[Res. No. 25-91, 3-12-1991]
The function of the purchasing system is to provide internal control measures in the purchasing and payment for services and products for the City. The system will lessen the possibility of over-expenditures or any attempt to expend funds that are not available. Through the aid of periodic reports, the auditor and department heads will be able to budget funds in such a way to prevent the lack of funds when needed toward year's end. The system will also provide a check to verify authority for purchases.
[Res. No. 25-91, § A, 3-26-1991; Res. No. 69-92, 4-28-1992]
(a) 
All purchase requests for goods and services in excess of $100 must begin with a purchase order (p.o.). Before a p.o. is released to a supplier or contractor, a notice of the proposed encumbrance must be filed with the City auditor by the administrative unit incurring the liability. This notice must be signed by the department head or his designee and must state the nature and amount, or estimate, of the encumbrance and the appropriate account to be charged.
(b) 
If a sufficient unencumbered appropriation balance is available, the City auditor will enter the encumbrance against the appropriation account affected and indicate his approval by signing and numbering the p.o. In case a proposed commitment exceeds the balance available, the encumbrance cannot be entered, and the p.o. must be returned to the unit without approval. The department head must then request additional funding from the ways and means committee, which in turn will provide a recommendation for approval or rejection of the request to the full Council. Final approval or disapproval of a request for additional funding will come from a vote of the Common Council. A vote on approval or disapproval of a request for additional funding will occur within 30 calendar days of the date requested.
(c) 
Emergency purchases must be followed up with a confirming p.o. as soon as possible, next business day.
(d) 
Exceptions to the purchase order procedures are utility services, monthly service contracts, minor purchases of less than $50, real estate tax bills, court ordered payments, any payments which could provide penalties or assessments for delinquencies, debt service payments, and other possible add-ons.
[Res. No. 25-91, § B, 3-26-1991]
(a) 
This section deals with the receipt of goods and services and the approval of vouchers for payment.
(b) 
The present policy is for processing vouchers for payment at the second Common Council meeting of the month. All present procedures remain in effect.
(c) 
Invoices returned with vouchers indicating purchases by subordinates without purchase orders should be initialed by the immediate supervisor authorizing the purchase.
[Res. No. 25-91, § C, 3-26-1991]
If there are requests for transfer of funds for non-budgeted equipment, capital projects, and capital items, the auditor shall notify the department head of the unavailability of funds. To request an increase in his appropriation account, the department head shall proceed as follows:
(1) 
The request for transfer, or increase in appropriations, shall be in writing and directed to the auditor.
(2) 
An explanation as to why the purchase is necessary must be included in the request.
(3) 
The amount needed and the code involved must be indicated. After accumulating all the related information, the auditor shall submit the request to the ways and means committee for its action. On approval of the necessary Common Council resolution, the auditor shall notify the requisitioner who shall resubmit the purchase order. Notice shall also be given if the Common Council disapproved the request.
[Res. No. 25-91, § D, 3-26-1991]
In the event of an unanticipated revenue shortfall or other condition or situation arising which effects the City's ability to meet its previously budgeted financial obligations, the Common Council, by resolution, may direct the department heads to curtail, limit, or restrict spending to levels less than previously budgeted or appropriated by means of an amendment to the budget. The ways and means committee of the Common Council shall recommend to the Common Council the amendment to the budget identifying reductions by line item and account number, after consultation with the department heads involved.
[Res. No. 25-91, § E, 3-26-1991]
The auditor's review committee of the Common Council shall review and recommend to the Common Council approval or disapproval of all expenditures of the City prior to Council action on warrants recommended by the auditor at the second Common Council meeting of the month.
[Res. No. 19-92, 2-25-1992]
Competitive bidding for purchase contracts or for public works may be initiated by advertising for bids when required by state law without separate Common Council approval if the Common Council has specifically authorized the procurement in the adopted budget.
[Added 7-10-2012 by Res. No. 50-12]
(a) 
Requests for proposals (RFP) for professional services and insurance shall be solicited via public advertisement, where required, or a comprehensive list of potential vendors can be compiled with vendors contacted directly and provided with the RFP.
