HomeMy WebLinkAboutOrdinance 20533-12-2012ORDINANCE NO. 20533-12-2012
AN ORDINANCE AMENDING CHAPTER 2 (ADMINISTRATION),
ARTICLE I (IN GENERAL), SECTION 2 -9 (CONTRACT EXECUTION;
AMENDMENTS; CHANGE ORDERS) OF THE CODE OF THE CITY OF
FORT WORTH, TEXAS (1986), AS AMENDED, TO INCREASE THE
MAXIMUM AMOUNT OF A PUBLIC WORKS CHANGE ORDER THAT
MAY BE EXECUTED BY THE CITY MANAGER WITHOUT CITY
COUNCIL APPROVAL, TO MEMORIALIZE CURRENT
ADMINISTRATIVE REGULATIONS PROVIDING FOR EMERGENCY
PROCUREMENTS, AND TO MAKE MINOR ADJUSTMENTS FOR
CLARITY; PROVIDING THAT THIS ORDINANCE SHALL BE
CUMULATIVE; PROVIDING FOR A SEVERABILITY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, Section 2 -9 of the City Code currently authorizes the City Manager to execute
certain City contracts without the approval of the City Council; and
WHEREAS, Section 2 -9(f) of the City Code currently authorizes the City Manager to
execute change orders to City public works contracts without City Council approval so long as
they do not involve a decrease or increase of more than Fifty Thousand Dollars ($50,000.00); and
WHEREAS, effective September 1, 2011, Section 252.048(c -1) of the Texas Local
Government Code, as enacted pursuant to House Bill 628 (82nd Texas Legislature), authorizes
the governing body of a municipality with a population of 500,000 or more to grant general
authority to an administrative official to approve change orders to public works contracts so long
as they do not involve a decrease or increase of more than One Hundred Thousand Dollars
($100,000.00); and
WHEREAS, in order to expedite the process for execution of change orders to City
public works contracts, and consistent with the City Council's past actions granting
administrative authority for contract execution to the City Manager in accordance with limits
established by state law, the City Council wishes to amend Section 2 -9 of the City Code to grant
the City Manager authority to execute change orders to City public works contracts involving a
decrease or increase of One Hundred Thousand Dollars ($100,000.00) or less, as authorized by
and in accordance with Section 252.048(c -1) of the Texas Local Government Code; and
WHEREAS, Section 252.022 of the Texas Local Government Code has long exempted
emergency purchases from standard municipal competitive bidding and competitive proposal
requirements; and
WHEREAS, Section V.F.4 of Finance Directive 15, as authorized by Administrative
Regulation C-12, outlines a process by which the City Manager may authorize emergency
Page 1 of 5
Ordinance Amending Section 2 -9, City Code Ordinance No. 20533 -12 -2012
procurements that are deemed necessary to protect the public health, safety and welfare; and
WHEREAS, it is appropriate that the current process allowing for emergency
procurements authorized by the City Manager pursuant to Finance Directive 15 be further
memorialized in Section 2-9 of the City Code; and
WHEREAS, minor changes to the vocabulary and organization of Section 2-9 of the City
Code will provide better clarity to that Section, as reflected below;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
SECTION 1.
Chapter 2 (Administration), Article I (In General), Section 2-9 (Contract execution;
amendments; change orders) is hereby amended to read as follows:
(a) Except as otherwise 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 by the city manager. As
used in this section, the term "city manager" shall also include "assistant
city manager."
(b) The city council hereby adopts and the city manager is authorized to
implement:
(1) Use of the best value selection criteria for eligible transactions as
authorized by state law;
(2) Use of electronic bid and proposal processing, provided that
appropriate rules for procedure and security have been adopted and
implemented;
(3) Use of the online reverse auction procedure where authorized and
appropriate;
(4) Use of Interlocal contracts with entities outside the State of Texas
where authorized and advantageous to the city.
Page 2 of 5
Ordinance Amending Section 2-9, City Code Ordinance No. 20533-12-2012
(c) Any contract or other legal instrument for the sale, purchase or lease of
real property shall be approved by the city council prior to execution or
acceptance of the city manager; provided, however, that leases for a term
not exceeding thirty (30) days and involving an amount not exceeding fifty
thousand dollars ($50,000.00) may be executed by the city manager
without city council approval.
