R-1998-09 - Laserfiche WebLink

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e e OR\G\NAL H-GAC Local Government Cooperative Purchasing Program Overview Background-The Houston-Galveston Area Council of Governments, a political subdivision of the State, has conducted a cooperative purchasing program for local governments since 1973. The program saves tax dollars through quantity purchases. All purchases are made under publicly advertised sealed competitive bids. Items offered in the program range from garbage bags to fire trucks. Eight hundred sixty nine local governments have executed intergovernmental agreements allowing them to participate in the program. About 425 governments participate in the program each year. Legal Authority-Intergovernmental purchasing programs are specifically authorized under Chapter 791 of the Government Code. Issue-The Texas Motor Vehicle Division has filed a complaint action against H-GAC for violations of the Texas Motor Vehicle Commission Code. The Motor Vehicle Division contends that H-GAC's cooperative purchasing activities violate Motor Vehicle Code provisions on "brokering" of vehicles. Motor Vehicle Division personnel have indicated that the only solution acceptable to them is a complete discontinuation of the H-GAC program. H-GAC has filed a request for declaratory judgement in Travis County District Court, asking the Court to find that H-GAC's program is operating appropriately under the Interlocal Cooperation Act (Title 7, Ch. 791, Government Code.) Current Status-H-GAC has obtained a restraining order preventing Motor Vehicle Division' action against program participants, participating low-bid dealers, and H-GAC itself Cooperative purchasing activities are proceeding normally. Action-Legislative clarification of local government cooperative purchasing authorities IS apparently necessary. Local government support in this effort is vital.