It is the purpose of this article to establish uniform guidelines by which city department can acquire goods and services. The goals are designed to:
(1) 
Ensure compliance with state and local laws pertaining to municipal purchasing;
(2) 
Ensure the lowest responsive vendor is paid for goods and services meeting city specifications;
(3) 
Meet the operational needs of the city;
(4) 
Provide a timely and cost effective method for acquiring goods and services;
(5) 
Provide reasonable and efficient internal controls; and
(6) 
Encourage competitive bidding on the part of vendors.
(Ordinance 1324, § 1, 4-26-05)
Records, including purchase orders, invitations to bid, bid tally sheets and other information of a public nature are available for review at the city secretary's office following completion of the bidding process. Release of documents is subject to the Texas Public Information Act as may be retained pursuant to the city's records management policy.
(Ordinance 1324, § 1, 4-26-05)
(a) 
Prohibited Act.
No officer or employee of the city shall have a financial interest directly or indirectly in any contract of the city or be financially interested directly or indirectly in the purchase sale of any land, supplies or services except on behalf of the city as an employee of the city.
(b) 
State Statutes.
In addition to the prohibition stated in subsection (a):
(1) 
Local public officials, as that term is defined in Texas Local Government Code section 171.001 shall comply with the requirements of Texas Local Government Code section 171.004, whenever the local public official discovers he or she has a substantial interest in any business or real property that is the subject of a vote or decision of an elected body of the city or any officer of the city having final decision making authority; and
(2) 
Local government officers and vendors, as those term is defined in Texas Local Government Code section 176.001, shall comply with all applicable disclosure requirements of Texas Local Government Code chapter 176.
(c) 
State and Federal Awards.
In addition to the prohibition stated in subsections (a) and (b) whenever the procurement of supplies, equipment, construction services or professional services is supported in whole or part by a federal or state award compliance with applicable federal and state statutes, rules and orders, including but not limited to Texas Government Code chapter 573, the Uniform Grant Management Standards by the Texas Comptroller and Code of Federal Regulations section’s 24 CFR 570.489(g) and (h); 2 CFR 200.318; 2 CFR 200:112-113; 24 CFR 570.611(a)(l) and (2); 2 CFR 200.318(c)(l) and 24 CFR 85.36(b)(3).
(d) 
Acknowledgement.
Within 30 days after the passage of the ordinance adopting this section, every officer, employee, service provider contractor and vendor shall sign a code of conduct acknowledgement, on such form as approved by city council, acknowledging the requirements of this section. Thereafter, each new employee appointed or elected official shall sign the code of conduct acknowledgment within ten days of hire, appointment or election; and every person or representative of a corporate entity seeking to provide goods or services to the city shall sign the code of conduct acknowledgment and include an original of the signed acknowledgement with the submitted bid, proposal or qualifications.
(e) 
Penalties.
In addition to the criminal penalties prescribed in section 1-7 for violations of the Code of Ordinances and the statutory criminal penalties prescribed for violation of a state or federal statute, an employee who violates this section may be subject to disciplinary action; an official who violates this section may be subject to city council action as prescribed in the city charter; and any vendor contractor or service provider who violates this section may subject to disbarment from submission of bids, proposals or qualifications for a period of three (3) years from the date such violation is judicially determined; or determined by city council to have occurred.
(Ordinance 1324, § 1, 4-26-05; Ordinance 1781, § 2, 2-25-20)
The acceptance of gifts is governed by section 40-42 of the City of Rockport Code of Ordinances. Unless otherwise allowed, no employee shall accept a gift from any person, firm or organization who is or is attempting to sell or buy land, supplies or equipment to the city.
(Ordinance 1324, § 1, 4-26-05)
(a) 
The V.T.C.A. Government Code, § 2251.027 (e), commonly known as the Prompt Payment Code, sets out required deadlines for payment of a government's obligations to its vendors, requirements for vendors payments to their subcontractors, and penalties for failure to comply with the Code and exceptions to the Code.
