PART I, ADMINISTRATIVE LEGISLATION

Chapter 42, PROCUREMENT POLICY

[HISTORY: Adopted by the Board of Trustees of the Village of Honeoye Falls 3-17-1997. This resolution superseded former Ch. 42, Procurement Policy, adopted 4-20-1992. Amendments noted where applicable.]

GENERAL REFERENCES
Investment Policy -- See Ch. 31.

§ 42-1. Definitions.

As used in this chapter, the following terms shall have the meanings indicated:

AUTHORIZED PURCHASING AGENT -- Includes the Mayor/General Manager of Operations, Village Clerk, Superintendent of Public Works, Chief Operator/Wastewater Treatment Plant, Village of Honeoye Falls Fire Department Chief and Honeoye Falls-Mendon Volunteer Ambulance Chief or their designee.

VOUCHER -- A vendor's request for payment for materials furnished or services rendered. A standard claim form shall be used by the Village of Honeoye Falls which shall be itemized in sufficient detail to permit proper audit by the Village Board.

INVOICE -- A formal statement or billing submitted by a vendor showing the amount due and terms of payment for supplies delivered or services rendered.

PUBLIC EMERGENCY -- A situation arising out of an accident or other unforeseen occurrence or condition whereby circumstances affecting public buildings, public property or the life, health, safety and/or property of the inhabitants of the Village of Honeoye Falls require immediate action which cannot await competitive bidding.

PURCHASE ORDER -- A formal notice to a vendor to furnish the supplies or services described in detail thereon.

PURCHASING -- The act of obtaining materials, supplies, equipment or services necessary to carry out a particular function.

QUOTATION -- An informal notice (usually written) by a vendor setting forth the terms under which goods or services will be furnished.

SPECIFICATIONS -- A written description of needed supplies, materials, equipment or services setting forth in a clear and concise manner the characteristics of the items and/or services to be purchased and the terms and conditions under which the purchase will be made.

VENDOR -- A supplier of goods or services.

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§ 42-2. General Procurement Process.

The Village of Honeoye Falls purchase procurement process begins with the departmental proposed budget submissions and ends with the actual receiving of supplies, materials, equipment or services ordered and final payment to the vendor or contractor. Included in this process is the Village of Honeoye Falls purchase order system. While the Village of Honeoye Falls does not have a centralized purchasing function, it shall be the responsibility of authorized purchasing agents to ensure availability of funds and follow standard operating procedure as outlined below. Additionally, it shall be the responsibility of the Village Treasurer to provide each department head and authorized purchasing agent a copy of the final budget, as so adopted by the Village Board, and at minimum, a quarterly financial statement showing year-to-date expenditures and available balances for each department and line item account.

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§ 42-3. Determination of Contract

Every purchase made will be initially reviewed to determine whether it is a purchase contract or a public works 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. The following items are not subject to competitive bidding pursuant to § 103 of the General Municipal Law:

  1. Purchase contracts under $20,000 and public works contracts under $35,000. [Amended 1-16-2012 by L.L. No. 7-2012]
  2. Emergency purchases.
  3. Goods purchased from agencies for the blind or severely handicapped.
  4. Goods purchased from correctional institutions.
  5. Purchases under state and county contracts.
  6. Surplus and secondhand purchases from another governmental entity.

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§ 42-4. Written documentation that contract not subject to bidding.

The request that a purchase not be subject to competitive bidding will be documented in writing by the individual requesting the purchase. This documentation may include written or verbal quotes from vendors, a memo from the individual requesting the purchase indicating why the purchase is not subject to competitive bidding, a copy of the contract indicating the source which makes the item or service exempt or a memo from the individual requesting the purchase detailing the circumstances which require an emergency purchase.

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§ 42-5. Emergency purchases.

An emergency purchase shall be made only upon the written authorization of the Mayor. The Mayor, Clerk or Board of Trustees will make the final decision that a purchase is not subject to competitive bidding. Verbal quotes shall be documented by the individual requesting the purchase, to include the name of the vendor, name of individual issuing the quote, the date quote was made, the amount and any other information the individual deems necessary.

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§ 42-6. Method of securing services.

