Chapter 7.05 — CONTRACTS

• (1) Employee conflict of interest.

  • (a) It shall be unethical for any city employee or city official to participate directly or indirectly in a procurement when the city employee or official knows that:

    1. The city employee or official, or any member of the city employee's or official's immediate family has a financial interest pertaining to the procurement Contract; or

    2. Any other person, business, or organization with whom the city employee or official, or any member of the city employee's or official's immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement contract.

  • (b) A city employee or city official, or any member of the city employee's or official's immediate family who holds a financial interest in a disclosed blind trust shall not be deemed to have a conflict of interest with regard to matters pertaining to that financial interest.

  • (c) No city employee nor official shall purchase any goods, supplies, equipment, etc., from the city unless the goods, supplies, equipment and materials are offered to the general public on the same terms and conditions as those applicable to the employee or official, or as the result of a competitive bid process open to the public.

  • (d) City employees or city officials who approve the designation of city property as surplus or recommend an item be deemed surplus are ineligible to purchase said items under any process, including competitive bid.

• (2) Gratuities and kickbacks.

  • (a) Gratuities. It shall be unethical for any person to offer, give, or agree to give any city employee or former city employee, or any city employee or former city employee to solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, or preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to any program requirement or a contract or subcontract, or to any solicitation or proposal.

  • (b) Kickbacks. It shall be unethical for any payment, gratuity, or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor or any person associated therewith, as an inducement for the award of a subcontract or order.

  • (c) Contract clause. The prohibition against gratuities and kickbacks prescribed in this section shall be conspicuously set forth in every contract and solicitation.

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City of Palm Springs, CA

PALM SPRINGS CODE

§ 7.05.01

§ 7.05.02

• (3) Prohibition against contingent fees. It shall be unethical for a person to be retained, or to retain a person, to solicit or secure a City contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except for retention of bona fide employees or bona fide established commercial selling agencies for the purpose of securing business.

• (4) Contemporaneous employment prohibited. It shall be unethical for any city employee who is participating directly or indirectly in the procurement process to become or to be, while such a city employee, the employee of any person contracting with the city by whom the city employee is employed.

• (5) Waivers from contemporaneous employment prohibition and other conflicts of interest. The city council may grant waiver from the employee conflict of interest provision employee conflict of interest) or the contemporaneous employment provision contemporaneous employment prohibited) upon making a written determination that:

  • (a) The contemporaneous employment or financial interest of the city employee has been publicly disclosed;

  • (b) The city employee will be able to perform its procurement functions without actual or apparent bias or favoritism; and

  • (c) The award will be in the best interests of the city.

• (6) Use of confidential information. It shall be unethical for any City employee or former City employee knowingly to use confidential information for actual or anticipated personal gain, or for the actual or anticipated personal gain of any other person.

• (Ord. 2108, 1/23/2025)

• (1) Statement of policy.

  • (a) It is the policy of the city to promote the principles of equal opportunity in its contracting activities by assuring that those seeking to do business with the city will treat contractors, subcontractors, and employees equally and will not engage in discrimination against their contractors, subcontractors, or employees because of their actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation or as a member of any other protected class.

  • (b) It is also the policy of the city to ensure that work performed on behalf of the city is done in a cost effective and high-level manner. Employees who are treated fairly are more productive in their jobs and less likely to change jobs, thus helping to ensure that government contracts are both cost effective and completed in a professional manner.

• (2) Basic contract requirement prohibiting non-discrimination. All contracts shall include provisions prohibiting discrimination on the basis of actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation as these terms are defined by California law, or association with members of classes protected

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City of Palm Springs, CA

PROCUREMENT AND CONTRACTING

§ 7.05.02

§ 7.05.02

under this section or in retaliation for opposition to any practices forbidden under this section, against any person seeking accommodations, advantages, facilities, privileges, services, or membership in all business, social, or other establishments or organizations, operated by that contractor, and shall require such contractor to include a similar provision in all subcontracts.

• (3) Requirement prohibiting discrimination in the provision of benefits.

  • (a) No Contractor of the city with a contract in the amount of $10,000 or more shall discriminate in the provision of health benefits, bereavement leave, family medical leave, moving expenses, pensions or retirement benefits, travel benefits, or membership or membership discounts between:

    1. Employees on the basis of an employee's, employee's spouse's, employee's domestic partner's, or dependent's actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation as these terms are defined by California law;

    2. Employees on the basis of an employee's or dependent's actual or perceived gender identity, including, but not limited to, the employee's or dependent's identification as transgender; or

3. Employees with spouses and employees with domestic partners, or discrimination between employees with spouses or domestic partners of a different sex and employees with spouses or domestic partners of the same sex, or discrimination between same-sex and different-sex domestic partners of employees or between same-sex and different-sex spouses of employees.

