HomeMy WebLinkAbout10-10-16 Regular Meeting of the La Porte City Council (2)
LOUIS R. RIGBYCHUCK ENGELKENCHUCK ENGELKEN
MayorCouncilmember District 2Councilmember District 2
JOHN ZEMANEKDARYL LEONARD
Councilmember At Large ACouncilmember At Large ACouncilmember District 3Councilmember District 3
DOTTIE KAMINSKIDOTTIE KAMINSKIKRISTIN MARTIN
Councilmember At Large BCouncilmember At Large BCouncilmember District 4Councilmember District 4
DANNY EARPJAY MARTIN
Mayor Pro-TemCouncilmember District 5Councilmember District 5
Councilmember District 1Councilmember District 1 MIKE CLAUSEN
Councilmember District 6Councilmember District 6
CITY COUNCIL MEETING AGENDACITY COUNCIL MEETING AGENDA
Notice is hereby given of a Regular Meeting of the La Porte City Council to be held October 10, Notice is hereby given of a Regular Meeting of the La Porte City Council to be held October
10,
2016, beginning at 6:00 PM in the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, 2016, beginning at 6:00 PM in the City Hall Council Chambers, 604 W. Fairmont Parkway,
La Porte,
Texas, for the purpose of considering the following agenda items. All agenda items are subject to Texas, for the purpose of considering the following agenda items. All agenda items are
subject to
action.
1.CALL TO ORDERCALL TO ORDER
2.INVOCATIONINVOCATIONThe invocation will be given by Thomas Park, Fairmont Park Church The invocation will be given by Thomas Park, Fairmont Park Church --Broadway.Broadway.
3.PLEDGE OF ALLEGIANCEPLEDGE OF ALLEGIANCEThe Pledge of Allegiance will be led by Councilmember Mike Clausen.The Pledge of Allegiance will be led by Councilmember Mike Clausen.
4.PUBLIC COMMENTSPUBLIC COMMENTS (Limited to five minutes per person.) (Limited to five minutes per person.)
5.CONSENT AGENDACONSENT AGENDA(All consent agenda items are considered routine by City Council and will beenacted by (All consent agenda items are considered routine by City Council
and will beenacted by
one motion. There will be no separate discussion of these items unless a Councilmember requests an item be one motion. There will be no separate discussion of these items unless a Councilmember
requests an item be
removed and considered separately.)removed and considered separately.)removed and considered separately.)removed and considered separately.)
(a)Consider approval or other action regarding minutes of the meeting held on September 26, Consider approval or other action regarding minutes of the meeting held on September 26,
2016 2016 -- P. Fogarty P. Fogarty
(b)Consider approval or other action regarding change in City Council meeting dates for the Consider approval or other action regarding change in City Council meeting dates for the
months of November and December due to holiday schedule months of November and December due to holiday schedule -- P. Fogarty P. Fogarty
(c)Consider approval or other action regarding an Ordinance vacating, abandoning and closing Consider approval or other action regarding an Ordinance vacating, abandoning and closing
the east/west alley in Block 185, Town of La Porte the east/west alley in Block 185, Town of La Porte -- T. Leach T. Leach
(d)Consider approval or other action authorizing the City Manager to sign an agreement for Consider approval or other action authorizing the City Manager to sign an agreement for
participation in the Regional DWI Task Force participation in the Regional DWI Task Force -- K. Adcox K. Adcox
(e)Consider approval or other action regarding a Resolution authorizing the City Manager to sign Consider approval or other action regarding a Resolution authorizing the City Manager
to sign
grant award for Speed and Intersection Traffic Control (STEP) Grant grant award for Speed and Intersection Traffic Control (STEP) Grant -- K. Adcox K. Adcox
(f)Consider approval or other action approving purchase of Equipment & Vehicles using the Consider approval or other action approving purchase of Equipment & Vehicles using the
Houston Galveston Area Council and Texas Local Government Cooperative Purchasing Houston Galveston Area Council and Texas Local Government Cooperative Purchasing
methods for the Fiscal Year 2016methods for the Fiscal Year 2016--2017 Vehicle Replacement Program 2017 Vehicle Replacement Program -- S. Valiante S. Valiante
6.PUBLIC HEARINGS AND ASSOCIATED ORDINANCESPUBLIC HEARINGS AND ASSOCIATED ORDINANCES
(a)Public hearing to receive comments regarding recommendation by the Planning and Zoning Public hearing to receive comments regarding recommendation by the Planning and Zoning
Commission to approve a Special Conditional Use Permit (SCUP) for the construction of a Commission to approve a Special Conditional Use Permit (SCUP) for the construction of a
secondary dwelling unit for property located at 2711 Crescent Drive, La Porte; consider secondary dwelling unit for property located at 2711 Crescent Drive, La Porte; consider
approval or other action regarding an Ordinance to approve SCUP #16approval or other action regarding an Ordinance to approve SCUP #16--91000003, to allow 91000003, to allow
development of one (1) secondary dwelling unit for property located at 2711 Crescent Drive, development of one (1) secondary dwelling unit for property located at 2711 Crescent Drive,
La Porte La Porte -- R. Cramer R. Cramer
7.AUTHORIZATIONSAUTHORIZATIONS
(a)Consider approval or other action authorizing the Mayor to execute a Local Government Code Consider approval or other action authorizing the Mayor to execute a Local Government Code
Chapter 380 Agreement between the City of La Porte and Ybarra Restaurants, Inc., for waiver Chapter 380 Agreement between the City of La Porte and Ybarra Restaurants, Inc., for waiver
of payment of fees for closure of street rightof payment of fees for closure of street right--ofof--way in connection with the construction of a way in connection with the construction
of a
new El Toro Restaurant new El Toro Restaurant -- T. Leach T. Leach
(b)Consider approval or other action regarding an Ordinance vacating, abandoning, and closing a Consider approval or other action regarding an Ordinance vacating, abandoning, and closing
a
portion of the North 25th Street rightportion of the North 25th Street right--ofof--way way -- T. Leach T. Leach
8.DISCUSSION AND POSSIBLE ACTIONDISCUSSION AND POSSIBLE ACTION
(a)Discussion and possible action regarding a matrix for Request for Proposals for collection Discussion and possible action regarding a matrix for Request for Proposals for collection
services of delinquent ad valorem taxes services of delinquent ad valorem taxes -- M. Dolby M. Dolby
9.REPORTSREPORTS
(a)Receive presentation for Procurement Methods Receive presentation for Procurement Methods -- C. Daeumer C. Daeumer
10.ADMINISTRATIVE REPORTSADMINISTRATIVE REPORTS
City Council Meeting, Monday, October 24, 2016City Council Meeting, Monday, October 24, 2016
11.COUNCIL COMMENTSCOUNCIL COMMENTS regarding matters appearing on the agenda; recognition of regarding matters appearing on the agenda; recognition of
communitymembers, city employees, and upcoming events; inquiry of staff regarding specific factual communitymembers, city employees, and upcoming events; inquiry of staff regarding specific
factual
information or existing policies. Councilmembers Clausen, J. Martin, K. Martin, Kaminski, Zemanek, information or existing policies. Councilmembers Clausen, J. Martin, K. Martin, Kaminski,
Zemanek,
Leonard, Engelken, Earp and Mayor RigbyLeonard, Engelken, Earp and Mayor Rigby
12.ADJOURNADJOURN
The City Council reserves the right to meet in closed session on any agenda item should the The City Council reserves the right to meet in closed session on any agenda item should the
The City Council reserves the right to meet in closed session on any agenda item should the The City Council reserves the right to meet in closed session on any agenda item should the
needarise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas needarise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas
Government Code (the Texas open meetings laws).Government Code (the Texas open meetings laws).
In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable In compliance with the Americans with Disabilities Act, the City of La Porte
will provide for reasonable
accommodationsfor persons attending public meetings. To better serve attendees, requests should be received accommodationsfor persons attending public meetings. To better serve attendees,
requests should be received
24 hours prior to the meeting. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.24 hours prior to the meeting. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.
CERTIFICATIONCERTIFICATION
I certify that a copy of the October 10, 2016 , agenda of items to be considered by the City Council was posted on the City I certify that a copy of the October 10, 2016 , agenda of
items to be considered by the City Council was posted on the City
Hall bulletin board on October 4, 2016.Hall bulletin board on October 4, 2016.
Council Agenda Item Council Agenda Item
October 10, 2016 October 10, 2016
1.CALL TO ORDERCALL TO ORDER
2.INVOCATIONINVOCATIONThe invocation will be given by Thomas Park, Fairmont Park Church The invocation will be given by Thomas Park, Fairmont Park Church --Broadway.Broadway.
3.PLEDGE OF ALLEGIANCEPLEDGE OF ALLEGIANCEThe Pledge of Allegiance will be led by Councilmember Mike Clausen.The Pledge of Allegiance will be led by Councilmember Mike Clausen.
4.PUBLIC COMMENTSPUBLIC COMMENTS (Limited to five minutes per person.) (Limited to five minutes per person.)
****************************************************************** ******************************************************************
LOUIS RIGBY
CHUCK ENGELKEN
Mayor
Councilmember District 2
JOHN ZEMANEK
DARYL LEONARD
Councilmember At Large A
Councilmember District 3
DOTTIE KAMINSKI
KRISTIN MARTIN
Councilmember At Large B
Councilmember District 4
DANNY EARP
JAY MARTIN
Mayor Pro-Tem
Councilmember District 5
Councilmember District 1
MIKE CLAUSEN
Councilmember District 6
MINUTES OF THE REGULAR MEETING OF THE
CITY COUNCIL OF THE CITY OF LA PORTE
SEPTEMBER 26, 2016
The City Council of the City of La Porte met in a regular meeting on Monday, September 26, 2016, at the
City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 6:00 p.m. to consider the
following items of business:
1. Mayor Rigby called the meeting to order at 6:00 p.m. Members of Council present:
Councilmembers Engelken, Earp, J. Martin, K. Martin, Zemanek, Clausen, Leonard, and Kaminski.
Also present were City Secretary Patrice Fogarty, City Manager Corby Alexander, and Assistant
City Attorney Clark Askins.
2. INVOCATION – The invocation was given by Windell Gill, First Baptist Church.
3. PLEDGE OF ALLEGIANCE – The Pledge of Allegiance was led by Councilmember Danny Earp.
4. PRESENTATIONS, PROCLAMATIONS, and RECOGNITIONS (Limited to five minutes per
person.)
(a)Proclamation – Orange and White Day – Mayor Rigby
Mayor Rigby presented a proclamation to many representatives of La Porte Independent School
District in honor of Orange and White Day.
5. PUBLIC COMMENTS (Limited to five minutes per person.)
Chuck Rosa, 812 S. Virginia St., addressed Council regarding the structure of the court system in
the City and stated he believes the municipal court judges should be elected.
6. CONSENT AGENDA (All consent agenda items are considered routine by City Council and will be
enacted by one motion. There will be no separate discussion of these items unless a
Councilmember requests an item be removed and considered separately.)
(a)Consider approval or other action regarding minutes of meeting held on September 12,
2016 – P. Fogarty
(b)Consider approval or other action regarding an Ordinance appointing a Presiding Judge and
Alternate Judges for the La Porte Municipal Court of Record in the City of La Porte, Texas –
Mayor Rigby
(c)Consider approval or other authorizing the Mayor to execute an agreement between the La
Porte-Bayshore Chamber of Commerce and the City of La Porte for general promotional,
tourism advertising services and programs – C. Alexander
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Sept. 26, 2016, Council Meeting Minutes
(d)Consider approval or other action authorizing the City Manager to execute a Routine Airport
Maintenance Program (RAMP) grant agreement with Texas Department of Transportation
Aviation Division – S. Valiante
(e)Consider approval or other action awarding Bid # 16021 for State Highway Feeder Road
Water Line Project – S. Valiante
(f)Consider approval or other action authorizing the Mayor to execute an agreement between
Highway 321 Volunteer Fire Department and the City of La Porte for the transfer of dire
engine scheduled to be rotated out of service – T. Leach
(g)Consider approval or other action regarding an Ordinance amending Chapter 34,
“Environment,” of the Code of Ordinances of the City of La Porte, by amending Article II “Air
Pollution,” Division 2, “Smoking,” relating to the prohibition of smoking and use of vaping
products in certain public places within the city limits – R. Epting
(h)Consider approval or other action regarding an Ordinance amending Chapter 50 “Parks and
Recreation” of the Code of Ordinances of the City of La Porte by amending regulations
pertaining to use of tobacco and vaping products at City parks – E. Epting
Councilmember Engelken made a motion to approve the Consent Agenda items pursuant to staff
recommendations. Councilmember K. Martin seconded. MOTION PASSED UNANIMOUSLY 9/0.
Prior to council action, Assistant City Attorney Clark Askins read the caption of Ordinance 2016-3647: AN
ORDINANCE APPOINTING A PRESIDING JUDGE AND ALTERNATE JUDGE FOR THE MUNICIPAL COURT OF
RECORD IN THE CITY OF LA PORTE, TEXAS, FOR A TERM OF FOUR YEARS, EFFECTIVE OCTOBER 1, 2016, AND
EXPIRING SEPTEMBER 30, 2020, CONTAINING A SEVERABILITY CLAUSE; CONTAINING A REPEALING CLAUSE;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF.
Prior to council action, Assistant City Attorney Clark Askins read the caption of Ordinance 2016-3648:AN
ORDINANCE AMENDING CHAPTER 34 “ENVIRONMENT” OF THE CODE OF ORDINANCES OF THE CITY OF LA
PORT, BY AMENDING ARTICLE II “AIR POLLUTION,” DIVISION 2. “SMOKING,” RELATING TO THE PROHIBITION OF
SMOKING IN CERTAIN PUBLIC PLACES WITHIN THE CITY LIMITS; PROVIDING A REPEALING CLAUSE;
CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING
THAT ANY PERSON VIOLATING THE TERMS OF THIS ORDINANCE SHALL BE DEEMED GUILTY OF A
MISDEMEANOR AND UPON CONVICTION SHALL BE FINED IN A SUM NOT TO EXCEED TWO THOUSAND
DOLLARS; PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF; AND PROVIDING AN EFFECTIVE
DATE HEREOF.
Prior to council action, Assistant City Attorney Clark Askins read the caption of Ordinance 2016-3649:AN
ORDINANCE AMENDING CHAPTER 50 “ PARKS AND RECREATION OF THE CODE OF ORDINANCES OF THE CITY
OF LA PORTE BY AMENDING REGULATIONS PERTAINING TO USE OF TOBACCO AND VAPING PRODUCTS AT
CITY PARKS; PROVIDING A REPEALING CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW;
PROVIDING THAT ANY PERSON VIOLATING THE TERMS OF THIS ORDINANCE SHALL BE DEEMED GUILTY OF A
MISDEMEANOR AND UPON CONVICTION SHALL BE FINED IN A SUM NOT TO EXCEED FIVE HUNDRED
DOLLARS; PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF; AND PROVIDING AN EFFECTIVE
DATE HEREOF.
7. AUTHORIZATIONS/ORDINANCES
(a)Consider approval or other action regarding an Ordinance approving and adopting the City
of La Porte Texas’ Fiscal Year 2016-2017 Proposed Budget – M. Dolby (This item was
postponed at the September 12, 2016 City Council Meeting)
Finance Director Michael Dolby presented a summary.
Councilmember Zemanek made a motion to approve an Ordinance approving and adopting the City
of La Porte Texas’ Fiscal Year 2016-2017 Proposed Budget with additional changes regarding
fencing. Councilmember J. Martin seconded. MOTION PASSED UNANIMOUSLY 9/0.
Prior to council action, Assistant City Attorney Clark Askins read the caption of Ordinance 2016-3650: AN
ORDINANCE APPROVING AND ADOPTING THE BUDGET FOR THE CITY OF LA PORTE, TEXAS, FOR
Page2 of 5
Sept. 26, 2016, Council Meeting Minutes
THE PERIOD OF OCTOBER 1, 2016, THROUGH SEPTEMBER 30, 2017; FINDING THAT ALL THINGS
REQUISITE AND NECESSARY HAVE BEEN DONE IN PREPARATION AND PRESENTMENT OF SAID
BUDGET; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE
DATE HEREOF.
(b)Consider approval or other action regarding a Resolution adopting the 2016 Appraisal Roll
of the Harris County Appraisal District – M. Dolby (This item was postponed at the
September 12, 2016 City Council Meeting)
Finance Director Michael Dolby presented a summary.
Councilmember Engelken made a motion to approve the Resolution adopting the 2016 Appraisal
Roll. Councilmember Clausen seconded. MOTION PASSED UNANIMOUSLY 9/0.
(c)Consider approval or other action regarding an Ordinance establishing the tax rate for the
current tax year (2016) for a total tax rate of $0.71 per hundred dollar valuation – M. Dolby
(This item was postponed at the September 12, 2016 City Council Meeting)
Finance Director Michael Dolby presented a summary.
Councilmember Leonard made a motion to approve an Ordinance establishing the tax rate for the
current tax year (2016) for a total tax rate of $0.71 per hundred dollar valuation. Councilmember
Engelken seconded. MOTION PASSED UNANIMOUSLY 9/0.
Prior to council action, Assistant City Attorney Clark Askins read the caption of Ordinance 2016-3651: AN
ORDINANCE LEVYING TAXES UPON TAXABLE PROPERTY LOCATED WITHIN AND SUBJECT TO
TAXATION IN THE CITY OF LA PORTE, TEXAS; MAKING APPROPRIATIONS FOR SUPPORT,
MAINTENANCE AND IMPROVEMENTS OF THE CITY GOVERNMENT OF SAID CITY OF LA PORTE,
FINDING THAT ALL REQUIRED NOTICES HAVE BEEN PUBLISHED AND ALL REQUIRED HEARINGS
HELD; CONTAINING A REPEALING CLAUSE; CONTAINING A SEVERABILITY CLAUSE; FINDING
COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF.
(d)Consider approval or other action regarding an Ordinance repealing Ordinance No. 1583
and adopting an Ordinance establishing an Airport Advisory Board for the City of La Porte
Municipal Airport – P. Fogarty
City Secretary Patrice Fogarty presented a summary.
Councilmember Earp made a motion to approve an Ordinance repealing Ordinance No. 1583 and
adopting an Ordinance establishing an Airport Advisory Board for the City of La Porte Municipal
Airport. Councilmember K. Martin seconded.MOTION PASSED UNANIMOUSLY 9/0.
Prior to council action, Assistant City Attorney Clark Askins read the caption of Ordinance 2016-3652: AN
ORDINANCE REPEALING ORDINANCE NO. 1583, ADOPTED ON APRIL 25, 1988, WHICH ESTABLISHED
AN AIRPORT ADVISORY BOARD FOR THE CITY OF LA PORTE MUNICIPAL AIRPORT; HEREIN
ESTABLISHED AN AIRPORT ADVISORY BOARD FOR THE CITY OF LA PORTE; ESTABLISHING THE
POWERS AND DUTIES OF THE BOARD; APPOINTING MEMBERS TO THE BOARD; CONTAINING A
REPEALING CLAUSE; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE
OPEN MEEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF.
(e)Consider approval or other action regarding an Ordinance terminating the contract with
Perdue, Brandon, Fielder, Collins and Mott, LLP, for collection of delinquent municipal court
fees and fines, and allowing court staff the opportunity to provide in-house collections – C.
Haney
Court Administrator Cathy Haney presented a summary.
Councilmember Zemanek made a motion to approve an Ordinance terminating the contract with
Perdue, Brandon, Fielder, Collins and Mott, LLP, for collection of delinquent municipal court fees
Page3 of 5
Sept. 26, 2016, Council Meeting Minutes
and fines, and allowing court staff the opportunity to provide in-house collections. Councilmember
Leonard seconded.MOTION PASSED UNANIMOUSLY 9/0.
Prior to council action, Assistant City Attorney Clark Askins read the caption of Ordinance 2016-3653: AN
ORDINANCE PROVIDING FOR THE TERMINATION OF THE CITY OF LA PORTE’S CONTRACT WITH
PERDUE, BRANDON, FIELDER, COLLINS & MOTT, LLP FOR COLLECTION OF DELINQUENT
MUNICIPAL COURT FEES AND FINES, AND REPEALING ORDINANCE 3191, WHICH AUTHORIZED THE
IMPOSITION OF AN ADDITIONAL THIRTY PERCENT COLLECTION FEE ON ALL DEBTS AND
ACCOUNTS RECEIVABLE MORE THAN SIXTY DAYS DUE AND REFERRED TO A PRIVATE
COLLECTION FIRM, CONTAINING A REPEALING CLAUSE; CONTAINING A SEVERABBILITY CLAUSE;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE.
(f) Hearing to consider approvalor other action to revoke or suspend the existing massage
business permit for Jing Day Spa located at 1309 Fairmont Parkway #0 and authorizing City
Staff to nullify the accompanying zoning permit – T. Tietjens
Planning and Development Director Tim Tietjens presented a summary.
Charles Thompson, One Greenway Plaza, Suite 100, Houston, TX, attorney representing Jing Day
Spa, spoke in opposition of revoking or suspending the existing massage business permit for Jing
Day Spa located at 1309 Fairmont Parkway #0, and spoke in opposition to the nullification of the
accompanying zoning permit. Discussion ensued.
Councilmember Zemanek made a motion to revoke the existing massage business permit for Jing
Day Spa located at 1309 Fairmont Parkway #0 and authorize City Staff to nullify the accompanying
zoning permit. Councilmember Leonard seconded. MOTION PASSED UNANIMOUSLY 9/0.
(g)Consider approval or other action regarding approval or denial of Altom Transport’s
exception request to the City of La Porte’s current policy regarding use of industrial district
water and sewer service – T. Tietjens
Planning and Development Director Tim Tietjens and Assistant Fire Chief Donald Ladd presented a
summary.
Councilmember Engelken made a motion to deny Altom Transport’s exception request to the City of
La Porte’s current policy regarding use of industrial district water and sewer service.
Councilmember Zemanek seconded. MOTION PASSED 7/1. Councilmember Leonard had
previously filed a Conflict of Interest Affidavit on September 12, 2016, and did not participate in any
discussion or voting on this matter.
Ayes: Councilmembers J. Martin, Kaminski, Zemanek, K. Martin,
Engelken, Clausen and Earp
Nays: Mayor Rigby
Abstain: Councilmember Leonard
8. REPORTS
(a) Receive report of the La Porte Development Corporation Board – Councilmember Engelken
Councilmember Engelken provided a report of the La Porte Development Corporation Board
meeting held prior to the City Council Meeting.
9. ADMINISTRATIVE REPORTS
City Manager Corby Alexander reported this is the last City Council meeting for Planning and
Development Director Tim Tietjens and thanked him for his years of service and dedication and
hard work in the community.
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Sept. 26, 2016, Council Meeting Minutes
10. COUNCIL COMMENTS regarding matters appearing on the agenda; recognition of community
members, city employees, and upcoming events; inquiry of staff regarding specific factual
information.
Councilmember Earp congratulated Planning and Development Director Tim Tietjens and wished
him well in his future endeavors; wished Court Administrator Cathy Haney a Happy Birthday and
thanked Finance Director Michael Dolby for preparations of the budget; Councilmember Clausen
thanked Planning and Development Director Tim Tietjens for his years of service; thanked Council
for the Orange and White Day Proclamation and invited everyone to attend the La Porte
th
Independent School District’s 100 anniversary celebration; Councilmember J. Martin thanked
Planning and Development Director Tim Tietjens for his years of service and commented he
attended the La Porte Health and Safety Fair and it was well attended, and thanked Emergency
Management Coordinator Kristin Gauthier and team for their hard work; Councilmembers K. Martin
and Leonard thanked Planning and Development Director Tim Tietjens for his years of service and
th
congratulated La Porte Independent School District on its 100 anniversary celebration;
th
Councilmember Kaminski congratulated La Porte Independent School District on its 100
th
anniversary celebration; commented she will be celebrating her 50 high school reunion; thanked
Planning and Development Director Tim Tietjens for his years of service and wished Cathy Haney a
Happy Birthday; Councilmember Zemanek thanked Planning and Development Director Tim
Tietjens for his years of service; Councilmember Engelken thanked Planning and Development
Director Tim Tietjens for his years of service and wished him well in this future endeavors and
wished Cathy Haney a Happy Birthday; and Mayor Rigby thanked Planning and Development
Director Tim Tietjens for his years of service; wished City Planner Eric Ensey well on his move to
th
Colorado; commented he attended the Bay Area Partnership 40 Anniversary, and it was well
attended, with a great program; commented on how nice the Salute to Industry Banquet and Golf
Tournament was and thanked Michael Dolby, Finance Director, and Staff for preparing the budget.
11. ADJOURN - There being no further business, Councilmember Engelken made a motion to adjourn
the meeting at 7:08 p.m. Councilmember Leonard seconded. MOTION PASSED UNANIMOUSLY
9/0.
_______________________________
Patrice Fogarty, City Secretary
Passed and approved on October 10, 2016.
________________________________
Mayor Louis R. Rigby
Page5 of 5
Sept. 26, 2016, Council Meeting Minutes
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
October 10, 2016October 10, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
P. FogartyP. FogartySource of Funds:Source of Funds:
Requested By:Requested By:
City Secretary's OfficeCity Secretary's OfficeAccount Number:Account Number:
Department:Department:
Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
Other:Amount Requested:Amount Requested:
Budgeted Item:Budgeted Item:YESYESNONO
AttachmentsAttachments : :
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
City Council has traditionally held one meeting per month during the months of November and City Council has traditionally held one meeting per month during the months of November and
December. Staff proposes for CouncilDecember. Staff proposes for Councils consideration the following changes to the regular meetings s consideration the following changes to the
regular meetings
schedule to accommodate the upcoming holidays: schedule to accommodate the upcoming holidays:
Conduct regular meeting on November 14, 2016Conduct regular meeting on November 14, 2016
Cancel the November 28, 2016, meeting due to the Thanksgiving holidaysCancel the November 28, 2016, meeting due to the Thanksgiving holidays
Conduct regular meeting on December 12, 2016Conduct regular meeting on December 12, 2016
Cancel the December 26, 2016, meeting due to the Christmas holidaysCancel the December 26, 2016, meeting due to the Christmas holidays
Should a need arise to conduct official business, a special called meeting would be scheduled.Should a need arise to conduct official business, a special called meeting would be scheduled.Should
a need arise to conduct official business, a special called meeting would be scheduled.Should a need arise to conduct official business, a special called meeting would be scheduled.
Action Required of Council:Action Required of Council:
Consider approval or other action of amended meeting dates as follows:Consider approval or other action of amended meeting dates as follows:
Cancel the November 28, 2016, meeting due to the Thanksgiving holidaysCancel the November 28, 2016, meeting due to the Thanksgiving holidays
Cancel the December 26, 2016, meeting due to the Christmas holidaysCancel the December 26, 2016, meeting due to the Christmas holidays
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
October 10, 2016October 10, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
Traci LeachTraci LeachSource of Funds:Source of Funds:
Requested By:Requested By:
Planning & DevelopmentPlanning & DevelopmentAccount Number:Account Number:
Department:Department:
Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
Other:Amount Requested:Amount Requested:
Budgeted Item:Budgeted Item:YESYESNONO
AttachmentsAttachments : :
1.OrdinanceOrdinance
2.DeedDeed
3.Appraisal SummaryAppraisal Summary
4.CenterPoint Energy ResponseCenterPoint Energy Response
5.AT&T ResponseAT&T Response
6.Comcast ReponseComcast Reponse
7.Area MapArea Map
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The City has received and processed an application from Mr. Ryan Schulman/La Porte Mini Storage to The City has received and processed an application from Mr. Ryan Schulman/La Porte
Mini Storage to
vacate, abandon and close the east/west alley in Block 185, Town of La Porte. Staffvacate, abandon and close the east/west alley in Block 185, Town of La Porte. Staffs review of
the s review of the
application has determined no City or franchised utilities exist within the closing area. application has determined no City or franchised utilities exist within the closing area.
In accordance with Sections 62In accordance with Sections 62--32 of the City32 of the Citys Code of Ordinances, an appraisal of the subject alley s Code of Ordinances, an appraisal
of the subject alley
has been obtained by the City in order to establish fair market value. The appraisal report has has been obtained by the City in order to establish fair market value. The appraisal
report has
established a value of $2.00 per square foot for the subject rightestablished a value of $2.00 per square foot for the subject right--ofof--way. Closing fees in the amount of way.
Closing fees in the amount of
$6,384.00 have been paid by the applicant and placed in escrow pending final consideration and action $6,384.00 have been paid by the applicant and placed in escrow pending final consideration
and action $6,384.00 have been paid by the applicant and placed in escrow pending final consideration and action $6,384.00 have been paid by the applicant and placed in escrow pending
final consideration and action
by Council.
Action Required of Council:Action Required of Council:
Consider approval of an ordinance or other action vacating, abandoning, and Consider approval of an ordinance or other action vacating, abandoning, and closing the east/west alley closing
the east/west alley
in Block 185, Town of La Porte, and authorize the City Manager to execute a deed to the applicant for in Block 185, Town of La Porte, and authorize the City Manager to execute a deed
to the applicant for
the subject alley.the subject alley.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
DEED WITHOUT WARRANTY
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY
REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS
INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
Date: October _____, 2016
Grantor: City of La Porte, Texas, a municipal corporation
Mailing Address: 604 West Fairmont Parkway, La Porte, TX 77571
Grantee: La Porte Mini Storage, LLC
Mailing Address: 411 S. Utah St.
La Porte, Texas 77571
Consideration: Ten and No/100 Dollars ($10.00) cash
and other good and valuable considerations
Property (including any improvements):
Being a 4,256 square foot tract of land out of Block 185, Town of La Porte, being
more particularly described by metes and bounds as follows:
BEGINNING at the southwesterly corner of Lot 6, Block 185, Town of La Porte,
said point also being located on the easternmost right-of-way line of North Utah
Street (60’ wide);
THENCE in a northeasterly direction along the northerly line of the east/west alley
in Block 185, Town of La Porte, a distance of 266 feet to its intersection with the
westerly right-of-way line of the North Idaho Street Right-of-Way, said point also
being located at the southeasterly corner of Lot 21, Block 185, Town of La Porte;
THENCE in a southeasterly direction along the westerly right-of-way line of North
Idaho Street, a distance of 16 feet to its intersection with the southerly line of the
east/west alley in Block 185, Town of La Porte, said point being located at the
northeasterly corner of Lot 22, Block 185, Town of La Porte;
THENCE in a southwesterly direction along the southerly line of the east/west alley
in Block 185, Town of La Porte, a distance of 266 feet to its intersection with the
easterly right-of-way of North Utah Street, said point also being located at the
northwesterly corner of Lot 5, Block 185, Town of La Porte;
THENCE in a northwesterly direction along the easterly right-of-way line of North
Utah Street, a distance of 16 feet to the POINT OF BEGINNING of the herein
described tract, which was vacated, abandoned and closed by City of La Porte
Ordinance No. 2016-_________, approved by the City Council of the City of La
Porte, Texas on the ____day of October, 2016.
Reservations from and Exception to Conveyance and Warranty: This conveyance is made subject
to all and singular the restrictions, conditions, oil, gas, and other mineral reservations, easements,
and covenants, if any, applicable to and enforceable against the above described property as reflected
by the records of the county clerk of the aforesaid county.
Grantor for the consideration and subject to the reservations from and exceptions to conveyance,
conveys to Grantee the property without express or implied warranty, and all warranties that might
arise by common law and the warranties in §5.023 of the Texas Property Code (or its successor) are
excluded.
Attest: City of La Porte, Texas
__________________________________ By:_________________________________
Patrice Fogarty Corby D. Alexander
City Secretary City Manager
Approved:
____________________________
Clark T. Askins
Assistant City Attorney
STATE OF TEXAS §
§
COUNTY OF HARRIS §
This instrument was acknowledged before me on _____ day of ______________, 2016, by Corby
D. Alexander, City Manager of the City of La Porte, Texas, a municipal corporation.
____________________________________
Notary Public, State of Texas
R.C. Chuoke & Associates, Inc.
Appraisers & Consultants
P.O. Box 1447 Office- 281-338-9633
League City, Texas 77574 Fax- 281-338-9533
August 10, 2016
City of La Porte
P.O. Box 1115
La Porte, Texas 77572
RE: Restricted Appraisal regarding the estimated Market Value of the
alley located in Block 185 in the Town of La Porte, Harris County,
Texas.
