HomeMy WebLinkAboutO-2008-2736-A increase City Manager’s purchasing authority for budgeted items/$25, 000.00 to $50, 000.00 (original in 2004)
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested January 14,2008
Requested By: Susan Kelle .xi
ADDfoDriation
Source of Funds:
Department:
Account Number:
Report:
Resolution:
Ordinance:
x
Amount Budgeted:
Amount Requested:
Exhibits: Ordinance #2004-2736 -A
Budgeted Item: YES NO
Exhibits:
Exhibits:
SUMMARY & RECOMMENDATION
DlU'ing the 2007 Legislative Session the Legislature amended Section 252.002 of the Texas Local Government Code
to increase the dollar value threshold for requiring that municipal contracts be subject to competitive sealed bids or
proposals, from $25,000 to $50,000. At the City level, Section 5.02 of the City Charter requires that city contracts
comply with Chapter 252 of the Local Government Code, for all contracts in excess of $5000. Furthelmore, Section
5.02 of the Charter allows City Council by ordinance to increase the dollar value threshold for city contracts to
match periodic increases in state law. An ordinance was subsequently passed for this purpose, and was codified in
Chapter 2 of the Code of Ordinances, as Section 2-82.
Section 2-82 of the Code of Ordinances was worded to formally adopt the provisions of Chapter 252 of the Local
Government Code and allow Chapter 252 to supersede the City Charter. By doing so it also has the
effect of automatically adjusting the dollar value threshold for city contracts to match any increases incorporated
into state law, without City Council action, by providing that "The city council hereby elects to have the provisions
ofV.T.C.A., Local Government Code Sec. 252.001 et seq., 'Purchasing and Contracting Authority of Municipalities'
supersede the provisions of the City Charter that relate to the notice of contracts, advertisement of notice,
requirements for the taking of sealed bids based on specifications for public improvements or purchases, the manner
of publicly opening bids or reading them aloud or the manner of letting contracts that are in conflict with V.T.CA,
Local Government Code Sec. 252.001 et seq."
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The authority for Section 2-82 of the Code of Ordinances is twofold: 1) Local Government Code Section 252.002,
which provides that a municipality may elect to have Chapter 252 controi over charter provisions governing bidding
of public contracts; and 2) Chalter Section 5.02, which provides that "Before the city may enter into a contract that
requires an expenditure of more than five thousand dollars ($5000), the city must comply with the procedure
prescribed by V.T.C.A. Local Government Code Sec. 252.001 et seq. for competitive sealed bidding or competitive
sealed proposals..." and that "Council by ordinance may increase the five thousand dollar ($5000) limitation herein
provided to confOlm to subsequent increases authorized by state law" .
As such, since Section 2-82 of the Code of Ordinances is self-executing, it is not necessary for the City Council to
take action to increase the dollar value threshold for city contracts to $50,000, to agree with the recent amendment
made to Chapter 252 of the Local Government Code.
However, Charter Section 5.02 also provides that "Council may by ordinance confer upon the city manager general
authority to contract for expenditures without futther approval of council for budgeted items not exceeding five
thousand dollars ($5000.00). All contracts for expenditures involving more than five thousand dollars ($5000.00)
must be expressly approved by council in advance". Whereas the dollar value threshold for city contracts to be
competitively bid is automatically adjusted to agree with changes in state law, this is not the case with city manager
purchasing authority. Instead, an ordinance must be passed each time an increase is desired. Past City Councils have
periodically adjusted city manager purchasing authority, from $5000, to the present amount of $25,000, by passage
of ordinances codified as Section 2-81, in Chapter 2 of the Code of Ordinances. The authority for these periodic
increases is based on Charter Section 5.02, which as noted above, provides that "Council by ordinance may increase
the five thousand dollar ($5000.00) limitation herein provided to conform to subsequent increases authorized by
state law."
While state law does not place a dollar limit on a city manager's authority to contract for budgeted items without
approval from city council (as apposed to public contracts without competitive bidding), it is apparent that Section
5.02 of the Charter was written to synchronize the current dollar amount threshold for competitively bidding
contracts as established by state law, with the dollar limit on the purchasing authority of the city manager for
budgeted items without prior approval from the city council. As a result, the City has as a matter of practice kept the
amount of the city manager's purchasing authority of budgeted items without prior approval from council, consistent
with the amount set by state law for requiring competitive bidding on public contracts. .
Therefore, with the recent increase in the dollar amount threshold for the competitive bidding of public contracts to
$50,000, you are asked to consider passage of an ordinance amending Section 2-81 of the Code of Ordinances by
increasing the purchasing authority of the city manager for budgeted items without prior approval from council,
from $25,000 to $50,000.
ance Increasing the city manager's purchasing authority for budgeted Items with prior
om $25,000 to $50,000.
I
Da
ORDINANCE NO. 2004-2736-A
AN ORDINANCE AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES
OF THE CITY OF LA PORTE BY AMENDING CHAPTER 2,
"ADMINISTRATION", ARTICLE III. "FINANCE", DIVISION 2. "PURCHASES
AND CONTRACTS", SECTION 2-81 "AUTHORITY OF CITY MANAGER TO
CONTRACT FOR EXPENDITURES; LIMITS", BY INCREASING THE CITY
MANAGER'S EXPENDITURE LIMIT FROM $25,000 TO $50,000;
CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH
THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE
HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS,
THAT:
Section 1. That Chapter 2, "Administration", Article IlL, "Finance", Division 2.
"Purchases and Contracts", Section 2-81 "Authority of City Manager to Contract for
Expenditures; Limits" is hereby amended anq shall read as follows:
"Sec. 2-81. Authority of city manager tp co~tract forexpenditures; limits.
Pursuant to the provisions of Ch~l.rtersection 5.02 regarding purchase procedure,
the city council hereby confers upon the city manager general authority to contract for
expenditures, without further approval of the city council, for budgeted items not
exceeding $50,000. All contracts for expenditures involving more than $50,000.00 must
be expressly approved by the city council."
Section 2. If any section, sentence, phrase, clause, or any part of any section, sentence,
phrase, or clause, of this Ordinance shall, for any reason, be held invalid, such invalidity
shall not affect the remaining portions of this Ordinance, it is hereby declared to be the
intention of the City of Council to have passed each section, sentence, phrase, or clause, or
part thereof, irrespective of the fact that any other section, sentence, phrase, or clause, or part
thereof, may be declared invalid.
Section 3. The City Council officially finds, determines, recites and declares that a
sufficient written notice of the date, hour, place and subject of this meeting of the City
Council was posted at a place convenient to the public at the City Hall of the city for the
time required by law preceding this meeting, as required by the Open Meetings Law,
Chapter 551, Texas Government Code; and that'this meeting has been open to the public as
required by law at all times during which this ordinance and the subject matter thereof has
been discussed, considered and formally acted upon. The City Council further ratifies,
approves and confirms such written notice and the contents and posting thereof.
Section 4. This Ordinance shall be effective from and after its passage and approval, and it is
so ordered.
PASSED AND APPROVED TIllS TIIE! Lf'%-A y,oF Vl#Jlijf
CITY OF LA PORT
(\.. ~
By: ~~,\~
2008.
Alton E. Porter, Mayor
ATTEST:
BY:~
MARTHA GILLETT,
City Secretary
APPR~ .
By: r !l~
CLARK T. ASKINS,
Assistant City Attorney