[HISTORY: Adopted by the Common Council of
the City of Cohoes 2-1-1995. Amendments noted where applicable.]
[1]
Editor's Note: According to Ord. No. 2-2000,
adopted 2-22-2000, the Board of Managers shall adopt a Central Purchasing
Policy and Procedure by resolution. The Central Purchasing Policy
and Procedure shall be distributed to all department heads and reviewed
annually by the Board of Managers.
A.
This chapter defines the procedures and policies of
the City of Cohoes. It outlines the steps necessary for departments
to follow in order to purchase goods and services for city use.
B.
Questions regarding policies and/or procedures should
be directed to the Central Purchasing Department, which shall be administered
by the Purchasing Agent.
[Amended 2-22-2000 by Ord. No. 2-2000]
C.
Other pertinent sections have also been included in
an effort to clarify the system. This is done to encourage greater
knowledge and understanding among department managers and employees
of the City of Cohoes.
The office of the New York State Comptroller
Financial Management Guide has the following introduction concerning
purchasing practices:
A.
"Purchasing" is a term used to describe the activities
of obtaining materials, supplies, equipment and services that are
required in the operation of an enterprise.
B.
In general, the objectives of purchasing are to obtain
services or buy materials, supplies and equipment of the right quality
in the right quantity from the right source at the right price in
compliance with all applicable legal requirements.
C.
The governing body shall establish rules and regulations
to assure the fulfillment of duties it assigns.
D.
The keynote of any successful purchasing system is
cooperation: cooperation between department heads and the purchasing
agent; cooperation between purchasing agent and the fiscal officer;
and cooperation between the governing board and all officers and employees
of the local government.
A.
Definitions. As used in this chapter, the term "emergency
purchase," as defined in § 103 of the General Municipal
Law will serve as the general definition of emergency purchases, as
follows: "in the case of a public emergency arising out of an accident
or other unforeseen occurrence or condition whereby circumstances
affecting public buildings, public property or the life, health, safety
or property of the inhabitants of a political subdivision or district
therein, require immediate action...." In other words, unless the
situation threatens lives, health or public property safety, the purchase
of services or products must go through normal channels: the Central
Purchasing Department. In those cases of emergency, the department
head responsible for that operation will assume responsibility for
the operation.
B.
Procedures. The following are procedures for emergency
purchases:
(1)
Emergency during regular working hours.
(a)
Contact Central Purchasing, describe the nature of
the emergency and obtain a purchase order number.
(b)
Determine if budgeted funds are available. If funds
are not budgeted, contact Comptroller.
(c)
Order items or services from vendor, and give vendor
purchase order number.
(d)
On the next business day, the department head will
prepare a proper purchase requisition and label that requisition on
the top "emergency order."
[Amended 2-22-2000 by Ord. No. 2-2000]
A.
The new City of Cohoes purchase order is a multipart
form, and the procedure for its use shall be adopted by the Board
of Managers and disseminated by the Purchasing Agent to the department
heads.
B.
The various parts of the purchase order form shall
be disbursed according to the procedure adopted by the Board of Managers.
A.
In determining the need for competitive bidding, the
department must consider the aggregate cost of an item to be purchased
within a given fiscal year. If the total of the expected purchase
equals or exceeds $20,000, bid procedures must be followed; for contracts
for public work, the amount is $35,000. The term "purchase" applies
to materials, equipment and supplies. The term "public work" applies
to contracts involving labor and construction.
[Amended 2-22-2000 by Ord. No. 2-2000; 5-22-2012 by Ord. No.
3-2012]
B.
The requisitioning department must develop concise,
detailed specifications for requested items. All specifications should
be developed to allow for equal competitive bidding.
C.
The department shall work with Central Purchasing,
the Comptroller, Corporation Counsel and the Board of Managers, when
appropriate.
[Amended 2-22-2000 by Ord. No. 2-2000]
D.
Exceptions to the bidding process concerning state
contracts and other exceptions allowed under the Cohoes City Charter
and State General Municipal Law will be determined by the Central
Purchasing Department in conjunction with the Comptroller and Corporation
Counsel.
