(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, passed 3-7-01; Am. Ord. 1569, passed 3-17-10)