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ORDINANCE TO AMEND TITLE 2(ADMINISTRATION) CHAPTER 5 (DEPARTMENT OF ADMINISTRATION) ARTICLE 4 (DIVISION OF CENTRAL PURCHASING) SECTION 2:5-13.2 (POWERS AND DUTIES OF CITY PURCHASING AGENT) OF THE REVISED ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY, AS AMENDED AND SUPPLEMENTED TO RAISE THE THRESHOLD FOR BIDDING REQUIREMENTS FOR PUBLIC CONTRACTS FROM $44,000.00 TO $53,000.00 AND TO RAISE THE INFORMAL QUOTATION THRESHOLD FROM $6,600.00 TO $7,950.00.
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WHEREAS, the City of Newark desires to increase the threshold for bidding requirements for public contracts and informal quotation threshold in order to establish and promote a more efficient and effective municipal government; and
WHEREAS, pursuant to Local Finance Notice 2025-08, municipalities were notified that pursuant to N.J.S.A. 40A:11-3(c), Governor Murphy exercised his authority to adjust bid thresholds for contracting units subject to Local Public Contracts Law, effective July 1, 2025; and
WHEREAS, the Municipal Council, by ordinance, has appointed a Qualified Purchasing Agent, pursuant to N.J.S.A. 40A:11-9 and can take advantage of a higher bid threshold pursuant to N.J.S.A. 40A:11-3(c), which was increased to Fifty-Three Thousand Dollars and Zero Cents ($53,000.00); and
WHEREAS, as a result of the change in the bid threshold, the 15% threshold for the solicitation of informal quotations set forth at N.J.S.A. 40A:11-6.1 is now Seven Thousand Nine Hundred Fifty Dollars and Zero Cents ($7,950.00); and
WHEREAS, the Mayor of the City of Newark and the Business Administrator believe it is in the best interest of the City of Newark to raise the threshold for bidding requirements for public contracts from Forty-Four Thousand Dollars and Zero Cents ($44,000.00) to Fifty-Three Thousand Dollars and Zero Cents ($53,000.00) and the informal quotation threshold from Six Thousand Six Hundred Dollars and Zero Cents ($6,600.00) to Seven Thousand Nine Hundred Fifty Dollars and Zero Cents ($7,950.00).
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
[Note: Underlined&Bold text represent additions and Strike-throughs represent deletions]
Section 1. Section 2:5-13.1b of the Revised General Ordinances of the City of Newark, New Jersey, as amended and supplemented, be amended as follows:
The City Purchasing Agent, under the direction and supervision of the Business Administrator, shall:
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 Forty-Four Thousand Dollars and Zero Cents ($44,000.00) Fifty-Three Thousand Dollars and Zero Cents ($53,000.00), 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 Forty-Four Thousand Dollars and Zero Cents ($44,000.00) Fifty-Three Thousand Dollars and Zero Cents ($53,000.00).
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.
Section 2. Section 2:5-13.1c. of the Revised General Ordinances of the City of Newark, New Jersey, as amended and supplemented, be amended as follows:
c. Notwithstanding the cost or contract price will exceed Forty-Four Thousand Dollars and Zero Cents ($44,000.00) Fifty-Three Thousand Dollars and Zero Cents ($53,000.00) 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 Six Thousand Six Hundred Dollars and Zero Cents ($6,600.00) Seven Thousand Nine Hundred Fifty Dollars and Zero Cents ($7,950.00) for any one (1) emergency without public advertising for bids and bidding therefore 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 Six Thousand Six Hundred Dollars and Zero Cents ($6,600.00) Seven Thousand Nine Hundred Fifty Dollars and Zero Cents ($7,950.00) in aggregate, without soliciting competitive quotations.
Section 3. Any prior ordinances or parts thereof inconsistent herewith are hereby repealed and superseded by this Ordinance.
Section 4. If any part of this Ordinance is declared unconstitutional or illegal, the remaining provisions shall continue in full force and effect.
Section 5. This Ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
This Ordinance amends and supplements Title 2, Chapter 5, Department of Administration, Article 4 Division of Central Purchasing, Subsection 2:5-13.2, Powers and Duties of City Purchasing Agent, of the Revised Ordinances of the City of Newark, New Jersey to raise the threshold for bidding requirements from $44,000.00 to $53,000.00 and to raise the informal quotation threshold from $6,600.00 to $7,950.00.