[1]
Editor's Note: Former § 67-5, Blanket
purchase orders, was repealed 2-22-2000 by Ord. No. 2-2000, which
local law also renumbered former § 67-6 as 67-5.
A.
Every purchase to be made must be initially reviewed
to determine whether it is a purchase contract or a public work contract.
Once that determination is made, a good-faith effort will be made
to determine whether it is known or can reasonably be expected that
the aggregate amount to be spent on the item of supply or service
is not subject to competitive bidding, taking into account past purchases
and the aggregate amount to be spent in a year.
[Amended 2-22-2000 by Ord. No. 2-2000]
B.
The following items, inter alia, are not subject to
competitive bidding pursuant to the General Municipal Law and other
state law: purchase contracts under $20,000 and public work contracts
under $35,000, emergency purchases, certain municipal hospital purchases,
goods purchased from correctional institutions, purchases under state
and county contracts, and surplus and secondhand purchases from another
governmental entity. Also exempt from competitive bidding are contracts
for services which require in their proper performance scientific
knowledge or professional skill. This list is not meant to be all
inclusive.
[Amended 2-22-2000 by Ord. No. 2-2000; 5-22-2012 by Ord. No.
3-2012]
C.
The decision that a purchase is not subject to competitive
bidding will be documented, in writing, by the individual making the
purchase. This documentation may include written or verbal quotes
from vendors, a memo from the purchaser indicating how the decision
was arrived at, a copy of the contract indicating the source which
makes the item or service exempt, a memo from the purchaser detailing
the circumstances which led to an emergency purchase or any written
documentation that is appropriate.
D.
All contracts for amounts over $50,000 must be approved
by the Common Council by resolution.
[Added 2-22-2000 by Ord. No. 2-2000]
[Amended 2-22-2000 by Ord. No. 2-2000; 1-5-2016 by Ord. No. 1-2016]
A.
The following method of purchase will be used when
required by this policy in order to achieve the highest savings: By
all department heads excluding the mayor.
|
Estimated Amount of Purchase Contract,
Public Work Contract
|
Method
| |
|---|---|---|
|
$0 to $1,499
|
Discretion of Department heads
| |
|
$1,500 to $19,000
|
3 written/fax quotations or written request
for proposals
|
B.
The Mayor can make a purchase of $0 to $9,999 without
quotes or other approval.
C.
A good-faith effort shall be made to obtain the required
number of proposals or quotations. If the purchaser is unable to obtain
the required number of proposals or quotations, the purchaser will
document the attempt made at obtaining the proposals. In no event
shall the failure to obtain the proposals be a bar to the procurement.
A.
Documentation is required of each action taken in
connection with each procurement.
B.
Documentation and an explanation are required whenever
a contract is awarded to other than the lowest responsible offeror.
This documentation will include an explanation of how the award will
achieve savings or how the offeror was not responsible. A determination
that the offeror is not responsible shall be made by the purchaser
and may not be challenged under any circumstances.
[Amended 2-22-2000 by Ord. No. 2-2000]
Pursuant to law, the procurement policy may
contain circumstances when or types of procurements for which in sole
discretion of the governing body the solicitation of alternative proposals
or quotations will not be in the best interest of the municipality.
In the following circumstances it may not be in the best interests
of the City of Cohoes to solicit quotations or document the basis
for not accepting the lowest bid:
A.
Professional services or services requiring special or technical skill, training or expertise. (See also § 67-6B.)
(1)
The individual or company must be chosen based on
accountability, reliability, skill, education and training, judgment,
integrity and moral worth. These qualifications are not necessarily
found in the individual or company that offers the lowest price, and
the nature of these services are such that they do not readily lend
themselves to competitive procurement procedures.
(2)
In determining whether a service fits into this category,
the Board of Managers 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.
(3)
Professional or technical services shall include but
not limited to the following:
(a)
Services of an attorney.
(b)
Services of a physician.
(c)
Technical services of an engineer engaged to prepare
plans, maps and estimates.
(d)
Securing insurance coverage and/or services of an
insurance broker.
(e)
Services of a certified public accountant.
(f)
Investment management services.
