15 - DISCUSS AND ACT ON THE BIDDING POLICIES AND PROCEDURESItem No. 15
COUNCIL MEMBER AGENDA ITEM REQUEST
Please complete this form to have an item placed on the agenda for the Council's consideration.
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completed form to the City Manager's office or the City Clerk's office.
Council member making request:
❑ Aaron Jenkins
❑ Sue Lancaster
❑ Billy Trenado
® Steve Clifford
❑ Linda Knox
❑ Cleonne Drake
❑ Paula Portugal
Description of Item: Discuss and act on the City of Paris' bidding policies and procedures
Are additional sheets or supporting materials attached? ❑ Yes ® No
I request that this item be placed on the agenda for the:
® City Council meeting on this date: 06/12/2017
❑ Sometime in the next 2 meetings
Nos c' tc�time in mind — just keep it on a list of pending issues
Signature: Date: tP — S
City of Paris Revised 05/15/2017
RESOLUTION 99 -081
WHEREAS, the City Council of the City of Paris finds that the public interest and welfare
will be served by the adoption and establishment of a policy to guide the City regarding the matter
addressed in this resolution; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS that:
The policy of the City shall be to comply with Chapter 252 of the Local Government Code
of the State of Texas, together with any acts amendatory thereof and supplementary thereto,
regarding the Purchasing and Contracting Authority of Municipalities.
2. To the extent the above referenced statute conflicts with the City Charter, the above
referenced statute shall control.
PASSED AND ADOPTED this I st day of July, 1999.
Charles H. Neeley, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Ja s Corley Hender n,
Acting City Attorney
LOCAL GOVERNMENT CODE
CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
Sec. 252.001. DEFINITIONS. In this chapter:
(1) "Bond funds" includes money in the treasury received from the sale of bonds and
includes the proceeds of bonds that have been voted but have not been issued and delivered.
(2) "Component purchases" means purchases of the component parts of an item that
in normal purchasing practices would be purchased in one purchase.
(3) "Current funds" includes money in the treasury, taxes in the process of being
collected in the current tax year, and all other revenue that may be anticipated with reasonable
certainty in the current tax year.
(4) "High technology procurement" means the procurement of equipment, goods, or
services of a highly technical nature, including:
(A) data processing equipment and software and firmware used in conjunction
with data processing equipment;
(B) telecommunications equipment and radio and microwave systems;
(C) electronic distributed control systems, including building energy
management systems; and
(D) technical services related to those items.
(5) "Planning services" means services primarily intended to guide governmental
policy to ensure the orderly and coordinated development of the state or of municipal, county,
metropolitan, or regional land areas.
(6) "Separate purchases" means purchases, made separately, of items that in normal
purchasing practices would be purchased in one purchase.
(7) "Sequential purchases" means purchases, made over a period, of items that in
normal purchasing practices would be purchased in one purchase.
(8) "Time warrant" includes any warrant issued by a municipality that is not payable
from current funds.
Sec. 252.002. MUNICIPAL CHARTER CONTROLS IN CASE OF CONFLICT. Any provision in the
charter of a home -rule municipality that relates to the notice of contracts, advertisement of the notice,
requirements for the taking of sealed bids based on specifications for public improvements or
purchases, the manner of publicly opening bids or reading them aloud, or the manner of letting
contracts and that is in conflict with this chapter controls over this chapter unless the governing body of
the municipality elects to have this chapter supersede the charter.
Sec. 252.003. APPLICATION OF OTHER LAW. The purchasing requirements of Section 361.426,
Health and Safety Code, apply to municipal purchases made under this chapter.
Sec. 252.021. COMPETITIVE REQUIREMENTS FOR PURCHASES. (a) Before a municipality may
enter into a contract that requires an expenditure of more than $50,000 from one or more municipal
funds, the municipality must:
(1) comply with the procedure prescribed by this subchapter and Subchapter C for
competitive sealed bidding or competitive sealed proposals;
(2) use the reverse auction procedure, as defined by Section 2155.062(d), Government
Code, for purchasing; or
(3) comply with a method described by Chapter 2269, Government Code.
(b) A municipality may use the competitive sealed proposal procedure for the purchase of
goods or services, including high technology items and insurance.
