(A) The Clerk-Treasurer is authorized to make an advance payment for the purchase of goods and/or services either directly or part of a public works project consistent with and to the fullest extent permitted by law, and as further limited by the contracting entity for the city.
(B) The solicitation for a public works contract providing for advance payments for contractors to purchase materials for public works projects must include the following information:
(1) That the city will make advance payments to contractors to allow the contractors to purchase materials to be used in the construction of the public works project;
(2) No advance payment will be made in an amount that exceeds the amount specified in the contractor’s bid for the purchase of materials. If a change order requires the purchases of additional materials, no advance payment will be made for materials if the change order changes the scope of the public works project;
(3) An advance payment may be made only if the solicitation for the public works project includes all of the following information:
(a) The city will make advance payments to a contractor to enable the contractor to purchase materials to be used in the construction of the public works project.
(b) No advance payment will be made in an amount that exceeds the amount specified in the contractor’s bid for the purchase of materials. If a change order requires the purchase of additional materials, no advance payment will be made for materials if the change order changes the scope of the public works project.
(c) Each request for an advance payment must include:
1. Documentation containing the amount specified in the contractor’s bid or the purchase of materials;
2. Any purchase contract or purchase order executed by the contractor for the purchase of materials;
3. All invoices or receipts for material purchases for which the contractor seeks advance payment;
4. A certified statement that the request for advance payment is true and accurate, is not for materials not specified in the contractor’s bid and not for an amount exceeding the amount specified in the contractor’s bid for the purchase of materials;
5. The certified statement must be signed by:
A. The contractor for the public works project;
B. Any subcontractor for the project if the materials to be purchased are for work to be completed by the subcontractor; and
C. The architect or engineer that the city has retained with respect to the public works project, if any; and
D. An employee of the city, including any consultants responsible for the completion of the public works project.
(C) The Clerk/Treasurer or the Clerk/Treasurer’s designee must do all the following when advance payments are made for goods or services prior to delivery of goods or completion of services:
(1) Track pre-payments by defining the pre-payment on a purchase order;
(2) Create a pre-payment invoice that is associated with the purchase order; and
(3) Require insurance or a surety bond in the amount of the pre-payment if the amount of the pre-payment is more than $150,000.
(D) Advance payment made under the authority herein must be lessor of the following:
(1) Fifty percent of the entire cost of the contract; or
(2) Two million dollars.
(E) All other requirements for payment of public works projects, goods, and services by the City of Ligonier remain in effect and ordinances not directly contradicted by the provisions of this section remain in full force and effect.
(Ord. 999-2023, passed 11-13-2023)