[R.O. 1966 § 2:5-10]
There shall be, within the Department of Administration, a Division of Central Purchasing, the head of which shall be the City Purchasing Agent.
[1]
Editor's Note: In the 1986 Reorganization of City Government, the Division of Central Purchases was renamed to "Division of Central Purchasing" (Ord. 6 S+FB (S-1), 7-16-1986).
[R.O. 1966 § 2:5-11[a]]
The City Purchasing Agent shall, prior to his/her appointment, have been qualified by training and at least five years experience in commercial or governmental purchasing. His/her compensation shall be such sum as shall be fixed by Mayor's Executive Order.
[R.O. 1966 and 1966 C.S. § 2:5-11; Ord. 6 S+FF, 7-10-1985 § 1; Ord. 6 S+FB(S-1), 7-16-1986; Ord. 6 S+FH, 10-7-1987 § 1; Ord. 6 S+FJ, 11-13-1989 § 1; Ord. 6 S+FM, 8-7-1991 § 1; Ord. 6 S+FH, 9-1-1993 § 1; Ord. 6 S+FZ, 7-12-1995; Ord. 6 S+FP, 8-6-1997; Ord. 6 S+FA, 12-1-1997; Ord. 6 S+FD, 6-7-2000 § 1; Ord. 6 S+FB, 3-21-2001 § 1; Ord. 6 S+FD, 8-1-2001 § 1; Ord. 6 S+FE, 10-5-2005 § 1; Ord. 6 PSF-E, 4-6-2011; Ord. 6PSF-A(S), 1-7-2016; Ord. 6PSF-B, 8-8-2018; amended 8-5-2020 by Ord. No. 6PSF-F, 08-05-2020; 9-4-2025 by Ord. No. 6PSF-C, 09-04-2025]
The City Purchasing Agent, under the direction and supervision of Business Administrator, shall:
a.
Prepare the advertisements, to advertise and receive bids for the purchase of all goods, materials, supplies and property, except real property or any interest therein, required by any department, office or agency of the City Government.
1.
Accept any bequests, legacies, and gifts on behalf of the City of Newark, in the manner set forth in the condition of the bequest, legacy or gift which is not inconsistent with the laws of the United States and New Jersey. Prior to the acquisition, receipt, or delivery of any bequest, legacy, or gift, the Purchasing Agent shall present a resolution for consideration by the Governing Body authorizing the acceptance of the bequest, legacy or gift for use by the City of Newark.
b.
1.
Have the power to make awards for all purchases, contracts and agreements for goods and services. In the case of such purchases, contracts and agreements awarded pursuant to this power not in excess of $53,000, the Purchasing Agent shall report such awards to the Municipal Council in the form of a monthly report indicating the date of the awards, the name of the contractor, the amount of the award, the term of the contract, and a brief description of the goods, materials, supplies and/or equipment to be furnished.
2.
Except for the case of services involving travel and conferences, have the power to make awards for all purchases, contracts and agreements for the provision of services not in excess of $53,000.
3.
Have the power to make awards for all purchases, contracts and agreements for the provision of services involving travel and conferences in all cases where the total cost of the individual trip does not exceed $2,500 in the aggregate for one individual.
4.
When awarding a contract pursuant to N.J.S.A. 40A:11-6.1 under the Local Public Contracts Law, the Purchasing Agent shall review the following factors for determining the lowest responsible bidder.
(a)
Whether or not any of the bids received for goods and services are from businesses and entities which should be paying payroll taxes to the City of Newark as authorized by statute (N.J.S.A. 40:48c-14) and certified by the Division of Tax Abatements/Special Taxes. If it is determined that an entity should be paying employer payroll taxes to the City but is delinquent in its payments, then the Purchasing Agent shall deem the entity to be an "irresponsible" bidder due to its noncompliance with the Employer Payroll Tax Ordinance and shall reject the bid on this basis.
(b)
Obtain a certification from the Division of Tax Abatement/Special Taxes that the business/entity is registered with the City and is current on the payment of all of its employer payroll taxes.
(c)
When calculating the prices to determine the lowest responsible bidder, the Purchasing Agent shall reduce the bid of the employer payroll tax paying entity whose tax payments are current with the City of Newark, by 1% point to offset the 1% employer payroll tax which the entity is currently paying as a cost of doing business within the City of Newark. If it is determined that any entity submitting a bid for the provision of goods and services to the City should be registered as an employer payroll tax paying entity but is not registered as such, that entity shall not be eligible for the 1% reduction of its bid amount.
