Agenda Packet TC 06/20/2005Town of Trophy Club
Town Council Regular Meeting Agenda
100 Municipal Drive
Trophy Club, Texas 76262
Monday, June 20, 2005
6:00 P.M.
A.1 Call to order and announce a quorum.
A.2 Invocation.
A.3 Pledge of allegiance to the American Flag.
Pledge of allegiance to the Texas Flag.
"Honor the Texas flag, I pledge allegiance to thee, Texas one and indivisible."
A.4 Joint Budget Workshop: Town Council, Economic Development Corporation A and
Economic Development Corporation B to discuss EDC 2005/06 budgets.
A.5 Town Council, EDC A and EDC B to close budget workshop and open a joint regular
session.
A.6 Town Council to consider a Resolution to allow participants in economic incentives for
the development of Trophy Wood Center.
A.7 Town Council to discuss and take appropriate action in regard to a Resolution that would
allow the town to abate property taxes.
A.8 Budget Workshop: 2005/06 budget.
A.9 EDC A and EDC B to adjourn.
B.1 Citizen presentations: this is an opportunity for citizens to address the Council on any
matter whether or not it is posted on the agenda. The Council is not permitted to take
action on or discuss any presentations made to the Council at this time concerning an
item not listed on the agenda. The Council will hear presentations on specific agenda
items prior to the Council addressing those items.
B.2 Town Manager Report and Discussion Regarding Project Updates as Listed Below:
There will be no action taken regarding any individual project posted under this item and
discussion will be limited. If extensive discussion is required, the item may be placed on
a future agenda.
Departmental Updates:
Administration:
Administrative Advisory Committee meeting topics
Nextel
NEFDA
Community Development:
Indian Creek Road Construction
Highway 114 Detour
Building Permits
Police and Fire Services:
Roadway Education and Marking
Scan USA
Neighborhood Crime Watch Programs
Scooter and Bicycle Safety Town
B.3 Discuss and take appropriate action relative to:
a. Preliminary Plat for an 11.002 acre tract of land in the M. Medlin Survey, Abstract No. 832 to
be known as Eagles Ridge Phase II, located generally to the north of Clear Vista Drive
and Panorama Circle. (PP-05-006)
b. Final Plat for an 11.002 acre tract of land in the M. Medlin Survey, Abstract No. 832 to be
known as Eagles Ridge Phase II, located generally to the north of Clear Vista Drive and
Panorama Circle. (FP-05-004)
B.4 Items for Future Agenda.
B.5 Discuss and take appropriate action regarding a resolution appointing citizens to four (4)
seats on the Planning & Zoning Commission.
D.1 Discuss and take appropriate action regarding an Ordinance, repealing Ordinance No. 95-
12 in its entirety, and adopting a new Ordinance establishing regulations governing the
construction of swimming pools.
D.2 Discuss and take appropriate action regarding termination of the 2005 Annual
Miscellaneous Concrete Repair contract with Driveway Maintenance.
D.3 Consent agenda: Discuss and take appropriate action to approve financials dated May
2005.
D.4 Consent agenda: Discuss and take appropriate action to approve Minutes dated June 6,
2005.
D.5 Additional Information for Council
E.1 Pursuant to Texas Government Code, Annotated, Subchapter 551, Section 551.071 (a) &
(b) "Consultation with Attorney", the Council will enter into executive session to discuss
the following:
(A) Consultation with Town Attorney on a matter in which the duty of the Attorney to
the Governmental Body under the Disciplinary Rules of Professional Conduct
of the State Bar of Texas clearly conflict with the Open Meetings Act (551.071 (b)).
(1) Legal Advice Relative to Purchasing Laws and Policies Applicable to Consultant and
Professional Services Agreements, including the Municipal Building
Addition
E.2 Staff to provide an update, as directed by Council at their 6/6/05 meeting, to determine
the feasibility of the construction project within budget constraints for the Svore
Municipal Building addition and for Council to discuss and take appropriate action
regarding the update and the award\rejection of proposals for a Construction Manager at
Risk for the building addition.
E.3 Discuss and provide direction to Staff regarding architectural services for municipal
projects, including the Municipal Additions and Alterations project.
F.1 Adjourn.
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.A.1
Call to order and announce a quorum.
(lr)
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.A.2
Invocation.
(lr)
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.A.3
Pledge of allegiance to the American Flag.
Pledge of allegiance to the Texas Flag.
"Honor the Texas flag, I pledge allegiance to thee, Texas one and indivisible."
(lr)
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.A.4
Joint Budget Workshop: Town Council, Economic Development Corporation A and
Economic Development Corporation B to discuss EDC 2005/06 budgets.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
Attachments: None
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.A.5
Town Council, EDC A and EDC B to close budget workshop and open a joint
regular session.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
Attachments: 1. None
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.A.6
Town Council to consider a Resolution to allow participants in economic incentives
for the development of Trophy Wood Center.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
(lr)
Attachments: 1. Resolution
TOWN OF TROPHY CLUB, TEXAS
RESOLUTION NO.
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY
CLUB, TEXAS, AND THE TROPHY CLUB ECONOMIC DEVELOPMENT
CORPORATION 4B, REPEALING RESOLUTION NO. 2003-04
AUTHORIZING AN ECONOMIC DEVELOPMENT AGREEMENT WITH
MIDWEST REALTY AND ADOPTING A NEW RESOLTUION
AUTHORIZING A NEW ECONOMIC DEVELOPMENT AGREEMENT WITH
MIDWEST COMMERCIAL REALTY; DESIGNATING TERMS OF THE
AGREEMENT AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town Council of the Town of Trophy Club, Texas, recognizes the need to
attract and retain economic development projects; and
WHEREAS, in 2003, EDC 4B agreed to provide certain economic development incentives to
Midwest Commercial Realty for the development of Planned Development Number 25 through the
passage of Resolution Number 2003-04; and
WHEREAS, Midwest Commercial Realty has indicated a desire to use EDC funds as a direct
incentive for a third party desiring to build commercial establishments within P.D. Number 25 which is a
change from the initial agreement adopted as part of Resolution Number 2003-04; and
WHEREAS, the construction of commercial property such as restaurants and hotels as proposed
by Midwest Commercial Realty (hereinafter “Project”) will increase the sales tax revenue to the Town
and the EDC4B; and
WHEREAS, Midwest Commercial Realty is currently in negotiations with a national hotel chain
on a proposed project on the site; and
WHEREAS, the EDC4B currently has funds available for the proposed Project and has agreed to
funding as specified in Exhibit “A”, a copy of which is attached hereto and incorporated herein; and
WHEREAS, the EDC4B and the Town of Trophy Club believe it to be in the best interests of
the Town of Trophy Club and its’ residents to pursue the Project with funding specified in Exhibit “A”;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF TROPHY CLUB, TEXAS:
Section 1: That the Town Council of the Town of Trophy Club hereby repeals Resolution
Number 2003-04 in its entirety and authorizes and approves the expenditure of EDC4B funds in the
manner outlined on the attached Exhibit “A” and such approval is evidenced by the Mayor’s signature on
the document.
Section 2: That the agreement memorializing the terms specified in Exhibit “A” is between
Midwest Commercial Realty and the EDC4B, and does not run with the land, is not assignable or
transferable, and terminates at such time that Midwest Commercial Realty ceases to be the principal
developer of the property which is the subject of the agreement approved by this Resolution.
Section 3: That a substantial copy of the funding provisions of the agreement between
Midwest Commercial Realty and EDC4B is attached hereto as Exhibit “A” and that such amount shall not
exceed $100,000.
Section 4: That the development of the property shall be commenced within one year of the
effective date shown on the attached signature page or this agreement shall automatically terminate. It
shall be prima facie proof that development has commenced if a ground breaking on a construction
project has occurred.
Section 5: That this Resolution shall become effective from and after its date of passage in
accordance with law, and it is so resolved.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas,
this ___ day of __________, _____.
____________________________________
Mayor
Town of Trophy Club, Texas
________________________________
James Hicks
President, Economic Development 4B
ATTEST:
___________________________
Town Secretary
Town of Trophy Club, Texas
[SEAL]
APPROVED AS TO FORM:
___________________________
Town Attorney
Town of Trophy Club, Texas
EFFECTIVE: _________________
EXHIBIT A
Ground Breaking: Fifty Thousand dollars to be paid at the time of ground breaking on any
project expected to produce an annual income of more than $20,000 of combined Town of
Trophy Club sales tax, (EDCA, EDCB, and Town) within three years of completion.
At Completion: Twenty Five Thousand dollars to be paid at the point of issuance of the
certificate of occupancy by the Town of Trophy Club.
After One Year: Twenty Five Thousand dollars to be paid one year after issuance of the
certificate of occupancy.
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.A.7
Town Council to discuss and take appropriate action in regard to a Resolution that
would allow the town to abate property taxes.
EXPLANATION:
The attached resolution expresses only the Town’s intent to consider adopting a policy that
would authorize Council to consider tax abatements and does not obligate the Town in any way
to approve a tax abatement policy or to grant any specific tax abatement. The resolution is the
first step that must be taken if the Council desires to adopt a tax abatement policy. If Council
were to approve this resolution, a draft of guidelines and criteria for granting tax abatements
would be presented for Council consideration at a subsequent Council meeting. Guidelines and
criteria must be adopted before any tax abatement agreement may be considered. Additionally,
compliance with state law notice and hearing requirements must be followed before any
abatement agreement is approved.
RECOMMENDATION:
ACTION BY COUNCIL:
(paa)
Attachments: 1. Resolution
TOWN OF TROPHY CLUB, TEXAS
RESOLUTION NO. 2005- ___
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS,
EXPRESSING THE INTENT OF THE TOWN COUNCIL TO CONSIDER PROVIDING TAX
ABATEMENTS FOR ELIGIBLE DEVELOPMENTS WITHIN THE TOWN; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town of Trophy Club is a home rule municipality incorporated under
the Texas Constitution; and
WHEREAS, in order to promote economic development, the Town of Trophy Club,
Texas, desires to consider providing tax abatements to eligible developments within the Town;
and
WHEREAS, the adoption of this Resolution does not obligate the Town to adopt a tax
abatement policy or to grant any specific tax abatement, but rather is an expression of the
Town’s intent to consider whether it is feasible and prudent to adopt a tax abatement policy; and
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF TROPHY CLUB, TEXAS, THAT:
Section 1. The above premises are found to be true and correct and are hereby
affirmed and adopted by the Town Council of the Town of Trophy Club.
Section 2. The Town Council of the Town of Trophy Club hereby expresses its intent
to consider providing tax abatements through a properly adopted tax abatement policy in order to
promote economic development for eligible developments within the Town.
Section 3. Town Staff is hereby authorized to develop a draft of tax abatement
guidelines and criteria for the consideration of Council at a subsequent meeting. Neither passage
of this Resolution nor consideration of such guidelines and criteria are binding upon the Town
Council nor should this action be construed as a creating any obligation on the part of the Town
to adopt a tax abatement policy or to grant any specific tax abatement request.
Section 4. This Resolution shall become effective immediately upon its passage.
DULY PASSED AND APPROVED on this the _____ day of _______________, 2005.
____________________________________
Nick Sanders, Mayor
Town of Trophy Club, Texas
ATTEST:
___________________________
Town Secretary
Town of Trophy Club, Texas
[SEAL]
APPROVED AS TO FORM:
___________________________
Town Attorney
Town of Trophy Club, Texas
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.A.8
Budget Workshop: 2005/06 budget.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
(lr)
Attachments: 1. None
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.A.9
EDC A and EDC B to adjourn.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
(lr)
Attachments: 1. None
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.B.1
Citizen presentations: this is an opportunity for citizens to address the Council on
any matter whether or not it is posted on the agenda. The Council is not permitted
to take action on or discuss any presentations made to the Council at this time
concerning an item not listed on the agenda. The Council will hear presentations on
specific agenda items prior to the Council addressing those items.
(lr)
Departmental Updates:
Administration:
Administrative Advisory Committee meeting topics
Nextel
NEFDA
Community Development:
Indian Creek Road Construction
Highway 114 Detour
Building Permits
Police and Fire Services:
Roadway Education and Marking
Scan USA
Neighborhood Crime Watch Programs
Scooter and Bicycle Safety Town
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.B.2
Town Manager Report and Discussion Regarding Project Updates as Listed Below:
There will be no action taken regarding any individual project posted under this
item and discussion will be limited. If extensive discussion is required, the item may
be placed on a future agenda.
Departmental Updates:
Administration:
Administrative Advisory Committee meeting topics
Nextel
NEFDA
Community Development:
Indian Creek Road Construction
Highway 114 Detour
Building Permits
Police and Fire Services:
Roadway Education and Marking
Scan USA
Neighborhood Crime Watch Programs
Scooter and Bicycle Safety Town
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.B.3
Discuss and take appropriate action relative to:
a. Preliminary Plat for an 11.002 acre tract of land in the M. Medlin Survey,
Abstract No. 832 to be known as Eagles Ridge Phase II, located generally to the
north of Clear Vista Drive and Panorama Circle. (PP-05-006)
b. Final Plat for an 11.002 acre tract of land in the M. Medlin Survey, Abstract No.
832 to be known as Eagles Ridge Phase II, located generally to the north of Clear
Vista Drive and Panorama Circle. (FP-05-004)
LOCATION: Located generally to the north of Clear Vista Drive and Panorama Circle
OWNER: Beck Properties
APPLICANT: Beck Properties
NO. NOTICES SENT: Notices are not required to be sent for Preliminary or Final Plats.
RESPONSES: N/A
STAFF COMMENTS:
Purpose: To consider approval of a Preliminary Plat and a Final Plat for approximately 11.05
acres, 25 residential lots and one open space lot.
Existing Condition of the Property: The land is currently zoned R-12.
Staff Findings: The plat has been reviewed by the Town Engineer, Water Department, Fire
Department and Planning staff and appears to be in compliance with the Town’s Subdivision
Regulations.
Planning & Zoning Action: The Planning & Zoning Commission unanimously approved
both the Preliminary & Final Plats for Eagle’s Ridge, Phase II.
(kcf)
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.B.4
Items for Future Agenda.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
(lr)
Attachments: 1. None
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.B.5
Discuss and take appropriate action regarding a resolution appointing citizens to
four (4) seats on the Planning & Zoning Commission.
EXPLANATION: This year, four (4) terms are expiring for members currently serving on the
Planning & Zoning Commission. Those Commissioners are: 1.) Gene Hill; 2.) Jim Moss; 3.)
Clayton Reed; and 4.) John Rodgers. Of these four members, only John Rogers does not wish to
renew their appointment.
The following new applications have been received: 1.) Steve Stamos; 2.) F. Alan Bailey; 3.)
Robert Monroe; 4.) Andrew Hayes; and 5.) Scott Smith.
Chairman Hill was able to speak with a few of the new applicants. Following the P&Z
Commission applications in your backup material, I have included a few summaries Chairman
Hill prepared for the Council’s consideration. Chairman Hill was not able to prepare a summary
for Mr. Monroe and Mr. Smith in time to be included in the packet.
(kcf)
Attachments: 1. Information Memorandum
2. Resolution
3. Applications
4. Summary of Prospective Applicant Discussions
TOWN OF TROPHY CLUB, TEXAS
RESOLUTION NO. 2005 - __
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS, APPOINTING CITIZENS TO FOUR (4) SEATS
TO SERVE ON THE PLANNING & ZONING COMMISSION;
DESIGNATING TERMS OF SERVICE; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Town of Trophy Club, Texas, benefits by having its citizens involved in
local government through service on Commissions; and
WHEREAS, the Trophy Club Town Council is charged with the responsibility of
making appointments to Commissions serving the Town.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF TROPHY CLUB, TEXAS:
Section 1. That the Town Council hereby appoints the following individuals to serve
on the Planning & Zoning Commissions as indicated, with a term of service that expires in the
year specifically provided below:
Planning & Zoning Commission
1. ________________ (2007) 2. ________________ (2007)
3. ________________ (2007) 4. ________________ (2007)
Section 2. That this Resolution shall become effective from and after its date of passage in
accordance with law.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas,
this 20th day of June, 2005.
Mayor
Town of Trophy Club, Texas
Effective Date:
[SEAL]
ATTEST:
Town Secretary
Town of Trophy Club, Texas
APPROVED TO AS FORM:
Town Attorney
Town of Trophy Club, Texas
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.D.1
Discuss and take appropriate action regarding an Ordinance, repealing Ordinance
No. 95-12 in its entirety, and adopting a new Ordinance establishing regulations
governing the construction of swimming pools.
EXPLANATION:
This is an update to the current ordinance. The primary change in this ordinance requires newly
built swimming pools to drain into the sanitary sewer instead of the streets and storm drain
system. Staff has worked with the MUDs on the wording and specifications. Connection to the
sanitary sewer will require a $75 MUD inspection fee for which both MUDs have amended their
rate orders to include. Clarification has also been provided throughout the ordinance to make it
easier to understand and enforce.
RECOMMENDATION:
Staff recommends the adoption of the updated ordinance.
ACTION BY COUNCIL:
bg
Attachments: 1. Information Memorandum
2. Ordinance (Redlined)
3. Ordinance (Final Version)
TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 95 -–122005-__
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS
REPEALING ORDINANCE NO. 1995-12, AN ORDINANCE
ESTABLISHING REGULATIONS GOVERNING THE CONSTRUCTION
OF SWIMMING POOLS; AND ADOPTING A NEW ORDIANCNE 1998-
28, AND 1992-06; ESTABLISHING REGULATIONS GOVERNING THE
CONSTRUCTION OF SWIMMING POOLS;; PROVIDING FOR THE
INCORPORATION OF PREMISES; SETTING FORTH DEFINITIONS;
PROVIDING FOR APPLICABILITY AND PROHIBITIVE CONDUCT;
PROVIDING FOR EXCEPTIONS; ADOPTING NEW PROVISIONS FOR
THE CONSTRUCTION OF SWIMMING POOLS; PROVIDING FOR
APPEAL; PROVIDING DEFINITIONS; AS TO SWIMMING POOLS: (1)
PROVIDING LIGHTING REQUIREMENTS, (2) REQUIRING A PERMIT
FOR THE USE OF A PUBLIC ADDRESS SYSTEM, (3) ADOPTING THE
UNIFORM POOL CODE, AND (4) REQUIRING THAT WATER FROM
SWIMMING POOLS BE DRAINED IN STORM SEWERS OR NATURAL
DRAINAGE AND NOT INTO ADJOINING PROPERTY; PROVIDING A
SAVINGS CLAUSE; REPEALING ORDINANCE NO. 92-06 RELATING
TO SWIMMING POOLS; PROVIDING A CUMULATIVE REPEALER
CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING A PENALTY NOT TO EXCEED
THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH
OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED
COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION
OCCURS OR CONTINUES; PROVIDING FOR PUBLICATION;
PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND
PROVIDING AN EFFECTIVE DATE.PROVIDING A SEVERABILITY
CLAUSE; PROVIDING A PENALTY OF NOT LESS THAN ONE
DOLLAR ($1.00) NOR MORE THAN FIVE HUNDRED DOLLARS
($500.00) FOR EACH OFFENSE AND A SEPARATED OFFENSE SHALL
BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A
VIOLATION OCCURS OR CONTINUES; PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the Town of Trophy Club (hereinafter referred to as “Town”) is a hHome
rRule municipality acting under its charter adopted by the electorate pursuant to Article XI,
Section 5 of the Texas Constitution and Chapter 9 of Local Government Code; and
WHEREAS, on July 18, 1995, the Town Council adopted Ordinance No. 95-12,
establishing “Swimming Pool Regulations” for the Town of Trophy Club, Texas; and
WHEREAS, Town staff has recommended an update to Ordinance No. 95-12 in order to
be consistent with current law and standards regulating swimming pools and in order to protect
the health, safety, and welfare of the citizens of the Town; and
WHEREAS, the Town Council of the Town of Trophy Club, Texas (the "Town")
recognizes the need for proper construction and maintenance of swimming pools and the need to
protect citizens and other members of the public from the dangers inherent in the use of
swimming pools within the Town; and
WHEREAS, the Town Council hereby finds that the regulations established herein are in
the best interest of the health, safety and general welfare of the citizens of the Town.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS.
