[HISTORY: Adopted by the Common Council of the City of Egg Harbor City 12-30-1981 by Ord. No. 16-1981. Amendments noted where applicable.]
The purpose of this chapter is to establish a procedure to be followed by all officials and authorized employees of the City of Egg Harbor for the purchasing of goods and services and for the approval and payment of claims in accordance with N.J.S.A. 40A:5-1 et seq.
To the extent practicable, this procedure intends that the Chief Financial Officer will originate purchase orders. Department heads will certify to the receipt of goods and services and the Chief Financial Officer will audit claims and render payment, thus providing a system of internal control through the separation of responsibilities.
[Added 4-11-1991 by Ord. No. 8-1991; amended 10-10-1991 by Ord. No. 19-1991]
This section shall be known and may be cited as the "Joint Purchasing Ordinance of the Participating Contractor."
Pursuant to the provisions of N.J.S.A. 40A:11-11(5), the Mayor of the City of Egg Harbor City is hereby authorized to enter into a cooperative purchasing agreement with the lead agency or any other contracting unit within the County of Atlantic or adjoining counties for the purchase of work, materials and supplies.
The lead agency entering into contracts on behalf of the contractor shall be responsible for complying with the provisions of the Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.) and all other provisions of the New Jersey Statutes.
As used in this chapter, the following terms shall have the meanings indicated:
- BLANKET PURCHASE ORDER
- A purchase order for goods or services to be delivered or provided at periodic intervals in cases where more favorable terms can be obtained by entering into such an arrangement with a given customer or vendor.
- CHIEF FINANCIAL OFFICER
- A person designated by the Common Council who is responsible for certain financial duties as directed by the Common Council; also, an employee designated by the Common Council to determine the most economical sources of supply, the most favorable prices and the most economical ordering quantities, to issue purchase orders and to discharge such duties as are normally assigned to a Chief Financial Officer.
- Invoices, bills or vouchers of other persons seeking payment for materials supplied or services rendered to the City of Egg Harbor.
- CONFIRMING PURCHASE ORDER
- A purchase order originated subsequent to the selection or delivery of goods and services in cases where a purchase order in advance could not be obtained due to emergent need.
- DEPARTMENT HEAD
- An employee of the City of Egg Harbor designated by the Common Council by resolution as being in charge of a department.
- PURCHASE ORDER
- A document authorizing a vendor or other person to furnish goods or services to the City of Egg Harbor and setting forth details as to quantity, type, condition, price and terms of sale, etc.
There is hereby established a system of purchase orders. Purchase orders shall be on forms determined and approved by the Chief Financial Officer and shall be in quintuplet. A purchase order must state the department and line item of the budget to be charged. Two copies shall be delivered to the vendor, one of which the vendor shall utilize as his/her voucher. The vendor must attach to the voucher his/her claim or invoice; one copy will serve as a receiving report. The final copies will be retained by the Chief Financial Officer and the originating department head for their records for the period required by statute.
Insofar as possible, it is intended that all orders for the purchase of material, equipment or supplies or for the furnishing of labor or services, other than professional, shall be placed only after a properly prepared written purchase order has been originated by the Purchasing Agent. In addition, where purchases of materials or services do not lend to the giving of specific orders prior to delivery or where, due to the need of obtaining the items or services quickly, it is not possible to issue the purchase order in the normal manner, such purchases will be exempt from the requirements for written purchase orders in advance. In such instances, confirming purchase orders will be prepared subsequent to delivery. Copies of confirming purchase orders are to be routed in the same manner as regular purchase orders. Within 24 hours a statement must be submitted, in writing, to the Chief Financial Officer specifying the reasons for the purchase.
No purchase order will or shall be issued unless the department head or his/her designee making the purchase shall verify that the purchase is proper, has been authorized and the funds are available, unencumbered, in the budget for such purpose and the amount to be paid is fair and reasonable.