Dear Sirs:
In accordance with your request, I have inspected the following described
property for the purpose of estimating the Market Value following described
property as of the date of this Restricted Appraisal. As per our agreement, the
data and analysis is presented in a Restricted Appraisal format and this
format is not intended to contain the full analysis.
BRIEF LEGAL DESCRIPTION OF PROPERTY
Known as the entire alley in Block 185 in the Town of La Porte, Harris County,
Texas Harris County, Texas. (See site plan in addenda).
I hereby certify that I have personally inspected the property described via a
street inspection and that all data gathered by my investigation is from
sources believed reliable and true. In preparing this Restricted Appraisal, a
study of comparable sales and other related market data was performed.
It should clearly be understood that this letter only constitutes only a
statement of the final value and that does not presume to be the complete
analysis of the subject property nor a complete appraisal format and is subject
to the preparation of a detailed appraisal report.
.....Page 2 Continued......
The market values in the subject neighborhood appear to vary generally from
+-$1.00 PSF to over $4.00 PSF for tracts generally similar to the subject
property with locations that range from primary to secondary type roadways.
The area has general access public utilities. The subject site appears to be
generally flat and level. The subject property is not located in the 100 year
flood plain. The Highest and Best Use of the subject property is determined to
be for use as an alleyways and street right of ways or for use by adjacent
property owners due to its configuration. Adjacent property uses are
commercial uses and vacant land in nature. The immediately surrounding
property of the subject alley is currently used as part of a storage facility. The
client and intended user of this appraisal is the City of La Porte only. The
intended use is to estimate the current market value of the subject property of
this analysis as described above for use by the client in right of way
abandonment procedures. There has been no transfer of the subject property
noted for the past 36 months per appraisal district records. The effective date
of the appraisal is August 5, 2016. The effective date of the report is August
10, 2016. The estimated exposure time is up to 24 months.
After a review of the comparable sales it is my opinion the estimated unit
value range of between $1.00 PSF to $4.00 PSF would be placed on the
subject property with a mid-range value of $2.00 PSF being indicated for the
subject property before any discounting. Therefore the unit market value of
the subject tract is estimated at $2.00 PSF which is based on 100% fee
simple ownership with no discounting applied.
Respectfully Submitted,
Chris Chuoke, President
R.C. CHUOKE & ASSOCIATES , INC.
BLOCK 185, LA PORTE
413
414
415
186
185
92
184
93
183
195
1 inch = 100 feet
196
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
October 10, 2016October 10, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
GrantGrant
Ken AdcoxKen AdcoxSource of Funds:Source of Funds:
Requested By:Requested By:
0325253521102003252535211020
PolicePoliceAccount Number:Account Number:
Department:Department:
$6,000.00$6,000.00
Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
$5,000.00$5,000.00
Other:Amount Requested:Amount Requested:
Budgeted Item:Budgeted Item:YESYESNONO
AttachmentsAttachments : :
1.Regional DWI Task Force HGAC Regional DWI Task Force HGAC
AgreementAgreement
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The La Porte Police Department has once again been invited to participate in the Regional DWI Task The La Porte Police Department has once again been invited to participate in the Regional
DWI Task
Force which is administered by HoustonForce which is administered by Houston--Galveston Area Council (HGAC) and is awarded by TXDOT. Galveston Area Council (HGAC) and is awarded by
TXDOT.
This grant will be utilized for specific DWI enforcement during designated dates. This yearThis grant will be utilized for specific DWI enforcement during designated dates. This years
grant will s grant will
allow the City to be reimbursed for expenses up to a maximum of five thousand dollars ($5,000) in allow the City to be reimbursed for expenses up to a maximum of five thousand dollars
($5,000) in
overtime costs, with City contributions for employee benefits, administrative and vehicle usage costs. overtime costs, with City contributions for employee benefits, administrative
and vehicle usage costs.
Action Required of Council:Action Required of Council:
Consider approval or other action authorizing City Manager to sign agreement for participation in the Consider approval or other action authorizing City Manager to sign agreement for
participation in the
Regional DWI Task Force.Regional DWI Task Force.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
Contract #
HOUSTON-GALVESTON AREA COUNCIL
GENERAL PROVISIONS
INTERGOVERNMENTAL AGREEMENT
This Intergovernmental Agreement is made and entered into this 1st day of October,2016 , by and between the
Houston-Galveston Area Council, hereinafter referred to as H-GAC, having its principal place of business at 3555
Timmons Lane, Suite 120, Houston, Texas 77027 and The City of La Porte, hereinafter referred to as the
Contractor, having its principal place of business at 604 Fairmont Parkway, La Porte, TX 77571.
WITNESSETH:
WHEREAS, H-GAC hereby engages the Contractor to perform certain services in accordance with the specifications
of the Agreement; and
WHEREAS, the Contractor has agreed to perform such services in accordance with the specifications of the
Agreement;
NOW, THEREFORE, H-GAC and the Contractor do hereby agree as follows:
ARTICLE 1 LEGAL AUTHORITY
The Contractor warrants and assures H-GAC that it possesses adequate legal authority to enter into this Agreement. The
Contractor's governing body, where applicable, has authorized the signatory official(s) to enter into this Agreement and
bind the Contractor to the terms of this Agreement and any subsequent amendments hereto.
ARTICLE 2 APPLICABLE LAWS
The Contractor agrees to conduct all activities under this Agreement in accordance with all applicable rules,
regulations, directives, standards, ordinances and laws in effect or promulgated during the term of this Agreement. Such
standards and laws shall include, to the extent applicable, the Uniform Grant and Contract Management Standards
(“UGMS”) promulgated by the State of Texas and the state and federal statutes referenced therein.
ARTICLE 3 INDEPENDENT CONTRACTOR
The execution of this Agreement and the rendering of services prescribed by this Agreement do not change the
independent status of H-GAC or the Contractor. No provision of this Agreement or act of H-GAC in performance of
the Agreement shall be construed as making the Contractor the agent, servant or employee of H-GAC, the State of
Texas or the United States Government. Employees of the Contractor are subject to the exclusive control and
supervision of the Contractor. The Contractor is solely responsible for employee payrolls and claims arising therefrom.
The Contractor shall notify H-GAC of the threat of lawsuit or of any actual suit filed against the Contractor pertaining
to this Agreement or which would adversely affect the contractor’s ability to perform services under this Agreement.
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ARTICLE 4 WHOLE AGREEMENT
The General Provisions, Special Provisions and Attachments, as provided herein, constitute the complete agreement
between the parties hereto, and supersede any and all oral and written agreements between the parties relating to matters
herein. Except as otherwise provided herein, this Agreement cannot be modified without written consent of the parties.
ARTICLE 5 SCOPE OF SERVICES
The services to be performed by the Contractor are outlined in the Special Provisions of this Agreement.
ARTICLE 6 PERFORMANCE PERIOD
This Agreement shall be performed during the period which begins October 1, 2016 and ends September 30, 2017.
The work under this Agreement shall begin immediately following a formal Notice to Proceed.
ARTICLE 7 REPORTING REQUIREMENTS
Reporting requirements are set forth in the Special Provisions of this Agreement. If the Contractor fails to submit to
H-GAC in a timely and satisfactory manner any report required by this Agreement, or otherwise fails to satisfactorily
render performances hereunder, H-GAC may withhold payments otherwise due and owing the Contractor hereunder. If
H-GAC withholds such payments, it shall notify the Contractor of its decision and the reasons therefor. Payments
withheld pursuant to this Article may be held by H-GAC until such time as the delinquent obligations for which funds
are withheld are fulfilled by the Contractor. The Contractor's failure to timely submit any report may also be
considered cause for termination of this Agreement.
ARTICLE 8 PAYMENTS
The Contractor agrees that payments are predicated upon properly documented and verified proof of performance
delivered and costs incurred by the Contractor in accordance with the terms of this Agreement and shall be paid in
accordance with the Compensation Schedule in the Special Provisions.
ARTICLE 9 NON FUNDING CLAUSE
Each payment obligation of H-GAC created by this Agreement is conditioned upon the availability of state or federal
funds appropriated or allocated for the payment of such obligations. H-GAC shall not be otherwise obligated or liable
for any future payments due or for any damages as a result of interruption of payment or termination under this Article.
ARTICLE 10 INSURANCE
The Contractor shall maintain insurance coverage for work performed or services rendered under this Agreement as
specified in the Special Provisions.
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ARTICLE 11 REPAYMENTS
The Contractor understands and agrees that it shall be liable to repay and shall repay upon demand to H-GAC any
amounts determined by H-GAC, its independent auditors, or any agency of state or federal government to have been
paid in violation of the terms of this Agreement.
ARTICLE 12 SUBCONTRACTS
Except as may be set forth in the Special Provisions, the Contractor agrees not to subcontract, assign, transfer, convey,
sublet or otherwise dispose of this Agreement or any right, title, obligation or interest it may have therein to any third
party without prior written approval of H-GAC.
The Contractor acknowledges that H-GAC is not liable to any subcontractor(s) of the Contractor.
The Contractor shall ensure that the performance rendered under all subcontracts shall result in compliance with all the
terms and provisions of this Agreement as if the performance rendered was rendered by the Contractor.
ARTICLE 13 AUDIT
As a recipient of state or federal assistance through this Agreement, the Contractor acknowledges that it is subject to the
Single Audit Act of 1996, P.L. 98-502, (hereinafter referred to as "Audit Act"), OMB Circular No. A-133, and the State
of Texas Single Audit Circular incorporated in UGMS.
The Contractor shall have an audit made in accordance with the Single Audit, requirements of the most recently
adopted UGMS and OMB Circular A-133 for any of its fiscal years in which Contractor expends more than $500,000
in state or federal financial assistance.
The Contractor will provide H-GAC a copy of the single audit, including management letter and reporting package
required by federal and state rules within 30 days after receipt of the auditor’s report, or nine months after the end of the
audit period.
H-GAC reserves the right to conduct or cause to be conducted an independent audit of all funds received under this
Agreement which may be performed by the local government audit staff, a certified public accountant firm, or other
auditors as designated by the H-GAC. Such audit will be conducted in accordance with State law, regulations, and
policy, and generally accepted auditing standards and established procedures and guidelines of the reviewing or audit
agency(ies).
The Contractor understands and agrees that the Contractor shall be liable to the H-GAC for any costs disallowed or
overpayment as a result of audit or inspection of records kept by the Contractor on work performed under this
Agreement.
ARTICLE 14 EXAMINATION OF RECORDS
The Contractor shall maintain during the course of the work, complete and accurate records of all of the Contractor's
costs and documentation of items which are chargeable to H-GAC under this Agreement. H-GAC, through its staff or
designated public accounting firm, the State of Texas and the United State Government, shall have the right at any
reasonable time to inspect, copy and audit those records on or off the premises by authorized representatives of its own
or any public accounting firm selected by it. The right of access to records is not limited to the required retention
period, but shall last as long as the records are retained. Failure to provide access to records may be cause for
termination of the Agreement. The records to be thus maintained and retained by the Contractor shall include (without
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Contract #
limitation): (1) personnel and payroll records, including social security numbers and labor classifications, accounting
for total time distribution of the Contractor's employees working full or part time on the work, as well as cancelled
payroll checks, signed receipts for payroll payments in cash, or other evidence of disbursement of payroll payments; (2)
invoices for purchases, receiving and issuing documents, and all other unit inventory records for the Contractor's stocks
or capital items; and (3) paid invoices and cancelled checks for materials purchased and for subcontractors’ and any
other third parties' charges.
The Contractor further agrees to include in all its subcontracts permitted pursuant to Article 12 hereof, a provision to
the effect that the subcontractor agrees that H-GAC and its duly authorized representatives shall, until the expiration of
four (4) years after final payment under the subcontract or until all audit findings have been resolved, have access to
and the right to examine and copy any directly pertinent books, documents, papers, invoices and records of such
subcontractor involving transactions relating to the subcontract.
ARTICLE 15 RETENTION OF RECORDS
The Contractor shall maintain all records pertinent to this Agreement, including but not limited to those records
enumerated in Article 14, and all other financial, statistical, property, participant records, and supporting documentation
for a period of no less than four (4) calendar years from the later of the date of acceptance of the final contract closeout
or the date of the final audit required under Article 13 of this Agreement. If any litigation, claim, negotiation, audit or
other action involving the records has been started before the expiration of the retention period, the records shall be
retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular
four (4) year period, whichever is later.
ARTICLE 16 CHANGES AND AMENDMENTS
Any alterations, additions, or deletions to the terms of this Agreement which are required by changes in federal law or
regulations are automatically incorporated into this Agreement without written amendment hereto, and shall become
effective on the date designated by such law or regulation; provided if the Contractor may not legally comply with such
change, the contractor may terminate its participation herein as authorized by Article 17.
H-GAC may, from time to time, require changes in the scope of the services of the Contractor to be performed
hereunder. Such changes that are mutually agreed upon by and between H-GAC and the Contractor in writing shall
be incorporated into this Agreement.
ARTICLE 17 TERMINATION PROCEDURES
The Contractor acknowledges that this Agreement may be terminated under the following circumstances:
A. Convenience
H-GAC may terminate this Agreement in whole or in part without cause at any time by written notice by
certified mail to the Contractor whenever for any reason H-GAC determines that such termination is in the
best interest of H-GAC. Upon receipt of notice of termination, all services hereunder of the Contractor and its
employees and subcontractors shall cease to the extent specified in the notice of termination. In the event of
termination in whole, the Contractor shall prepare a final invoice within 30 day days of such termination
reflecting the services actually performed which have not appeared on any prior invoice, such invoice shall be
satisfactory to the Executive Director or his designee. H-GAC agrees to pay the Contractor, in accordance
with the terms of the Agreement, for services actually performed and accruing to the benefit of H-GAC, less
payment of any compensation previously paid.
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Contract #
The Contractor may cancel or terminate this Agreement upon thirty (30) days written notice by certified mail
to H-GAC. The Contractor may not give notice of cancellation after it has received notice of default from H-
GAC. In the event of such termination prior to completion of the Agreement provided for herein, H-GAC
agrees to pay services herein specified on a prorated basis for work actually performed and invoiced in
accordance with the terms of this Agreement, less payment of any compensation previously paid.
B. Default
H-GAC may, by written notice of default to the Contractor, terminate the whole or any part of the Agreement
in any one of the following circumstances:
(1) If the Contractor fails to perform the services herein specified within the time specified herein or any
extension thereof; or
(2) If the Contractor fails to perform any of the other provisions of this Agreement for any reason
whatsoever, or so fails to make progress or otherwise violates the Agreement that completion of the
services herein specified within the agreement term is significantly endangered, and in either of these
two instances does not cure such failure within a period of ten (10) days (or such longer period of
time as may be authorized by H-GAC in writing) after receiving written notice by certified mail of
default from H-GAC.
In the event of such termination, all services of the Contractor and its employees and subcontractors shall
cease and the Contractor shall prepare a final invoice reflecting the services actually performed pursuant to the
Agreement which have not appeared on any prior invoice. Such invoice must be satisfactory to the Executive
Director of H-GAC or his designee. H-GAC agrees to pay the Contractor, in accordance with the terms of this
Agreement, for services actually performed and accruing to the benefit of H-GAC as reflected on said invoice,
less payment of any compensation previously paid and less any costs or damages incurred by H-GAC as a
result of such default, including incremental costs that H-GAC will incur to have the Agreement completed by
a person other than the contractor.
ARTICLE 18 SEVERABILITY
All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such
determination shall not affect any other term of this Agreement, which shall continue in full force and effect.
ARTICLE 19 COPYRIGHTS
The state or federal awarding agency and H-GAC reserve a royalty-free, nonexclusive, and irrevocable license to
reproduce, publish or otherwise use, and to authorize others to use, for state or federal government or H-GAC purposes:
(a) The copyright of all maps, data, reports, research or other work developed under this Agreement; and
(b) Any copyrights or rights of use to copyrighted material which the Contractor purchases with funding
under this Agreement. All such data and material shall be furnished to H-GAC on request.
ARTICLE 20 OWNERSHIP OF MATERIALS
Except as may be specified in the Special Provisions, all data, reports, research, etc., developed by the Contractor as a
part of its work under this Agreement shall become the property of the H-GAC upon completion of this Agreement, or
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Contract #
in the event of termination or cancellation hereof, at the time of payment under ARTICLE 8 for work performed. All
such data and material shall be furnished to H-GAC on request.
ARTICLE 21 FORCE MAJEURE
To the extent that either party to this Agreement shall be wholly or partially prevented from the performance within the
term specified of any obligation or duty placed on such party by reason of or through strikes, stoppage of labor, riot,
fire, flood, acts of war, insurrection, accident, order of any court, act of God, or specific cause reasonably beyond the
party’s control and not attributable to its neglect or nonfeasance, in such event, the time for the performance of such
obligation or duty shall be suspended until such disability to perform is removed. Determination of force majeure shall
rest solely with the H-GAC.
ARTICLE 22 NON-DISCRIMINATION AND EQUAL OPPORTUNITY
The Contractor agrees to comply with all federal statutes relating to nondiscrimination. These include but are not
limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of race,
color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§ 1681-1683, and
1685-1686), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as
amended (29 U.S.C. § 794), which prohibits discrimination on the basis of handicaps and the Americans with
Disabilities Act of 1990; (d) the Age Discrimination Act of 1974, as amended (42 U.S.C. §§ 6101-6107), which
prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as
amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and
Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to the
nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§ 523 and 527 of the Public Health Service Act of
1912 (42 U.S.C. 290 dd-3 and 290 ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient
records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. § 3601 et seq.), as amended, relating to
nondiscrimination in the sale, rental or financing of housing; (I) any other nondiscrimination provisions in any specific
statute(s) applicable to any Federal funding for this Agreement; and (j) the requirements of any other nondiscrimination
statute(s) which may apply to this Agreement.
ARTICLE 23 CONFLICT OF INTEREST
No officer, member or employee of the Contractor or subcontractors, no member of the governing body of the
Contractor, and no other public officials of the Contractor who exercise any functions or responsibilities in the review
or approval of this Agreement, shall participate in any decision relating to this Agreement which affects his or her
personal interest, or shall have any personal or pecuniary interest, direct or indirect, in this Agreement.
ARTICLE 24 POLITICAL ACTIVITY; LOBBYING
No funds provided under this Agreement may be used in any way to attempt to influence in any manner a member of
Congress to favor or oppose any legislation or appropriation by Congress, or for lobbying with state or local legislators.
The Contractor, if a recipient of federal assistance exceeding $100,000 through an H-GAC subcontract, will comply
with section 319, Public Law 101-121 (31 U.S.C. 1352).
ARTICLE 25 SECTARIAN INVOLVEMENT PROHIBITED
The Contractor shall ensure that no funds under this Agreement are used, either directly or indirectly, in the support of
any religious or anti-religious activity, worship, or instruction.
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ARTICLE 26 CRIMINAL PROVISIONS AND SANCTIONS
The Contractor agrees that it will perform the Agreement activities in conformance with safeguards against fraud and
abuse as set forth by the H-GAC, the State of Texas, and the acts and regulations of the funding entity. The Contractor
agrees to promptly notify H-GAC of suspected fraud, abuse or other criminal activity through the filing of a written
report within twenty-four (24) hours of knowledge thereof and to notify H-GAC of any accident or incident requiring
medical attention arising from its activities under this Agreement within twenty-four (24) hours of such occurrence.
Theft or willful damage to property on loan to the Contractor from H-GAC, if any, shall be reported to local law
enforcement agencies and H-GAC within two (2) hours of discovery of any such act.
The Contractor further agrees to cooperate fully with H-GAC, local law enforcement agencies, the State of Texas, the
Federal Bureau of Investigation and any other duly authorized investigative unit in carrying out a full investigation of
all such incidents.
ARTICLE 27 TITLES NOT RESTRICTIVE
The titles assigned to the various Articles of this Agreement are for convenience only. Titles shall not be considered
restrictive of the subject matter of any Article, or part of this Agreement.
ARTICLE 28 ACKNOWLEDGEMENT OF FUNDING SOURCE
The Contractor shall give credit to Federal Transit Administration (FTA), Federal Highway Administration (FHWA),
Texas Department of Transportation (TxDOT), and H-GAC as the funding source for this Agreement in all oral
presentations, written documents, publicity, and advertisements regarding any of the Contractor’s activities which arise
from this Agreement.
ARTICLE 29 DISPUTES
Any and all disputes concerning questions of fact or of law arising under this Agreement which are not disposed of by
agreement shall be decided by the Executive Director of H-GAC or his designee, who shall reduce his decision to
writing and provide notice thereof to the Contractor. The decision of the Executive Director or his designee shall be
final and conclusive unless, within thirty (30) days from the date of receipt of such copy, the Contractor requests a
rehearing from the Executive Director of H-GAC. In connection with any rehearing under this Article, the Contractor
shall be afforded an opportunity to be heard and offer evidence in support of its position. The decision of the Executive
Director after any such rehearing shall be final and conclusive. The Contractor may, if it elects to do so, appeal the
final and conclusive decision of the Executive Director to a court of competent jurisdiction. Pending final decision of a
dispute hereunder, the Contractor shall proceed diligently with the performance of the Agreement and in accordance
with H-GAC's final decision.
ARTICLE 30 GOVERNING LAW; VENUE
This Agreement shall be governed by the laws of the State of Texas. Venue and jurisdiction of any suit or cause of
action arising under or in connection with the Agreement shall lie exclusively in Harris County, Texas, unless the laws
of the State of Texas specifically establish venue in some other county.
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ARTICLE 31 ORDER OF PRIORITY
In the case of any conflict between the General Provision, the Special Provisions, and Attachments to this Agreement,
the following order of priority shall be utilized: Special Provision, General Provisions, and Attachments.
H-GAC and the Contractor have executed the Agreement as of the date first written above.
Jack Steele, Executive Director Corby Alexander
Houston-Galveston Area Council City Manager
Date Date
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SPECIAL PROVISIONS
INDEX PAGE
1. Compensation 1
2. Contractor Personnel 1
3. Inspection of Work 2
4. Proprietary Rights 2
5. Insurance 2
6. Progress Reports 2
7. Final Report 2
8. Disadvantaged Business Enterprises 2
9. Title VI Assurance 3
10. Compliance with Laws 4
11. Energy Policy 4
12. Clean Air Act and Federal Water Pollution Control
Act Requirements 4
13. Debarred Bidders 4
14. Drug-Free Workplace 4
1. COMPENSATION
The Contractor shall be reimbursed by H-GAC for authorized costs in accordance with 48 CFR, Ch 1, Part 31 incurred
in performance of the work set out in this contract as specifically described in Attachment A. Detailed records must be
maintained to show actual time devoted and costs incurred.
The Contractor will submit a final invoice within 30 days after the completion of work. Invoices submitted after this
time will not be honored unless prior arrangements are made and approved in writing by H-GAC.
A. Maximum Compensation. The total reimbursement under this contract shall not exceed Five Thousand
Dollars ($5,000 ).
B. Travel Expenses and Subsistence. The Contractor shall be paid the actual cost incurred by personnel working
on this project for travel expenses and subsistence that are certified as being correct and necessary for and
directly associated with performance of this Contract. In-state travel shall be reimbursed at rates established
by the State Comptrollers Office: (http://www.cpa.state.tx.us/). Transportation costs shall be reimbursed for
Coach or comparable airfare or for private automobile, whichever is less. Out-of-state travel shall be
reimbursed not to exceed current Federal Per Diem rates as allowed by 41 CFR Part 301-7 and Chapter 301
Federal Travel Regulations; Maximum Per Diem rates; Final Rule. Rental vehicle expenses shall be
reimbursed at actual cost of compact car or smaller, unless approved by H-GAC in advance. (Note: Itemized
receipt(s) for food is necessary)
C. Method of Payment. H-GAC will reimburse the Contractor for services rendered on the basis of allowable
costs up to the amount specified in Section 1, Part A above. Reimbursement shall be made monthly within
forty-five (45) days after the receipt of the Contractor's invoice and support documentation, except as
stipulated in paragraph E below. An invoice must arrive each month whether or not any expenses have
occurred. In addition to documentation for travel and equipment each invoice must be accompanied by a
progress report as described in Section 6, Progress Reports, below.
D. Billings. The Contractor shall submit a Request for Reimbursement reflecting the overtime worked within
eighteen (18) days of an enforcement period. The Request for Reimbursement shall include the following set
of reports, where applicable, reflecting the enforcement activities conducted as part of the Regional DWI Task
Force grant:
i.Agency Enforcement Summary Sheet (which will serve as the Agency’s Request for
Reimbursement);
ii.Officers’ Shift Reports;
iii.Official Timesheets and Overtime Slips from law enforcement agency;
iv.Shift Reports from agency computer-aided dispatch (CAD) systems reflecting time worked;
v.Financial printouts from agency accounting system;
vi.List of public events attended where DWI and the DWI Task Force were discussed
E. Matching Fund Certification. The Contractor shall record and report benefits and taxes that have been paid on
the overtime pay accrued by participating staff during the enforcement period, as well as the number of miles
driven by participating staff in the vehicle used for the enforcement activities. The rates for these items are as
follows:
page 1 of 5
H-GAC--10/98; 3/05--SpecProvIA
i.Retirement Match: 17.63 percent of wages - $881.50
ii.Social Security Tax: 6.2 percent of wages - $310.00
iii.Medicare Tax: 1.45 percent of wages - $72.50
iv.Workers’ Compensation: 1.71 percent of wages - $85.50
v.Vehicle Mileage Rate: $0.54 per mile (adjusted based on Comptroller’s Rate)
These rates may be subject to change based on legislative or local governmental action. H-GAC must be
notified of any change in the above-listed rates made by the Contractor.
2. CONTRACTOR PERSONNEL
The Contractor agrees to assign qualified staff members including a Project Manager who shall be responsible for the
task administration and work performance. The Project Manager shall be Bennie Boles. In the event the Project
Manager becomes no longer available to this project, a substitution of like personnel with similar qualifications can
only be made after obtaining prior written approval of H-GAC.
3. INSPECTION OF WORK
H-GAC shall have the right to review and inspect the progress of the work described herein at all times.
4. PROPRIETARY RIGHTS
Contractor agrees not to release data or information about the results of the project to any person outside of H-GAC
without first obtaining written authorization to release such information from H-GAC. Contractor shall be permitted to
list H-GAC as a client for marketing purposes.
5. INSURANCE
H-GAC acknowledges that Contractor is governed by the Texas Tort Claims Act, which sets forth certain
limitations and restrictions on the types of liability and the types of insurance coverage that can be required of
Contractor. The Contractor represents to H-GAC that it either has adequate General Liability and Property
insurance policies in place or sufficient resources to self-insure for all claims for which it may be responsible under
the Texas Tort Claims Act. The Contractor further represents to H-GAC that it either has workers’ compensation
insurance in the amount required by statute or is entitled to self-insure for workers compensation coverage under
Texas law and has elected to do so.
6. ACTIVITY REPORTS
The Contractor shall submit to H-GAC activity reports as described in Section One, Parts D and E above. The reports
shall reflect enforcement activities accomplished during the previous enforcement period. These reports will include,
but not be limited to the list of items required under Section One, Part D.
page 2 of 5
H-GAC--10/98; 3/05--SpecProvIA
7. DISADVANTAGED BUSINESS ENTERPRISES
(1) Policy. It is the policy of the Department of Transportation (DOT) that disadvantaged business enterprises as
defined in 49 CFR Part 26 shall have the maximum opportunity to participate in the performance of contracts
financed in whole or part with Federal funds under this Agreement. Consequently, the DBE requirements of
49 CFR Part 26 apply to this Agreement.
(2) DBE Obligation. The Contractor agrees to ensure that disadvantaged business enterprises as defined in 49
CFR Part 26 have the maximum opportunity to participate in the performance of contracts and subcontracts
financed in whole or in part with Federal funds provided under this Agreement. In this regard the Contractor
shall take all necessary and reasonable steps in accordance with 49 CFR Part 26 to ensure that disadvantaged
business enterprises have the maximum opportunity to compete for and perform contracts. The Contractor
shall not discriminate on the basis of race, creed, color, national origin, age, or sex in the award and
performance of DOT-assisted contracts.
H-GAC has established a goal of 22% DBE participation in its FTA third party contracting opportunities.
There, any contract issued under this Agreement will carry a 22% DBE participation goal.
8. TITLE VI ASSURANCE
During the performance of this Contract, the Contractor, for itself, its assignees and successors in interest (hereinafter
referred to as the "Contractor") agrees as follows:
(a) Compliance with Regulations. The Contractor shall comply with the regulations relative to nondiscrimination
in Federally-assisted programs of the Department of Transportation (hereinafter, "DOT") Title 49, Code of
Federal Regulations, Part 21, as they may be amended from time to time (hereinafter referred to as the
"Regulations"), which are herein incorporated by reference and made a part of this Contract.
(b) Nondiscrimination. The Contractor, with regard to the work performed by it during the Contract, shall not
discriminate on the grounds of race, color, religion, sex, age, or national origin in the selection and retention of
subcontractors, including procurement of materials and leases of equipment. The Contractor shall not
participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the Regulation
including employment practices when the Contract covers a program set forth in Appendix B of the
Regulations.
(c) Solicitation for Subcontracts, including Procurement of Materials and Equipment. In all solicitations either by
competitive bidding or negotiation made by the Contractor for work to be performed under the subcontract,
including procurement of materials or leases of equipment, each potential subcontractor or supplier shall be
notified by the Contractor of the Contractor's obligations under this Contract and the Regulations relative to
nondiscrimination on the grounds of race, color, religion, age, sex, or national origin.
(d) Information and Reports. The Contractor shall provide all information and reports required by the
Regulations or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other
sources of information, and its facilities as may be determined by H-GAC or the Department of Transportation
(DOT) to be pertinent to ascertain compliance with such regulations, orders, and instructions. Where any
information is required of a Contractor and is in the exclusive possession of another who fails or refuses to
furnish this information, the Contractor shall so certify to H-GAC or the Department of Transportation, as
page 3 of 5
H-GAC--10/98; 3/05--SpecProvIA
appropriate and shall set forth what efforts it has made to obtain the information.
(e) Sanctions for Noncompliance. In the event of the Contractor's noncompliance with the nondiscrimination
provisions of this Contract, the District shall impose such contract sanctions as it or the Department of
Transportation may determine to be appropriate, including, but not limited to:
(1) Withholding of payments to the Contractor under the Contract until the Contractor complies, and/or
(2) Cancellation, termination, or suspension of the Contract, in whole or in part.
(f) Incorporation of Provisions. The Contractor shall include the provisions of paragraphs (a) through (f) in every
subcontract, including procurement of materials and leases of equipment, unless exempt by the Regulations, or
directives issued pursuant hereto. The Contractor shall take such action with respect to any subcontract or
procurement as H-GAC may direct as a means of enforcing such provisions including sanctions for
noncompliance. Provided, however, that in the event a Contractor becomes involved in or is threatened with
litigation with a subcontractor or supplier as a result of such direction, the Contractor may request H-GAC to
enter into such litigation to protect the interests of H-GAC and, in addition, the Contractor may request the
United States to enter into such litigation to protect the interests of the United States.
9. COMPLIANCE WITH LAWS
The Contractor shall comply with all Federal, State and local laws, statutes, ordinances, rules and regulations, and
the orders and decrees of any courts or administrative bodies or tribunals in any matter affecting the performance of
this Agreement, including without limitation, workers’ compensation laws, minimum and maximum salary and
wage statutes and regulations, and licensing laws and regulations. When required, the Contractor shall furnish H-
GAC with satisfactory proof of its compliance therewith.
10. ENERGY POLICY
Contracts shall recognize mandatory standards and policies relating to energy efficiency which are contained in the
state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (P.L. 94-163).
11. CLEAN AIR ACT AND FEDERAL WATER POLLUTION CONTROL ACT REQUIREMENTS
Contractor agrees to comply with all applicable standards, orders, or requirements issued under Section 306 of the
Clean Air Act (42 USC 1857 (h), Section 508 of the Clean Water Act (33 USC 1368), Executive Order 11738, and
Environmental Protection Agency regulations (40 CFR, Part 15) which prohibit the use under nonexempt federal
contracts, grants or loans, of facilities included on the EPA list for Violating Facilities.
