HomeMy Public PortalAboutr 95:074No, 95-74 Date of Adoption F~/l~'llm~ 16, 1995
WHEREAS, it is necessary to establish and codify the purchasing procedures
for the Borough; and
the procedures set forth have been approved by the Department of
Coeanunity Affairs for the State of New Jersey;
NOW, THEll~lalg, BE 1TRESOLVI~ that the Borough Council hereby approves the
Purchasing Manual attached hereto.
Adopted this 16th day of February, 1995
and certified as a true copy of the original
on February 17, 1995.
KATHLEENM. BARNEY
Municipal Clerk
RECORD OF COUNCIL VOTE
COUNCILMAN YES NO NV A.B. COUNCILMAN YES NO NV A.B.
BIALOW~a~K'.,,vl 1K X .c;l~l,~rT.a X
_.lflilN(]O[~ X .q~l'Cl .TO. X
O' I~RTI~I X ZTFI~IP, A X
X - Indicate Vole AB -Abscnt NV - Noi Voting XOR - Indicates Vote to Overrule Veto
Adopled al a meeling oflhc Municipal Council
_ February_ 16:lqq5 _
/ / CLERK \~ __
MIDDLESEX COUNTY
OFFICE OF -~ ~
GLORIA C. GOODRICH _, 6~ COOKE AVENUE
Purchasing Agent ! CARTERET, NEW JERSEY 07008
' ' 908 541 3845
FAX 908-541-2884
February 9, 1995
To: Mayor and Council
From: Gloria Goodrich, Purchasing Agent
Re: Purchasing Manual
In accordance with State Guidelines, I have prepared the attached
Purchasing Manual in which I am requesting Council to approve by
Resolution as an official document for the Borough of Carteret.
Once adopted, this Manual will serve as an overall guide of our
Purchasing System. It will be distributed to all department
heads, vendors or anyone else who may request it. Ail the
information contained in this manual is in accordance with
existing Purchasing Resolutions and Ordinances.
If you have any questions or comments, please contact me.
I lq T ~ 0 D U C T I 0 N
Purchase of Goods or Services for the Borough of Carteret are
made using the following guidelines:
Since a Temporary Budget is in effect from January 1st
until the Permanent Budget is adopted, the Requisitioner
must limit his purchases to those items and funds in
the Temporary Budget. Department Heads should consult
with Chief Finance Officer before December 1st of
each year for items which will be needed in the first
three (3) or four (4) months of the next year, so that
the item may be included in the Temporary Budget.
1. Provisions for the purchase are included in the Current
Mun ic ipa 1 Budge t.
2. Funds are available to make the purchase. Expenditures are
controlled by use of the encumbrance system, i.e. no purchase
~ commitments are permitted unless funds are available, as
determined by the Chief Finance Officer.
3. Purchases are made at the lowest possible cost, but not at
the expense of quality or other important factors.
4. Purchases are made in accordance with the Laws of the State
of New Jersey and the Borough of Carteret.
5. Purchases can be made without bidding by the use of
applicable State Contracts, also by Cooperative Purchasing
with the County or other Municipalities, all as approved by
Mayor and Council.
6. Municipal purchases are exempt from State Sales Tax, but
Municipalities are not assigned an Exemption Identification
Number by the State. If a Vendor requests verification of
of State Tax Exemption, the Purchasing Agent will fill this
request.
· M~RG~NCY PURCHASES
Emergency purchases can only be authorized when a situation
requires the immediate purchase or delivery of goods or services
to meet an actual danger to the public health, safety or welfare.
The head of the department, agency, etc., requesting an
emergency purchase must contact the Mayor; in the absence of the
Mayor, the Council President; in the absence of the Mayor and
Council President the Chief Finance Officer to receive approval.
In the absence of the Mayor and Council President the Chief
Finance Officer shall act with authority. On the next working
day following the emergency, the Using Department Agency Head
will submit a written report describing the emergency and the
steps taken to resolve the matter. The Purchasing Agent will
execute a purchase order, and the receiving report will be
submitted routinely to the Purchasing Agent.
As a general rule, purchases are initiated by a Department
Head/Director for items included in the current Expenses Budget
or the Capital Budget. Questions as to whether a proposed
purchase is covered by the Budget to be referred to the Chief
Finance Officer. Items not covered by the current Budget
should be referred to the Chief Finance Officer who will advise
the Mayor and Council. Exceptions have to be approved by Mayor
and Council.
