[Ord. 1294, 3-7-2001]
This subchapter defines the policies and procedures for the procurement of supplies, equipment, and services for the city, and is in conformance with the requirements of federal and state codes and regulations and city ordinance.
[Ord. 1294, 3-7-2001; Ord. 1421, 5-4-2005; Ord. 1600, 9-7-2011; Ord. 1619, 9-19-2012]
The basic purchasing policy of the city is to obtain quality supplies, services, vehicles and equipment needed for the proper operation of its various city departments and divisions at the lowest possible cost. This will be accomplished through the use of quotes and competitive bidding whenever possible. Purchasing functions are to be conducted by the Finance Department, except as provided for herein. The purchasing function shall be supervised by the Finance Director who shall be responsible for its operation and staffing. Whereas the city also administers the purchasing function for other entities: Municipal Water Department, Municipal Golf Course, the process may vary as provided within accounting procedures related to posting to Enterprise and Internal Service Funds.
(A) 
Ethics and standards of behavior. All purchasing functions will be conducted with absolute integrity. The very highest ethical standards will be maintained in all material activities and the city departments will remain constantly aware of its responsibilities in spending public funds. Guidelines for transacting city business are derived from the California State Government Code and the municipal code of the city. The Finance Department also subscribes to the principles and standards of purchasing practice advocated by the National Association of Purchasing Management and the California Association of Public Purchasing Officers.
(B) 
Local vendor purchasing preference. Local preference is the practice of procurement from certain suppliers/contractors because they are also local taxpayers. Local preference is desirable because it stimulates the local economy and encourages businesses to locate and operate locally. All orders/contracts are awarded on the basis of quality, previous performance, ability to meet the contract requirements, availability of service and parts, delivery schedule, and payment terms/discounts. When all these factors are equal except price, a preference will be given to local vendors equal to 10% of the quoted price. To be eligible for the 10% preference the vendor must certify under penalty of perjury that its primary place of business or its point of sale for more than 50% of its sales is located within the city limits. A further condition of eligibility for a preference is the local businesses having a current and active business license. Nothing in this local vendor purchasing preference shall in any way limit the application of the California Public Contract Code or California Labor Code to any city agreement.
(C) 
Purchasing authority. There are three levels of authority for normal purchases: Department award, City Manager award, and City Council award. Generally, authority is established by the dollar amount of the purchase. Except as permitted by below regarding "exceptions," a formal purchase order, approved by the requesting Department Director and the City Manager or designee is required for all purchases where any single item exceeds $5,000. The following procedures will apply to professional services or consultant contracts.
(1) 
Department award: Up to $5,000. The Department Director may authorize the purchase of supplies, equipment, or services as needed for his or her area of responsibility for purchases up to $1,000. No purchase requisition or purchase order is required. Note: Purchase orders may be issued regardless of amount when required by the vendor, or when the complexity of the contract demands a formal document for clarity.
(2) 
City Manager award: $5,000 to $75,000. When seeking goods or services exceeding $5,000 but not exceeding $75,000, and specific to the department's operation, the department completes a purchase requisition form and submits it, including specifications, quotes and other supporting data, to the City Manager or designee for review. After review of approved budget funds a purchase order may be issued.
(3) 
City Council award: over $75,000. The Council award procedures may be utilized for all purchases, contracts, or agreements of more than $75,000 as follows:
(a) 
Specifications and other relative data may be sent to the City Manager, or his or her authorized representative, for approval prior to the issuance of a notice inviting sealed proposals, if a bid process is required to be used.
(b) 
All formal bid opening dates will be at a time, date, and location specified. The City Clerk, or a designee, will publicly open and log the cost and content of bids received at the time and place specified in the notice. Bid results will be made available to all interested parties as soon as possible following the bid reading. The department responsible for the notice will prepare the agenda report for approval and submission with cost benefit justification and forward to the City Manager for review.
(c) 
After review by the City Manager the results of any bidding will be presented to the City Council along with recommendations regarding results and recommendation to award. The Council will declare the outcome of bids at a public session. The exemptions set out below are exemptions only as to the bid process, and do not excuse City Council approval when required.
(d) 
The City Manager or his designee will determine whether or not to utilize an RFQ or RFP process for professional services or consultant contracts, subject to any Council policy which may be adopted from time to time.
