HomeMy WebLinkAboutAPRIL 6, 2010 SPECIAL MEETINGSPECIAL MEETING -April 6, 2010
I. INVOCATION, PLEDGE & ROLL CALL
Councilmember Henderson gave the invocation followed with the pledge to the flag.
The City Council of the City of Port Arthur met in Special Session on Tuesday, April 6,
2010 at 2:42 p.m. in the City Council Chamber, City Hall, with the following members
present: Mayor Deloris "Bobbie" Prince; Mayor Pro Tem Elizabeth "Liz" Segler;
Councilmembers Morris Albright, III, Martin Flood and Thomas J. "Tom" Henderson;
City Manager Steve Fitzgibbons, City Secretary Terri Hanks, City Attorney Valecia Tizeno
and Sergeant At Arms Chief of Police Mark Blanton.
Councilmember Jack Chatman, Jr. was absent from the Special Meeting.
Councilmember Robert E. "Bob" Williamson was absent from the Special Meeting.
Councilmember John Beard, Jr. joined the Special Meeting at 2:48 p.m.
Councilmember Dawana K. Wise joined the Special Meeting at 4:03 p.m.
II. DISCUSSION
(1) Streets Program
Assistant City Manager/Operations John Comeaux appeared before the City Council to
address ingluiries related to the streets program.
Public Works Director Ross Blackketter appeared before the City Council to report on
street improvement activities and distributed information as shown in Exhibit "A" of the
Meeting Minutes.
City Manager Steve Fitzgibbons addressed financial needs.
Councilmernber Beard arrived at 2:48 p.m.
(2) Sewer Construction Rehabilitation Policies and Procedures
City Manager Steve Fitzgibbons addressed rehabilitation and encroachment information
as shown in Exhibit "B" of the Meeting Minutes.
Public Works Director Ross Blackketter appeared before the City Council to report on
the pipe buirsting and the notification processes.
Councilmember Beard requested mapping information and a progress report on ongoing
rehabilitation projects.
Councilmember Albright requested a program plan to replace residential sanitary sewer
service lines.
Councilmernber Flood left the Council Chamber at 3:18 p.m.
(3) City's Purchasing Policies & Procedures
Purchasing Manager Shawna Tubbs appeared before the City Council.
City Attorney Valecia Tizeno discussed proposed bid packet and publication
amendments to enhance the vendor selection process as shown in Exhibit "C" of the
Meeting Minutes.
Finance Director Deborah Echols appeared before the City Council to report on current
purchasing policy advancements.
Councilmernber Beard voiced concerns with local ranking policies.
The City Council recessed their Special Meeting at 3:25 p.m. and reconvened their
Special Meeting at 3:53 p.m. with the following members present: Mayor Prince; Mayor
Pro Tem Segler; Councilmembers Albright, Flood, Beard and Henderson; City Manager
Fitzgibbons;; City Secretary Hanks; City Attorney Tizeno and Sergeant At Arms Chief of
Police Blanton
II. DISCUSSION
(3) City's Purchasing Policies & Procedures
City Manager Fitzgibbons discussed procurement policies for professional services.
City AttornE~y Tizeno commented on purchasing policy improvements.
Councilmember Wise joined the Special Meeting at 4:03 p.m.
Chief Executive Officer Floyd Batiste appeared before the City Council to address
current design/build endeavors.
Purchasing Director Shawna Tubbs appeared before the City Council to address
inquiries related to performance and payment bonding requirements.
III. ADJOURNMENT OF MEETING
Upon the motion by Councilmember Albright, seconded by Councilmember Beard and
carried unanimously, the City Council adjourned their Special Meeting at 4:10 p.m.
An audio-tape of this meeting is on file in the office of the City Secretary and is made a
part of the official minutes of this meeting.
MAYOR DELORIS °BOBBIE" PRINCE
ATTEST:
CITY SECRETARY TERRI HANKS
END OF SPECIAL MEETING HELD April 6, 2010.