(d)
Upon factoring in the discounted bid price of the employer payroll tax paying entity, the Purchasing Agent shall then calculate the bids and prices of all bidders to determine the lowest responsible bidder.
c.
Notwithstanding that the cost or contract price will exceed $53,000 and subject to rules and regulations as may from time to time be promulgated by the Municipal Council:
1.
Have the power to purchase goods, services or property, except real property or any interest therein, without having public advertising for bids and bidding therefor, when a sudden and unforeseeable emergency affecting the public health, safety or welfare requires the immediate delivery of the goods or the performance of services before the next scheduled meeting of the Municipal Council and action by the Municipal Council is not practicable.
2.
Have the power to purchase goods, services or property, except real property or any interest therein, not to exceed, in the aggregate, $7,950 for any one emergency without public advertising for bids and bidding therefor when an emergency, other than described in paragraph c.1, affecting the public health, safety or welfare requires the immediate delivery of goods or the performance of services before the next scheduled meeting of the Municipal Council and action by the Municipal Council is not practicable.
3.
The Purchasing Agent may award contracts not to exceed $7,950 in aggregate, without soliciting competitive quotations.
d.
1.
Provide written monthly reports to the Municipal Council for the purchases, contracts, and agreements under paragraph b above, which reports shall include (i) the department, office or agency which requested the purchase, (ii) the name of the vendor furnishing the goods or services, (iii) the dollar amount of the purchase, contract or agreement, and (iv) a copy of the certification of the Municipal Comptroller.
2.
Provide immediate reports to the Municipal Council for all purchases, contracts, and agreements under paragraph c above, which report shall include all information required to be furnished in paragraph d, 1 above; and, in addition (a) a copy of the written requisitions, describing the nature of the emergency, (b) the time of its occurrence, (c) the need for invoking the provisions of paragraph c., all of which shall be certified by the officer or director in charge of the department, office or agency wherein the emergency occurred, and (d) a statement of the Purchasing Agent that he/she is satisfied that an emergency occurred, and (e) a statement of the Purchasing Agent that he/she is satisfied that an emergency existed.
e.
All purchases made and contracts awarded for any supplies, materials or equipment or contractual services shall be pursuant to a written requisition from the head of the department, office or agency whose appropriation will be charged, and the certification of the Comptroller that a sufficient unencumbered balance of appropriation is available to pay therefor. All such contracts shall conform with the provisions relating to City contracts generally as set forth in Section 2:4-11; 2:4-12 and Sections 2:4-14 through 2:4-17.
1.
(a)
The Purchasing Agent shall provide immediate notice to the Municipal Council through writing of any request for an Emergency Contract.
(b)
Emergency Contracts shall not be for a period in excess of 90 days.
(c)
No extensions of Emergency Contracts shall be permitted without authorization by the Municipal Council by a resolution.
(d)
The Purchasing Agent shall provide the Municipal Council through the City Clerk with the Award of Emergency Contract as soon as the same has been executed.
(e)
The Purchasing Agent shall be required to post the Emergency Contract on the City's Web Site within 48 hours.
f.
All contracts awarded by the City for the performance of services shall include the name of the department, division, office or using agency which requested the services and the name and title of the head of the aforementioned department, division, office or using agency who shall be required to monitor the performance of the contractor on a close and continuous basis and also provide the Municipal Council, the Business Administrator and the City Purchasing Agent with appropriate monthly reports during the term of the contract indicating the quality of work being performed by the contractor in conformance with contract specifications.
g.
1.
Establish and enforce specifications with respect to such services, supplies, materials and equipment.
2.
Inspect or supervise the inspection of all deliveries of supplies, materials and equipment and determine their quality, quantity and conformance with specifications.
3.
Have charge of any and all central storerooms and warehouses which may be established.
4.
Transfer to or between departments, offices and agencies and from or to central stores, such supplies, material and equipment as need appears, and arrange for the sale of surplus or obsolete items thereof, subject to the provisions of Section 2:2-3.
5.
Attend to and conduct through his/her offices the sale at auction of the following items of personal property and as herein provided:
(a)
Upon the direction of the Division of Police, such goods, chattels, automobiles or other property coming into the possession of the Division of Police, under and by virtue of the provisions of N.J.S. 40:47-20; and
(b)
Such goods, chattels and other property coming into the possession of the City Clerk from any institution, department or agency of the City; and
(c)
Abandoned automobiles:
(1)
The Purchasing Agent shall process the sale of abandoned automobiles,[1] through the State Motor Vehicle Commission by requesting a form for a motor vehicle junk title certificate. Such forms shall be furnished by the Division of Police.
