(a)
Except in the case of exempted procurements, the city may not purchase or enter into a contract that requires an expenditure of more than twenty-five thousand dollars ($25,000), without first submitting such to competitive sealed bidding, except in the case of high technology procurements in which case the city may take competitive sealed proposals. Exempted procurements shall include the following:
(1)
a procurement made because of a public calamity that requires the immediate appropriation of money to relieve the necessity of the city's residents or to preserve city property;
(2)
a procurement necessary to preserve or protect the public health or safety of the city's residents;
(3)
a procurement necessary because of unforeseen damage to public machinery, equipment, or other property;
(4)
a procurement for personal or professional services;
(5)
a procurement for work that is performed and paid for by the day as the work progresses;
(6)
a purchase of land or a right-of-way;
(7)
a procurement of items that are available from only one source;
(8)
a purchase of rare books, papers, and other library materials for a public library;
(9)
paving drainage, street widening, and other public improvements, or related matters, if at least one-third (1/3) of the cost is to be paid by or through special assessments levied on property that will benefit from the improvements;
(10)
a public improvement project authorized by the voters for which there is a deficiency of funds for completing the project in accordance with the plans and purposes authorized by the voters;
(11)
a payment under a contract by which a developer participates in the construction of a public improvement;
(b)
Notice of the time and place at which competitive sealed bids or proposals must be published at least once a week for two (2) consecutive weeks in the official newspaper of the city. The date for the first (1st) publication must be before the fourteenth (14th) day before the date set to incur the expenditure or the letting of the contract.
(c)
For any construction project which involves trench excavation that exceeds a depth of five feet (5'), the bid documents and the contract must include detailed plans and specifications for trench safety systems that meet Occupational Safety and Health Administration (OSHA) standards and that these plans and specifications include a pay item for these safety systems.
(e)
Contractor's Bond:
(1)
If the contract is for the construction of public works, the bidder to whom the contract is awarded must execute a good and sufficient bond. The bond must be:
(2)
If the contract requires an expenditure of less than $l00,000, the bond is not required if the contract provides that payment is not due to the contractor until the work is completed and is accepted by the municipality.
(f)
Referendum on Issuance of Time Warrants:
(1)
If, by the time set for letting a contract under this article, a written petition with the required signatures is filed with the municipal secretary or clerk requesting the governing body of the municipality to order a referendum on the question of whether time warrants should be issued for an expenditure under the contract, the governing body may not authorize the expenditure or finally award the contract unless the question is approved by a majority of the votes received in the referendum. The petition must be signed by at least ten percent (10%) of the qualified voters of the municipality whose names appear as property taxpayers on the municipality's most recently approved tax rolls.
(2)
If a petition is not filed, the governing body may finally award the contract and issue the time warrants. In the absence of petition, the governing body may, at its discretion, order the referendum.
(3)
The provisions of Chapters 1 and 2, Title 22, Revised Statutes, relating to elections for the issuance of municipal bonds and to the issuance, approval, registration, and sale of bonds govern the referendum and the time warrants to the extend those provisions are consistent with this article and Chapter 163, General Laws, Acts of the 42nd Legislature, Regular Session, 1931 (Article 2368a, Version's Texas Civil Statutes). However, the time warrants mature and are payable as provided by Article 2368a for funding bonds.
(4)
This section does not supersede any additional rights provided by the charter of a special law municipality and relating to a referendum.
(g)
Circumstances in Which Current Funds to be Set Aside.
If an expenditure under the contract is payable by warrants on current funds, the governing body of the municipality by order shall set aside an amount of current funds that will discharge the principal and interest of the warrants. Those funds may not be used for any other purpose, and the warrants must be discharged from those funds and may not be refunded.
(h)
Payment Method for Certain Contracts.
If the contract is for the construction of public works or for the purchase of materials, equipment, and supplies, the municipality may let the contract on a lump sum basis or unit price basis as the governing body of the municipality determines. If the contract is let on a unit price basis, the information furnished to bidders must specify the approximate quantity needed, based on the best available information, but payment to the contractor must be based on the actual quantity constructed or supplied. (Acts 1987, 70th Leg., ch. 149, #1, eff. Sept. l, 1987.)
(i)
Change Orders.
(1)
If changes in plans or specifications are necessary after the performance of the contract is begun or if it is necessary to decrease or increase the quantity of work to be performed or of materials, equipment, or supplies to be furnished, the governing body of the municipality may approve change orders making the changes.
(2)
The total contract price may not be increased because of the changes unless additional money for increased costs is appropriated for that purpose from available funds or is provided for by the authorization of the issuance of time warrants.
(3)
If a change order involves a decrease or an increase of $15,000 or less, the governing body may grant general authority to an administrative official of the municipality to approve the change orders.
(4)
The original contract price may not be increased under this section by more than twenty-five percent (25%). The original contract price may not be decreased under this section by more than twenty-five percent (25%) without the consent of the contractor.
(j)
Confidentiality of Information in Bids or Proposals.
(1)
Trade secrets and confidential information in competitive sealed bids are not open for public inspection.
(2)
If provided in a request for proposals, proposals shall be opened in a manner that avoids disclosure of the contents to competing offerors and keeps the proposals secret during negotiations. All proposals are open for public inspection after the contract is awarded, but trade secrets and confidential information in the proposals are not open for public inspection.
(k)
Lease-Purchase or Installment Purchase of Real Property.
(1)
This subsection applies only to a lease-purchase or installment purchase of real property financed by the issuance of certificates of participation.
(2)
The governing body of a municipality may not make an agreement under which the municipality is a lessee in a lease-purchase of real property or is a purchaser in an installment purchase of real property unless the governing body first obtains an appraisal by a qualified appraiser who is not an employee of the municipality. The purchase price may not exceed the fair market value of the real property, as shown by the appraisal.
(Ordinance adopting Code; 1996 Code of Ordinances, Chapter 1, Article 16.00, Section 16.01)