It shall be the duty of the Chief Financial Officer to purchase or contract for the purchase of all supplies, materials, equipment, various types of work and contractual services needed by any municipal department, board or commission (using agency) in accordance with state law and such procedures, rules and regulations prescribed by the Chief Financial Officer for the internal management and operation of the purchasing system.
Except as herein provided, it shall be unlawful for any officer or employee to order or purchase any supplies or make any contract other than through the Chief Financial Officer's Department. Any contracts or purchases made contrary to the established procedures shall not be approved, and the municipality will not be bound thereby.
In addition to the authority and duties conferred above, the Chief Financial Officer shall:
Act to procure the highest quality in supplies and contractual services at least cost to the city.
Under the Council's direction, establish and enforce rules and regulations setting forth procedures and forms to be used in the purchase of all supplies and contractual services for any using agency.
Maintain a vendor's catalog file according to materials, containing descriptions of vendor's commodities.
Discourage collusive bidding and endeavor to obtain as full and open competition as possible in all purchases.
Procure all allowable exemptions, discounts and price reductions.
With the cooperation and assistance of the using agencies, supervise the preparation of standardized specifications for supplies, materials and services to be purchased or placed under contract agreement.
Sell or otherwise dispose of all obsolete or unusable personal property of the municipality in accordance with the laws of the State of New Jersey and municipal regulations.
Every department or using-agency head shall file detailed requisitions and estimates of their requirements for supplies and contractual services in the time and manner prescribed by the Chief Financial Officer.
The Chief Financial Officer shall examine such requisitions and have the authority to revise them as to quantity, quality or price after consultation with the head of the requesting using agency.
Any purchase order or contract in which any municipal officer or employee is financially interested, directly or indirectly, shall be void.
The Chief Financial Officer and every officer and employee of the municipality and its agencies are expressly prohibited from soliciting or accepting, directly or indirectly, from any person, company, firm or corporation to which any purchase order or contract is or might be awarded, any rebate, gift, money or anything of value whatsoever, except where given for the use and benefit of the municipality.
All purchases of and contracts for supplies, materials and contractual services and all sales of obsolete or unusable municipal personal property shall be made either through formal bids or quotations as required by law, except those purchases which may be specifically exempted by New Jersey statutes.
The Chief Financial Officer, assisted by the using agencies, shall supervise the preparation of written specifications for the purchase of all goods and services. All specifications shall be drafted in a manner to encourage free and open competitive bidding.
The Chief Financial Officer is authorized to approve the purchase of supplies and contractual services estimated to cost $500 or less, and he/she shall prescribe the procedures to be followed in making such purchases.
For supplies and services estimated to cost more than $500 but less than $12,300, three quotes shall be obtained, and the Chief Financial Officer shall prescribe the procedures to be followed in making such purchases.
Supplies and contractual services estimated to cost more than $12,300 shall be purchased by formal, written contract from the lowest bidder, in accordance with the New Jersey Statutes and the procedures established by the Chief Financial Officer.
No purchase may be authorized or obligation incurred unless it first bears the signature of the Chief Financial Officer certifying that sufficient appropriated funds are available and have been reserved to pay in full the value of the purchase. Such certification shall be in the form and manner prescribed by the Chief Financial Officer.
The Chief Financial Officer or, by his/her delegation, the head of the using agency shall inspect or supervise the inspection of all deliveries of supplies or contractual services to assure their conformance with the specifications set forth in the order or contract.
Emergency purchases are restricted to situations requiring the immediate purchase of materials or supplies to meet an actual or imminent threat or danger to the public health, safety or welfare. Such purchases must be in accordance with the procedures established by this chapter and state statute.
All using agencies shall submit to the Chief Financial Officer, in such form and manner as he/she may require, reports showing stocks of all supplies which are no longer needed or which have become obsolete, worn out or useless.
Sale of surplus materials.
The Chief Financial Officer shall submit to all agencies and departments, prior to the sale of surplus materials, a list of items no longer required, to determine if they can use any of the equipment, parts and supplies listed.