   • (b) For purposes of this section, an employee health plan is discriminatory if the plan is not consistent with California law, including, but not limited to, Section 1365.5 of the Health and Safety Code and Section10140 of the Insurance Code.

• (4) Certification. Every contractor shall submit a nondiscrimination certificate in a form acceptable to the city manager. No contract shall be awarded until the contractor has submitted to the city such certificate. The certificate shall contain the following:

  • (a) Contractor certifies and represents that, during the performance of the contract, the contractor and any other parties with whom it may subcontract shall adhere to the city's non-discrimination and equal benefits as provided in this section to assure that applicants and employees are treated equally and are not discriminated against because of their actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, national origin, ancestry, or sexual orientation. Contractor further certifies that it will not maintain any segregated facilities.

  • (b) Contractor shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of the contract, state that it is an "equal opportunity employer" or that all qualified applicants will receive consideration for employment without regard to their actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation.

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City of Palm Springs, CA § 7.05.02

PALM SPRINGS CODE

§ 7.05.02

• (c) Contractor shall, if requested to so do by the contract administrator, certify that it has not, in the performance of this contract, discriminated against applicants or employees because of their actual or perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation.

• (d) If requested to do so by the contract administrator, contractor shall provide the city with access to copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law.

• (e) Contractor agrees to recruit Coachella Valley residents initially and to give them preference, if all other factors are equal, for any new positions which result from the performance of a contract and which are performed within the city. The contract administrator may agree to modify this requirement where it is in conflict with federal or state laws or regulations.

  • (f) Nothing contained in the contract shall be construed in any manner so as to require or permit any act which is prohibited by law.

  • (g) The Contractor shall include the provisions set forth in subsections (4)(a) through (f) of this section, inclusive, in each of its subcontracts.

• (5) Investigation and monitoring. All contracts shall include appropriate provisions that will allow the contract administrator to review, monitor, and investigate compliance with this section and to require each contractor to allow and provide full access to all applicable records, rules, regulations, documents, and other pertinent data necessary for the qualitative and quantitative evaluation of each contractor's compliance with the provisions of this section.

• (6) Enforcement and appeals.

  • (a) In the event the contract administrator determines the contractor is not in substantial compliance with the provisions of this section, the contract administrator may recommend to the city manager, the initiation of one or more of the following rights and remedies described in this subsection, in addition to any rights and remedies otherwise provided in the applicable contract or by law or equity:

    1. Termination of the contract and bar the contractor from bidding on future contracts with the city for two years from the effective date of the contract termination;

    2. Assess liquidated damages in the amounts specified in the contract where it is found the contractor willfully violated the requirements of this section; and

    3. Seek recovery of reasonable attorneys' fees and costs incurred for enforcement of this section.

  • (b) The contract administrator shall issue written findings and mail a copy of the findings to the contractor by first class mail and by any other means provided in the contract.

(7) Appeals.

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City of Palm Springs, CA

PROCUREMENT AND CONTRACTING

§ 7.05.02

§ 7.05.02

• (a) Within five business days of the notice of the contract administrator's findings, the contractor may file a written appeal of the contract administrator's determinations to the city manager.

• (b) The city manager shall set the matter for hearing and shall cause a Notice of Hearing to be given to the contractor and to such other persons as may have identified themselves as interested in the decision and as otherwise required by the California Ralph M. Brown Act.

• (c) The hearing shall be conducted as an independent reexamination of the matter. The contractor shall have the burden of proof in all cases, and if the contractor fails to appear either in person or by counsel, or fails to present or offer any evidence, the city manager may adopt the decision of the Contractor administrator or may decide the matter upon the record with or without taking any additional evidence. Any oral or documentary evidence may be received, but the city manager shall exclude irrelevant, immaterial or unduly repetitious evidence. The city manager's decision shall be made upon substantial evidence. In other words, if an essential finding is based upon hearsay or secondary evidence, such evidence must be of the type which would be admissible in a court of law as proof of such finding.

  • (d) Upon the hearing of the appeal the city manager may refer the matter back to the contract administrator with directions for further consideration, or the city manager may reverse, affirm, or modify the decision as may appear just and reasonable in light of the evidence presented. The decision of the city manager shall be supported by written findings and shall include the reasons for the ruling. Notice of the city manager's decision shall be served on the contractor, the contract administrator, and the city clerk. The decision shall be final unless city council agrees to review the matter pursuant this code.

• (8) Exceptions and waivers.