APPROVED:
City Council P~linutes 2
Special Meeting -April 6, 2010
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41
EXHIBIT 'B"
~.~~~~~~ SPECIAL MEETING MINUTES
~ ~~+~~ APRIL 6, 2010
~~~ .~
~~~ ~~~~~rw~~s o~~ICE ~~,~~ - ~ 2G10
F
MEMORANDUM ~~~~~ ~t~,~;g^~ << --~ G
.~
CITY OF PORT ARTHUR
Utlllt O eratlons De artment
Y p p
TO: Stephen Fitzgibbons, City Manager
FROM: Kelly Eldridge, Director of Utility Operations J~,r~~ '~
l ~~~n/ti"r
DATE: March 31, 2010
RE: Sanitary Sewer Projects FILE: KE033110.SewerProjectReport
Collection System Rehabilitation
The current ARRA funded projects include three large contracts that will involve
rehabilitation of sanitary sewer mains serving homes in various parts of town as dictated
by our SSES. In total, we plan to rehabilitate about 45 miles of our 330-mile system. This
compares to about 25 miles we replaced during our Phase I SSES projects. A major
change is that the vast majority of this rehabilitation will be done using pipe bursting as
the primary construction method. This involves much less excavation, resulting in much
less disruption to residents. This method requires excavation at entrance pits, point
repairs, and service connections only, not the entire length of the sewer line.
Before we began Phase I of our program, the City Council adopted an Encroachment
Policy (by Resolution No. 01-192) in order to reduce our exposure to citizens placing
improvements within our easements or right-of-ways. This policy provides residents with
notification before our contractor removes their encroachments. The most frequent,
relatively expensive encroachment is fence. City Code of Ordinances, Chapter 18,
Article X, Section 453 details the prohibition of building fences on City property (ROW,
alleys, sidewalks, parks, or any public grounds) and Section 454 establishes conditions
for building on easements (property owner is responsible for replacement or repairs).
The Encroachment Policy adopted is below:
ENCROACHMENT POLICY
This policy is for Easement/Right-Of-Way Encroachments, which restrict
construction, operation, and/or maintenance of public utilities.
Thie following steps shall be followed to provide for continued access of public
easements by public utilities.
r~ The customer is notified of the encroachment, and the City's
encroachment policy.
^ The customer is allowed thirty (30) days for removal of the
encroachments from the easement/ROW.
Any encroachments not removed after thirty (30) days shall be removed
by the contractor and placed on the property adjacent to the
easement/ROW.
^ After completion of the construction, the contractor shall restore the
easement/ROW to its original grade or contours minus any
improvements or other encroachments.
^ Customer must sign an encroachment agreement before replacing
improvements on the easement/ROW.
The following is an excerpt from the City Council meeting presentation handout back in
July 2001:
`°During a construction project, the contractor, under the observation of our consultant, issues
copies of a standard City letter containing this policy statement to all properties abutting the
project. The letter contains the names and phone numbers of a representative of the contractor,
the engineer, and the City to answer any questions. We all receive numerous calls before, during,
and after construction activities. The vast majority of calls are questions that can be answered
over the phone. However, as the need arises to visit the site, we contact our consultant for a
determination and forwarding to the contractor, if necessary. Often circumstances require that a
City representative also visit the site, usually just to add a second, objective opinion or to reiterate
City policy. The City relies on our consultant, who has already identified encroachments in the
design survey, to address most questions. Also note that just because an encroachment exists,
doesn't mean that the contractor is required to remove it. Often, an encroachment across the
alley from the work does not require removal. Please note that it is in the contractor`s best interest
to minimize the removal of encroachments, as there is not a pay item for this in our contract. The
City and our contractor(s) sometime go to extremes to minimize the removal of encroachments. A
recent Change Order to the current waterline rehabilitation project allowed the contractor to bore
under an existing garage that was built over the old water line. While this practice was not ideal
from an O&M standpoint, it allowed the resident to continue to have a garage and the City still got
a new water line through this area. One additional benefit of our Encroachment Policy on large,
scheduled projects is that easements and right-of-ways are now clear from obstructions that keep
us from reading meters or performing maintenance tasks."
According to our consulting engineers' estimates during the Phase I projects and the
concurrent Waterline Replacement Project, the Encroachment Policy saved the City over
$3M in fence replacement alone. The legality of using public funds to replace private
improvements within our easement or ROW was also in question. The Encroachment
Policy gives residents 30 days to remove any encroachments. After that time, we (or our
contractor) will remove such improvements and set them aside as practicable. Note that
some old fence/shubbery cannot be removed without damaging it beyond restoration.