SECTION 1.
INCORPORATION OF PREMISES
All of the above premises are found to be true and correct and are incorporated into the
body of this Ordinance as if copied in their entirety.
SECTION 2.
DEFINITIONS
A. Unless otherwise provided for herein, the following terms shall have the respective
meanings ascribed to them.
When used in this ordinance, the following terms shall have the respective meanings
ascribed to them:
Aboveground Swimming Pool: shall mean shall mean aA structure in which the entire
construction is above ground, or if partly above and partly below ground, the top of the
receptacle basin is at least twenty-four inches (24”) above ground. intended for swimming or
recreational bathing that contains water over 24 inches deep and has a capacity of over 700
gallons that is not dug into the ground. .shall mean any structure, basin, chamber or tank
containing an artificial body of water needing external buttresses for use or intended to be used
for public, semi-public or private swimming or bathing by adults or children, or both adults and
children, operated and maintained by any person, whether he/she be an owner, lessee, operator,
licensed or concessionaire, and shall include swimming pools used or intended to be used solely
by the owner or guests invited to use it without payment of any fee.
In-Ground Swimming Pool: shall mean shall mean aA structure intended for swimming or
recreational bathing that contains water over 24twenty-four inches (24”) deep and has a capacity
of over 700 gallons that is any structure, basin, chamber or tank containing an artificial body of
water dug into the ground. for use or intended to be used for public, semi-public or private
swimming or bathing by adults or children, or both adults and children, operated and maintained
by any person, whether he/she be an owner, lessee, operator, licensed or concessionaire, and
shall include swimming pools used or intended to be used solely by the owner or guests invited
to use it without payment of any fee.
Kiddie Pool or Wading Pool: shall mean aAny deflatable, portable or temporary special
purpose pool or receptacle set aside primarily for use by children with a depth no greater than
24twenty-four inches (24”).
Permitting Department: shall mean tThe Permitting Division of the Community Development
Department of the Town of Trophy Club, Texas.
Spa: shall meanA hydro-massage pool or tub, including but not limited to hot tubs, whirlpool
baths and tubs and Jacuzzi-type tubs or baths, for recreational or therapeutic use, not located in a
health-care facility, designed for immersion of users and usually having a filter, heater, and
motor-driven blower. The spa is intended for recreational bathing and contains water over
twenty-four inches (24”) deep.
Swimming Pool: shall mean aAny structure intended for swimming or recreational bathing that
contains water over twenty-four 24 inches (24”) deep and has a capacity of over seven-hundred
(700) gallons. This includes in-ground, aboveground and on-ground swimming pools. As used
in this Ordinance the term is limited to pools which are fitted with a filter for clarifying pool
water, or which are designed to be fitted with a filter, whether installed or not. The term shall not
include facilities located inside a residence, storable pools designed for seasonal setup and use
which are stored at the end of the swimming season, or spas installed on decks or porches if a
fitted hard cover designed to prevent entry is maintained in place at all times when the spa is not
in use.
body of water in an artificial or semi-artificial receptacle or other container located outdoors,
used or intended to be used for public, semi-public or private swimming or bathing by adults or
children, or both adults and children, operated and maintained by any person, whether he/she be
an owner, lessee, operator, licensed or concessionaire, and shall include swimming pools used or
intended to be used solely by the owner or guests invited to use it without payment of any fee.
Hot tubs, whirlpool baths and tubs, and Jacuzzi type tubs or baths shall be considered swimming
pools if they are located outdoors or designed to be located outdoors and are provided with
permanent outdoor water plumbing Any indoor swimming or wading pool with movable walls,
windows or doors exposing such indoor pool at ground level to outside yards shall be included in
the definition of swimming pool. The definition of swimming pool shall include both
Aboveground and In-Ground Swimming Pools as defined herein.
SECTION 3.
APPLICABILITY AND PROHIBITIVE CONDUCT
It shall be unlawful for any person to violate any provision of this Ordinance.
A. This ordinance shall be applicable to all new swimming pools and spas hereafter
constructed, erected, or maintained, other than indoor pools, and shall apply to all
existing pools and spas which have a depth of greater than twenty four (24) inches (24”)
or more of water at any point. It shall be unlawful for any person to violate any provision
of this Ordinance.
B. No person shall construct, erect, or maintain an aboveground pool.
A. Deflatable pools and temporary portable pools generally described as "kKiddie
pPools” or “Wading Pools”," are exempt from the provisions of this ordinance.
C. No person in possession of land within the Town, whether as owner, purchaser, lessee, or
licenseeor licensee, upon which is situated a swimming pool having a depth ofgreater
than twenty-four inches (24”) or more of water at any point, shall fail to provide and
maintain such fence or wall as herein provided.
C. Any and all fenced swimming pools existing at the time this ordinance is passed shall
be deemed to be in compliance with this ordinance.
D. Any and all unfenced swimming pools existing at the time this ordinance is passed shall
have ninety (90) days to comply with the terms and requirements herein stated, from the
effective date of this ordinance.
E. Except as specifically provided herein, it shall be unlawful of any person, corporation,
partnership or other legal entity to construct, have, have constructed, or maintain any
type of swimming pool without having first procured a permit for the construction of
same from the Permitting Department.
SECTION 45
EXCEPTIONS
A. "Kiddie Pools” or “Wading Pools”, are exempt from the provisions of this Oordinance
except as specifically provided herein.
Aboveground swimming pools are prohibited.
B. Hot tubs, whirlpool baths and tubs, and Jacuzzi-type tubs or baths with a capacity of not
more than fifteen hundred (1,500) gallons shall be allowed above ground.
C. In lieu of the fence requirement in Section 6, subsection B(1)(a) , rigid lock-down covers
may be allowed for hot tubs, whirlpool baths and tubs, Jacuzzi-type baths and tubs, and
spas , provided that prior approval is given through the fence permit application process
and further provided that the cover is kept locked at all times that the hot tub, whirlpool
bath and tub, Jacuzzi-type bath and tub, and/or spa is not in use.
SECTION 5
SWIMMING POOLS
A. Swimming Pool Permit Application. Permit - It shall be unlawful of any person,
corporation, partnership or other legal entity to construct or have constructed any type of
swimming pool without having first procured a permit for the construction of same from
the Planning and Zoning AdministratorPermitting Department. The following
information shall be required infor the each swimming pool permit application:
1. Applicant’s name and address.
2. If person represents a corporation, partnership or other legal entity, the address of
the president or registered agent of the entity. same.
3. Name of the foreman or contractor in charge of construction.
4. Name of the owner of the property.
5. Address of the location where swimming pool is to be constructed.
6. Size of swimming pool.
7. Approximate value.
8. Two (2) A plotsite plans showing the location of swimming pool oin relation to
the property lines with the distance indicated from the pool to any structures and
to the property boundaries. All measurements shall be from the pool structure
itself and not from the water’s edge and ; also showing property setback lines,
drainage plan, location of any and all drainage and/or public utility easements,
and the location of required and/or existing fence.
a. Fence permit, if applicable.
B. Permit fees, in accordance with the current fee schedule, shall be paid prior to the
issuance of a permit and the commencement of construction of a swimming pool.
will be required before constructing a swimming pool.
BC. Fence Requirements:Swimming Pool Regulations:
1. Permanent Fence. Before a pool is filled with water, a permanent fence shall be
erected surrounding the pool, which shall conform to the International Building
Code, as adopted and amended by the Town.
Every outdoor swimming pool must be enclosed by a wall or fence not less than
four feet (4’) in height. Said wall or fence shall be constructed in such a manner
that there are no gaps or openings, other than gates or doors, larger than four
inches (4”) measured in any direction. Such wall or fence shall be permanent,
shall be set and anchored firmly in the earth, and all gates or doors in said wall or
fence shall be equipped with self-closing and self-latching devices capable of
keeping the gate or door securely closed when not in use. Such latching devices
shall be attached to the upper quarter of the gate and wall or fence on the inside
thereof.
a. The Pool Contractor or other person constructing a pool is responsible for
the construction of a permanent fence that complies with this ordinance
and all other applicable regulations. The property owner is responsible for
the maintenance of a permanent fence that complies with this ordinance
and all other applicable regulations.
b.. In lieu of the fence required by subsection B(1)(a) above, Rrigid lock-down
covers may be allowed for in connection with hot tubs, whirlpool baths and tubs,
Jacuzzi-type baths and tubs, and spas in lieu of a fence, provided that prior
approval is given through the fence permit application process for a fence permit
and further provided that the cover is kept locked at all times that the hot tubs,
whirlpool baths and tubs, Jacuzzi type baths and tubs, and/or spas is not in use.
cb. It shall be unlawful to maintain any swimming pool in the corporate limits
of Trophy Club, which is not fenced in accordance with the requirements
of this section and all other applicable ordinances.n.
2. Temporary Fence: a. Prior to commencement of and Dduring the construction of
a swimming pool, a temporary fence shall be providederected and maintained
around the swimming pool construction site during the construction phase, which
shall limit access to the construction site at all times except when construction is
actually in progress. A permanent wall or fence shall be in place before final
inspection. The top of the temporary fence shall be at least four feet (4’) in
height. The wall of a dwelling may serve as part of the fence.
a. All inspections will be canceled if a temporary fence is not installed on
the job site and a reinspection fee will be assessed in an amount set by the
Town’s Schedule of Fees. Continued failure to enclose the site with a
temporary fence willmay result in a citation being issued to pool
contractor.
D. Form Survey Required. At the time of first inspection, a form survey shall be submitted
and approved by the Building Inspector prior to calling for the first inspection.
E. Certificate of Completion.: Prior to the issuance of To receive a certificate of completion,
the swimming pool shall pass each of the following inspections: must be done:
1. Belly steel and ground steel,
2. Deck steel and ground, and
3. Gas line inspection (if applicable) and P-Trap/Backwash inspection.
a. Before the backwash, p-trap & gas line are covered in any way, those
items shall be inspected and approved. All pools shall have a p-trap and
backwash line connected to the sanitary sewer.
4. Drainage sSurvey. The pool final inspection will not be approved if the Inspector
determines that the grading and drainage of the lot is not in compliance with the
approved drainage plans for the subdivision. If the inspector cannot determine the
lot water flow, an engineered survey shall be required.
3.5. Final inspection, including the fencing.
a. At the final inspection, all local requirements, state requirements and
Uniform Pool CodesTown-approved building mustcodes must be met.
EF. Lighting.. All lighting of a swimming pool shall be shielded or directed to face away
from adjoining residences. If lights are not individually shielded they shall be so placed,
or the enclosing wall or fence shall be so designed, that direct rays from the lights shall
not be visible from adjacent or contiguous properties.
F. Public Address System. No public address system shall be used for any purpose without a
permit from the Town. The Town's Planning and Zoning Administrator shall establish a form for
such application and require therein information relevant to the issuance of such a permit.
G. Licensed Contractor:. All electrical and plumbing work shall be performed by licensed
contractors in accordance with the requirements of the Town-approved Building Code, as
amended and all other applicable ordinances or regulations.
H. Location.: Adoption of Uniform Pool Code. All swimming pools, to include but not
limited to kiddie and wading pools, shall be located within the rear yard and shall not
encroach upon any identified easement. shall not be constructed within a public
easement, utility easement or other easement except to the extent that the easement
allows such construction. There is hereby adopted the Uniform Pool Code, the
regulations of which shall be applicable to all swimming pools within the Town.
I. I. Draining of Swimming Pools. All new swimming pool installations must be properly
connected to the storm sewer system or to a return filter system. No unauthorized
discharge including swimming pool backwash water shall be permitted into the sanitary
sewer, river or creek. The water drainage from swimming pools shall not adversely affect
the natural environment, such as trees, shrubs, and other vegetation.Any On any new
swimming pool permitted on or after June 24, 2005, Aall backwash or drainage from a
swimming pool shall discharge into the sanitary sewer system. An indirect connection
shall be made by means of an air break discharging into a tail piece (does this “tall piece”
have a technical meaning?) installed a minimum of 6” or 152 mm above adjacent grade.
The tailpiece shall be connected to a minimum 3” or 76 mm p-trap not less than 12” (304
mm) below grade which discharges into the yard cleanout riser.
1. Owners of existing pools (pools built or permitted prior to July 1, 2005) are not
required by this Ordinance to retrofit the pool equipment and tie into the sanitary
sewer.
J. Screening. All swimming pool equipment shall be screened from the public view, of the
public and from including the view of adjacent private properties.
K. Clarity of Water.
a. The water in all swimming pools within the Town, public or private shall be of
sufficient clarity such that the bottom of the swimming pool is visible to the naked
eye. In order to help achieve this objective, each swimming pool shall have a
minimum fee residual chlorine of one (1) part per million.
b. In addition, no swimming pool water shall have an acid reaction to a standard pH
test.
c. All pools shall be treated, altered or maintained so as to prevent the
development of unsanitary conditions.
d. Pools under construction or which are no longer being operated shall be
maintained in a manner so as to prevent the development of unsanitary
conditions potential injury or possible drowning.
e. Wastewater from a swimming pool shall be discharged into a sanitary sewer.
There shall be no direct physical connection between the sewer system and
any drain from the swimming pool or circulations system.
f. Alternative equivalent methods of wastewater disposal may be approved by
the Director of Community Development. No method of wastewater disposal
is permissible which could create a public health hazard or public nuisance.
LK. Above ground Pools. Aboveground swimming pools are prohibited. Hot tubs,
whirlpool baths and tubs, and Jacuzzi-type tubs or baths with a capacity of not more than 1,500
gallons shall be allowed above ground.
L. Equipment. No pool equipment mayshall be placed within required or established front
yard or within any identified easement. Equipment necessary for or related to the
operation of in relation to the pool shall not be affixed to any required perimeter fence or
common fences between property owners.
SECTION 65.
APPEAL
Any person aggrieved by the terms of this Ordinance or the interpretation, application, or
enforcement of this Ordinance by the Building Official shall have the right to appeal any action
of the Building Official taken pursuant to this Ordinance. Any such appeal shall be brought, by
written application, filed by an interested party, to the Director of Community Development
within ten (10) days following the action of the Building Official, which is the subject of the
appeal. Enforcement of this Ordinance shall be stayed pending such appeal, except that such
appeal does not stay the owner or applicant’s requirement to comply with temporary fencing
regulations specified herein or as specified by other applicable laws, during the appeal period. In
hearing such appeals, the Building Appeals Board shall review the determination of the Building
Official and, in so doing, may consider whether or not the regulations and standards of this
Ordinance will, by reason of exceptional circumstance or surroundings, constitute a practical
difficulty or unnecessary hardship. The decision of the Building Appeals Board shall be final.
Any person aggrieved by the terms of this ordinance shall have the right to petition the
Town Council and seek an exception from the same. An exception may be authorized as will not
be contrary to the public interest, where owing to special conditions, the literal enforcement of
the provisions of this ordinance will result in unnecessary hardship, so that the spirit of this
ordinance shall be observed and substantial justice done.
SECTION 67.
CUMULATIVE REPEALER
This Ordinance shall be cumulative of all other Ordinances and shall not repeal any of the
provisions of such Ordinances except for those instances where there are direct conflicts with the
provisions of this Ordinance; provided, however, that Ordinance No. 1995-12, 2004-02 P&Z is is
hereby repealed in their entirety respectively. Ordinances or parts thereof in force at the time
this Ordinance shall take effect and that are inconsistent with this Ordinance are hereby repealed
to the extent that they are inconsistent with this Ordinance. Provided however, that any
complaint, action, claim or lawsuit which has been initiated or has arisen under or pursuant to
Ordinance No. 1995-1202 P&Z on the date of adoption of this Ordinance shall continue to be
governed by the provisions of such Ordinance and for that purpose the Ordinance shall remain in
full force and effect.
92-06 relating to swimming pools and fences is hereby repealed in its entirety, but provided
however that any complaint, action, cause or action or claim which has been initiated or has
arisen under or pursuant the said repealed ordinance shall continue to be governed by the
provisions of that ordinance, and for that purpose the repealed ordinance shall be deemed to
remain in full force and effect.
SECTION 87.
SAVINGS
All rights and remedies of the Town of Trophy Club, Texas, are expressly saved as
to any and all violations of the provisions of any other Ordinance affecting sign swimming
pool regulations which have secured at the time of the effective date of this Ordinance; and,
as to such accrued violations and all pending litigation, both civil and criminal, whether
pending in court or not, under such Ordinances same shall not be affected by this
Ordinance but may be prosecuted until final disposition by the courts.
SECTION 9.
SEVERABILITY
If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or
application thereof to any person or circumstance is held invalid or unconstitutional by a Court
of competent jurisdiction, such holding shall not affect the validity of the remaining portions of
this Ordinance, and the Town Council hereby declares it would have passed such remaining
portions of this Ordinance despite such invalidity, which remaining portions shall remain in full
force and effect.
If any section, article, paragraph, sentence, clause, phrase or word of this ordinance, or
application thereto, any person or circumstance is held invalid or unconstitutional by a Court of
competent jurisdiction, such holding shall not affect the validity of the remaining portions of this
ordinance; and the Town Council hereby declares it would have passed such remaining portions
of the ordinance despite such invalidity, which remaining portions shall remain in full force and
effect.
Section 8.
SECTION 10
PENALTY
It shall be unlawful for any person to violate any provision of this Ordinance, and any
person violating or failing to comply with any provision hereof shall be fined, upon conviction,
in an amount not more than Two Thousand Dollars ($2,000.00), and a separate offense shall be
deemed committed each day during or on which a violation occurs or continues.
It shall be unlawful for any person to violate any provision of this Ordinance, and any
person violating or failing to comply with any provision of this Ordinance shall be fined upon
conviction, not less than One Dollar ($1.00) nor more than Five Hundred $500.00), and a
separate offense shall be deemed committed upon each day during or on which a violation occurs
or continues.
SECTION 911.
PUBLICATION
The Town Secretary of the Town of Trophy Club is hereby directed to publish, the
Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas
Local Government Code.
SECTION 12.
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll
this Ordinance by copying the exact Caption, Penalty and Effective Date in the minutes of the
Town Council and by filing this Ordinance in the ordinance records of the Town.
SECTION 13.
EFFECTIVE DATE
This Ordinance shall become effective from and after its date of adoption and publication
as provided by law, and it is so ordained.
This Ordinance shall take effect from and after its date of passage and publication as provided by
law.
PASSED AND APPROVED by the Town of Trophy Club, Texas this the 20th day of
June, 2005.
_______________________________________
Mayor
Town of Trophy Club, Texas
ATTEST:
_____________________________________
Town Secretary
Town of Trophy Club, Texas
[SEAL]
APPROVED AS TO FORM:
_____________________________________
Town Attorney
Town of Trophy Club, Texas
TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2005-__
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS
REPEALING ORDINANCE NO. 95-12, AN ORDINANCE
ESTABLISHING REGULATIONS GOVERNING THE CONSTRUCTION
OF SWIMMING POOLS; AND ADOPTING A NEW ORDIANCNE
ESTABLISHING REGULATIONS GOVERNING THE CONSTRUCTION
OF SWIMMING POOLS; PROVIDING FOR THE INCORPORATION OF
PREMISES; SETTING FORTH DEFINITIONS; PROVIDING FOR
APPLICABILITY AND PROHIBITIVE CONDUCT; PROVIDING FOR
EXCEPTIONS; ADOPTING NEW PROVISIONS FOR THE
CONSTRUCTION OF SWIMMING POOLS; PROVIDING FOR APPEAL;
PROVIDING A CUMULATIVE REPEALER CLAUSE; PROVIDING A
SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING A PENALTY NOT TO EXCEED THE SUM OF TWO
THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE AND A
SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY
DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES;
PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT
AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town of Trophy Club (hereinafter referred to as “Town”) is a Home
Rule municipality acting under its charter adopted by the electorate pursuant to Article XI,
Section 5 of the Texas Constitution; and
WHEREAS, on July 18, 1995, the Town Council adopted Ordinance No. 95-12,
establishing “Swimming Pool Regulations” for the Town of Trophy Club, Texas; and
WHEREAS, Town staff has recommended an update to Ordinance No. 95-12 in order to
be consistent with current law and standards regulating swimming pools and in order to protect
the health, safety, and welfare of the citizens of the Town; and
WHEREAS, the Town Council of the Town of Trophy Club, Texas recognizes the need
for proper construction and maintenance of swimming pools and the need to protect citizens and
other members of the public from the dangers inherent in the use of swimming pools within the
Town; and
WHEREAS, the Town Council hereby finds that the regulations established herein are in
the best interest of the health, safety and general welfare of the citizens of the Town.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS.
