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1993-182E \WPDOCS\ORD\PURCB 0 NO 23 -1)?~ AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING ARTICLE II OF CHAPTER 10 ("FINANCE AND TAXATION") OF THE CODE OF ORDINANCES PRO- VIDING FOR PROCEDURES FOR EMERGENCY PURCHASES, PROVIDING FOR PRO- CEDURES FOR PURCHASES BASED ON CERTAIN VALUES, PROVIDING FOR COM- PETITIVE BIDING, PROVIDING FOR PURCHASES FROM BOND FUNDS, PROVIDING FOR PERSONAL SERVICE CONTRACTS, PROVIDING FOR COMPETITIVE SEALED PROPOSALS, PROVIDING FOR CONTRACTS WITH FORMER COUNCILMEMBERS, PROVIDING A PENALTY IN THE MAXIMUM AMOUNT OF $500 00 FOR VIOLATIONS OF THE PROVISIONS HEREOF, AND PROVIDING FOR AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS gECTION i. That Sec 10-28 of Chapter 10 of the Code of Ordinances, City of Denton, Texas, is hereby amended to read as follows sec. 10-28. Emergency purchases by department heads (a) Unless authorized by this Code, no purchase of any article, service or thing shall be made by any department head or employee of the City independently of the Purchasing Agent, except in case of immediate emergency occurring when the purchasing office is not open for the conduct of business (b) In such instances described in subsection (a) of this section, the department head may make the neces- sary emergency purchase and shall report the purchase in writing to the Purchasing Agent within twenty-four (24) hours, accompanied by a definite statement of the oc- casion and reasons for such emergency purchase to the Purchasing Agent SECTION II. That Sec 10-29 of Chapter 10 of the Code of Ordinances, City of Denton, Texas, is hereby amended to read as follows sec. 10-29 Procedures for purchases based on certain values. (a) No standard procedure shall be required for purchases under three thousand dollars ($3,000 00) in value, provided, however, the Purchasing Agent shall in all cases reasonably satisfy himself in every instance that such purchases are made at the lowest possible evaluated cost to the City (b) All purchases in an amount between three thousand dollars ($3,000 00) and fifteen thousand dollars and one cent ($15,000 01) shall be made by the Purchasing Agent, in compliance with State law The City Manager shall have authority to authorize expenditures without the approval of the City Council for all budgeted items not exceeding fifteen thousand dollars ($15,000 00) SECTION IIi. That Sec 10-30 of chapter 10 of the Code of Ordinances, City of Denton, Texas, is hereby amended to read as follows sea 10-30. Competitive bidding (a) All purchases of fifteen thousand dollars ($15,000 00) or more, including those for current budgeted supplies and expenditures, shall be made by the Purchasing Agent in response to sealed bids received by him and based upon specifications therefore approved by the Purchasing Agent, the original of which shall be filed in the purchasing office for use and inspection by the public As used in this section, the word "purchas- es" does not include the purchase of personal services or other purchases which, by State law, are not required to be submitted to competitive bids (b) All expenditures of more than fifteen thousand dollars ($15,000 00) shall be approved by the City Council, and the City Council may accept the lowest and beat bid or may reject all of the bids and authorize the Purchasing Agent to readvertise if none of the bids are satisfactory in the opinion of the council SECTION IV. That Sec 10-31 of Chapter 10 of the Code of Ordinances, City of Denton, Texas, is hereby amended to read as follows sec. 10-31 Purchases from bond funds The procedures specified in this article for pur- chases shall be followed for all purchases, regardless of amount, involving contracts for the purchase of annual requirements and purchases from bond funds, and all procedures for purchases of more than fifteen thousand dollars ($15,000 00) shall be governed by the laws of the state relating thereto, the Charter and this Code SECTION V That Sec 10-32 of Chapter 10 of the Code of Ordinances, City of Denton, Texas, is hereby amended to read as follows PAGE 2 sea. 10-32 Personal service contracts. (a) All contracts for personal or professional services calling for an expenditure of fifteen thousand dollars ($15,000 00) or less may be authorized by the City Manager without the approval of the City Council All contracts for personal or professional services calling for an expenditure of more than fifteen thousand dollars ($15,000 00) must be submitted to the City Council for approval (b) All contracts for personal or professional services shall be on form contracts or contracts prepared and approved by the City Attorney, or approved by the City Attorney if prepared by someone other than the City Attorney SECTION VI. That Sec 10-33 of Chapter 10 of the Code of Ordinances, City of Denton, Texas, is hereby amended to read as follows sec. 10-33 competitive sealed proposals for high technology procurements For high technology procurements requiring an expenditure exceeding fifteen thousand dollars ($15,000 00), the Purchasing Agent may follow the com- petitive sealed proposal procedure as authorized by and in accordance with the requirement of V T C A , Local Government Code 252 041 through 252 049 For purposes of this section, "high technology procurement" means the procurement of equipment, goods or services of a highly technical nature, including