(d) The city manager may execute the following without city council approval:
(1) Any contract involving an expenditure of fifty thousand dollars
($50,000.00) or less of city funds, provided that sufficient funds
have previously been appropriated by the city council;
(2) Any amendment to a purchase order or a contract other than a
public works contract involving an expenditure of fifty thousand
dollars ($50,000.00) or less of city funds, provided that sufficient
funds have previously been appropriated by the city council;
(3) a. Any individual change order to a public works contract
involving an increase or decrease in cost of one hundred thousand
dollars ($100,000.00) or less of city funds, provided that (i) the
contract covers a project for which the City first advertised or
otherwise requested bids, proposals, offers or qualifications, or
made similar solicitations, on or after September 1, 2011; (ii)
sufficient funds have previously been appropriated for payment of
such added cost; and (iii) the director of the department responsible
for such work issues a written recommendation for such change
order; or
b. For any public works contract not subject to Section 3.a
above, any individual change order involving an increase or
decrease in cost of fifty thousand dollars ($50,000.00) or less of
city funds, provided that (i) sufficient funds have previously been
appropriated by the city council for payment of such added cost
and (ii) the director of the department responsible for
administration of the contract or the procurement issues a written
recommendation for such change order;
(4) Any contract or other legal instrument for the lease, license or use
of facilities at the Will Rogers Memorial Center;
Page 3 of 5
Ordinance Amending Section 2-9, City Code Ordinance No. 20533-12-2012
(5) Any contract or other legal instrument for the lease, license or use
of facilities at the Fort Worth Convention Center;
(6) The vacation of a water, sanitary sewer, public or quasi-public
utility or drainage easement;
(7) Temporary and permanent easements granted to the city and valued
at less than fifty thousand dollars ($50,000.00);
(8) Consent agreements for encroachments into public property which
comply with the Building Code Section 7-47, adopting, among
other things, Chapter 3210 of the International Building Code; and
provided further, that the city manager may authorize the building
official and planning and development director to execute such
agreements;
(9) Any contract for the purchase of electricity provided that (i) the
term of any such contract does not exceed forty-eight (48) months
and (ii) sufficient funds have previously been appropriated by the
city council for that purpose; and
(10) Any contract for an emergency procurement. An "emergency
procurement" is defined as 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 the
property of the municipality; a procurement necessary to preserve
or protect the public health or safety of the City's residents; or a
procurement necessary because of unforeseen damage to public
machinery, equipment or other property, and is exempt from the
competitive procurement requirements pursuant to Chapter 252,
Texas Local Government Code, as amended.
(e) Any contract for which the best value selection criteria are not authorized,
that is submitted to competitive bids and is proposed to be awarded to a
bidder other than the lowest bidder shall be approved by the city council
before execution by the city manager.
Page 4 of 5
Ordinance Amending Section 2-9, City Code Ordinance No. 20533-12-2012
SECTION 2.
This ordinance shall be cumulative of all provisions of ordinances of the Code of the City of
Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are in direct
conflict with the provisions of such ordinances and such Code, in which event conflicting
provisions of such ordinances and such Code are hereby repealed.
SECTION 3.
It is hereby declared to be the intention of the City Council that the sections, paragraphs,
sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence,
paragraph or section of this ordinance shall be declared void, ineffective or unconstitutional by the
valid judgment or decree of any court of competent jurisdiction, such voidness, ineffectiveness or
unconstitutionality shall not effect any of the remaining phrases, clauses, sentences, paragraphs and
sections of this ordinance, since the same would have been enacted by the City Council without the
incorporation in this ordinance of any such void, ineffective or unconstitutional phrase, clause,
sentence, paragraph or section.
SECTION 4.
This ordinance shall take effect and be in full force and effect from and after its passage,
and it is so ordained.
APPROVED AS TO FORM AND LEGALITY:
Assistant City Attorney
ADOPTED: December 11, 2012
M&C: G -17765
Page 5 of 5
Ordinance Amending Section 2-9, City Code Ordinance No. 20533-12-2012
Attachment "A"
Sec~ 2~9~ ~ Conti,act execution; arnendrVients; change (,)rders.
(a) Except as otherwise provided herein, all contnaota, including claim and
lawsuit settlement agreements, to which the city is a party shall beapproved
by the city council prior &o execution bv the city manager. Ao used |nthis
section, the term "city manager" shall also include "assistant city noone0er."