SECTION 1.
INCORPORATION OF PREMISES
All of the above premises are found to be true and correct and are incorporated into the
body of this Ordinance as if copied in their entirety.
SECTION 2.
DEFINITIONS
A. Unless otherwise provided for herein, the following terms shall have the respective
meanings ascribed to them.
Aboveground Swimming Pool: A structure in which the entire construction is above ground, or
if partly above and partly below ground, the top of the receptacle basin is at least twenty-four
inches (24”) above ground.
In-Ground Swimming Pool: A structure intended for swimming or recreational bathing that
contains water over twenty-four inches (24”) deep and has a capacity of over seven hundred
(700) gallons that is dug into the ground.
Kiddie Pool or Wading Pool: Any deflatable, portable or temporary special purpose pool or
receptacle set aside primarily for use by children with a depth no greater than twenty-four inches
(24”).
Permitting Department: The Permitting Division of the Community Development Department
of the Town of Trophy Club, Texas.
Spa: A hydro-massage pool or tub, including but not limited to hot tubs, whirlpool baths and
tubs and Jacuzzi-type tubs or baths, for recreational or therapeutic use, not located in a health-
care facility, designed for immersion of users and usually having a filter, heater, and motor-
driven blower. The spa is intended for recreational bathing and contains water over twenty-four
inches (24”) deep.
Swimming Pool: Any structure intended for swimming or recreational bathing that contains
water over twenty-four inches (24”) deep and has a capacity of over seven-hundred (700)
gallons. This includes in-ground, aboveground and on-ground swimming pools. As used in this
Ordinance the term is limited to pools which are fitted with a filter for clarifying pool water, or
which are designed to be fitted with a filter, whether installed or not. The term shall not include
facilities located inside a residence, storable pools designed for seasonal setup and use which are
stored at the end of the swimming season, or spas installed on decks or porches if a fitted hard
cover designed to prevent entry is maintained in place at all times when the spa is not in use.
SECTION 3.
APPLICABILITY AND PROHIBITIVE CONDUCT
A. This ordinance shall be applicable to all new swimming pools and spas hereafter
constructed, erected, or maintained, and shall apply to all existing pools and spas which
have a depth greater than twenty four inches (24”) of water at any point. It shall be
unlawful for any person to violate any provision of this Ordinance.
B. No person shall construct, erect, or maintain an aboveground pool.
C. No person in possession of land within the Town, whether as owner, purchaser, lessee, or
licensee, upon which is situated a swimming pool having a depth greater than twenty-four
inches (24”) or more of water at any point, shall fail to provide and maintain such fence
or wall as herein provided.
D. Any and all unfenced swimming pools existing at the time this ordinance is passed shall
have ninety (90) days to comply with the terms and requirements herein stated, from the
effective date of this ordinance.
E. Except as specifically provided herein, it shall be unlawful of any person, corporation,
partnership or other legal entity to construct, have constructed, or maintain any type of
swimming pool without having first procured a permit for the construction of same from
the Permitting Department.
SECTION 5.
EXCEPTIONS
D. Kiddie Pools or Wading Pools, are exempt from the provisions of this Ordinance except
as specifically provided herein.
E. Hot tubs, whirlpool baths and tubs, and Jacuzzi-type tubs or baths with a capacity of not
more than fifteen hundred (1,500) gallons shall be allowed above ground.
F. In lieu of the fence requirement in Section 6, subsection B(1)(a) , rigid lock-down covers
may be allowed for hot tubs, whirlpool baths and tubs, Jacuzzi-type baths and tubs, and
spas , provided that prior approval is given through the fence permit application process
and further provided that the cover is kept locked at all times that the hot tub, whirlpool
bath and tub, Jacuzzi-type bath and tub, and/or spa is not in use.
SECTION 5
SWIMMING POOLS
A. Swimming Pool Permit Application: The following information shall be required for
each swimming pool permit application:
9. Applicant’s name and address.
10. If person represents a corporation, partnership or other legal entity, the address of
the president or registered agent of the entity.
11. Name of the foreman or contractor in charge of construction.
12. Name of the owner of the property.
13. Address of the location where swimming pool is to be constructed.
14. Size of swimming pool.
15. Approximate value.
16. Two (2) site plans showing the location of swimming pool in relation to the
property lines with the distance indicated from the pool to any structures and to
the property boundaries. All measurements shall be from the pool structure itself
and not from the water’s edge and also show property setback lines, drainage
plan, location of any and all drainage and/or public utility easements, and the
location of required and/or existing fence.
a. Fence permit, if applicable.
B. Permit fees, in accordance with the current fee schedule, shall be paid prior to the
issuance of a permit and the commencement of construction of a swimming pool.
C. Fence Requirements:
1. Permanent Fence. Before a pool is filled with water, a permanent fence shall be
erected surrounding the pool, which shall conform to the International Building
Code, as adopted and amended by the Town.
a. The Pool Contractor or other person constructing a pool is responsible for
the construction of a permanent fence that complies with this ordinance
and all other applicable regulations. The property owner is responsible for
the maintenance of a permanent fence that complies with this ordinance
and all other applicable regulations.
b. It shall be unlawful to maintain any swimming pool in the corporate limits
of Trophy Club, which is not fenced in accordance with the requirements
of this section and all other applicable ordinances.
2. Temporary Fence: Prior to commencement of and during the construction of a
swimming pool, a temporary fence shall be erected and maintained around the
swimming pool construction site, which shall limit access to the construction site
at all times except when construction is actually in progress. The top of the
temporary fence shall be at least four feet (4’) in height. The wall of a dwelling
may serve as part of the fence.
b. All inspections will be canceled if a temporary fence is not installed on the
job site and a reinspection fee will be assessed in an amount set by the
Town’s Schedule of Fees. Continued failure to enclose the site with a
temporary fence may result in a citation being issued to pool contractor.
D. Form Survey Required: A form survey shall be submitted and approved by the Building
Inspector prior to calling for the first inspection.
E. Certificate of Completion: Prior to the issuance of a certificate of completion, the
swimming pool shall pass each of the following inspections:
6. Belly steel and ground steel,
7. Deck steel and ground,
8. Gas line inspection (if applicable) and P-Trap/Backwash inspection.
a. Before the backwash, p-trap & gas line are covered in any way, those
items shall be inspected and approved. All pools shall have a p-trap and
backwash line connected to the sanitary sewer.
9. Drainage Survey: The pool final inspection will not be approved if the Inspector
determines that the grading and drainage of the lot is not in compliance with the
approved drainage plans for the subdivision. If the inspector cannot determine the
lot water flow, an engineered survey shall be required.
10. Final inspection, including the fencing.
a. At the final inspection, all local requirements, state requirements and
Town-approved building codes must be met.
F. Lighting: All lighting of a swimming pool shall be shielded or directed to face away from
adjoining residences. If lights are not individually shielded they shall be so placed, or the
enclosing wall or fence shall be so designed, that direct rays from the lights shall not be
visible from adjacent or contiguous properties.
G. Licensed Contractor: All electrical and plumbing work shall be performed by licensed
contractors in accordance with the requirements of the Town-approved Building Code, as
amended and all other applicable ordinances or regulations.
H. Location: All swimming pools, to include but not limited to kiddie and wading pools,
shall be located within the rear yard and shall not encroach upon any identified easement.
II. Draining of Swimming Pools: On any new swimming pool permitted on or after June 24,
2005, all backwash or drainage from a swimming pool shall discharge into the sanitary
sewer system. An indirect connection shall be made by means of an air break
discharging into a tail piece installed a minimum of 6” or 152 mm above adjacent grade.
The tailpiece shall be connected to a minimum 3” or 76 mm p-trap not less than 12” (304
mm) below grade which discharges into the yard cleanout riser.
1. Owners of existing pools (pools built or permitted prior to July 1, 2005) are not
required by this Ordinance to retrofit the pool equipment and tie into the sanitary
sewer.
J. Screening: All swimming pool equipment shall be screened from the view of the public
and from the view of adjacent private properties.
K. Clarity of Water:
a. The water in all swimming pools within the Town, public or private shall be of
sufficient clarity such that the bottom of the swimming pool is visible to the naked
eye. In order to help achieve this objective, each swimming pool shall have a
minimum fee residual chlorine of one (1) part per million.
b. In addition, no swimming pool water shall have an acid reaction to a standard pH
test.
c. All pools shall be treated, altered or maintained so as to prevent the
development of unsanitary conditions.
d. Pools under construction or which are no longer being operated shall be
maintained in a manner so as to prevent the development of unsanitary
conditions potential injury or possible drowning.
f. Wastewater from a swimming pool shall be discharged into a sanitary sewer.
There shall be no direct physical connection between the sewer system and
any drain from the swimming pool or circulations system.
f. Alternative equivalent methods of wastewater disposal may be approved by
the Director of Community Development. No method of wastewater disposal
is permissible which could create a public health hazard or public nuisance.
L. Equipment. No pool equipment shall be placed within required or established front yard
or within any identified easement. Equipment necessary for or related to the operation of
the pool shall not be affixed to any required perimeter fence or common fences between
property owners.
SECTION 6.
APPEAL
Any person aggrieved by the terms of this Ordinance or the interpretation, application, or
enforcement of this Ordinance by the Building Official shall have the right to appeal any action
of the Building Official taken pursuant to this Ordinance. Any such appeal shall be brought, by
written application, filed by an interested party, to the Director of Community Development
within ten (10) days following the action of the Building Official, which is the subject of the
appeal. Enforcement of this Ordinance shall be stayed pending such appeal, except that such
appeal does not stay the owner or applicant’s requirement to comply with temporary fencing
regulations specified herein or as specified by other applicable laws, during the appeal period. In
hearing such appeals, the Building Appeals Board shall review the determination of the Building
Official and, in so doing, may consider whether or not the regulations and standards of this
Ordinance will, by reason of exceptional circumstance or surroundings, constitute a practical
difficulty or unnecessary hardship. The decision of the Building Appeals Board shall be final.
SECTION 7.
CUMULATIVE REPEALER
This Ordinance shall be cumulative of all other Ordinances and shall not repeal any of the
provisions of such Ordinances except for those instances where there are direct conflicts with the
provisions of this Ordinance; provided, however, that Ordinance No. 1995-12 is hereby repealed
in their entirety respectively. Ordinances or parts thereof in force at the time this Ordinance shall
take effect and that are inconsistent with this Ordinance are hereby repealed to the extent that
they are inconsistent with this Ordinance. Provided however, that any complaint, action, claim
or lawsuit which has been initiated or has arisen under or pursuant to Ordinance No. 1995-12, on
the date of adoption of this Ordinance shall continue to be governed by the provisions of such
Ordinance and for that purpose the Ordinance shall remain in full force and effect.
SECTION 8.
SAVINGS
All rights and remedies of the Town of Trophy Club, Texas, are expressly saved as
to any and all violations of the provisions of any other Ordinance affecting swimming pool
regulations which have secured at the time of the effective date of this Ordinance; and, as
to such accrued violations and all pending litigation, both civil and criminal, whether
pending in court or not, under such Ordinances same shall not be affected by this
Ordinance but may be prosecuted until final disposition by the courts.
SECTION 9.
SEVERABILITY
If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or
application thereof to any person or circumstance is held invalid or unconstitutional by a Court
of competent jurisdiction, such holding shall not affect the validity of the remaining portions of
this Ordinance, and the Town Council hereby declares it would have passed such remaining
portions of this Ordinance despite such invalidity, which remaining portions shall remain in full
force and effect.
SECTION 10.
PENALTY
It shall be unlawful for any person to violate any provision of this Ordinance, and any
person violating or failing to comply with any provision hereof shall be fined, upon conviction,
in an amount not more than Two Thousand Dollars ($2,000.00), and a separate offense shall be
deemed committed each day during or on which a violation occurs or continues.
SECTION 11.
PUBLICATION
The Town Secretary of the Town of Trophy Club is hereby directed to publish, the
Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas
Local Government Code.
SECTION 12.
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll
this Ordinance by copying the exact Caption, Penalty and Effective Date in the minutes of the
Town Council and by filing this Ordinance in the ordinance records of the Town.
SECTION 13.
EFFECTIVE DATE
This Ordinance shall become effective from and after its date of adoption and publication
as provided by law, and it is so ordained.
PASSED AND APPROVED by the Town of Trophy Club, Texas this the 20th day of
June 2005.
_______________________________________
Mayor
Town of Trophy Club, Texas
ATTEST:
_____________________________________
Town Secretary
Town of Trophy Club, Texas
[SEAL]
APPROVED AS TO FORM:
_____________________________________
Town Attorney
Town of Trophy Club, Texas
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.D.2
Discuss and take appropriate action regarding termination of the 2005 Annual
Miscellaneous Concrete Repair contract with Driveway Maintenance.
EXPLANATION:
As per previous discussions, this requires Council action.
RECOMMENDATION:
Staff recommends terminating the 2005 Annual Miscellaneous Concrete Repair contract with
Driveway Maintenance.
ACTION BY COUNCIL:
(bag)
Attachments: 1. Driveway Maintenance Termination Letter
June ____, 2005
Mr. David Pardy
Driveway Maintenance, Inc.
3020 Sargent Road
Dallas, Texas 75203
Dear Mr. Pardy:
This letter serves as notice of termination of the contract between Driveway Maintenance,
Incorporated (hereinafter “DMI”) and the Town of Trophy Club (hereinafter “Town”) for Annual
Miscellaneous Concrete Repairs 2005 (hereinafter “Contract”). The “Termination For Default”
clause of the Contract provides as follows:
The Town of Trophy Club reserves the right to enforce the performance of this
Contract in any manner prescribed by law or deemed to be in the best interest of
the Town in the event of breach or default of this contract. The Town reserves the
right to terminate the contract immediately in the event the successful bidder fails
to 1) meet delivery schedules or 2) otherwise perform in accordance with these
specifications. Breach of contract or default authorizes the Town to award to
another bidder, purchase elsewhere and charge the full increase in cost and
handling to the defaulting successful bidder.
As discussed at the May 24, 2005 meeting, DMI has failed to perform in accordance with the
Contract specifications as more specifically outlined hereinbelow:
1. SC.11 Construction Schedule. DMI failed to submit and adhere to a construction
schedule in violation of SC.11. On May 20, 2005, you were specifically instructed by
Jimmy Vandever to submit a schedule prior to starting any further work on the project.
In spite of this instruction, you continued to operate under a sporadic schedule under
which you provided the Town with no notice of move in or move out of the Town. Mr.
Vandever continued to try to make contact with you via telephone by leaving numerous
voice mail messages; however, his phone calls were not returned.
2. SC.20. Cleanup. SC.20 requires that upon completion of particular phases of the
concrete pavement improvements and prior to use by the traveling public, all joints shall
be sawed and then within ten (10) days of sawing the joints, the joints shall be sealed
and the pavement shall then be swept clean. Only with the written permission of the
Town Engineer is the Contractor allowed to leave the joints unsealed. DMI opened the
new pavement section on Trophy Club Drive to traffic flow without notifying the Town
and prior to sealing and cleaning the pavement. Subsequently, Mr. Vandever has to
provide you with specifications on the sealant and direct you to complete the sealing
and cleaning work on Trophy Club Drive.
3. SC.24.2. General Construction. Prior to beginning work, you were instructed by Mr.
Vandever to submit a traffic control plan for Town approval; however, no plan was
submitted. Due to the urgency of the repair at Trophy Club Drive over the box culvert,
you were permitted to continue to work; however, the traffic control plan was never
submitted. You failed to complete the work at that location and abandoned the job site
for over three weeks leaving the area in such a condition that it continued to pose a
hazard to traffic. The Town’s Police Department placed barricades and warning devices
at that location because of the hazard and DMI did not take any action to submit a
traffic control plan or otherwise safeguard the public from the hazard that it created.
Despite several phone calls and conversations with Mr. Vandever directing you to
complete the work, the work was not completed until after the May 24, 2005 meeting
with myself and Mr. Vandever.
4. SC.34 Cooperation of Contractors. SC 34 requires DMI to have a competent
Superintendent capable of reading and thoroughly understanding the plans and
specifications on the project at all times. During the concrete placements on May 17,
52005, neither you nor Joel were present to supervise DMI’s work force. Further, Town
representatives were unable to communicate with DMI’s work force regarding quality
issues that existed with the work due to a language barrier. DMI’s work force did not
have the equipment or materials that they needed to properly complete the work (i.e.,
vibrator or curing compound). If a superintendent had been present as required by the
Contract, this crucial information could have been effectively communicated. As a
result, both the vibrator and the curing compound arrived too late; therefore, Avenue 20
was not consolidated properly or cured properly as required by the Contract.
5. SC.43 Project Video. SC.43 requires the Contractor to videotape the construction
area and property adjacent to the construction prior to the start of construction.
DMI has failed to submit the required videotape to the Town.
Additionally, you have failed to comply with the requirements outlined in the North Central
Texas Council of Governments Standard Specifications for Public Works Construction which
were incorporated into the Contract Documents for this Project. Specifically, you have failed to
comply with the following NCTCOG Specifications: Section 5.8.2 (e)(2) Contraction Joints;
5.8.2 (h)(2) Hand Finishing; 5.8.2(i) Curing; 5.8.2(j) Opening Pavement to Traffic; and 5.8.3 (f)
Mechanical Vibratory Equipment and 5.8.3(i) Miscellaneous Finishing Equipment. As a result
of your failure to perform in accordance with the terms of the Contract, the Town has incurred
losses. Because of the premature opening of Trophy Club Drive, the integrity of the concrete in
that section of roadway has been jeopardized.
Further, please be advised that the Town wishes to preserve its claim under Performance Bond
Number MB6193 with Contractors Bonding and Insurance Company as surety; therefore, this
letter shall serve as Town’s notice of claim thereunder. Additionally, the Town hereby reserves
its rights to remedies available to it under Maintenance Bond Number MB6193 issued by
Contractors Bonding and Insurance Company. This letter shall serve as notice of the Town’s
reservation of all remedies, including both bond and warranty remedies as provided in the
Contract documents and as otherwise available under the law.
As previously verbally instructed on May 27, 2005, you are not to perform any additional work
for the Town of Trophy Club. Please provide the Town with a final request for payment no later
than June 27, 2005. Prior to the release of final payment and/or retainage under the Contract,
you are required to provide the Town with all appropriate documentation as specified in the
NCTCOG Specifications and as reasonably requested by the Town in order to ensure that there
are no unsatisfied claims outstanding.
Sincerely,
Beth Ann Gregory
Community Development Director
c: Mr. David O. Turner,
Maxson, Mahoney, and Turner
8610 King George Drive
Dallas, Texas 75235
Mr. R.H. Benson
Contractors Bonding and Insurance Company
1213 Valley Street
P.O. Box 9271
Seattle, Washington 98109-0271
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.D.3
Consent agenda: Discuss and take appropriate action to approve financials dated
May 2005.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
(lr)
Attachments: 1.None
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.D.4
Consent agenda: Discuss and take appropriate action to approve Minutes dated
June 6, 2005.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
(lr)
Attachments: 1. Minutes
MINUTES OF REGULAR TOWN COUNCIL MEETING FOR THE
TOWN OF TROPHY CLUB
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
Monday, June 6, 2005
7:00 P.M.