but not limited to informa- tion processing equipment, software and firmware used in conjunction with information processing equipment, tele- communications equipment, radio and microwave systems, electronic distributed control systems, including building energy management systems, as well as technical services related to such equipment and goods SECTION VII. That Sec 10-34 of Chapter 10 of the Code of Ordinances, City of Denton, Texas, is hereby amended to read as follows sec 10-34. Procedures for competitive sealed proposals (a) Quotations for competitive sealed proposals shall be solicited through a request for proposals The request for proposals shall specify the relative impor- tance of price and other evaluation factors, and the award of the contract shall be made to the responsible offeror whose proposal is determined to be the most advantageous to the City, taking into consideration the PAGE 3 relative importance of price and other evaluation factors set forth in the request for proposals (b) The Purchasing Agent may conduct discussions with offerors who submit proposals and who are determined to be reasonably qualified for the award of the contract Offerors shall be treated in accordance with the require- ments of V T C A , Local Government Code § 252 001 at seq SECTION VIII. That Sec 10-35 of Chapter 10 of the Code of Ordinances, City of Denton, Texas, is hereby amended to read as follows Sec 10-35. Contracts with former councilmembers (a) The City shall not, within one hundred eighty (180) days after a councilmember leaves office, enter into a contract with any business entity in which the former Council member has a substantial interest The prohibition of this paragraph shall not apply to (1) A contract required to be awarded to the lowest responsible bidder through competitive sealed bids as required by state law, (2) A contract to purchase items that are avail- able from only one (1) source as specified in Texas Local Government Code, Chapter 252, as amended, (3) A contract required to receive a City service or participate in a City program which is available to the general public, (4) A contract that is necessary to preserve or protect the public health or safety of the citizens or 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, and (5) The purchase of real estate or an interest in real estate (b) For purposes of this section a person has a substantial interest in a business entity if (1) The person owns ten (10) percent or more of the voting stock or shares of the business entity, PAGE 4 (2) Owns either ten (10) percent or more or five thousand dollars ($5,000 00) or more of the fair market value of the business entity, or (3) Funds received by the person from the business entity exceed ten (10) percent of the person's gross income for the previous year (c) A former councilmember is considered to have a substantial interest under this section if a person related to the former councilmember in the first degree by consanguinity or affinity has a substantial interest under this section (d) For purposes of this section, a "business entity" means a sole proprietorship, partnership, firm, corporation, holding company, joint-stock company, receivership, trust, or any other entity recognized by law SECTION IX. That any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $500 001 Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense SECTION X. That this ordinance shall become effective immediately upon its passage and appro al PASSED AND APPROVED this the. day of 0:4. 1993 ATTEST JENNIFER WALTERS, CITY SECRETARY BY AP ED TO LEGAL FORM DEBRA A DRAYOVITCH, CITY ATTORNEY BY PAGE 5 DATE OCTOBER 5, 1993 CITY COUNCIL REPORT TO Mayor and Members of the City Council FROM Lloyd V Harrell, City Manager SUBJECT ORDINANCE AMENDING ARTICLE II OF CHAPTER 10 OF THE CODE OF ORDINANCE RECOMMENDATION We recommend this ordinance be approved as presented SUMMARY The 1993 State Legislature made several changes to bidding laws with the passage of House Bill 1651 and Senate Bill 226 The major change is that formal sealed bids are required for expenditures in excess of $15,000 00 rather than $10,000 00 Other significant changes included Clarify language concerning notice of time and place of bid openings Clarify language concerning advertisement publication dates Require that contracts for insurance with an expenditure of more than $5,000 00 are subject to bidding requirements Require that before making any expenditure between $3,000 00 and $515,000 00 a municipality shall contact two disadvantaged businesses located in Denton County for quotes The Office of Small Business Assistance of the Texas Department of Commerce is to provide the list of disadvantage business Passage of this ordinance would expedite those expenditures between $10,000 00 and $15, 000 00 as well as bring the City of Denton in line with State Law concerning competitive bidding It would however, have very little impact on our current policy and practice of soliciting competitive bids whenever possible regardless of the dollar amount All expenditures exceeding $15,000 00 would still be presented to council for final passage BACKGROUND Drafted Ordinance, Memorandum dated Sept 3, 1993 PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED Purchasing Department FISCAL IMPACT None espectfull submitted o lV City Manager proved Name Tom D Shaw,C P M Title Purchasing Agent agenda 430