During our Phase I projects, our contractors and consulting engineers did a good job
working with residents in this regard. Many residents restored their fences after our work
was completed, hopefully with proper building permits. Our contractors also removed
many dilapidated structures that residents did not want and could not remove
themselves. If we remove an improvement that is NOT on our easement/ROW, simply
for construction convenience, we restore it to its previous location. I do not recall any of
our contractors having to remove any permanent structures, even though many were in
the way. Keep in mind that removing any encroachment slows down progress and costs
the contractor (& the City) time and money. Our contractors literally removed overgrown
jungles from easements and alleys, leaving them in a condition that is accessible by our
maintenance crews and meter readers. Much of our Phase II work is being done in the
street RO1N (EI Vista & Port Acres), and the Lake Charles LS area is mostly in 20'
dedicated alleys. These areas should not have too many resident encroachments. I have
attached copies of the letters I prepared for issuance during these projects. The letter
also serves as notice of impending construction activities, and includes language about
the grant program the TWDB asked me to add.
WW'TP Rehabilitation
Another part of our TCEQ enforcement action was to address deficiencies at our larger
wastewater treatment plants. As we progress through construction, we will undoubtedly
discover additional items that will need to be addressed in order to meet our
enforcement order.
The Main WWTP was last rehabilitated in the 1980's during the EPA Step III
Construction Grants Program, making the `new' machinery and equipment about 25
years old. Much of the plant's equipment dates back to the original construction in 1960.
As much as $1,000,000 of the rehab work can be charged to FEMA (or our insurance)
as Hurricane Ike damage. A large percentage of equipment is scheduled for
replacement in this project.
The `new' Port Acres WWTP was placed into service in 1984. Since then, the TCEQ has
changed our permit parameters and their design criteria, causing our plant to be unable
to routinely meet our permit requirements. This project will not only replace a lot of worn
out equipment, but will construct an additional aeration basin and retrofit our existing
units to provide for a much higher level of treatment, and expand our VWVTP capacity.
Hopefully, collection system rehabilitation in the Port Acres, EI Vista, and Lakeside Park
areas will reduce flow to the facility.
I will be available to discuss this report with you at your convenience.
cc: M. Qureshi, P.E.
Charles Shajari
Arceneaux & Gates Consulting Engineers
EXHIBIT "C"
SPECIAL MEETING MINUTES
APRIL 6, 2Q1Q
Interoffice
MEMORANDUM
'I'o: Mayor, City Council, and City Manager
From: Valecia R. Tizeno, City Attorney (~~
Date: April 6, 2010
Subject:: Purchasing Procedure~>
Please find attached two (2) publications regarding
purcha:~ing procedures. It is my recommendation that we
update our bid packets to notify prospective bidders that
we will be considering their safety records. This
requirement is set out in Section 252.0435 of the Texas
Local Government Code, which is also attached for your
review.
Also, the bid packets should be updated to address the
issue of prior performance. The bid packet should indicate
that this will be a consideration in the evaluation of a
bid. This will allow the City to address any issued of
poor performance. I have highlighted the relevant portions
of the article for your review.
VRT:ts
Attachment
cc: Purchasing Manager
L)irector of Finance
Assistant City Manager/Administration
Assistant City Manager/Operations
s.purchasing memo
proposals and to ensure that the electronic bids or proposals remain effectively unopened until
the proper time.35
Is there a special notice requirement if the city intends to issue time warrants
to cover the cost of a contract award?
Special notice requirements apply if a city intends to issue time warrants to pay for the cost of a
contract award. The required newspaper notice must include a statement of the city council's
intention to issue time warrants.36 That notice must also include the maximum amount of the
proposed tune warrant indebtedness, the rate of interest the time warrants will bear, and the
maximum maturity date for the time warrants.
If a city chooses not to follow statutory procurement requirements for a
particular item, should the city create any documentation to note why bidding
laws were not applicable to that transaction?
State law does not indicate any requirement that a city note in its purchasing documentation why
bidding laws were not applicable to the involved transaction. Nonetheless, cities should consult
local legal counsel regarding whether they would find placing such a justification on the record
helpful to the city or the involved staff's legal position.
iV. Consideration and Award of Bid or Proposal Requests
Can a city adopt additional criteria regarding the qualifications of potential
bidders?
Under current law, if the city wishes to consider additional criteria, the city"s bid specifications
should cleaxly specify the various criteria that will be considered. When using additional criteria
for competitive bidding, 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 city using the following
c:riteria37:
• the purchase price;
• the reputation of the bidder and of the bidder's goods or services;
• the quality of the bidder's goods or services;
• the extent to which the goods or services meet the municipality's needs;
• the bidder's past relationship with the municipality;
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;
• the total long-term cost to the municipality to acquire the bidder's goods or
services; and
any relevant criteria specifically listed in the request for bids or proposals.
'~ !d. § 252.0415(a).