(b) 
The RFP shall provide detailed information concerning the type of service to be provided, including minimum requirements and, where applicable, the evaluation criteria that will govern the contract award. The evaluation criteria may include factors in addition to price; in such case, the criteria and any weighting or ranking of the importance of those criteria shall be set forth in the RFP.
(c) 
The RFP process shall be based on a fair and equitable review and evaluation or ranking of the proposals.
Subdivision I. General Provisions
[Res. No. 57-97, § 1(A), 4-14-1992]
The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Responsible official or purchaser means each official having authority to initiate a purchase utilizing City funds.
[Res. No. 57-92, § 9, 4-14-1992]
This division will be reviewed annually. This division does not supersede division 1 of this article; however, if there is inconsistency between that division and this division, this division shall prevail.
[Res. No. 57-92, § 1(A), 4-14-1992]
Each responsible official of the City shall determine whether the proposed purchase constitutes a purchase contract or a public works contract. If there is doubt as to whether a contract is a purchase contract or a public works contract, the City Attorney should be consulted.
[Res. No. 57-92, § 1(B), 4-14-1992; amended 3-11-2014 by Res. No. 16-14]
The responsible official shall next make a good faith determination whether it is known or expected that the aggregate amount to be spent on the item in the current fiscal year is subject to competitive bidding taking into account past City-wide purchases. All purchases shall be presumed to be subject to competitive bidding except the following:
(1) 
Purchase contracts under $20,000;
(2) 
Public works contracts under $35,000;
(3) 
Emergency purchases;
(4) 
Certain municipal hospital purchases;
(5) 
Goods purchased from agencies for the blind or severely handicapped;
(6) 
Goods purchased from correctional institutions
(7) 
Purchases under state and county contracts;
(8) 
Surplus and secondhand purchases from another governmental entity.
[Res. No. 57-92, § 2, 4-14-1992]
If it is determined that a procurement is subject to competitive bidding, the responsible official shall proceed with the procurement in accordance with the General Municipal Law of the state. If it is determined that a procurement is not subject to competitive bidding, the responsible official shall proceed with the procurement in accordance with this division.
Subdivision II. Purchases Without Competitive Bids
[Res. No. 57-92, § 3, 4-14-1992]
A decision that a purchase is not subject to competitive bidding shall be documented in writing by the individual making the purchase. This documentation may include, without limitation:
(1) 
Written quotes from vendors;
(2) 
Notation of oral quotes from vendors;
(3) 
A memo from the responsible official;
(4) 
A copy of the contract indicating the source which makes the item or service exempt;
(5) 
A memo from the purchaser detailing the circumstances which led to an emergency purchase; and
(6) 
Any other written documentation that is appropriate.
[Res. No. 57-92, § 4, 4-14-1992; amended 5-13-2014 by Res. No. 38-14]
(a) 
Goods and services that are not subject to competitive bidding will be purchased in accordance with this division by use of written requests for proposals, written quotations, verbal quotations, or such other method that assures that goods will be purchased at the lowest price, taking quality, timeliness of delivery and service into account, or best value as defined by New York State Finance Law § 163, as authorized by L.L. No. 2-2014.[1]
[1]
Editor's Note: See Ch. LL4.5, Art. II.
(b) 
Best value is defined in the New York State Finance Law § 163. When awarding contracts under the best value standard, the City must consider the overall combination of quality, price and other elements of the required commodity or service that in total are optimal relative to the needs of the City of Olean. Use of the best value standard must rely, wherever possible, on objective and quantifiable analysis. The best value standard may identify as a quantitative factor whether offers are small businesses or certified minority- or women-owned business enterprises as defined in New York Executive Law § 310. The best value standard may only be used for purchase contracts, which includes contracts for service work, but excludes any purchase necessary for the completion of a public works contract pursuant to Article 8 of the Labor Law.