[1]
Editor's Note: The sale of abandoned automobiles is governed by the provisions of N.J.S. 39:10A-1 et seq.
(2)
The sum of $1, which is the cost of the aforesaid certificate, shall be added to the auction price bid.
(3)
The purchaser at the sale shall remove all license plates from the automobile and deliver same to the Purchasing Agent who, in turn, shall forward the plates to the State Motor Vehicle Commission.
(4)
It is hereby made a condition of redemption by the owner that he/she obtain and deliver to the Purchasing Agent a certification by the Violations Clerk of the Municipal Court that there are no outstanding traffic violations involving the automobile.
(5)
The cost of $1 of the motor vehicle junk certificate shall be added to the charges to be paid by the owner upon redemption before sale.
(6)
All moneys shall be paid to and received by the Division of Central Purchasing and shall be deposited with the City Treasurer.
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
The purpose of this section is to establish the City of Newark's policies and procedures governing the use of procurement cards to purchase goods and services.
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
Unless otherwise indicated below, the words and terms used in this section have the same meaning as the identical words and terms set forth in N.J.A.C. 5:30-9A.2, as that provision may be amended and supplemented from time to time.
Includes all City employees and officials.
Includes all P-card users, the purchasing agent, and all employees engaged in P-Card related supervisory review, activity reconciliation or disbursement of funds.
Means "procurement card."
Means a specific individual issued a P-Card in accordance with this section.
Means "purchasing agent."
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
a.
The Business Administrator, in consultation with the Finance Director and the Program Manager, shall identify the employees within the City's organizational structure which could benefit from P-Card usage. The Business Administrator shall ensure that no P-Card issues unless its issuance is necessary for the conduct of ongoing City operations in the normal course of providing government services.
b.
The Program Manager, subject to the Finance Director's supervision, shall identify and manage all risks associated with P-Card issuance and usage.
c.
The Program Manager shall issue P-Cards only in the name of a specific employee and only after that employee has completed the requisite training pursuant to § 2:5-14.4 of this Chapter. A P-Card may not be issued to an employee who is not covered by a fidelity bond or a blanket honesty policy held by the City. If a P-Card user becomes ineligible for coverage under the fidelity bond or blanket honesty policy, that user's P-Card shall be cancelled. The Program Manager shall, under the Finance Director's supervision, cause to be published and distributed to all City employee engaged in the issuance and usage of P-Cards the City's policies and procedures governing P-Card usage.
d.
Before selecting an issuer, the Program Manager shall comply with the P-Card limits and controls set forth in N.J.A.C. 5:30-9A.5.
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
a.
The Business Administrator, the Finance Director and the Program Manager shall receive training in all aspects of the P-Card system. Thereafter, all P-Card users, shall receive complete training on the City's policies and procedures governing the use of P-Cards to acquire goods and services on behalf of the City.
b.
The Program Manager shall organize training for all City employees engaged in issuance or usage of P-Cards. The Program Manager shall notify in writing every employee identified as a prospective P-Card user in order to obtain each employee's consent for the required training. Should a prospective P-Card user decline training, he or she shall be ineligible to receive or use a P-Card. The Program Manager shall initiate training for employees who will receive P-Cards. The topics which the Program Manager shall cover in said P-Card training include the following:
1.
Explanation of the state regulations and benefits of P-Card usage.
2.
Explanation of City policies and procedures regarding P-Card usage.
3.
The P-Card user's obligation to submit expeditiously (i.e., within 48 hours) receipts to the Program Manager within 48 hours of use.
4.
The P-Card user's obligation to handle returns expeditiously (i.e., within 48 hours of determination that a return is necessary or appropriate) to ensure the City is not billed for the goods or services, or is receiving proper credit.
5.
The P-Card user's obligation to use P-Cards only at pre-approved vendors for pre-approved merchant codes, which vendors and codes are to be established by the Finance Director and Program Manager.
6.
Explanation that the use of P-Cards for travel for room and board, or for cash advances is expressly prohibited.
7.
The P-Card user's obligation to report lost or stolen P-Cards immediately to the Finance Director or Program Manager, who will in turn immediately cancel said P-Card.
8.
The P-Card user's obligation to relinquish P-Cards to the Finance Director or Program Manager upon the P-Card user's retirement, termination of employment with the City or other circumstances which may warrant termination of the employee's P-Card privileges.
9.
The P-Card user's obligation to prevent vendors from retaining a P-Card or from instituting a "running total" for the P-Card.
10.
The P-Card user's obligation to notify the Finance Director and Program Manager of any suspected fraudulent acts in connection with a P-Card.
11.