(b) 
Unless the city provides otherwise on the purchase order or contracts, the Code requires political subdivisions to pay all payments owed not later than 30 days after the goods and services are received, or the date the invoice is received, whichever is later. Interest automatically accrues at one percent per month. The act also requires vendors to follow the same rules for payments to their subcontractors. Subcontractors must pay their suppliers, material men and servicemen, with ten days of receipt of their payment.
(c) 
When the city believes there is an error received from a vendor, it has until the 21st day after receipt to notify the vendor of the dispute. If resolved in favor of the city, the vendor must submit a new invoice and the city has 30 days to pay. If the dispute is resolved in favor of the vendor, interest is due from the original date of the invoice. The notice shall be sent to the vendor by the director of finance, following discussions with department heads, and a copy of the notice shall be attached to the finance department payment records.
(Ordinance 1324, § 1, 4-26-05)
(a) 
Tangible personal property incorporated into realty of the city under V.T.C.A. Tax Code §§ 151.309 or 151.310 is exempt from sales and use tax. This includes materials used in lump sum and separated contracts.
(b) 
Tangible personal property that is necessary or essential to the performance of a contract for the city is exempt if the property is completely consumed at the job sites. Tangible personal property is completely consumed if, after being used once for its intended purpose it is used up or destroyed. Machinery and equipment are not exempted and the contractor owes tax on the purchase, lease or rental of machinery, equipment, repair or replacement parts, and accessories for the machine or equipment.
(c) 
Taxable services purchased for use in performing the contract will be exempt from tax if the service is performed at the job site, and the service is either expressly required under the contract or is integral to the performance of the contract.
(d) 
Sales and use tax exempt certifications and Texas resale certificate forms are issued by the contractors directly to the suppliers.
(Ordinance 1324, § 1, 4-26-05)
(a) 
A municipality, in making an expenditure of more that $3,000.00 but less that $25,000.00, shall contact at least two historically underutilized businesses (HUBS) on a rotating basis based on information provided by the Office of Small Business Assistance of the Texas Department of Commerce, pursuant to Section 1.03 State Purchasing and General Service Act (Article 601 b, Vernon's Civil Statutes).
(b) 
If the list fails to identify a HUB in the county of which the city is situated, the city is exempt from this act. The City of Rockport is situated in Aransas County.
(Ordinance 1324, § 1, 4-26-05)
Payments for goods and services will be withheld from any person, firm or corporation when a notice of levy is issued by the Internal Revenue Service for delinquent taxes, or when an order is received from the Federal Bankruptcy Courts.
(Ordinance 1324, § 1, 4-26-05)
(a) 
All contracts, purchases and expenditures exceeding amounts as provided by state law must be expressly approved in advance by the city council and subject to competitive bidding or competitive sealed proposals and shall be let to the bidder who is most responsive to the needs of the city after all factors and circumstances surrounding the bid including, but not limited to the lowest price. The city council retains the right to reject all bids. Relevant purchases order procedures in Section 3.1 of this policy procedure and other purchasing procedures in the policy should be followed for purchase and expenditures in excess of amounts provided by state law.
(b) 
The exceptions to bidding requirements are stated in V.T.C.A. Local Government Code, § 252.022.
(Ordinance 1324, § 1, 4-26-05)
(a) 
V.T.C.A. Local Government Code, § 252.041 specifies the notice requirements for municipalities. Consistent with the code, the following procedures shall be followed:
(1) 
If the competitive sealed bidding requirement applies to the contract notice of the time and place which the bids will be publicly opened and read aloud must be published at least once a week for two consecutive weeks in the city's official newspaper. The date of the first publication must be before the 14th day before the date set to publicly open the bids and read them aloud.
(2) 
2. If the competitive sealed proposal requirement applies to the contract, notice of the request for proposals must be given in the same manner as the prescribed in subsection (1) above.
(3) 
If the contract is for the purchase of vehicles or equipment, the notice for bids and the order for purchases must include a general specification of the vehicle or equipment desired.