(b) The city council hereby adopts and the city manager ia authorized bo
(1) Use ofthe value selection criteria for eligible
transactions oo authorized bv state law;
i2\ Use Vf electronic bid and proposal processing, provided that
appropriate rules for procedure and security have been adopted and
C8 Use of the online reverse auction procedure where authorized and
(4) Use of|ntedmcal contracts with entities outside the State of Texas
where authorized and advantageous to the city.
(d) Any contract or other legal instrument for the sale, purchase or lease of real
property shall be approved bv the city council prior bu execution Or
acceptance of the city manager; provided, however, that leases for a term not
exceeding thirty (3U) days and involving an amount not exceeding fi#v
thousand dollars ($50,000.00) may be executed by the city manager without
city council approval.
k0 PFOVided further, that t The city manager may execute eppma*ethe fd|uvvng
without city council approval:
(1) Any contract involving an expenditure of fifty thousand dollars
($50,000.00) or less of cily funds, provided that sufficient funds have
previously been appropriated by the city council:
Attachment "A"
(2) Any amendment to a contract OF an amendmen to a purchase order
or a contract other than a public works contract involving an
expenditure of fifty thousand dollars ($50,000.00) or less of city funds,
provided that sufficient funds have previously been appropriated by
the city council. This section does not apply to publir. WGFks
GontFaGt_c.,
(3) a. Any individual change order to a public works contract
involving an increase or decrease in cost of one hundred thousand
dollars ($100,000.00) or less of city funds, provided that (i) the
contract covers a project for which the City first advertised or
otherwise requested bids, proposals, offers or qualifications, or made
similar solicitations, on or after September 1, 2011: (ii) sufficient funds
have previously been appropriated by the city council for payment of
such added cost: and (iii) the director of the department responsible
for such work issues a written recommendation for such change
order* or
b. For any public works contract not subject to Section 3.a .
above, any individual change order involving an increase or decrease
in cost of fifty thousand dollars ($50,000.00) or less of city funds,
provided, that (i) sufficient funds have previously been appropriated
by the city council for payment of such added cost and (ii) the director
of the department responsible for such work issues a written
recommendation for such change order:
(4) Any contract or other legal instrument for the lease, license or use of
facilities at the Will Rogers Memorial Center;
(5) Any contract or other legal instrument for the lease, license or use of
facilities at the Fort Worth Convention Center; and
(6) The vacation of a water, sanitary sewer, public or quasi-public utility
or drainage easement-."
(7) Temporary and permanent easements granted to the city and valued
at less than fifty thousand dollars ($50,000.00)-.,-
2
Attachment "A"
UB Consent agreements for encroachments into public property which
comply with the Building Code Section 7-47, adopting, among other
SeeM**n Chapter 3210 ofthe International Building Code, and
provided further that the city manager may authorize the
building official and planning and development director to execute
such agr8enle0ts��
(9) Any contract for the purchase of electricity provided that (i) the term
of any such contract does not exceed fo0y-eight (48) months and (ii)
sufficient funds have previously been appropriated by the city council
for that purpose; and
(10) Any contract for an emergency procurement. An "emeLgency
procurement" is defined as a procurement made because of a public
calamity that reguires the immediate appropriation of money to
relieve the necessity of the City's residents or to preserve the
Propeqy of the municipalily; a procurement necessa[y to preserve or
protect the public health or safety of the City's residents: or a
procurement necessa[y because of unforeseen damage to public
machine(y, equipment or other property, and is exempt from the
competitive procurement requirements pursuant to Chapter 252
Texas Local Government Code, as amended.
(e) Any contract for which the best value selection criteria are not authorized,
that is submitted ho competitive bids and is proposed hobe awarded hna
bidder other than the lowest bidder shall be approved bv the city council
before execution by the city manager.
170. No-
WIN
Attachment "A"
Sec. 2~9'~Contract execution; ariverkdrnents; cliange orders.
(a) Except as otherwise 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 ho execution by the city manager. As used inthis
section, the term "city manager" shall also include "assistant city nnanaQer.^
(b) The city council hereby adopts and the city manager hS authorized to
(1) Use of the value selection criteria for eligible
transactions asauthorized by state |uvv;
C2> Use of electronic bid and proposal processing, provided that
appropriate rules for procedure and security have been adopted and
CD Use of the online reverse auction procedure where authorized and
WN Use of|nb*doco| contracts with entities outside the State ofTexas
where authorized and advantageous to the city.