(c) The governing body of a municipality that is considering using a method other than
competitive sealed bidding must determine before notice is given the method of purchase that provides
the best value for the municipality. The governing body may delegate, as appropriate, its authority
under this subsection to a designated representative. If the competitive sealed proposals requirement
applies to the contract, the municipality shall consider the criteria described by Section 252.043(b) and
the discussions conducted under Section 252.042 to determine the best value for the municipality.
(d) This chapter does not apply to the expenditure of municipal funds that are derived from an
appropriation, loan, or grant received by a municipality from the federal or state government for
conducting a community development program established under Chapter 373 if under the program
items are purchased under the request- for - proposal process described by Section 252.042. A
municipality using a request- for - proposal process under this subsection shall also comply with the
requirements of Section
Sec. 252.022. GENERAL EXEMPTIONS. (a) This chapter does not apply to an expenditure for:
(1) a procurement made because of a public calamity that requires the immediate
appropriation of money to relieve the necessity of the municipality's residents or to preserve the
property of the municipality;
(2) a procurement necessary to preserve or protect the public health or safety of the
municipality's residents;
(3) a procurement necessary because of unforeseen damage to public machinery,
equipment, or other property;
(4) a procurement for personal, professional, or planning services;
progresses;
(5) a procurement for work that is performed and paid for by the day as the work
(6) a purchase of land or a right -of -way;
(7) a procurement of items that are available from only one source, including:
(A) items that are available from only one source because of patents,
copyrights, secret processes, or natural monopolies;
(B) films, manuscripts, or books;
(C) gas, water, and other utility services;
(D) captive replacement parts or components for equipment;
(E) books, papers, and other library materials for a public library that are
available only from the persons holding exclusive distribution rights to the materials; and
(F) management services provided by a nonprofit organization to a municipal
museum, park, zoo, or other facility to which the organization has provided significant financial or other
benefits;
(8) a purchase of rare books, papers, and other library materials for a public library;
(9) paving drainage, street widening, and other public improvements, or related
matters, if at least one -third of the cost is to be paid by or through special assessments levied on
property that will benefit from the improvements;
(10) a public improvement project, already in progress, authorized by the voters of the
municipality, for which there is a deficiency of funds for completing the project in accordance with the
plans and purposes authorized by the voters;
(11) a payment under a contract by which a developer participates in the construction
of a public improvement as provided by Subchapter C, Chapter 212;
(12) personal property sold:
(A) at an auction by a state licensed auctioneer;
(B) at a going out of business sale held in compliance with Subchapter F,
Chapter 17, Business & Commerce Code;
(C) by a political subdivision of this state, a state agency of this state, or an
entity of the federal government; or
(D) under an interlocal contract for cooperative purchasing administered by a
regional planning commission established under Chapter 391;
(13) services performed by blind or severely disabled persons;
(14) goods purchased by a municipality for subsequent retail sale by the municipality;
(15) electricity; or
(16) advertising, other than legal notices.
(b) This chapter does not apply to bonds or warrants issued under Subchapter A, Chapter 571.
(c) This chapter does not apply to expenditures by a municipally owned electric or gas utility or
unbundled divisions of a municipally owned electric or gas utility in connection with any purchases by
the municipally owned utility or divisions of a municipally owned utility made in accordance with
procurement procedures adopted by a resolution of the body vested with authority for management
and operation of the municipally owned utility or its divisions that sets out the public purpose to be
achieved by those procedures. This subsection may not be deemed to exempt a municipally owned
utility from any other applicable statute, charter provision, or ordinance.
(d) This chapter does not apply to an expenditure described by Section 252.021(a) if the
governing body of a municipality determines that a method described by Chapter 2269, Government
Code, provides a better value for the municipality with respect to that expenditure than the procedures
described in this chapter and the municipality adopts and uses a method described in that chapter with
respect to that expenditure.
Sec. 252.024. SELECTION OF INSURANCE BROKER. This chapter does not prevent a
municipality from selecting a licensed insurance broker as the sole broker of record to obtain proposals
and coverages for excess or surplus insurance that provides necessary coverage and adequate limits of
coverage in structuring layered excess coverages in all areas of risk requiring special consideration,
including public official liability, police professional liability, and airport liability. The broker may be
retained only on a fee basis and may not receive any other remuneration from any other source.
Sec. 252.041. NOTICE REQUIREMENT. (a) If the competitive sealed bidding requirement
applies to the contract, notice of the time and place at which the bids will be publicly opened and read
aloud must be published at least once a week for two consecutive weeks in a newspaper published in
the municipality. The date of the first publication must be before the 14th day before the date set to
publicly open the bids and read them aloud. If no newspaper is published in the municipality, the notice
must be posted at the city hall for 14 days before the date set to publicly open the bids and read them
aloud.