(c) 
The following circumstances shall be the only exceptions to the requirements of this provision:
(1) 
Purchase contracts over $20,000;
(2) 
Public works contracts over $35,000;
(3) 
Goods purchased from agencies for the blind or severely handicapped pursuant to the State Finance Law § 175-b;
(4) 
Goods purchased from correctional institutions pursuant to the Correction Law § 186;
(5) 
Purchases under state contracts pursuant to the General Municipal Law § 104;
(6) 
Purchases under county contracts pursuant to the General Municipal Law § 103(3);
(7) 
Purchases pursuant to Section 2-229 of this division which detail procedures for procurement of professional services, emergency procurement and procurement of items having a price of less than $500.
[Res. No. 57-92, § 5, 4-14-1992; amended 5-13-2014 by Res. No. 39-14]
(a) 
The following minimum documentation type shall be required for procurement not requiring competitive bidding pursuant to this policy:
(1) 
Estimated Amount of Purchase Contract
Method/Minimum Documentation
$50 to $499
Purchase order
$500 to $4,999
Two verbal quotations with written record of each quote
$5,000 to $19,999
Three written/fax quotations or written request for proposals
(2) 
Estimated Amount of Public Works Contracts
Method/Minimum Documentation
$50 to $499
Purchase order
$500 to $2,999
Two verbal quotations with written record of each quote
$3,000 to $9,999
Two written/fax quotations
$10,000 to $34,999
Three written/fax quotations or written request for proposals
(b) 
For purchases or public works less than $500, purchases shall be subject to a good faith decision made in the best interest of the community, avoiding favoritism.
(c) 
In all cases where verbal quotes are requested, a good faith effort shall be made to obtain a reasonable number of proposals or quotations.
(d) 
If the purchaser is unable to obtain more than one proposal or quotation, the purchaser will document the attempt made by obtaining other proposals. The failure to obtain more than one proposal shall not be considered a bar to the procurement.
[Res. No. 57-92, § 6, 4-14-1992]
Documentation is required of each action taken in connection with each procurement not requiring competitive bidding. Documentation includes Common Council resolutions, memoranda, published current state bid price material, written quotes, telephone logs (for verbal quotes), request for proposals and other appropriate forms of documentation including check lists and flow charts.
[Res. No. 57-92, § 7, 4-14-1992]
Documentation and a justifying explanation is required with each procurement not requiring competitive bidding whenever a procurement is awarded to other than the lowest responsible bidder. This documentation will include a complete explanation of how the award will nevertheless achieve savings or how the offeror was not responsible. The City Attorney shall be contacted in each such circumstance.
[Res. No. 57-92, § 8, 4-14-1992; amended 5-13-2014 by Res. No. 40-14]
The solicitation of alternative proposals or quotations shall not be required by this division in the following circumstances:
(1) 
Procurement of professional services or services requiring special or technical skill, training or expertise. The individual or company must be chosen based on accountability, reliability, responsibility, skill, education and training, judgment, and integrity. These qualifications will not always be found in the individual or company that offers the lowest price as the nature of these services are such that they do not readily lend themselves to competitive procurement procedures. In determining whether a service fits into this category, the determination 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.
Professional or technical services shall include but not be limited to the following: services of an attorney; services of a physician; technical services of an engineer engaged to prepare plans, maps, and estimates; securing insurance coverage and/or services of an insurance broker; services of a certified public accountant; investment management services; printing services involving extensive writing, editing, or artwork; management of municipally owned property; and computer software or programming services for customized programs, or services involved in substantial modification and customizing of prepackaged software.
(2) 
Emergency purchased pursuant to General Municipal Law § 103(4). Due to the nature of this exception, these goods or services must be purchased immediately, and a delay in order to seek alternative proposals may threaten the life, health, safety or welfare of the residents or City employees. This section does not preclude alternate proposals if time permits.
(3) 
Services and goods under $500. The time and documentation required by this policy may be more costly that the item itself or wasteful and therefore would not be in the best interests of the taxpayer.
(4) 
Procurement where the price obtained is equal to or less than the state bid price. Procurements which are equal to or less than state bid prices shall be presumed acceptable for purchase contracts which do not otherwise require competitive bidding. Current state bid price material shall be required as documentation supporting the purchase.