(d) Any contract or other legal instrument for the sale, purchase orlease of real
property shall be approved bv the city council prior to execution Vr
acceptance of the city manager; provided, however, that leases for a term not
exceeding thirty (3O) days and involving 8n amount not exceeding fifty
thousand dollars ($50,000.00) may be executed by the city manager without
city council approval.
k8 city manager may execute approve the following
without city council approval:
(1) Any contract involving an expenditure of fifty thousand dollars
($50,000.00) or less of ci!y funds, provided that sufficient funds have
previously been appropriated by the cily council:
Attachment "A"
CD Any amendment to a oontFact OF an amendmen hua purchase order
or a contract other than a public works contract involving an
expenditure of fifty thousand dollars ($5O.000.0U) or less of city funds,
provided that sufficient funds have previously been appropriated by
the city council.
sE)ntFauGtS.,
CB aL Any individual chan-ge order to a public works contract
involving an increase or decrease in cost of one hundred thousand
dollars ($100,000.00) or less of cijy funds, provided that (i) the
contract covers a Proaect for which the City first advertised or
otherwise requested bids, proposals, offers or qualifications, or made
similar solicitations, on or after September 1, 2011; (ii) sufficient funds
have previously been appropriated by the city council for payment of
such added cost: and NO the director of the department responsible
for such work issues a written recommendation for such change
order: o
b. For any public works contract not subject to Section 3.a.
above, any individual change order involving an increase or decrease
in cost of fifty thousand dollars ($50,000.00) or less of city funds,
provided, that (i) sufficient funds have previously been appropriated
by the city council for payment of such added cost and (ii) the director
of the department responsible for such work issues a written
recommendation for such change order:
(4) Any contract or other legal instrument for the |e8Se. license or use of
facilities at the Will Rogers Memorial Center;
05) Any contract or other legal instrument for the lease, license or use of
facilities at the Fort Worth Convention Center; and
KB The vacation Vfawater, sanitary sewer, public or quasi-public utility
or drainage easement-.,
(7) Temporary and permanent easements granted to the city and valued
at less than fifty thousand dollars ($50,000.00)-.1-
Attachment "A"
88) Consent agreements for encroachments into public property which
comply with
thinQs^Se*fi*n Chapter 3210 ofthe International Building Code-, and
of the Gity, provided further that the city manager may authorize the
building official and planning and development director toexecute
such agreements-.,-
L9) Any contract for the purchase of electricity provided that (i) the term
of any such contract does not exceed foq-eight (48) months and (ii)
sufficient funds have previously been appropriated by the city council
for that purpose; and
(10) Any contract for an emergency procurement. An "emer-genc
procurement" is defined as a procurement made because of a public
calamily that requires the immediate appropriation of money to
relieve the necessity of the City's residents or to preserve the
propeq of the municipality: a procurement necessa[y to preserve or
protect the public health or safe!y of the City's residentsm or a
procurement necessary because of unforeseen damage to public
machinery, eguipment or other prope[!y, and is exempt from the
competitive procurement requirements pursuant to Chapter 252,
Texas Local Government Code, as amended.
(e) Any contract for which the best value selection criteria are not authorized,
that is submitted to competitive bids and is proposed bzbe awarded bzm
bidder other than the lowest bidder shall be approved by the city council
before execution by the city manager.
(g) Any oentraGt for the purGhase of e!eGtFmGmty may be executed by the city
manager without Gity GOunGil approval provided that (i) the term of any
GontraGt does not eXGeed forty eight (48) months and (OR) SUffiGient funds have
. sly been appropriated by the Gity GGunGil for that purpose.
City of Fort Worth, Texas
Mayor and Council Communication
"'20
10 g7 ,t
C ONC,11LACT 4,,,_A
Q I
ppro ad on, 12/11/2012 -Ord qairt �,a, N' 20,53
DATE: Tuesday, December 11, 2012 REFERENCE NO.: G-17765
LOG NAME: 12CHANGE ORDER INCREASE
SUBJECT:
Adopt Ordinance Amending Chapter 2, Article 1, Section 2-9 of the City Code to Authorize the City Manager
to Execute Change Orders to Public Works Contracts in Amounts Up to $100,000.00, to Clarify the City
Manager's Authority to Make Emergency Procurements and to Make Minor Organizational Changes (ALL
COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance amending Chapter 2, Article 1,
Section 2-9 of the City Code to authorize the City Manager to execute change orders to public works
contracts in amounts up to $100,000.00, to clarify the City Manager's authority to make emergency
procurements and to make minor organizational changes.
