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HomeMy WebLinkAboutORD 2025-59 - Amending Code in Section 4.08 for Contract Signature Authority, and Fiscal Budgetary PolicyORDINANCE NO. 2a25 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, AMENDING CHAPTER 4.08 OF THE CODE OF ORDINANCES RELATING TO CONTRACTING AUTHORITY OF CITY MANAGER AND STAFF; AMENDING THE FISCAL AND BUDGETARY POLICY, SECTION V. EXPENDITURE MANAGEMENT, PART E PURCHASING RELATING TO PURCHASING AND REQUISITION APPROVALS; REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS; INCLUDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the 89th Texas Legislature passed Senate Bill 1173, which increases the competitive bidding threshold for all Texas municipalities from $50,000 to $100,000, effective September 1, 2025; and WHEREAS, the City Council has determined that it is in the best interest of the City to update its corresponding bid limits and contracting authority thresholds to align with the new statutory requirements; and WHEREAS, the City Council further finds that Chapter 4.08 of the Code of Ordinances, relating to the contracting authority of the City Manager and staff, and Section V, Part E of the City's Fiscal and Budgetary Policy, relating to purchasing and requisition approvals, must be amended to reflect these changes; and WHEREAS, the City Council finds that the amendments to the Fiscal and Budgetary Policy as set forth below and the amendments to Chapter 4.08 of the Code of Ordinances attached hereto as Exhibit A and incorporated herein by reference, are necessary and in the best interest of the City and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. Ordinance No. 20Z5 5q Page 1 of 3 Description: Amending Chapter 4.08 and Fiscal and Budgetary Policy Date Approved: /D SECTION 2. The Fiscal and Budgetary Policy, Section V. Expenditure, Part E. Purchasing, of the City of Georgetown shall be amended as follows. Dollar Limits: Procurements: Requirements: $3,000 and Under the small purchase No competitive bids and City credit less limit cards may be used. $3,000.01 up Within informal bid limit No competitive bids; Historically to $50,000 Underutilized Business (HUB) requirements apply in accordance with state law. $50,000.01 Within informal bid limit A minimum of three informal up to solicitation for bids required unless $100,000 exempted; Historically Underutilized Business (HUB) requirements apply in accordance with state law. $100,001 In excess of the informal Formal competitive solicitations, and above bid limit which includes public notices, required unless exempted. Advisory board review and recommendation may be required. Council approval required. SECTION 3. Chapter 4.08 of the Code of Ordinances is hereby updated and replaced in its entirety as shown in Exhibit A. SECTION 4. All ordinances and resolutions, or parts of ordinances and resolutions, in conflict with this Ordinance are hereby repealed, and are no longer of any force and effect. SECTION 5. If any provision of this Ordinance or application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are hereby declared to be severable. SECTION 6. The Mayor is hereby authorized to sign this Ordinance and the City Secretary to attest. This Ordinance shall become effective on November 1, 2025 in accordance with the City Charter of the City of Georgetown, Texas. Ordinance No. 2045 - 61 Page 2 of 3 Description: Amending hapt r 4.08 and Fiscal and Budgetary Policy Date Approved: PASSED AND APPROVED on First Reading on the 14th day of October, 2025. PASSED AND APPROVED on Second Reading on the 281h day of October, 2025. ATTEST: Roby Densmore QV)4,i1y-e City Secretary he/1U,�z) APPROVED AS TO FORM: Skye Masson City Attorney THE CITY/OF GEORGETOWN: By: (Josh Sc Mayor Ordinance No. Zo 2s— 6 Page 3 of 3 Description: Amendin Cha ter 4.08 and Fiscal and Budgetary Policy Date Approved: 0 EY,419 a A - CHAPTER 4.08 AUTHORITY OF CITY MANAGER AND CITY STAFF TO CONTRACT Sec. 4.08.010. Delegation of contracting authority. A. Except as specifically provided herein, all contracts, including claim and lawsuit settlement agreements, to which the City is a party shall be approved by the City Council prior to execution. This Section may not be construed to delegate authority to approve or execute, without City Council action, any contract, contract amendment, change order or other legal instrument that is required by State Law to be approved by the City Council. The City Council hereby authorizes the City Manager to approve and execute the following by administrative action without further City Council action: 1. A contract for expenditures in the City Council approved budget for which the contract amount does not exceed the amount which requires compliance with state competitive procurement laws, provided that all such contracts and expenditures are in compliance with the City's annual budget and the City's fiscal and budgetary policy. 2. A change order to a contract required by state law to be procured through either competitive bid or competitive sealed proposal that increases or decreases the contract price by $100,000.00 or less, provided that the original contract price may not be increased by more than 25 percent, and provided that a change order may only make necessary changes to plans or specifications after the performance of the contract has begun or increase or decrease the quantity of good and services. 3. A contract amendment to a contract not required by state law to be procured through competitive bid or competitive sealed proposal modifying the scope of services and increasing or decreasing the contract price by $100,000 or less, provided that the original contract price may not be increased or decreased by more than 25 percent of the original contract price. 4. A change order or contract amendment modifying a contract originally approved pursuant to Subsection 4.08.010.13.1., provided however that the total contract price as amended cannot exceed $100,000.00. 5. The exercise of a renewal option, if the expenditure required during the renewal term is $100,000.00 or less. C. The City Manager may delegate authority granted under this Section to the extent allowed by this Code, the City Charter, or State law. The City Manager may make rules and procedures, which are not in conflict with this Code, the City Charter, or State law, concerning the form and substance of administrative actions necessary for the contracting and change order process. D. All contracts or expenditures in excess of the amount that requires compliance with the state competitive procurement laws must be approved by the City Council, even if they are included in the City Council - approved budget. E. If a method of procurement other than competitive sealed bidding or competitive sealed proposals is allowed by law, the City Manager or designee shall have the authority to determine whether to use an alternative method of procurement. If the City Manager or designee is considering using a method other than competitive sealed bidding, the City Manager or designee shall make such determination before notice is given. If the competitive sealed proposals requirement applies to the contract, the City Manager or designee shall consider the criteria described in State Law to determine the best value for the City. F. The City Council hereby authorizes the City Attorney to approve an agreement for outside attorney legal services for $100,000.00 or less provided that sufficient funds have previously been appropriated by City Council. Any other agreement for outside attorney legal services must be approved by Council. Secs. 4.08.011, 4.08.012. Reserved.