Explanation that the improper use of a P-Card shall result in the employee being personally responsible for any such payment, and that improper use of a P-Card may result in the termination of the employee's P-Card user privileges and may also result in disciplinary action, up to and including termination of the P-Card user's employment with the City in accordance with the City's Personnel Policies and Procedures Manual, as same may be amended and supplemented from time to time.
12.
A requirement that all employees trained in P-Card use, upon completion of the requisite training, complete and sign an agreement to abide by the City's P-Card policies and procedures and to assume financial responsibility for misuse of the P-Card. Such agreement shall be in the form substantially similar to Appendix B of Local Finance Notice 2018-13 and shall be retained by the City in the employee's personnel file.
13.
Prohibition on P-Card cash advances.
14.
The requirement that all purchases of goods and services using a P-Card must comply with the Local Public Contracts Law.
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
a.
All P-Card purchases of goods and services must comply with the Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.).
b.
The Business Administrator shall, in consultation with the Finance Director and Program Manager, establish limits on P-Card usage by amount, by category of spending, and by duration of time. Should the Program Manager not be a Qualified Purchasing Agent, the amount of any P-Card transaction may not exceed fifteen percent (15%) of the bid threshold set forth in N.J.S.A. 40A:11-3.
c.
P-Cards can be utilized to purchase tangible supplies or non-tangible items under the following conditions:
1.
When payment to vendors is required in advance of the delivery of certain materials or services that cannot be obtained from any other source at comparable prices. (N.J.S.A. 40A:5-16(c)(1)).
2.
When ordering, billing and payment transactions for goods and services are made through a computerized electronic transaction (N.J.S.A. 40A:5-16(c)(2)).
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
P-Card users may not use P-Cards for personal use or for travel and dining expenses for government employees, volunteers, or officials.
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
a.
The Program Manager is hereby authorized to execute documentation necessary to implement a P-Card program for the City.
b.
During every P-Card transaction, P-Card users shall obtain and retain the original receipts. When P-Cards are used to purchase goods over the internet, telephone or fax, such purchases must be evidenced by an order confirmation along with either the original packing slip that accompanied the purchased goods or an itemized receipt. A voucher must be prepared at least on a monthly basis detailing expenditures with all receipts noted above attached.
c.
P-Card users shall expeditiously provide all receipts to the Program Manager, who will compare receipts to the Bank Card Statement. Returned material must be reported to the Program Manager immediately to ensure that either the charge for the material is cancelled or the local unit receives proper credit.
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
a.
The Program Manager shall be responsible for day-to-day oversight and management of the P-Card system, supervisory review of P-Card usage.
b.
The Program Manager's role in overseeing the P-Card program does not exempt that individual from accountability to those above them in the organization.
c.
The Program Manager, subject to the Finance Director's supervision, shall assure that internal controls are maintained concerning the integrity of vendor payments, accumulated costs for goods and services as well as other Local Public Contract Law requirements.
d.
The Program Manager will develop and administer a supervisory review process, identify and manage all risks associated with P-Card use, and perform any other oversight or management duties required to ensure the proper utilization of P-Cards.
e.
The Program Manager shall also ensure that:
1.
All cards have imprinted on them both the P-Card users' names and the City's name.
2.
Sufficient funds are encumbered from the proper accounts to cover any charges the user is authorized to make.
3.
Employees associated with the issuance, usage and administration of the P-Card system are aware of the program and approved vendors with whom the cards maybe utilized.
f.
The Finance Director shall be responsible for supervising the Program Manager's oversight of the City's P-Card program. The Finance Director or a person under the Finance Director's supervision shall conduct all reconciliation activity.
g.
The Finance Director shall monitor and assess the quality of internal control performance on a continuing basis to assure that all controls are actively followed each cycle without exception. Pursuant to N.J.A.C. 5:30-9A.7(e), prior to disbursement of funds to the issuer, the Finance Director shall assure that the following information is gathered and reviewed:
1.
Evidence of each transaction certified by an authorized P-Card user as having been received.
2.
Evidence of supervisory review.
3.
A reconciliation of activity performed upon the transaction evidence.
4.
A distribution report indicating the complete allocation of funds to be paid against previously appropriated and encumbered items.
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
Use of P-Cards does not change or eliminate any bid thresholds or other limits set forth in the provisions of the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq.
[Added 1-8-2025 by Ord. No. 6PSF-A, 01-08-2025]
Violations of the City's policies and procedures governing the use of Procurement Cards shall result in appropriate disciplinary action as outlined in the Personnel Policies and Procedures Manual, without regard to the P-Card user's position.