Purchases of equipment and supplies are initiated by the
preparation of a Requisition which is submitted to the Purchasing
Agent. The requisition is approved by the Mayor and Council and
then converted to a Purchase Order (copies of all forms are to be
found in the Appendix). The Purchase Order is placed with the
Vendor.
For the most part~ items costing Si1,100.00 or more are
subject to Public Bid. Competitive Bids for items under
$11,100.00 are obtained informally and usually in writing.
The State of New Jersey Local Public Contract Law does provide
procedures for awarding contracts over SI1,100.00 without
competitive bids~ but only with the prior approval of the Mayor
and Council.
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PURCHASING PROCEDURES
All purchases of, and contracts for work, supplies, services
or contractual service, and all sales of obsolete equipment,
shall, except as specifically provided herein or by State Statue
be based on competitive bids, pursuant to N.J.S.A. 40A: 11-3 and
40A: 11-36.
PURCHASES REQUIRING FORMAL BIDS
All purchases of supplies and services when the estimated
cost thereof shall exceed the amount set forth in N.J.S.A. 40A:
11-3, which establishes the formal bid threshold, shall be
purchased by formal, written contract from the lowest responsible
bidder after due notice, inviting bids as required by the revised
Statues of the State of New Jersey have been satisfied.
A. The Purchasing Agent, in accordance with State Statue
and Borough Ordinance, shall seek bids or requests for formal
bids, wherever indicated by State Statue or Borough Ordinance.
Bid deposits shall be prescribed in public notice inviting bids,
together with the specifications to which a bidder will be
required to bid upon. A successful bidder shall forfeit any
surety required by the Purchasing Agent in any such notice or
advertisement, upon failure on his part to enter into a contract
within twenty (20) days after the award.
B. Bid opening procedure - sealed bids shall be presented
to the office of the Borough Clerk, and shall be identified as
bids on the exterior of the orange envelope. Bids shall be
opened in public by the Mayor and Council, at time and place
stated in the public notice by the Mayor and Council.
C. The Mayor and Council shall have the authority to reject
all bids for services, when not in compliance with the bidding
specifications, upon the recommendations of the Purchasing Agent.
D. Award of Contract - the Council shall not award the bid
to a contractor or supplier who is in default on the payment of
taxes, licenses or any other monies due the Borough. Bids shall
be awarded to the lowest responsible bidder by the Council, after
the council has received input from its professional staff as to
format, content and compliance with specifications and applicable
State Statues.
4
~URCRAS}ES NOT REQUIRING FORMAL BII)H
Ail purchases of supplies, materials or services for less
than the threshold amount as set forth in N.J.S.A. 40A: 11-3
shall be obtained through the solicitation of quotations as
required by Statue and Resolution 89-319 adopted November 1989,
and awarded on the basis of the lowest, responsible quotation
received which quotation is most advantageous to the Borough,
price and other factors considered. Quotations shall be obtained
from the open market subject to Resolution 8~-31~. The award of
such contracts under A and B shall be made by the Purchasing
Agent. The award of contracts under C shall be made by the
Governing Body.
A. Ail reguisitlons having an estimated dollar value up to
SR§0.00 shall be approved by using agency head and one
Counc i lperson.
B. Requisitions having estimated value in exoess of $2§0.00
up to $2,500.00 shall be approved by using agency head and two
Councilpersons of the Standing Committee or one Counoilperson and
the Mayor.
C. Requisitions having an estimated value of $2,500.00 up
to the statutory bid threshold, require the approval by using
agency head, and verifiable quotations from the Purchasing Agent
and submitted to the Mayor and Council for their approval and
award.
REQUISITIONS OR ESTIMATES OF REQUIREMENTS BY USING AGENCIES
All using agencies, with the authorization of the head of
the Agency under which the using agency operates, shall file with
Purchasing Agent detailed requisitions or estimates of their
requirements in supplies and contractual service, in such manner,..
at such time and for such future periods as the Agent shall
prescribe.
The Purchasing Agent shall examine each requisition or
estimate, and where necessary, shall confer with the Agency or
User Department Head regarding possible revisions or
modifications of the requisition as to quality, quality and cost.
Revisions as to quality, quantity and cost shall be in accordance
with the specifications and the requirements of Ordinance 45 and
other State Statute.
VOIDABLE CONTRACTS/ETHICS ORDIN~NCE
Ail Borough employees, Borough Officials, Councilpersons and
contracts entered into on behalf of the Borough, as well as the
Purchasing Agent, shall be subject to the provisions of Ordinance
45, and the Ethics Ordinance adopted by the Borough of Carteret,
together with State Statute and any regulations promulgated by
the Division of Local Government Services of the State of New
Jersey.
