[HISTORY: Adopted by the Board of Trustees of the Village of Perry 5-17-2018 by L.L. No. 3-2018.[1] Amendments noted where applicable.]
[1]
Editor's Note: This local law also superseded former Ch. 104, Purchasing Policy, adopted 8-14-1995, as amended.
Goods and services which are not required by law to be procured pursuant to competitive bidding must be procured in a manner so as to assure the prudent and economical use of public monies, in the best interests of taxpayers, to facilitate the acquisition of goods and services of maximum quality at the best value cost under the circumstances and to guard against favoritism, improvidence, extravagances, fraud and corruption.
A. 
Pursuant to requirements of General Municipal Law § 103, Competitive bidding process/requirements, and General Municipal Law § 104-b, which requires the governing board to adopt written policies and procedures for all goods and services that are not subject to the requirements of competitive bidding, the purpose of this Purchasing Policy is to bring together, in one document, comprehensive policy and procedural guidelines for the purchasing function, including all facets of the purchasing process: vouchers, abstracts, approvals, filing, etc.
B. 
All Village purchasing decisions should be designed to procure needed commodities of the desired quality at the best value cost to the Village.
C. 
Documentation requirements should be followed to act as evidence that the Village obtained the needed commodities of the desired quality at the best value cost to the Village, and that purchasing procedures complied with state and Village laws, rules, regulations and policies.
A. 
This policy shall be reviewed annually at the organizational meeting of the Village Board of Trustees, and revised and/or updated as necessary.
B. 
It will be the responsibility of the Mayor and/or Treasurer to distribute the current copy to responsible department heads (DPW Superintendent, Chief of Police, Treasurer, Justice, Sewer Plant, and Water Plant).
As used in this chapter, the following terms shall have the meanings indicated:
ADVERTISING
Will comply with state guidelines as identified in General Municipal Law § 103, Subsection 2 (i.e., published at least five days prior to bid opening and published in Village's legal newspaper).
AGGREGATION
All anticipated purchases of a like commodity or commodity group will be aggregated to determine if the Village will exceed the threshold. Each department head will be responsible to continually monitor his usage patterns to be aware of commodities that over a period of time will exceed the thresholds.
BEST VALUE
As defined in State Finance Law § 163, the basis for awarding contracts for services to the offeror which optimizes quality, cost and efficiency, among responsive and responsible offerors. For the purposes of this policy, the Village Board of Trustees adopts the above definition of "best value" as may be modified from time to time by the State Legislature.
BID AWARD
After compliance and price review, the Board will make a determination of which vendor is the lowest, responsible bidder meeting bid specifications and award the contract accordingly. This determination will be entered as a resolution in the minutes and, if the award is to other than the apparent low bidder, such resolution will specify in what material respects the low bidder(s) did not comply with specifications.
BID FILES
All bid files will be filed with the Village Clerk within marked folders indicating item bid and date, per item.
BID REVIEWS
The applicable department head and the Village Board will review bid compliance for each submittal. Compliance for each bid specification will be noted on the bid submittal for each vendor.
BID SPECIFICATIONS
Includes all conditions that will be used to evaluate compliance, including, but not limited to, product description, quality, alternatives and options, trade-in, delivery, mileage allowances, repair needs, etc. Considerations that are not listed in the specifications list cannot be used as the basis to measure compliance with the proposals and the award of the contract. Also each bid submittal shall require a statement of noncollusion by the vendor.
FORMAL QUOTE
Documented quote on company letterhead from vendor.
INFORMAL
Quote obtained by either verbal or electronic.
PUBLIC WORKS CONTRACT
Any service that included material and labor with labor being the predominant expense.
PURCHASE CONTRACT
Includes the purchase of equipment, and/or equipment and labor with equipment being the predominant expense.
TIME PERIOD
The time period of aggregation will be the Village fiscal year 12 consecutive months, or if more appropriate, the normal purchase season for the commodity group (for example, winter months for road salt, etc.).
Individual purchases which are not subject to state mandated bidding procedures will be governed as follows:
Purchases
Informal Quotes
Documented Quotes
PO
RFP
Other
2
3
2
3
Purchase Contracts Below $20,000
Under $999
$1,000 to $4,999
X
X
$5,000 to $19,999
X
X
Contracts for Public Works Below $35,000
Under $999
$1,000 to $4,999
X
X
$5,000 to $34,999
X
X
Emergencies
a
Insurance
a
Professional Services
X
Sole Source
a
NOTES:
a.