12. DEBARRED BIDDERS
Contractor, including any of its officers or holders of a controlling interest, is obligated to inform H-GAC whether or
not it is or has been on any debarred bidders' list maintained by the United States Government. Should the Contractor
be included on such a list during the performance of this project, it shall so inform H-GAC.
page 4 of 5
H-GAC--10/98; 3/05--SpecProvIA
13. DRUG-FREE WORKPLACE
The Contractor agrees that if the Contractor is a recipient of more than $25,000 in federal assistance through an H-GAC
subcontract, the Contractor shall provide a "drug-free" workplace in accordance with the Drug-free Workplace Act
(DFWA), March 18, 1989. For purposes of this Section, "drug-free" means a worksite at which employees are
prohibited from engaging in the unlawful manufacture, distribution, dispensation, possession, or use of a controlled
substance. The Contractor shall:
1. Publish a policy statement prohibiting the manufacture, distribution, dispensation, possession, or use of a
controlled substance and notify employees of the consequences for violating this prohibition;
2. Establish a drug-free awareness program;
3. Provide each employee with a copy of its policy statement; and
4. Notify employees that, as a condition of employment, the employee must adhere to the terms of the statement
and must notify the employer of any criminal drug offense within five days of conviction.
page 5 of 5
H-GAC--10/98; 3/05--SpecProvIA
OPERATIONS GUIDELINES/SCOPE OF SERVICES
REGIONAL DWI TASK FORCE
RESPONSIBILITIES OF PARTICIPATING AGENCIES:
The following are a list of expectations for officers and agencies interested in participating in the
Regional DWI Task Force. This list is
Enforcement Program (STEP) Grants:
A. H-GAC will serve as the administrator of the STEP Grant. H-GAC will be responsible
1. Setting up pre-Task Force meetings with participating agencies to discuss
participation, protocols, and operational specifics;
2. Setting up post-Task Force meetings to debrief enforcement activities;
3. Determining how many officers will be participating on an enforcement weekend;
4. Collecting requests for reimbursement, along with associated backup
documentation;
5. Submitting requests for reimbursement to TxDOT;
6. Reimbursing agencies for work performed upon receipt of funds from TxDOT;
7. Report on Task Force performance to TxDOT and to Task Force members.
B. Task Force activities will occur during the following periods:
1. Halloween October 23 - November 2, 2016 (depending on agreement timing)
1a Thanksgiving November 20 30, 2016 (depending on agreement timing)
2. Christmas/New Years December 15, 2016 - January 1, 2017
3. Spring Break March 4-21, 2017
4. Memorial Day May 22 - June 4, 2017
th
5. July 4 June 24 - July 5, 2017
6. Labor Day August 18 - September 3, 2017
C. Participating agencies will be expected to assist H-GAC in carrying out all performance
measures established in the grant, including fulfilling the law enforcement objectives by
implementing the Operational Plan contained in this Grant Agreement.
D. Participating agencies will be expected to submit all required reports to H-GAC fully
completed with the most current information, and within the required times, as defined in
Agreement with H-GAC and as required by TxDOT. This includes reporting
to H-GAC on progress, achievements, and problems in post-operational Performance
Reports and attaching necessary source documentation to support all costs claimed in
Requests for Reimbursement (RFR).
Page 1 of 3
E. Participating agencies will be expected to attend H-GAC and TxDOT grant management
training, when required.
F. Participating agencies will be expected to attend meetings according to the following:
1. H-GAC will arrange for Task Force meetings in order to meet with participating
agencies prior to an enforcement event to discuss procedures, protocols, and
operational specifics relating to the event (e.g. enforcement area determination,
intake facility locations, etc.). Depending on the enforcement wave timing, two
waves may be addressed at the same meeting.
2. H-GAC will arrange for Task Force meetings to meet with participating agencies
to present status of activities and to discuss problems and the schedule for the
following work.
3. H- project director or other appropriate qualified persons will be available
to represent participating agencies at meetings requested by the TxDOT.
G. Participating agencies will be expected to support grant enforcement efforts with public
information and education (PI&E) activities. Salaries being claimed for PI&E activities
must be included in the budget.
H. Participating agencies must maintain verification that all expenses, including wages or
salaries, for which reimbursement is requested is for work exclusively related to this
project and adhere to the respective overtime policies established by each agency.
I. Participating agencies, to comply with TxDOT matching fund requirements, will supply
the following information (if applicable) associated with the time worked by agency
personnel:
1. Retirement match paid by agency
2. Workers Compensation insurance
3. Social Security Tax
4. Medicare Tax
5. Health Insurance
6. Vehicle Mileage for shift
7. Indirect Costs
J. Participating agencies will be expected to ensure that this grant will in no way supplant
(replace) funds from other sources. Supplanting refers to the use of federal funds to
support personnel or any activity already supported by local or state funds, or other
sources of agency revenue.
K. Participating agencies will be expected to ensure that each officer working on the STEP
minimum: name, date, badge or identification number, mileage (including starting and
ending mileage), hours worked, type of citation issued or arrest made, officer and
supervisor signatures. Each officer will need to complete an overtime slip from his or her
agency as well, which must be approved by the supervisor.
Page 2 of 3
L. Participating agencies will be required to identify a supervising officer for each shift
being worked by the agency.
M. Participating agencies will be expected to ensure that no officer above the rank of
Lieutenant (or equivalent title) will be reimbursed for enforcement duty, unless the
participating agency received specific written authorization from both H-GAC and
TxDOT, through eGrants system messaging, prior to incurring costs.
N. Participating agencies must submit a summary reimbursement request form to H-GAC
within eighteen (18) days of the end of the enforcement weekend for reimbursement.
forms, copies of overtime slips, and copies of
the shifts worked. The reimbursement submission must be
financial officer. Failure to submit this information in a timely manner will hold up
reimbursements for all participating agencies.
O. Participating agencies may work additional STEP enforcement hours on holidays or
special events not covered under the Operational Plan. However, additional work must be
approved in writing by H-GAC and TxDOT, through eGrants system messaging, prior to
enforcement. Additional hours must be reported in the Performance Report for the time
period for which the additional hours were worked.
P. An enforcement shift shall be no longer than eight (8) hours. Shift length will be
determined prior to the shift. However, if an officer makes a STEP-related DWI arrest
during the shift, but does not complete the arrest before the shift is scheduled to end, the
officer can continue working under the grant to complete that arrest.
Q. Participating agencies should have a safety belt use policy. If a participating agency does
not have a safety belt use policy in place, a policy should be implemented, and a copy
maintained for verification during the grant year.
R. Officers working DWI enforcement must be trained in the National Highway Traffic
Safety Administration/International Association of Chiefs of Police Standardized Field
Sobriety Testing (SFST).
S. Participating agencies should have a procedure in place for contacting and using drug
recognition experts (DREs) when necessary.
T. Participating agencies will be expected to follow its own policies and procedures, as well
as to enforce and comply with all federal, state, and local laws and regulations.
U. This grant is a multi-agency effort, requiring all participants to make a diligent effort to
patrol and apprehend offenders. Failure of a participating agency to do so may result in
the overall non-achievement of goals, jeopardizing the future ability of being awarded
similar grants in the future. If it is deemed that an agency is not actively pursuing the
goals of the Program, the Agency, pursuant to Section 17 of the General Provisions of
this Agreement, may terminate the Agreement.
Page 3 of 3
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
October 10, 2016October 10, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
Grant FundGrant Fund
Ken AdcoxKen AdcoxSource of Funds:Source of Funds:
Requested By:Requested By:
0325253521102003252535211020
PolicePoliceAccount Number:Account Number:
Department:Department:
$49,088.00$49,088.00
Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
$49,996.75$49,996.75
Other:Amount Requested:Amount Requested:
Budgeted Item:Budgeted Item:YESYESNONO
AttachmentsAttachments : :
1.ResolutionResolution
2.Texas Traffic Safety Program Grant Texas Traffic Safety Program Grant
AgreementAgreement
3.Email with STEP YearEmail with STEP Year--End Statistical End Statistical
ReportReport
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The La Porte Police Department has made its annual application for the TXDOT The La Porte Police Department has made its annual application for the TXDOT S.T.E.P.S.T.E.P.grant concerning
grant concerning
overtime reimbursement for Speed and Intersection Control for the fiscal year 2016/2017.overtime reimbursement for Speed and Intersection Control for the fiscal year 2016/2017. This
will mark the This will mark the
seventh year for which the department has applied for the grant. TXDOT has preliminarily approved the award seventh year for which the department has applied for the grant. TXDOT has
preliminarily approved the award
and forwarded the attached grant agreement for City Counciland forwarded the attached grant agreement for City Councils consideration and approval.s consideration and approval.
The grant will reimburse the City up to $49,996.75 (which is greater than what was originally anticipated and The grant will reimburse the City up to $49,996.75 (which is greater than
what was originally anticipated and
budgeted in the Grant Fund) with matching contributions from the City of $51,361.20.budgeted in the Grant Fund) with matching contributions from the City of $51,361.20. The City The
Citys matching s matching
funds have been included in the departmentfunds have been included in the departments operations budget.s operations budget.
Although the grant pays only base salary, as in past years, the police department will continue to meet the match Although the grant pays only base salary, as in past years, the police
department will continue to meet the match Although the grant pays only base salary, as in past years, the police department will continue to meet the match Although the grant pays
only base salary, as in past years, the police department will continue to meet the match
through administrative costs, employee benefits, mileage, fuel, and City funded Speed and Intersection Control through administrative costs, employee benefits, mileage, fuel, and City
funded Speed and Intersection Control
overtime.
Action Required of Council:Action Required of Council:
Consider approval or other action of a Resolution authorizing the City Manager to sign grant award and Consider approval or other action of a Resolution authorizing the City Manager
to sign grant award and
other documents for Speed and Intersection Traffic Control STEP grant.other documents for Speed and Intersection Traffic Control STEP grant.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
RESOLUTION
* * * *
WHEREAS, injuries and deaths from traffic crashes bring loss and suffering to the citizens of this community;
and
WHEREAS, the cost of such injuries brings economic hardship to families; and
WHEREAS
by injuries of traffic crashes; and
WHEREAS, research shows that speed is a causative factor in many traffic crashes; and
WHEREAS, failure to obey traffic control devices, signs and signals at intersections causes many traffic
crashes; and
WHEREAS, the National Highway Traffic Safety Administration statistics have shown that reducing speed
limit and traffic control violators prevents crashes, saves lives and reduces non-fatal injuries while resulting in
economic savings to society;
WHEREAS, the Speed/Intersection Traffic Control STEP includes public education and intensified law
enforcement to get the community to comply with speed limits and traffic control devices, signs and signals;
NOW THEREFORE, BE IT RESOLVED that The City of La Porte approves the City Manager to execute all
documents for the Speed/ITC STEP Grant for October 1, 2016 through September 30, 2017; joining public and
private sector leaders across Texas supporting the campaign; urging all residents and visitors of La Porte to
abide by traffic laws, to protect life and the quality of life in this community.
Signed by:
___________________________
Authorized Official
ATTEST: APPROVED:
City Secretary Mayor, City of La Porte
REQUEST FOR CITY COUNCIL AGENDA ITEM
Budget
Agenda Date Requested: October 10, 2016
Source of Funds: Motor Pool/Patrol
Requested By: Sharon Valiante
Account Number: Various 009/001
Department: Public Works
Amount Budgeted: $ 1,064,526.01
Report: X Resolution: Ordinance:
Amount Requested: $ 1,065,632.21
Exhibits: 2 Summary of Vehicle Replacement
Budgeted Item: YES
Exhibits: 3 BuyBoard Price Sheets
Exhibits 4 HGAC Buy Price Sheet – Concrete Mixer Truck Unit
Exhibits 5 Cemen Tech Silo-HGAC-CT270S
SUMMARY & RECOMMENDATION
Competitive quotes were received through the Texas BuyBoard and HGAC Cooperative
Purchasing Programs for vehicles eligible for replacement or to be added in the FY16 - FY17
Vehicle Replacement Program. There are four full size sedans and one sport utility vehicle that
will be replaced with five sport utility vehicles, and one one-half ton pickup replaced with a crew
1
cab pickup. Replacement with the same type vehicle include four sedans, five pickups, one one-
ton truck with flat bed, four one-ton trucks with utility beds, one 24 passenger bus, and two 12-
yard dump trucks . There are three new purchases approved as part of the FY 16-FY17 budget that
will be new additions to the City’s Fleet; a Meter Reader Truck, a Cementech Mobile Concrete
Dispenser and a Cementech Cement Silo.
VENDORBUDGET ITEMBUDGETEDBIDUSER
Caldwell Country 5 - SUV’s (Replacements) 184,206.00 163,599.00 PD
Caldwell Country 1 – Pickup (Replacements) 17,548.01 24,607.00PD
Grapevine Dodge 4 – Sedans (Replacements) 106,142.00 96,132.00PD
Chastang Ford 5 – Pickups (4 Replacement;
1 New) 92,977.00103,507.00PW,PK.UB*
Chastang Ford 5 – One ton flat & utility beds 165,564.00 PW,PK
(Replacements) 159,987.00
Texas Bus Sales 1 – 24 Passenger Bus 95,356.21 PK
(Replacements) 91,660.00
Freightliner Austin 2 – 12 Yard Dump Trucks 184,006.00 182,862.00 PW
Houston1 – Cementech R089 Mobile
FreightlinerConcrete Dispenser (New) 200,000.00206,760.00PW*
Houston1 – Cementech Cement Silo
Freightliner(New) 28,000.0027,245.00PW*
TOTAL1,064,526.011,065,632.21
.
1 Additional funding through Police division budget
*
Utility Billing – New; Meter Reader Truck; PW – New; to serve Concrete Repair Program; (New = Additions to the Fleet)
Changes in equipment type, size, and design modification requested by Departments include:
Replacing four full size sedans with four sport utility vehicles
Replacing a conventional cab pickup with a crew cab pickup
Miscellaneous:
The vehicles to be purchased with this agenda request will replace existing vehicles that
are now at the end of their service lives, one additional new vehicle (Utility Billing) that
has been funded by the division through the Motor Pool in previous budgets, and two
new vehicles/equipment (Public Works) with funding from the Vehicle Replacement
Fund.
The “Budgeted” amount listed in the table for the replacement vehicles represents the
total funds deposited by each department through FY 2016 in the form of “lease fees”
paid by the department over the lease term designated for each vehicle. Additional
funding is provided through the respective Departmental/Divisional budgets.
The “Budgeted” amount listed in the table for the New Public Works vehicles/equipment
are the funding amounts approved by Council for the FY 16-FY 17 budget for new
purchases. The Division will pay lease fees over the life of the units to establish a
“Budgeted” amount for future replacements.
The Purchasing Division of the Finance Department has reviewed the recommendation
for vehicle purchases and is in support of this recommendation. Pricing was checked on
both BuyBoard Programs.
Action Required by Council:
1.Consider approval or other action to award purchase of five sport utility vehicles, and one
pickup to Caldwell Country ($188,206.00).
2.Consider approval or other action to award purchase of four sedans to Grapevine Dodge
($96,132.00)
3.Consider approval or other action to award purchase of five pickups and five – one ton
trucks with flat or utility beds to Chastang Ford ($269,071.00).
4.Consider approval or other action to award purchase of one – 24 passenger bus to Texas
Bus Sales ($95,356.21)
5.Consider approval or other action to award purchase of two – 12 yard dump trucks to
Freightliner of Austin ($182,862.00)
6.Consider approval or other action to award purchase of one - Cementech R089 Mobile
Concrete Dispenser and one - Cementech Cement Silo to Houston Freightliner
($234,005.00)
Approved for City Council Agenda
Corby D. Alexander, City Manager Date
CONTRACT PRICING WORKSHEET ContractDate
21-Sep
HT06-16
No.:Prepared:
For MOTOR VEHICLES Only
This Worksheet is prepared by Contractor and given to End User. If a PO is issued, both documents
MUST be faxed to H-GAC @ 713-993-4548. Therefore please type or print legibly.
Buying
City of LaPorte Contractor:Houston Freightliner, Inc
Agency:
ContactPrepared
Michael CollinsMichael McCarthy
Person:By:
Phone:281-470-5114 Phone:713-580-8122
Fax:Fax:713-955-6282
Email:Collinsm@laportetx.gov Email:Mike.McCarthy@STRHouston.com
Product
Description:
2017 Freightliner M2-106-80
D7
Code:
A. Product Item Base Unit Price Per Contractor's H-GAC Contract:69353
B. Published Options - Itemize below - Attach additional sheet(s) if necessary - Include Option Code in description if applicable.
(Note: Published Options are options which were submitted and priced in Contractor's bid.)
DescriptionDescription
CostCost
Cummins ISL 350 HP315/80R22/5 Front Tires
2030623
Air Driver Seat
Allison 3000 RDS Auto Transmission
6146165
20000 LB Front AxleAir Cab Suspension
3325118
46,000 LB Rear Axle
1880
Bendix AD-9 Air Dryeer
290
46,000 LB TuffTrac RR Suspensi0nCementech R089 Mobile Concrete Dispenser
272898109
Air Conditioner
850
237" Wheelbase
1028
1/4" Frame Liner
650
AM/FM Radio
Subtotal From Additional Sheet(s):
225
7/16x3-9/16x11-1/8 Frame
560118727
Subtotal B:
C. Unpublished Options - Itemize below / attach additional sheet(s) if necessary.
(Note: Unpublished options are items which were not submitted and priced in Contractor's bid.)
DescriptionDescription
CostCost
Cementech CT-270S Silo
27245
Subtotal From Additional Sheet(s):
0
27245
Subtotal C:
Check: Total cost of Unpublished Options (C) cannot exceed 25% of the total of the Base Unit
For this transaction the percentage is:
14%
Price plus Published Options (A+B).
D. Total Cost Before Any Applicable Trade-In / Other Allowances / Discounts (A+B+C)
Quantity Ordered: X Subtotal of A + B + C:
215325215325
1=Subtotal D:
E. H-GAC Order Processing Charge (Amount Per Current Policy)
1500
Subtotal E:
F. Trade-Ins / Special Discounts / Other Allowances / Freight / Installation / Miscellaneous Charges
DescriptionDescription
CostCost
Discount
-12065
Freight from Cementech to LaPorte
2000
-10065
Subtotal F:
206760
Delivery Date: 2/1/2017G. Total Purchase Price (D+E+F):
ADDITIONAL TERMS AND CONDITIONS OF SALE
1. Parties. Cemen Tech, Inc., is identified herein as seller. The party purchasing the items described is identified as
purchaser.
2. Prices. Prices quoted by the seller are guaranteed for ninety (90) days from the Quote Date on the front of the
purchase order. Prices are subject to change on purchase orders received in our office thereafter. Payment of the
th
purchase price is to be performed at sellers place of business. 1700 North 14 Street, Indianola, Iowa.
3. Acceptance. The purchase order is subject to approval and acceptance by the seller at its office in Indianola, Iowa.
4. Taxes. Purchaser is responsible for the payment of all sales and use taxes.
5. Warranties. The seller warrants that it will repair of replace, without charge, any part that is defective in workmanship
or material and is returned to seller at Indianola, Iowa, freight prepaid, within three hundred sixty-five (365) days of
delivery to the purchaser. SELLER MAKES NO WARRANTIES EXPRESS OR IMPLIED, INCLUDING WARRANTIES
AS TO MERCHANTABILITY OR AS TO THE FITNESS FOR ANY PARTICULAR USE OR PURPOSE, EXCEPT THE
ABOVE EXPRESS WARRANTY, AND THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE
DESCRIPTION ON THE FACE HEREOF. SELLER SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE,
DIRECTLY OR INDIRECTLY, ARISING FROM THE USE OF SUCH EQUIPMENT OR FOR CONSEQUENTIAL
DAMAGES. Purchasers exclusive remedy shall be repair or replacement of defective parts and in no event
whatsoever shall seller be otherwise liable.
6. Payment and Interest. Payment is due in full on delivery unless otherwise provided in the written agreement between
the parties. Interest on any unpaid balance shall accrue at lesser of 1.5% per month (18% annually), or the maximum
legal rate, until the balance is paid in full.
7. Attorney(s) fees and expenses. Purchaser shall pay sellers reasonable attorneys fees and expenses incurred in
enforcing or defending this agreement and claims related thereto.
8. Business use. Purchaser warrants that the subject equipment is being purchased for use primarily in business, and
not for personal, family or household purposes.
9. Representations. This purchase order constitutes the complete agreement between the parties and cannot be
amended or modified except by a written statement signed by the parties. Sales representatives do not have authority
to amend, modify, or waive the printed terms and conditions stated herein.
10. Captions. Captions appearing herein are for convenience purposes only and do not alter or affect the interpretation or
construction of any paragraph herein.
11. Savings clause. If any provision herein is deemed to be unconscionable or unenforceable for any reasons, the
remaining provisions of the agreement shall remain in force, or the agreement shall be cancelled at the sole discretion
of the seller.
12. Place of contracting. This purchase order is deemed by the parties to have been accepted and entered into in the
State of Iowa and will be interpreted under the laws of the State of Iowa.
13. Venue. The parties hereby agree that Warren County, Iowa, is an appropriate and convenient forum for any action
brought to enforce the terms and conditions of this agreement.
Accepted By: Cemen Tech, Inc. Purchaser: _______________________
Authorized By:__________________ Authorized By:______________________
(Authorized Signature)(Authorized Signature)
Title:__________________ Title:_______________________
Date:__________________ Date:_______________________
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
October 10, 2016October 10, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/AN/A
Ryan CramerRyan CramerSource of Funds:Source of Funds:
Requested By:Requested By:
Planning & DevelopmentPlanning & DevelopmentAccount Number:Account Number:
Department:Department:
Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
Other:Amount Requested:Amount Requested:
Budgeted Item:Budgeted Item:YESYESNONO
AttachmentsAttachments : :
1.OrdinanceOrdinance
2.P&Z Recommendation LetterP&Z Recommendation Letter
3.SCUP ApplicationSCUP Application
4.Area MapArea Map
5.Land Use and Zoning MapLand Use and Zoning Map
6.Public Response LettersPublic Response Letters
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The applicants (Kenneth and Joanne Humphries) are seeking approval of a Special Conditional Use The applicants (Kenneth and Joanne Humphries) are seeking approval of a Special Conditional
Use
Permit (SCUP) to allow construction of a secondary dwelling unit for a Permit (SCUP) to allow construction of a secondary dwelling unit for a mothermother--inin--lawlawunit at the
unit at the
property addressed 2711 Crescent Drive and further described as Tract 1 Crescent View Subdivisionproperty addressed 2711 Crescent Drive and further described as Tract 1 Crescent View
Subdivision
and is 33,241 square feet in area.and is 33,241 square feet in area.
The site is zoned RThe site is zoned R--1 and contains an existing single family residential house. The applicant desires to 1 and contains an existing single family residential house.
The applicant desires to
construct an 880 square foot secondary dwelling on their property. This structure would house a garage construct an 880 square foot secondary dwelling on their property. This structure
would house a garage
and storage on the first floor and a and storage on the first floor and a mothermother--inin--lawlawsuite on the second floor. The citysuite on the second floor. The citys residential
use s residential use
table (Section 106table (Section 106table (Section 106table (Section 106----331) allows for secondary dwelling units in the R331) allows for secondary dwelling units in the R331) allows
for secondary dwelling units in the R331) allows for secondary dwelling units in the R----1 district through consideration of a 1 district through consideration of a 1 district through
consideration of a 1 district through consideration of a
Special Conditional Use Permit. Although the zoning ordinance does not contain a definition of a Special Conditional Use Permit. Although the zoning ordinance does not contain a definition
of a
secondary dwelling unit, a secondary dwelling unit, a mothermother--inin--law suitelaw suiteis commonly categorized as a secondary dwelling unit.is commonly categorized as a secondary
dwelling unit.
There is currently a trend across the country to allow for secondary dwelling units on lots as motherThere is currently a trend across the country to allow for secondary dwelling units
on lots as mother--inin--law suites. law suites.
Secondary dwelling units provide the ability to house family and friends as guests while providing some privacy and Secondary dwelling units provide the ability to house family and friends
as guests while providing some privacy and
separation through detaching the structure. The use of this site will remain single family detached residential. separation through detaching the structure. The use of this site will
remain single family detached residential.
The Planning and Zoning Commission conducted a public hearing at the September 15, 2015, meeting The Planning and Zoning Commission conducted a public hearing at the September 15, 2015,
meeting
concerning this request. Eight public hearing notice responses were received by the City for the P&Z concerning this request. Eight public hearing notice responses were received by the
City for the P&Z
public hearing; eight in favor and none in opposition. public hearing; eight in favor and none in opposition. The Commission voted unanimously to The Commission voted unanimously to
recommend approval of the proposed SCUP.recommend approval of the proposed SCUP.
Action Required of Council:Action Required of Council:
Conduct public hearing and cConduct public hearing and consider approval or other action on a recommendation by the Planning and onsider approval or other action on a recommendation
by the Planning and
Zoning Commission to approve Special Conditional Use Permit Request #16Zoning Commission to approve Special Conditional Use Permit Request #16--91000003, to allow 91000003, to allow
construction of secondary dwelling unit for the property located at 2711 Crescent Drive.construction of secondary dwelling unit for the property located at 2711 Crescent Drive.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
AREA MAP
E
OAKHURST AV
LOCATION OF
PROPERTY
SANDEL
VIEW
SCENT
CRE
M
C C
ABE
RD
VE
BAYSHORE A
F ST
INE BLUF
P
PI
NE B
LUFF
DR
1 inch = 300 feet
ZONING EXHIBIT
AND
REWS C
T
PUD
E
OAKHURST AV
NC
LOCATION OF
PROPERTY
(2711 CRESCENT DR)
MH
SANDEL
JUN
IPER
R-3
VIEW
SCENT
CRE
M
C C
ABE
RD
BAYSHORE AVE
F ST
INE BLUF
P
PI
NE B
LUFF
DR
R-1
BAYSIDE DR
LEGEND
Zoning
LOW DENSITY RESIDENTIAL
HIGH DENSITY RESIDENTIAL
MANUFACTURED HOUSING
NEIGHBORHOOD COMMERCIAL
DWI
RE DR
PLANNED UNIT DEVELOPMENT
1 inch = 500 feet
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
October 10, 2016October 10, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
Traci LeachTraci LeachSource of Funds:Source of Funds:
Requested By:Requested By:
AdministrationAdministrationAccount Number:Account Number:
Department:Department:
Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
Other:Amount Requested:Amount Requested:
Budgeted Item:Budgeted Item:YESYESNONO
AttachmentsAttachments : :
1.Chapter 380 Development AgreementChapter 380 Development Agreement
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
El Toro Mexican Restaurant is a local well known restaurant that has being doing business in La Porte El Toro Mexican Restaurant is a local well known restaurant that has being doing
business in La Porte
for over 50 years. It is owned and operated by the Ybarra family, which not only grew up in La Porte but for over 50 years. It is owned and operated by the Ybarra family, which not only
grew up in La Porte but
still live there. still live there.
Mr. Roland Ybarra (dba as Ybarra Restaurants Inc.) is planning on building a brand new El Toro Mr. Roland Ybarra (dba as Ybarra Restaurants Inc.) is planning on building a brand new
El Toro
restaurant with a Hacienda feel that will not only attract local patrons but also ones visiting or staying restaurant with a Hacienda feel that will not only attract local patrons but
also ones visiting or staying
here. The proposed restaurant will be a minimum of 7,500 square feet, seat over 400 patrons, and will here. The proposed restaurant will be a minimum of 7,500 square feet, seat over
400 patrons, and will
have patio dining, as well. All 35 existing employees will be retained in La Porte and approximately 100 have patio dining, as well. All 35 existing employees will be retained in La
Porte and approximately 100
employees will be hired as a result of building this restaurant. employees will be hired as a result of building this restaurant.
thththth
In order to construct the proposed restaurant, El Toro will need to close the N. 25In order to construct the proposed restaurant, El Toro will need to close the N. 25 Street right of
way Street right of way
thth
(El Toro owns property on both sides of the N. 25(El Toro owns property on both sides of the N. 25 Street right of way). The application for the right Street right of way). The application
for the right-of-
way is included as a subsequent item on tonightway is included as a subsequent item on tonights agenda. The value of the street closure is $116,100. s agenda. The value of the street
closure is $116,100.
El Toro is requesting that the City waive the closing fee in order to assist in the development of the El Toro is requesting that the City waive the closing fee in order to assist in
the development of the
property. Given the estimated increase in property value, staff estimates a payback period of 5.5 property. Given the estimated increase in property value, staff estimates a payback
period of 5.5
years.
The attached Chapter 380 document outlines the parameters under which this incentive would be The attached Chapter 380 document outlines the parameters under which this incentive would
be
structured. The City will waive El Torostructured. The City will waive El Toros obligation to make payment of fair market value for the right of s obligation to make payment of fair
market value for the right of
way closure. El Toro would be required to meet the following performance benchmarks:way closure. El Toro would be required to meet the following performance benchmarks:
Provide proof of Certificate of Occupancy for restaurant with a minimum of 7,500 square feet Provide proof of Certificate of Occupancy for restaurant with a minimum of 7,500 square feet
within three years of the effective date of Agreementwithin three years of the effective date of Agreement
Document minimum capital investment of $5,000,000.00 for infrastructure, site improvements, Document minimum capital investment of $5,000,000.00 for infrastructure, site improvements,
building construction within three years of the effective datebuilding construction within three years of the effective date
Should these performance benchmarks not be met, the following instruments are included to safeguard Should these performance benchmarks not be met, the following instruments are included
to safeguard
the City:
A real estate lien shall be placed for the entire tract of land. It is understood by all parties that the A real estate lien shall be placed for the entire tract of land. It is understood
by all parties that the
Citys lien would not be the first lien in the event of bankruptcy. In order to address this concern, s lien would not be the first lien in the event of bankruptcy. In order to address
this concern,
the Guaranty of Payment and the Promissory Note is included as part of Exhibit D of the the Guaranty of Payment and the Promissory Note is included as part of Exhibit D of the
Agreement.Agreement.
Guaranty of Payment, which unconditionally guarantees all obligations/liabilities incurred by El Guaranty of Payment, which unconditionally guarantees all obligations/liabilities incurred
by El
Toro in pursuit of the projectToro in pursuit of the project
Promissory Note (Real Estate Lien Note), which Roland Ybarra personally agrees to pay the City Promissory Note (Real Estate Lien Note), which Roland Ybarra personally agrees to pay the
City
for the value of the right of closure if the terms of the Agreement are not met.for the value of the right of closure if the terms of the Agreement are not met.
Staff recommends approval of the Chapter 380 Agreement between the City of La Porte and Ybarra Staff recommends approval of the Chapter 380 Agreement between the City of La Porte and
Ybarra
restaurants to construct a new El Toro restaurant.restaurants to construct a new El Toro restaurant.
Action Required of Council:Action Required of Council:
Consider approval or other action authorizing the Mayor to execute a Chapter 380 Agreement between Consider approval or other action authorizing the Mayor to execute a Chapter 380 Agreement
between
the City of La Porte and Ybarra Restaurants, Inc. for waiver of payment for closure of street right of way the City of La Porte and Ybarra Restaurants, Inc. for waiver of payment for
closure of street right of way
for the construction of a new El Toro restaurant.for the construction of a new El Toro restaurant.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
EXHIBITA:PROJECTSCOPE
(hardcopiestobeprovided
separately)
EXHIBITB:PROPERTYSURVEY
(the "Property")
To
CHAPTER 380 AGREEMENT
Legal Description of Property:
EXHIBITB:PROPERTYSURVEY
TRACT 1
Being a 2.403 acre tract of land out of the T.W. Lee Subdivision, Richard Pearsall Survey, A-625, Harris
County, Texas, according to the survey performed by H. Carlos Smith, Engineers &Surveyors. Inc., on April 12
thru13, 1984. The 2.403 acre tract is further described as being part of Lots 1 thru 10 and Lots 12 thru 20, all of
tots 21 thru 30, Block 707, including the alley contained therein and a portion of "A" street; both the alley and
street having been vacated, abandoned and closed on March 18, 1981, by the City of La Porte Ordinance No.