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CERTIFICATION OF ~UlqDS
The Chief Finance Officer shall determine that legally
appropriated and sufficient funds are available~ and shall
encumber same prior to any contractual commitment or obligation
is made or incurred.
~TANDARD PURCHASING PROCEDURES
Subject to other provisions of Ordinance 45, other Ordinance
of the Borough of Carteret, the revised Statues of the State of
New Jersey, and regulations of the Division of Local Government
Services of the State of New Jersey, standard purchasing
procedures of the Borough of Carteret shall be in accordance with
the following:
The preparation of three part "purchase requisition" is the
initial step in the purchasing cycle. The following information
is required for all requisitions..
A. Using Agency name
B. Da te
C. Account Number .
D. Quantity and Unit
E. Full description of requested purchase
F. Estimated unit price
G. Total
H. Suggested vendor(s) .,
I. Signature of Using Agency Head and those officials as
required.
J. Date of Signature
K. Requisition number assigned by Purchasing Agent
L. Deliver to
M. Desired delivery date
The white and yellow copy of the purchase requisition are
submitted to the Purchasing Agent. The pink copy is retained by
the Using Agency in an open file.
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The Purchasing Agent reviews the requisition to determine
if complete. If it isn't complete, it is returned to the
originating Using Agency Head for correction, additional
information or clarification.
Both copies of completed requisitions are then submitted
to appropriate Borough Officials for approval in accordance with
signatures stipulated.
Approved requisitions are returned to the Purchasing Agent~
who prepares a Purchase Order, and then submits one copy of the
requisition to the Finance Department, together with a copy of
the Purchase Order.
C~IEF FINANCE OFFICER
The Chief Finance Officer determines that legally
appropriated and sufficient funds are available before contract
obligations are entered into.
If funds are determined not to be available, a written
notation is made oR the Purchase Order "Funds Not Available".
The Finance Department returns the Purchase Order to the
Purchasing Agent, who accordingly notified the Using Agency.
If available, the funds are certified by the Chief Finance
Officer by signing the Purchase Order, and encumbered on the
computer system.
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The Purchasing Agent determines, based on the total and
aggregate dollar amount of the purchase request, whether written
specifications and sealed bids, or informal solicited quotations,
may be required. State approved contract vendors are also
considered at this time.
The Purchasing Agent prepares a six-part, pre-numbered
purchase order, including the followin~ information:
A. Vendor Name and address
B. Deliver to
C. Attention to
D. Date
E. Budget Code
F. Requisition number
G. Vendor number
H. Using Agency name
I. Quantity
J. Material or services
K. Unit price
L. Amount
M. Total
N. Signature of Purchasing Agent
O. Signature of Chief Finance Officer
The completed Purchase Order is distributed as follows:
A. Copy 1 and Copy 2: Forwarded to the vendor to place the
order. Copy 1 to remain with the vendor.
Copy 2 (Voucher) to be returned by the
vendor with his invoice(s) to the Finance
Department when requesting or claiming
payment.
B. Copy 3: Forwarded to the Finance Department and
retained in an "Open Order" file with
requisition.
C. Copy 4: Retained by the Purchasing Agent for filing.
D. Copy 5: Forwarded to the Using Agency serving
notice that the order has been placed.
Filed in an "Open" requisition file with
stapled requisition.
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E. Copy 6: Forwarded to the Using Agency, receiving
report, which shall be completed upon
receipt of services of goods.
On receipt of the Purchase Order, the vendor performs
accordingly in providing the goods or service directly to the
Using Agency. The vendor returns the signed voucher (copy 2)
with invoice to the Finance Department. The bill of lading,
along with other shipping information, shall be furnished to the
Using Agency.
Using Agency head shall certify receipt of services or goods
obtained by signing a receiving report (Copy 6) and attaching
bill of lading and forwarding same to the Purchasing Agent.
The Purchasing Agent reviews bill or lading and receiving
report as to the quantity, quality, and price. If correct, the
lading and receiving
report as to the quantity, quality, and price. If correct, the
receiving report is initialed as to being received and corrected,
and forwarded.~o the Finance Department.
FINANC~ D~PARTM~NT
The Finance Department shall verify voucher and invoice,
together with receiving report for correctness. If correct,
the Chief Finance Officer signs and dates the voucher.
10
The complete package is submitted to the Mayor and Council
at a agenda meeting for review and approval. Approved bills will
be paid,
The Finance Department assembles, for the review and
approval of the Chief Finance Officer, all vouchers and prepares
a bill list. The bill list is submitted to the Council for
approval at a public meeting. The approved bill list is signed
by the Mayor and forwarded to the Finance Department. The
Finance Department issues checks which are submitted to the Mayor
for manual or mechanical signature.
Checks approved by the Mayor are forwarded to the Clerks
Office and Chief Finance Officer for their manual or mechanical
signature.
Checks are then mailed by the Finance Department and the
completed voucher package is filed by check number in the
Finance Department.
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RequiSition
2
Purchase Order
3
Request for Quotations
4
Sta~e Tax Exemption Form
Req. No
PURCHASE REQUISITION
BOROUGH OF CARTERET
(Not a Purchase Order)
Date
Agency (or Department)
Purchase Order # _
~ccount or Appropriation # -- ~
Total
Quantity Full Description of Required Purchase Unit Price
and Unit ~ ~ ~
PurpOse For __ ~ ~
This Orde~
Suggested Vendor(s): 1.
Address:
Vendor: 2
~ AddreSS:
I hereby certify that the articles/services requested are necessary to properly conduct the activities of this agency.
BUDGET CONTROl- -- Date
Using Agency (or Department) Authorized Signature
lalance Avaitable $
Amt. This Purchase $ Date
~ Chairperson of Council Committee
..~.. PURCHASE ORDER
BOROUGH OF CARTERET
61 COOKE AVE., CARTERET, NJ 07008
PURCHASING DEPARTMENT · (908) 541-3845
CHECK NO.
F(~ERAL TAX EXEMPT NO. 22-6001707 CHECK DATE
VEI~DOR SHIP TO
COMMENT TOTAL AMOUNT
D"'~ NOT ACCEPT THIS ORDER UNLESS IT IS SIGNED IN BOTH SPACES BELOW. THE CONDITIONS OF THI,~
ORDER ARE NOT TO BE MODIFIED BY ANY VERBAL UNDERSTANDING.
Approved: Budget Appropriation Balance Sufficient and Encumbered.
Signed: Countersigned:
Chief Financial Officer Date Purchasing Authority Date
~ This must acoa,~any purchase
.. i requisition for goods over 1000.00.
BOROUGII OF CAKTER~T, N.J. ~IIIS IS
~liver to:
~ge to:
~onfim yes -- no ch~k one ~te:
Solicit~ by phone letter~ in-~rson n~s~ or ca~l~ __ ch~k one
It~ or Project:
S~LE - 3
~ ~ VENDOR ~ 2 VENDOR ~ 3'
~DOR ~ 1
name
address
phone · · -
PRICE : -' PlaICE: .' :
iten ~ '' i it~m~# item~
#1
#3 ~ "
~6 I, .... '
,7 ...............................
MAY BE REPRODUCED
sT-~ ;g.sT...4) STA'[']~ OY NEW JI~RSE¥ [ PURCHASER'S
DIVISION OF TA~TION ~E~FI~ OF AUTHORtW NUMB~
[To~~~ '
~ ~ ~ ~ ~. e~ ~' SALES T~
~ ~ ~ ~ a ~ c~r~ EXEMPT USE CERTIFICATE
~THIS CERTIF~ATE MAY ~T BE U~O ~puR~ASE~ ~EE INSTRU~ION~
FORM ST-4
~ PURC~SE ~ ~S
Date
TO
~e undersigned purchasers ce~ifies that It is not tequked to pay the New ~ersey Sales ': .
and/or Use Tax on the purchase or purchases cover~ by this Ce~ificate because the tangible
personal prope~y Purchased will be used for an exempt purpose,
The tangible pe~onal pro.ny will be used for ~e following exempt purpose:
The exemption on the sale ~f the tangible personal propL~rty to be~fo.r the abo ·
described exempt purpose ls provided in subsection N.;.S.A. 54:32B- J I [See reverse
side for listing for principal exempt uses of tangible personal property and fill in the block
with proper subsection citation). ~
I, the undersigned purchaser, have read and complied with th.e instructions and rules promulgated pursuant
to the New Jersey Sales and Use Tax Act with respect to the use of the Exempt Use Certificate, and it is my
belief that the vendor named herein is not required to collect the sales or use tax on the transaction or ·
transactions covered by th, is Certificate. The undersigned purchaser hereby swears (under the penalties for.
perjury and false swearing) that all or'he inform~tion shown in this Certificate is true.
NAM'E OF PURCHASER (as registered with the Division of 1axe!ion)
I A VENDOR SHOULD "EAO AND I BY
COMPLY WITH THE INSTRUCT~ (Stgnature of ~ner, pa~ner, officer of cor~ration, etc.) of qualified officer of Agff~1
135