  • (a) The city manager, with the consent of the city council, may waive the requirements of this Subsection under the following circumstances:

    1. Whenever the city manager finds that there is only one prospective contractor willing to enter into a real property agreement with the city for use of city property on the terms and conditions established by the city, or that the needed goods, services, construction services for a public work or improvement, or interest in or right to use real property are available only from a sole source, and the prospective contractor is not currently disqualified from doing business with the city, or from doing business with any governmental agency based on any contract compliance requirements;

    2. Where the city manager certifies in writing to the city council that the contract or real property agreement is necessary to respond to an emergency which endangers the public health or safety and no entity which complies with the requirements of this section capable of responding to the emergency is immediately available; provided that such certification must be made prior to or within twenty-four hours of execution of the contract or real property agreement on behalf of the city;

    3. Where the city attorney certifies in writing to the city council that the contract

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City of Palm Springs, CA § 7.05.02

PALM SPRINGS CODE

§ 7.05.02

• involves specialized litigation requirements such that it would be in the best interests of the city to waive the requirements of this section; provided such certification is made prior to execution of the contract on behalf of the city.

• (b) This section shall not apply where the prospective contractor is a public entity and the city manager finds that supplies, services, construction for a public project or improvement or interest in or right to use real property of comparable quality or accessibility as are available under the proposed contract or property contract are not available from another source, or that the proposed contract or property contract is necessary to serve a substantial public interest.

• (c) This section shall not apply where the city manager finds that the requirements of this section will violate or are inconsistent with the terms or conditions of a grant, subvention or agreement with a public agency or the instructions of an authorized representative of any such agency with respect to any such grant, subvention or agreement, provided that the contracting officer has made a good faith attempt to change the terms or conditions of any such grant, subvention or agreement to authorize application of this section.

• (d) Upon the request of a potential contractor or upon the Contracting administrator's own initiative, after taking all reasonable measures to find an entity that complies with the law, the city manager may waive any or all of the requirements of this section for any contract, real property agreement, or bid package advertised and made available to the public, or any competitive or sealed bids received by the city under the following circumstances:

  1. Where the city manager determines that there are no qualified responsive bidders or prospective contractors who could be certified as being in compliance with the requirements of this section and that the contract or real property agreement is for supplies, a service, or a public project that is essential to the city or city residents; or

  2. Where the city manager determines that transactions entered into pursuant to bulk purchasing arrangements through federal, state, or regional entities which actually reduce the city's purchasing costs would be in the best interests of the city; or

  3. Where the city manager determines that the requirements of this section would result in the city's entering into a contract with an entity that was set up, or is being used, for the purpose of evading the intent of this section, which is to prohibit the city from entering into contracts with entities that discriminate based on the criteria set forth in this section.

• (e) The waiver authority granted to city manager in this subsection shall be subject to the requirements that:

  1. All proposed waivers must set forth the reasons the city manager is requesting the waiver, what steps were taken to find an entity that complies with this subsection and why the waiver does not defeat the intent of this section, which is to prohibit the city from entering into contracts with entities that discriminate based on the criteria set forth in this chapter. Such waivers shall be filed in the Office of the city clerk and a notice of such waiver shall be presented to the city

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City of Palm Springs, CA

PROCUREMENT AND CONTRACTING

§ 7.05.02

§ 7.05.04

council on the next available city council agenda; and

2. For any contract or real property agreement subject to approval by the city council, the city manager shall include a statement in the approving resolution and related staff report whether any waiver under this section is proposed for that contract.

• (f) Annual reports. The city manager shall conduct an annual comprehensive review of the administrative implementation of the provisions of this section, including, without limitation, the use of the waiver authority and the disposition of complaints of contractor non-compliance with any provision of this section, and shall submit a report to the city council.

• (Ord. 2108, 1/23/2025)

• (1) The director shall use contracts in standard form prepared by the city attorney that incorporate all required standard terms and conditions for use in city contracts. Purchase order forms shall include standard terms and conditions as may be required by the city attorney. Any variation of standard terms and conditions shall require review and approval by the city attorney prior to their use in any procurement. All contracts shall incorporate provisions ensuring the city's ability to audit and inspect a contractor's accounting system and records, including at a contractor's place of business, and extending to any subcontractor records. Contracts shall be included in all solicitations for review during the procurement process and any requested changes to the contract language shall be resolved during the procurement process and prior to selection of a Contractor for award to maintain a level playing field for all participants.