1252. The 2.403 acre tract of land is more particularly described by metes and bounds as follows:
Beginning at a 5/8 inch iron rod found for the Southeast corner of Block 698, T. W. Lee Subdivision,
according to the plat recorded in Volume 67, Page 1, Harris County Deed Records, said corner being
coincident with the West right-of-way line of 25th street (based on a width of 60.00 feet) and the North right-
of-way line of "A" street (based on a width of 60.00 feet);
Thence South, passing at 60.00 feet the Northeast corner of Block 707 and being coincident with West right-of-
way line of 25th street (based on a width of 60.00 feet) and the East boundary line of Block 707 for a total
distance of 452.50 feet to a 5/8 inch iron rod found for the Southeast corner of the aforesaid 2.403 acre tract;
Thence West, coincident with the North right-of-way line of West Main Street (based on a width of 114.00
feet; original 85.00 feet) a distance of 221.00 feet to a 5/8 inch iron rod set for the Southwest corner of the
aforesaid 2.403 acre tract;
Thence North, coincident with the East right-of-way line of Sens Road (26th street) (based on a width of 105.00
feet, original 60.00 feet) as widened and recorded under Harris County Film Code No. 176-97-1700; a distance
of 100.00 feet to a 5/8 inch iron rod set for a corner.
Thence, N 4° 17' 21" W, coincident with East right-of-way line of Sens Road as widened, a distance of 353.49
feet to a 5/8 inch iron rod set for the Northwest corner of the aforesaid 2.403 acre tract, said corner being
coincident with the North right-of-way line of "A" street as vacated, abandoned and closed by the City of La
Porte Ordinance No. 1252 on March 8, 1981, and the South boundary line of Block 698;
Thence East, coincident with the North right-of-way line of "A" street and the South boundary line of
Block 698, a distance of 247.44 feet to the POINT OF BEGINNING.
TRACT 2
Lots 1 through 30, Block 708, Town of La Porte, according to map or plat thereof recorded in Volume 67,
Page 1, of the Map / Plat Records of Harris County, Texas SAVE AND EXPECT that 7.5 foot strip of
land conveyed to Harris County, Texas by deed recorded under Clerk's File No. D231169.
EXHIBITC:DEEDWITHOUTWARRANTY
EXHIBITD:GUARANTYOFPAYMENT,PROMISSORYNOTE,DEEDOFTRUST
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
October 10, 2016October 10, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
Traci LeachTraci LeachSource of Funds:Source of Funds:
Requested By:Requested By:
Planning & DevelopmentPlanning & DevelopmentAccount Number:Account Number:
Department:Department:
Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
Other:Amount Requested:Amount Requested:
Budgeted Item:Budgeted Item:YESYESNONO
AttachmentsAttachments : :
1.OrdinanceOrdinance
2.DeedDeed
3.CenterPoint ResponseCenterPoint Response
4.AT&T ResponseAT&T Response
5.Comcast ReponseComcast Reponse
6.Appraisal SummaryAppraisal Summary
7.Area MapArea Map
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
Staff has processed an application from El Toro Mexican Restaurants to vacate, abandon and close a Staff has processed an application from El Toro Mexican Restaurants to vacate, abandon
and close a
thth
portion of the North 25portion of the North 25 Street Right Street Right--ofof--Way between West Main Street and West Polk Street (see Area Way between West Main Street and West Polk
Street (see Area
Map). The purpose of the closing request is to acquire additional land to facilitate future development of Map). The purpose of the closing request is to acquire additional land
to facilitate future development of
the restaurantthe restaurants new site at the northeast corner of West Main Street and Sens Road. s new site at the northeast corner of West Main Street and Sens Road.
Staffs review of the closing application has determined that no public or franchised utilities exist within s review of the closing application has determined that no public or franchised
utilities exist within
the subject rightsthe subject rights--ofof--way to be closed. way to be closed.
In accordance with Section 62.35 of the Code of Ordinances, an independent appraisal of the subject In accordance with Section 62.35 of the Code of Ordinances, an independent appraisal
of the subject
right-of-way has been conducted to determine fair market value. The appraisal established a value of way has been conducted to determine fair market value. The appraisal established
a value of
$6.00 per square foot for 25,800 sq. feet of right$6.00 per square foot for 25,800 sq. feet of right--ofof--way to be closed. Total closing fees (with 25% way to be closed. Total closing
fees (with 25%
discount by ordinance) for the abandonments total $116,100. The City entered into a Chapter 380 discount by ordinance) for the abandonments total $116,100. The City entered into a
Chapter 380
agreement that would waive the closing fees if El Toro meets certain performance benchmarks. That agreement that would waive the closing fees if El Toro meets certain performance benchmarks.
That
agreement was considered by the Council earlier this evening.agreement was considered by the Council earlier this evening.
Action Required of Council:Action Required of Council:
Consider approval of an ordinance or other action vacating, abandoning, and Consider approval of an ordinance or other action vacating, abandoning, and closing a portion of the closing
a portion of the
th
North 25 Street Right Street Right--ofof--Way and authorizing the City Manager to execute a deed to the adjacent Way and authorizing the City Manager to execute a deed to the adjacent
owner for the subject rightowner for the subject right--ofof--way.way.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
DEED WITHOUT WARRANTY
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY
REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS
INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
Date: ___________, 2016
Grantor: City of La Porte, Texas, a municipal corporation
Mailing Address: 604 West Fairmont Parkway, La Porte, TX 77571
Grantee: Ybarra Restaurants, Inc., a Texas corporation
Mailing Address: 7529 Bayway Drive, Baytown, Texas 77520
Consideration: Ten and No/100 Dollars ($10.00) cash
and other good and valuable considerations
Vendor's Lien Note: $116,100.00
Further Consideration: The execution and delivery by the said Grantee of one certain promissory
note of even date herewith in the principal sum shown above as Vendor's Lien Note, payable to the
order of Grantor, bearing interest at the rate therein specified, providing for attorney's fees and
acceleration of maturity at the rate and in the events therein set forth, and payment of said note being
secured by Vendor's Lien and Superior Title retained herein in favor of said Grantor, and by Deed
of Trust of even date herewith, from Grantee to CLARK T. ASKINS, Trustee, to which reference is
here made for all purposes; have GRANTED, SOLD and CONVEYED, and by these presents does
GRANT, SELL and CONVEY unto the said Grantee, the following described property, to-wit:
Property (including any improvements):
BEGINNING at a point located at the north line of the West Main Street Right-of-
th
Way and the west line of the North 25 Street Right-of-Way;
th
THENCE in a northerly direction, along the west line of the North 25St. Right-of-
Way to its intersection with the north line of the West Polk Street Right-of-Way;
THENCE in an easterly direction along the north line of the West Polk Street Right-
th
of-Way to a point located at the intersection of the centerline of the North 25 Street
Right-of-Way and north line of the West Polk St. Right-of-Way;
th
THENCE in a southerly direction, along the centerline of the North 25 Street Right-
of-Way to its intersection with the projected south line of the west Polk Street Right-
of-Way;
THENCE in an easterly direction along the projected south line of the West Polk
th
Street Right-of-Way to its intersection with the east line of the North 25 Street
Right-of-Way;
th
THENCE in a southerly direction, along the east line of the North 25 Street Right-
of-Way to its intersection with the North line of the West Main Street Right-of-Way;
THENCE in a westerly direction along the projected north line of the West Main St.
Right-of-Way to the POINT OF BEGINNING of the herein described tract, and
being graphically illustrated on Exhibit A, attached hereto and incorporated by
reference herein, which was vacated, abandoned and closed by City of La Porte
Ordinance No. 2016-_______ passed and approved by the City Council of the City
of La Porte on the ______ day of _____________, 2016.
Reservations from and Exception to Conveyance and Warranty: This conveyance is made subject
to all and singular the restrictions, conditions, oil, gas, and other mineral reservations, easements,
and covenants, if any, applicable to and enforceable against the above described property as reflected
by the records of the county clerk of the aforesaid county.
Grantor for the consideration and subject to the reservations from and exceptions to conveyance,
conveys to Grantee the property without express or implied warranty, and all warranties that might
arise by common law and the warranties in §5.023 of the Texas Property Code (or its successor) are
excluded.
Attest: City of La Porte, Texas
__________________________________ By:_________________________________
Patrice Fogarty Corby D. Alexander
City Secretary City Manager
Approved:
____________________________
Clark T. Askins
Assistant City Attorney
STATE OF TEXAS §
§
COUNTY OF HARRIS §
This instrument was acknowledged before me on _____ day of ______________, 2016, by Corby
D. Alexander, City Manager of the City of La Porte, Texas, a municipal corporation.
____________________________________
Notary Public, State of Texas
AFTER RECORDING RETURN TO: PREPARED IN THE LAW OFFICE OF:
ASKINS & ASKINS, P.C. ASKINS & ASKINS, P.C.
P.O. Box 1218 P.O. Box 1218
La Porte, TX 77572-1218 La Porte, TX 77572-1218
EXHIBIT ""
LOCATION OF
N. 25TH ST. R-O-W
CLOSING
W
P
OL
K S
T
Y
HW
R
E
NC
E
SP
Legend
ABANDONED R-O-W
PARCEL
R.C. Chuoke & Associates, Inc.
Appraisers & Consultants
P.O. Box 1447 Office- 281-338-9633
League City, Texas 77574 Fax- 281-338-9533
May 2, 2015
City of La Porte
P.O. Box 1115
La Porte, Texas 77572
RE: Restricted Appraisal regarding the estimated Market Value of a portion
of the unopened 25th Street right of way adjoining the north line of (West
Main (Spencer), La Porte, Harris County, Texas.
Dear Sirs:
In accordance with your request, I have inspected the following described
property for the purpose of estimating the Market Value following described
property as of the date of this Restricted Appraisal. As per our agreement, the
data and analysis is presented in an abbreviated Restricted Appraisal format
and is not intended to contain the full analysis.
BRIEF LEGAL DESCRIPTION OF PROPERTY
Known as portion of the unopened 25th Street right of way adjoining the north
line of (West Main (Spencer), between Blocks 707 and 708, La Porte, Harris
County, Texas. (See site plan in addenda).
I hereby certify that I have personally inspected the property described via a
street inspection and that all data gathered by my investigation is from
sources believed reliable and true. In preparing this Restricted Appraisal, a
study of comparable sales and other related market data was performed.
.....Page 2 Continued......
It should clearly be understood that this letter only constitutes only a
statement of the final value and that does not presume to be the complete
analysis of the subject property nor a complete appraisal format and is subject
to the preparation of a detailed appraisal report.
The market values in the subject neighborhood appear to vary generally from
+-$2.00 PSF to over $9.00 PSF for tracts generally similar to the subject
property with locations that range from primary to secondary type roadways.
The area has general access public utilities. The subject site appears to be
generally flat and level. The subject property is not located in the 100 year
flood plain. The Highest and Best Use of the subject property is determined to
be for use a street right of way or for use by adjacent property owners due to
its configuration. Adjacent property uses on the north, east and west
boundaries of the subject property are commercial tracts of land with frontage
along West Main Street or Sens Road. The client and intended user of this
appraisal is the City of La Porte only. The intended use is to estimate the
current market value of the subject property of this analysis as described
above for use in street abandonment procedures. There has been no transfer of
the subject property noted for the past 36 months per appraisal district
records. The effective date of the appraisal is March 29, 2015. The effective
date of the report is May 2, 2015. The estimated exposure time is up to 24
months.
After a review of the comparable sales it is my opinion the estimated unit
value range of between $4.00 PSF to $8.00 PSF would be placed on the
subject property with a mid-range value of $6.00 PSF being indicated for the
subject property before any discounting. Therefore the unit market value of
the subject tract is estimated at $6.00 PSF which is based on 100% fee
simple ownership with no discounting applied.
Respectfully Submitted,
Chris Chuoke, President
R.C. CHUOKE & ASSOCIATES , INC.
AREA MAP
CLP PROJECT NO. 15-25000002
PROP. CLOSING
N. 25TH ST. R-O-W
W. MAIN to W. POLK ST.
SPENCER HWY
1 inch = 200 feet
REQUEST FOR CITY COUNCIL AGENDA
Amount Budgeted
Agenda Date Requested: October 10, 2016
Source of Funds: N/A
Requested By: Michael Dolby, Director of Finance
Account Number:
Department: Finance
Amount Budgeted:
Report: X Resolution: Ordinance:
Amount Requested: _________________
Exhibits: Evaluation Matrix
Budgeted Item: Yes
Exhibits:
At the September 12, 2016 Council Meeting, the evaluation and review process for the Request for Proposal for
Collection Services of Delinquent Ad Valorem Taxes was discussed. All proposals were rejected and per
Council direction it was requested for staff to bring back a matrix for the evaluation of the proposal for the
future RFP. The proposed evaluation criteria for the RFP is listed below. Within each category, staff is
proposing a scoring range that will be used to objectively rate each RFQ received for the delinquent tax
collection services. The attached exhibit details the scoring matrix for the evaluation.
1. Demonstrated results of the performance of the firm for delinquent tax collections. 30 points
2. Proven experience in the field for delinquent property tax collections. 25 points
3. Experience of personnel assigned to the City’s account in connection with the
collection of delinquent taxes. 20 points
4. Historical performance levels and demonstrated capabilities. 20 points
5. Clarity of proposal and supporting data. 5 points
Total 100 points
Action Required by Council:
Provide direction to staff regarding the matrix for the Request for Proposals for delinquent ad valorem tax
collection services.
Approved for City Council Agenda
Corby Alexander, City Manager Date
TheCitywillselectafirmbasedupontheoutcomeofacommitteeevaluationofproposalsusingthe
followingevaluationcriteria:
1.Demonstratedresultsoftheperformanceofthefirmfordelinquenttaxcollections30points
Basedonathreeyear(20132016taxyears)summaryforfoursurroundingexistingmunicipalclientsof
delinquenttaxcollectionsthathavebeenachieved
60%andabovecollected30pts
50%60%collected20pts
50%40%collected10pts
40%orbelowcollected0pts
2.Provenexperienceinthefieldofdelinquentpropertytaxcollections.25points
30+years=25pts
25+years=20pts
20+years=15pts
15+years=10pts
Lessthan15=0
3.Experienceofpersonnelassignedtothe/źƷǤƭaccountinconnectionwiththecollectionofdelinquent
taxes.20points
Lawyersassignedwith20+yearsofexperience20pts
Lawyersassignedwith10+yearsofexperience15pts
Lawyersassignedwith5+yearsofexperience10pts
Lawyersassignedwithbelow5yearsofexperience0pts
4.Historicalperformancelevelsanddemonstratedcapabilities20points
(FactorsforthiscriteriawillbebasedonsuitsfiledanddismissalsfromJuly1,2013June30,2016from
foursurroundingexistingmunicipalclients)
Firmwithhighestpercentage20pts
Firmwithsecondhighestpercentage15pts
Firmwiththirdhighestpercentage10pts
Firmwithfourthhighestpercentage5pts
5.Clarityofproposalandsupportingdata5points
Allrequiredinformationsubmitted5pts
Partialrequiredinformationsubmitted0pts
July1,2013July1,2014July1,2015
June30,2014June30,2015June30,2016
CollectionRecords
NumberofAccounts
BeginningDelinquentTaxesReceivable(DTR)forall
delinquenttaxyearsonJuly1.
TotalDelinquentTaxesCollected(DTC)
TotalPenaltiesandInterest(P&I)Collected
CollectionPercentage(Base,P&I)foralldelinquent
taxyears(DTC+P&I/DTR)
LitigationRecords
SuitsFiled
PrimarySuitsFiled
IntervenorSuits
NumberofDemandLetters
Dismissals
Figuresbasedonfoursurroundingexistingmunicipalaccounts
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
October 10, 2016October 10, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/AN/A
Michael DolbyMichael DolbySource of Funds:Source of Funds:
Requested By:Requested By:
FinanceFinanceAccount Number:Account Number:
Department:Department:
Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
Other:Amount Requested:Amount Requested:
Budgeted Item:Budgeted Item:YESYESNONO
AttachmentsAttachments : :
1.Purchasing Methods PresentationPurchasing Methods Presentation
2.Local Government Code Chapters 252Local Government Code Chapters 252
3.Local Government Code Chapters 271Local Government Code Chapters 271
4.Government Code Chapters 2254Government Code Chapters 2254
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
Staff will be making a presentation of the most common purchasing methods used by the City to obtain goods Staff will be making a presentation of the most common purchasing methods used
by the City to obtain goods
and services.
Action Required of Council:Action Required of Council:
None.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
PROCUREMENTMETHODS
ProcurementThresholds
0$1,999Primarysourceofprocurementiscity
issuedprocurementcard.(Pcard)
$2,000$24,999Requiresminimumofthree(3)
writtenquotesbeobtainedbythedepartmentor
purchasing.
$25,000$49,999RequiresPurchasingtocreatean
informalsolicitationtosendtopotentialbidders
$50,000andaboveΑwĻƨǒźƩĻƭaformalsolicitation
perChapter252and271oftheLocalGovernmentCode
FormalSolicitations
CompetitiveSealedBid
RequestforProposal(RFP)
PerLGC252.041:
Noticepublishedatleastonceaweekforatleasttwo
consecutiveweeksinthe/źƷǤƭofficialnewspaper,notice
mustbepublishedmorethan14daysbeforethedateset
foropeningtheproposals
Publicopening
AwardmustbeapprovedbytheĻƓƷźƷǤƭgoverningbody
BIDS
Usedtoobtainafirmpriceforgoodsand
services(equipment,materials,construction)
Definedspecifications
Awardedtolowestresponsiblebidderorat
bestvalueforthemunicipality(LGC252.043)
RequestforProposal
Usedforhightechnologyandotheritemsforwhichitis
difficulttowriteexactspecifications(InsuranceBenefits
Consultant,WebsiteDesign,BankingServices)
Proposalsareevaluatednotjustonpricebutother
factorssuchasexperience,performancelevels,financials
(LGC252.043)
Evaluationcommitteeistypically3to5citystaffindividual
evaluateeachproposal.Purchasingcompilesfinalscoresheet.
TheCitymaychosetointerviewthetopranked
responders
RequestforProposal
Allowsvendortosuggestsolutions,focusisonend
productorservicedesired
Allowsfornegotiations(LGC252.042)
Exemptions
SpecificexceptionsmayrelievetheCityfromthecompetitive
solicitation(LGC252.022)
Aprocurementnecessarytopreserveorprotectthepublic
healthorsafetyoftheƒǒƓźĭźƦğƌźƷǤƭresidents
SoleSource
Proprietary
Interlocal
Cooperative(LGC281102)
Aprocurementforapersonal,professionalorplanning
service
Captivereplacementpartsorcomponentsforequipment
ProfessionalServices
GC2254specificallyexemptscontractsforprofessional
servicesfromthecompetitivebiddingrequirements
Professionalserviceshavebeendescribedasservicesthat
aremainlymentalorintellectualratherthanphysicalor
manual.
Professionalservicesarethosedisciplinesrequiring
specialknowledgeorattainmentandahighorderof
learning,skillandintelligenceΛ.ƌğĭƉƭLawDictionary)
ProfessionalServices(GC2254)
(A)Withinthescopeofpractice,asdefinedbystatelaw,of:
(i)accounting;
(ii)architecture;
(iii)landscapearchitecture;
(iv)landsurveying;
(v)medicine
(vi)optometry;
(vii)professionalengineering
(viii)realestateappraising
(ix)professionalnursing
ProfessionalServices(GC2254)
(B)Providedinconnectionwiththeprofessionalemploymentor
practiceofapersonwhoislicensedorregisteredas:
(i)acertifiedpublicaccountant
(ii)anarchitect;
(iii)alandscapearchitect;
(iv)landsurveyor;
(v)aphysician,includingasurgeon;
(vi)optometrist;
(vii)professionalengineer;
(viii)statecertifiedorlicensedappraiser;
(ix)aregisterednurse
ProfessionalServices
SelectionofProvider(GC2254.003)
Agovernmententitymaynotselectaproviderof
professionalservicesoragroupassociationofprovidersor
awardacontractforservicesonthebasisofcompetitive
submittedbidsforthecontract,butshallmakethe
selectionandaward:
(1)onthebasisofdemonstratedcompetenceand
qualificationstoperformservices;and
(2)forafairandreasonableprice(maynegotiatewithmore
thanoneatatime)
ProfessionalServices
ContractforprofessionalserviceofArchitect,Engineeror
Surveyor(GC2254.004)
1.Selectthemosthighlyqualifiedproviderbasedon
demonstratedcompetenceandqualifications(RFQ)
2.Attempttonegotiatewiththatproviderforafairand
reasonableprice.
3.Ifacontractcannotbenegotiated,formallyend
negotiationswiththatprovider;selectthenextmost
qualifiedproviderandattempttonegotiateacontract
4.Theentityshallcontinuetheprocessuntilacontractis
enteredinto
ProfessionalServices
RequestforQualifications(RFQ)
Advertiseinofficialnewspaper
WeightedCriteria
EvaluationTeam,35staffindividuallygradequalification
statements
Mayinterviewtopqualifiers
Negotiateprice
CouncilApproval
VoidContract(GC2254.005)
Acontractenteredintooranarrangementmadein
violationofthissubchapterisvoidasagainstpublicpolicy.
CooperativeAgreements
LGC271.102
Allowslocalgovernmentstoparticipateincooperative
purchasingprogramswithanotherlocalgovernmentofthis
stateoranotherstateorwithalocalcooperative
organizationofthisstateoranotherstate.
271101Definition
ͻ\[ƚĭğƌĭƚƚƦĻƩğƷźǝĻƚƩŭğƓźǩğƷźƚƓͼƒĻğƓƭğƓƚƩŭğƓźǩğƷźƚƓƚŅ
governmentsestablishedtoprovidelocalgovernment
accesstocontractswithvendorsforthepurchaseof
materials,supplies,servicesorequipment.
CooperativeAgreements
LGC271103
Localgovernmentsmaypurchasegoodsorservices
availableunderFederalsupplyschedulesestablishedbythe
U.S.GeneralServicesAdministrationwithoutfollowing
competitivebiddingprocedures
Contractsawardedthroughcooperativeshavebeen
competitivelyprocured,somembershavecompliancewith
Texaslocalandstateprocurementrequirementsanda
documentedaudittrail
CooperativeAgreements
Interlocalagreementsforallcooperativesthatmaybe
used
Documentationshouldbemaintainedtosupportthe
purchasepriceandvendorselectedforeachpurchase
Bestpricesshouldbesolicitedfrommultiplevendors
and/orcooperativestoensurebestoffer.
Utilizingcooperativesmaysavetime,costofbid
administration,andobtainalowerpricethroughvolume
purchasing.
CooperativeAgreements
BuyBoard(offersrebate)
StateofTexas
IƚǒƭƷƚƓΑDğƌǝĻƭƷƚƓ!ƩĻğ/ƚǒƓĭźƌΛIGAC)
TheCooperativePurchasingNetwork(TCPN)
NationalJointPowersAlliance(NJPA)
USCommunities
TexasDepartmentofInformationResources(DIR)
GeneralServiceAdministration(GSA)
CooperativePurchases:
Vehicles,Computers,Uniformrentals,Body
Cameras
Questions?
LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
LOCAL GOVERNMENT CODE
TITLE 8. ACQUISITION, SALE, OR LEASE OF PROPERTY
SUBTITLE A. MUNICIPAL ACQUISITION, SALE, OR LEASE OF PROPERTY
CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 252.001. DEFINITIONS. In this chapter:
(1) "Bond funds" includes money in the treasury received from the
sale of bonds and includes the proceeds of bonds that have been voted but have
not been issued and delivered.
(2) "Component purchases" means purchases of the component parts of
an item that in normal purchasing practices would be purchased in one purchase.
(3) "Current funds" includes money in the treasury, taxes in the
process of being collected in the current tax year, and all other revenue that
may be anticipated with reasonable certainty in the current tax year.
(4) "High technology procurement" means the procurement of equipment,
goods, or services of a highly technical nature, including:
(A) data processing equipment and software and firmware used in
conjunction with data processing equipment;
(B) telecommunications equipment and radio and microwave systems;
(C) electronic distributed control systems, including building
energy management systems; and
(D) technical services related to those items.
(5) "Planning services" means services primarily intended to guide
governmental policy to ensure the orderly and coordinated development of the
state or of municipal, county, metropolitan, or regional land areas.
(6) "Separate purchases" means purchases, made separately, of items
that in normal purchasing practices would be purchased in one purchase.
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
(7) "Sequential purchases" means purchases, made over a period, of
items that in normal purchasing practices would be purchased in one purchase.
(8) "Time warrant" includes any warrant issued by a municipality that
is not payable from current funds.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1989, 71st Leg., ch. 1250, Sec. 2, eff. Sept. 1, 1989; Acts 1995, 74th Leg.,
ch. 207, Sec. 1, eff. May 23, 1995.
Sec. 252.002. MUNICIPAL CHARTER CONTROLS IN CASE OF CONFLICT. Any
provision in the charter of a home-rule municipality that relates to the notice
of contracts, advertisement of the 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 and that is in conflict with this chapter controls over this chapter
unless the governing body of the municipality elects to have this chapter
supersede the charter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1993, 73rd Leg., ch. 749, Sec. 5, eff. Sept. 1, 1993; Acts 1993, 73rd Leg.,
ch. 757, Sec. 7, eff. Sept. 1, 1993.
Sec. 252.003. APPLICATION OF OTHER LAW. The purchasing requirements of
Section 361.426, Health and Safety Code, apply to municipal purchases made
under this chapter.
Added by Acts 1991, 72nd Leg., ch. 303, Sec. 17, eff. Sept. 1, 1991.
SUBCHAPTER B. COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED
Sec. 252.021. COMPETITIVE REQUIREMENTS FOR PURCHASES. (a) Before a
municipality may enter into a contract that requires an expenditure of more
than $50,000 from one or more municipal funds, the municipality must:
(1) comply with the procedure prescribed by this subchapter and
Subchapter C for competitive sealed bidding or competitive sealed proposals;
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
(2) use the reverse auction procedure, as defined by Section
2155.062(d), Government Code, for purchasing; or
(3) comply with a method described by Chapter 2269, Government Code.
(b) A municipality may use the competitive sealed proposal procedure for
the purchase of goods or services, including high technology items and
insurance.
(c) The governing body of a municipality that is considering using a
method other than competitive sealed bidding must determine before notice is
given the method of purchase that provides the best value for the municipality.
The governing body may delegate, as appropriate, its authority under this
subsection to a designated representative. If the competitive sealed proposals
requirement applies to the contract, the municipality shall consider the
criteria described by Section 252.043(b) and the discussions conducted under
Section 252.042 to determine the best value for the municipality.
(d) This chapter does not apply to the expenditure of municipal funds
that are derived from an appropriation, loan, or grant received by a
municipality from the federal or state government for conducting a community
development program established under Chapter 373 if under the program items
are purchased under the request-for-proposal process described by Section
252.042. A municipality using a request-for-proposal process under this
subsection shall also comply with the requirements of Section 252.0215.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1989, 71st Leg., ch. 1, Sec. 56(b), eff. Aug. 28, 1989; Acts 1993, 73rd Leg.,
ch. 749, Sec. 1, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 757, Sec. 11,
eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 45, Sec. 1, eff. May 5, 1995;
Acts 1997, 75th Leg., ch. 790, Sec. 1, eff. June 17, 1997; Acts 1999, 76th
Leg., ch. 571, Sec. 1, eff. June 18, 1999; Acts 2001, 77th Leg., ch. 115,
Sec. 1, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 436, Sec. 2, eff. May
28, 2001; Acts 2001, 77th Leg., ch. 436, Sec. 3, eff. May 28, 2001; Acts
2001, 77th Leg., ch. 1409, Sec. 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg.,
ch. 217, Sec. 1, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1276, Sec.
12.003, eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 1, eff. September 1,
2007.
Acts 2007, 80th Leg., R.S., Ch. 1213 (H.B. 1886), Sec. 1, eff. September
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1272 (H.B. 3517), Sec. 1, eff. September
1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1272 (H.B. 3517), Sec. 2, eff. September
1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.01, eff. September
1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002(20), eff.
September 1, 2013.
Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO HISTORICALLY
UNDERUTILIZED BUSINESS. A municipality, in making an expenditure of more than
$3,000 but less than $50,000, shall contact at least two historically
underutilized businesses on a rotating basis, based on information provided by
the comptroller pursuant to Chapter 2161, Government Code. If the list fails
to identify a historically underutilized business in the county in which the
municipality is situated, the municipality is exempt from this section.
Added by Acts 1993, 73rd Leg., ch. 749, Sec. 3, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 165, Sec. 17.18, eff. Sept. 1, 1997; Acts 2001,
77th Leg., ch. 115, Sec. 2, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 2, eff. September 1,
2007.
Acts 2007, 80th Leg., R.S., Ch. 937 (H.B. 3560), Sec. 1.100, eff.
September 1, 2007.
Sec. 252.022. GENERAL EXEMPTIONS. (a) This chapter does not apply to an
expenditure for:
(1) a procurement made because of a public calamity that requires the
immediate appropriation of money to relieve the necessity of the municipality's
residents or to preserve the property of the municipality;
(2) a procurement necessary to preserve or protect the public health
or safety of the municipality's residents;
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
(3) a procurement necessary because of unforeseen damage to public
machinery, equipment, or other property;
(4) a procurement for personal, professional, or planning services;
(5) a procurement for work that is performed and paid for by the day
as the work progresses;
(6) a purchase of land or a right-of-way;
(7) a procurement of items that are available from only one source,
including:
(A) items that are available from only one source because of
patents, copyrights, secret processes, or natural monopolies;
(B) films, manuscripts, or books;
(C) gas, water, and other utility services;
(D) captive replacement parts or components for equipment;
(E) books, papers, and other library materials for a public
library that are available only from the persons holding exclusive distribution
rights to the materials; and
(F) management services provided by a nonprofit organization to a
municipal museum, park, zoo, or other facility to which the organization has
provided significant financial or other benefits;
(8) a purchase of rare books, papers, and other library materials for
a public library;
(9) paving drainage, street widening, and other public improvements,
or related matters, if at least one-third of the cost is to be paid by or
through special assessments levied on property that will benefit from the
improvements;
(10) a public improvement project, already in progress, authorized by
the voters of the municipality, for which there is a deficiency of funds for
completing the project in accordance with the plans and purposes authorized by
the voters;
(11) a payment under a contract by which a developer participates in
the construction of a public improvement as provided by Subchapter C, Chapter
212;
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
(12) personal property sold:
(A) at an auction by a state licensed auctioneer;
(B) at a going out of business sale held in compliance with
Subchapter F, Chapter 17, Business & Commerce Code;
(C) by a political subdivision of this state, a state agency of
this state, or an entity of the federal government; or
(D) under an interlocal contract for cooperative purchasing
administered by a regional planning commission established under Chapter 391;
(13) services performed by blind or severely disabled persons;
(14) goods purchased by a municipality for subsequent retail sale by
the municipality;
(15) electricity; or
(16) advertising, other than legal notices.
(b) This chapter does not apply to bonds or warrants issued under
Subchapter A, Chapter 571.
(c) This chapter does not apply to expenditures by a municipally owned
electric or gas utility or unbundled divisions of a municipally owned electric
or gas utility in connection with any purchases by the municipally owned
utility or divisions of a municipally owned utility made in accordance with
procurement procedures adopted by a resolution of the body vested with
authority for management and operation of the municipally owned utility or its
divisions that sets out the public purpose to be achieved by those procedures.
This subsection may not be deemed to exempt a municipally owned utility from
any other applicable statute, charter provision, or ordinance.
(d) This chapter does not apply to an expenditure described by Section
252.021(a) if the governing body of a municipality determines that a method
described by Chapter 2269, Government Code, provides a better value for the
municipality with respect to that expenditure than the procedures described in
this chapter and the municipality adopts and uses a method described in that
chapter with respect to that expenditure.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1989, 71st Leg., ch. 1, Sec. 47(c), eff. Aug. 28, 1989; Acts 1989, 71st Leg.,
ch. 1001, Sec. 1, eff. Aug. 28, 1989; Acts 1991, 72nd Leg., ch. 42, Sec. 1,
eff. April 25, 1991; Acts 1993, 73rd Leg., ch. 749, Sec. 7, eff. Sept. 1,
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
1993; Acts 1993, 73rd Leg., ch. 757, Sec. 9, eff. Sept. 1, 1993; Acts 1995,
74th Leg., ch. 207, Sec. 2, eff. May 23, 1995; Acts 1995, 74th Leg., ch. 746,
Sec. 1, eff. Aug. 28, 1995; Acts 1997, 75th Leg., ch. 125, Sec. 1, eff. May
19, 1997; Acts 1997, 75th Leg., ch. 1370, Sec. 3, eff. Sept. 1, 1997; Acts
1999, 76th Leg., ch. 405, Sec. 41, eff. Sept. 1, 1999; Acts 2001, 77th Leg.,
ch. 1409, Sec. 2, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1420, Sec.