"~ Id. § 252.041.
'' /d. § 252.043.
2010 Texas Municipal Procurement Laws Made Easy • Office of the Attorney General
10
[L no such additional criteria are spelled out in the bid specifications, state law only allows the
city to award the contract to the lowest responsible bidder if using competitive bidding.
Can the city take into account the safety record of the bidder in making the
award?
~u~hen awarding a contract using traditional competitive bidding, the city may only consider a
bidder's sairety record in regards to the bidder's '`responsiveness" if notice has been given that
such a criterion is relevant. Specifically, the governing body must have adopted a written
definition and criteria for assessing the bidder's safety record, and must have given notice in the
bid specifications that the safety record will be considered. Of course, any decision that the city
makes must not be arbitrary or capricious.38
«hat options does a city have if the lowest bidder has a prior history of poor
performance?
1_Jnder current law, if the city wishes to consider additional criteria, the city"s bid specifications
should clearly specify the various criteria that will be considered. When using additional criteria
t~or competitive bidding, 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 city using the following
CI]teCla39:
• the purchase price;
• the reputation of the bidder and of the bidder's goods or services;
the quality of the bidder's goods or services;
• the extent to which the goods or services meet the municipality's needs;
• the bidder's past relationship with the municipality;
• 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;
• the total long-term cost to the municipality to acquire the bidder's goods or
services; and
any relevant criteria specifically listed in the request for bids or proposals.
Again, the best practice is to clearly indicate in the city's specifications that a bidder's prior
perfonnar~ce on similar contracts may be considered in evaluating the bids.
`What options does the city have if the city receives no bids in response to a
request`?
Lf competitive bids or proposals are required by Chapter 252 of the Local Government Code,
there is no exception which would allow the city to avoid the statutory requirements due to a lack
of bids. Lf a city receives no response to a request, the city must either re-advertise or decide not
to undertake the contract.
''" Id. ~ 22.0435.
}v Tex. LOC. Gov'T CODE ANN. § 252.043 (Vernon Supp. 2008).
2010 Texas Municipal Procurement Laws Made Easy • Office of the Altorna_y General
ll
PURCHASING AND CONTRACTING AUTHORITY § 252.0435
Ch. ?52
Library References
Municil>al Corporations «241, 335. C.J.S. Municipal Corporations §§ 917, 92:i,
W"estlaw Topic [ado. 268. 927, 1038.
Research References
Encyclopedias Texas Jurisprudence Pleading & Practice
T~ .Iur. 3d Municipalities § 412, Acceptance Forms 2d Ed § 133:19, Preliminary Injuno-
or Rejection of Bids. lion-Order-Against City-Contract Made in
TK .fur. 3d Municipalities § 414, Modification Violation of Competitive Bidding Statute.
of Contract; Change Orders.
Forms
Te~:as Jurisprudence Pleading & Practice
Forms 2d Ed § 208:7, Petition-Withdrawal
by Low Bidder of Erroneous Bid.
Texas Jurisprudence Pleading & Practice
Forms 2d Ed § 133'18, Petition-Taxpayer"s
,~r_tion=lo Enjoin Municipality from Per-
forming Contract Made in Violation of
Competitive Bidding Statute-General Form.
Treatises and Practice Aids
Brooks, 23 Tex. Prac. Series § 12.06, Compet-
itive Bidding-Lowest Bid.
Brooks, 23 Tex. Prac. Series § 12.14A, Com-
petitive Bidding-"Best Value" Bidding.
Brooks, 36 Tex. Prac. Series § 18.6, Station-
ery.
Brooks, 36 Tex. Prac. Series § 18.13, Rejer_-
tion of Bids.
Notes of Decisions
In general 1 Cc.., Inc. v. City of Corpus Christi (Civ.Ap}~.
Late bids 2 1975) 527 S.W.2d 833. Municipal Corporations
335
1. Ici general
Contractor did not have a right, either proba-
ble or vested, to award of a contract for con-
struction of a city health center, merely because
he was lowest bidder since city had right, under
§ ~ of Vernon's Ann.Civ.St. art. 2368a (see,
now, this section), to reject any and all bids and
did so reject bid of contractor. A & A Const.
2. Late bids
City did not waive its rejection of a contrac-
tor's late bid merely because the bid was
opened and read along with other bids in viola-
tion of city regulation that late bids should be
returned sealed. A & A Const. Co., Inc. v. City
of Corpus Christi (Civ.App. 1975) 527 S.W.2d
833. Municipal Corporations a 240
§ 252.0435. Safety Record of I3idder 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:
II) the governing body has adopted a written. definition and criteria far
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.
