing, the contractor
shall pay to its Subcontractor within 10 calendar days of the receipt
of each periodic payment, final payment or receipt of retainage monies,
the full amount received for the work of the subcontractor based on
the work completed or the services rendered under the applicable contract.
C. All contractors
who submit proposals to the Borough for goods or services involving
the improvement of real property shall provide a list of subcontractors
with said proposal. Said contractors shall provide the Borough with
written assurance, through a proposal and/or any subsequent agreement
entered into with the Borough, that all identified subcontractors
will be paid in accordance with the New Jersey Prompt Payment Law,
N.J.S.A. 2A:30A-l et seq.
[Amended 3-9-1995 by Ord. No. 95-3]
After the Clerk has certified that the claims
have been approved, then he/she shall turn the same over to the Purchasing
Agent who shall forthwith prepare the necessary checks for the payment
thereof, which said checks shall be signed by the persons designated
by resolution adopted by Borough Council. After preparing checks for
the payment of claims, he/she shall record them in proper books of
account and thereafter mail the checks to the claimants.