(4) 
Exceptions to standard purchasing procedures.
(a) 
Emergency conditions. An emergency is defined as a breakdown in machinery or equipment resulting in the interruption of an essential service, or a distinct threat to public health, safety, or welfare. In the case of an emergency requiring the immediate purchase of supplies, materials, equipment or contractual services, the City Manager may authorize the Finance Director or his or her designee to secure in the open market, at the lowest obtainable price, any supplies, materials, equipment, or contractual services required, regardless of the amount of the expenditure.
During an emergency condition, the using departments may purchase any supplies, materials, equipment, or contractual services. This may be done only after the department head has concluded that the purchase is essential to prevent delays, which may affect the life, health, or safety of citizens. The department head shall, as soon as possible, provide a completed purchase requisition to the Finance Director or his or her designee, as well as a full written explanation of the circumstances.
In the case of a disaster or for civil defense, nothing contained in this document shall limit the authority of the Director of Emergency Services (City Manager) or his or her designee to make purchases and take such other emergency steps as are, or may be, later ratified by the City Council.
(b) 
Limited availability/ sole source. Occasionally, required supplies, material, equipment, or services are of a proprietary nature, or are otherwise of such specific design or construction, or are specifically desired for purposes of maintaining cost effective system consistency, as to be available from only one source. After reasonable efforts to find alternative suppliers, a department head or his or her designee may dispense with the requirement of a minimum of two bids and recommend making the purchase from the sole source. All other standard approval procedures and documentation will be adhered to.
(c) 
Cooperative purchasing. The Finance Director or his or her designee shall have the authority to join with other public jurisdictions in cooperative purchasing agreements. The Finance Director or his or her designee may also buy directly from a vendor at a price established by competitive bidding by another public jurisdiction in substantial compliance with this policy, even if the city has not joined with that public agency in a formal agreement. The Finance Director or his or her designee may also purchase from the United States of America or any state, municipality or other public corporation or agency without following formal purchasing procedures as defined in this policy.
(d) 
Two-bid minimum. A two-bid minimum is established to guide purchases. If only one bid is obtained, the initiating city department shall consult with the City Manager and may exercise the option to extend the bid period up to 30 days, without opening the submitted bid, to allow for additional bids. If the determination is made to open the sole original bid, or if no additional bids are received during the bid extension, the department head may:
1. 
Re-advertise;
2. 
Order the work done by city employees;
3. 
Award the contract to the sole bidder based on a cost analysis evidencing the relationship of the one bid to expected market price; or
4. 
Negotiate a contract to the best advantage of the city.
(e) 
Record keeping. The Finance Department is responsible for maintenance of purchasing records. During the course of a contract the initialing department will maintain records. At the conclusion of the contract, the original bids, specifications, and other pertinent data will be forwarded, along with the request for final payment, to the Finance Department. These records will be maintained in the accounts payable (A/P) files indefinitely, or as prescribed by law.
(f) 
Purchases of artwork. A purchase of public art pursuant to the Art in Public Places Program is not subject to bidding and shall be made by the appropriate purchasing authority as set forth in § 33.116(C).
[Ord. 1294, 3-7-2001; Ord. 1569, 3-17-2010]
(A) 
Requisition. When a purchase order is required, the request shall be completed, budgeted funds checked and certified and forwarded to the Department Director for approval. The requisition must contain sufficient information to insure acquisition of the correct item(s). Requests that will put an account over-budget must be accompanied by a request for supplemental funds or transfer of funds so the proposed account will have sufficient funds for the purchase. The Finance Director may allow a budget over-ride as long as such action would not put the fund over-budget when reasonably projected to the end of the fiscal year. Requisitions will not be made utilizing accounts that are unrelated to the type of item or service being purchased. Original quotes or bids, specifications, and other documentation are to accompany the request.
(B) 
Request for proposal (RFP)/request for qualifications (RFQ). The RFP/RFQ defines, in detail, the terms, conditions, and specifications of goods or services required by the city. An RFQ is primarily intended for professional services. An RFP is primarily intended for large, complex, projects where cost and performance are equally important. The RFP/RFQ may be utilized for smaller projects as well. The RFP/RFQ will be used whenever the acquisition of goods or services is multi-faceted and carries a high possibility of liability for the city. Generally, the RFQ/RFP is not applicable to purchases below the City Manager award level of $1,000.