(b) If the competitive sealed proposals requirement applies to the contract, notice of the
request for proposals must be given in the same manner as that prescribed by Subsection (a) for the
notice for competitive sealed bids.
(c) If the contract is for the purchase of machinery for the construction or maintenance of
roads or streets, the notice for bids and the order for purchase must include a general specification of
the machinery desired.
(d) If the governing body of the municipality intends to issue time warrants for the payment of
any part of the contract, the notice must include a statement of:
(1) the governing body's intention;
(2) the maximum amount of the proposed time warrant indebtedness;
(3) the rate of interest the time warrants will bear; and
(4) the maximum maturity date of the time warrants.
Sec. 252.043. AWARD OF CONTRACT. (a) If the competitive sealed bidding requirement
applies to the contract for goods or services, the contract must be awarded to the lowest responsible
bidder or to the bidder who provides goods or services at the best value for the municipality.
(b) In determining the best value for the municipality, the municipality may consider:
(1) the purchase price;
(2) the reputation of the bidder and of the bidder's goods or services;
(3) the quality of the bidder's goods or services;
(4) the extent to which the goods or services meet the municipality's needs;
(5) the bidder's past relationship with the municipality;
(6) the impact on the ability of the municipality to comply with laws and rules relating
to contracting with historically underutilized businesses and nonprofit organizations employing persons
with disabilities;
(7) the total long -term cost to the municipality to acquire the bidder's goods or
services; and
(8) any relevant criteria specifically listed in the request for bids or proposals.
(b -1) In addition to the considerations provided by Subsection (b), a joint board described by
Section 22.074(d), Transportation Code, that awards contracts in the manner provided by this chapter
may consider, in determining the best value for the board, the impact on the ability of the board to
comply with laws, rules, and programs relating to contracting with small businesses, as defined by 13
C.F.R. Section 121.201.
(c) Before awarding a contract under this section, a municipality must indicate in the bid
specifications and requirements that the contract may be awarded either to the lowest responsible
bidder or to the bidder who provides goods or services at the best value for the municipality.
(d) Except as provided by Subsection (d -1), the contract must be awarded to the lowest
responsible bidder if the competitive sealed bidding requirement applies to the contract for
construction of:
(1) highways, roads, streets, bridges, utilities, water supply projects, water plants,
wastewater plants, water and wastewater distribution or conveyance facilities, wharves, docks, airport
runways and taxiways, drainage projects, or related types of projects associated with civil engineering
construction; or
(2) buildings or structures that are incidental to projects that are primarily civil
engineering construction projects.
(d -1) A contract for construction of a project described by Subsection (d) that requires an
expenditure of $1.5 million or less may be awarded using the competitive sealed proposal procedure
prescribed by Subchapter D, Chapter 2269, Government Code.
(e) If the competitive sealed bidding requirement applies to the contract for construction of a
facility, as that term is defined by Section 2269.001, Government Code, the contract must be awarded
to the lowest responsible bidder or awarded under the method described by Chapter 2269, Government
Code.
(f) The governing body may reject any and all bids.
(g) A bid that has been opened may not be changed for the purpose of correcting an error in
the bid price. This chapter does not change the common law right of a bidder to withdraw a bid due to a
material mistake in the bid.
(h) If the competitive sealed proposals requirement applies to the contract, the contract must
be awarded to the responsible offeror whose proposal is determined to be the most advantageous to
the municipality considering the relative importance of price and the other evaluation factors included
in the request for proposals.
(i) This section does not apply to a contract for professional services, as that term is defined by
Section 2254.002, Government Code.
Sec. 252.0435. SAFETY RECORD OF BIDDER CONSIDERED. In determining who is a responsible
bidder, the governing body may take into account the safety record of the bidder, of the firm,
corporation, partnership, or institution represented by the bidder, or of anyone acting for such a firm,
corporation, partnership, or institution if:
(1) the governing body has adopted a written definition and criteria for accurately
determining the safety record of a bidder;
(2) the governing body has given notice to prospective bidders in the bid specifications
that the safety record of a bidder may be considered in determining the responsibility of the bidder; and
(3) the determinations are not arbitrary and capricious.