8.290, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 3, eff. September 1,
2007.
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.77(3), eff. April
1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.02, eff. September
1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002(21), eff.
September 1, 2013.
Sec. 252.023. EXEMPTIONS FROM REFERENDUM PROVISIONS. The referendum
provisions prescribed by Section 252.045 do not apply to expenditures that are
payable:
(1) from current funds;
(2) from bond funds; or
(3) by time warrants unless the amount of the time warrants issued by
the municipality for all purposes during the current calendar year exceeds:
(A) $7,500 if the municipality's population is 5,000 or less;
(B) $10,000 if the municipality's population is 5,001 to 24,999;
(C) $25,000 if the municipality's population is 25,001 to 49,999;
or
(D) $100,000 if the municipality's population is more than
50,000.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1991, 72nd Leg., ch. 109, Sec. 1, eff. Aug. 26, 1991.
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
Sec. 252.024. SELECTION OF INSURANCE BROKER. This chapter does not
prevent a municipality from selecting a licensed insurance broker as the sole
broker of record to obtain proposals and coverages for excess or surplus
insurance that provides necessary coverage and adequate limits of coverage in
structuring layered excess coverages in all areas of risk requiring special
consideration, including public official liability, police professional
liability, and airport liability. The broker may be retained only on a fee
basis and may not receive any other remuneration from any other source.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
SUBCHAPTER C. PROCEDURES
Sec. 252.041. NOTICE REQUIREMENT. (a) If the competitive sealed bidding
requirement applies to the contract, notice of the time and place at which the
bids will be publicly opened and read aloud must be published at least once a
week for two consecutive weeks in a newspaper published in the municipality.
The date of the first publication must be before the 14th day before the date
set to publicly open the bids and read them aloud. If no newspaper is published
in the municipality, the notice must be posted at the city hall for 14 days
before the date set to publicly open the bids and read them aloud.
(b) If the competitive sealed proposals requirement applies to the
contract, notice of the request for proposals must be given in the same manner
as that prescribed by Subsection (a) for the notice for competitive sealed
bids.
(c) If the contract is for the purchase of machinery for the construction
or maintenance of roads or streets, the notice for bids and the order for
purchase must include a general specification of the machinery desired.
(d) If the governing body of the municipality intends to issue time
warrants for the payment of any part of the contract, the notice must include a
statement of:
(1) the governing body's intention;
(2) the maximum amount of the proposed time warrant indebtedness;
(3) the rate of interest the time warrants will bear; and
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
(4) the maximum maturity date of the time warrants.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1991, 72nd Leg., ch. 109, Sec. 2, eff. Aug. 26, 1991; Acts 1993, 73rd Leg.,
ch. 749, Sec. 4, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 757, Sec. 6,
eff. Sept. 1, 1993.
Sec. 252.0415. PROCEDURES FOR ELECTRONIC BIDS OR PROPOSALS. (a) A
municipality may receive bids or proposals under this chapter through
electronic transmission if the governing body of the municipality adopts rules
to ensure the identification, security, and confidentiality of electronic bids
or proposals and to ensure that the electronic bids or proposals remain
effectively unopened until the proper time.
(b) Notwithstanding any other provision of this chapter, an electronic
bid or proposal is not required to be sealed. A provision of this chapter that
applies to a sealed bid or proposal applies to a bid or proposal received
through electronic transmission in accordance with the rules adopted under
Subsection (a).
Added by Acts 2001, 77th Leg., ch. 1063, Sec. 6, eff. Sept. 1, 2001.
Sec. 252.042. REQUESTS FOR PROPOSALS FOR CERTAIN PROCUREMENTS. (a)
Requests for proposals made under Section 252.021 must solicit quotations and
must specify the relative importance of price and other evaluation factors.
(b) Discussions in accordance with the terms of a request for proposals
and with regulations adopted by the governing body of the municipality may be
conducted with offerors who submit proposals and who are determined to be
reasonably qualified for the award of the contract. Offerors shall be treated
fairly and equally with respect to any opportunity for discussion and revision
of proposals. To obtain the best final offers, revisions may be permitted
after submissions and before the award of the contract.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1989, 71st Leg., ch. 1, Sec. 56(c), eff. Aug. 28, 1989; Acts 1995, 74th Leg.,
ch. 45, Sec. 2, eff. May 5, 1995.
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
Sec. 252.043. AWARD OF CONTRACT. (a) If the competitive sealed bidding
requirement applies to the contract for goods or services, the contract must be
awarded to the lowest responsible bidder or to the bidder who provides goods or
services at the best value for the municipality.
(b) In determining the best value for the municipality, the municipality
may consider:
(1) the purchase price;
(2) the reputation of the bidder and of the bidder's goods or
services;
(3) the quality of the bidder's goods or services;
(4) the extent to which the goods or services meet the municipality's
needs;
(5) the bidder's past relationship with the municipality;
(6) the impact on the ability of the municipality to comply with laws
and rules relating to contracting with historically underutilized businesses
and nonprofit organizations employing persons with disabilities;
(7) the total long-term cost to the municipality to acquire the
bidder's goods or services; and
(8) any relevant criteria specifically listed in the request for bids
or proposals.
(b-1) In addition to the considerations provided by Subsection (b), a
joint board described by Section 22.074(d), Transportation Code, that awards
contracts in the manner provided by this chapter may consider, in determining
the best value for the board, the impact on the ability of the board to comply
with laws, rules, and programs relating to contracting with small businesses,
as defined by 13 C.F.R. Section 121.201.
(c) Before awarding a contract under this section, a municipality must
indicate in the bid specifications and requirements that the contract may be
awarded either to the lowest responsible bidder or to the bidder who provides
goods or services at the best value for the municipality.
(d) Except as provided by Subsection (d-1), the contract must be awarded
to the lowest responsible bidder if the competitive sealed bidding requirement
applies to the contract for construction of:
(1) highways, roads, streets, bridges, utilities, water supply
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
projects, water plants, wastewater plants, water and wastewater distribution or
conveyance facilities, wharves, docks, airport runways and taxiways, drainage
projects, or related types of projects associated with civil engineering
construction; or
(2) buildings or structures that are incidental to projects that are
primarily civil engineering construction projects.
(d-1) A contract for construction of a project described by Subsection
(d) that requires an expenditure of $1.5 million or less may be awarded using
the competitive sealed proposal procedure prescribed by Subchapter D, Chapter
2269, Government Code.
(e) If the competitive sealed bidding requirement applies to the contract
for construction of a facility, as that term is defined by Section 2269.001,
Government Code, the contract must be awarded to the lowest responsible bidder
or awarded under the method described by Chapter 2269, Government Code.
(f) The governing body may reject any and all bids.
(g) A bid that has been opened may not be changed for the purpose of
correcting an error in the bid price. This chapter does not change the common
law right of a bidder to withdraw a bid due to a material mistake in the bid.
(h) If the competitive sealed proposals requirement applies to the
contract, the contract must be awarded to the responsible offeror whose
proposal is determined to be the most advantageous to the municipality
considering the relative importance of price and the other evaluation factors
included in the request for proposals.
(i) This section does not apply to a contract for professional services,
as that term is defined by Section 2254.002, Government Code.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1997, 75th Leg., ch. 1370, Sec. 4, eff. Sept. 1, 1997; Acts 2001, 77th Leg.,
ch. 1409, Sec. 3, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 739 (H.B. 2661), Sec. 1, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 428 (S.B. 1618), Sec. 1, eff. June 15,
2007.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.03, eff. September
1, 2011.
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002(22), eff.
September 1, 2013.
Sec. 252.0435. SAFETY RECORD OF BIDDER CONSIDERED. In determining who is
a responsible bidder, the governing body may take into account the safety
record of the bidder, of the firm, corporation, partnership, or institution
represented by the bidder, or of anyone acting for such a firm, corporation,
partnership, or institution if:
(1) the governing body has adopted a written definition and criteria
for accurately determining the safety record of a bidder;
(2) the governing body has given notice to prospective bidders in the
bid specifications that the safety record of a bidder may be considered in
determining the responsibility of the bidder; and
(3) the determinations are not arbitrary and capricious.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 58(b), eff. Aug. 28, 1989.
Sec. 252.0436. CONTRACT WITH PERSON INDEBTED TO MUNICIPALITY. (a) A
municipality by ordinance may establish regulations permitting the municipality
to refuse to enter into a contract or other transaction with a person indebted
to the municipality.
(b) It is not a violation of this chapter for a municipality, under
regulations adopted under Subsection (a), to refuse to award a contract to or
enter into a transaction with an apparent low bidder or successful proposer
that is indebted to the municipality.
(c) In this section, "person" includes an individual, sole
proprietorship, corporation, nonprofit corporation, partnership, joint venture,
limited liability company, and any other entity that proposes or otherwise
seeks to enter into a contract or other transaction with the municipality
requiring approval by the governing body of the municipality.
Added by Acts 2003, 78th Leg., ch. 156, Sec. 1, eff. Sept. 1, 2003.
Sec. 252.044. CONTRACTOR'S BOND. (a) If the contract is for the
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
construction of public works, the bidder to whom the contract is awarded must
execute a good and sufficient bond. The bond must be:
(1) in the full amount of the contract price;
(2) conditioned that the contractor will faithfully perform the
contract; and
(3) executed, in accordance with Chapter 2253, Government Code, by a
surety company authorized to do business in the state.
(b) Repealed by Acts 1993, 73rd Leg., ch. 865, Sec. 2, eff. Sept. 1,
1993.
(c) The governing body of a home-rule municipality by ordinance may adopt
the provisions of this section and Chapter 2253, Government Code, relating to
contractors' surety bonds, regardless of a conflicting provision in the
municipality's charter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1993, 73rd Leg., ch. 865, Sec. 2, eff. Sept. 1, 1993; Acts 1995, 74th Leg.,
ch. 76, Sec. 5.95(17), eff. Sept. 1, 1995.
Sec. 252.045. REFERENDUM ON ISSUANCE OF TIME WARRANTS. (a) If, by the
time set for letting a contract under this chapter, a written petition with the
required signatures is filed with the municipal secretary or clerk requesting
the governing body of the municipality to order a referendum on the question of
whether time warrants should be issued for an expenditure under the contract,
the governing body may not authorize the expenditure or finally award the
contract unless the question is approved by a majority of the votes received in
the referendum. The petition must be signed by at least 10 percent of the
qualified voters of the municipality whose names appear as property taxpayers
on the municipality's most recently approved tax rolls.
(b) If a petition is not filed, the governing body may finally award the
contract and issue the time warrants. In the absence of a petition, the
governing body may, at its discretion, order the referendum.
(c) The provisions of Subtitles A and C, Title 9, Government Code,
relating to elections for the issuance of municipal bonds and to the issuance,
approval, registration, and sale of bonds govern the referendum and the time
warrants to the extent those provisions are consistent with this chapter.
However, the time warrants may mature over a term exceeding 40 years only if
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
the governing body finds that the financial condition of the municipality will
not permit payment of warrants issued for a term of 40 years or less from
taxes that are imposed substantially uniformly during the term of the warrants.
(d) This section does not supersede any additional rights provided by the
charter of a special-law municipality and relating to a referendum.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1999, 76th Leg., ch. 1064, Sec. 38, eff. Sept. 1, 1999.
Sec. 252.046. CIRCUMSTANCES IN WHICH CURRENT FUNDS TO BE SET ASIDE. If
an expenditure under the contract is payable by warrants on current funds, the
governing body of the municipality by order shall set aside an amount of
current funds that will discharge the principal and interest of the warrants.
Those funds may not be used for any other purpose, and the warrants must be
discharged from those funds and may not be refunded.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 252.047. PAYMENT METHOD FOR CERTAIN CONTRACTS. If the contract is
for the construction of public works or for the purchase of materials,
equipment, and supplies, the municipality may let the contract on a lump-sum
basis or unit price basis as the governing body of the municipality determines.
If the contract is let on a unit price basis, the information furnished to
bidders must specify the approximate quantity needed, based on the best
available information, but payment to the contractor must be based on the
actual quantity constructed or supplied.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 252.048. CHANGE ORDERS. (a) If changes in plans or specifications
are necessary after the performance of the contract is begun or if it is
necessary to decrease or increase the quantity of work to be performed or of
materials, equipment, or supplies to be furnished, the governing body of the
municipality may approve change orders making the changes.
(b) The total contract price may not be increased because of the changes
unless additional money for increased costs is appropriated for that purpose
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
from available funds or is provided for by the authorization of the issuance of
time warrants.
(c) If a change order involves a decrease or an increase of $50,000 or
less, the governing body may grant general authority to an administrative
official of the municipality to approve the change orders.
(c-1) If a change order for a public works contract in a municipality
with a population of 300,000 or more involves a decrease or an increase of
$100,000 or less, or a lesser amount as provided by ordinance, the governing
body of the municipality may grant general authority to an administrative
official of the municipality to approve the change order.
(d) The original contract price may not be increased under this section
by more than 25 percent. The original contract price may not be decreased
under this section by more than 25 percent without the consent of the
contractor.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1995, 74th Leg., ch. 706, Sec. 1, eff. Sept. 1, 1995; Acts 1995, 74th Leg.,
ch. 746, Sec. 2, eff. Aug. 28, 1995.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 479 (H.B. 679), Sec. 1, eff. June 17,
2011.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 2.09, eff. September
1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1127 (H.B. 1050), Sec. 7, eff. September
1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1356 (S.B. 1430), Sec. 2, eff. June 14,
2013.
Sec. 252.049. CONFIDENTIALITY OF INFORMATION IN BIDS OR PROPOSALS. (a)
Trade secrets and confidential information in competitive sealed bids are not
open for public inspection.
(b) If provided in a request for proposals, proposals shall be opened in
a manner that avoids disclosure of the contents to competing offerors and keeps
the proposals secret during negotiations. All proposals are open for public
inspection after the contract is awarded, but trade secrets and confidential
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
information in the proposals are not open for public inspection.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 252.050. LEASE-PURCHASE OR INSTALLMENT PURCHASE OF REAL PROPERTY.
(a) This section applies only to a lease-purchase or installment purchase of
real property financed by the issuance of certificates of participation.
(b) The governing body of a municipality may not make an agreement under
which the municipality is a lessee in a lease-purchase of real property or is
a purchaser in an installment purchase of real property unless the governing
body first obtains an appraisal by a qualified appraiser who is not an employee
of the municipality. The purchase price may not exceed the fair market value
of the real property, as shown by the appraisal.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 10, Sec. 2, eff. Oct. 18, 1989.
Sec. 252.051. APPRAISAL REQUIRED BEFORE PURCHASE OF PROPERTY WITH BOND
PROCEEDS. A municipality may not purchase property wholly or partly with bond
proceeds until the municipality obtains an independent appraisal of the
property's market value.
Added by Acts 2011, 82nd Leg., R.S., Ch. 719 (H.B. 782), Sec. 1, eff.
September 1, 2011.
SUBCHAPTER D. ENFORCEMENT
Sec. 252.061. INJUNCTION. If the contract is made without compliance
with this chapter, it is void and the performance of the contract, including
the payment of any money under the contract, may be enjoined by:
(1) any property tax paying resident of the municipality; or
(2) a person who submitted a bid for a contract for which the
competitive sealed bidding requirement applies, regardless of residency, if the
contract is for the construction of public works.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 979 (H.B. 3668), Sec. 1, eff. September 1,
2009.
Sec. 252.062. CRIMINAL PENALTIES. (a) A municipal officer or employee
commits an offense if the officer or employee intentionally or knowingly makes
or authorizes separate, sequential, or component purchases to avoid the
competitive bidding requirements of Section 252.021. An offense under this
subsection is a Class B misdemeanor.
(b) A municipal officer or employee commits an offense if the officer or
employee intentionally or knowingly violates Section 252.021, other than by
conduct described by Subsection (a). An offense under this subsection is a
Class B misdemeanor.
(c) A municipal officer or employee commits an offense if the officer or
employee intentionally or knowingly violates this chapter, other than by
conduct described by Subsection (a) or (b). An offense under this subsection
is a Class C misdemeanor.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1989, 71st Leg., ch. 1250, Sec. 3, eff. Sept. 1, 1989.
Sec. 252.063. REMOVAL; INELIGIBILITY. (a) The final conviction of a
municipal officer or employee for an offense under Section 252.062(a) or (b)
results in the immediate removal from office or employment of that person.
(b) For four years after the date of the final conviction, the removed
officer or employee is ineligible:
(1) to be a candidate for or to be appointed or elected to a public
office in this state;
(2) to be employed by the municipality with which the person served
when the offense occurred; and
(3) to receive any compensation through a contract with that
municipality.
(c) This section does not prohibit the payment of retirement or workers'
compensation benefits to the removed officer or employee.
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LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
Added by Acts 1989, 71st Leg., ch. 1250, Sec. 4, eff. Sept. 1, 1989.
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LOCAL GOVERNMENT CODE
TITLE 8. ACQUISITION, SALE, OR LEASE OF PROPERTY
SUBTITLE C. ACQUISITION, SALE, OR LEASE PROVISIONS APPLYING TO MORE
THAN ONE TYPE OF LOCAL GOVERNMENT
CHAPTER 271. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES,
COUNTIES, AND CERTAIN OTHER LOCAL GOVERNMENTS
SUBCHAPTER A. PUBLIC PROPERTY FINANCE ACT
Sec. 271.001. SHORT TITLE. This subchapter may be cited as the
Public Property Finance Act.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.002. PURPOSE. (a) The legislature finds that the
purchase or other acquisition or the use of property by governmental
agencies and the financing of those activities are necessary to the
efficient and economic operation of government.
(b) This subchapter promotes a public purpose by furnishing
governmental agencies with a feasible means to purchase or otherwise
acquire, use, and finance public property.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1993, 73rd Leg., ch. 752, Sec. 1, eff. Aug. 30, 1993.
Sec. 271.003. DEFINITIONS. In this subchapter:
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(1) "Conservation and reclamation district" means a
district or authority organized or operating under Article III,
Section 52, or Article XVI, Section 59, of the Texas Constitution.
(2) "Contract" means an agreement entered into under this
subchapter but does not mean a contract solely for the construction of
improvements to real property.
(3) "Governing body" means the board, council, commission,
agency, court, or other body or group that is authorized by law to
acquire personal property for each respective governmental agency.
(4) "Governmental agency" means a municipality, county,
school district, conservation and reclamation district, hospital
organization, or other political subdivision of this state.
(5) "Hospital organization" means a district, authority,
board, or joint board organized under the laws of this state for
hospital purposes.
(6) "Net effective interest rate" means, with reference to
a contract, the interest amount considered by the governing body of a
governmental agency to accrue on a contract.
(7) "Net interest cost" means the total of all interest to
accrue and come due on a contract through the last date a payment is
due on the contract, plus any discount or minus any premium included
in the contract price or principal sum.
(8) "Personal property" includes appliances, equipment,
facilities, and furnishings, or an interest in personal property,
whether movable or fixed, considered by the governing body of the
governmental agency to be necessary, useful, or appropriate to one or
more purposes of the governmental agency. The term includes all
materials and labor incident to the installation of that personal
property. The term includes electricity. The term does not include
real property.
(9) "School district" means an independent school
district, common school district, community college district, junior
college district, or regional college district organized under the
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laws of this state.
(10) "Improvement" means a permanent building, structure,
fixture, or fence that is erected on or affixed to land but does not
include a transportable building or structure whether or not it is
affixed to land.
(11) "Real property" means land, improvement, or an estate
or interest in real property, other than a mortgage or deed of trust
creating a lien on property or an interest securing payment or
performance of an obligation in real property.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1993, 73rd Leg., ch. 752, Sec. 2, eff. Aug. 30, 1993; Acts 1999,
76th Leg., ch. 396, Sec. 1.37, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1095 (S.B. 1393), Sec. 1, eff.
June 17, 2011.
Sec. 271.004. REAL PROPERTY AND IMPROVEMENTS FOR SCHOOL
DISTRICTS. (a) The board of trustees of a school district may
execute, perform, and make payments under a contract under this Act
for the use or purchase or other acquisition of real property or an
improvement to real property. If the board proposes to enter into
such a contract, the board shall publish notice of intent to enter
into the contract not less than 60 days before the date set to approve
execution of the contract in a newspaper with general circulation in
the district. The notice must summarize the major provisions of the
proposed contract. The notice shall estimate the construction and
other costs, but the board shall not publish the first advertisement
for bids for construction of improvements until 60 days has expired
from the publication of the notice of intent to enter into the
contract.
(b) If, within 60 days of the date of publication of the notice
of intent required by Subsection (a), a written petition signed by at
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least five percent of the registered voters of the district is
filed with the board of trustees requesting that the board order a
referendum on the question of whether the contract should be approved,
the board may not approve the contract or publish the first
advertisement for bids for construction of improvements unless the
question is approved by a majority of the votes received in a
referendum ordered and held on the question.
(c) Except as otherwise provided by this section, the
referendum shall be held in accordance with the applicable provisions
of the Election Code. The requirement that an election must be held
on a uniform election date as prescribed by the Election Code does not
apply to an election held under this section.
(d) The contract is a special obligation of the school district
if ad valorem taxes are not pledged to the payment of the contract.
(e) If the contract provides that payments by the school
district are to be made from maintenance taxes previously approved by
the voters of the school district and are subject to annual
appropriation or are paid from a source other than ad valorem taxes,
the payments under the contract shall not be considered payment of
indebtedness under Section 26.04(c), Tax Code.
(f) All or part of the obligation of the school district may be
evidenced by one or more negotiable promissory notes.
(g) A lease-purchase contract entered into by the district
under this section and the records relating to its execution must be
submitted to the attorney general for examination as to their validity.
(h) If the attorney general finds that the contract has been
authorized in accordance with the law, the attorney general shall
approve them, and the comptroller of public accounts shall register
the contract.
(i) Following approval and registration, the contract is
incontestable and is a binding obligation according to its terms.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1993, 73rd Leg., ch. 752, Sec. 3, eff. Aug. 30, 1993.
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Sec. 271.005. AUTHORITY TO CONTRACT FOR PERSONAL PROPERTY.
(a) The governing body of a governmental agency may execute, perform,
and make payments under a contract with any person for the use or the
purchase or other acquisition of any personal property, or the
financing thereof. The contract is an obligation of the governmental
agency. The contract may:
(1) be on the terms considered appropriate by the
governing body;
(2) be in the form of a lease, a lease with an option or
options to purchase, an installment purchase, or any other form
considered appropriate by the governing body including that of an
instrument which would be required to be approved by the attorney
general under Chapter 1202, Government Code, provided that contracts
in such form must be approved by the attorney general in accordance
with the terms of that chapter;
(3) be for a term approved by the governing body and
contain an option or options to renew or extend the term; and
(4) be made payable from a pledge of all or any part of
any revenues, funds, or taxes available to the governmental agency for
its public purposes.
(b) The governing body of a governmental agency may contract
under this section for materials and labor incident to the
installation of personal property.
(c) A contract may provide for the payment of interest on the
unpaid amounts of the contract at a rate or rates and may contain
prepayment provisions, termination penalties, and other provisions
determined within the discretion of the governing body. The net
effective interest rate on the contract may not exceed the net
effective interest rate at which public securities may be issued in
accordance with Chapter 1204, Government Code. Interest on the unpaid
amounts of a contract shall be computed as simple interest.
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(d) Subject only to applicable constitutional restrictions, the
governing body may obligate taxes or revenues for the full term of a
contract for the payment of the contract.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1991, 72nd Leg., ch. 82, Sec. 1, eff. May 12, 1991; Acts 1993,
73rd Leg., ch. 104, Sec. 3, eff. May 7, 1993; Acts 1999, 76th Leg.,
ch. 396, Sec. 1.38, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.
1420, Sec. 8.293, eff. Sept. 1, 2001.
Sec. 271.006. COMPLIANCE WITH OTHER REQUIREMENTS. (a) In
entering into the contract, a municipality must comply with the
requirements of Chapter 252 and a county must comply with the
requirements of Subchapter C, Chapter 262. However, the municipality
or county is not required to submit to a referendum the question of
entering into the contract.
(b) The purchasing requirements of Section 361.426, Health and
Safety Code, apply to a purchase by a governmental agency under this
chapter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1991, 72nd Leg., ch. 303, Sec. 19, eff. Sept. 1, 1991.
Sec. 271.0065. ADDITIONAL COMPETITIVE PROCEDURES. (a) In any
procedure for competitive bidding under this subchapter, the governing
body shall provide all bidders with the opportunity to bid on the same
items on equal terms and have bids judged according to the same
standards as set forth in the specifications.
(b) A governmental agency shall receive bids or proposals under
this subchapter in a fair and confidential manner.
(c) A governmental agency may receive bids or proposals under
this subchapter in hard-copy format or through electronic
transmission. A governmental agency shall accept any bids or
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proposals submitted in hard-copy format.
Added by Acts 2001, 77th Leg., ch. 1063, Sec. 4, eff. Sept. 1, 2001.
Sec. 271.007. APPROVED AND REGISTERED CONTRACT. (a) If the
governing body approves the contract and the contract provides for the
payment of an aggregate amount of $100,000 or more, the governing body
may submit the contract and the record relating to the contract to the
attorney general for examination as to the validity of the contract.
The attorney general shall approve the contract if it has been made in
accordance with the constitution and other laws of this state, and the
contract then shall be registered by the comptroller of public
accounts.
(b) After the contract has been approved and registered as
provided by this section, the contract is valid and is incontestable
for any cause. The legal obligation of the lessor, vendor, or
supplier of personal property or of the person installing personal
property to the governmental agency is not diminished in any respect
by the approval and registration of the contract.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1999, 76th Leg., ch. 396, Sec. 1.39, eff. Sept. 1, 1999.
Sec. 271.008. AUTHORIZED INVESTMENTS. The contract is a legal
and authorized investment for:
(1) banks, savings banks, trust companies, and savings and
loan associations;
(2) insurance companies;
(3) fiduciaries and trustees; and
(4) the sinking funds of a county, municipality, school
district, or other political subdivision or corporation of this state.
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Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.009. TERM OF CONTRACT. The contract may be for any
term not to exceed 25 years.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
SUBCHAPTER B. COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS CONTRACTS
Sec. 271.021. DEFINITIONS. In this subchapter:
(1) "Component purchases" means purchases of the component
parts of an item that in normal purchasing practices would be
purchased in one purchase.
(2) "Governmental entity" means:
(A) a county;
(B) a common or independent school district;
(C) a hospital district or authority;
(D) a housing authority; or
(E) an agency or instrumentality of the governmental
entities described by Paragraphs (A) through (D).
(3) "Separate purchases" means purchases, made separately,
of items that in normal purchasing practices would be purchased in one
purchase.
(4) "Sequential purchases" means purchases, made over a
period, of items that in normal purchasing practices would be
purchased in one purchase.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
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Acts 1989, 71st Leg., ch. 328, Sec. 15, eff. Sept. 1, 1989; Acts
1989, 71st Leg., ch. 1250, Sec. 14, eff. Sept. 1, 1989; Acts 1991,
72nd Leg., ch. 16, Sec. 13.04, eff. Aug. 26, 1991; Acts 1997, 75th
Leg., ch. 1370, Sec. 1, eff. Sept. 1, 1997.
Sec. 271.022. EXEMPT CONTRACT. This subchapter does not affect
a contract required to be awarded under Subchapter A, Chapter 2254,
Government Code.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1995, 74th Leg., ch. 76, Sec. 5.95(9), eff. Sept. 1, 1995.
Sec. 271.023. CONFLICT OF LAWS. To the extent of any conflict,
the provisions of Subchapter B, Chapter 44, Education Code, relating
to the purchase of goods and services under contract by a school
district prevail over this subchapter.
Added by Acts 1999, 76th Leg., ch. 1383, Sec. 2, eff. June 19, 1999.
Sec. 271.024. COMPETITIVE PROCUREMENT PROCEDURE APPLICABLE TO
CONTRACT. If a governmental entity is required by statute to award a
contract for the construction, repair, or renovation of a structure,
road, highway, or other improvement or addition to real property on
the basis of competitive bids, and if the contract requires the
expenditure of more than $50,000 from the funds of the entity, the
bidding on the contract must be accomplished in the manner provided by
this subchapter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1993, 73rd Leg., ch. 749, Sec. 2, eff. Sept. 1, 1993; Acts 1993,
73rd Leg., ch. 757, Sec. 14, eff. Sept. 1, 1993; Acts 2001, 77th
Leg., ch. 115, Sec. 5, eff. Sept. 1, 2001.
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Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1266 (H.B. 987), Sec. 6, eff.
June 19, 2009.
Sec. 271.0245. ADDITIONAL COMPETITIVE PROCEDURES. (a) In the
procedure for competitive bidding under this subchapter, the governing
body of the governmental entity shall provide all bidders with the
opportunity to bid on the same items on equal terms and have bids
judged according to the same standards as set forth in the
specifications.
(b) A governmental entity shall receive bids under this
subchapter in a fair and confidential manner.
(c) A governmental entity may receive bids under this
subchapter in hard-copy format or through electronic transmission. A
governmental entity shall accept any bids submitted in hard-copy
format.
Added by Acts 2001, 77th Leg., ch. 1063, Sec. 5, eff. Sept. 1, 2001.
Sec. 271.025. ADVERTISEMENT FOR BIDS. (a) The governmental
entity must advertise for bids. The advertisement for bids must
include a notice that:
(1) describes the work;
(2) states the location at which the bidding documents,
plans, specifications, or other data may be examined by all bidders;
and
(3) states the time and place for submitting bids and the
time and place that bids will be opened.
(b) The advertisement must be published as required by law. If
no legal requirement for publication exists, the advertisement must be
published at least twice in one or more newspapers of general
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circulation in the county or counties in which the work is to be
performed. The second publication must be on or before the 10th day
before the first date bids may be submitted.
(c) The governmental entity must mail a notice containing the
information required under Subsection (a) to any organization that:
(1) requests in advance that notices for bids be sent to
it;
(2) agrees in writing to pay the actual cost of mailing
the notice; and
(3) certifies that it circulates notices for bids to the
construction trade in general.
(d) The governmental entity shall mail a notice required under
Subsection (c) on or before the date the first newspaper advertisement
under this section is published.
(e) In a county with a population of 3.3 million or more, the
county and any district or authority created under Article XVI,
Section 59, of the Texas Constitution of which the governing body is
the commissioners court may require that a minimum of 25 percent of
the work be performed by the bidder and, notwithstanding any other law
to the contrary, may establish financial criteria for the surety
companies that provide payment and performance bonds.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1989, 71st Leg., ch. 1019, Sec. 2, eff. Aug. 28, 1989; Acts
2001, 77th Leg., ch. 669, Sec. 82, eff. Sept. 1, 2001.
Sec. 271.026. OPENING OF BIDS. (a) Bids may be opened only by
the governing body of the governmental entity at a public meeting or
by an officer or employee of the governmental entity at or in an
office of the governmental entity. A bid that has been opened may not
be changed for the purpose of correcting an error in the bid price.
(b) This subchapter does not change the common law right of a
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bidder to withdraw a bid due to a material mistake in the bid.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.027. AWARD OF CONTRACT. (a) The governmental entity
is entitled to reject any and all bids.
(b) The contract must be awarded to the lowest responsible
bidder, but the contract may not be awarded to a bidder who is not the
lowest bidder unless before the award each lower bidder is given
notice of the proposed award and is given an opportunity to appear
before the governing body of the governmental entity or the designated
representative of the governing body and present evidence concerning
the bidder's responsibility.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.0275. SAFETY RECORD OF BIDDER CONSIDERED. In
determining who is a responsible bidder, the governmental entity may
take into account the safety record of the bidder, of the firm,
corporation, partnership, or institution represented by the bidder, or
of anyone acting for such a firm, corporation, partnership, or
institution if:
(1) the governing body of the governmental entity has
adopted a written definition and criteria for accurately determining
the safety record of a bidder;
(2) the governing body has given notice to prospective
bidders in the bid specifications that the safety record of a bidder
may be considered in determining the responsibility of the bidder; and
(3) the determinations are not arbitrary and capricious.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 58(d), eff. Aug. 28, 1989.