(C) 
Notice inviting sealed proposals. The notice inviting sealed proposals is prepared by the initiating department and is formal notification, through posting and advertisement by the City Clerk, that goods or services are being solicited by the city. This gives widespread exposure to the city's needs, expanding the vendor base, and fulfills the legal responsibility of giving fair access to supplying the city's needs. The notice must contain sufficient information to define the work and other details to the reader, and the date and time at which the bids will be publicly opened and read. If expanded documentation is available, the notice must indicate the cost, if any, plus the procedures for acquiring such documents.
(D) 
Contract-out vs in-house. The city may, at the direction of the City Manager and the City Council, elect to have certain public works projects performed by city employees. Generally, the decision to perform a public works project "in-house" is based on the following four factors:
(1) 
A lack of available outside sources for the type of work to be done;
(2) 
The assurance that the needs of the city will best be served both technically and financially;
(3) 
Work will be performed within the time-frame normally associated with outside contracting; and
(4) 
City staff needs to be trained and qualified to perform the work in the event an emergency response may be required.
(E) 
Purchase order. The purchase order number is generated by the Finance Department upon final approval and acceptance of the purchase requisition. Upon completion of the purchase order, the Finance Department will distribute copies to the ordering department, purchasing file, and the vendor/contractor. It is the responsibility of the initiating department to return to the Finance Department the tracking copy plus packing/delivery slips associated with receipt of the item purchased.
(F) 
Open purchase order. Open purchase orders are entered into with vendors that are expected to supply products or services to the city on an ongoing and/or regular basis throughout the year. Open purchase orders are closed at the conclusion of each fiscal year. The new year's open purchase order group is determined by the Finance Department, utilizing the previous year's open purchase orders, and adding or deleting vendors based on division input and current needs. A list of vendors having open purchase orders with the city shall be distributed to each department at the beginning of each fiscal year.
(G) 
Amendment to purchase order (change order). It is sometimes necessary to change a purchase order after it has been issued. The three most common changes are monetary, time extension, and scope of work. Only the City Manager may approve a formal change to an existing purchase order. The requesting department must complete an internal memorandum citing the nature of the change order and submit it, with appropriate documentation, to the City Manager or designee for approval. Upon approval, the requesting department and vendor will receive an amended purchase order reflecting the change(s).
(H) 
Credit card purchase. All purchases using a city-issued credit card shall take place in strict accord with the “City of Indio Procurement Card Guidelines” as adopted and amended from time to time by resolution of the City Council.
(I) 
Petty cash. The high cost of payment processing makes it imperative that small-dollar purchases be made by cash. The exception is when the vendor is heavily patronized by the city and the vendor is willing to establish a credit account with the city. Each department has access to a petty cash fund and should use it for minor purchases of up to $30 when buying from uncommon sources or vendors unwilling to establish a credit account with the city. Each department should submit their petty cash expenditures for reimbursement monthly. The Finance Department periodically audits the petty cash fund.
(J) 
Receiving of goods/equipment.
(1) 
Inspection and testing. All goods procured by the city shall be subject to inspection and/or testing upon receipt or completion by the department receiving the product to assure conformance with the specifications set forth in the order. If a product fails to meet specifications, it shall be identified as "on hold pending rejection," and a written report of the findings shall be forwarded to the Finance Department. If a product is determined to be unusable, it shall be rejected and returned to the vendor as the vendor directs, and at their expense, for credit or replacement. Items found not to specifications, but of limited usability, may be conditionally accepted but only after re-negotiation of the original contract. A department head or his or her designee shall have the authority to require chemical and physical tests or any other tests deemed necessary to assure full compliance with the specifications.
(2) 
Acceptance. When goods have been received or a project has been completed to the satisfaction of the ordering department and the specifications, the packing slip and/or other completion documentation shall be signed-off by the receiver/inspector. Information to be noted on the documents must include, as a minimum, the acceptor's signature and a legible rendering of their name and the date of receipt/completion. Any deviation from the exact ordering specifications must be noted on the receiving/acceptance documents.