The method of solicitations for these types of procurements may vary depending on the circumstances encountered.
Each department head will fill out a purchase order request for all purchases over $1,000 to verify that there is ample funding in the account to cover the anticipated purchase. The responsible department head must sign the order and the Treasurer must also complete the certification before the purchase is made.
A. 
In the event that an appropriation balance is insufficient, the Treasurer will notify the department head. An explanation must be submitted as to why the code should be increased which may be done by Board action at the next regularly scheduled meeting.
B. 
The purchase order will be attached to the invoice when it is signed and submitted for payment.
C. 
All purchase order rules must be followed.
D. 
Such quotes will be documented on the quote form and attached to the claim voucher submitted to the Board for audit and review.
E. 
The quote form will indicate:
(1) 
Description of the commodity including options, etc.
(2) 
Prices and conditions quotes.
(3) 
Date of quote and duration.
(4) 
Contact person.
(5) 
Department head determination of the preferred vendor with his reasons for such a determination.
A. 
Each department head is primarily responsible to monitor his budget each month, and to keep their purchases and expenditures within the available budget for each line item.
B. 
If it appears that there is not enough budget money, they should either:
(1) 
Restrict spending; or
(2) 
Recommend an appropriate budget adjustment to the Board.
C. 
The Treasurer should also monitor budget compliance. Based on the monthly budget report, the Treasurer should alert the Board to any accounts that appear to be nearing or exceeding the budget. The Treasurer could also advise or recommend remedies, such as restricting spending, budget transfers, excess fund balances, or unanticipated excess revenues.
D. 
The Board should also monitor budget compliance on a monthly basis by reviewing the monthly budgetary reports and taking official Board action to implement any proper budgetary sections they deem advisable.
E. 
No purchase can be made until the Board has made available proper budgetary authority to spend.
A. 
Vendor invoices will be given directly to the responsible department head. They will review the invoice, to verify the commodities delivered, price and proper accounting. They will also fill out and sign a voucher form, and attach the invoice and any other departmental purchase orders, counter slips, receiving reports or shipping documents.
B. 
This package will be submitted to the Treasurer on the Wednesday before the Board meeting for processing. The Treasurer will submit these vouchers, along with a tentative summary listing, to the Board for their audit and approval. Upon audit and approval, the Mayor will sign the abstract of audited vouchers prior to the Treasurer preparing the final checks and mailing them to the vendor.
C. 
A Village Trustee that is auditing vouchers for a particular month hereby has the option to direct the Clerk-Treasurer to cause a department to present a purchased item for verification and comparison to the invoice.
It is the policy of the Board that all purchases and services over New York State bidding thresholds all purchase contracts of $20,000 or more and contracts for public work of $35,000 or more will be publicly advertised for competitive bids. (See General Municipal Law § 103.)
A. 
Exceptions to the competitive bidding requirements are as follows:
(1) 
Preferred source.
(2) 
State contracts.
(3) 
County contracts.
(4) 
Cooperative contract agreement.
(5) 
Certain federal contracts.
(6) 
Emergencies.
(7) 
Sole source.
(8) 
Professional services.
(9) 
True leases.
(10) 
Insurance.
(11) 
Second-hand equipment from other governments.
(12) 
Certain food and milk products.
(13) 
Certain municipal hospital purchases.
B. 
Preferred sources:
(1) 
In order to advance "special social and economic goals," the Village of Perry is required to purchase certain goods and services from providers having "preferred source" status. Prior to engaging in competitive bidding, a municipality must first determine whether a preferred source could provide the necessary good or service. (See State Finance Law § 162.) The following are preferred sources:
(a) 
Commodities produced by the Department of Correctional Services Industries Program;
(b) 
Commodities and services produced by any qualified charitable non-profit-making agency for the blind approved for such purposes by the Commissioner of the Office of Children and Family Services;
(c) 
Commodities and services produced by any special employment program serving mentally ill persons approved by the Commissioner of Mental Health;
(d) 
Commodities and services produced by any qualified charitable non-profit-making agency for other severely disabled person approved for such purposes by the Commissioner of Education;
(e) 
Commodities and services produced by a qualified veterans' workshop providing job and employment skills training to veterans where such a workshop is operated by the United States Department of Veterans Affairs and is manufacturing products or performing services within this state and where such workshop is approved for such purposes by the Commissioner of Education; or
(f) 
Commodities and services produced by any qualified charitable non-profit-making workshop for veterans approved for such purposes by the Commissioner of Education, or incorporated under the laws of this state and approved for such purposes by the Commissioner of Education.