(g)
Printing services involving extensive writing, editing
or art work.
(h)
Management of municipally owned property.
(i)
Computer software or programming services for customized
programs or services involved in substantial modification and customizing
of prepackaged software.
B.
Emergency purchases pursuant to § 103, Subdivision 4, of the General Municipal Law. Due to the nature of this exception, these goods or services must be purchased immediately, and a delay in order to seek alternate proposals may threaten the life, health safety or welfare of the residents. This section does not preclude alternate proposals if time permits. (See also § 67-3.)
C.
Purchases of surplus and secondhand goods from any
source. If alternate proposals are required, the City of Cohoes is
precluded from purchasing surplus and secondhand goods at auctions
or through specific advertised sources where the best prices are usually
obtained. It is also difficult to try to compare prices of used goods,
and a lower price may indicate an older product.
D.
Goods or services under $1,499. The time and documentation
required to purchase through this policy may be more costly than the
item itself and would therefore not be in the best interests of the
taxpayer. In addition, it is not likely that such de minimis contracts
would be awarded based on favoritism.
[Amended 1-5-2016 by Ord.
No. 1-2016]
E.
Any contract can be awarded on the basis of best value instead of
lowest responsible bidder. The basis for determining best value shall
be thoroughly and accurately documented.
[Added 9-22-2015 by L.L.
No. 7-2015]
(1)
The basis for awarding contracts for services to a responsible bidder
who optimizes quality, cost and efficiency for the City is based upon
objective and quantifiable analysis. Goods procured and awarded on
the basis of best value are those that the Purchasing Agent determines
will be of the highest quality while being the most cost efficient.
(2)
Contracts shall include those for goods, commodities and equipment,
including technology.
(3)
The determination of quality and cost efficiency shall be based on
objectively quantified and clearly described and documented criteria,
which may include, but shall not be limited to, any or all of the
following:
(4)
General evaluation criteria shall be identified in the City's
Procurement Policy, a copy of which shall be maintained in the Department
of Public Works and made available to the public.
(5)
The Purchasing Agent shall establish specific evaluation criteria
that will be relied upon for procuring goods based upon best value,
which shall be maintained in the Department of Public Works and made
available to the public.
(6)
Solicitation documents shall state the minimum requirements and specifications
that must be met in order for the bidder to be deemed responsible
and shall identify the general procedure and manner in which the evaluation
and selection shall be conducted.
This policy shall go into effect immediately
and will be reviewed annually.
[Added 12-22-2009 by L.L. No. 13-2009]
A.
Except as otherwise provided by law, it shall be the duty of the
Board of Managers, where the total cost during the period of service
is $10,000 to $49,999, and for such other expenditures for services
exceeding this sum when established by ordinance of the Common Council,
after public notice and in accordance with regulations to be prescribed
by general ordinance of the Common Council, to direct the Purchasing
Agent to let the lowest responsible bidder, who will give adequate
security therefor, all contracts for public work involving an expenditure
of more than $35,000 and to direct the Purchasing Agent to let to
the lowest responsible bidder, who will give adequate security therefor,
all purchase contracts involving an expenditure of more than $20,000
or as may be set forth in §103 of the General Municipal Law,
and amendments thereto or successor, unless by ordinance of the Common
Council, unanimously adopted and unanimously approved by the Board
of Managers, it is determined to be impracticable to procure such
work or materials, or both, by contract, in which case said ordinance
shall direct the Purchasing Agent to procure such work or purchase
such materials. If, for reasons of efficiency or economy, there is
a need for standardization, purchase contracts for that particular
type of standard equipment, materials or supplies of more than $20,000
or as may be set forth in § 103 of the General Municipal
Law, and amendments thereto or successor, may be awarded by the Board
to the lowest responsible bidder furnishing the required security
after resolution or vote of a least 2/3 of the members of the Common
Council, which resolution shall contain a full explanation of the
reasons for its adoption and which shall further direct the Purchasing
Agent to make such purchase.
[Amended 5-22-2012 by Ord. No. 3-2012; 1-5-2016 by Ord. No. 1-2016]
B.