[Ord. 1294, 3-7-2001; Ord. 1303, 11-7-2001]
(A) 
Each department head, as defined in this code, or management level designee, shall certify each check or warrant request prior to submission to the Finance Department. Such certification shall include the following language:
I hereby certify under penalty of perjury that to the best of my knowledge, the goods and services ordered or reflected herein have been duly received or rendered satisfactory; or that payment is authorized in advance of receipt of goods or services; accordingly I hereby certify that payment may be made to vendor names hereon and that the expenditure/disbursement hereby requested is authorized with appropriate and available budgetary authority. (To be placed onto city purchasing requisitions and/or purchase orders)
(B) 
The Finance Director shall establish a schedule for the issuance of checks/warrants. In general terms, checks shall be issued on a weekly basis, and reported to the City Council as an information item on at the next regular meeting.
(C) 
Recognizing the “pre-issue” checks/warrants represent a departure from the established internal control system, and that such requests are more costly to process than check/warrants on the normal demand warrant register, “pre-issued” checks/warrants shall be approved only on an urgency basis or as otherwise determined by the City Finance Director. Approval for “pre-issue” checks/warrants shall require the approval of the department head or designee, the Director of Finance and the City Manager.
(D) 
“Pre-issued” checks/warrants may be issued for the following purposes:
(1) 
Travel advances;
(2) 
Payroll related trust benefit premiums;
(3) 
Insurance payments;
(4) 
Purchases that otherwise adversely impact the health/safety of the community if otherwise not paid at the next scheduled weekly check run; and
(5) 
Purchases as determined on a case-by-case basis by the City Manager.
[Ord. 1294, 3-7-2001]
BID
Written offer, more formal than a quote, to furnish supplies, equipment, vehicles, services in conformity with the specifications, delivery terms, and conditions required at a guaranteed maximum cost.
BID SECURITY
On council award procedures, except materials and supplies contracts, each bidder shall be required to submit, with the bid, either by cash, cashier's check, certified check, or surety bond, an amount not to exceed 10% of the aggregate amount of the bid. This requirement may be waived by the City Manager, on a case-by-case basis, prior to initiation of the bid.
CONTINUING PERFORMANCE
A continuing activity or service, which extends over a period of time not involving solely the delivery of goods or materials.
LABOR AND MATERIALS GUARANTEE
All contractors in "continuing performance" service on contracts over $25,000, and all public works project contracts over $5,000, are required to submit a labor and materials bond, letter of credit, or cash deposit equivalent to 50% of the contract within 10 working days following award of the contract, unless specifically exempted or modified by the City Manager or City Attorney.
LANDSCAPE MAINTENANCE GUARANTEE
All landscape contractors in "continuing performance" service on contracts over $25,000 are required to submit a landscape maintenance bond, letter of credit, or cash deposit equivalent to 50% of the contract within 10 working days following award of the contract, guaranteeing landscape maintenance for a minimum of 30 days after installation, unless specifically exempted or modified by the City Manager or City Attorney.
LOWEST RESPONSIBLE BIDDER
A bidder who, in addition to lowest price, is financially responsible and possesses the resources, judgment, skills, ability, capacity, and integrity necessary to perform the contract according to its terms.
MATERIALS
Basic ingredients in a relatively raw, unrefined, or unmanufactured state, that may be worked into a more finished form (e.g., sand, wood, asphalt).
PERFORMANCE GUARANTEE
All contractors in "continuing performance" service on contracts over $25,000, and all public works project contracts over $5,000, are required to submit a performance bond, letter of credit, or cash deposit equivalent to 100% of the Contract within 10 working days following award of the Contract, unless specifically exempted or modified by the City Manager or City Attorney.
PREVAILING WAGE
Payment of prevailing wages established by City Council shall be required on all publicly funded public works contracts of $5,000 or more. When a contract requires this, notification will be included in the call to bid.
PROFESSIONAL SERVICES
Professional or specialized services such as, but not limited to, those rendered by architects, attorneys, engineers, technicians, etc.
PROPERTY DAMAGE INSURANCE
All contractors engaged in service on city property are required to maintain minimum property damage insurance of $1,000,000 for each occurrence naming the city as additional insured. Certain high-risk activities require higher limits.
