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Home My WebLink AboutORD 2009-01 - City Manager Purchasing PolicyAn Ordinance Of The City Council Of The City Of Georgetown, Tex, Revising Chapter 4.08 by r • Section 4.08.010 of the City Co r! Relating To "'Authority of :+- t AdNeding Section 4.08.011 Relating to Change Orders; Adding New Secti r 1. i r Delegation • by • • <' •! • Date.2, _ WHEREAS, the City Council of the City of Georgetown desires to update and clarify its purchasing processes; and conform to the provisions of state law, including Section 252.048 of the Local Government Code, which provides: 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 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 $25,000 or less, the governing body may grant general authority to an administrative official of the municipality to approve the change orders. (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. ; and WHEREAS, existing Section 4.08.010 was made moot by the adoption of Section 6.11 of the City Charter and by annual budget ordinances since 2001, but, for clarity, the changes shown below are desired; and WHEREAS, Senate Bill No. 1765 was recently adopted by the 80th Texas Legislature, which added a new provision to Section 252.021 of the Texas Local Government Code relating to the process for using procurement procedures other than competitive bidding and allows for the governing body to delegate authority for the procurement process; and Ordinance No. Chapter 4.08 — Purchasing Authority and Change Orders Page 1 of 4 WHEREAS, the existence of purchasing procedures will assist the City and the public in conducting the City's purchasing and contracting affairs. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, , SECTION 1. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. The City Council hereby finds that this ordinance complies with the Vision Statement of the City of Georgetown 2030 Comprehensive Plan. SECTION 2 Chapter 4.08 of the City Code of Ordinances is hereby amended to provide as follows: CHAPTER • is • ! TO CONTRACT I (A) Pursuant to Section 6.11 of the City of Georgetown Home Rule Charter, the City Manager is authorized to contract for expenditures without further approval of Council for items in the City Council approved budget for which the contract amount does not exceed the amount which requires compliance with state competitive bidding laws, provided that all such contracts and expenditures are in compliance with the City's Annual Budget and the City's Fiscal and Budgetary Policy. (B) All contracts or expenditures in excess of the amount that requires compliance with the state competitive bidding laws must be approved by the City Council, even if they are included in the City Council -approved budget. (C) If a method of procurement other than competitive sealed bidding is allowed by law, the City Manager or his designee shall have the authority under Section 252.021(c) of the Texas Local Government Code to determine whether to use an alternative method of procurement. If the City Manger or his designee is considering using a method other than competitive sealed bidding, the City Manager or his designee shall make such determination before notice is given. If the competitive sealed proposals requirement applies to the contract, the City Manger or his designee shall consider the criteria described by Section 252.043(b) of the Local Government Code and the discussions conducted under Section 252.042 to determine the best value for the City. Ordinance No. Chapter 4.08 — Purchasing Authority and Change Orders Page 2 of 4 c 1 t' •i t• (A) The City Manager or his designee may approve change orders involving an increase or decrease of twenty-five thousand dollars ($25,000.00) or less. Change orders involving an increase in costs of more than twenty five thousand dollars ($25,000.00) must be approved by the City Council. (B) Notwithstanding the provisions of Subsection (A), if the cumulative amount of all change orders on any contract meet or exceed two hundred fifty thousand dollars ($250,000) and include any change orders not previously approved by City Council, approval from City Council must be secured before initiating change order work. Only after approval from City Council shall a completed, approved Change Order form, along with the Contractor's original written claim for a change order, be submitted to the Project Manager for authorization to provide a notice to proceed on change order work. (C) Notwithstanding the provisions of Subsection (A), the original contract price may not be increased by more than twenty five percent (25%) without the prior approval of the City Council. (D) Notwithstanding the provisions of Subsection (A), the original contract price may not be decreased by more than twenty five percent (25%) without the prior approval of the contractor. Section 4.08.012 Delegation of Purchasing Authority by City Manager (A) The City Manager and the Director of Finance and Administration shall be responsible for developing written Purchasing Policies and Procedures that are consistent with state law and with this Chapter. The Purchasing Policies and Procedures may be amended from time to time. Any such amendments shall be effective upon written approval by the City Manager. (B) The City Manager may designate certain employees holding certain positions as having authority to sign contracts for expenditures at amounts below twenty-five thousand dollars ($25,000.00). (C) Delegation of purchasing authority shall be established in the City's Annual Budget. SECTION 3 All Ordinances and Resolutions, or parts of Ordinances and Resolutions that are in conflict with this Ordinance are hereby repealed, and no longer in effect. SECTION 4 If any provisions of this Ordinance or application thereof to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or applications thereof, of this Ordinance which can be given effect without the invalid Ordinance No. Chapter 4.08 — Purchasing Authority and Change Orders Page 3 of 4 provision or application and to this end the provisions of this Ordinance are hereby declared to be severable. SECTION 5 The Mayor of Georgetown is hereby authorized to sign this Ordinance and the City Secretary to attest. This Ordinance shall become effective and be in full force and effecting accordance with the terms of the City Charter. PASSED AND APPROVED on First Reading on the i day of f ` 2008. PASSED AND APPROVED on Second Reading on the day of 1 2009. ATTEST: City Secretary APPROVED AS TO FORM: Patricia E. Carls City Attorney OF " s " George Garver Mayor Ordinance No. Chapter 4.08 - Purchasing Authority and Change Orders Page 4 of 4 TOWN: