[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.
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Subdivision I. General Provisions
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[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.
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Subdivision II. Purchases Without Competitive Bids
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[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]
(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);
[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
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Method/Minimum Documentation
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|---|---|---|
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$50 to $499
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Purchase order
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$500 to $4,999
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Two verbal quotations with written record of each quote
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$5,000 to $19,999
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Three written/fax quotations or written request for proposals
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(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.