Sales under this section shall be made to the highest responsible bidder. A record of each sale shall be made and placed on file.
The Chief Financial Officer shall investigate participation in joint or cooperative purchasing plans with other units of government. Such plans shall be in accordance with agreements approved by the governing body and the Division of Local Government Services, New Jersey Department of Community Affairs.
The Common Council shall designate the municipal employee to act in the Chief Financial Officer's place on a temporary basis in the event of the Chief Financial Officer's illness, incapacity or prolonged absence from the municipality. Such temporary appointment shall not exceed 30 days without the written approval of the Mayor.
It shall be the responsibility of the department head to advise the Chief Financial Officer of any materials or services required in sufficient time for the Chief Financial Officer to be able to place orders in the most economical and reasonable manner. Repetitive purchases of the same item at frequent intervals should be covered by a blanket purchase order.
When materials or services have been received, the department head shall forward the receiving report to the Chief Financial Officer and shall indicate by signature and date that the materials or services have been received in a satisfactory condition or manner. If goods or services received are not satisfactory, the department head shall so advise the supplier or transportation company and attempt to obtain replacement or satisfaction. The department head shall also note the receiving report accordingly.
All vouchers to be paid in any given month must be in the office of the Chief Financial Officer by 12:00 noon of the first day of the month unless the same is a holiday or the office is closed, in which case by 12:00 noon of the following day that the office is open.
[Amended 4-25-1991 by Ord. No. 11-1991]
The Chief Financial Officer shall maintain a file of open purchase orders and, upon receipt of claims from vendors and associated receiving reports duly certified by an authorized employee of Egg Harbor City, shall determine whether the claims are correct by verifying totals, checking extensions, computing discounts allowed, deleting sales tax and verifying receipt of goods or services. Each correct claim, along with a properly certified voucher from the vendor, the receiving report and other supporting documents, should be signed by the Chief Financial Officer and included in the monthly list for payment. Any voucher not supported by all of the above shall not be entered on the list for payment.
After the receipt of a properly authorized voucher and associated supporting documents, the Chief Financial Officer, or his/her designee, shall list all vouchers to be approved at each regular meeting for payment by the Common Council. The Chief Financial Officer, or his/her designee, shall not list for payment any vouchers for which the funds have not been provided in the budget. The Chief Financial Officer, or his/her designee, shall list vouchers by budget category with totals for salaries and wages (S&W) and other expenses (O&E) and a total amount for all vouchers on the list.
The Chief Financial Officer, or his/her designee, shall provide the lists of vouchers to the Common Council at such time prior to a regular monthly meeting that the Common Council shall direct by resolution.
The Chief Financial Officer, or his/her designee, will be responsible for the preparation of the resolution, authorizing that the vouchers listed on the voucher list be paid, to be presented for adoption by the Common Council at the regular public meeting.
The itemized list of all vouchers shall be included in the minutes of the Common Council by resolution, and vouchers shall not be paid until after the Common Council approves the resolution.
[Amended 4-25-1991 by Ord. No. 11-1991]
The resolution approving payment of vouchers listed on the list submitted by the Chief Financial Officer shall be submitted to the Council for its consideration at a regularly scheduled meeting.
A copy of the approved resolution shall be forwarded to the Chief Financial Officer on the first working day after approval.
In the event that any voucher is disapproved by the Common Council, it shall be marked "disapproved," and the proper totals on the list of vouchers and the resolution shall be changed accordingly. The resolution must specify the reason for disapproval.
In the case of an emergency requiring payment other than at a regularly scheduled meeting, the Common Council shall have the right at any special or otherwise-called meeting to authorize payment of a voucher as requested by the Office of the Chief Financial Officer, or his/her designee.
All vendors should be notified, in writing, and an ad should be placed in the newspaper that the city will not honor any purchases without a purchase order. All city employees and officials should be put on notice that they will be personally liable for any orders placed without proper approvals.