STATE OF TEXAS §
COUNTY OF DENTON §
The Town Council of the Town of Trophy Club, Texas, met in Regular Session on Monday, June 6, 2005. The
meeting was held within the boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
Nick Sanders Mayor
Pam Cates Mayor Pro Tem
Susan Edstrom Council Member
Roger Williams Council Member
Beverly Foley Council Member
Scott Spence Council Member
STAFF AND GUEST(S) PRESENT:
Donna Welsh Town Manager
Lisa Ramsey Interim Town Secretary
Roger Unger Finance Director
Beth Ann Gregory Community Development Manager
Patricia Adams Town Attorney
Mike Pastor IS Manager
Adam Adams Parks and Recreation Director
Randy Briggs Police and Fire Services Director
Kerin Fleck Planning and Zoning Coordinator
Tim Welsh Welsh Engineer representative for Beck Properties
A.1 Call to order and announce a quorum.
Mayor Nick Sanders called the Regular Session to order at 7:00 p.m. noting a quorum was present.
A.2 Invocation.
Mayor sanders offered the invocation.
A.3 Pledge of allegiance to the American Flag.
Pledge of allegiance to the Texas Flag.
"Honor the Texas flag, I pledge allegiance to thee, Texas one and indivisible."
Mayor Pro Tem Cates led the pledges.
A.4 Oath of Office to be administered by Municipal Court Judge, Mark Chambers and Presentation of
Certificate of Election to Council Member, Scott Spence.
Town Council incumbent, Scott Spence was sworn into office and presented with a Certificate of Election by
Municipal Court, Judge Mark Chambers.
B.1 Citizen presentations: this is an opportunity for citizens to address the Council on any matter
whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss
any presentations made to the Council at this time concerning an item not listed on the agenda. The
Council will hear presentations on specific agenda items prior to the Council addressing those items.
No citizen presentations.
B.2 Town Manager Report and Discussion Regarding Project Updates as Listed Below: There will be no
action taken regarding any individual project posted under this item and discussion will be limited.
If extensive discussion is required, the item may be placed on a future agenda.
Mayor Sanders called the Council’s attention to item B.2 and introduced the Town Manager’s report. This report
will replace staff reports and will allow for more discussion between Council, staff and citizens.
Departmental Updates:
Administration: Administrative Advisory Committee meeting topics
Purchasing Guidelines
Meeting with D.R. Horton
The Administrative Advisory Committee will meet on Wednesday, June 15th to discuss; personnel policies, contract
vs. part-time employees as classified by the DOL and the IRS, and the possibility of combining Town/MUD staff in
order to create more efficiencies.
Mayor Pro Tem Cates and staff member Renae Gonzales working to develop an accounting procedures manual and
review the purchasing polices.
Mayor Sanders, Town Manager, Donna Welsh, Finance Director, Roger Unger and Town Attorney, Patricia Adams
met with DR Horton for general discussion. They plan to meet again in the week following.
Community Development: Update on street construction
The road construction on Indian Creek from Pebble Beach to Heritage and Shields is under way. The utility
construction is being completed on the south side, which is the eastbound lane. Starting the second week in June,
construction will start on the southbound lane.
Building Addition: opened RFP’s on June 6th for Construction Manager at Risk, which will be discussed under D.5.
Finance: Next Budget Workshop
Budget Workshop scheduled for June 20th between Town Council, staff and Ways and Means.
RFP is being developed for auditing service for the Town.
Information Services: Implementation of Courts Software - Status
Scan of Contracts/Documents for Internal Records Management
Implementing court software to integrate with financial accounting package for better oversight.
Design and template complete Internal Records Management, pending Legal review.
Legal: Status of Comptroller's Office Audit of Court
Final Judgment in Brown Lawsuit in favor of Town
Comptroller’s Audit of Court estimated to be complete in 4 to 6 weeks.
The Brown vs. the Town of Trophy Club lawsuit was dismissed.
Parks and Recreation: Payment in lieu of parkland dedication for Eagle's Ridge subdivision
P & R Director, Adam Adams and a representative form Starwood working on an agreement to present to Council in
the next 30 days to give cash in lieu of parkland.
Planning and Zoning: Status of Ordinance Codification
Status of Preliminary and Final Plat Application from Starwood Homes for
Eagles Ridge
Ordinance for codification is complete and will be forward the Town Attorney for review.
Preliminary and Final Plat Application from Starwood Homes for Eagles Ridge will go before Council on June 20th.
Police and Fire Services: School Crossing Program
Development of Crime District
The Town is receiving seventy-eight cents per capita from the County, from vehicle registration that can be used for
child safety programs or crossing guard programs. Chief Briggs is working on a plan to present to Council in the
next couple of meetings, in respect to the School Crossing Program.
Chief Briggs is also working on the Development of a Crime District, which is generated from sales tax. Currently,
Trophy Club is maxed out on the sales tax at eight and one quarter percent. If in the future, the EDC Tax structure
changes, implementing a Crime District program or a street maintenance tax, may be a possibility.
EDC Task Force: Mission Statement and Current Issues and Meeting Topics
Mayor Pro Tem Cates is working with the EDC Task Force to develop a comprehensive package on ways to develop
and promote commercial retail in the Town. The initial concept is expected to come before Council in the next
couple of meetings.
B.3 Discussion on Items for Future Agenda.
There was no discussion for future agenda items.
Council convened into Public Hearing at 7:15 p.m.
TOWN COUNCIL TO CONVENE INTO PUBLIC HEARING
PUBLIC HEARING
C.1 Public Hearing: An ordinance repealing Ordinance No. 2005-09 P&Z in its entirety and adopting a
new Ordinance amending Zoning Ordinance No. 2000-06 P&Z by adopting a new Article 5, Section
35 entitled "Accessory Structures".
No citizens addressed Council.
Council reconvened into Regular Session at 7:16 p.m.
TOWN COUNCIL TO RECONVENE INTO REGULAR SESSION
*REGULAR SESSION
D.1 Discuss and take appropriate action regarding an ordinance repealing Ordinance No. 2005-09 P&Z
in its entirety and adopting a new Ordinance amending Zoning Ordinance No. 2000-06 P&Z by
adopting a new Article 5, Section 35 entitled "Accessory Structures".
Council member Edstrom made the motion to approve, Mayor Pro Tem Cates seconded. P & Z Coordinator, Kerin
Fleck advised that the only changes made were to section A1, subsection A, from: Accessory structures less
than 120 square feet and not exceeding 6 feet in height shall not require a building permit, to: Accessory
structures less than one hundred twenty (120) square feet of floor area shall not require a building permit.
And to subsection C.1, from: a minimum of forty-five feet (45’) from the front property line, to 1. Behind
the front building setback.
Motion to approve an ordinance repealing Ordinance No. 2005-09 P&Z in its entirety and adopting a new Ordinance
amending Zoning Ordinance No. 2000-06 P&Z by adopting a new Article 5, Section 35 entitled
"Accessory Structures," carried unanimously.
D.2 Discuss and take appropriate action relative to Preliminary Plat for lots 1-40, block 4 of The Villas @
Waters Edge, located generally to the east of Katie Lane and Stephen's Court, to the west of
Meadowbrook Lane and to the south of Harmony Park.
Council member Folly made the motion to approve; Council member Edstrom seconded. The Council recognized
Tim Welsh from Welsh Engineering as he presented the next phase of The Villas @ and Waters Edge. The
development is approximately ten acres, thirty-seven lots, with two open spaces, one green belt, a zero lot line
product and a lot size varying from 7,200 to 14,919 in size.
Mayor Sanders requested that the following be indicated in the minutes:
1. Approaching HOA with potentially allowing access through the gate at the bottom of Caty Lane into
Meadowbrook.
2. The previous drainage issue that affected the golf course and resident’s yards was discussed. Planning and
Zoning Coordinator, Kerin Fleck confirmed with Mr. Welsh that the civil, containing the drainage information
will accompany the final plans when submitted to the Engineer.
3. Suggestion that in the future, the developer look at a slightly different design that does not break up green belt
and zero lot line construction.
Andy Hayes 25 W. Hillside, requested that some trees be planted along the north boundary of the development to
maintain the integrity of the community.
Motion to approve the preliminary plat, passed 4-1, with Town Council Member Spence opposing.
D.3 Discussion / Disclosure of Substantial Interest Pursuant to Conflict of Interest Provisions Contained
in Chapter 171 of the Texas Local Government Code Regarding WinOcular, Records Management
Software, donated by Mayor Sanders in 2003.
Mayor Sanders disclosed that his company, Combined Computer Inc. sold computer software to the Town. His
company Combined Computer Inc. receives approximately $1,900.00 in maintenance yearly. Mayor
Sanders agreed to sign a Conflict of Interest form that will remove him from discussion or votes on any
future agenda or budget item in reference to Combined Computer Inc.
No action was taken.
D.4 Item tabled at the 4/18/05 Council Meeting: Town Council to discuss and take appropriate action to
award or reject the bids for the Svore Municipal Building addition. (Need motion to remove from
table.)
Council member Williams made the motion to remove from table; Council Edstrom seconded. Motion carried
unanimously.
Staff requested that Council reject all bids for the Svore Municipal Building as all came in too high and in access
over $100,000 over budget
Council member Williams made the motion to reject all bids for the Svore Municipal Building addition; Council
Edstrom seconded. Motion carried unanimously.
D.5 Discuss and take appropriate action regarding the award or rejection of the bids for the Svore
Municipal Building addition and to provide further direction to staff regarding construction of a
municipal building addition.
Beth Ann Gregory, CD Director advised Council that after the cost for the new building came in higher than
expected, staff began to look for a lower cost alternative to Council’s objective that would increase the
space, creating efficiencies with the centralization of facilities and reducing the overhead of maintaining the
core of the building. An alternative floor plan was presented to Council. Due to the viable option of the
new design, staff went out for RFQ’s and RFP’s for Construction Manager at Risk. The proposals came in
at five to nine percent.
The Council directed staff to confirm with the number one respondent of the RFQ for Construction Manager at Risk,
that the Svore building additions can done with the remaining amount budgeted.
Mayor Pro Tem Cates made the motion to direct Staff to confirm with the number one respondent of the RFQ for
Construction Manager at Risk, that the Svore building additions can be done with the remaining amount
budgeted; Council member Spence seconded Motion carried unanimously.
D.6 Discuss and take appropriate action regarding the system of appointing citizens to advisory groups,
boards and commissions; ethics and conduct of advisory group, board and commission members;
and revisions to Committee Handbook.
Andy Hayes, 25 W. Hillside and Neil Twomey, 203 Oakmont addressed the Council.
No action taken for this item. Council gave the following direction to the staff:
The Board, Commission and Citizen Advisory Group Handbook will first by reviewed by Administrative Advisory
Group. Once their revisions are complete the Handbook will go before Council for approval.
Boards and Commission
At the end of a term, members who have successfully served their Board and desire to continue to serve will be
given first priority of reappointment to the Council.
The Board will be responsible to interviewing for any other openings and will make their recommendation to
Council for appointment.
Advisory Groups
The staff liaison for each Advisory Group will be responsible for the selection of members.
Separation of Ways and Means and EDC 4A
Ways and Means staff liaison, Roger Unger was advised that as vacancies occur more opportunity for resident to
serve should be allowed. A seat of EDC 4 A does not guarantee automatic appointment to the Ways and Means
Advisory Group.
D.7 Consent agenda: Discuss and take appropriate action to approve a Resolution between Cedar Valley
College and the Town of Trophy Club.
D.8 Consent agenda: Discuss and take appropriate action to approve Minutes dated May 16th and May
23rd, 2005.
Council member Edstrom made the motion to pass consent items D.7 and D.8; Council member Foley seconded.
Motion carried unanimously.
All matters listed as Consent Agenda are considered to be routine by the Town Council and will be enacted
by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will
be removed from the consent agenda and will be considered separately.
E.2 Adjourn.
Council member Foley made the motion to adjourn; Council member Williams seconded. Motion carried
unanimously.
* The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open
Meeting Act, LGC.551.071
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.D.5
Additional Information for Council
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
(Initials)
Attachments: 1. Information Memorandum
2. Fire Services Monthly Report
3. Police Services Monthly Report
4. Court Monthly Report
5. NEFDA Annual Report
TROPHY CLUB DEPARTMENT OF
PUBLIC SAFETY
MONTHLY REPORT
FOR
INFORMATION ONLY
MAY 2005
TROPHY CLUB DEPARTMENT OF
PUBLIC SAFETY
MONTHLY REPORT
FOR
INFORMATION ONLY
MAY 2005
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TOTAL 165 68 50 205 7 1 3 2 8 300 34 18 #REF! 177
Trophy Club DPS Patrol May 2005
Dispatched Calls
34.84%
Number of Written
Reports
3.95%
Out of City Assistance
Calls
2.09%
Misdemeanor
Arrest
0.93%
Felony Arrests
0.23%
DWI Investigations
0.12%
V ehicle Searches
0.81%
Accidents
0.35%
Parking Citations
23.81%
Traffic Citations
(Non-moving)
5.81%
Traffic Stops
19.16%
Traffic Citations
(Moving)
7.90%
Traffic Stops
Traffic Citations
(Moving)
Traffic Citations
(Non-moving)
Parking Citations
Vehicle Searches
DWI Investigations
Accidents
Felony Arrests
Misdemeanor
Arrest
Dispatched Calls
Number of Written Reports
Out of City Assistance Calls
Monthly Crime/Patrol Statistics - May 2005
CID Monthly Cases-May 2005
Agency Assist NLPD
5%
Agg Sex Assault of Child
5%
Assault - FV
5%
Burglary
5%
Criminal Mischief
10%
Criminal Trespass
6%
Disorderly Conduct
6%
Disruption of Class
10%
Disturbance/Domestic
6%
Information Report
6%
MCU Response
6%
Mip - Alcohol
6%
MIP-Alcohol
6%
Theft 1500-20K
6%
UUMV
6%
VCSA PG 1
6%
CID Case May 2005
Agency Assist NLPD 1
Agg Sex Assault of Child 1
Assault - FV 1
Burglary 1
Criminal Mischief 2
Criminal Trespass 1
Disorderly Conduct 1
Disruption of Class 2
Disturbance/Domestic 1
Information Report 1
MCU Response 1
Mip - Alcohol 1
MIP-Alcohol 1
Theft 1500-20K 1
UUMV 1
VCSA PG 1 1
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.E.1
Pursuant to Texas Government Code, Annotated, Subchapter 551, Section 551.071
(a) & (b) "Consultation with Attorney", the Council will enter into executive session
to discuss the following:
(A) Consultation with Town Attorney on a matter in which the duty of the
Attorney to the Governmental Body under the Disciplinary Rules of
Professional Conduct of the State Bar of Texas clearly conflict with the Open
Meetings Act (551.071 (b)).
(1) Legal Advice Relative to Purchasing Laws and Policies Applicable to Consultant
and Professional Services Agreements, including the Municipal
Building Addition
(paa)
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.E.2
Staff to provide an update, as directed by Council at their 6/6/05 meeting, to
determine the feasibility of the construction project within budget constraints for
the Svore Municipal Building addition and for Council to discuss and take
appropriate action regarding the update and the award\rejection of proposals for a
Construction Manager at Risk for the building addition.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
Attachments: 1. RFQ Scoring Sheets
a. Goldsmith Construction
b. Larrison Construction
c. Steele Freeman
2. RFP Scoring Sheets
a. Goldsmith Construction
b. Larrison Construction
c. Steele Freeman
3. RFQ & RFP Summary Sheet
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.E.3
Discuss and provide direction to Staff regarding architectural services for municipal
projects, including the Municipal Additions and Alterations project.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
(lr)
Attachments: 1. Government Code 2254
2. Local Government Code 271
3. Town of Trophy Club Procurement Policies and Procedures
GOVERNMENT CODE
CHAPTER 2254. PROFESSIONAL AND CONSULTING SERVICES
SUBCHAPTER A. PROFESSIONAL SERVICES
Sec.A2254.001.AASHORT TITLE.AAThis 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.A2254.002.AADEFINITIONS.AAIn this subchapter:
(1)AA"Governmental entity" means:
(A)AAa state agency or department;
(B)AAa district, authority, county, municipality,
or other political subdivision of the state;
(C)AAa 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)AAa publicly owned utility.
(2)AA"Professional services" means services:
(A)AAwithin the scope of the practice, as defined
by state law, of:
(i)AAaccounting;
(ii)AAarchitecture;
(iii)AAlandscape architecture;
(iv)AAland surveying;
(v)AAmedicine;
(vi)AAoptometry;
(vii)AAprofessional engineering;
(viii)AAreal estate appraising; or
(ix)AAprofessional nursing; or
(B)AAprovided in connection with the professional
employment or practice of a person who is licensed or registered as:
(i)AAa certified public accountant;
(ii)AAan architect;
(iii)AAa landscape architect;
(iv)AAa land surveyor;
(v)AAa physician, including a surgeon;
(vi)AAan optometrist;
(vii)AAa professional engineer;
(viii)AAa state certified or state licensed
1
real estate appraiser; or
(ix)AAa 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.A2254.003.AASELECTION OF PROVIDER; FEES.AA(a)AAA
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)AAon the basis of demonstrated competence and
qualifications to perform the services; and
(2)AAfor a fair and reasonable price.
(b)AAThe professional fees under the contract:
(1)AAmust be consistent with and not higher than the
recommended practices and fees published by the applicable
professional associations; and
(2)AAmay not exceed any maximum provided by law.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Sec.A2254.0031.AAINDEMNIFICATION.AAA 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.A2254.004.AACONTRACT FOR PROFESSIONAL SERVICES OF
ARCHITECT, ENGINEER, OR SURVEYOR.AA(a)AAIn procuring
architectural, engineering, or land surveying services, a
governmental entity shall:
(1)AAfirst select the most highly qualified provider of
those services on the basis of demonstrated competence and
2
qualifications; and
(2)AAthen attempt to negotiate with that provider a
contract at a fair and reasonable price.
(b)AAIf a satisfactory contract cannot be negotiated with the
most highly qualified provider of architectural, engineering, or
land surveying services, the entity shall:
(1)AAformally end negotiations with that provider;
(2)AAselect the next most highly qualified provider;
and
(3)AAattempt to negotiate a contract with that provider
at a fair and reasonable price.
(c)AAThe entity shall continue the process described in
Subsection (b) to 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.A2254.005.AAVOID CONTRACT.AAA 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.A2254.006.AACONTRACT NOTIFICATION.AAA 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.
SUBCHAPTER B. CONSULTING SERVICES
Sec.A2254.021.AADEFINITIONS.AAIn this subchapter:
(1)AA"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.
3
(2)AA"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)AA"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)AA"Political subdivision" means:
(A)AAa county;
(B)AAan incorporated or unincorporated
municipality;
(C)AAa public junior college;
(D)AAa public school district or other educational
or rehabilitative district;
(E)AAa metropolitan or regional transit
authority;
(F)AAan airport authority;
(G)AAa river authority or compact;
(H)AAa regional planning commission, a council of
governments, or a similar regional planning agency created under
Chapter 391, Local Government Code;
(I)AAthe Edwards Aquifer Authority or a district
governed by Title 4, Water Code;
(J)AAa soil and water conservation district;
(K)AAa county or municipal improvement district;
(L)AAa county road or road utility district;
(M)AAa county housing authority;
(N)AAan emergency services or communications
district;
(O)AAa fire prevention district;
(P)AAa public health or hospital authority or
district;
(Q)AAa mosquito control district;
(R)AAa special waste district;
(S)AAa rural rail transportation district; or
4
(T)AAany other local government or special
district of this state.
(5)AA"State agency" has the meaning assigned by Section
2151.002.
(6)AA"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.A2254.022.AAINTERPRETATION OF SUBCHAPTER.AA(a)AAThis
subchapter shall be interpreted to ensure:
(1)AAthe greatest and fairest competition in the
selection by state agencies of consultants; and
(2)AAthe giving of notice to all potential consultants
of the need for and opportunity to provide consulting services.