  1. All goods and services will be secured by use of written requests for proposals, written quotations, verbal quotations or any other method that assures that goods will be purchased at the lowest price and that favoritism will be avoided, except those goods and services purchased:
    1. Through a county or state contract.
    2. From agencies for the blind or severely handicapped.
    3. From correctional institutions.
    4. Pursuant to § 42-7 of this policy.
  2. The following method of purchase will be used in order to achieve the highest savings, except purchase contracts over $20,000 and public works contracts over $35,000; goods purchased from agencies for the blind or severely handicapped; goods purchased from correctional institutions; purchases under state and county contracts; purchases pursuant to § 42-7 of this policy: [Amended 1-16-2012 by L.L. No. 7-2012]
  3. Estimated Amount of Purchase
    (For Public Works Contracts)

    $250 to $1,999

    $2,000 to $7,999

    $8,000 to $9,999

    $10,000 to $19,999

    Method
     

    2 verbal quotations

    3 written quotations

    Written requests for proposals

    Written requests for proposals

  4. A good faith effort shall be made to obtain the required number of alternate proposals. If the individual requesting the purchase is unable to obtain the required number of alternate proposals, the individual will document the attempt made at obtaining the proposals. But, in no event, shall the failure to obtain the proposals be a bar to the procurement.
  5. The time and documentation required to purchase through this policy for goods or services under $250 may be more costly than the item itself and would, therefore, not be in the best interests of the taxpayer.
  6. Documentation is required to each action taken in connection with each procurement and submitted when requesting a purchase order. A purchase order will not be issued without the required documentation for each procurement action.
  7. It shall be the responsibility of the Purchasing Agent to maintain the proper record-keeping to substantiate all purchases, and such documentation shall be made available at the request of the Village Board.
  8. If the procurement is not part of the department's adopted budget submission, the department can determine a reallocation of funds towards the procurement. If reallocation of funds is not possible, the procurement will need Board of Trustee's approval prior to purchase.
  9. Documentation and an explanation is required whenever a contract is awarded to other than the lowest responsible offer. This documentation will include an explanation of how the award will achieve savings. The individual requesting the purchase will be responsible for determining if the offer is responsible, reliable and dependable.
  10. Purchase orders will continue to be required for purchases of $30 or more.

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§ 42-7. Solicitations of proposals not in best interest.

  1. In the following circumstances it is not in the best interests of the Village of Honeoye Falls to solicit quotations or document the basis for not accepting the lowest bid. In these circumstances, the individual or company must be chosen based on accountability, reliability, responsibility, skill, education and training, judgment, integrity, moral worth and the ability to have a close relationship with the governing body. 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 proceedings. The citizens of the municipality deserve the benefit of expertise in these types of services as it may ultimately save the taxpayers money.
    1. Services of any attorney.
    2. Services of a physician.
    3. Technical services of an engineer engaged to prepare plans, maps and estimates.
    4. Securing insurance coverage and/or services of an insurance broker.
    5. Services of a certified public accountant.
    6. Investment management services.
    7. Printing services involving extensive writing, editing or art work.
    8. Management of municipally owned property.
    9. Computer software or programming services for customized programs or services involved in substantial modification and customizing of prepackaged software.
  2. In addition, in the following situations it is not in the best interest of the municipality to secure alternate proposals because of the time required and type of purchase:
    1. Emergency purchases pursuant to § 103, Subdivision 4, of the General Municipal Law.
    2. Purchases of surplus and secondhand goods pursuant to § 103, Subdivision 6, of the General Municipal Law.
    3. Purchases under $250.

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§ 42-8. Petty Cash.

Expenditures from the petty cash account may be made only for payment in advance of audit and upon receipt of properly itemized bills for materials, supplies or services furnished to the village for the conduct of its affairs and upon terms calling for the payment of cash to the vendor upon the delivery of any such materials or supplies or the rendering of any such services. A monthly voucher listing all expenditures from such account shall be presented to the Village Board for audit. Any purchase over $30 will need a purchase order.

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§ 42-9. Annual review.

The Village Clerk and Mayor shall be responsible for conducting an annual review of the procurement policy and for an evaluation of the internal control structure established to ensure compliance with the procurement policy. They shall make recommendations annually to the Board of Trustees who will be responsible for adopting any revisions to the policy.

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