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R-1998-08
NAGER.:;',) ". Houston-GalvestonArea CoUncil :'(~><; '-'~"",' 'I, Office of the EXecUtiYet)ii'eCt~tt<:~~~, , ,. ". PO H' 11 --2777 71"".............." - .'. "', ". '...1.. vv..,~'".\',.,<;...,. ,',.., ".' .. .': , Box 22777 o 35551lmmans0 auston, exas IIG&I- 0 ..,UtU_vv . ......,. .:..".,o..,..,.ql;.:'..:,.-t",; .,~.~ "~;' I~." ..-..:~r..,.~:..':." : ::.~~~~\~~<::. ";:6".'~' '". .'~ '.:r.: ~>~~;"~'~'~:~~":~~";~~~i~ , 1"1 tlrl ,. . '"i" . tll. . ...... -.' .'".... C)I,t~~ "!.,.., f~~f ".~ ':, .', ..' -'......~.. l.I .....;.~.)~..'.:,.,. 1_. D~... .. . ,- '0' .' oJ." ',1, ~'I1. "', 'i:..t'.-:-~lf~g~ ~'-' . '1' '.':: .~: '~.~;' .-,~ .:, .....;i :;t'~Jf.; ....: ~ Ck.~~ ~~t---~c1-Tht.~\:)-t.~"; "-:-'.;,,'.,:.. '.'~';":~--..;../{~ ." . :. . '/.' . ,.;':'.; " ;,- '.::'~ ./:' .:: :'~,.\:,;-::;.. ;',' .' " - " '; .' ,.' " ~.::.,\.":.:':.~::~~t'..~~;(~>; TO" " ,: . "B""'d"f'D" '.'t~"" .,. .'. '.,. . - ~." ";.. .:~.' ,'l.:.;:r.li.""~v, .:. . .'. Oaf 9 .lreC9rs., ' . ..... '. ":'::',.';\;'.'f.:._,.~~.:":'.._> . . ,......., ..........f~ ,':.., ,",~::,:'../: .':. ". . .: . .,."... ': , . ,'. .' ":.-:'}!;:';;\'~'.'~~i;i?~,:~ ',' SUBJECT: :,', . Adion"Request:;"'Motor Vehicle Division Issu~i.: " .'. .... ". " :..>... :...'..'.~;"~':4.;:; '~:.~-::~[~~r'r:: . ,": :.:. ,." ;;,..,;)~>:,:'~,'(: ~.:; .:' '>...... .... . .", ':: . .' :.~', " .... ::...., .'.'. . :..:, ":';f~9~1:}!!.,~:.;....:.,~f.,':!~: ;. F'RO' M' '.' . .,.11" :'k'{St'" 'ILI ..> :", .' ' .' ',' ' ". ',' , " ' .~, .'... .:::,.:;...::.'..:...,.~~.:::~~'~I::< . ". ac . ee .;;. " "', /."., I . -' I? ..ir.l.... ...~, ,"'.........~ : '. .j', ...:1......1' ";"',', .~.. ,;, ':', .~ ..,'.'::',- : .;.... .,'. "'!-I'.,r.. '_:: ...J1...~...(.:;:..r:.,.::;.. ~p..t~...:i " . "~~...". ~. ...:.,.~..;,I i-....:it... .. -, ,"';':;" I "",.' ........ . ... t1", . .,. ~. .." ....~. l......... ..~1.:4 " !of '.~"'..I: ~'.. . . .: '. . ~>... ..'" ~ t.. . ~ :'" "i~V . :.:": . ,;:. '~!:.!-..~":t~ .;- 't; I.~;;'-. ... ~ ' ", ., ..... . ~ . "',;- ~. :.J~' ." ..':~. . .:.~.:. :: ::..... '".~ .~:..~.: ~ '. ~~ .:.~ ~ j' .. .~~: ':;' .-.~ (;,.: ~i": ...:~,_..~~.~t :';"'~~ ~1J '.:;: DATE:..,.. ]uly:29..1998':,r-'~:',;,,'Y~ '~'1""'" .-.,..,.'1,,".. ',.;:,...,;, ':.".-,., -t-'li>J"'f"""'~'.'_~'''ii''''''~':~'~''''~'''::-~'i-'<i',,t;;y~~ . : ,': . ,~:':( "{ /:;;;;}';( ,'.n:~ ~>:~,/,,:';">1 ') '<:<.', .\,~:'?".,' .'. .:.".: :~.~,':::~:; :i;:t;~~;;~~ " .". . .. .~ 'oj. . . - . . . .,.. '. )..." , . .~<~ '; .:~.~. ", '.:':a .,f :: o' i"'"' '1~. I' -:.. I ',' Of -.: 0.... :. . 0, ....;.. .;.:l....~IJt.~,.,;~... Ba~kgr~u~d...:..:AS ~..;~~ k~ '~~m-~;~ th~ Te~~' Mcitor V ehi~le 'Divisio~ arid Board r. i~ 'a~i~~l}<<~,.;~~:.~'tt~ seeking to ~estrict, ~r'~e~~ 'Iocal gov~rnhtent ,ability to '~operate in th~ purchase of motor 'velii~le'S.', (: ::<~:~.;~~(~: H-GAC. has C?btai~e(f a, restraining . .order~. whi~h prevents further a.ctio~ by the Motor V e~Cl~::~,\~;"~-Zft,~;;~'J~ . Divjsion, an~ allow~:the v~hicle purch8~ing pr:Ogram .to continue on a normal basis. .'. ~:::~~:):i+~~i; :-->;'. ~. . ,". .".. '",: .>:.: " .' . .: : II.",. "t.. :.. - ." ". '. . :"~' '. . ..t~~;;t~~;;~.:;"1~:'..j. . Current' Situation',: 1.be long-te~ "~~inedy 'f~~ this ~ituation will be legislation clarifying ~n~:.. ::;. ;>;j(~-N~i .'. . '..... '.. ., It .' .". .. . . ....~ ..'~. " and for all th~t lo~ govemments carl cOoper~te to purchase vehicles. . .' . .:.': ~'..'~;:.~~..:~:'~~'~&::'.ji ..' . :' :',':' , . :-:-/} ':~~5:\..~1:'/ft . 'As' a follow-up to .'recent Board' discussions, I am enclosing twoedraft:-=reS()lutioi1rfCW':<::~\\?~';~;j; _c;.Q~!iq~~~j.Qt!JUld-_:p~~ib"e adoption. by..yourtg~f."!ll.l!g .hody~One reso!ut~o~ calls for ~egis!ative .';:~ , ;~~~,:~~4~V actlOn. The other SImIlar resolutIon requests that your state association support. contmued :'. <t :~~ ,~O, cooperative purchaSing of vehiCles. :.< .~;~~ -t.~~;~~:. '.-" "\'X~')'p \1 j1ir,~~ :~ .:.~.. . . (:~;:'.:.::",::~ .':. . - .' .... l : . ~ .. r ... :y~.yt>.:'.': C@~v . -:: ~;,_,':>,:::;}~f..:~:.,." '.. :'.': . . .1.: . . 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 .or would .like more information. .;~ . . IS/mw Enclosures '0 ReqdId .... .. e C':"""@U' ~.b.'V".:;' t,' . ". : , - " , . '" 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.