(b)AAThis subchapter does not:
(1)AAdiscourage 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)AAprohibit 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)AArequire or prohibit the use of competitive bidding
procedures to 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.A2254.023.AAAPPLICABILITY OF SUBCHAPTER.AAThis
subchapter applies to consulting services that a state agency
5
acquires with money:
(1)AAappropriated by the legislature;
(2)AAderived from the exercise of the statutory duties
of a state agency; or
(3)AAreceived 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.A2254.024.AAEXEMPTIONS.AA(a)AAThis subchapter does not
apply to or discourage the use of consulting services provided by:
(1)AApractitioners of professional services described
in Subchapter A;
(2)AAprivate legal counsel;
(3)AAinvestment counselors;
(4)AAactuaries;
(5)AAmedical or dental services providers; or
(6)AAother 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)AAIf the governor, comptroller, and General Services
Commission 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)AAThe comptroller by rule may define circumstances in
which a state 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.
6
1, 1997.
Sec.A2254.025.AAEMERGENCY WAIVER.AA(a)AAThe 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)AAA state agency ’s request for a waiver must include
information required by the governor, including:
(1)AAinformation about the nature of the emergency;
(2)AAthe reason that the state agency did not foresee
the emergency;
(3)AAthe name of the consultant with whom the agency
intends to contract; and
(4)AAthe amount of the intended contract.
(c)AAAs 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)AAThe governor shall adopt rules to administer this
section.
(e)AAIn 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 is not unforeseen if a
state agency was negligent in foreseeing the occurrence of the
emergency.
(f)AAThis 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.
7
Sec.A2254.026.AACONTRACT WITH CONSULTANT.AAA state agency
may contract with a consultant only if:
(1)AAthere is a substantial need for the consulting
services; and
(2)AAthe 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.A2254.027.AASELECTION OF CONSULTANT.AAIn selecting a
consultant, a state agency shall:
(1)AAbase its choice on demonstrated competence,
knowledge, and qualifications and on the reasonableness of the
proposed fee for the services; and
(2)AAif 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.A2254.028.AANOTICE OF INTENT: MAJOR CONSULTING SERVICES
CONTRACT.AA(a)AABefore entering into a major consulting services
contract, a state agency shall:
(1)AAnotify the Legislative Budget Board and the
governor ’s Budget and Planning Office that the agency intends to
contract with a consultant;
(2)AAgive 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)AAobtain a finding of fact from the governor ’s Budget
and Planning Office that the consulting services are necessary.
(b)AAA major consulting services contract that a state agency
enters into without first obtaining the finding required by
Subsection (a)(3) is void.
8
(c)AASubsection (a)(3) 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.
Sec.A2254.029.AAPUBLICATION IN TEXAS REGISTER BEFORE
ENTERING INTO MAJOR CONSULTING SERVICES CONTRACT.AA(a)AANot 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)AAan invitation for consultants to provide offers of
consulting services;
(2)AAthe name of the individual who should be contacted
by a consultant that intends to make an offer;
(3)AAthe closing date for the receipt of offers; and
(4)AAthe procedure by which the state agency will award
the contract.
(b)AAIf 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 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.A2254.030.AAPUBLICATION IN TEXAS REGISTER AFTER ENTERING
INTO MAJOR CONSULTING SERVICES CONTRACT.AANot later than the 20th
day after the date of entering into a major consulting services
9
contract, the contracting state agency shall file with the
secretary of state for publication in the Texas Register:
(1)AAa description of the activities that the
consultant will conduct;
(2)AAthe name and business address of the consultant;
(3)AAthe total value and the beginning and ending dates
of the contract; and
(4)AAthe 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.A2254.0301.AACONTRACT NOTIFICATION.AAA 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.
Added by Acts 1999, 76th Leg., ch. 281, Sec. 14, eff. Sept. 1, 1999.
Sec.A2254.031.AARENEWAL; AMENDMENT; EXTENSION.AA(a)AAA
state agency that intends to renew a major consulting services
contract shall:
(1)AAfile 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)AAcomply with Sections 2254.028 and 2254.029 if the
renewal contract is a major consulting services contract.
(b)AAA 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
10
than a public junior college.
(c)AAA state agency that intends to amend or extend a major
consulting services contract shall:
(1)AAnot 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)AAcomply with Sections 2254.028 and 2254.029 if the
contract after the amendment or extension is a major consulting
services contract.
(d)AAA 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.
Sec.A2254.032.AACONFLICTS OF INTEREST.AA(a)AAAn 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)AAthe officer or employee has in the private
consultant who submitted the offer; or
(2)AAan 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)AAThis 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.
11
Sec.A2254.033.AARESTRICTION ON FORMER EMPLOYEES OF A STATE
AGENCY.AA(a)AAAn 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)AAthe nature of the previous employment with the
agency or the other agency;
(2)AAthe date the employment was terminated; and
(3)AAthe annual rate of compensation for the employment
at the time of its termination.
(b)AAA 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.A2254.034.AACONTRACT VOID.AA(a)AAA contract entered
into in violation of Sections 2254.029 through 2254.031 is void.
(b)AAA contract entered into with a private consultant who
did not comply with Section 2254.033 is void.
(c)AAIf a contract is void under this section:
(1)AAthe comptroller may not draw a warrant or transmit
money to satisfy an obligation under the contract; and
(2)AAa 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)AAThis 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.A2254.035.AADIVIDING CONTRACTS.AA(a)AAA state agency
may not divide a consulting services contract into more than one
contract to avoid the requirements of this subchapter.
(b)AAThis section applies to all consulting services
contracts, including renewals, amendments, and extensions of
consulting services contracts.
12
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Sec.A2254.036.AAARCHIVES.AA(a)AAOn 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)AACopies 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)AAThe 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.
Sec.A2254.037.AAREPORTS.AAAs 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.A2254.038.AAMIXED CONTRACTS.AAThis 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.A2254.039.AACOMPTROLLER ’S RULES.AA(a)AAThe 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)AAThe comptroller shall give proposed rules to the
13
governor and the General Services Commission for review and comment
before adopting the rules.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Sec.A2254.040.AAPROCUREMENT BY GENERAL SERVICES
COMMISSION.AA(a)AAThe General Services Commission may, on request
of a state agency, procure for the agency consulting services that
are covered by this subchapter.
(b)AAThe commission may require reimbursement for the costs
it incurs in procuring the 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.
SUBCHAPTER C. CONTINGENT FEE CONTRACT FOR LEGAL SERVICES
Sec.A2254.101.AADEFINITIONS.AAIn this subchapter:
(1)AA"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)AA"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)AA"State governmental entity":
(A)AAmeans 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;
(B)AAincludes the state when a state officer is
bringing a parens patriae proceeding in the name of the state; and
(C)AAdoes 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.
14
Sec.A2254.102.AAAPPLICABILITY.AA(a)AAThis subchapter
applies only to a contingent fee contract for legal services
entered into by a state governmental entity.
(b)AAThe 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)AAThis subchapter does not apply to a contract for legal
services entered into by an institution of higher education under
Section 153.006, Education Code.
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.
Sec.A2254.103.AACONTRACT APPROVAL; SIGNATURE.AA(a)AAA
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)AAthe 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)AAfor 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)AAThe 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)AAA 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)AABefore approving the contract, the governing body,
elected or appointed officer, or governor, as appropriate, must
find that:
15
(1)AAthere is a substantial need for the legal
services;
(2)AAthe 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)AAthe 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)AABefore 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 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)AAA 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.A2254.104.AATIME AND EXPENSE RECORDS REQUIRED; FINAL
16
STATEMENT.AA(a)AAThe 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)AAThe 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)AAOn 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)AAThis 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 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.A2254.105.AACERTAIN GENERAL CONTRACT REQUIREMENTS.AAThe
contract must:
(1)AAprovide for the method by which the contingent fee
17
is computed;
(2)AAstate 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)AAstate 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)AAstate 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)AAstate 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.A2254.106.AACONTRACT REQUIREMENTS: COMPUTATION OF
CONTINGENT FEE; REIMBURSEMENT OF EXPENSES.AA(a)AAThe 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 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
18
firm.
(b)AAThe 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)AASubject 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)AAIn 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)AAThe contract also may:
(1)AAlimit the amount of expenses that may be
reimbursed; and
(2)AAprovide that 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
19
remainder of the fee payable on a regular hourly rate basis without
regard to the outcome of the matter.
(f)AAExcept as provided by Section 2254.107, this section
does not apply to a contingent fee contract for legal services:
(1)AAin which the expected amount to be recovered and
the actual amount recovered do not exceed $100,000; or
(2)AAunder 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)AAThis 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.A2254.107.AAMIXED HOURLY AND CONTINGENT FEE CONTRACTS;
REIMBURSEMENT FOR SUBCONTRACTED WORK.AA(a)AAThis section applies
only to a contingent fee contract:
(1)AAunder 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)AAunder 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)AASections 2254.106(a) and (e) apply to the contract
without regard to the expected or actual amount of recovery under
the contract.
(c)AAThe 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)AAThe limitations prescribed by Section 2254.108 on
20
payment of the fee apply only to payment of the contingent portion
of the fee.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1,
1999.
Sec.A2254.108.AAFEE PAYMENT AND EXPENSE
REIMBURSEMENT.AA(a)AAExcept 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)AAIf 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)AAthe legislature is not in session; and
(2)AAthe 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)AAA payment or reimbursement under the contract may not be
made until:
(1)AAfinal 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)AAthe 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)AALitigation and other expenses payable under the
21
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 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.A2254.109.AAEFFECT ON OTHER LAW.AA(a)AAThis subchapter
does not limit the right of a state governmental entity to recover
fees and expenses from opposing parties under other law.
(b)AACompliance 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)AAA 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.A2254.151.AADEFINITION.AAIn 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.
22
Sec.A2254.152.AAAPPLICABILITY.AAThis 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.
Sec.A2254.153.AACONTRACTS FOR LEGAL SERVICES
AUTHORIZED.AASubject 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.A2254.154.AAATTORNEY GENERAL; COMPETITIVE
PROCUREMENT.AAThe 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.
23
LOCAL GOVERNMENT CODE
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:
(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 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 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.
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 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.
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.
(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 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.
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 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 BIDDING 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 $25,000 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.
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 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 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.
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) An officer or employee of a governmental entity commits an offense if the officer
or employee intentionally or knowingly violates 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, other than by conduct described by Subsection (a). An offense under this
subsection is a Class B misdemeanor.
(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) or (b). An offense under this subsection is a Class C misdemeanor.
Added by Acts 1989, 71st Leg., ch. 1250, Sec. 15, eff. Sept. 1, 1989.
Sec. 271.030. REMOVAL; INELIGIBILITY. (a) The final conviction of an
officer or employee of a governmental entity for an offense under Section 271.029(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 governmental entity with which the person served
when the offense occurred; and
(3) to receive any compensation through a contract with that governmental
entity.
(c) This section does not prohibit the payment of retirement or workers' compensation
benefits to the removed officer or employee.
Added by Acts 1989, 71st Leg., ch. 1250, Sec. 16, eff. Sept. 1, 1989.
SUBCHAPTER C. CERTIFICATE OF OBLIGATION ACT
Sec. 271.041. SHORT TITLE. This subchapter may be cited as the 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; 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, 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.
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 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 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 402.014 of this code or Section 791.026, Government Code.
(d) In exercising its authority to issue certificates of 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.
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.
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
(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;
(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.
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.
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 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 14th 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.
(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.
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. The proceeds may not be used to pay for work done by employees of the issuer and
paid for as work progresses. Any accrued interest received must be deposited in the interest and
sinking fund established for the payment of the 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.
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 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 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 BIDDING 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
$25,000, the governing body must submit the proposed contract to competitive bidding.
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.
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 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 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 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 FOR CERTAIN COUNTIES OR A
DISTRICT GOVERNED BY THOSE COUNTIES.
Text of section as amended by Acts 2003, 78th Leg., ch. 660, Sec. 2
(a) This section applies only to a county with a population of 2.8 million or more.
(b) The commissioners court of the 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.
(c) After a conference is conducted under Subsection (b), 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.
For text of section as amended by Acts 2003, 78th Leg., ch. 725, Sec. 2, see Sec. 271.0565, post.
Sec. 271.0565. PRE-BID CONFERENCE.
Text of section as amended by Acts 2003, 78th Leg., ch. 725, Sec. 2
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.
Added by Acts 2001, 77th Leg., ch. 255, Sec. 3, eff. May 22, 2001. Amended by Acts 2003,
78th Leg., ch. 725, Sec. 2, eff. Sept. 1, 2003.
For text of section as amended by Acts 2003, 78th Leg., ch. 660, Sec. 2, see Sec. 271.0565, ante.
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.
(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 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. The original contract price may not be increased by more than
25 percent. The original price may not be decreased by more than 25 percent without the
consent of the contractor.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
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.
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) An officer or employee of an issuer commits an offense if the officer or employee
intentionally or knowingly violates Section 271.054, other than by conduct described by
Subsection (a). An offense under this subsection is a Class B misdemeanor.
(c) An officer or employee of an issuer commits an offense if the officer or employee
intentionally or knowingly violates this subchapter, other than by conduct described by
Subsection (a) or (b). An offense under this subsection is a Class C misdemeanor.
Added by Acts 1989, 71st Leg., ch. 1250, Sec. 18, eff. Sept. 1, 1989.
Sec. 271.065. REMOVAL; INELIGIBILITY. (a) The final conviction of an
officer or employee of an issuer for an offense under Section 271.064(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 issuer with which the person served when the offense
occurred; and
(3) to receive any compensation through a contract with that issuer.
(c) This section does not prohibit the payment of retirement or workers' compensation
benefits to the removed officer or employee.
Added by Acts 1989, 71st Leg., ch. 1250, Sec. 19, eff. Sept. 1, 1989.
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 State Purchasing and General
Services Commission shall establish a program by which the commission performs purchasing
services for local governments. The services must include:
(1) the extension of state contract prices to participating local governments
when the commission considers it feasible;
(2) solicitation of bids on items desired by local governments if the solicitation
is considered feasible by the commission and is desired by the local government; and
(3) provision of information and technical assistance to local governments
about the purchasing program.
(b) The commission may charge a participating local government an amount not to
exceed the actual costs incurred by the commission in providing purchasing services to the local
government under the program.
(c) The commission may adopt rules and procedures necessary to administer the
purchasing program.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
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
(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) The provisions of Chapter 2177, Government Code, shall apply to a local
government that exercises the ability to electronically send purchase orders and information
under the provisions of this section.
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.
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.
(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.
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 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 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, 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 or a local cooperative organization.
(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.
Added by Acts 1995, 74th Leg., ch. 746, Sec. 7, eff. Aug. 28, 1995.
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 H. ALTERNATIVE PROJECT DELIVERY METHODS FOR CERTAIN
PROJECTS
Sec. 271.111. DEFINITIONS. In this subchapter:
(1) "Architect" means an individual registered as an architect under Chapter
1051, Occupations Code.
(2) "Contractor" in the context of a contract for the construction, rehabilitation,
alteration, or repair of a facility means a sole proprietorship, partnership, corporation, or other
legal entity that assumes the risk for constructing, rehabilitating, altering, or repairing all or part
of the facility at the contracted price.
(3) "Design-build contract" means a single contract with a design-build firm for
the design and construction of a facility.
(4) "Design-build firm" means a partnership, corporation, or other legal entity
or team that includes an engineer or architect and builder qualified to engage in building
construction in Texas.
(5) "Design criteria package" means a set of documents that provides sufficient
information to permit a design-build firm to prepare a response to a governmental entity's request
for qualifications and any additional information requested, including criteria for selection. The
design criteria package must specify criteria the governmental entity considers necessary to
describe the project and may include, as appropriate, the legal description of the site, survey
information concerning the site, interior space requirements, special material requirements,
material quality standards, conceptual criteria for the project, special equipment requirements,
cost or budget estimates, time schedules, quality assurance and quality control requirements, site
development requirements, applicable codes and ordinances, provisions for utilities, parking
requirements, or any other requirement, as applicable.
(6) "Engineer" means an individual licensed as an engineer under Chapter
1001, Occupations Code.
(7) "Facility" means buildings the design and construction of which are
governed by accepted building codes. The term does not include:
(A) highways, roads, streets, bridges, utilities, water supply 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
(B) buildings or structures that are incidental to projects that are
primarily civil engineering construction projects.
(8) "Fee" in the context of a contract for the construction, rehabilitation,
alteration, or repair of a facility means the payment a construction manager receives for its
overhead and profit in performing its services.
(9) "General conditions" in the context of a contract for the construction,
rehabilitation, alteration, or repair of a facility means on-site management, administrative
personnel, insurance, bonds, equipment, utilities, and incidental work, including minor field
labor and materials.
(10) "Governmental entity" means a municipality, county, river authority, or
defense base development authority established under Chapter 378 as added by Chapter 1221,
Acts of the 76th Legislature, Regular Session, 1999.
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001. Amended by Acts 2003,
78th Leg., ch. 877, Sec. 1, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.791, eff.
Sept. 1, 2003.
Sec. 271.112. APPLICABILITY; OTHER LAW. (a) Any provision in the
charter of a home-rule municipality or regulation, if any, of a county, river authority, or defense
base development authority that requires the use of competitive bidding or competitive sealed
proposals or that prescribes procurement procedures and that is in conflict with this subchapter
controls over this subchapter unless the governing body of the governmental entity elects to have
this subchapter supersede the charter or regulation.
(b) The purchasing requirements of Section 361.426, Health and Safety Code, apply to
purchases by a governmental entity made under this subchapter.
(c) Except as provided by this section, to the extent of any conflict, this subchapter
prevails over any other law relating to the purchasing of goods and services except a law relating
to contracting with historically underutilized businesses.
(d) For a contract entered into by a municipality, river authority, or defense base
development authority under any of the methods provided by this subchapter, the municipality,
river authority, or defense base development authority shall publish notice of the time and place
the bids or proposals, or the responses to a request for qualifications, will be received and
opened. The notice must be published in a newspaper of general circulation in the county in
which the defense base development authority's or municipality's central administrative office is
located or the county in which the greatest amount of the river authority's territory is located
once each week for at least two weeks before the deadline for receiving bids, proposals, or
responses. If there is not a newspaper of general circulation in that county, the notice shall be
published in a newspaper of general circulation in the county nearest the county seat of the
county in which the defense base development authority's or municipality's central administrative
office is located or the county in which the greatest amount of the river authority's territory is
located. In a two-step procurement process, the time and place the second step bids, proposals,
or responses will be received are not required to be published separately.
(e) For a contract entered into by a county under any of the methods provided by this
subchapter, the county shall publish notice of the time and place the bids or proposals, or the
responses to a request for qualifications, will be received and opened. The notice must be
published in a newspaper of general circulation in the county once each week for at least two
weeks before the deadline for receiving bids, proposals, or responses. If there is not a newspaper
of general circulation in the county, the notice shall be:
(1) posted at the courthouse door of the county; and
(2) published in a newspaper of general circulation in the nearest county.
(f) A contract entered into or an arrangement made in violation of this subchapter is
contrary to public policy and is void. A court may enjoin performance of a contract made in
violation of this subchapter. A county attorney, a district attorney, a criminal district attorney, a
resident of a county that enters into a contract under this subchapter or of a county in which a
municipality or a river authority that enters into a contract under this subchapter is located, or
any interested party may bring an action for an injunction. A party who prevails in an action
brought under this subsection is entitled to reasonable attorney's fees as approved by the court.
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001. Amended by Acts 2003,
78th Leg., ch. 877, Sec. 2, eff. Sept. 1, 2003.
Sec. 271.113. PROCUREMENT PROCEDURES. (a) In entering into a contract
for the construction of a facility, a governmental entity may use any of the following methods
that provides the best value for the governmental entity:
(1) competitive bidding;
(2) competitive sealed proposals for construction services;
(3) a design-build contract;
(4) a contract to construct, rehabilitate, alter, or repair facilities that involves
using a construction manager; or
(5) a job order contract for the minor repair, rehabilitation, or alteration of a
facility.
(b) Except as provided by this subchapter, in determining to whom to award a contract,
the governmental entity may consider:
(1) the purchase price;
(2) the reputation of the vendor and of the vendor's goods or services;
(3) the quality of the vendor's goods or services;
(4) the extent to which the goods or services meet the governmental entity's
needs;
(5) the vendor's past relationship with the governmental entity;
(6) the impact on the ability of the governmental entity to comply with rules
relating to historically underutilized businesses;
(7) the total long-term cost to the governmental entity to acquire the vendor's
goods or services; and
(8) any other relevant factor specifically listed in the request for bids or
proposals.