(2) 
If goods or services needed by the Village of Perry are available from a preferred source, the Village of Perry must purchase from that preferred source and there is no competitive bidding to procure the needed goods or services. The Office of General Services is required to maintain a list of preferred sources.
C. 
Purchases under state, county and cooperative contracts:
(1) 
The Village is not required to perform their own advertising for competitive bids if the purchases are properly made under a state, county or cooperative contract.
(2) 
The purchase must be the same commodity, price, conditions and vendor as under the state or county contract.
(3) 
Each department head shall attach a copy of the applicable state, county or cooperative contract award documentation to the claim voucher submitted to the Board for audit and approval.
(4) 
The contract must have been made available for use by other governmental entities.
D. 
Exceptions for emergency purchases:
(1) 
Emergency purchases are not subject to state-mandated bidding procedures.
(2) 
In order to invoke this exception, the situation must:
(a) 
Result from an accident or unanticipated occurrence;
(b) 
Impact public buildings, property or the life, health and safety of municipal residents; and
(c) 
Require immediate action that cannot wait for competitive bidding.
(3) 
Such determination will be reviewed and affirmed by resolution of the Village Board at the next scheduled Board meeting, specifying the condition and the threat.
(4) 
The department head will still be required to document the solicitation of at least two informal quotes as outlined in the section "Other Purchases Not Requiring State Bidding Compliance."
(5) 
If the incident invoking the emergency clause could have been avoided or the Village of Perry failed to act to prevent the emergency, it is unlikely that the Village of Perry can rely upon this exception.
(6) 
If the Village of Perry created the event necessitating emergency procurement, it may not invoke this exception.
(7) 
If this exception is invoked, the good or service needed should be at the lowest cost available.
E. 
Exceptions for professional contracts:
(1) 
Professional services are not subject to state-mandated bidding procedures.
(2) 
Such professional services shall include, but not be limited to, accounting, legal, insurance coverage, engineering, and computer consulting, etc.
(3) 
Items not classifiable as professional services include, but are not limited to, tree removal, paving, etc.
(4) 
However, it is the policy of this Board that such professional services that will exceed $2,000 during a fiscal year will be subject to request for proposals, if the Board so deems it necessary.
(5) 
Such requests shall include (as specifications) all descriptions, conditions, alternatives and options that shall be used as the basis for making the decision and awarding the contract.
(6) 
The Village Clerk shall maintain separate folders for proposals per item bid with dates indicated.
(7) 
The decision to award such a contract for professional services shall be made by specific resolution of the Village Board.
(8) 
In determining whether a service fits into this category, the individual or body making the purchase 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.
F. 
Exception for sole source:
(1) 
If a commodity type can be purchased only from one source, the Village need not go through the process of advertising for competitive bids.
(2) 
It is acknowledged that true sole-source situations (other than regulated utilities, etc.) are rare and that proper documentation should be provided to back up a sole-source assertion. The mere likelihood that a particular vendor appears to be the only vendor known to deal in a commodity is not enough, by itself, to support a sole-source assertion.
(3) 
Village policy is to publicly advertise for bids in these situations, thereby possibly uncovering other vendors that might solicit Village business for an apparent sole-source assertion. The mere likelihood that a particular vendor appears to be the only vendor known to deal in a commodity is not enough, by itself, to support a sole-source assertion.
(4) 
Village policy is to publicly advertise for bids in these situations, thereby possibly uncovering other vendors that might solicit village business for an apparent sole-source situation.
(5) 
If a commodity purchase is to be made under a sole-source situation without advertising for competitive bids, the village administrator shall declare a sole-source situation, and shall delineate their reasoning for determining a sole-source situation exists.
(6) 
A sole-source situation shall not be confused with a standardization issue.