Added. by .Acts 1989, 71st Leg., ch. 1, § 58(b), eff. Aug. 28, 1989.
Historical and Statutory Notes
Section 58(a) of the 1989 Act provides: "This Section amends the Local Government
Code to conform to Sections 3 through 5, Chap-
341
Purchasing Basics -Update December 2009
when is a city required to competitively procure goods and services?
~y'ith limited exceptions, before a city enters into a contract that requires an expenditure of more
than $50,000, it must comply with the procedures for competitive sealed bidding or competitive
sealed proposals in Chapter 252 of the Texas Local Government Code. As an alternative to
competitive sealed bidding or proposals, a city may use the following procurement methods: (1)
the reverse auction procedure for purchasing in Section 2155.062(d) of the Government Code;
(^) a coope~;rative purchasing program under Subchapters D and F of Chapter 271 of the Local
Government Code; or (3) a method described by Subchapter H of Chapter 271 of the Local
Government Code (alternative procurement methods for city construction projects). Id. at
§252.022(a}.
Note that legislative changes made in 2007 authorize a city to use competitive sealed proposals
fc:~r the purchase of any goods or services, including high technology items and insurance.
However, construction projects must generally be procured using competitive bidding or specific
alternative methods (discussed below). TEx. Loc. Gov'T CODE §252.021(b).
What criteria may a city use when competitively procuring a contract?
For general procurement of goods or services (as discussed below, special rules may apply to
construction procurement), a contract must be awarded to: (a) the lowest responsible bidder, or
(b) the bidder who provides goods or services at the "best value." TEx. Loc. Gov'T CODE
§252.043. When determining "best value," the city may consider factors other than the purchase
price of they goods and services, including among other things: (1) the reputation of the bidder
and the bidder's goods or services; (2) the quality of the bidder's goods or services; (3) the
bidder's past relationship with the city; and/or (4) any other lawful criteria. Id.
The city must indicate in the bid specifications and requirements that the contract will be
awarded either to the lowest responsible bidder or to the bidder who provides goods or services
at the "best value" for the city. Id.
In addition, two provisions authorize the use of local preference when awarding a contract. A
city may consider a bidder's principal place of business when a city awards a contract for real or
personal property. Icy. §274.905. The provision is available only to a city with a population of
less than 400,000, and it provides that if a city receives one or more bids from a bidder whose
principal place of business is in the city and whose bid is within three percent of the lowest bid
price of anon-resident, the city may pick the resident bidder after a written determination that
the decision is in the best interests of the city. Id. This is a useful provision for awarding
contracts, but it appears to be directed towards the purchase of tangible items rather than
services. Section 271.9051 authorizes any city with a population of less than 250,000 to give a
preference to a local bidder when a awarding a contract for personal property or services i£ (1)
the local biid is within five percent of the lowest bid that isn't local, and (2) the city's governing
body finds in writing that the local bid offers the best combination of price and economic
development factors such as local employment and tax revenues. Note that Section 271.9051
was limited to contracts of $100,00 or less by H.B. 2082 in 2009. Id. §271.9051.
What are common exemptions from the competitive procurement requirements?
A city does not have to comply with competitive procurement requirements for certain
expenditures, even if the expenditure is over $50,000. The most common exemptions are as
lc~llows (see Section 252.022(a) of the Local Government Code fora complete list of
exemptions):
• A procurement made because of a public calamity that requires the immediate
appropriation of money to relieve the necessity of the municipalit:y's residents or to
preserve the property of the municipality. TEx. Loc. Gov'T CODE §252.022(a)(1).
• A procurement necessary to preserve or protect the public health or safety of the
municipality's residents. Id. §252.022(a)(2).
• A procurement necessary because of unforeseen damage to public machinery, equipment,
or other property. Id. §252.022(a)(3).
• A procurement for personal, professional, or planning services. (Note: Certain
professional services, however, must be procured through a competitive selection process
under Chapter 2254 of the Government Code (the Professional Services Procurement
Act)). Id. §252.022(a)(4).
• A purchase of land or a right-of-way. Id. ~252.022(a)(6).
• A procurement of items that are available from only one source. Id. §252.022(a)(7).
Whether or' not to use any of the exemptions is up to each city, and the decision should be made
based on the advice of local legal counsel.
When is .a city required to contact historically underutilized businesses (HUBS) when
making a purchase?