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001.
Sec. 271.114. EVALUATION OF BIDS AND PROPOSALS FOR
CONSTRUCTION SERVICES. (a) The governing body of a governmental entity that is
considering a construction contract using a method specified by Section 271.113(a) other than
competitive bidding must, before advertising, determine which method provides the best value
for the governmental entity. The governing body may, as appropriate, delegate its authority
under this section to a designated representative.
(b) The governmental entity shall base its selection among offerors on criteria
authorized to be used under Section 271.113(b). The governmental entity shall publish in the
request for bids, proposals, or qualifications all the criteria that will be used to evaluate the
offerors and the relative weights given to the criteria.
(c) The governmental entity shall document the basis of its selection and shall make the
evaluations public not later than the seventh day after the date the contract is awarded.
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001.
Sec. 271.115. SELECTING CONTRACTOR FOR CONSTRUCTION SERVICES
THROUGH COMPETITIVE BIDDING. (a) Except to the extent prohibited by other law
and to the extent consistent with this subchapter, a governmental entity may use competitive
bidding to select a contractor to perform construction, rehabilitation, alteration, or repair services
for a facility.
(b) Except as otherwise specifically provided by this subsection, Subchapter B does not
apply to a competitive bidding process under this section. Sections 271.026, 271.027(a), and
271.0275 apply to a competitive bidding process under this section.
(c) A governmental entity shall award a competitively bid contract at the bid amount to
the bidder offering the best value to the governmental entity according to the selection criteria
that were established by the governmental entity. The selection criteria may include the factors
listed in Section 271.113(b).
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001.
Sec. 271.116. SELECTING CONTRACTOR FOR CONSTRUCTION SERVICES
THROUGH COMPETITIVE SEALED PROPOSALS. (a) In selecting a contractor for
construction, rehabilitation, alteration, or repair services for a facility through competitive sealed
proposals, a governmental entity shall follow the procedures prescribed by this section.
(b) The governmental entity shall select or designate an engineer or architect to prepare
construction documents for the project. The selected or designated engineer or architect has full
responsibility for complying with Chapter 1001 or 1051, Occupations Code, as applicable. If the
engineer or architect is not a full-time employee of the governmental entity, the governmental
entity shall select the engineer or architect on the basis of demonstrated competence and
qualifications as provided by Section 2254.004, Government Code.
(c) The governmental entity shall provide or contract for, independently of the
contractor, the inspection services, the testing of construction materials engineering, and the
verification testing services necessary for acceptance of the facility by the governmental entity.
The governmental entity shall select those services for which it contracts in accordance with
Section 2254.004, Government Code, and shall identify them in the request for proposals.
(d) The governmental entity shall prepare a request for competitive sealed proposals
that includes construction documents, selection criteria, estimated budget, project scope,
schedule, and other information that contractors may require to respond to the request. The
governmental entity shall state in the request for proposals the selection criteria that will be used
in selecting the successful offeror.
(e) The governmental entity shall receive, publicly open, and read aloud the names of
the offerors and, if any are required to be stated, all prices stated in each proposal. Not later than
the 45th day after the date of opening the proposals, the governmental entity shall evaluate and
rank each proposal submitted in relation to the published selection criteria.
(f) The governmental entity shall select the offeror that offers the best value for the
governmental entity based on the published selection criteria and on its ranking evaluation. The
governmental entity shall first attempt to negotiate a contract with the selected offeror. The
governmental entity and its engineer or architect may discuss with the selected offeror options
for a scope or time modification and any price change associated with the modification. If the
governmental entity is unable to negotiate a contract with the selected offeror, the governmental
entity shall, formally and in writing, end negotiations with that offeror and proceed to the next
offeror in the order of the selection ranking until a contract is reached or all proposals are
rejected.
(g) In determining best value for the governmental entity, the governmental entity is
not restricted to considering price alone, but may consider any other factor stated in the selection
criteria.
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001. Amended by Acts 2003,
78th Leg., ch. 1276, Sec. 14A.792, eff. Sept. 1, 2003.
Sec. 271.117. CONTRACTS FOR FACILITIES: CONSTRUCTION MANAGER-
AGENT. (a) A governmental entity may use the construction manager-agent method for the
construction, rehabilitation, alteration, or repair of a facility. In using that method and in
entering into a contract for the services of a construction manager-agent, a governmental entity
shall follow the procedures prescribed by this section.
(b) A construction manager-agent is a sole proprietorship, partnership, corporation, or
other legal entity that provides consultation to the governmental entity regarding construction,
rehabilitation, alteration, or repair of the facility. A governmental entity using the construction
manager-agent method may, under the contract between the governmental entity and the
construction manager-agent, require the construction manager-agent to provide administrative
personnel, equipment necessary to perform duties under this section, and on-site management
and other services specified in the contract. A construction manager-agent represents the
governmental entity in a fiduciary capacity.
(c) Before or concurrently with selecting a construction manager-agent, the
governmental entity shall select or designate an engineer or architect who shall prepare the
construction documents for the project and who has full responsibility for complying with
Chapter 1001 or 1051, Occupations Code, as applicable. If the engineer or architect is not a full-
time employee of the governmental entity, the governmental entity shall select the engineer or
architect on the basis of demonstrated competence and qualifications as provided by Section
2254.004, Government Code. The governmental entity's engineer or architect may not serve,
alone or in combination with another person, as the construction manager-agent unless the
engineer or architect is hired to serve as the construction manager-agent under a separate or
concurrent procurement conducted in accordance with this subchapter. This subsection does not
prohibit the governmental entity's engineer or architect from providing customary construction
phase services under the engineer's or architect's original professional service agreement in
accordance with applicable licensing laws.
(d) A governmental entity shall select a construction manager-agent on the basis of
demonstrated competence and qualifications in the same manner as provided for the selection of
engineers or architects under Section 2254.004, Government Code, except that notice must be
published as provided by Section 271.112(d).
(e) A governmental entity using the construction manager-agent method shall procure,
in accordance with applicable law, a general contractor, trade contractors, or subcontractors who
will serve as the prime contractor for their specific portion of the work.
(f) The governmental entity or the construction manager-agent shall procure in
accordance with Section 2254.004, Government Code, all of the testing of construction materials
engineering, the inspection services, and the verification testing services necessary for
acceptance of the facility by the governmental entity.
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001. Amended by Acts 2003,
78th Leg., ch. 1276, Sec. 14A.793, eff. Sept. 1, 2003.
Sec. 271.118. CONTRACTS FOR FACILITIES: CONSTRUCTION MANAGER-
AT-RISK. (a) A governmental entity may use the construction manager-at-risk method for
the construction, rehabilitation, alteration, or repair of a facility. In using that method and in
entering into a contract for the services of a construction manager-at-risk, a governmental entity
shall follow the procedures prescribed by this section.
(b) A construction manager-at-risk is a sole proprietorship, partnership, corporation, or
other legal entity that assumes the risk for construction, rehabilitation, alteration, or repair of a
facility at the contracted price as a general contractor and provides consultation to the
governmental entity regarding construction during and after the design of the facility.
(c) Before or concurrently with selecting a construction manager-at-risk, the
governmental entity shall select or designate an engineer or architect who shall prepare the
construction documents for the project and who has full responsibility for complying with
Chapter 1001 or 1051, Occupations Code, as applicable. If the engineer or architect is not a full-
time employee of the governmental entity, the governmental entity shall select the engineer or
architect on the basis of demonstrated competence and qualifications as provided by Section
2254.004, Government Code. The governmental entity's engineer, architect, or construction
manager-agent for a project may not serve, alone or in combination with another, as the
construction manager-at-risk unless the engineer or architect is hired to serve as the construction
manager-at-risk under a separate or concurrent procurement conducted in accordance with this
subchapter.
(d) The governmental entity shall provide or contract for, independently of the
construction manager-at-risk, the inspection services, the testing of construction materials
engineering, and the verification testing services necessary for acceptance of the facility by the
governmental entity. The governmental entity shall select those services for which it contracts in
accordance with Section 2254.004, Government Code.
(e) The governmental entity shall select the construction manager-at-risk in either a
one-step or two-step process. The governmental entity shall prepare a request for proposals, in
the case of a one-step process, or a request for qualifications, in the case of a two-step process,
that includes general information on the project site, project scope, schedule, selection criteria,
estimated budget, and the time and place for receipt of proposals or qualifications, as applicable,
and other information that may assist the governmental entity in its selection of a construction
manager-at-risk. The governmental entity shall state the selection criteria in the request for
proposals or qualifications, as applicable. The selection criteria may include the offeror's
experience, past performance, safety record, proposed personnel and methodology, and other
appropriate factors that demonstrate the capability of the construction manager-at-risk. If a one-
step process is used, the governmental entity may request, as part of the offeror's proposal,
proposed fees and prices for fulfilling the general conditions. If a two-step process is used, the
governmental entity may not request fees or prices in step one. In step two, the governmental
entity may request that five or fewer offerors, selected solely on the basis of qualifications,
provide additional information, including the construction manager-at-risk's proposed fee and its
price for fulfilling the general conditions.
(f) At each step, the governmental entity shall receive, publicly open, and read aloud
the names of the offerors. At the appropriate step, the governmental entity shall also read aloud
the fees and prices, if any, stated in each proposal as the proposal is opened. Not later than the
45th day after the date of opening the proposals, the governmental entity shall evaluate and rank
each proposal submitted in relation to the criteria set forth in the request for proposals.
(g) The governmental entity shall select the offeror that submits the proposal that offers
the best value for the governmental entity based on the published selection criteria and on its
ranking evaluation. The governmental entity shall first attempt to negotiate a contract with the
selected offeror. If the governmental entity is unable to negotiate a satisfactory contract with the
selected offeror, the governmental entity shall, formally and in writing, end negotiations with
that offeror and proceed to negotiate with the next offeror in the order of the selection ranking
until a contract is reached or negotiations with all ranked offerors end.
(h) A construction manager-at-risk shall publicly advertise, as prescribed for a
governmental entity under Section 271.025, and receive bids or proposals from trade contractors
or subcontractors for the performance of all major elements of the work other than the minor
work that may be included in the general conditions. A construction manager-at-risk may seek
to perform portions of the work itself if the construction manager-at-risk submits its bid or
proposal for those portions of the work in the same manner as all other trade contractors or
subcontractors and if the governmental entity determines that the construction manager-at-risk's
bid or proposal provides the best value for the governmental entity.
(i) The construction manager-at-risk and the governmental entity or its representative
shall review all trade contractor or subcontractor bids or proposals in a manner that does not
disclose the contents of the bid or proposal during the selection process to a person not employed
by the construction manager-at-risk, engineer, architect, or governmental entity. All bids or
proposals shall be made public after the award of the contract or not later than the seventh day
after the date of final selection of bids or proposals, whichever is later.
(j) If the construction manager-at-risk reviews, evaluates, and recommends to the
governmental entity a bid or proposal from a trade contractor or subcontractor but the
governmental entity requires another bid or proposal to be accepted, the governmental entity
shall compensate the construction manager-at-risk by a change in price, time, or guaranteed
maximum cost for any additional cost and risk that the construction manager-at-risk may incur
because of the governmental entity's requirement that another bid or proposal be accepted.
(k) If a selected trade contractor or subcontractor defaults in the performance of its
work or fails to execute a subcontract after being selected in accordance with this section, the
construction manager-at-risk may, without advertising, fulfill the contract requirements itself or
select a replacement trade contractor or subcontractor to fulfill the contract requirements.
(l) If a fixed contract amount or guaranteed maximum price has not been determined at
the time the contract is awarded, the penal sums of the performance and payment bonds
delivered to the governmental entity must each be in an amount equal to the project budget, as
specified in the request for qualifications. The construction manager shall deliver the bonds not
later than the 10th day after the date the construction manager executes the contract unless the
construction manager furnishes a bid bond or other financial security acceptable to the
governmental entity to ensure that the construction manager will furnish the required
performance and payment bonds when a guaranteed maximum price is established.
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001. Amended by Acts 2003,
78th Leg., ch. 1276, Sec. 14A.794, eff. Sept. 1, 2003.
Sec. 271.119. DESIGN-BUILD CONTRACTS FOR FACILITIES. (a) A
governmental entity may use the design-build method for the construction, rehabilitation,
alteration, or repair of a facility. In using that method and in entering into a contract for the
services of a design-build firm, the contracting governmental entity and the design-build firm
shall follow the procedures provided by this section.
(b) The governmental entity shall select or designate an engineer or architect
independent of the design-build firm to act as its representative for the duration of the work on
the facility. If the governmental entity's engineer or architect is not a full-time employee of the
governmental entity, the governmental entity shall select the engineer or architect on the basis of
demonstrated competence and qualifications as provided by Section 2254.004, Government
Code.
(c) The governmental entity shall prepare a request for qualifications that includes
general information on the project site, project scope, budget, special systems, selection criteria,
and other information that may assist potential design-build firms in submitting proposals for the
project. The governmental entity shall also prepare a design criteria package that includes more
detailed information on the project. If the preparation of the design criteria package requires
engineering or architectural services that constitute the practice of engineering within the
meaning of Chapter 1001, Occupations Code, or the practice of architecture within the meaning
of Chapter 1051, Occupations Code, those services shall be provided in accordance with the
applicable law.
(d) The governmental entity shall evaluate statements of qualifications and select a
design-build firm in two phases:
(1) In phase one, the governmental entity shall prepare a request for
qualifications and evaluate each offeror's experience, technical competence, and capability to
perform, the past performance of the offeror's team and members of the team, and other
appropriate factors submitted by the team or firm in response to the request for qualifications,
except that cost-related or price-related evaluation factors are not permitted. Each offeror must
certify to the governmental entity that each engineer or architect that is a member of its team was
selected based on demonstrated competence and qualifications in the manner provided by
Section 2254.004, Government Code. The governmental entity shall qualify a maximum of five
offerors to submit additional information and, if the governmental entity chooses, to interview
for final selection.
(2) In phase two, the governmental entity shall evaluate the information
submitted by the offerors on the basis of the selection criteria stated in the request for
qualifications and the results of an interview. The governmental entity may request additional
information regarding demonstrated competence and qualifications, considerations of the safety
and long-term durability of the project, the feasibility of implementing the project as proposed,
the ability of the offeror to meet schedules, costing methodology, or other factors as appropriate.
The governmental entity may not require offerors to submit detailed engineering or architectural
designs as part of the proposal. The governmental entity shall rank each proposal submitted on
the basis of the criteria set forth in the request for qualifications. The governmental entity shall
select the design-build firm that submits the proposal offering the best value for the
governmental entity on the basis of the published selection criteria and on its ranking
evaluations. The governmental entity shall first attempt to negotiate a contract with the selected
offeror. If the governmental entity is unable to negotiate a satisfactory contract with the selected
offeror, the governmental entity shall, formally and in writing, end negotiations with that offeror
and proceed to negotiate with the next offeror in the order of the selection ranking until a
contract is reached or negotiations with all ranked offerors end.
(e) Following selection of a design-build firm under Subsection (d), that firm's
engineers or architects shall complete the design, submitting all design elements for review and
determination of scope compliance to the governmental entity or the governmental entity's
engineer or architect before or concurrently with construction.
(f) An engineer shall have responsibility for compliance with the engineering design
requirements and all other applicable requirements of Chapter 1001, Occupations Code. An
architect shall have responsibility for compliance with the requirements of Chapter 1051,
Occupations Code.
(g) The governmental entity shall provide or contract for, independently of the design-
build firm, the inspection services, the testing of construction materials engineering, and the
verification testing services necessary for acceptance of the facility by the governmental entity.
The governmental entity shall select those services for which it contracts in accordance with
Section 2254.004, Government Code.
(h) The design-build firm shall supply a signed and sealed set of construction
documents for the project to the governmental entity at the conclusion of construction.
(i) A payment or performance bond is not required for, and may not provide coverage
for, the portion of a design-build contract under this section that includes design services only. If
a fixed contract amount or guaranteed maximum price has not been determined at the time a
design-build contract is awarded, the penal sums of the performance and payment bonds
delivered to the governmental entity must each be in an amount equal to the project budget, as
specified in the design criteria package. The design-build firm shall deliver the bonds not later
than the 10th day after the date the design-build firm executes the contract unless the design-
build firm furnishes a bid bond or other financial security acceptable to the governmental entity
to ensure that the design-build firm will furnish the required performance and payment bonds
when a guaranteed maximum price is established.
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001. Amended by Acts 2003,
78th Leg., ch. 1276, Sec. 14A.795, eff. Sept. 1, 2003.
Sec. 271.120. JOB ORDER CONTRACTS FOR FACILITIES CONSTRUCTION OR
REPAIR. (a) A governmental entity may award job order contracts for the minor
construction, repair, rehabilitation, or alteration of a facility if the work is of a recurring nature
but the delivery times are indefinite and indefinite quantities and orders are awarded
substantially on the basis of predescribed and prepriced tasks.
(b) The governmental entity may establish contractual unit prices for a job order
contract by:
(1) specifying one or more published construction unit price books and the
applicable divisions or line items; or
(2) providing a list of work items and requiring the offerors to bid or propose
one or more coefficients or multipliers to be applied to the price book or work items as the price
proposal.
(c) The governmental entity shall advertise for, receive, and publicly open sealed
proposals for job order contracts.
(d) The governmental entity may require offerors to submit additional information
besides rates, including experience, past performance, and proposed personnel and methodology.
(e) The governmental entity may award job order contracts to one or more job order
contractors in connection with each solicitation of bids or proposals.
(f) An order for a job or project under the job order contract must be signed by the
governmental entity's representative and the contractor. The order may be a fixed price, lump-
sum contract based substantially on contractual unit pricing applied to estimated quantities or
may be a unit price order based on the quantities and line times delivered.
(g) The contractor shall provide payment and performance bonds, if required by law,
based on the amount or estimated amount of any order.
(h) The base term of a job order contract is for the period and with any renewal options
that the governmental entity sets forth in the request for proposals. If the governmental entity
fails to advertise that term, the base term may not exceed two years and is not renewable without
further advertisement and solicitation of proposals.
(i) If a job order contract or an order issued under the contract requires engineering or
architectural services that constitute the practice of engineering within the meaning of Chapter
1001, Occupations Code, or the practice of architecture within the meaning of Chapter 1051,
Occupations Code, those services shall be provided in accordance with applicable law.
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001. Amended by Acts 2003,
78th Leg., ch. 1276, Sec. 14A.796, eff. Sept. 1, 2003.
Sec. 271.121. RIGHT TO WORK. (a) This section applies to a governmental
entity while the governmental entity is engaged in:
(1) procuring goods or services;
(2) awarding a contract; or
(3) overseeing procurement or construction for a public work or public
improvement.
(b) Notwithstanding any other provision of this chapter, a governmental entity:
(1) may not consider whether a vendor is a member of or has another
relationship with any organization; and
(2) shall ensure that its bid specifications and any subsequent contract or other
agreement do not deny or diminish the right of a person to work because of the person's
membership or other relationship status with respect to any organization.
Added by Acts 2001, 77th Leg., ch. 1409, Sec. 5, eff. Sept. 1, 2001.
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 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.
Sec. 271.904. INDEMNIFICATION. (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 that is caused by or
results from the negligence of the governmental agency or its agent or employee.
(b) 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.
Sec. 271.905. CONSIDERATION OF LOCATION OF BIDDER'S PRINCIPAL
PLACE OF BUSINESS. (a) In this section, "local government" means a municipality with a
population of 200,000 or less, a county with a population of 400,000 or less, 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.
(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.
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 non
attainment 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.
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.