PUBLIC LIABILITY INSURANCE
All contractors engaged in service on city property are required to maintain minimum public liability insurance of $1,000,000 for each occurrence naming the city as additional insured. Certain high-risk activities require higher limits.
PUBLIC WORKS PROJECT
Specific planned undertaking for the creation, improvement and/or repair of buildings and works, including parks; for the construction and installation of streets and sewers; for the general benefit of the citizenry (e.g., street lights, drains, etc.). Part of an approved Capital Improvement Project (CIP).
QUOTE
Verbal or written promise from the vendor/contractor guaranteeing the cost of specific goods, supplies, or services.
SUPPLIES
Goods in a manufactured state kept in the ordinary course of business for regular use or consumption (e.g., pencils, light bulbs, street signs).
WORKER’S COMPENSATION INSURANCE
All contractors engaged in service on behalf of the city are required to maintain "worker’s compensation insurance" in accordance with the provisions of the state contractor's licensing laws.
[Ord. 1294, 3-7-2001]
Except in case of emergency, the Finance Department shall not issue any order for delivery on a contract or open market purchase until the Department Director and Finance Director certify that there is, to the credit of the department, commissions, boards and employees of the city concerned, a sufficient unencumbered appropriation balance in excess of all unpaid obligations, to defray the cost of the order.
[1]
Editor's Note: Former § 3.123, Declaration and sale of surplus or obsolete equipment (Ord. 1294, 3-7-2001), was repealed by Ord. No. 1823, 10-1-2025. See now Ch. 33, Subchapter 11, Disposal of Surplus City Property, §§ 33.300 through 33.316.
[Ord. 1555, 4-1-2009]
(A) 
Informal bidding on public projects and maintenance. The city may let any "public project" or "maintenance work," as those terms are defined by the Uniform Public Construction Cost Accounting Act codified at Cal. Pub. Cont. Code §§ 22000 et seq., to contract in accord with informal bidding procedures provided that the project or work has an aggregate cost estimate of $125,000 or less. Further, upon a 4/5 vote of the City Council determining that a city cost estimate was reasonable, the city may award a contract in an instance when all informal bids gathered by the city exceed $125,000 but there exists a lowest responsible bidder with a bid of $137,500 or less. To the extent that the State Controller may modify the monetary limits prescribed by the Uniform Public Construction Cost Accounting Act for informal bidding, such modifications shall supersede the limits specified herein.
(B) 
Contractors list. Each City Department shall develop and maintain a list of qualified contractors, identified according to categories of work, who may informally bid public projects and maintenance work. Criteria for the city's development and maintenance of this list shall be in accord with all applicable determinations by the California Uniform Construction Cost Accounting Commission. The city may also include on its list any contractor who submitted a valid informal bid as to one or more public project or instance of maintenance work during the preceding year, per an exercise of discretion by the Public Works Director or his/her designee.
(C) 
Updating the contractors list. City Department shall mail written notice to construction journals inviting licensed contractors to submit qualifications that may support their inclusion by the city on the list of qualified contractors that will be authorized to informally bid public projects and maintenance work for the following year.
(D) 
Notices to contractors re individual public projects and maintenance work. Not less than ten calendar days before date when informal bids are due, the city shall mail all contractors on its list for the category of work being bid, together with all construction trade journals identified for receipt of notices by the California Uniform Construction Cost Accounting Commission, a written notice inviting informal bids. Beyond this standard notice to be issued, within the discretion of the City Department soliciting informal bids, additional contractors and/or construction trade journals may be issued notice. The notice requirement of this provision shall apply to each public project or instance of maintenance work let to informal bid unless a product or service is proprietary. If the product of service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. Finally, if within the reasonable discretion of the City Manager or his/her designee, no list of qualified contractors maintained by the city for the particular category of work to be performed exists, the notice inviting informal bids shall be sent only to construction trade journals identified for receipt of notices by the California Uniform Construction Cost Accounting Commission.
(E) 
Content of notices. The notice shall describe the public project or maintenance work in general terms, and state how an interested contractor may obtain more detailed information. The notice shall also state the time and place for the submission of bids, indicate the city's license requirements, and provide a city contact name and mailing address.
(F) 
Award of informal contracts. The City Council hereby delegates the authority to award informal contracts to the City Manager or his/her designee.