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Sec. 271.028. EFFECT OF NONCOMPLIANCE. A contract awarded in
violation of this subchapter is void.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.029. CRIMINAL PENALTIES. (a) An officer or employee
of a governmental entity commits an offense if the officer or employee
intentionally or knowingly makes or authorizes separate, sequential,
or component purchases to avoid the competitive bidding requirements
of the statute that requires a contract described by Section 271.024
to be awarded on the basis of competitive bids. An offense under this
subsection is a Class B misdemeanor.
(b) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 285, Sec. 24,
eff. September 1, 2011.
(c) An officer or employee of a governmental entity commits an
offense if the officer or employee intentionally or knowingly violates
this subchapter, other than by conduct described by Subsection (a).
An offense under this subsection is a Class C misdemeanor.
Added by Acts 1989, 71st Leg., ch. 1250, Sec. 15, eff. Sept. 1, 1989.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 285 (H.B. 1694), Sec. 18, eff.
September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 285 (H.B. 1694), Sec. 24, eff.
September 1, 2011.
SUBCHAPTER C. CERTIFICATE OF OBLIGATION ACT
Sec. 271.041. SHORT TITLE. This subchapter may be cited as the
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Certificate of Obligation Act of 1971.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.042. PURPOSE; CONFLICT. (a) It is the purpose of
this subchapter to provide:
(1) a procedure for certain financing that is an
alternative to the more cumbersome procedure under Chapter 252 or 262;
and
(2) a new class of securities to be issued and delivered
within the financial capabilities of an issuer on compliance with the
procedures prescribed by this subchapter.
(b) If there is a conflict between a provision of this
subchapter and a provision of Chapter 252 or 262, an issuer may use
either provision, and it is not necessary for the governing body to
designate the law under which action is being taken.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1999, 76th Leg., ch. 1064, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 285 (H.B. 1694), Sec. 19, eff.
September 1, 2011.
Sec. 271.043. DEFINITIONS. In this subchapter:
(1) "Bond funds" means money received from the sale of
bonds by the issuer.
(2) "Certificate" means a certificate of obligation
authorized to be issued under this subchapter.
(3) "Component purchases" means purchases of the component
parts of an item that in normal purchasing practices would be
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purchased in one purchase.
(4) "Contractual obligation" means a contract entered into
by an issuer through its governing body and executed under Section
271.054 or 271.056.
(5) "Current funds" means money in the treasury of the
issuer, taxes in the process of collection during the current budget
year of the issuer, and all other revenues anticipated with reasonable
certainty during the current budget year of the issuer.
(6) "Governing body" means the board, council, commission,
court, or other body or group authorized to issue bonds for or on
behalf of an issuer.
(7) "Issuer" means a municipality, county, or hospital
district established under Chapter 281, Health and Safety Code.
(8) "Separate purchases" means purchases, made separately,
of items that in normal purchasing practices would be purchased in one
purchase.
(9) "Sequential purchases" means purchases, made over a
period, of items that in normal purchasing practices would be
purchased in one purchase.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1989, 71st Leg., ch. 1250, Sec. 17, eff. Sept. 1, 1989; Acts
2003, 78th Leg., ch. 47, Sec. 5, eff. Sept. 1, 2003.
Sec. 271.044. SUBCHAPTER AVAILABLE TO CERTAIN MUNICIPALITIES.
(a) A municipality may use this subchapter only if the municipality:
(1) is incorporated under the home-rule amendment to the
constitution (Article XI, Section 5, of the Texas Constitution); or
(2) is incorporated under a general or special law and the
municipality has the authority to levy an ad valorem tax of not less
than $1.50 on each $100 valuation of taxable property in the
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municipality.
(b) A home-rule municipality may use this subchapter regardless
of any provision in the municipality's charter to the contrary.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.045. PURPOSES FOR WHICH CERTIFICATES MAY BE
AUTHORIZED. (a) The governing body of an issuer may authorize
certificates to pay a contractual obligation to be incurred for the:
(1) construction of any public work;
(2) purchase of materials, supplies, equipment, machinery,
buildings, land, and rights-of-way for authorized needs and purposes;
or
(3) payment of contractual obligations for professional
services, including services provided by tax appraisers, engineers,
architects, attorneys, map makers, auditors, financial advisors, and
fiscal agents.
(b) If necessary because of change orders, certificates may be
authorized in an amount not to exceed 25 percent of a contractual
obligation incurred for the construction of public works, but
certificates may be delivered only in the amount necessary to
discharge contractual obligations.
(c) The governing body of a municipality may issue certificates
of obligation to pay all or part of a municipality's obligations
incurred by contract for interests in and rights to water or sewer
treatment capacity in connection with a water supply and transmission
project or sewer treatment or collection project to be constructed in
whole or in part on behalf of the municipality by another governmental
entity or political subdivision pursuant to a written agreement
expressly authorized under Section 552.014 of this code or Section
791.026, Government Code.
(d) In exercising its authority to issue certificates of
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obligation for the purposes specified in Subsection (c), the
municipality must limit the principal amount of certificates to be
issued for the purpose of funding its contractual obligations to an
amount equal to (i) the aggregate of the contractual payments or the
total costs allocated or attributed, under generally accepted
accounting principles, to the capital costs of the project, as opposed
to any maintenance or operating costs to be paid under the written
agreement or (ii) the total cost of the project multiplied by the
percentage of the nameplate capacity of the project acquired or
conveyed by the written agreement to the municipality, whichever
limitation is applicable to the contractual interests or rights being
conveyed or identified in the written agreement.
(e) Work that is directly attributable under generally accepted
accounting principles to the costs of the project and that is
performed by employees of the issuer may be allocated or attributed to
the capital costs of the project.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1997, 75th Leg., ch. 124, Sec. 1, eff. May 19, 1997; Acts 2001,
77th Leg., ch. 402, Sec. 14, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 554 (H.B. 1232), Sec. 1, eff. June 17,
2005.
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.77(4),
eff. April 1, 2009.
Sec. 271.046. ADDITIONAL PURPOSES FOR CERTIFICATES. (a)
Certificates may be issued for the payment of contractual obligations
to be incurred in:
(1) constructing or equipping a jail;
(2) constructing, renovating, or otherwise improving a
county-owned building; or
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(3) constructing a bridge that is part of or connected to
a county road or an approach to such a bridge.
(b) Certificates issued under this section may be sold for
cash, subject to the restrictions and other conditions of Section
271.050.
(c) The provisions of this subchapter relating to advertisement
for competitive bids apply to contractual obligations to be incurred
for a purpose for which certificates are to be issued under this
section.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1989, 71st Leg., ch. 648, Sec. 1, eff. June 14, 1989.
Sec. 271.0461. ADDITIONAL PURPOSE FOR CERTIFICATES: DEMOLITION
OF DANGEROUS STRUCTURES OR RESTORATION OF HISTORIC STRUCTURES.
Certificates may be issued by any municipality for the payment of
contractual obligations to be incurred in demolishing dangerous
structures or restoring historic structures and may be sold for cash,
subject to the restrictions and other conditions of Section 271.050.
Added by Acts 1989, 71st Leg., ch. 459, Sec. 1, eff. Aug. 28, 1989.
Amended by Acts 1997, 75th Leg., ch. 1056, Sec. 1, eff. June 19, 1997.
Sec. 271.047. AUTHORIZATION OF CERTIFICATES BY ORDINANCE OR
ORDER; OTHER PROVISIONS IN CERTIFICATES. (a) Certificates may be
authorized by an ordinance adopted by the governing body of a
municipality, or by an order adopted by the governing body of a county
after compliance with the quorum requirements prescribed by Section
81.006.
(b) The governing body may:
(1) make the certificates payable at times and places
determined by the governing body;
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(2) issue the certificates in forms and one or more
denominations, either in coupon form or registered as to principal and
interest, or both;
(3) make the certificates contain options for redemption
before scheduled maturity; and
(4) make the certificates contain any other provisions the
governing body desires.
(c) A certificate may not mature over a period greater than 40
years from the date of the certificate and may not bear interest at a
rate greater than that allowed by Chapter 1204, Government Code.
(d) Except as provided by this subsection, the governing body
of an issuer may not authorize a certificate to pay a contractual
obligation to be incurred if a bond proposition to authorize the
issuance of bonds for the same purpose was submitted to the voters
during the preceding three years and failed to be approved. A
governing body may authorize a certificate that the governing body is
otherwise prohibited from authorizing under this subsection:
(1) in a case described by Sections 271.056(1)-(3); and
(2) to comply with a state or federal law, rule, or
regulation if the political subdivision has been officially notified
of noncompliance with the law, rule, or regulation.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 2001, 77th Leg., ch. 1420, Sec. 8.294, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 923 (H.B. 1378), Sec. 2, eff.
January 1, 2016.
Sec. 271.048. CLAIMS AND ACCOUNTS; FUNDING AND EXCHANGE. (a)
A governing body may provide that claims and accounts may, after
certificates are authorized, be incurred for authorized purposes and
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that the claims and accounts represent an undivided interest in
the certificates simultaneously authorized. The governing body may
also provide for the funding or exchange of the claims and accounts
for a like total principal amount of the certificates, with any amount
in excess of the principal amount of the certificates delivered at one
time to be paid in cash or carried forward to a subsequent exchange of
claims and accounts for certificates.
(b) The authorization of certificates and the indebtedness they
evidence may occur before the execution of a contract under this
subchapter.
(c) This section does not create any exception to the
competitive bidding requirements of this subchapter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.049. NOTICE OF INTENTION TO ISSUE CERTIFICATES;
PETITION AND ELECTION. (a) Regardless of the sources of payment of
certificates, certificates may not be issued unless the issuer
publishes notice of its intention to issue the certificates. The
notice must be published once a week for two consecutive weeks in a
newspaper, as defined by Subchapter C, Chapter 2051, Government Code,
that is of general circulation in the area of the issuer, with the
date of the first publication to be before the 30th day before the
date tentatively set for the passage of the order or ordinance
authorizing the issuance of the certificates.
(b) The notice must state:
(1) the time and place tentatively set for the passage of
the order or ordinance authorizing the issuance of the certificates;
(2) the maximum amount and purpose of the certificates to
be authorized; and
(3) the manner in which the certificates will be paid for,
whether by taxes, revenues, or a combination of the two.
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(c) If before the date tentatively set for the authorization of
the issuance of the certificates or if before the authorization, the
municipal secretary or clerk if the issuer is a municipality, or the
county clerk if the issuer is a county, receives a petition signed by
at least five percent of the qualified voters of the issuer protesting
the issuance of the certificates, the issuer may not authorize the
issuance of the certificates unless the issuance is approved at an
election ordered, held, and conducted in the manner provided for bond
elections under Chapter 1251, Government Code.
(d) This section does not apply to certificates issued for the
purposes described by Sections 271.056(1)-(4).
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1995, 74th Leg., ch. 76, Sec. 5.95(3), eff. Sept. 1, 1995; Acts
2001, 77th Leg., ch. 1420, Sec. 8.295, eff. Sept. 1, 2001; Acts 2001,
77th Leg., ch. 402, Sec. 15, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1008 (H.B. 730), Sec. 1, eff.
June 15, 2007.
Sec. 271.050. SALE OF CERTIFICATES. (a) The governing body
may sell for cash any certificates authorized to be issued for one or
more purposes described by Section 271.056.
(b) The proceeds may be used only for the purposes for which
the certificates were authorized and issued. The proceeds may be used
to pay for work done by employees of the issuer that are hired for the
specific purpose of performing work on the project. The proceeds may
be used to pay for work done by other employees of the issuer only if
the issuer incurs equivalent or greater costs to replace the normal
work that would have otherwise been performed by the employees. The
proceeds may not be used to reimburse the issuer for costs that are
determined to be indirect costs under generally accepted accounting
principles. Any accrued interest received must be deposited in the
interest and sinking fund established for the payment of the
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certificates.
(c) A certified copy of the proceedings relating to the
authorization of the certificates must be submitted to the attorney
general and must be approved by the attorney general as having been
authorized in accordance with this subchapter. The attorney general
shall examine the proceedings relating to the authorization of the
certificates. Subtitles A and C, Title 9, Government Code, and
Chapter 618, Government Code, govern the execution, approval,
registration, and validity of the certificates. After registration of
the certificates by the comptroller, the certificates are
incontestable for any cause.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 2001, 77th Leg., ch. 1420, Sec. 8.296, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 554 (H.B. 1232), Sec. 2, eff. June 17,
2005.
Sec. 271.051. CERTIFICATES AS INVESTMENTS OR AS SECURITY FOR
DEPOSITS. (a) Certificates approved by the attorney general are
legal and authorized investments for:
(1) banks, savings banks, trust companies, and savings and
loan associations;
(2) insurance companies;
(3) fiduciaries, trustees, and guardians; and
(4) sinking funds of municipalities, counties, school
districts, or other political corporations or subdivisions of the
state.
(b) Certificates approved by the attorney general are eligible
to secure deposits of public funds of the state or a municipality,
county, school district, or other political corporation or subdivision
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of the state. The certificates are sufficient security for the
deposits to the extent of the face value of the certificates, if
accompanied by any appurtenant unmatured interest coupons.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.052. CERTIFICATES PAYABLE FROM AND SECURED BY OTHER
REVENUES. (a) The governing body, instead of or in addition to other
methods of payment provided by this subchapter, may provide that
certificates will be paid from and secured by other revenues if the
issuer is authorized by the state constitution or other statutes to
secure or pay any kind of general or special obligation by or from
those revenues.
(b) The issuer may deliver certificates secured under this
section in exchange for services or property in the same manner and
with the same effect as otherwise provided by this subchapter or may
sell the certificates for cash.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.0525. REFINANCING CERTIFICATES ISSUED BY COUNTY. (a)
A county may not issue certificates to refinance or refund the debt
evidenced by certificates issued by the county unless the county
complies with the notice requirements of Sections 271.049(a) and (b)
for the issuance of certificates.
(b) If, before the date tentatively set for the authorization
of refinancing certificates, the county clerk receives a petition that
meets the requirements of Subsection (c) protesting the issuance of
the refinancing certificates, the county may not authorize the
issuance of the refinancing certificates unless the issuance is
approved at an election ordered, held, and conducted in the manner
provided for bond elections under Chapter 1251, Government Code.
(c) A petition to protest the issuance of refinancing
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certificates under this section must be signed by a number of
qualified voters, residing in the county, equal to at least five
percent of the number of votes cast in that county for governor in the
most recent general election at which that office was filled.
Added by Acts 1989, 71st Leg., ch. 961, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.297, eff. Sept. 1,
2001.
Sec. 271.053. CERTIFICATES AS DEBT AND SECURITY. Certificates
are debts of the issuer within the meaning of Article XI, Sections 5
and 7, of the Texas Constitution. When delivered, certificates
are "security" within the meaning of Chapter 8, Business & Commerce
Code, and are general obligations of the issuer within the meaning of
Subchapters A and D, Chapter 1207, Government Code.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 2001, 77th Leg., ch. 1420, Sec. 8.298, eff. Sept. 1, 2001.
Sec. 271.054. COMPETITIVE PROCUREMENT REQUIREMENT. Before the
governing body of an issuer may enter into a contract requiring an
expenditure by or imposing an obligation or liability on the issuer,
or on a subdivision of the issuer if the issuer is a county, of more
than $50,000, the governing body must:
(1) submit the proposed contract to competitive
procurement; or
(2) use an alternate method of project delivery authorized
by Chapter 2269, Government Code.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1993, 73rd Leg., ch. 757, Sec. 15, eff. Sept. 1, 1993; Acts
2001, 77th Leg., ch. 675, Sec. 1, eff. June 13, 2001.
Amended by:
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Acts 2009, 81st Leg., R.S., Ch. 1266 (H.B. 987), Sec. 7, eff.
June 19, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 2.10, eff.
September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002
(24), eff. September 1, 2013.
Sec. 271.055. NOTICE TO BIDDERS. (a) An issuer must give
notice of the time, date, and place at which the issuer will publicly
open the bids on a contract for which competitive bidding is required
by this subchapter and read the bids aloud. The notice must be given
in accordance with Subsection (b) or in accordance with:
(1) Chapter 252, if the issuer is a municipality;
(2) the municipal charter of the issuer, if the issuer is
a home-rule municipality; or
(3) the County Purchasing Act (Subchapter C, Chapter 262),
if the issuer is a county.
(b) If an issuer gives notice under this subsection, the notice
must:
(1) be published once a week for two consecutive weeks in
a newspaper, as defined by Subchapter C, Chapter 2051, Government
Code, that is of general circulation in the area of the issuer, with
the date of the first publication to be before the 14th day before the
date set for the public opening of the bids and the reading of the
bids aloud; and
(2) state that plans and specifications for the work to be
done or specifications for the machinery, supplies, equipment, or
materials to be purchased are on file with a designated official of
the issuer and may be examined without charge.
(c) If the contract is to be let on a unit price basis, in
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addition to the other information required to be in the notice,
the notice must specify, based on the best available information, the
approximate quantities of the items needed by the issuer that are to
be bid on.
(d) An issuer may not authorize certificates unless the notice
also states that:
(1) the successful bidder must accept the certificates in
payment for all or part of the contract price; or
(2) the governing body has made provisions for the
contractor to sell and assign the certificates and that each bidder is
required, at the time of the receipt of the bids, to elect whether the
bidder will:
(A) accept the certificates in payment of all or part
of the contract price; or
(B) assign the certificates in accordance with the
arrangements made by the governing body.
(e) In a county with a population of 3.3 million or more, the
county and any district or authority created under Article XVI,
Section 59, of the Texas Constitution of which the governing body is
the commissioners court may require that a minimum of 25 percent of
the work be performed by the bidder and, notwithstanding any other law
to the contrary, may establish financial criteria for the surety
companies that provide payment and performance bonds.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1989, 71st Leg., ch. 1019, Sec. 3, eff. Aug. 28, 1989; Acts
1993, 73rd Leg., ch. 749, Sec. 6, eff. Sept. 1, 1993; Acts 1993, 73rd
Leg., ch. 757, Sec. 8, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch.
76, Sec. 5.95(3), eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 669,
Sec. 83, eff. Sept. 1, 2001.
Sec. 271.056. EXEMPTIONS FROM ADVERTISEMENT REQUIREMENT. The
provisions of this subchapter relating to the advertisement for
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competitive bids do not apply to:
(1) a case of public calamity if it is necessary to act
promptly to relieve the necessity of the residents or to preserve the
property of the issuer;
(2) a case in which it is necessary to preserve or protect
the public health of the residents of the issuer;
(3) a case of unforeseen damage to public machinery,
equipment, or other property;
(4) a contract for personal or professional services;
(5) work done by employees of the issuer and paid for as
the work progresses;
(6) the purchase of any land, building, existing utility
system, or right-of-way for authorized needs and purposes;
(7) expenditures for or relating to improvements in
municipal water systems, sewer systems, streets, or drainage, if at
least one-third of the cost of the improvements is to be paid by
special assessments levied against properties to be benefitted by the
improvements;
(8) a case in which the entire contractual obligation is
to be paid from bond funds or current funds or in which an
advertisement for bids has previously been published in accordance
with this subchapter but the current funds or bond funds are not
adequate to permit the awarding of the contract and certificates are
to be awarded to provide for the deficiency;
(9) the sale of a public security, as that term is defined
by Section 1204.001, Government Code;
(10) a municipal procurement of a kind that, under Chapter
252, is not required to be made in accordance with competitive bidding
procedures like those prescribed by this subchapter; or
(11) a county contract that, under the County Purchasing
Act (Subchapter C, Chapter 262), is not required to be made in
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accordance with competitive bidding procedures like those
prescribed by this subchapter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 2001, 77th Leg., ch. 402, Sec. 16, eff. Sept. 1, 2001; Acts
2001, 77th Leg., ch. 1420, Sec. 8.298, eff. Sept. 1, 2001.
Sec. 271.0565. PRE-BID CONFERENCE. (a) The commissioners
court of a county or the governing body of a district or authority
created under Section 59, Article XVI, Texas Constitution, if the
governing body is the commissioners court of the county in which the
district is located, may require a principal, officer, or employee of
each prospective bidder to attend a mandatory pre-bid conference
conducted for the purpose of discussing contract requirements and
answering questions of prospective bidders.
(b) After a conference is conducted under Subsection (a), any
additional required notice for the proposed contract may be sent by
certified mail, return receipt requested, only to prospective bidders
who attended the conference. Notice under this subsection is not
subject to the requirements of Section 271.055.
Added by Acts 2001, 77th Leg., ch. 255, Sec. 3, eff. May 22, 2001.
Amended by Acts 2003, 78th Leg., ch. 660, Sec. 2, eff. Sept. 1, 2003.
Reenacted and amended by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018),
Sec. 13.001, eff. September 1, 2005.
Sec. 271.057. AWARD OF CONTRACT. (a) Except as provided by
Subsection (b), a contract let under this subchapter for the
construction of public works or the purchase of materials, equipment,
supplies, or machinery and for which competitive bidding is required
by this subchapter must be let to the lowest responsible bidder and,
as the governing body determines, may be let on a lump-sum basis or
unit price basis.
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(b) The commissioners court may condition acceptance of a bid
on compliance with a requirement for attendance at a mandatory pre-bid
conference under Section 271.0565.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 2001, 77th Leg., ch. 255, Sec. 4, eff. May 22, 2001.
Sec. 271.058. AUTHORITY TO REJECT BIDS. The governing body may
reject any and all bids submitted for a contract for which competitive
bidding is required by this subchapter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.059. CONTRACTOR'S BONDS. If a contract is for the
construction of public works and is required by this subchapter to be
submitted to competitive bidding, the successful bidder must execute a
good and sufficient payment bond and performance bond. The bonds must
each be:
(1) in the full amount of the contract price; and
(2) executed, in accordance with Chapter 2253, Government
Code, with a surety company authorized to do business in this state.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1995, 74th Leg., ch. 76, Sec. 5.95(17), eff. Sept. 1, 1995.
Sec. 271.060. CHANGE ORDERS. (a) After performance of a
construction contract begins, a governing body may approve change
orders if necessary to:
(1) make changes in plans or specifications; or
(2) decrease or increase the quantity of work to be
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performed or materials, equipment, or supplies to be
furnished.
(b) The total price of a contract may not be increased by a
change order unless provision has been made for the payment of the
added cost by the appropriation of current funds or bond funds for
that purpose, by the authorization of the issuance of certificates, or
by a combination of those procedures.
(c) A contract with an original contract price of $1 million or
more may not be increased by more than 25 percent. If a change order
for a contract with an original contract price of less than $1 million
increases the contract amount to $1 million or more, subsequent change
orders may not increase the revised contract amount by more than 25
percent.
(d) A governing body may grant authority to an official or
employee responsible for purchasing or for administering a contract to
approve a change order that involves an increase or decrease of
$50,000 or less.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 479 (H.B. 679), Sec. 2, eff.
June 17, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 2.11, eff.
September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001
(34), eff. September 1, 2013.
Sec. 271.061. COMPENSATION ON UNIT PRICE CONTRACTS. If a
contract is let on a unit price basis, the compensation paid to the
contractor must be based on the actual quantities of items constructed
or supplied.
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Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.062. CERTAIN CONTRACTS NOT REQUIRED TO BE IN WRITING.
A contract executed under Section 271.054 or 271.056 is not required
to be in writing if the work to be performed under the contract:
(1) is legal services;
(2) is to be done by the regular salaried employees of the
issuer; or
(3) is to be paid for as the work progresses.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.063. UNCONSTITUTIONAL PROCEDURE CORRECTED BY
RESOLUTION OF ISSUER. If a procedure used under this subchapter is
held to be in violation of the state or federal constitution, an
issuer by resolution may provide an alternative procedure that
conforms to the constitution.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.064. CRIMINAL PENALTIES. (a) An officer or employee
of an issuer commits an offense if the officer or employee
intentionally or knowingly makes or authorizes separate, sequential,
or component purchases to avoid the competitive bidding requirements
of Section 271.054. An offense under this subsection is a Class B
misdemeanor.
(b) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 285, Sec. 24,
eff. September 1, 2011.
(c) An officer or employee of an issuer commits an offense if
the officer or employee intentionally or knowingly violates this
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subchapter, other than by conduct described by Subsection (a).
An offense under this subsection is a Class C misdemeanor.
Added by Acts 1989, 71st Leg., ch. 1250, Sec. 18, eff. Sept. 1, 1989.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 285 (H.B. 1694), Sec. 20, eff.
September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 285 (H.B. 1694), Sec. 24, eff.
September 1, 2011.
SUBCHAPTER D. STATE COOPERATION IN LOCAL PURCHASING PROGRAMS
Sec. 271.081. DEFINITION. In this subchapter, "local
government" means a county, municipality, special district, school
district, junior college district, a local workforce development board
created under Section 2308.253, Government Code, or other legally
constituted political subdivision of the state.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 2001, 77th Leg., ch. 1004, Sec. 4, eff. Sept. 1, 2001.
Sec. 271.082. PURCHASING PROGRAM. (a) The comptroller shall
establish a program by which the comptroller performs purchasing
services for local governments. The services must include:
(1) the extension of state contract prices to
participating local governments when the comptroller considers it
feasible;
(2) solicitation of bids on items desired by local
governments if the solicitation is considered feasible by the
comptroller and is desired by the local government; and
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(3) provision of information and technical assistance to
local governments about the purchasing program.
(b) The comptroller may charge a participating local government
an amount not to exceed the actual costs incurred by the comptroller
in providing purchasing services to the local government under the
program.
(c) The comptroller may adopt rules and procedures necessary to
administer the purchasing program. Before adopting a rule under this
subsection, the comptroller must conduct a public hearing regarding
the proposed rule regardless of whether the requirements of Section
2001.029(b), Government Code, are met.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 937 (H.B. 3560), Sec. 1.103,
eff. September 1, 2007.
Sec. 271.083. LOCAL GOVERNMENT PARTICIPATION. (a) A local
government may participate in the purchasing program of the
commission, including participation in purchases that use the reverse
auction procedure, as defined by Section 2155.062(d), Government Code,
by filing with the commission a resolution adopted by the governing
body of the local government requesting that the local government be
allowed to participate on a voluntary basis, and to the extent the
commission deems feasible, and stating that the local government will:
(1) designate an official to act for the local government
in all matters relating to the program, including the purchase of
items from the vendor under any contract, and that the governing body
will direct the decisions of the representative;
(2) be responsible for:
(A) submitting requisitions to the commission under
any contract; or
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(B) electronically sending purchase orders directly
to vendors, or complying with commission procedures governing a
reverse auction purchase, and electronically sending to the commission
reports on actual purchases made under this paragraph that provide the
information and are sent at the times required by the commission;
(3) be responsible for making payment directly to the
vendor; and
(4) be responsible for the vendor's compliance with all
conditions of delivery and quality of the purchased item.
(b) A local government that purchases an item under a state
contract or under a reverse auction procedure, as defined by Section
2155.062(d), Government Code, sponsored by the commission satisfies
any state law requiring the local government to seek competitive bids
for the purchase of the item.
(c) Repealed by Acts 2009, 81st Leg., R.S., Ch. 393, Sec. 3.07
(2), eff. September 1, 2009.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1991, 72nd Leg., ch. 428, Sec. 1, eff. Aug. 26, 1991; Acts 1995,
74th Leg., ch. 746, Sec. 6, eff. Aug. 28, 1995; Acts 1997, 75th Leg.,
ch. 494, Sec. 5, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 436,
Sec. 5, eff. May 28, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 393 (H.B. 1705), Sec. 3.07(2),
eff. September 1, 2009.
SUBCHAPTER E. STATE INTERCEPT TO INCREASE CREDIT RATING
Sec. 271.091. DEFINITIONS. In this subchapter:
(1) "Local government" means a municipality, county, or
hospital district of the State of Texas.
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(2) "Payment" means the local sales and use tax authorized
by the Municipal Sales and Use Tax Act (Chapter 321, Tax Code), the
County Sales and Use Tax Act (Chapter 323, Tax Code), and Subchapter
E, Chapter 285, Health and Safety Code.
(3) "Paying agent" means the financial institution that is
designated by a local government as its agent for the payment of the
principal of and interest on the obligation.
(4) "Obligation" means bonds, notes, certificates of
obligation, and other obligations authorized to be issued by the local
government.
(5) "Agreement" means the document referred to in Section
271.092 and Section 271.093.
(6) "Board" means the Bond Review Board.
(7) "Comptroller" means the comptroller of public accounts.
Added by Acts 1993, 73rd Leg., ch. 827, Sec. 1, eff. Aug. 30, 1993.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.299, eff. Sept. 1,
2001.
Sec. 271.092. AGREEMENT WITH TEXAS BOND REVIEW BOARD AND
COMPTROLLER. Prior to the issuance of any obligation, the governing
body of any local government may notify the board of the proposed
issuance of an obligation and enter into an agreement with the board
to authorize and direct the comptroller to withhold from such local
government sufficient money from any payment to which such local
government may be entitled and apply so much as shall be necessary to
pay the principal of and interest on such obligation then due and to
continue withholding additional payments until an amount sufficient to
satisfy the amount then due has been met.
Added by Acts 1993, 73rd Leg., ch. 827, Sec. 1, eff. Aug. 30, 1993.
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Sec. 271.093. FORM OF AGREEMENT; CONDITIONS. (a) The
agreement shall set forth the following:
(1) the proposed date of issuance of the obligation and
the name and series of the proposed obligation;
(2) each payment date with respect to the obligation and
the principal of and interest on the obligation coming due on each
such date; and
(3) the name and address of the financial institution
serving as paying agent for the obligation to whom any payment by the
comptroller should be made.
(b) This subchapter does not require or permit the state to
make an appropriation to any local government and shall not be
construed as creating an indebtedness of the state. Any agreement
made pursuant to this subchapter shall contain a statement to that
effect.
(c) The agreement terminates at the time the final payment of
the principal of and interest on the obligation is made or the
obligation is refunded.
Added by Acts 1993, 73rd Leg., ch. 827, Sec. 1, eff. Aug. 30, 1993.
Sec. 271.094. NOTICE, DEPOSIT OF DEBT SERVICE, AUTHORIZATION,
AND TRANSMITTAL. (a) If a local government enters into an agreement
with the board under Section 271.092, the board on notification from
the local government, the custodian bank, or the paying agent for the
local government that the local government is unable or has failed to
pay amounts as required by the agreement or to pay principal of or
interest on the obligation when due, shall notify the comptroller, who
shall withhold sufficient money from any payment to which such local
government may be entitled and apply so much thereof as shall be
necessary to pay the amounts then due as provided in this section.
(b) The local government may in the agreement agree to make
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monthly deposits of one-sixth of the semiannual debt service
requirement, or such other amount at such other times as specified in
the agreement, into an interest and sinking fund in a custodian bank.
If a bank agrees to serve as custodian for the interest and sinking
fund, it shall be the duty of the bank to notify the board if the
agreed upon amount of funds is not deposited each month or other
specified time on a timely basis as specified in the agreement.
(c) On receiving notification and direction from the board, the
comptroller is authorized to withhold from any payment an amount equal
to the amount to have been deposited by the local government pursuant
to the agreement. The comptroller shall continue to withhold payments
until the required amounts have been deposited in the interest and
sinking fund with the custodian bank or with the paying agent. If the
required amounts have not been deposited at the time interest on or
principal of the obligation of the local government is required to be
deposited pursuant to the agreement, the comptroller shall transmit,
from payments withheld, the appropriate amount to the custodian bank
or to the paying agent, as directed by the board.
(d) The board shall cause a copy of any notice given pursuant
to this section to be promptly given to the local government.
Added by Acts 1993, 73rd Leg., ch. 827, Sec. 1, eff. Aug. 30, 1993.
Sec. 271.095. RIGHT TO PLEDGE PAYMENTS. (a) The local
government may pledge payments to secure any obligation only if the
amount of payments received by the local government in the fiscal year
of the state preceding the proposed issuance equals or exceeds the
amount required in each year to pay the sum of an amount equal to two
times (i) the maximum annual principal and interest requirements for
the obligation, and (ii) the maximum annual principal and interest
requirements on any additional obligation for which payments have been
pledged. The local government shall provide evidence that these
requirements are met.