TOWN OF TROPHY CLUB
PROCUREMENT POLICIES AND PROCEDURES
TABLE OF CONTENTS
POLICIES 1
PURPOSE 1
POLICY 1
FREE AND OPEN COMPETITION 2
COMPLIANCE 2
CODE OF ETHICS 2
CONFLICT OF INTEREST 3
CONTRACTS 3
DECLARATION OF CONFLICT OF INTEREST 3
VIOLATIONS AND REMEDIES 4
SUBSTANTIAL INTEREST 4
LEGAL CONSIDERATIONS 4
PROCUREMENTS EXEMPT FROM STATE LAW COMPETITIVE BID REQUIREMENTS .............................................. 4
CONFLICT OF INTEREST 6
PUBLIC ACCESS TO PROCUREMENT INFORMATION 6
CONFIDENTIALITY OF BIDDERS QUOTATIONS 6
METHODS OF PROCUREMENT 6
GENERAL 6
PETTY CASH PURCHASES – COST UP TO $100 7
CREDIT CARD PURCHASES – PERSONAL TRAVEL EXPENSES.............................................................................. 7
PROCUREMENT CARD PURCHASES 8
PURCHASES OVER $3,000 BUT LESS THAN $25,000 9
COMPETITIVE SEALED BIDS – COST OVER $25,000 9
PROFESSIONAL CONSULTING SERVICES CONTRACTS – RFQ/RFP ....................................................................... 10
ANNUAL CONTRACTS 11
SOLE SOURCE PURCHASES 11
STATE CONTRACTING PURCHASING 11
ALTERNATIVE PROJECT DELIVERY METHODS FOR CERTAIN PROJECTS ............................................................. 11
THE REQUISITION PROCESS 12
PROCEDURE FOR NON-EMERGENCY PURCHASES 12
PROCEDURE FOR EMERGENCY PURCHASES 13
PURCHASING PROCESSES 13
POLICY 13
REQUESTS FOR BIDS (RFB) OR REQUESTS FOR PROPOSALS (RFP).................................................................... 14
BID PACKET 14
COMPETITIVE PROPOSALS 16
CANCELLATION OF A RFB/RFB 16
MODIFICATION OF A RFB/RFP 16
RECEIVING THE BID OR PROPOSAL – PROCEDURAL REQUIREMENTS ................................................................. 16
DISQUALIFIED BIDS 17
CORRECTION OR WITHDRAWAL OF A BID 18
EVALUATING COMPETITIVE BIDS 18
GENERAL 18
TABULATING THE RESULTS 18
BASIS FOR PURCHASE DECISION 18
AWARDING THE BID 19
POLICY 19
DISQUALIFICATION OF A BIDDER 19
PROTESTING A BID 19
PROCUREMENT SPECIFICATIONS 20
MODIFICATION AND TERMINATION OF CONTRACTS................................................................... 20
POLICY 20
REQUIREMENT TO RE-BID 21
DELIVERY OF GOODS 21
DISPOSAL OF SURPLUS PROPERTY 21
SECTION 1.0: POLICIES
1.01 Purpose
The purpose of the Town’s Procurement Policy is to provide the parameters for the
expenditure of funds in the procurement of goods and services for the Town of Trophy
Club. The policies and procedures outlined herein are intended to comply with the Town
of Trophy Club’s Mission and legally mandated federal and state statutes.
1.02 Policy
Regardless of the value of the expenditure it is the policy of the Town of Trophy Club to
promote competition that produces the highest quality goods and services at the lowest
possible price whether or not the item is subject to bid. The Town Manager in
coordination with the Town Council is charged with establishing the policies for the
procurement of all goods and services.
The Finance Department:
• Develops purchasing objectives, programs, and procedures for the acquisition of
materials, equipment, supplies, and services;
• Helps department managers provide open and fair competition to vendors; and
• Helps departments prepare and obtain approval of purchase orders, price
agreements, and contracts;
The City Secretary’s Office/Department Managers or designee:
• Receives, and monitors formal bids for purchases.
The Department Managers:
• Develops and maintains technical and non-technical commodity specifications;
• Ensures funding is available for procurement in department budgets.
• Provides open and fair competition to vendors;
• Prepares requisitions;
• Obtains approval of purchase orders, price agreements, and contracts;
• Prepares requests for proposals (RFPs) , requests for qualifications (RFQs) and
requests for bids (RFBs); and
• Monitors and evaluates the performance of vendors including but not limited to,
compliance with contract specifications.
1.03 Free and Open Competition
All procurement transactions, regardless of dollar value, whether advertised or
negotiated, shall be conducted in a manner so as to provide maximum free and open
competition. The Town Manager or Town Council should be alert to organizational
conflicts of interest or noncompetitive practices among contractors that may restrict or
eliminate competition or otherwise restrain trade. In order to ensure objective contractor
performance and eliminate unfair competitive advantage, contractors who develop or
draft specifications and other requirements for solicitation instruments (Requests for Bids
or Proposals) should be excluded from competing for such procurement.
1.04 Compliance
In order to have an efficient purchasing function, all departments must work in close
cooperation with the Finance Department. Departments can ensure compliance with the
Town’s policies and procedures by:
• Informing departmental personnel of the purchasing requirements and ensuring
adherence;
• Planning purchases in advance in order to allow sufficient time to advertise, when
necessary, obtain proposals, quotations, or bids, determine best source, and issue
purchase orders with reasonable lead-time for delivery and thus prevent emergencies;
• Providing accurate and concise specifications for items requested and timely
preparing requisitions;
• Inspecting or supervising the inspection of commodities, services and equipment
delivered; and determining acceptability of their quality, quantity, and conformity
with specifications; and
• Providing complete written documentation of a vendor's performance to be used in
future bid award evaluations.
SECTION 2.0: CODE OF ETHICS
Officers and employees of The Town of Trophy Club are public servants, who will carry
out their activities in a fair and legal manner avoiding actual or perceived conflicts of
interest. All officers and staff members are expected to conduct the activities of the
Town in full compliance with the law and in an honest, fair, and courteous manner.
Officers and staff members must neither ask nor expect contractors, vendors or others
with whom the Town does business to favor the Town, the officer or the individual staff
member with special treatment.
Officers and staff members should not permit personal preferences and dislikes to affect
decisions related to their duties. To do so acts against the Town’s policy which is to treat
all individuals, members, potential members, contractors, and others fairly and equitably.
This does not preclude officers and staff from basing current purchasing decisions on past
experience with specific vendors.
SECTION 3.0: CONFLICT OF INTEREST
3.01 Contracts
Specifically, with reference to contracts, no employee or officer of the Town who
exercises any functions or responsibilities in the review or approval of an undertaking or
the carrying out of one of Town’s contracts shall participate in any decision relating to
that contract if the decision affects his or her personal financial interest, such officer or
employee has a substantial interest as defined by state law, or participation by such
officer or employee is otherwise prohibited by state law or Town policy.
If a former staff member or Town officer has worked less than one year for a business
seeking to contract with the Town, the business entity must make this known and must
describe the relationship between the former employee/officer and the firm. In no
instance may this former employee/officer have hours billed on any project or program.
To do so is reason for not awarding a contract.
3.02 Declaration of Conflict of Interest
In the event of a conflict of interest as defined by state law, the affected officer or
employee must file a signed affidavit declaring his or her conflict of interest. The
affidavit must be filed with the Town Secretary. Such official, officer or employee must
abstain from discussion of or voting on a bid, proposal or contract submitted by a
business entity in which he/she has a substantial interest. More specifically, in addition to
the requirement to complete an affidavit, when an item is placed before a Board,
Commission, Committee, or Town Council for review, any and all members of those
bodies who has a conflict of interest shall announce that he/she has such conflict and
shall leave the room until the body has discussed and taken action on the item for which
the member has a conflict.
Moreover, it is the policy of the Town that an employee who has a substantial interest in
a business entity as defined by state law, shall follow the procedure outlined in this
section by completing an affidavit and leaving the room where a discussion and/or vote is
taking place regarding the business entity in which the employee has an interest. Further
it is the obligation of officials, officers and employees to avoid apparent conflicts of
interest by abstaining and following the procedures specified in this section.
Officials, officers and employees shall abstain from participating in the procurement
process, which includes but is not limited to discussions, lobbying, rating, scoring,
recommending, providing current copies of contracts outside of Public Information Act
process, explaining or assisting in the design or approval of the procurement process on
contract with the organization he or she represents or from which he or she receives a
direct financial benefit; or on contracts with organizations in which a family member will
realize a direct benefit.
3.03 Violations and Remedies
Violations of the provisions of this Article constitute misconduct, subjecting the violator
to any and all penalties prescribed by law. Penalties, sanctions or other disciplinary
actions, to the extent permitted by state or local law, rules or regulations, shall be
imposed for violations of the code of conduct/conflict of interest standards, by the
Town’s officers, employees or agents or by persons, contractors or their agents, when the
procurement involves state or federal programs and/or funds.
Appropriate sanctions, penalties or disciplinary actions shall be applied for violation(s) of
these policies and/or state law. Violations of state or federal law shall be referred to the
proper authority having jurisdiction over it.
3.04.1 Substantial Interest. A person has a substantial interest in a business entity if: (1) the
person owns 10 percent or more of the voting stock or shares of the business entity or
owns either 10 percent or more or $15,000 or more of the fair market value of the
business entity; or (2) funds received by the person from the business entity exceed 10
percent of the person’s gross income for the previous year. Additionally, a local public
official is considered to have a substantial interest if a person related to the official in the
first degree by blood or marriage, as defined by Chapter 573 of the Texas Government
Code, has a substantial interest as defined herein.
SECTION 4.0: LEGAL CONSIDERATIONS
4.01 Procurements Exempt from State Law Competitive Bid Requirements
Purchases made by the Town shall be in accordance with State law. Written,
competitive bids must be taken for all procurements over $25,000 except exempted
procurements as mandated by State law. Exempt procurements include:
• Those made in case of public calamity, where it is necessary to act immediately to
appropriate money to relieve the necessity of the Town’s residents or to protect or to
preserve Town property;
• Those made necessary by unforeseen damage to Town property, machinery or
equipment;
• A procurement necessary to preserve to protect the public health or safety of the
Town’s residents;
• Those for personal, professional, or planning service;
• Those for work performed and paid for by the day as work progresses;
• A purchase of land or right-of-way;
• Items that area available from only one source;
• A purchase of rare books, appears, and other library materials for a public library;
• Paving, drainage, street widening, and other public improvements, or related matters,
if at lease one-third of the cost is to be paid by or through special assessments levied
on property that will benefit from the improvements;
• 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;
• A payment under a contract by which a developer participates in the construction of a
public improvement as provided by Chapter 212 of the Texas Local Government
Code;
• Personal property sold:
o At an auction by a state licensed auctioneer;
o At a going out of business sale held in compliance with Chapter 17, Texas
Business and Commerce Code;
o By a political subdivision of the state of Texas, a state agency of the State of
Texas, or an entity of the federal government; or
o Under an inter-local contract for cooperative purchasing administered by a
regional planning commission established under Chapter 391 of the Texas
Local Government Code;
• Services performed by blind or severely disabled persons;
• Goods purchased by a municipality for subsequent retail by the municipality; or
• Electricity
• Purchases made pursuant to an approved cooperative purchasing program or those
from an approved state program.
Contracts are awarded in a manner consistent with the provisions of Town policy
statements and state law.
4.02 Conflict of Interest
An employee of the Town may not solicit bid quotations from relatives of the employee
or relatives of another Town employee on products to be purchased by The Town.
4.03 Public Access to Procurement Information
Procurement information shall be a public record to the extent provided by the Texas
Open Records Act and the Freedom of Information Act and shall be available to the
public as provided therein. If a proposal contains information that the bidder considers
proprietary and does not want disclosed to the public or used for any purpose other than
the evaluation of the offer, all such information must be clearly marked as proprietary
and confidential by making such notation on each page or portion thereof containing
propriety and confidential information. The Town reserves the right to duplicate, use or
disclose the information as needed to prepare contract documents and working
documents for the project and is not liable for accidental disclosure of such information.
4.04 Confidentiality of Bidders Quotations
A vendor’s bid/proposal is confidential until opened. Therefore, no bid or proposal shall
be opened before the date and time of the published opening of such bid/proposal.
Opening bids/proposals prior to the publication date and time is a violation of state law
and Town policy.
SECTION 5.0: METHODS OF PROCUREMENT
5.01 General
The Town has four methods for procuring goods and services each of which is
determined by the total estimated cost of the purchase. However, regardless of the cost
of the purchase, the objective is to secure the highest quality goods and services at the
lowest possible price. No purchase may be split to circumvent the dollar amount
requirements. With the exception of Petty Cash and procurement card purchases, the
procurement process begins with the preparation and approval of a Purchase Order (see
Section 6.0). All purchases except those made through Petty Cash, Procurement Card, or
those listed under the exemptions in Section 6.1 must be made through an approved
Purchase Order or Contract. Purchase Orders will not be issued “after-the-fact”.
5.02 Petty Cash Purchases - Cost up to $100
All Town departments and employees have access to the use of petty cash funds for
individual item purchases with dollar values not in excess of $100. The petty cash fund
is to be used for small purchases that the employee can pick up at a local facility if a
purchasing card is not accepted or if the employee has not been given a purchase card.
Town employees are not to misuse petty cash funds by splitting a purchase into more
than one transaction in order not to exceed the $100 limit. A petty cash slip must be
completed and signed by the requesting employee and authorized by the employee’s
manager. Receipts for each transaction must accompany the petty cash slip. Neither a
purchase requisition nor competitive bids are required when using petty cash.
5.03 Credit Card Purchases – Personal Travel Expenses
• If the training or seminar was not approved through the budget
process, written permission must be obtained from the Department
Manager or Town Manager prior to travel. There must be money in
the budget to cover the travel unless the Town Manager or designee
makes the exception.
• Transportation – Attach a copy of the airline ticket showing flight times to the
appropriate purchasing card transaction sheet received from the Procurement
Card Administrator. If the mileage to drive your personal car is more than the
cost of the airline ticket plus ground transportation (i.e. taxi or shuttle service)
plus airport parking costs, the employee reimburses the difference. Attach a
copy of taxi or shuttle service receipts if applicable to the purchasing card
transaction sheet if they take a purchasing card. If you drive your personal car
and claim mileage, you cannot charge your gasoline on your purchasing card.
If you drive a Town of Trophy Club vehicle or if you receive a car allowance,
you can charge your gasoline for out-of-town trips.
• Lodging – A copy of the invoice showing all expenses should be attached to
the purchasing card transaction sheet received from the Procurement Card
Administrator. In-room movies or pay television, phone calls, golf, sporting
events, dry cleaning or laundry, and valet parking are not reimbursable
expenses. For Texas destinations, you need to present a copy of the Texas
Sales and Use Tax Exemption Certification. State taxes should not be paid but
city taxes may or may not be exempt depending on local resolutions.
• Meals – receipts should be attached to the purchasing card transaction sheet
received from the Procurement Card Administrator. You actually need two
receipts. One would include the breakdown of items bought. The other would
be the receipt that shows the actual amount charged that includes a reasonable
tip of not more than 15%. No alcoholic beverages may be charged. The total
for the day depends on the time you leave and the time you come back.
Generally, you must be traveling by 7:00 a.m. to receive breakfast and stay
after 7:00 p.m. to receive the evening meal. The most per day is $30 if you are
traveling or at a conference the full day. If there is a partial day of travel, you
will need to keep the daily total to $10 per meal. If your conference includes a
meal, you should consider the meal to be $10 of your daily amount.
• Registration – if you do an on-line registration, be sure to screen print details
that show how much the conference costs, dates of the conference, and name
of the conference. If you fax the registration information, keep a copy of the
same details. Attach the copy to the purchasing card transaction sheet.
• Any unauthorized expenses are the responsibility of the cardholder and must
be reimbursed to the Town of Trophy Club.
• The Town Manager or her designee must approve any exceptions to the
above.
• The Town Manager may modify the above procedures and polices as
determined necessary.
5.04 Procurement Card Purchases
The intent of the procurement card is to provide a controlled, but less labor-intensive
alternative to the existing procedures for purchasing and paying for items up to the pre-
determined credit limits. The Department Managers shall determine employees within
each Department who are to be issued a procurement card and the transaction value
limit to be assigned to each individual’s card. Cards are issued in the name of the
designated Town employee and the Town of Trophy Club. The card remains the
property of the Town of Trophy Club. Each potential cardholder will attend a training
session and sign a procurement card policy that documents the cardholder’s
responsibilities prior to being issued a card.
The Procurement Card is to be used to make purchases for operations included in the
Town’s approved budget. Violations of these requirements may result in revocation of
use privileges and/or disciplinary action, up to and including termination of employment.
Employees who have inappropriately used the Procurement Card will be required to
reimburse the Town for all costs associated with the improper use.
Each employee who has been issued a card will ensure that a receipt that indicates the
place, date and nature of the purchase is obtained each time the card is used. The
receipts will be attached to the purchasing card transaction sheet, which will be signed,
dated, and turned in to each applicable Department Manager who will review each
purchase for appropriateness. The Department Manager will sign the purchasing card
transaction sheet and forward to the Procurement Card Administrator within the
specified time limit of no more than three days. The Procurement Card Administrator will
reconcile the individual Department packets with the monthly statement received from
the issuing Bank. Should any charges not be supported by receipts, the Procurement
Card Administrator will notify the applicable Department Manager who shall obtain a
receipt or other proper documentation evidencing the nature and amount of the
purchase.
If a purchase order is issued, attach the original purchase order with the appropriate
signatures to the purchasing card transaction sheet so that Finance can close the
purchase order for financial reporting.
The Procurement Card Administrator is responsible for compliance with the issuing
bank’s Procurement Card guidelines and notifying the Finance Director of any
problems.
5.05 Purchases over $3,000 but less than $25,000.
If the cost of the item(s) exceed $3,000 but is less than $25,000, departments are required
to secure at least three (3) documented quotes on the item(s). In keeping with State Law, at least
two (2) of the quotes must be from Historically Underutilized Business (HUBs) located in
Denton County. If a purchase falls within the foregoing cost parameters and if a firm classified
as a HUB handles that type of product, such HUB must be contacted on a rotating basis, but a
department must attempt to contact at least two HUB's on each order.
Once all bids have been received and evaluated, the Department Manager or his or her
designee will place the purchase to the lowest responsible bidder. In the event that a
Department Manager or his or her designee desires to award a bid to a bidder other than
the low bidder, such employee provide a detailed explanation in writing specifying why
the lowest bidder was not accepted. Such written explanation shall be attached to the bid
sheet.
5.06 Competitive Sealed Bids - Cost over $25,000
The Town Council must approve all non-budgeted or unanticipated purchases with values
in excess of $25,000 prior to the purchase. Once a resolution has been passed or
approval has been granted, the purchase must be made through the use of competitive
sealed bids (see Section 7.0) or some other purchasing method as authorized by this
policy. Invitations for sealed bids shall include specific instructions to the vendors
concerning bid submission requirements including the time, date and place for receipt of
bids by the Town.
Competitive sealed bids are to be advertised in local newspapers of general
circulation under the legal notices section. The bid must be advertised at least
14 days prior to the date of the bid opening. The advertisement is to give
adequate instruction as to the nature of the bid, date and time of bid opening,
and bidders conference, if applicable.
Exceptions to Competitive Sealed Bidding
Competitive sealed bidding is not necessary if one of the exceptions in Section 4.0 of
these policies is applicable.
5.07 Professional Consulting Services Contracts –RFQ/RFP
Process.
a. RFQ/RFP Process. Professional consulting services means those within the scope of
the practices of accounting, architecture, land surveying, professional engineering, and
other areas as defined by the laws of the State of Texas. Such services to the Town are to
be provided pursuant to a third party independent contractor agreement for a specified
time period. Competitive bidding shall not be used to select the professionals/consultants
contracted by the Town. Compensation will be negotiated before the contract is signed
and after the consultant has been selected on the basis of his or her demonstrated
competence and qualifications to perform the services for a fair and reasonable price.
When professional consulting services are needed, the Department requesting the
services will prepare a Request for Qualifications setting forth a description of the scope
of services needed, the minimum desired qualifications, credentials and experience, and
the relative importance of each, and will forward that information to the Town Manager.
