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