10-01-2001 La Porte Redisticting Committee Regular Meeting

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• • Bickerstaff, Heath, Smiley, Pollan, Kever & McDaniel, L.L.P • 1700 Frost Bank Plaza 816 Congress Avenue Austin, 7tixas 78701-2443 (5]2)472-8021 Fax (512)320-5638 www.bickersta$.com LEGISLATIVE UPDATE 77TH TEXAS LEGISLATURE: IMPACT ON PURCHASING H.B. 197/H.B. 2863: raises from $15,000 to $25,000 the threshold contract amount at which a city is required to engage in a competitive purchasing procedure. Effective September 1, 2001. H.B. 1981: provides that in a competitive bidding procedure, the governing body shall provide all bidders the opportunity to bid on the same itelns on equal terms and have bids judged based on the same standards. The bill also provides that a governmental body may receive bids in hard copy format or through electronic transmissions. Finally, the bill provides that a city may receive bids and proposals through electronic transmission if the governing body of the city adopts rules to ensure the identification, security, and confidentiality of the electronic bids or proposals. Effective September 1, 2001. S.B. 221: allows a city to use the reverse auction procedure to purchase goods or services. A "reverse auction" is a method of procurement through which a buyer receives, via the Internet, price "bids" from potential sellers. When the bidding closes, • the buyer pays the lowest price that was bid. Effective September 1, 2001. S.B. 510: makes the following changes in procurement statutes: (1) amends the competitive bidding statute to allow a city to award a contract that has been competitively bid to the bidder who provides the goods or services "at the best value" for the city, except that the bill prohibits awarding a contract based on the best value analysis if the contract is for roads, streets, bridges, utilities, water supply/plants, wastewater plants or distribution facilities, or buildings or structures that are incidental to projects that are primarily civil engineering construction; (2) adopts new provisions that require that contracts for the construction of a facility must be awarded through the competitive bidding process or through alternative processes like design-build; and (3) adopts new provisions that allow a city to use the design-build method, construction manager methods, or job order contracts for the construction repair, rehabilitation, or alteration of a building. Effective September 1, 2001. S.B. 311: abolishes the General Services Commission and creates the new Texas Building and Procurement Commission (TBPC). The bill provides that the TBPC shall, among other things, create a schedule of multiple award contracts that have been previously awarded using a competitive process by the federal government or any governmental entity in the state. The schedule shall be posted on the Internet to allow state agencies or local governments to purchase goods or services directly from a vendor under contracts listed under the schedule. Effective September 1, 2001, except where provided otherwise in the Act.