• (2) Contract templates are available for use in preparing contracts and are preferred over vendor contracts. Staff shall always attempt to use city standard contracts first before accepting to use the vendors form agreement. Once the contract has been completed including scope and pricing, a contract abstract form shall also be completed. Once the contract and abstract are complete, they should be transmitted along with the required insurance certificate, business license and applicable quotes or documentation of the procurement process used to satisfy the procurement requirements to the procurement and contracting department for review and assignment of the contract number. Once the number has been assigned and included on the contract, the contract can be routed for signature using the electronic signature process through DocuSign. DocuSign accounts and instructions are available through the procurement and contracting department.

• (3) All contracts should contain a term showing how long the contract will last and a dollar value. Even on call contracts should have an estimated not to exceed value for tracking and authorization purposes. Task Orders and Release POs can be issued by the department director for any value as long as the cumulative total of the Release POs or Task Orders are within the total value of the contract. On call contracts that do not have a value will require each Task Order or Release PO to be authorized by the appropriate staff member or council depending on the signature authority delegation that is issued by the city manager's office.

• (Ord. 2108, 1/23/2025)

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City of Palm Springs, CA § 7.05.04

PALM SPRINGS CODE

§ 7.05.07

Except on locally funded public projects of $25,000 or less when the public project is for construction work, or $15,000 or less when the public project is for alteration, demolition, repair or maintenance work, all contractors performing work on City public projects shall be subject to California Prevailing Wage Law, codified at California Labor Code Section 1720 et seq., as it may be amended from time to time, or otherwise required by law. The only limitation on the provisions of this section shall be in the event federal funding requirements supersede state prevailing wage laws, the higher wage rates shall apply. Any Invitation for Bids for maintenance and public projects subject to the California Prevailing Wage Law shall include notification of this section.

(Ord. 2108, 1/23/2025)

• (1) Specified Period. Unless otherwise provided by law and in accordance with this section, a contract for supplies or services may be entered into for any period of time deemed to be in the best interest of the city provided the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal year period at the time of award of contract. Payment and performance obligations for succeeding fiscal year periods shall be subject to the availability and appropriation of funds therefor. Any multi-year contract exceeding a potential term of five years, including any options to renew or extend, shall be approved by the city council.

• (2) Use. A multi-year contract is authorized where:

  • (a) Estimated requirements cover the period of the contract and are reasonably firm and continuing;

  • (b) The term of the contract and conditions of renewal or extension, if any, are included in the solicitation; and

• (c) Such a contract will serve the best interests of the city by encouraging effective competition or otherwise promoting economies in city procurement.

• (Ord. 2108, 1/23/2025)

All documents may be executed by the city manager whenever such authorization is granted in a resolution, motion, or minute order adopted by the city council. All Contracts shall be "approved as to form" by the city attorney and attested by the city clerk. Contracts which do not require city council approval shall only be executed by city manager, or designee pursuant to the signature authority.

(Ord. 2108, 1/23/2025)

Notwithstanding any other provision of law, the use of electronic media, including acceptance of electronic signatures and participation in the state of California "Cal-Card" procurement card program, is authorized consistent with federal and state of California applicable statutory, regulatory or other guidance for such media, so long as such guidance provides: (1) appropriate security to prevent unauthorized access to the bidding, approval, and award processes; (2)

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City of Palm Springs, CA

PROCUREMENT AND CONTRACTING

§ 7.05.07

§ 7.05.08

appropriate protection is provided to protect the city from unauthorized charges; and (3) accurate retrieval or conversion of electronic forms of such information into a medium which permits inspection and copying. Records may be kept in electronic form. (Ord. 2108, 1/23/2025)

• (1) The contracting authority applicable for the procurement of supplies and services shall be established as follows:

  • (a) Signature authority of the city manager.

    1. The city manager may approve purchase orders or enter into contracts for supplies and services in an amount not to exceed $150,000 for supplies and services and $220,000 for construction. The city manager may further delegate signature authority to other City employees as the city manager deems appropriate not to exceed the signature authority set forth by the city council herein.

    2. The city manager may approve purchase orders or enter into contracts for legal services required by the city attorney where legal services will be performed under separate contract directly with the city outside of and separate from the city's agreement for legal services with its city attorney, and where the cost for legal services is within the budget previously appropriated by the city council. The city attorney shall provide the city council with regular updates on all matters requiring legal services and the costs associated therewith.

  • (b) Authority of the city council. The city council shall approve purchase orders and contracts for supplies and services that exceed $150,000, or $220,000 for construction unless such approval is otherwise delegated to the city manager pursuant to separate action by the city council. The city council may also, from time to time, change the city manager's signature authority.

• (Ord. 2108, 1/23/2025)

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City of Palm Springs, CA

PROCUREMENT AND CONTRACTING

§ 7.06.01

§ 7.06.01