(b) A pledge of payments pursuant to this subchapter is a first
priority for application of payments and the comptroller shall apply
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such payments as provided by this subchapter prior to applying
such payments pursuant to any other authorization to withhold or
intercept such payments.
(c) While obligations which are the subject of an agreement
remain outstanding, the local government may not repeal the sales tax
or reduce the rate of the sales tax below the rate that would provide
the amount required by Subsection (a), except as provided by this
subsection. If at an election duly held in accordance with law a
majority of the qualified voters approve the repeal of the sales tax,
the local government shall, at the earliest practicable time, refund
or defease the obligations, and after such defeasance or refunding the
repeal shall become effective in accordance with law. If the
qualified voters vote to reduce the rate of the sales tax, if such is
provided for by law, below that which is required to provide the
amount required by Subsection (a), the local government shall, at the
earliest practicable time, refund or defease the obligations, and
after such defeasance or refunding the reduction in rate shall become
effective in accordance with law.
Added by Acts 1993, 73rd Leg., ch. 827, Sec. 1, eff. Aug. 30, 1993.
Sec. 271.096. ADMINISTRATION, RULES, FEES. The board shall
administer the implementation of this subchapter and may adopt rules
and set fees necessary for its administration.
Added by Acts 1993, 73rd Leg., ch. 827, Sec. 1, eff. Aug. 30, 1993.
SUBCHAPTER F. COOPERATIVE PURCHASING PROGRAM
Sec. 271.101. DEFINITIONS. In this subchapter:
(1) "Local cooperative organization" means an organization
of governments established to provide local governments access to
contracts with vendors for the purchase of materials, supplies,
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services, or equipment.
(2) "Local government" means a county, municipality,
special district, school district, junior college district, regional
planning commission, or other political subdivision of the state.
Added by Acts 1995, 74th Leg., ch. 746, Sec. 7, eff. Aug. 28, 1995.
Sec. 271.102. COOPERATIVE PURCHASING PROGRAM PARTICIPATION.
(a) A local government may participate in a cooperative purchasing
program with another local government of this state or another state
or with a local cooperative organization of this state or another
state.
(b) A local government that is participating in a cooperative
purchasing program may sign an agreement with another participating
local government or a local cooperative organization stating that the
signing local government will:
(1) designate a person to act under the direction of, and
on behalf of, that local government in all matters relating to the
program;
(2) make payments to another participating local
government or a local cooperative organization or directly to a vendor
under a contract made under this subchapter, as provided in the
agreement between the participating local governments or between a
local government and a local cooperative organization; and
(3) be responsible for a vendor's compliance with
provisions relating to the quality of items and terms of delivery, to
the extent provided in the agreement between the participating local
governments or between a local government and a local cooperative
organization.
(c) A local government that purchases goods or services under
this subchapter satisfies any state law requiring the local government
to seek competitive bids for the purchase of the goods or services.
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Added by Acts 1995, 74th Leg., ch. 746, Sec. 7, eff. Aug. 28, 1995.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 261 (S.B. 1281), Sec. 1, eff.
May 29, 2015.
SUBCHAPTER G. PURCHASES FROM FEDERAL SCHEDULE SOURCES OF SUPPLY
Sec. 271.103. FEDERAL SUPPLY SCHEDULE SOURCES. (a) A local
government may purchase goods or services available under Federal
supply schedules of the United States General Services Administration
to the extent permitted by federal law.
(b) A local government that purchases goods or services under
this subchapter satisfies any state law requiring the local government
to seek competitive bids for the purchase of the goods or services.
Added by Acts 1997, 75th Leg., ch. 826, Sec. 2, eff. June 18, 1997.
SUBCHAPTER I. ADJUDICATION OF CLAIMS ARISING UNDER WRITTEN
CONTRACTS WITH LOCAL GOVERNMENTAL ENTITIES
Sec. 271.151. DEFINITIONS. In this subchapter:
(1) "Adjudication" of a claim means the bringing of a
civil suit and prosecution to final judgment in county or state court
and includes the bringing of an authorized arbitration proceeding and
prosecution to final resolution in accordance with any mandatory
procedures established in the contract subject to this subchapter for
the arbitration proceedings.
(2) "Contract subject to this subchapter" means:
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(A) a written contract stating the essential terms of
the agreement for providing goods or services to the local
governmental entity that is properly executed on behalf of the local
governmental entity; or
(B) a written contract, including a right of first
refusal, regarding the sale or delivery of not less than 1,000 acre-
feet of reclaimed water by a local governmental entity intended for
industrial use.
(3) "Local governmental entity" means a political
subdivision of this state, other than a county or a unit of state
government, as that term is defined by Section 2260.001, Government
Code, including a:
(A) municipality;
(B) public school district and junior college
district; and
(C) special-purpose district or authority, including
any levee improvement district, drainage district, irrigation
district, water improvement district, water control and improvement
district, water control and preservation district, freshwater supply
district, navigation district, conservation and reclamation district,
soil conservation district, communication district, public health
district, emergency service organization, and river authority.
Added by Acts 2005, 79th Leg., Ch. 604 (H.B. 2039), Sec. 1, eff.
September 1, 2005.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1138 (H.B. 3511), Sec. 2, eff.
June 14, 2013.
Sec. 271.152. WAIVER OF IMMUNITY TO SUIT FOR CERTAIN CLAIMS. A
local governmental entity that is authorized by statute or the
constitution to enter into a contract and that enters into a contract
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subject to this subchapter waives sovereign immunity to suit for
the purpose of adjudicating a claim for breach of the contract,
subject to the terms and conditions of this subchapter.
Added by Acts 2005, 79th Leg., Ch. 604 (H.B. 2039), Sec. 1, eff.
September 1, 2005.
Sec. 271.153. LIMITATIONS ON ADJUDICATION AWARDS. (a) Except
as provided by Subsection (c), the total amount of money awarded in an
adjudication brought against a local governmental entity for breach of
a contract subject to this subchapter is limited to the following:
(1) the balance due and owed by the local governmental
entity under the contract as it may have been amended, including any
amount owed as compensation for the increased cost to perform the work
as a direct result of owner-caused delays or acceleration;
(2) the amount owed for change orders or additional work
the contractor is directed to perform by a local governmental entity
in connection with the contract;
(3) reasonable and necessary attorney's fees that are
equitable and just; and
(4) interest as allowed by law, including interest as
calculated under Chapter 2251, Government Code.
(b) Damages awarded in an adjudication brought against a local
governmental entity arising under a contract subject to this
subchapter may not include:
(1) consequential damages, except as expressly allowed
under Subsection (a)(1);
(2) exemplary damages; or
(3) damages for unabsorbed home office overhead.
(c) Actual damages, specific performance, or injunctive relief
may be granted in an adjudication brought against a local governmental
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entity for breach of a contract described by Section 271.151(2)
(B).
Added by Acts 2005, 79th Leg., Ch. 604 (H.B. 2039), Sec. 1, eff.
September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1266 (H.B. 987), Sec. 8, eff.
June 19, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 226 (H.B. 345), Sec. 1, eff.
September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1138 (H.B. 3511), Sec. 3, eff.
June 14, 2013.
Sec. 271.154. CONTRACTUAL ADJUDICATION PROCEDURES ENFORCEABLE.
Adjudication procedures, including requirements for serving notices or
engaging in alternative dispute resolution proceedings before bringing
a suit or an arbitration proceeding, that are stated in the contract
subject to this subchapter or that are established by the local
governmental entity and expressly incorporated into the contract or
incorporated by reference are enforceable except to the extent those
procedures conflict with the terms of this subchapter.
Added by Acts 2005, 79th Leg., Ch. 604 (H.B. 2039), Sec. 1, eff.
September 1, 2005.
Sec. 271.155. NO WAIVER OF OTHER DEFENSES. This subchapter
does not waive a defense or a limitation on damages available to a
party to a contract, other than a bar against suit based on sovereign
immunity.
Added by Acts 2005, 79th Leg., Ch. 604 (H.B. 2039), Sec. 1, eff.
September 1, 2005.
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Sec. 271.156. NO WAIVER OF IMMUNITY TO SUIT IN FEDERAL COURT.
This subchapter does not waive sovereign immunity to suit in federal
court.
Added by Acts 2005, 79th Leg., Ch. 604 (H.B. 2039), Sec. 1, eff.
September 1, 2005.
Sec. 271.157. NO WAIVER OF IMMUNITY TO SUIT FOR TORT
LIABILITY. This subchapter does not waive sovereign immunity to suit
for a cause of action for a negligent or intentional tort.
Added by Acts 2005, 79th Leg., Ch. 604 (H.B. 2039), Sec. 1, eff.
September 1, 2005.
Sec. 271.158. NO GRANT OF IMMUNITY TO SUIT. Nothing in this
subchapter shall constitute a grant of immunity to suit to a local
governmental entity.
Added by Acts 2005, 79th Leg., Ch. 604 (H.B. 2039), Sec. 1, eff.
September 1, 2005.
Sec. 271.160. JOINT ENTERPRISE. A contract entered into by a
local government entity is not a joint enterprise for liability
purposes.
Added by Acts 2005, 79th Leg., Ch. 604 (H.B. 2039), Sec. 1, eff.
September 1, 2005.
SUBCHAPTER J. DESIGN-BUILD PROCEDURES FOR CERTAIN CIVIL WORKS PROJECTS
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Sec. 271.181. DEFINITIONS. In this subchapter:
Without reference to the amendment of this subdivision, this
subchapter was repealed by Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B.
628), Sec. 5.01(3), eff. September 1, 2011
(2) "Civil works project" means:
(A) roads, streets, bridges, utilities, water supply
projects, water plants, wastewater plants, water distribution and
wastewater conveyance facilities, desalination projects, wharves,
docks, navigation channels, dredge material placement areas, airport
runways and taxiways, storm drainage and flood control projects, or
transit projects;
(B) types of projects or facilities related to those
described by Paragraph (A) and associated with civil engineering
construction; and
(C) buildings or structures that are incidental to
projects or facilities that are described by Paragraphs (A) and (B)
and that are primarily civil engineering construction projects.
(6) "Local governmental entity" means a municipality, a
county, a river authority, a defense base development authority
established under Chapter 379B, a board of trustees under Chapter 54,
Transportation Code, a municipally owned water utility with a separate
governing board appointed by the governing body of a municipality, or
any other special district or authority authorized by law to enter
into a public works contract for a civil works project. The term does
not include a regional tollway authority created under Chapter 366,
Transportation Code, a regional mobility authority created under
Chapter 370, Transportation Code, or a water district or authority
created under Section 52, Article III, or Section 59, Article XVI,
Texas Constitution, with a population of less than 50,000.
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Added by Acts 2007, 80th Leg., R.S., Ch. 1213 (H.B. 1886), Sec. 6,
eff. September 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 285 (H.B. 1694), Sec. 21, eff.
September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1027 (H.B. 2770), Sec. 1, eff.
June 17, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 5.01(3),
eff. September 1, 2011.
Without reference to the amendment of this section, this subchapter
was repealed by Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec.
5.01(3) effective September 1, 2011
Sec. 271.182. APPLICABILITY. (a) This subchapter applies to:
(1) a local governmental entity with a population of more
than 100,000 within its geographic boundaries or service area;
(2) a board of trustees under Chapter 54, Transportation
Code; and
(3) a municipally owned combined electric, water, and
wastewater utility situated in an economically distressed area and
located within 30 miles of the Lower Texas Gulf Coast.
Text of subsection as amended by Acts 2011, 82nd Leg., R.S., Ch. 1027
(H.B. 2770), Sec. 2, eff. June 17, 2011
(b) For purposes of Subsection (a), "combined" means that the
utilities are managed and controlled by one board whose members are
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appointed by the governing body of the municipality and that the
financing of capital improvements is secured from the revenue of all
three utilities.
Text of subsection as amended by Acts 2011, 82nd Leg., R.S., Ch. 285
(H.B. 1694), Sec. 22, eff. September 1, 2011
(b) For purposes of Subsection (a)(3), "combined" means that
the utilities are managed and controlled by one board whose members
are appointed by the governing body of the municipality and that the
financing of capital improvements is secured from the revenue of all
three utilities.
Added by Acts 2007, 80th Leg., R.S., Ch. 1213 (H.B. 1886), Sec. 6,
eff. September 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 135 (S.B. 1047), Sec. 1, eff.
May 23, 2009.
Acts 2009, 81st Leg., R.S., Ch. 725 (S.B. 229), Sec. 1, eff.
June 19, 2009.
Reenacted and amended by Acts 2011, 82nd Leg., R.S., Ch. 285 (H.B.
1694), Sec. 22, eff. September 1, 2011.
Reenacted and amended by Acts 2011, 82nd Leg., R.S., Ch. 1027 (H.B.
2770), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 5.01(3),
eff. September 1, 2011.
Without reference to the amendment of this section, this subchapter
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was repealed by Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec.
5.01(3) effective September 1, 2011
Sec. 271.186. LIMITATION ON NUMBER OF PROJECTS.
Text of subsection as amended by Acts 2011, 82nd Leg., R.S., Ch. 1027
(H.B. 2770), Sec. 3
(a) During the first four years that this subchapter applies to
a local governmental entity under Section 271.182:
(1) a local governmental entity with a population of
500,000 or more may, under this subchapter, enter into contracts for
not more than three projects in any fiscal year;
(2) a local governmental entity with a population of
100,000 or more but less than 500,000 or a board of trustees under
Chapter 54, Transportation Code, may, under this subchapter, enter
into contracts for not more than two projects in any fiscal year; and
(3) a municipally owned water utility with a separate
governing board appointed by the governing body of a municipality with
a population of 500,000 or more may:
(A) independently enter into a contract for not more
than one civil works project in any fiscal year; and
(B) enter into contracts for additional civil works
projects in any fiscal year, but not more than the number of civil
works projects prescribed by the limit in Subdivision (1) for the
municipality, provided that:
(i) the additional contracts for the civil works
projects entered into by the utility under this paragraph are
allocated to the number of contracts the municipality that appoints
the utility's governing board may enter under Subdivision (1); and
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(ii) the governing body of the municipality must
approve the contracts.
Text of subsection as amended by Acts 2011, 82nd Leg., R.S., Ch. 285
(H.B. 1694), Sec. 23
(a) During the first four years that this subchapter applies to
a local governmental entity under Section 271.182:
(1) a local governmental entity with a population of
500,000 or more may, under this subchapter, enter into contracts for
not more than three projects in any fiscal year;
(2) a local governmental entity with a population of
100,000 or more but less than 500,000 and a board of trustees under
Chapter 54, Transportation Code, may, under this subchapter, enter
into contracts for not more than two projects in any fiscal year; and
(3) a municipally owned water utility with a separate
governing board appointed by the governing body of a municipality with
a population of 500,000 or more may:
(A) independently enter into a contract for not more
than one civil works project in any fiscal year; and
(B) enter into contracts for additional civil works
projects in any fiscal year, but not more than the number of civil
works projects prescribed by the limit in Subdivision (1) for the
municipality, provided that:
(i) the additional contracts for the civil works
projects entered into by the utility under this paragraph are
allocated to the number of contracts the municipality that appoints
the utility's governing board may enter under Subdivision (1); and
(ii) the governing body of the municipality must
approve the contracts.
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Text of subsection as amended by Acts 2011, 82nd Leg., R.S., Ch. 1027
(H.B. 2770), Sec. 3
(b) After the period described by Subsection (a):
(1) a local governmental entity with a population of
500,000 or more may, under this subchapter, enter into contracts for
not more than six projects in any fiscal year;
(2) a local governmental entity with a population of
100,000 or more but less than 500,000 or a board of trustees under
Chapter 54, Transportation Code, may, under this subchapter, enter
into contracts for not more than four projects in any fiscal year; and
(3) a municipally owned water utility with a separate
governing board appointed by the governing body of a municipality with
a population of 500,000 or more may:
(A) independently enter into contracts for not more
than two civil works projects in any fiscal year; and
(B) enter into contracts for additional civil works
projects in any fiscal year, but not more than the number of civil
works projects prescribed by the limit in Subdivision (1) for the
municipality, provided that:
(i) the additional contracts for the civil works
projects entered into by the utility under this paragraph are
allocated to the number of contracts the municipality that appoints
the utility's governing board may enter under Subdivision (1); and
(ii) the governing body of the municipality must
approve the contracts.
Text of subsection as amended by Acts 2011, 82nd Leg., R.S., Ch. 285
(H.B. 1694), Sec. 23
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(b) After the period described by Subsection (a):
(1) a local governmental entity with a population of
500,000 or more may, under this subchapter, enter into contracts for
not more than six projects in any fiscal year;
(2) a local governmental entity with a population of
100,000 or more but less than 500,000 and a board of trustees under
Chapter 54, Transportation Code, may, under this subchapter, enter
into contracts for not more than four projects in any fiscal year; and
(3) a municipally owned water utility with a separate
governing board appointed by the governing body of a municipality with
a population of 500,000 or more may:
(A) independently enter into contracts for not more
than two civil works projects in any fiscal year; and
(B) enter into contracts for additional civil works
projects in any fiscal year, but not more than the number of civil
works projects prescribed by the limit in Subdivision (1) for the
municipality, provided that:
(i) the additional contracts for the civil works
projects entered into by the utility under this paragraph are
allocated to the number of contracts the municipality that appoints
the utility's governing board may enter under Subdivision (1); and
(ii) the governing body of the municipality must
approve the contracts.
Added by Acts 2007, 80th Leg., R.S., Ch. 1213 (H.B. 1886), Sec. 6,
eff. September 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 285 (H.B. 1694), Sec. 23, eff.
September 1, 2011.
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Acts 2011, 82nd Leg., R.S., Ch. 1027 (H.B. 2770), Sec. 3, eff.
June 17, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 5.01(3),
eff. September 1, 2011.
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
Sec. 271.901. PROCEDURE FOR AWARDING CONTRACT IF MUNICIPALITY
OR DISTRICT RECEIVES IDENTICAL BIDS. (a) If a municipality or
district is required to accept bids on a contract and receives two or
more bids from responsible bidders that are identical, in nature and
amount, as the lowest and best bids, the governing body of the
municipality or district shall enter into a contract with only one of
those bidders and must reject all other bids.
(b) If only one of the bidders submitting identical bids is a
resident of the municipality or district, the municipality or district
must select that bidder. If two or more of the bidders submitting
identical bids are residents of the municipality or district, the
municipality or district must select one of those bidders by the
casting of lots. In all other cases, the municipality or district
must select from the identical bids by the casting of lots.
(c) The casting of lots must be in a manner prescribed by the
mayor of the municipality or the governing body of the district and
must be conducted in the presence of the governing body of the
municipality or district. All qualified bidders or their legal
representatives may be present at the casting of lots.
(d) This section does not prohibit a municipality or district
from rejecting all bids.
(e) This section applies to all municipalities and districts
required by general or special law or by municipal ordinance or
charter to accept bids and award contracts on the basis of the lowest
and best bid, but does not apply to bidding for contracts to act as a
depository for public funds or as a depository for school funds under
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Subchapter G, Chapter 45, Education Code.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1989, 71st Leg., ch. 1, Sec. 62(a), eff. Aug. 28, 1989; Acts
1997, 75th Leg., ch. 165, Sec. 6.71, eff. Sept. 1, 1997.
Sec. 271.902. PROHIBITION OF CONFLICT OF INTEREST IN PURCHASE
BY MUNICIPALITY OR COUNTY FROM COOPERATIVE ASSOCIATIONS. If a member
of the governing body or an appointed board or commission of a
municipality or county belongs to a cooperative association, the
municipality or county may purchase equipment or supplies from the
association only if no member of the governing body, board, or
commission will receive a pecuniary benefit from the purchase, other
than as reflected in an increase in dividends distributed generally to
members of the association.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 271.903. COMMITMENT OF CURRENT REVENUE. (a) If a
contract for the acquisition, including lease, of real or personal
property retains to the governing body of a local government the
continuing right to terminate at the expiration of each budget period
of the local government during the term of the contract, is
conditioned on a best efforts attempt by the governing body to obtain
and appropriate funds for payment of the contract, or contains both
the continuing right to terminate and the best efforts conditions, the
contract is a commitment of the local government's current revenues
only.
(b) In this section, "local government" means a municipality,
county, school district, special purpose district or authority, or
other political subdivision of this state.
Added by Acts 1993, 73rd Leg., ch. 104, Sec. 2, eff. May 7, 1993.
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Sec. 271.904. ENGINEERING OR ARCHITECTURAL SERVICES CONTRACTS:
INDEMNIFICATION LIMITATIONS; DUTIES OF ENGINEER OR ARCHITECT. (a) A
covenant or promise in, in connection with, or collateral to a
contract for engineering or architectural services to which a
governmental agency is a party is void and unenforceable if the
covenant or promise provides that a licensed engineer or registered
architect whose work product is the subject of the contract must
indemnify or hold harmless the governmental agency against liability
for damage, other than liability for damage to the extent that the
damage is caused by or results from an act of negligence, intentional
tort, intellectual property infringement, or failure to pay a
subcontractor or supplier committed by the indemnitor or the
indemnitor's agent, consultant under contract, or another entity over
which the indemnitor exercises control.
(b) Except as provided by Subsection (c), a covenant or promise
in, in connection with, or collateral to a contract for engineering or
architectural services to which a governmental agency is a party is
void and unenforceable if the covenant or promise provides that a
licensed engineer or registered architect whose work product is the
subject of the contract must defend a party, including a third party,
against a claim based wholly or partly on the negligence of, fault of,
or breach of contract by the governmental agency, the agency's agent,
the agency's employee, or other entity, excluding the engineer or
architect or that person's agent, employee, or subconsultant, over
which the governmental agency exercises control. A covenant or
promise may provide for the reimbursement of a governmental agency's
reasonable attorney's fees in proportion to the engineer's or
architect's liability.
(c) Notwithstanding Subsection (b), a governmental agency may
require in a contract for engineering or architectural services to
which the governmental agency is a party that the engineer or
architect name the governmental agency as an additional insured under
the engineer's or architect's general liability insurance policy and
provide any defense provided by the policy.
(d) A contract for engineering or architectural services to
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which a governmental agency is a party must require a licensed
engineer or registered architect to perform services:
(1) with the professional skill and care ordinarily
provided by competent engineers or architects practicing in the same
or similar locality and under the same or similar circumstances and
professional license; and
(2) as expeditiously as is prudent considering the
ordinary professional skill and care of a competent engineer or
architect.
(e) In a contract for engineering or architectural services to
which a governmental agency is a party, a provision establishing a
different standard of care than a standard described by Subsection (d)
is void and unenforceable. If a contract contains a void and
unenforceable provision, the standard of care described by Subsection
(d) applies.
(f) In this section, "governmental agency" has the meaning
assigned by Section 271.003.
Added by Acts 1995, 74th Leg., ch. 746, Sec. 8, eff. Aug. 28, 1995.
Amended by Acts 2001, 77th Leg., ch. 351, Sec. 5, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1213 (H.B. 1886), Sec. 8, eff.
September 1, 2007.
Acts 2015, 84th Leg., R.S., Ch. 757 (H.B. 2049), Sec. 1, eff.
September 1, 2015.
Sec. 271.905. CONSIDERATION OF LOCATION OF BIDDER'S PRINCIPAL
PLACE OF BUSINESS. (a) In this section, "local government" means a
municipality, a county, or another political subdivision authorized
under this title to purchase real property or personal property that
is not affixed to real property. The term does not include a school
district.
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(b) In purchasing under this title any real property or
personal property that is not affixed to real property, if a local
government receives one or more bids from a bidder whose principal
place of business is in the local government and whose bid is within
three percent of the lowest bid price received by the local government
from a bidder who is not a resident of the local government, the local
government may enter into a contract with:
(1) the lowest bidder; or
(2) the bidder whose principal place of business is in the
local government if the governing body of the local government
determines, in writing, that the local bidder offers the local
government the best combination of contract price and additional
economic development opportunities for the local government created by
the contract award, including the employment of residents of the local
government and increased tax revenues to the local government.
(c) This section does not prohibit a local government from
rejecting all bids.
Added by Acts 1999, 76th Leg., ch. 996, Sec. 1, eff. Aug. 30, 1999.
Amended by Acts 2001, 77th Leg., ch. 480, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 513 (H.B. 1869), Sec. 1, eff.
June 17, 2011.
Sec. 271.9051. CONSIDERATION OF LOCATION OF BIDDER'S PRINCIPAL
PLACE OF BUSINESS IN CERTAIN MUNICIPALITIES. (a) This section
applies only to a municipality that is authorized under this title to
purchase real property or personal property that is not affixed to
real property.
(b) In purchasing under this title any real property, personal
property that is not affixed to real property, or services, if a
municipality receives one or more competitive sealed bids from a
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bidder whose principal place of business is in the municipality
and whose bid is within five percent of the lowest bid price received
by the municipality from a bidder who is not a resident of the
municipality, the municipality may enter into a contract for
construction services in an amount of less than $100,000 or a contract
for other purchases in an amount of less than $500,000 with:
(1) the lowest bidder; or
(2) the bidder whose principal place of business is in the
municipality if the governing body of the municipality determines, in
writing, that the local bidder offers the municipality the best
combination of contract price and additional economic development
opportunities for the municipality created by the contract award,
including the employment of residents of the municipality and
increased tax revenues to the municipality.
(c) This section does not prohibit a municipality from
rejecting all bids.
(d) This section does not apply to the purchase of
telecommunications services or information services, as those terms
are defined by 47 U.S.C. Section 153.
Added by Acts 2005, 79th Leg., Ch. 1205 (H.B. 664), Sec. 1, eff.
September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 660 (H.B. 2082), Sec. 1, eff.
June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1266 (H.B. 987), Sec. 9, eff.
June 19, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 513 (H.B. 1869), Sec. 2, eff.
June 17, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 2.12, eff.
September 1, 2011.
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Sec. 271.906. REVERSE AUCTION METHOD OF PURCHASING. (a) A
local government, as defined by Section 271.081, may use the reverse
auction procedure, as defined by Section 2155.062(d), Government Code,
in purchasing goods and services in place of any other method of
purchasing that would otherwise apply to the purchase.
(b) A local government that uses the reverse auction procedure
must include in the procedure a notice provision and other provisions
necessary to produce a method of purchasing that is advantageous to
the local government and fair to vendors.
Added by Acts 2001, 77th Leg., ch. 436, Sec. 6, eff. May 28, 2001.
Sec. 271.907. VENDORS THAT MEET OR EXCEED AIR QUALITY
STANDARDS. (a) In this section, "governmental agency" has the
meaning assigned by Section 271.003.
(b) This section applies only to a contract to be performed,
wholly or partly, in a nonattainment area or in an affected county, as
those terms are defined by Section 386.001, Health and Safety Code.
(c) A governmental agency procuring goods or services may:
(1) give preference to goods or services of a vendor that
demonstrates that the vendor meets or exceeds any state or federal
environmental standards, including voluntary standards, relating to
air quality; or
(2) require that a vendor demonstrate that the vendor
meets or exceeds any state or federal environmental standards,
including voluntary standards, relating to air quality.
(d) The preference may be given only if the cost to the
governmental agency for the goods or services would not exceed 105
percent of the cost of the goods or services provided by a vendor who
does not meet the standards.
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Added by Acts 2003, 78th Leg., ch. 1331, Sec. 20, eff. June 20, 2003.
Amended by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 14.02, eff.
Jan. 11, 2004; Acts 2003, 78th Leg., 3rd C.S., ch. 11, Sec. 2, eff.
Oct 20, 2003.
Sec. 271.908. LOCAL GOVERNMENT CONTRACTS WITH PRIVATE ENTITIES
FOR CIVIL WORKS PROJECTS AND IMPROVEMENTS TO REAL PROPERTY. (a) In
this section, "civil works project" and "local governmental entity"
have the meanings assigned by Section 271.181.
(b) A local governmental entity may contract with a private
entity to act as the local governmental entity's agent in the design,
development, financing, maintenance, operation, or construction,
including oversight and inspection, of:
(1) a civil works project; or
(2) an improvement to real property.
(c) A local governmental entity contracting under this section
shall:
(1) select the private entity based on the private
entity's qualifications and experience; and
(2) enter into a project development agreement with the
private entity.
(d) The selected private entity shall comply with:
(1) Chapters 1001 and 1051, Occupations Code;
(2) all laws relating to procurement of professional
services under Chapter 2254, Government Code; and
(3) all laws relating to procurement under this chapter
that apply to the local governmental entity that selected the private
entity.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1024 (H.B. 2729), Sec. 1,
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eff. June 17, 2011.
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
GOVERNMENT CODE
TITLE 10. GENERAL GOVERNMENT
SUBTITLE F. STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT
CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
SUBCHAPTER A. PROFESSIONAL SERVICES
Sec. 2254.001. SHORT TITLE. This subchapter may be cited as the
Professional Services Procurement Act.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Sec. 2254.002. DEFINITIONS. In this subchapter:
(1) "Governmental entity" means:
(A) a state agency or department;
(B) a district, authority, county, municipality, or other
political subdivision of the state;
(C) a local government corporation or another entity created by
or acting on behalf of a political subdivision in the planning and design of a
construction project; or
(D) a publicly owned utility.
(2) "Professional services" means services:
(A) within the scope of the practice, as defined by state law,
of:
(i) accounting;
(ii) architecture;
(iii) landscape architecture;
(iv) land surveying;
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
(v) medicine;
(vi) optometry;
(vii) professional engineering;
(viii) real estate appraising; or
(ix) professional nursing; or
(B) provided in connection with the professional employment or
practice of a person who is licensed or registered as:
(i) a certified public accountant;
(ii) an architect;
(iii) a landscape architect;
(iv) a land surveyor;
(v) a physician, including a surgeon;
(vi) an optometrist;
(vii) a professional engineer;
(viii) a state certified or state licensed real estate
appraiser; or
(ix) a registered nurse.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 244, Sec. 1, eff. Sept. 1, 1997; Acts 1999, 76th
Leg., ch. 1542, Sec. 1, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1409,
Sec. 8, eff. Sept. 1, 2001.
Sec. 2254.003. SELECTION OF PROVIDER; FEES. (a) A governmental entity
may not select a provider of professional services or a group or association of
providers or award a contract for the services on the basis of competitive bids
submitted for the contract or for the services, but shall make the selection
and award:
(1) on the basis of demonstrated competence and qualifications to
perform the services; and
(2) for a fair and reasonable price.
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
(b) The professional fees under the contract may not exceed any maximum
provided by law.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1213 (H.B. 1886), Sec. 14, eff. September
1, 2007.
Sec. 2254.0031. INDEMNIFICATION. A state governmental entity may require
a contractor selected under this subchapter to indemnify or hold harmless the
state from claims and liabilities resulting from the negligent acts or
omissions of the contractor or persons employed by the contractor. A state
governmental entity may not require a contractor to indemnify or hold harmless
the state for claims or liabilities resulting from the negligent acts or
omissions of the state governmental entity or its employees.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 1.37, eff. Sept. 1, 1999.
Sec. 2254.004. CONTRACT FOR PROFESSIONAL SERVICES OF ARCHITECT, ENGINEER,
OR SURVEYOR. (a) In procuring architectural, engineering, or land surveying
services, a governmental entity shall:
(1) first select the most highly qualified provider of those services
on the basis of demonstrated competence and qualifications; and
(2) then attempt to negotiate with that provider a contract at a fair
and reasonable price.
(b) If a satisfactory contract cannot be negotiated with the most highly
qualified provider of architectural, engineering, or land surveying services,
the entity shall:
(1) formally end negotiations with that provider;
(2) select the next most highly qualified provider; and
(3) attempt to negotiate a contract with that provider at a fair and
reasonable price.
(c) The entity shall continue the process described in Subsection (b) to
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
select and negotiate with providers until a contract is entered into.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 119, Sec. 1, eff. Sept. 1, 1997.
Sec. 2254.005. VOID CONTRACT. A contract entered into or an arrangement
made in violation of this subchapter is void as against public policy.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Sec. 2254.006. CONTRACT NOTIFICATION. A state agency, including an
institution of higher education as defined by Section 61.003, Education Code,
shall provide written notice to the Legislative Budget Board of a contract for
professional services, other than a contract for physician or optometric
services, if the amount of the contract, including an amendment, modification,
renewal, or extension of the contract, exceeds $14,000. The notice must be on a
form prescribed by the Legislative Budget Board and filed not later than the
10th day after the date the agency enters into the contract.