In the case of public emergency involving accident or other injury
by which the heating or plumbing of any of the public buildings or
any of the fire or water works apparatus shall become disabled, the
Commissioner having jurisdiction thereof shall cause repairs thereto
to be made without a letting by contract, upon filing with the Board
of Managers a certificate approved by the Mayor, showing such emergency
and the necessity for such repairs.
C.
The Board shall have power to reject all bids or proposals if, in its opinion, the lowest bid or proposal is excessive subject to the provisions of § 67-11.
D.
The notice shall describe the work and materials for which contracts
will be let and the day and hour and place of the meeting of the Board
at which proposals therefor will be opened. Specifications for the
performance of any work and for the supply of any materials shall
be prepared and set forth with sufficient detail to inform all persons
proposing to bid therefor of the nature of the work to be done and
of the materials to be supplied, and written or printed copies thereof
shall be delivered to all applicants therefor.
E.
Every contract for a public improvement shall be based upon an estimate
of the whole cost thereof, including all expenses incidental thereto
and connected therewith to be prepared by the Purchasing Agent in
consultation with the proper officer, board or department having charge
of such improvements. No bid or proposal shall be received or contract
awarded, other than for a local improvement or work to be performed
by the City, which involves the construction or maintenance of any
structure, erection, obstruction or excavation within, under, over,
along or upon any street or public place within the City, unless the
person to whom such contract shall be awarded shall have a franchise
permitting the same.
[Added 12-22-2009 by L.L. No. 13-2009]
No contract shall be let, except after the receipt of sealed
bids or proposals therefor, and no bids or proposals shall be received
at any time other than at a regular meeting of said Board and unless
they conform to the rules of the Board and the general ordinances
of the Common Council. All bids or proposals must be endorsed with
the title of the work or materials to which they relate, the name
of the bidder and his/her residence. It shall be the duty of each
member of the Board to be present at the time and place mentioned
in the public notice for the receipt and opening of bids or proposals,
and such meetings shall be open to the public. After all the bids
or proposals have been presented, but not until 1/2 hour after the
time stated in the public notice for holding the meeting, all bids
or proposals shall be opened by some member of the Board or by its
Secretary, publicly and in the presence of the bidders and other persons
there present, and an abstract of all of such bids or proposals with
the prices and security offered shall be transcribed in a book kept
for that purpose, without any change, correction or addition whatever.
A majority of the Board must be present when such bids or proposals
are opened. The Board may reject all bids or proposals containing
a total cost during the period of service of less than or equal to
$50,000 received at any meeting and advertise again for new bids or
proposals to be received at another meeting as above prescribed. For
all bids or proposals received at any meeting containing a total cost
during the period of service exceeding $50,000, the Board shall prepare
a written evaluation and recommendation to be forwarded to the Common
Council. The Common Council, at its next meeting, shall direct the
Board toward the final disposition of each proposal in excess of $50,000
in the aggregate, or instruct the Board to reject all such bids or
proposals received and to advertise again for new bids or proposals
to be received at another meeting as above prescribed. No person submitting
or on whose behalf a bid or proposal is submitted nor the principal
or sureties on any bond or security accompanying the same shall have
the right to withdraw or cancel any such bid, proposal or bond until
the Board shall have awarded the contract for which such bid or proposal
is made, and such contract shall have been duly executed.
[Added 12-22-2009 by L.L. No. 13-2009]
All municipal lighting shall be supplied pursuant to contract
therefor, awarded by the Board of Managers as herein provided. Such
contract shall cover and include the lighting and supplying of the
lamps or electric current and the cleaning, repair and renewal of
the lamps and all the materials required in the use and care thereof.
No bid or proposal for any such contract shall be received, nor contract
awarded therefor, unless the bidder shall, prior to the making of
such bid or proposal, have a franchise under the authority of which
the proposed contract can be performed. No contract shall be advertised
for or entered into for a period exceeding five years. Each bidder
shall be required to furnish with each bid or proposal a certified
check, payable to the order of the City Treasurer, in such sum as
the Board of Managers shall prescribe, but not less than $5,000. Such
sum shall be forfeited to and become the absolute property of the
City in case the bidder depositing the same shall be awarded the contract
and shall not execute the same and furnish a bond for the faithful
performance of such contract, in the penal sum of not less than $50,000,
within 30 days after the award of such contract. Such certified check
shall be returned to the bidder if the contract is not awarded to
him/her or, if awarded, he/she shall have executed and furnished the
contract and required bond.