(b) 
Departments are responsible for submitting requests for bids and requests for proposals to the city secretary's office to allow for sufficient time for the necessary advertisements prior to bid or proposal opening dates. The city secretary's office is responsible for placing the advertisements required. Departments are responsible for preparing and providing to the city secretary bid invitation forms (Exhibit E) to be mailed by the city secretary to each firm known to be interested in bidding on the goods or service to be acquired.
(Ordinance 1324, § 1, 4-26-05)
The following are general provisions to be followed with regard to purchase procedures:
(1) 
As bids and proposals are received by the city secretary's office, they shall be stamped with the date and time of receipt, but left unopened.
(2) 
On the date and time of bid opening as designated in the published notice, the city secretary or other persons designated by the city manager shall open the bids at a public meeting. If bidders are represented at the bid opening, they should be provided a tabulation of the bids/proposals received not later that three days after bid opening and should be informed of the process and schedule to be observed in awarding the contract.
(3) 
If the contract is for construction of public works, the successful bidder must provide a bond for the faithful performance for the full amount of the contract.
(4) 
Consistent with Section 7.09 of the City Charter, the city council may, by ordinance, confer upon the city manager general authority to contract for expenditure without further approval of the city council for all budgeted items not exceeding limits set by the city council. Consistent with state law, all expenditures must be approved in advance by the city council and subject to competitive bidding or competitive sealed proposals. These provisions apply to professional service agreements.
(5) 
Department heads shall submit a list of individuals authorized to purchase to the finance department. This list shall contain the level at which each individual is allowed to purchase.
(6) 
It shall not be permissible to make several purchases of the same or similar items for the purpose of circumventing the competitive bidding or competitive proposal requirements.
(Ordinance 1324, § 1, 4-26-05)
(a) 
Purchases up to $1,000.00.
A payment authorization form will be used for these purchases. The payment authorization form will be forwarded to the accounting clerk with the original invoice for payment processing.
(b) 
Purchases from $1,000.00 to $25,000.00.
The department head will prepare a report including at least two telephone quotes on the cost of the item to be purchased. This report should be included n the purchase requisition form and forwarded to the accounting clerk for approval. The accounting clerk will check the purchase requisition for budget control and issue a purchase order. Upon receipt of the signed purchase order from the accounting clerk, the requesting department is free to make the purchase.
(Ordinance 1324, § 1, 4-26-05)
(a) 
A payment authorization form may be used for purchases of the following:
(1) 
Purchases made through purchasing agreements with the State of Texas, or the Government Services Association;
(2) 
Payment initiated by the finance department for utility bills and other similar payments;
(3) 
Insurance premium payments;
(4) 
Monthly or other regularly scheduled payments under existing contractual agreements;
(5) 
Professional or legal services; and
(6) 
Payments authorized by the city manager or his/her designee.
(b) 
The following information should be included on each payment authorization form:
(1) 
Account number from which funds will be disbursed;
(2) 
Payee to include name, address and phone number of vendor;
(3) 
Signature authorizing purchase, initials of accounting clerk confirming the availability of funds;
(4) 
Date submitted; and
(5) 
Amount of request.
(c) 
Receipts, invoices and/or other documentation supporting the payment authorization should be attached to the payment authorization. On occasion there may not be a receipt, invoice or other documentation supporting the request. In these cases, the person requesting the payment should provide a memo containing the information that should be attached to document. This memo should be signed and dated by the responsible for proving the appropriate documentation.
(Ordinance 1324, § 1, 4-26-05)
(a) 
When an emergency arises after normal business hours, the department head may authorize the purchase and prepare a requisition the next business day and explain the emergency in the comment section of the requisition. Upon receipt, a purchase order will be generated by the accounting clerk and sent to the vendor for invoicing purposes.
(b) 
Emergencies created through negligence or improper planning must be avoided. Examples of these situations are orders for goods or services for projects planned several weeks in advance or the depletion of stock due to inattention of supply inventory.