;1 city, in making an expenditure of more than $3,000 but less than $50,000, shall contact at least
two HUBS on a rotating basis, based. on information provided by the Texas Comptroller's Office
pursuant to Chapter 2161 of the Government Code (htt~:Ucpa.state.tx.uslnrc~curement/hro<!hub~.
If the list fails to identify a HUB in the county in which the city is located, the city is exempt.
"1 Ex. LOC. GOVT CODE §252.0215.
What are the purchasing rules regarding city construction projects?
For construction projects that involve the construction of a building that is to be designed and
constructed in accordance with accepted building codes (commonly referred to as "vertical
construction projects"), a city may use any of the alternative procurement methods set out in
Chapter 2'71, Subchapter H, of the Local Government Code. TEx. Loc. Gov'T CODE §252.043.
7
Unless otherwise noted below, the alternative methods may not be used to procure civil
engineering projects (commonly referred to as "horizontal construction projects," such as roads
and utility projects). The alternative methods are:
• Competitive bidding (which is different than the "standard" competitive bidding
processes in Chapter 252/Chapter 271, Subchapter B). Id. §271.115.
• Competitive sealed proposals (may be used for civil engineering projects). Id. §271.116.
• Construction manager agent. Id. §271.117.
• Construction manager at risk (may be used for civil engineering projects). Id. §271.118.
• Design-build. Id. §271.119; 271.181 et seq. (A handful of very large cities -those over
100,000 in population -may use design-build for a limited number of civil engineering
projects)
• Job order contract. Id. §271.120.
For each of the methods listed above, a city awards the contract to the contractor who provides
the `'best value" to the city based on the selection criteria established by the city in its
procurement documents. The selection criteria may generally include factors other than the
construction cost, including among other things: (1) the reputation of the contractor and the
contractor's goods or services; (2) the quality of the contractor's goods or services; and (3) the
contractor's past relationship with the city. Id. §271.113.
What effect does a home rule charter provision have on state purchasing rules?
Any provision in the charter of a home Wile city 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 that is in conflict with Chapter 252 controls unless the
governing hody elects to have Chapter 252 supersede the charter. TEX. LoC. GOVT CODE
§252.022.
What is a cooperative purchasing program?
Chapter 271, Subchapters D and F, of the Local Government Code (Cooperative Purchasing
Programs} authorize cities to enter into cooperatives with the state or other local governments for
the purpose of procuring goods and services. The state purchasing cooperative is online at
http://www.window.state.tx.us/procurement/, and a joint TML/Texas Association of School
Board cooperative is online at vvww.tml.or~. In addition, several councils of governments offer
cooperative purchasing.
What is a ireverse auction procurement?
Section 2155.062(d) of the Texas Government Code authorizes the use of the reverse auction
method for the purchase of goods and services. A reverse auction procedure is: (1) real-time
bidding process usually lasting less than one hour and taking place at a previously scheduled
time and Internet location in which multiple suppliers, anonymous to each ether, submit bids to
provide the designated goods or services; or (2) a bidding process usually lasting less than two
weeks and taking place during a previously scheduled period and at a previously scheduled
Internet location, in which multiple suppliers, anonymous to each other, submit bids to provide
the designated goods or services. TEx. Gov'T CODE §2155.062(d).
What are the penalties for failing to comply with competitive procurement laws?
A contract made without compliance with competitive procurement laws is void, and
performance of the contract may be enjoined by any property tax paying resident or a person
who submitted a bid for a contract to which the competitive sealed bidding requirement applies,
regardless of residency, if the contract is for the construction of public works. TEx. Loc. Gov'T
C:oC>E §25?.061. The specific criminal penalties are as follows:
• A municipal officer or employee who intentionally or knowingly makes or authorizes
separate, sequential, or component purchases to avoid the competitive procurement
requirements of Chapter 252 commits a Class B misdemeanor. Id. §252.062.
• A municipal officer or employee who intentionally or knowingly violates the competitive
procurement requirements of Chapter 252 commits a Class B misdemeanor. Id.
• A municipal officer or employee who intentionally or knowingly violates Chapter 252
other than by conduct described above commits a Class C misdemeanor. Id.
A final conviction for an offense constituting a Class B misdemeanor results in the immediate
removal of that person from office or employment. For a period of f:our years following
conviction, the removed officer or employee is ineligible to be appointed or elected to a public
office in Texas, to be re-employed by the city, or to receive any compensation through a contract
with that city- Id. §252.063.
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