Added by Acts 1999, 76th Leg., ch. 281, Sec. 13, eff. Sept. 1, 1999.
Sec. 2254.007. DECLARATORY OR INJUNCTIVE RELIEF. (a) This subchapter
may be enforced through an action for declaratory or injunctive relief filed
not later than the 10th day after the date a contract is awarded.
(b) This section does not apply to the enforcement of a contract entered
into by a state agency as that term is defined by Section 2151.002. In this
subsection, "state agency" includes the Texas Building and Procurement
Commission.
Added by Acts 2007, 80th Leg., R.S., Ch. 1213 (H.B. 1886), Sec. 13, eff.
September 1, 2007.
SUBCHAPTER B. CONSULTING SERVICES
Sec. 2254.021. DEFINITIONS. In this subchapter:
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
(1) "Consulting service" means the service of studying or advising a
state agency under a contract that does not involve the traditional
relationship of employer and employee.
(2) "Major consulting services contract" means a consulting services
contract for which it is reasonably foreseeable that the value of the contract
will exceed $15,000, or $25,000 for an institution of higher education other
than a public junior college.
(3) "Consultant" means a person that provides or proposes to provide
a consulting service. The term includes a political subdivision but does not
include the federal government, a state agency, or a state governmental entity.
(4) "Political subdivision" means:
(A) a county;
(B) an incorporated or unincorporated municipality;
(C) a public junior college;
(D) a public school district or other educational or
rehabilitative district;
(E) a metropolitan or regional transit authority;
(F) an airport authority;
(G) a river authority or compact;
(H) a regional planning commission, a council of governments, or
a similar regional planning agency created under Chapter 391, Local Government
Code;
(I) the Edwards Aquifer Authority or a district governed by Title
4, Water Code;
(J) a soil and water conservation district;
(K) a county or municipal improvement district;
(L) a county road or road utility district;
(M) a county housing authority;
(N) an emergency services or communications district;
(O) a fire prevention district;
(P) a public health or hospital authority or district;
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
(Q) a mosquito control district;
(R) a special waste district;
(S) a rural rail transportation district; or
(T) any other local government or special district of this state.
(5) "State agency" has the meaning assigned by Section 2151.002.
(6) "State governmental entity" means a state department, commission,
board, office, institution, facility, or other agency the jurisdiction of which
is not limited to a geographical portion of the state. The term includes a
university system and an institution of higher education, other than a public
junior college, as defined by Section 61.003, Education Code. The term does
not include a political subdivision.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1995, 74th Leg., ch. 76, Sec. 5.44(a), eff. Sept. 1, 1995; Acts 1997,
75th Leg., ch. 165, Sec. 17.19(11), eff. Sept. 1, 1997; Acts 1997, 75th Leg.,
ch. 1035, Sec. 3, eff. June 19, 1997; Acts 2003, 78th Leg., ch. 1266, Sec.
1.02, eff. June 20, 2003.
Sec. 2254.022. INTERPRETATION OF SUBCHAPTER. (a) This subchapter shall
be interpreted to ensure:
(1) the greatest and fairest competition in the selection by state
agencies of consultants; and
(2) the giving of notice to all potential consultants of the need for
and opportunity to provide consulting services.
(b) This subchapter does not:
(1) discourage state agencies from using consultants if the agencies
reasonably foresee that the use of consultants will produce a more efficient
and less costly operation or project;
(2) prohibit the making of a sole-source contract for consulting
services if a proposal is not received from a competent, knowledgeable, and
qualified consultant at a reasonable fee, after compliance with this
subchapter; or
(3) require or prohibit the use of competitive bidding procedures to
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
purchase consulting services.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1035, Sec. 4, eff. June 19, 1997.
Sec. 2254.023. APPLICABILITY OF SUBCHAPTER. This subchapter applies to
consulting services that a state agency acquires with money:
(1) appropriated by the legislature;
(2) derived from the exercise of the statutory duties of a state
agency; or
(3) received from the federal government, unless a federal law or
regulation conflicts with the application of this subchapter.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Sec. 2254.024. EXEMPTIONS. (a) This subchapter does not apply to or
discourage the use of consulting services provided by:
(1) practitioners of professional services described in Subchapter A;
(2) private legal counsel;
(3) investment counselors;
(4) actuaries;
(5) medical or dental services providers; or
(6) other consultants whose services are determined by the governing
board of a retirement system trust fund to be necessary for the governing board
to perform its constitutional fiduciary duties, except that the governing board
shall comply with Section 2254.030.
(b) If the governor and comptroller consider it more advantageous to the
state to procure a particular consulting service under the procedures of
Chapters 2155-2158, instead of under this subchapter, they may make a
memorandum of understanding to that effect and each adopt the memorandum by
rule. Procurement of a consulting service described in a memorandum of
understanding under this subsection is subject only to Chapters 2155-2158.
(c) The comptroller by rule may define circumstances in which a state
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
agency may procure, without complying with this subchapter, certain consulting
services that will cost less than a minimum amount established by the
comptroller. The comptroller must determine that noncompliance in those
circumstances is more cost-effective for the state.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 165, Sec. 17.19(1), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 937 (H.B. 3560), Sec. 3.14, eff. September
1, 2007.
Sec. 2254.025. EMERGENCY WAIVER. (a) The governor, after receipt of a
request complying with this section, may grant a limited waiver of the
provisions of this subchapter for a state agency that requires consulting
services before compliance with this subchapter can be completed because of an
unforeseen emergency.
(b) A state agency's request for a waiver must include information
required by the governor, including:
(1) information about the nature of the emergency;
(2) the reason that the state agency did not foresee the emergency;
(3) the name of the consultant with whom the agency intends to
contract; and
(4) the amount of the intended contract.
(c) As soon as possible after the governor grants a limited waiver, a
state agency shall comply with this subchapter to the extent that the
requirements of this subchapter are not superfluous or ineffective because of
the waiver. The agency shall include with information filed with the secretary
of state for publication in the Texas Register a detailed description of the
emergency on which the request for waiver was predicated.
(d) The governor shall adopt rules to administer this section.
(e) In this section, "unforeseen emergency" means a situation that
suddenly and unexpectedly causes a state agency to need the services of a
consultant. The term includes the issuance of a court order, an actual or
imminent natural disaster, and new state or federal legislation. An emergency
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
is not unforeseen if a state agency was negligent in foreseeing the occurrence
of the emergency.
(f) This section applies to all consulting services contracts and
renewals, amendments, and extensions of consulting services contracts.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1035, Sec. 5, eff. June 19, 1997.
Sec. 2254.026. CONTRACT WITH CONSULTANT. A state agency may contract
with a consultant only if:
(1) there is a substantial need for the consulting services; and
(2) the agency cannot adequately perform the services with its own
personnel or obtain the consulting services through a contract with a state
governmental entity.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1035, Sec. 6, eff. June 19, 1997.
Sec. 2254.027. SELECTION OF CONSULTANT. In selecting a consultant, a
state agency shall:
(1) base its choice on demonstrated competence, knowledge, and
qualifications and on the reasonableness of the proposed fee for the services;
and
(2) if other considerations are equal, give preference to a
consultant whose principal place of business is in the state or who will manage
the consulting contract wholly from an office in the state.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1035, Sec. 7, eff. June 19, 1997.
Sec. 2254.028. NOTICE OF INTENT: MAJOR CONSULTING SERVICES CONTRACT.
(a) Before entering into a major consulting services contract, a state agency
shall:
(1) notify the Legislative Budget Board and the governor's Budget and
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
Planning Office that the agency intends to contract with a consultant;
(2) give information to the Legislative Budget Board and the
governor's Budget and Planning Office to demonstrate that the agency has
complied or will comply with Sections 2254.026 and 2254.027; and
(3) obtain a finding of fact from the governor's Budget and Planning
Office that the consulting services are necessary.
(b) A major consulting services contract that a state agency enters into
without first obtaining the finding required by Subsection (a)(3) is void.
(c) Subsection (a) does not apply to a major consulting services contract
to be entered into by an institution of higher education other than a public
junior college if the institution includes in the invitation published under
Section 2254.029 a finding by the chief executive officer of the institution
that the consulting services are necessary and an explanation of that finding.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1035, Sec. 8, eff. June 19, 1997; Acts 2003,
78th Leg., ch. 1266, Sec. 1.03, eff. June 20, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1049 (S.B. 5), Sec. 6.10, eff. June 17,
2011.
Sec. 2254.029. PUBLICATION IN TEXAS REGISTER BEFORE ENTERING INTO MAJOR
CONSULTING SERVICES CONTRACT. (a) Not later than the 30th day before the date
it enters into a major consulting services contract, a state agency shall file
with the secretary of state for publication in the Texas Register:
(1) an invitation for consultants to provide offers of consulting
services;
(2) the name of the individual who should be contacted by a
consultant that intends to make an offer;
(3) the closing date for the receipt of offers; and
(4) the procedure by which the state agency will award the contract.
(b) If the consulting services sought by a state agency relate to
services previously provided by a consultant, the agency shall disclose that
fact in the invitation required by Subsection (a). If the state agency intends
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
to award the contract for the consulting services to a consultant that
previously provided the services, unless a better offer is received, the agency
shall disclose its intention in the invitation required by Subsection (a).
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1035, Sec. 9, eff. June 19, 1997.
Sec. 2254.030. PUBLICATION IN TEXAS REGISTER AFTER ENTERING INTO MAJOR
CONSULTING SERVICES CONTRACT. Not later than the 20th day after the date of
entering into a major consulting services contract, the contracting state
agency shall file with the secretary of state for publication in the Texas
Register:
(1) a description of the activities that the consultant will conduct;
(2) the name and business address of the consultant;
(3) the total value and the beginning and ending dates of the
contract; and
(4) the dates on which documents, films, recordings, or reports that
the consultant is required to present to the agency are due.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1035, Sec. 10, eff. June 19, 1997; Acts 1999,
76th Leg., ch. 1467, Sec. 1.30, eff. Sept. 1, 1999.
Sec. 2254.0301. CONTRACT NOTIFICATION. (a) A state agency shall provide
written notice to the Legislative Budget Board of a contract for consulting
services if the amount of the contract, including an amendment, modification,
renewal, or extension of the contract, exceeds $14,000. The notice must be on
a form prescribed by the Legislative Budget Board and filed not later than the
10th day after the date the entity enters into the contract.
(b) This section does not apply to a university system or institution of
higher education. In this subsection, "institution of higher education" and
"university system" have the meanings assigned by Section 61.003, Education
Code.
Added by Acts 1999, 76th Leg., ch. 281, Sec. 14, eff. Sept. 1, 1999.
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1049 (S.B. 5), Sec. 6.11, eff. June 17,
2011.
Sec. 2254.031. RENEWAL; AMENDMENT; EXTENSION. (a) A state agency that
intends to renew a major consulting services contract shall:
(1) file with the secretary of state for publication in the Texas
Register the information required by Section 2254.030 not later than the 20th
day after the date the contract is renewed if the renewal contract is not a
major consulting services contract; or
(2) comply with Sections 2254.028 and 2254.029 if the renewal
contract is a major consulting services contract.
(b) A state agency that intends to renew a contract that is not a major
consulting services contract shall comply with Sections 2254.028 and 2254.029
if the original contract and the renewal contract have a reasonably foreseeable
value totaling more than $15,000, or $25,000 for an institution of higher
education other than a public junior college.
(c) A state agency that intends to amend or extend a major consulting
services contract shall:
(1) not later than the 20th day after the date the contract is
amended or extended, file the information required by Section 2254.030 with the
secretary of state for publication in the Texas Register if the contract after
the amendment or extension is not a major consulting services contract; or
(2) comply with Sections 2254.028 and 2254.029 if the contract after
the amendment or extension is a major consulting services contract.
(d) A state agency that intends to amend or extend a contract that is not
a major consulting services contract shall comply with Sections 2254.028 and
2254.029 if the original contract and the amendment or extension have a
reasonably foreseeable value totaling more than $15,000, or $25,000 for an
institution of higher education other than a public junior college.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1035, Sec. 11, eff. June 19, 1997; Acts 1999,
76th Leg., ch. 1467, Sec. 1.31, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch.
1266, Sec. 1.04, eff. June 20, 2003.
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
Sec. 2254.032. CONFLICTS OF INTEREST. (a) An officer or employee of a
state agency shall report to the chief executive of the agency, not later than
the 10th day after the date on which a private consultant submits an offer to
provide consulting services to the agency, any financial interest that:
(1) the officer or employee has in the private consultant who
submitted the offer; or
(2) an individual who is related to the officer or employee within
the second degree by consanguinity or affinity, as determined under Chapter
573, has in the private consultant who submitted the offer.
(b) This section applies to all consulting services contracts and
renewals, amendments, and extensions of consulting services contracts.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Sec. 2254.033. RESTRICTION ON FORMER EMPLOYEES OF A STATE AGENCY. (a)
An individual who offers to provide consulting services to a state agency and
who has been employed by that agency or by another agency at any time during
the two years preceding the making of the offer shall disclose in the offer:
(1) the nature of the previous employment with the agency or the
other agency;
(2) the date the employment was terminated; and
(3) the annual rate of compensation for the employment at the time of
its termination.
(b) A state agency that accepts an offer from an individual described in
Subsection (a) shall include in the information filed under Section 2254.030 a
statement about the individual's previous employment and the nature of the
employment.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Sec. 2254.034. CONTRACT VOID. (a) A contract entered into in violation
of Sections 2254.029 through 2254.031 is void.
(b) A contract entered into with a private consultant who did not comply
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
with Section 2254.033 is void.
(c) If a contract is void under this section:
(1) the comptroller may not draw a warrant or transmit money to
satisfy an obligation under the contract; and
(2) a state agency may not make any payment under the contract with
state or federal money or money held in or outside the state treasury.
(d) This section applies to all consulting services contracts, including
renewals, amendments, and extensions of consulting services contracts.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1999, 76th Leg., ch. 1467, Sec. 1.32, eff. June 19, 1999.
Sec. 2254.035. DIVIDING CONTRACTS. (a) A state agency may not divide a
consulting services contract into more than one contract to avoid the
requirements of this subchapter.
(b) This section applies to all consulting services contracts, including
renewals, amendments, and extensions of consulting services contracts.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Sec. 2254.036. ARCHIVES. (a) On request, a state agency shall, after
the agency's contract with a consultant has ended, supply the Legislative
Budget Board and the governor's Budget and Planning Office with copies of all
documents, films, recordings, or reports compiled by the consultant under the
contract.
(b) Copies of all documents, films, recordings, or reports compiled by
the consultant shall be filed with the Texas State Library and shall be
retained by the library for at least five years.
(c) The Texas State Library shall list each document, film, recording,
and report given to it under Subsection (b) and shall file the list at the end
of each calendar quarter with the secretary of state for publication in the
Texas Register.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1035, Sec. 12, eff. June 19, 1997.
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
Sec. 2254.037. REPORTS. As part of the biennial budgetary hearing
process conducted by the Legislative Budget Board and the governor's Budget and
Planning Office, a state agency shall report to the Legislative Budget Board
and the governor's Budget and Planning Office on any actions taken in response
to the recommendations of any consultant with whom the state agency contracts
during the previous biennium.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1997, 75th Leg., ch. 1035, Sec. 13, eff. June 19, 1997.
Sec. 2254.038. MIXED CONTRACTS. This subchapter applies to a contract
that involves both consulting and other services if the primary objective of
the contract is the acquisition of consulting services.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Sec. 2254.039. COMPTROLLER'S RULES. (a) The comptroller shall adopt
rules to implement and administer this subchapter. The comptroller's rules may
not conflict with or cover a matter on which this subchapter authorizes the
governor to adopt rules.
(b) The comptroller shall give proposed rules to the governor for review
and comment before adopting the rules.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 937 (H.B. 3560), Sec. 3.15, eff. September
1, 2007.
Sec. 2254.040. PROCUREMENT BY COMPTROLLER. (a) The comptroller may, on
request of a state agency, procure for the agency consulting services that are
covered by this subchapter.
(b) The comptroller may require reimbursement for the costs it incurs in
procuring the services.
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended
by Acts 1999, 76th Leg., ch. 426, Sec. 16, eff. June 18, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 937 (H.B. 3560), Sec. 1.75, eff. September
1, 2007.
Sec. 2254.041. DISTRIBUTION OF CONSULTANT REPORTS. (a) A consulting
services contract must include provisions that allow the state agency
contracting with the consultant and any other state agency and the legislature,
at the contracting state agency's discretion, to distribute the consultant
report, if any, and to post the report on the agency's Internet website or the
website of a standing committee of the legislature.
(b) This section does not affect the application of Chapter 552 to a
consultant's report.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1151 (S.B. 176), Sec. 1, eff. June
14, 2013.
SUBCHAPTER C. CONTINGENT FEE CONTRACT FOR LEGAL SERVICES
Sec. 2254.101. DEFINITIONS. In this subchapter:
(1) "Contingent fee" means that part of a fee for legal services,
under a contingent fee contract, the amount or payment of which is contingent
on the outcome of the matter for which the services were obtained.
(2) "Contingent fee contract" means a contract for legal services
under which the amount or the payment of the fee for the services is contingent
in whole or in part on the outcome of the matter for which the services were
obtained.
(3) "State governmental entity":
(A) means the state or a board, commission, department, office,
or other agency in the executive branch of state government created under the
constitution or a statute of the state, including an institution of higher
education as defined by Section 61.003, Education Code;
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
(B) includes the state when a state officer is bringing a parens
patriae proceeding in the name of the state; and
(C) does not include a state agency or state officer acting as a
receiver, special deputy receiver, liquidator, or liquidating agent in
connection with the administration of the assets of an insolvent entity under
Article 21.28, Insurance Code, or Chapter 36,66,96, or 126, Finance Code.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1, 1999.
Sec. 2254.102. APPLICABILITY. (a) This subchapter applies only to a
contingent fee contract for legal services entered into by a state governmental
entity.
(b) The legislature by this subchapter is providing, in accordance with
Section 44, Article III, Texas Constitution, for the manner in which and the
situations under which a state governmental entity may compensate a public
contractor under a contingent fee contract for legal services.
(c) This subchapter does not apply to a contract:
(1) with a state agency to collect an obligation under Section
2107.003(b), (c), or (c-1); or
(2) for legal services entered into by an institution of higher
education under Section 153.006, Education Code.
(d) This subchapter does not apply to a contract for legal services
entered into by the Teacher Retirement System of Texas if the services are paid
for from money that is not appropriated from the general revenue fund,
including funds of a trust administered by the retirement system.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1, 1999.
Amended by Acts 2003, 78th Leg., ch. 1266, Sec. 1.13, eff. June 20, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 1359 (S.B. 1691), Sec. 31, eff. September 1,
2005.
Acts 2007, 80th Leg., R.S., Ch. 1386 (S.B. 1615), Sec. 3, eff. September
1, 2007.
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
Sec. 2254.103. CONTRACT APPROVAL; SIGNATURE. (a) A state governmental
entity that has authority to enter into a contract for legal services in its
own name may enter into a contingent fee contract for legal services only if:
(1) the governing body of the state governmental entity approves the
contract and the approved contract is signed by the presiding officer of the
governing body; or
(2) for an entity that is not governed by a multimember governing
body, the elected or appointed officer who governs the entity approves and
signs the contract.
(b) The attorney general may enter into a contingent fee contract for
legal services in the name of the state in relation to a matter that has been
referred to the attorney general under law by another state governmental entity
only if the other state governmental entity approves and signs the contract in
accordance with Subsection (a).
(c) A state governmental entity, including the state, may enter into a
contingent fee contract for legal services that is not described by Subsection
(a) or (b) only if the governor approves and signs the contract.
(d) Before approving the contract, the governing body, elected or
appointed officer, or governor, as appropriate, must find that:
(1) there is a substantial need for the legal services;
(2) the legal services cannot be adequately performed by the
attorneys and supporting personnel of the state governmental entity or by the
attorneys and supporting personnel of another state governmental entity; and
(3) the legal services cannot reasonably be obtained from attorneys
in private practice under a contract providing only for the payment of hourly
fees, without regard to the outcome of the matter, because of the nature of the
matter for which the services will be obtained or because the state
governmental entity does not have appropriated funds available to pay the
estimated amounts required under a contract providing only for the payment of
hourly fees.
(e) Before entering into a contingent fee contract for legal services in
which the estimated amount that may be recovered exceeds $100,000, a state
governmental entity that proposes to enter into the contract in its own name or
in the name of the state must also notify the Legislative Budget Board that the
entity proposes to enter into the contract, send the board copies of the
proposed contract, and send the board information demonstrating that the
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
conditions required by Subsection (d)(3) exist. If the state governmental
entity finds under Subsection (d)(3) that the state governmental entity does
not have appropriated funds available to pay the estimated amounts required
under a contract for the legal services providing only for the payment of
hourly fees, the state governmental entity may not enter into the proposed
contract in its own name or in the name of the state unless the Legislative
Budget Board finds that the state governmental entity's finding with regard to
available appropriated funds is correct.
(f) A contingent fee contract for legal services that is subject to
Subsection (e) and requires a finding by the Legislative Budget Board is void
unless the board has made the finding required by Subsection (e).
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1, 1999.
Sec. 2254.104. TIME AND EXPENSE RECORDS REQUIRED; FINAL STATEMENT. (a)
The contract must require that the contracting attorney or law firm keep
current and complete written time and expense records that describe in detail
the time and money spent each day in performing the contract.
(b) The contracting attorney or law firm shall permit the governing body
or governing officer of the state governmental entity, the attorney general,
and the state auditor each to inspect or obtain copies of the time and expense
records at any time on request.
(c) On conclusion of the matter for which legal services were obtained,
the contracting attorney or law firm shall provide the contracting state
governmental entity with a complete written statement that describes the
outcome of the matter, states the amount of any recovery, shows the contracting
attorney's or law firm's computation of the amount of the contingent fee, and
contains the final complete time and expense records required by Subsection
(a). The complete written statement required by this subsection is public
information under Chapter 552 and may not be withheld from a requestor under
that chapter under Section 552.103 or any other exception from required
disclosure.
(d) This subsection does not apply to the complete written statement
required by Subsection (c). All time and expense records required under this
section are public information subject to required public disclosure under
Chapter 552. Information in the records may be withheld from a member of the
public under Section 552.103 only if, in addition to meeting the requirements
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
of Section 552.103, the chief legal officer or employee of the state
governmental entity determines that withholding the information is necessary to
protect the entity's strategy or position in pending or reasonably anticipated
litigation. Information withheld from public disclosure under this subsection
shall be segregated from information that is subject to required public
disclosure.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1, 1999.
Sec. 2254.105. CERTAIN GENERAL CONTRACT REQUIREMENTS. The contract must:
(1) provide for the method by which the contingent fee is computed;
(2) state the differences, if any, in the method by which the
contingent fee is computed if the matter is settled, tried, or tried and
appealed;
(3) state how litigation and other expenses will be paid and, if
reimbursement of any expense is contingent on the outcome of the matter or
reimbursable from the amount recovered in the matter, state whether the amount
recovered for purposes of the contingent fee computation is considered to be
the amount obtained before or after expenses are deducted;
(4) state that any subcontracted legal or support services performed
by a person who is not a contracting attorney or a partner, shareholder, or
employee of a contracting attorney or law firm is an expense subject to
reimbursement only in accordance with this subchapter; and
(5) state that the amount of the contingent fee and reimbursement of
expenses under the contract will be paid and limited in accordance with this
subchapter.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1, 1999.
Sec. 2254.106. CONTRACT REQUIREMENTS: COMPUTATION OF CONTINGENT FEE;
REIMBURSEMENT OF EXPENSES. (a) The contract must establish the reasonable
hourly rate for work performed by an attorney, law clerk, or paralegal who will
perform legal or support services under the contract based on the reasonable
and customary rate in the relevant locality for the type of work performed and
on the relevant experience, demonstrated ability, and standard hourly billing
rate, if any, of the person performing the work. The contract may establish
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
the reasonable hourly rate for one or more persons by name and may establish a
rate schedule for work performed by unnamed persons. The highest hourly rate
for a named person or under a rate schedule may not exceed $1,000 an hour.
This subsection applies to subcontracted work performed by an attorney, law
clerk, or paralegal who is not a contracting attorney or a partner,
shareholder, or employee of a contracting attorney or law firm as well as to
work performed by a contracting attorney or by a partner, shareholder, or
employee of a contracting attorney or law firm.
(b) The contract must establish a base fee to be computed as follows.
For each attorney, law clerk, or paralegal who is a contracting attorney or a
partner, shareholder, or employee of a contracting attorney or law firm,
multiply the number of hours the attorney, law clerk, or paralegal works in
providing legal or support services under the contract times the reasonable
hourly rate for the work performed by that attorney, law clerk, or paralegal.
Add the resulting amounts to obtain the base fee. The computation of the base
fee may not include hours or costs attributable to work performed by a person
who is not a contracting attorney or a partner, shareholder, or employee of a
contracting attorney or law firm.
(c) Subject to Subsection (d), the contingent fee is computed by
multiplying the base fee by a multiplier. The contract must establish a
reasonable multiplier based on any expected difficulties in performing the
contract, the amount of expenses expected to be risked by the contractor, the
expected risk of no recovery, and any expected long delay in recovery. The
multiplier may not exceed four without prior approval by the legislature.
(d) In addition to establishing the method of computing the fee under
Subsections (a), (b), and (c), the contract must limit the amount of the
contingent fee to a stated percentage of the amount recovered. The contract
may state different percentage limitations for different ranges of possible
recoveries and different percentage limitations in the event the matter is
settled, tried, or tried and appealed. The percentage limitation may not
exceed 35 percent without prior approval by the legislature. The contract must
state that the amount of the contingent fee will not exceed the lesser of the
stated percentage of the amount recovered or the amount computed under
Subsections (a), (b), and (c).
(e) The contract also may:
(1) limit the amount of expenses that may be reimbursed; and
(2) provide that the amount or payment of only part of the fee is
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
contingent on the outcome of the matter for which the services were obtained,
with the amount and payment of the remainder of the fee payable on a regular
hourly rate basis without regard to the outcome of the matter.
(f) Except as provided by Section 2254.107, this section does not apply
to a contingent fee contract for legal services:
(1) in which the expected amount to be recovered and the actual
amount recovered do not exceed $100,000; or
(2) under which a series of recoveries is contemplated and the amount
of each individual recovery is not expected to and does not exceed $100,000.
(g) This section applies to a contract described by Subsection (f) for
each individual recovery under the contract that actually exceeds $100,000, and
the contract must provide for computing the fee in accordance with this section
for each individual recovery that actually exceeds $100,000.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1, 1999.
Sec. 2254.107. MIXED HOURLY AND CONTINGENT FEE CONTRACTS; REIMBURSEMENT
FOR SUBCONTRACTED WORK. (a) This section applies only to a contingent fee
contract:
(1) under which the amount or payment of only part of the fee is
contingent on the outcome of the matter for which the services were obtained,
with the amount and payment of the remainder of the fee payable on a regular
hourly rate basis without regard to the outcome of the matter; or
(2) under which reimbursable expenses are incurred for subcontracted
legal or support services performed by a person who is not a contracting
attorney or a partner, shareholder, or employee of a contracting attorney or
law firm.
(b) Sections 2254.106(a) and (e) apply to the contract without regard to
the expected or actual amount of recovery under the contract.
(c) The limitations prescribed by Section 2254.106 on the amount of the
contingent fee apply to the entire amount of the fee under the contingent fee
contract, including the part of the fee the amount and payment of which is not
contingent on the outcome of the matter.
(d) The limitations prescribed by Section 2254.108 on payment of the fee
apply only to payment of the contingent portion of the fee.
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1, 1999.
Sec. 2254.108. FEE PAYMENT AND EXPENSE REIMBURSEMENT. (a) Except as
provided by Subsection (b), a contingent fee and a reimbursement of an expense
under a contract with a state governmental entity is payable only from funds
the legislature specifically appropriates to pay the fee or reimburse the
expense. An appropriation to pay the fee or reimburse the expense must
specifically describe the individual contract, or the class of contracts
classified by subject matter, on account of which the fee is payable or
expense is reimbursable. A general reference to contingent fee contracts for
legal services or to contracts subject to this subchapter or a similar general
description is not a sufficient description for purposes of this subsection.
(b) If the legislature has not specifically appropriated funds for paying
the fee or reimbursing the expense, a state governmental entity may pay the fee
or reimburse the expense from other available funds only if:
(1) the legislature is not in session; and
(2) the Legislative Budget Board gives its prior approval for that
payment or reimbursement under Section 69, Article XVI, Texas Constitution,
after examining the statement required under Section 2254.104(c) and
determining that the requested payment and the contract under which payment is
requested meet all the requirements of this subchapter.
(c) A payment or reimbursement under the contract may not be made until:
(1) final and unappealable arrangements have been made for depositing
all recovered funds to the credit of the appropriate fund or account in the
state treasury; and
(2) the state governmental entity and the state auditor have received
from the contracting attorney or law firm the statement required under Section
2254.104(c).
(d) Litigation and other expenses payable under the contract, including
expenses attributable to attorney, paralegal, accountant, expert, or other
professional work performed by a person who is not a contracting attorney or a
partner, shareholder, or employee of a contracting attorney or law firm, may be
reimbursed only if the state governmental entity and the state auditor
determine that the expenses were reasonable, proper, necessary, actually
incurred on behalf of the state governmental entity, and paid for by the
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
contracting attorney or law firm. The contingent fee may not be paid until the
state auditor has reviewed the relevant time and expense records and verified
that the hours of work on which the fee computation is based were actually
worked in performing reasonable and necessary services for the state
governmental entity under the contract.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1, 1999.
Sec. 2254.109. EFFECT ON OTHER LAW. (a) This subchapter does not limit
the right of a state governmental entity to recover fees and expenses from
opposing parties under other law.
(b) Compliance with this subchapter does not relieve a contracting
attorney or law firm of an obligation or responsibility under other law,
including under the Texas Disciplinary Rules of Professional Conduct.
(c) A state officer, employee, or governing body, including the attorney
general, may not waive the requirements of this subchapter or prejudice the
interests of the state under this subchapter. This subchapter does not waive
the state's sovereign immunity from suit or its immunity from suit in federal
court under the Eleventh Amendment to the federal constitution.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1, 1999.
SUBCHAPTER D. OUTSIDE LEGAL SERVICES
Sec. 2254.151. DEFINITION. In this subchapter, "state agency" means a
department, commission, board, authority, office, or other agency in the
executive branch of state government created by the state constitution or a
state statute.
Added by Acts 2003, 78th Leg., ch. 309, Sec. 7.18, eff. June 18, 2003.
Sec. 2254.152. APPLICABILITY. This subchapter does not apply to a
contingent fee contract for legal services.
Added by Acts 2003, 78th Leg., ch. 309, Sec. 7.18, eff. June 18, 2003.
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GOVERNMENT CODE CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
Sec. 2254.153. CONTRACTS FOR LEGAL SERVICES AUTHORIZED. Subject to
Section 402.0212, a state agency may contract for outside legal services.
Added by Acts 2003, 78th Leg., ch. 309, Sec. 7.18, eff. June 18, 2003.
Sec. 2254.154. ATTORNEY GENERAL; COMPETITIVE PROCUREMENT. The attorney
general may require state agencies to obtain outside legal services through a
competitive procurement process, under conditions prescribed by the attorney
general.
Added by Acts 2003, 78th Leg., ch. 309, Sec. 7.18, eff. June 18, 2003.
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Council Agenda Item Council Agenda Item
October 10, 2016 October 10, 2016
10.ADMINISTRATIVE REPORTSADMINISTRATIVE REPORTS
City Council Meeting, Monday, October 24, 2016City Council Meeting, Monday, October 24, 2016
11.COUNCIL COMMENTSCOUNCIL COMMENTS regarding matters appearing on the agenda; recognition of regarding matters appearing on the agenda; recognition of
communitymembers, city employees, and upcoming events; inquiry of staff regarding specific factual communitymembers, city employees, and upcoming events; inquiry of staff regarding specific
factual
information or existing policies. Councilmembers Clausen, J. Martin, K. Martin, Kaminski, Zemanek, information or existing policies. Councilmembers Clausen, J. Martin, K. Martin, Kaminski,
Zemanek,
Leonard, Engelken, Earp and Mayor RigbyLeonard, Engelken, Earp and Mayor Rigby
12.ADJOURNADJOURN
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