(c) 
A list of emergencies will be documented and reported to the city manager on a periodic basis. Many vendors charge premium prices for goods and services needed on a rush basis and expedited freight service is expensive. Better prices are usually obtained through normal purchases that request delivery in a timely manner.
(Ordinance 1324, § 1, 4-26-05)
(a) 
Sole sources may occur because of the existence of patents, copyrights, secret processes or natural monopolies, such as utility services. The purchase of comparative replacement parts or components for equipment may result in sole source procurement as well.
(b) 
Sole source purchases are rare and all purchase orders must contain a brief explanation why only one source is available for the purchase. Merely listing that the purchase is sole source is not sufficient documentation for auditors and others who may question the validity of the purchase.
(Ordinance 1324, § 1, 4-26-05)
(a) 
Payment authorization.
The payment authorization form is used for purchases from $0.00 to $1,000.00. The objective of this form is to inform the budget officer of the using department's need to purchase an item and to provide record to the accounting clerk of the purchase.
(b) 
Purchase requisition.
The purchase requisition is the form needed to notify the budget or finance officer of a request to purchase merchandise or service. The objectives of the purchase requisition are as follows:
(1) 
To inform the budget officer of the using department's need to purchase an item;
(2) 
To place an emphasis on spending control within the organization;
(3) 
To exercise a positive cash flow, with the finance officer exercising discretion in the purchase of the item, based upon cash available;
(4) 
To improve and develop proper accounting records;
(5) 
To exercise judgment as to the appropriateness of the proposed expenditures.
(c) 
Purchase requisition procedure:
(1) 
The department head will prepare a report of two quotes obtained for purchases of $1,000.00 and above and the department head's recommendation. This report will be included on the purchase requisition.
(2) 
Purchase requisition will contain the following:
a. 
Department requesting purchase;
b. 
Date of requisition;
c. 
Vender name, address, and telephone number;
d. 
Quantities, description, unit price, and total price of purchase;
e. 
Explanation of reason for request;
f. 
Budget account number purchase will be charged to;
g. 
Signature of department head making request.
(d) 
Purchase requisition form (a duplicate form) will be sent to the accounting clerk to be verified for compliance with the budget. Accounting clerk will approve the purchase requisition and issue a purchase order if in compliance with the budget. A signed purchase order and a copy of the purchase Requisition will be returned to the requesting department head who may then purchase the items requested.
(e) 
Purchase order.
The purpose of the purchase order form is to extend authorization to the vendor to ship and invoice for the merchandise ordered and functions as a contract between the municipality and the vendor. The primary purpose of the purchase order is to provide control of purchasing for the municipality. The accounting clerk of the finance department writes a purchase order after approval of the purchase requisition. The purchase order extends an "authority to order" to the using department.
(f) 
Purchase order routing.
The purchase order form should consist of an original and three copies:
(1) 
Copy 1-The original copy of the purchase order is submitted to the requesting department with their copy of the purchase requisition to signify that the requisition has been authorized.
(2) 
Copy 2-This copy is retained by the finance department and attached to the other documents associated with the purchase in order to formulate a payment voucher.
(3) 
Copy 3-The finance department retains the copy where it is placed in a file for outstanding purchase orders.
(4) 
Copy 4-This copy consists of the receiving report and should be provided to the using department.
(g) 
Receiving report.
A receiving report will be submitted to indicate acknowledgment from the requesting department that the merchandise has been received. A superintendent or department head should receive merchandise. Along with the receiving report, the requesting department should attach freight tickets, packing slips, etc. The purpose of this report is to officially acknowledge that the municipality has received the merchandise in accordance with the purchase order; therefore notifying the finance officer that the item described can be paid once the bill is received. If there is invalid, damaged, or mispriced materials, a receiving report should not be prepared; Identification of damaged merchandise should be made at the time of delivery to the delivery person.
(Ordinance 1324, § 1, 4-26-05)