HomeMy WebLinkAboutR-1998-09
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Houston-Galveston Area Council Office of the Executive Director
PO Box 2ZT77 · 3555 Timmons · Houston. Texas 7nZ1-2777. 7131627-3200
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TO:
Board of Directors
SUBJECT:
Action Request-Motor Vehicle Division Issues
Jack Sleel~
July 29, 1998
FROM:
DATE:
Background-As you are aware, the Texas Motor Vehicle Division and Board is actively
seeking to restrict or end local government ability to cooperate in the purchase of motor vehicles.
H-GAC has obtained a restraining order, which prevents further action by the Motor Vehicle
Division, and allows the vehicle purchasing program to continue on a normal basis.
Current Situation-The long-term remedy for this situation will be legislation clarifying once
and for all that local governments can cooperate to purchase vehicles.
As a follow-up to recent Board discussions, I am enclosing two....draft resolutions' fo~'
< consideration and possible adoption by your governing body. One resolution calls for legislative
action. The other similar resolution requests that your state association support continued
cooperative purchasing of vehicles.
Action Requested-Your governing body's adoption of both resolutions would be very helpful.
Please send the state association resolution to the appropriate person dealing with your state
association's legislative program. Please send the other resolution to H-GAC. I am also sending
a fact sheet about the program for your use. Please contact me if you have questions oar would
like more information.
IS/mw
Enclosures
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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.