HomeMy WebLinkAboutOrdinance 20645-03-2013 ORDINANCE NO. 20645-03-2013
AN ORDINANCE AMENDING CHAPTER 2 (ADMINISTRATION),
ARTICLE I (IN GENERAL) OF THE CODE OF THE CITY OF FORT
WORTH, TEXAS (1986), AS AMENDED, BY ADDING SECTION 2-14,
RELATING TO LOCAL CONTRACTING PREFERENCES; PROVIDING
THAT THIS ORDINANCE SHALL BE CUMULATIVE; PROVIDING FOR
A SEVERNBILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Sections 271.905 and 271.9051 of the Texas Local Government Code allow
for use of local contracting preferences provided that the local bidder submits a bid within a
specified percentage of the lowest bid and offers the best combination of contract price and
additional economic development opportunities, including the employment of city residents and
increased tax revenues to the city; and
WHEREAS, the City Council wishes to use the city spending powers in a manner that
promotes fiscal responsibility and maximizes the effectiveness of local tax dollars by ensuring a
portion of resident's tax dollars remain in the local economy for the economic benefit of the
residents; and
WHEREAS, the City Council finds that by encouraging local business capacity, the city
will 1) maintain an able and competitive pool of businesses from which to procure goods and
services, 2) improve employment opportunities for city residents, and 3) increase tax revenues to
the city; and
WHEREAS, the City Council finds that the principal place of business of a business is a
relevant criterion in encouraging local business capacity, and employment opportunities and
increasing the tax base; and
WHEREAS, the City Council finds that sections 271.905 and 2719051 of the Texas
Local Government Code allow the city to consider a vendor's principal place of business in
awarding certain contracts; and
WHEREAS, the City Council finds that there is no definition of "principal place of
business" in the statutes of the State of Texas; therefore, the city adopts its own definition herein;
and
WHEREAS, the City Council desires to create a mechanism to utilize sections 271.905
and 271.9051 of the Texas Local Government Code to provide a contracting preference for local
businesses;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
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Section 1.
Chapter 2 (Administration), Article I (In General) of the City of Fort Worth Code of
Ordinances, is hereby amended by adding section 2-14 to read as follows:
See. 2-14. Procedures for Granting Local Preference in Purchasing and
Contracting for Certain Personal Property and Services.
(a) Definitions. The words and phrases defined in this section have the
following meanings:
(1) Local business means a business with a principal place of business
within the corporate limits of the City of Fort Worth.
(2) Principal place of business means a facility that is fully operational
and has sufficient equipment, supplies, and personnel to provide
the product or service of the business in question to clients in the
city without significant reliance on the resources of another entity
or affiliate or of an auxiliary facility of the business which is
located outside the corporate limits of the city.
A location utilized solely as a post office box, mail drop or
telephone message center, or any combination thereof, with no
other substantial function, shall not be construed as a principal
place of business.
(b) Contracts for personal property or services in an amount greater than fifty
thousand dollars ($50,000.00) and less than five hundred thousand dollars
($500,000.00). In purchasing any personal property that is not affixed to
real property or services, if the city receives one or more competitive bids
from a bidder that is a local business and whose bid is within five percent
(5%) of the lowest bid price received by the city from a bidder that is not a
local business, the city may enter into a contract for an amount greater
than fifty thousand dollars ($50,000.00) but less than five hundred
thousand dollars ($500,000.00) with:
(1) the lowest bidder; or
(2) the bidder that is a local business as defined herein, provided the
City Council determines, in writing, that awarding to the local
bidder offers the city the best combination of contract price and
economic development opportunities.
(c) Contracts for personal property in an amount equal to or greater than five
hundred thousand dollars ($500,000.00). In purchasing any personal
property that is not affixed to real property, if the city receives one or
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more competitive bids from a bidder that is a local business and whose bid
is within three percent (3%) of the lowest bid price received by the city
from a bidder that is not a local business, the city may enter into a contract
for an amount equal to or greater than five hundred thousand dollars
($500,000.00) with:
(1) the lowest bidder; or
(2) the bidder that is a local business as defined herein, provided the
City Council determines, in writing, that awarding to the local
bidder offers the city the best combination of contract price and
economic development opportunities.
(d) Exceptions.
(1) This Section 2-14 does not apply to the acquisition of:
i. personal property that is not affixed to real property or
services that are not acquired pursuant to Title 8 of the
Texas Local Government Code,
ii professional services, or
iii construction services.
(2) Unless specifically allowed by federal law, this Section 2-14 does
not apply to any contract in which the federal government
participates in the form of a grant or loan, or the city acts as a
conduit for federal money.
(3) Section 2-14(b) herein does not apply to the purchase of
telecommunications services or information services, as those
terms are defined by 47 U.S.C. Section 153.
(e) This section does not prohibit the city from rejecting all bids.
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,
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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 affect 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.
All rights and remedies of the City of Fort Worth, Texas, are expressly saved as to any
and all violations of the provisions of the Code of Fort Worth which have accrued 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 5.
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:
Charlene Sanders, Assistant City Attorney
Adopted: March 5, 2013
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City of Fort Worth, Texas
Mayor and Council Communication
ANKINIVANHAV9010
COUNCIL ACTION.- Approved on 3/5/2013 - Ordinance No. 20645-01.2013,
DATE: Tuesday, March 05, 2013 REFERENCE NO.: G-17826
LOG NAME: 13PBUYLOCAL
SUBJECT:
Adopt Ordinance Amending Chapter 2 of the City Code, Administration, Article 1, In General, Allowing the
Consideration of the Location of a Bidder's Principal Place of Business in City Procurements (ALL
COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance amending Chapter 2 of the City
Code, Administration, Article 1, In General, authorizing the consideration of a bidder's principal place of
business in City procurements.
DISCUSSION:
Texas Local Government Code (TLGC) Chapter 271 allows municipalities, in certain circumstances, to
consider the location of a bidder's principal place of business. These provisions of the TLGC are
commonly known as "local preference". Adoption of the attached ordinance will allow the City to utilize
these statutory exceptions to the competitive sealed bid procedure. The ordinance also defines a local
business as a business with its principal place of business within the corporate limits of the City of Fort
Worth. The TLGC does not define principal place of business; therefore, the ordinance defines this term.
This ordinance will allow the City Council to award contracts to local businesses whose bids are within
statutory percentages of non-local low bidders, if the award presents the best combination of contract
price and economic opportunities. Supporting local businesses in this manner may retain, as well as
expand, Fort Worth businesses, local jobs and tax revenues to the City.
The following table lists the thresholds and preference percentages outlined in the proposed ordinance.
I I Construction
iContract Amount Personal Property IServices Services
Not!
$0.00--$50,000.00 Not recommended ;Nat Not recommended
15 percent
i$50,000.01--less than 5 percent I
I
1$100,000.00 preference !preference Not recommended
$100,000.00--less than 5 percent 5 percent Does not apply
$500,000.00 preference 1preference
3 percent Does not apply �Does not apply
$500,000.00 and higher 'Ply
preference
The City Council was briefed on this ordinance on January 29, 2013. A draft of this ordinance was also
discussed with the local chambers of commerce and Staff received positive feedback from these
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organizations.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
FUND CENTERS:
TO Fu nd/Accou nt/C enters FROM Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Horatio Porter (2379)
Additional Information Contact: Jack Dale (8357)
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