DISCUSSION:
Chapter 2, Article 1, Section 2-9 of the City Code generally requires that the City Manager must first obtain
specific City Council approval before he is authorized to execute a contract to which the City is a party.
However, in order to more easily facilitate the conduct of day-to-day City business, the City Council has
granted the City Manager limited authority to execute certain contracts administratively. These exceptions
are outlined in Section 2-9. For example, the City Manager currently is authorized to execute contracts
and some contract amendments involving expenditures of $50,000.00 or less without City Council
approval pursuant to Sections 2-9(c) and (d)(6) of the City Code.
The attached ordinance amends Section 2-9 of the City Code in three limited ways:
1. Change Orders to Public Works Contracts.
The City Code currently authorizes the City Manager to execute change orders to public works contracts
without City Council approval so long as the change orders do not involve increases or decreases of more
than $50,000.00 to the contract price. This provision mirrors a state law (Section 252.048(c), Texas Local
Government Code), which allows the governing body of a municipality to grant general authority to an
administrative official to execute change orders to contracts that are subject to municipal competitive
bidding requirements if the change order involves an increase or decrease of $50,000.00 or less.
However, pursuant to House Bill 628 (82nd Texas Legislature), which took effect September 1, 2011,
cities with populations of 500,000 or more now have the right to authorize administrative execution of
change orders to public works contracts for increases or decreases of up to $100,000.00. This
authorization was codified in Section 252.048(c-1), Texas Local Government Code. In order to increase
efficiency in the processing of public works change orders, Staff recommends that the City Council amend
Section 2-9 of the City Code to increase the City Manager's administrative authority to execute public
works change orders from those that involve $50,000.00 or less to those that involve $100,000.00 or less.
Because of limitations set forth in House Bill 628, this expanded authority will only apply to public works
Logname: 12CHANGE ORDER INCREASE Pagel oft
contracts for which the City first advertised or solicited bids or proposals on or after September 1, 2011.
Public works contracts advertised earlier than this will retain the current $50,000.00 administrative change
order limitation.
Upon approval and implementation of this ordinance change, public works change orders may not be
presented as frequently to the City Council for approval since multiple change orders of up to $100,000.00
will be administratively executed. Public works change orders, however, will still be subject to Section
252.048(d), Texas Local Government Code, which prohibits the increase of a contract's price by more
than 25 percent of its original amount.
This action is consistent with previous actions of the City Council, which historically has granted authority
for administrative execution of change orders up to the limits allowed by state law (from $15,000.00 to
$25,000.00 in 2001 pursuant to M&C P-9465 [Revised] and from $25,000.00 to $50,000.00 in 2011
pursuant to M&C G- 17389).
2. Emergency Procurements.
Section V.F.4 of Finance Directive 15, as authorized by Administrative Regulation C-12, currently outlines
a process by which the City Manager may authorize emergency procurements that are deemed necessary
to protect the immediate public health, safety and welfare without first having to obtain formal City Council
approval. State law exempts emergency procurements from competitive bidding requirements as well
(Sections 252.022(a), (b) and (c), Texas Local Government Code). Because Section 2-9 of the City Code
outlines the instances in which the City Manager may execute contracts without advance City Council
approval, staff recommends that the emergency procurement process outlined in Finance Directive 15
also be memorialized here.
3. Minor Organizational Changes.
In addition to the two substantive changes above, it is further recommended that the City Council approve
some organizational changes to Section 2-9. Because Section 2-9 has been amended in different ways a
number of times over the years, the current provision is somewhat difficult to follow. As a result, the
attached ordinance also renumbers and reorganizes certain sections in order to provide for clarity, without
changing any language or meaning of the affected sections.
Attachment A to this Mayor and Council Communication shows all the changes to Section 2-9 that are
made by this proposed ordinance.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Director certifies that this action will have no material effect on City funds.
FUND CENTERS:
TO Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
FROM Fund/Account/Centers
Fernando Costa (6122)
Sarah Fullenwider (8006)
Doug Black (7615)
Logname: 12CHANGE ORDER INCREASE Page 2 of 2