The RFQ shall be advertised and may also be sent out to qualified vendors whom Town
staff recommends. The Town Manager will assemble a team (Selection Team) of
appropriate staff that will evaluate the responses submitted by those firms whose
qualifications meet the requirements set forth in the Request for Qualifications. Requests
for Proposals shall be solicited and processed in accordance with the requirements set
forth in Section 5.07(b) hereof.
b. RFP Process. A Request for Proposal (RFP) will be sent to each consultant identified
by the Selection Team in accordance with the RFQ process set forth in Section 5.07(a)
above. However, if the two-step RFQ/RFP Process is not utilized and the single step
RFP process is utilized, then the RFP must be advertised and must require that proposals
contain information identifying qualifications, credentials, and experience of those
vendors submitting a response. The RFP shall also list the services desired and a
deadline for return of the RFP. The request shall require the responding
professionals/consultants to provide a schedule for completion of the scope of services,
where applicable. Copies of the proposal(s) shall be submitted to the Town Secretary
who shall process the responses in accordance with Section 7.0 and who will forward to
the members of the Selection Team. Interviews shall be scheduled with the highest
ranked firms. The Selection Team will ask each finalist to make a presentation of
experience and then may question the firms as to capability and methods of approach for
furnishing the required services. Professional compensation is not considered in these
discussions.
The qualified firm(s) shall be ranked from most qualified to least qualified. The
Selection Team shall begin negotiations with the most qualified to develop a contract.
The Town contract shall include all relevant terms and conditions, including but not
limited to, compensation, time required and full scope of work to be performed. If an
agreement satisfactory to both the Town and a firm cannot be reached, negotiations will
be terminated with that firm and the process started over with the second choice
candidate and so on. As soon as an agreement is reached, the Selection Team shall make
its recommendation to the Town Council.
c. Frequency. The RFQ/RFP process for professional services may be utilized bi-
annually.
5.08 Annual Contracts
For goods or services that are used repetitively throughout the Town such as office
supplies, paper goods, mailing services, or stationery, the Town may enter into an annual
contract with a supplier. The purpose of entering into an annual contract is to eliminate
the need to obtain competitive pricing each time repetitively used items are requested.
The Town will obtain competitive sealed bids requiring that bid prices remain in effect
for a specified period. The Town will enter into agreement, upon approval of the Town
Council (if the contract price exceeds $25,000), with the approved bidder by signing a
contract stating the terms and conditions. Once the contract period nears the end of the
term, the Finance Department will re-advertise the bid request for the following year
giving fair opportunity for vendors to respond.
5.09 Sole Source Purchases
When a department identifies a potential sole source purchase, a detailed justification
explaining why a sole source purchase is necessary must be provided to the Finance
Director in advance for review and concurrence.
5.10 State Contract Purchasing
The Town has the option of purchasing items on contract through the Houston-Galveston
Area Council Cooperative Purchasing program and the State of Texas central purchasing
agency. Participation in these programs is strictly voluntary and the Town is not
obligated to purchase through either. According to Section 271.081 - 271.083 of the
Texas Local Government Code, The Town is not required to obtain competitive bids for
items that are on state or local government contract. Because the State of Texas central
purchasing agency purchases in large quantities through a state cooperative purchasing
program, prices are generally lower than retail. One must keep in mind when purchasing
items under state contract that there are no alterations or modifications to the
specifications that are listed with the cooperative purchasing programs.
5.11 Alternative Project Delivery Methods for Certain Projects. Alternative project
delivery methods, include but are not limited to, construction manager at risk,
construction manager agent and design build contracts. Any of the alternative project
delivery methods specified in Subchapter H of Chapter 271 of the Texas Local
Government Code, as amended, may be utilized provided that the purchase and the
procedures utilized in making that purchase comply with all requirements specified
therein.
SECTION 6.0: THE REQUISITION PROCESS
6.01 Procedure for Non-Emergency Purchases
When the need for goods/services with an estimated value in excess of $10,000 arises, the
user Department shall originate an on-line purchase order. The purchase order must be
prepared far enough in advance of the date that the goods or services are needed to allow
all procurement procedures to properly function, including:
• Securing appropriate approval of the purchase
• Advertising for bids, if necessary
• Obtaining bids or price quotations
• Evaluating bids
• Preparing the contract
• Allowing delivery of goods or services in a timely manner
Each Department is responsible for ensuring that duplicate purchases are not made.
Once a purchase order is received, the Department Manager must:
• Check the purchase order for completeness, including quantity and concise
specifications;
• If specified as a sole source, ensure the reason for the sole source is documented and
appropriate;
• Verify the budget authority. Check budget line item authority and budget balance for
sufficient unencumbered amount to cover the purchase.
Once the vendor selection process has been completed, the Department Manager will
bring the requisition to Finance who will prepare the purchase order. The Department
Manager will then secure the appropriate approval of the purchase order or contract. The
Town is not liable for making payment to vendors for purchases that have not had
prior approval of the Department Manager and have not been issued a purchase
order number. The Department needs to attach the approved Purchase Order to the
invoice received and forward to Finance for payment.
6.02 Procedure for Emergency Purchases
The designation of emergency purchase indicates a situation of such urgency that normal
purchasing procedures must be modified in the interest of time, and therefore no
competitive bids are required. The Town is allowed to make emergency or exempted
purchases without competitive bidding as defined in Texas statutes.
All emergency purchases are processed as follows:
• The applicable Department Manager will be notified immediately with as much
information as possible about the emergency purchase required.
• The Department Manager contacts as many vendors as necessary to arrange the
emergency purchase. The purchase is completed by telephone by issuing a verbal
purchase order number to the vendor and requesting expedited delivery. The purchase
order is either mailed or faxed to the vendor at a later date.
• Staff making the request may be required to pick-up the emergency purchase from the
vendor, if applicable, if expedited delivery from the vendor is not available.
• Council approval or ratification must be obtained for all such emergency purchases
exceeding $25,000.00.
SECTION 7.0: PURCHASING PROCESSES
7.01 Policy
Competitive written or telephone bids are to be sought for all purchases over $3,000 (see
Section 5.05). All practical means to obtain the best price available should also be used
when making emergency purchases.
Competitive sealed bids are required for those bids exceeding $25,000 (see Section 5.06).
The bid consists of the items offered by the vendor in response to the specifications,
along with details governing the offer. The Town bidding procedures contain the
following general requirements:
• A short summary of the Request For Bid (RFB) or Request for Proposal (RFP) shall
be published in local newspapers of general. The advertisement is to be published
under the Legal Notices section of the newspaper. This should be coordinated
through the City Secretary’s Office.
• Bids are received until the date and hour set out in the specifications. The Town
Secretary or her designee will mark bids with the date and time at which they are
received. Once a bid is submitted, the bidder cannot alter or correct a bid. A vendor
who wishes to withdraw a previously submitted bid and/or submit an alternate bid
may only do so prior to the bid opening. Under no circumstances will bids be
accepted after the specified date and time.
• The bids are to be opened at the date and hour specified in the bid and notice
documents, and submitted to the requesting department for review. Generally, the
lowest and best responsible bid is accepted. Occasionally, a bid may be split between
vendors to obtain optimum pricing. If no bid is found to be acceptable, the entire
bidding process must be repeated. Sealed bids are opened publicly in the presence
of at least three (3) Town employees. The Town Secretary or her designee will
coordinate the opening of the bids.
• Bids are to be kept confidential from competitors until after the bid has been opened.
Once the bid is opened, the bid becomes open record in accordance with the Texas
Open Records Act.
• Sealed bids must be submitted to the Town of Trophy Club by mail or hand
delivered to Town offices. Envelopes must be clearly marked that a sealed bid is
enclosed. Faxed or late bids will not be considered for award. They should be
addressed to the Town Secretary.
• The Town of Trophy Club reserves the right to reject any and all bids submitted and
to waive any and all irregularities.
It is the consistent policy of the Town to use competitive principles in awarding all
public contracts of any amount with only limited exceptions as allowed by law. This
includes the purchase and lease of goods, the purchase of services, and construction
projects. These competitive principles apply to all departments of the Town of Trophy
Club.
7.02 Requests for Bids (RFB) or Requests for Proposals (RFP)
RFBs and RFPs are used to notify vendors that the Town has specific requirements for
goods and/or services and that vendors are being offered an opportunity to fulfill those
requirements.
The bid system is to be kept simple and practical, and the bids must be advertised as
widely as possible in order for competition to work. Complicated bid invitations or
requests for proposals discourage competition and drive up prices.
7.03 Bid Packet
A bid packet contains documents needed by the vendor to respond to the requirements of
the RFB/RFP. It may include several elements:
Request for Bid (RFB) or Request for Proposal (RFP): This is the cover form for the
bid/proposal package. It provides specific information that the bidder will need to
respond. As applicable, it should include:
• Quantity and brief description of goods or services to be provided
• Request for unit cost, extended cost, and total cost of items bid
• Estimated delivery time if vendor is awarded the bid
• Closing date and time for receiving bids or proposals.
• Place where bids or proposals are to be sent, including the address and office
• Person to contact for additional information
• Instructions to bidders (see example in Appendix F)
• For RFPs only: Factors to be used in the evaluation process, the weights attached to
each factor. Evaluation factors may include price, experience of vendor’s staff,
ability to respond in a timely way, past recommendations, safety record in accordance
with a duly adopted Town vendor safety record policy, and financial soundness, as
well as any others considered necessary. Other evaluation factors will depend on the
individual requirements attached with the procurement.
Standard Terms and Conditions: All conditions of doing business with the Town will
remain constant for all contracts and purchases, unless specifically deleted. They are
usually presented as an attachment to the RFP.
Special Provisions: Terms and conditions required for a particular contract or purchase.
Specification: The description of the purchase requirements. In place of enclosing the
actual specification, information about where the specification may be obtained may be
substituted.
Pricing: The offer and acceptance page. The vendor quotes prices in accordance with
the specification requirements. Prices are usually provided by unit and include the total
cost for the estimated amount required.
A list of attendees and minutes of the bidders conference by the City Secretary or her
staff must be kept as part of the procurement file.
7.04Competitive Proposals
Competitive proposals can only be used for procurements of high-technology products or
services as allowed by law. The specification shall be written using performance
standards rather than the description of the good or service. The specification must also
specify the relative importance of price and other evaluation factors by identifying the
weight to be given to each factor.
• Vendors submit a proposal for a system to satisfy the requirements set forth in the
proposal. Proposals may incorporate various types of hardware or services to
accomplish the performance objectives set forth in the specifications.
• After proposals are received, the Town may enter into discussions with offerors who
submit proposals and who are determined to be reasonably qualified for the award of
the contract based upon proposal specifications. Offerors shall be treated fairly and
equally with respect to any opportunity for discussion and revision of proposals.
Revisions may be permitted during the discussion process after submissions and
before the award of the contract in order to obtain the best final offers.
• The contract must be awarded to the responsible offeror whose proposal is
determined to be the most advantageous to the Town considering the relative
importance of price and the other evaluation factors included in the request for
proposal.
7.05 Cancellation of a RFB/RFP
RFBs and RFPs may be canceled by the Town at any time before the date set for opening
bids. A cancellation notice should be mailed or faxed to all vendors receiving bid or
proposal invitations.
7.06 Modification of a RFB/RFP
RFBs and RFPs submitted to vendors may also be modified by the Town after being
issued but before the final date for submission. When modifications are required, addenda
shall be mailed and/or faxed to all vendors receiving bid or proposal packets. The
modification notification should state whether the bid opening date is or is not extended.
The bid opening date may be extended if notification of the amendment will not give
vendors ample time to respond to the modified request.
7.07 Receiving the Bid or Proposal – Procedural Requirements
Receiving competitive bids and proposals must be done properly in order to ensure that
no possibility of favoritism or even the appearance of favoritism exists.
Notice of the time and place at which the bids/proposals will be publicly opened must be
published at least once a week for two consecutive weeks. The date of the first
publication must be at least fifteen (15) days before the date of public opening.
• Each bid or proposal must be returned to the Town Secretary’s Office as designated
in the invitation. Each proposal is to be in a separate envelope, sealed and with the
bid or proposal identification number marked on the outside of the envelope. If more
than one bid is to be submitted, vendors are required to use separate envelopes for
each bid.
• The bid or proposal envelope must be clearly marked by the offeror with the date
upon which it is submitted to the Town and the Town Secretary or her designee shall
mark the date and time of receipt of by the Town.
• The bid or proposal envelope should then be filed unopened together with the other
bids or proposals for the same bid invitation until the time of the bid opening.
• Bids or proposals must be received by and opened on the date, hour and location as
specified in the invitation/request. Vendors are invited and encouraged to attend the
bid opening. Bid openings are considered open meetings and anyone can attend.
Three (3) Town representatives (i.e. employee, town official, or professional staff)
must be present at all bid openings.
• All bids and proposals must be sealed with the identification number clearly marked
on the outside of the envelope. One bid or proposal may be submitted per envelope.
Opened bids shall be kept on file and available for inspection.
7.08 Disqualified Bids
The following are grounds for disqualifying a submitted bid:
• Incomplete bids/proposals may be considered non-responsive. Such bids/proposals
may be considered for award if the non-responsiveness is due to a non-material
omission. (i.e. the omission does not affect price, quality, quantity, delivery or other
material contractual conditions).
• Unsigned bids/proposals, or bids/proposals with unauthorized signatures.
• Bids or proposals received after the date and time for opening. Late bids/proposals
are not considered for award of the purchase, will not be opened, and will be returned
to the submitting bidder/proposer.
• Bids/proposals where prices are conditional on award of another bid, or when prices
are subject to unlimited escalation. If allowed by the specification, prices may be
subject to escalation based on an independent wholesale index.
7.09 Correction or Withdrawal of a Bid
Bids may not be altered or amended after the submission deadline. A non-material
omission or error may be waived if:
• The omission or error relates to a matter of form, not substance; and
• Does not otherwise prejudice the other bidders/offerors.
Any alteration or change made to a bid or offer prior to opening must be initialed by the
authorized signatory of the bidder guaranteeing authenticity. Mathematical errors may
not be corrected. In the event of a conflict between a unit price for an item(s) and the
total price for such item(s), the Town reserves the right to resolve the conflict by
accepting the lowest price.
SECTION 8.0: EVALUATING COMPETITIVE BIDS
8.01 General
The Finance Director or his designee will provide tabulations, calculation checks, price
extension and information about compliance with specifications to the RFB/RFP.
8.02 Tabulating the Results
When bids or proposals are opened, the results are tabulated by the Finance Director or
his designee for easy reference. The following information is included in the bid
analysis:
• All calculations and sums are double checked for accuracy.
• Unit prices are extended to a total price for the requested quantity.
• The bid or proposal is verified to determine if all requirements listed meet
specifications. All areas where the bid/proposals fail to meet conditions included in
the specifications and whether any failures disqualify the bid/proposal are listed. Any
modifications to the specifications submitted by the vendor are so noted.
• All required samples to be included, if applicable, are verified by the Department.
• Samples of the desired product, if required, are tested and results of the test noted by
the Department.
8.03 Basis for Purchase Decision
The evaluation and recommendation includes whether or not the vendor has submitted a
responsive bid or proposal (one that meets all criteria of the RFB/RFP). Additionally,
information on the vendor’s record of being a responsible bidder (one who has proven
capable of performing a contract and/or appears financially and technically capable of
adequately performing this contract) is included. If the bidder’s safety record is to be
considered, the evaluation states if the bidder has an acceptable record, and if not, the
identifiable factors that were not satisfactory as required by the written definition and
criteria for accurately determining the safety record of a bidder and the Town has
complied with all other requirements of §252.0435 of the Texas Local Government Code,
as amended.
SECTION 9.0: AWARDING THE BID
9.01 Policy
The Town awards bids to the vendor who meets the requirements set forth in the bid
documents who offers the lowest cost or the vendor who provides goods or services at the
best value for the Town pursuant to the criteria set forth in Section 252.043 of the Texas
Local Government Code, as amended. If staff recommends award of a bid to a vendor
who is not the lowest responsible bidder, justification for the vendor selection must be
documented. In the event that no bid is deemed satisfactory, the Town may declare that
all bids are unacceptable.
9.02 Disqualification of a Bidder
If a bidder has provided unsatisfactory service or products to the Town in the past, those
experiences are to be thoroughly documented in order to support any later
disqualifications.
A vendor who fails to provide satisfactory products, goods or services or who has
breached, terminated or been terminated from a contract with the Town in the past will be
removed from the Approved Vendors List for future bidding opportunities and may be
disqualified from bidding on future projects.
SECTION 10.0: PROTESTING A BID
Upon selection of an offeror or bidder, all competitors must be notified in writing of the
procurement results and advised of their right to appeal the decision by the Department.
A protest must be submitted to Town’s Finance Director within seven (7) calendar days
of the date upon which the Town’s written notice of procurement results is made. All
such protests will be reviewed by the Town Manager who will issue a written decision
regarding the protest. An appeal from the decision of the Town Manager may be made to
Town Council and shall be placed on the Council agenda on the first available date for
which notice and publication requirements may be met after a written notice of appeal is
received by the Town Secretary.
SECTION 11.0: PROCUREMENT SPECIFICATIONS
A specification is a concise description of goods or services the Town seeks to buy, and
the requirements the vendor must meet in order to be considered for the award. A
specification may include requirements for testing, inspection or preparing an item for
delivery, or preparing or installing it for use. The specification is the total description of
the purchase. A good specification has four characteristics:
• It sets the minimum acceptability of the good or service. The term minimum
acceptability is key, since the vendor must know the minimum standard to determine
what to provide. Setting too high a standard means tax dollars will be wasted, while
setting too low a standard means the good or service will not meet the expectations of
the user.
• It should promote competitive bidding. The maximum number of responsible
vendors should be able to bid to the specifications. Restrictive specifications
decrease competition.
• It should contain provisions for reasonable tests and inspections for acceptability
of the good or service. The methods and timing of testing and inspecting must be
indicated in the specification. Tests should refer to nationally recognized practices
and standards, whenever possible.
• It should provide for an equitable award to the lowest responsible bidder. The
buyer obtains goods or services that will perform to expectations, and the vendor is
able to provide the goods or services at an equitable price.
SECTION 12.0: MODIFICATION AND TERMINATION OF CONTRACTS
12.01 Policy
All modifications or changes to a contract must be in writing. The Finance Director or
his or her designee may approve a change order that may increase or decrease a contract
by $15,000 or less. The Town Manager or her designee must approve modifications
exceeding $15,000. The original contract price is not to be increased by more than 25%.
Additionally, funding must be available to cover the cost of the price increase.
The original contract price may not be decreased by more than 25% without the consent
of the contractor.
12.02 Requirement to Re-bid
• In the event that a change order exceeds 25% of the contract price, a new bid must be
solicited using the same bidding procedures as noted in Section 6.0. A new bid
solicitation is to be issued if the procurement of supplies, equipment or services is
materially different from that specified in the previous bid process regardless of the
percentage in increase in the contract price.
SECTION 12.0: DELIVERY OF GOODS
Once goods are delivered to the Town’s offices, receipt of delivery is noted by signature of the
receiving department or the receptionist in the Administration Building. If the receptionist
receives goods, he/she will notify the department to which the goods belong.
The person receiving the goods should make every effort to inspect the goods prior to signing the
delivery ticket. If visible damage to a container being delivered is detected, it should be noted on
the delivery ticket. Although damage to the contents of the package may not be seen, making
this notation on the delivery ticket could make filing a claim easier if in fact the contents are
damaged. Sometimes, damage to goods is concealed in packaging and the receiving party has no
way of knowing of the damage.
SECTION 13.0: DISPOSAL OF SURPLUS PROPERTY
Annually, all departments shall review their assets and determine which items are no longer
needed. A list of surplus, obsolete or unused supplies, materials or equipment, including
description, make, model, and serial numbers should be forwarded to the Town Manager. Upon
review and approval by Town Manager or her designee the items on the department’s lists may
be transferred to other departments or sold through public auction. A copy of the items sold
including amounts, names, and addresses will be provided to the Finance Department so that it
can be removed from asset lists and insurance.
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 6-20-2005
Subject: Agenda Item No.F.1
Adjourn.
(lr)