[Added 12-22-2009 by L.L. No. 13-2009]
It shall be the duty of the Secretary to keep a full journal
of all the proceedings of the Board, to transmit a copy of the minutes
of all such proceedings to the Purchasing Agent and to perform such
additional duties as may be required by the Board or by law or ordinance
of the Common Council. Where any work repairs needed to be done or
materials or supplies to be furnished for any office, court, board
or department and which are not otherwise provided by this chapter,
such procurement will be performed by the Purchasing Agent and in
compliance with such rules and regulations as promulgated by the Common
Council. No materials or supplies shall be purchased for or delivered
by or to any officer, board, court, body or department of the City,
except upon the requisition, in writing, from the officer, body or
head of the department for which the same are required. The Purchasing
Agent shall require a receipt, in writing, from each officer, board,
body or head of the department for all supplies delivered to him/her
or it by the Purchasing Agent or on his/her order, and he/she shall
approve, in writing, all claims for any such materials or supplies
purchased by him/her, before the same shall be presented to the Comptroller
for audit.
[Added 12-22-2009 by L.L. No. 13-2009]
The Common Council shall, by general ordinance, prescribe, approve
and adopt the materials to be used in paying, repaying, repairing,
surfacing or resurfacing the streets and public places of the City
and fix the standard of excellence and test required for such material.
The City Engineer shall prepare standard specifications, in accordance
with such ordinance, for the performance of the work involved in such
improvements with each kind of material so prescribed, approved and
adopted therefor. Whenever the Common Council shall determine to make
any such improvement and the proceedings provided by law as preliminary
thereto shall have been taken, the Board of Managers shall advertise
for proposals for the furnishing of materials and the performance
of the work involved in such improvements, and specifications shall
be prepared and proposals shall be invited, pursuant to the provisions
of this Code, for the construction of such improvement with each kind
of paving material so prescribed, approved and adopted by the Common
Council. In case the expense of any such improvement is to be assessed
upon the property abutting upon the street or part thereof to be improved
and more than one kind of material is prescribed, approved or adopted
therefor, the Secretary of the Board shall, within one week after
proposals for such work have been received and opened, cause to be
published daily in the official paper for four successive days, exclusive
of Sundays, a notice containing a summary statement of all such proposals.
A majority of said property owners, owning not less than 1/3 of the
feet frontage of property abutting on such street, exclusive of City
property, may present to the Board of Managers a petition or other
writing designating the general kind of pavement or material to be
used in making said improvement. If no part of the expense of such
improvement is to be assessed upon the property abutting upon said
street, or if such expense is to be so assessed but the property owner
shall not have made a designation or shall have made more than one
designation, as herein provided, the Common council shall, not later
than at its next regular meeting after the expiration of 10 days from
the service of such notice, designate the kind of pavement or material
to be used in making such improvements, and the contract for such
improvement shall be awarded for the kind of pavement or material
so designated by the property owners or Common Council as aforesaid
to the lowest bidder for doing the work with the kind of pavement
or material so designated. In case, however, 2/3 of the owners of
property owning at least 3/5 of the linear feet fronting upon said
street or part thereof shall designate a particular make, style or
brand of the kind of pavement or material to be used in making such
improvement, the contract therefor shall be awarded to the lowest
bidder for such make, style or brand of such kind of pavement or material,
although the same is not the lowest bid for such kind of pavement
or material so designated.
[Added 12-22-2009 by L.L. No. 13-2009]
No person shall have power to make any purchase or contract
any debt containing a total cost during the period of service exceeding
$50,000 or assent to a memorandum of understanding or negotiated agreement
with any recognized City employee organization concerning wages, hours
and other terms and conditions of employment for which the City shall
be liable unless authorized by ordinance of the Common Council, the
Local Finance Law or otherwise specifically authorized in the provisions
of this Code.
