HomeMy WebLinkAboutOrdinance 25533-06-2022 ORDINANCE NO. 25533-06-2022
AN ORDINANCE AMENDING CHAPTER 2 (ADMINISTRATION),
ARTICLE 1 (IN GENERAL,) OF THE CODE OF THE CITY OF FORT
WORTH(2015),AS AMENDED,BY REVISING SECTION 2-14,RELATING
TO LOCAL CONTRACTING PREFERENCES, TO MIRROR STATE LAW
IN REGARD TO LOCAL PREFERENCE IN LOW BID PROCUREMENTS
AND TO PROVIDE FOR THE POSSIBILITY OF A LOCAL PREFERENCE
IN BEST VALUE PROCUREMENTS; PROVIDING THAT THIS
ORDINANCE SHALL BE CUMULATIVE OF ALL PRIOR ORDINANCES
AND REPEAL CONFLICTING ORDINANCES; PROVIDING FOR A
SEVERABILITY CLAUSE; PROVIDING FOR A SAVINGS CLAUSE, AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Fort Worth ("City") is a home-rule municipality acting under its
Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and
Chapter 9 of the Local Government Code; and
WHEREAS,Sections 271.905 and 271.9051 of the Texas Local Government Code allow
for use of local contracting preferences in low-bid procurements 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, Section 252.043 of the Texas Local Government Code allows the City to
award to the bidder who provides goods or services at the best value for the City and, in
determining best value,to consider any relevant criteria specifically listed in the request for bids;
and
WHEREAS, the City Council finds that awarding more contracts to local businesses can
provide additional value to the City in the form of increased local capacity that allows the City to:
(1) maintain and expand 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 can
be a relevant best-value criterion in encouraging local business capacity, and employment
opportunities and increasing the tax base;
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS THAT:
Ordinance No. 25533-06-2022
Page 1 of 4
SECTION 1.
Chapter 2, "Administration," Article I, "In General," Section 2-14 "Procedures For
Granting Local Preferences in Purchasing and Contracting for Certain Personal Property and
Services" of the Code of the City of Fort Worth (2015), as amended, is hereby revised to retitle
subsection (b) and (c), add new subsections (d) and (e), to re-designate current subsection (d) as
subsection (f) and amend same and to re-designate current subsection (e) as subsection (g), with
such revisions to read as follows:
§ 2-14 PROCEDURES FOR GRANTING LOCAL PREFERENCES IN
PURCHASING AND CONTRACTING FOR CERTAIN PERSONAL PROPERTY
AND SERVICES.
(b) Contracts for personal property or services in an amount greater than$50,000 and
less than $500,000 using lowest responsible bidder criteria.
(c) Contracts for personal property) in an amount equal to or greater than $500,000
using lowest responsible bidder criteria.
(d) Contracts for construction services in an amount between$50 000 and$99 999.99
using loivest responsible bidder criteria. In purchasing any construction 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 in an amount greater than fifty
thousand dollars ($50,000.00)but less than ninety-nine thousand nine hundred ninety-nine
dollars and ninety-nine cents ($99,999.99)with:
(1) the lowest responsible bidder; or
(2) a responsible bidder that is a local business as defined herein provided the City
Council determines that awarding to the local bidder offers the city the best
combination of contract price and economic development opportunities.
(e) Contracts for services, construction services, or personal property procured using
the best value criteria. The City finds that awarding more contracts to local businesses can
provide additional value to the City in the form of increased local capacity that allows the
City to: 1)maintain and expand an able and competitive pool of businesses from which to
procure goods and services; (2) improve employmentpportunities for City residents; and
(3) increase tax revenues to the City. Therefore,when procuring any services construction
services, or personal property that is not affixed to real property, in determining the best
Ordinance No. 25533-06-2022
Page 2 of 4
value for the City, the City consider, in addition to other relevant criteria as may be
determined by the Cites
The bidder's principal place of business, if specifically included in the request for
bids or proposals.
Ed) (�f Exceptions.
(a) Personal property that is not affixed to real property or services that are
not acquired pursuant to Tex. Local Government Code Title 8; or
(b) Professional services_
(€)� Rejection of all bids. This section does not prohibit the city from rejecting all bids.
SECTION 2.
This ordinance shall be cumulative of all provisions of ordinances and of the Code of the
City of Fort Worth, Texas (2015), 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.
All rights and remedies of the City of Fort Worth, Texas, are expressly saved as to any and
all violations of the City Code, or any amendments thereto that 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 4.
It is hereby declared to be the intention of the City Council that the sections, paragraphs,
sentences, clauses and phrases of these ordinances are severable, and if any phrase, clause,
sentence, paragraph or section of this ordinance is declared void, ineffective, or unconstitutional
by the valid judgment or decree of any court of competent jurisdiction, such voidness,
ineffectiveness, or unconstitutionality will not affect any of the remaining phrases, clauses,
sentences, paragraphs, or sections of this ordinance, because the same would have been enacted
by the City Council without the incorporation herein of any such void, ineffective, or
unconstitutional phrase, clause, sentence, paragraph, or section.
Ordinance No. 25533-06-2022
Page 3 of 4
SECTION 5.
All ordinances for which provisions have been made are hereby expressly repealed if in
conflict with the provisions of this ordinance.
SECTION 6.
This ordinance takes effect after adoption.
APPROVED AS TO FORM AND LEGALITY: ATTEST:
ette&GoodalI(Jul 6,202210:2 T)
Taylor Paris Jannette S. Goodall, City Secretary
Assistant City Attorney
of FOR
ADOPTED: June 14,2022
%
EFFECTIVE: June 14,2022
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Ordinance No. 25533-06-2022
Page 4 of 4
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/14/22 M&C FILE NUMBER: M&C 22-0439
LOG NAME: 13LOCAL PREFERENCE AMEND
SUBJECT
(ALL)Adopt an Ordinance Amending Chapter 2,Administration,Article I"In General",Section 2-14 of the City Code to Expand the Use of Local
Preference in Lowest-Responsible Bidder Purchasing and Contracting to Follow State Law and to Allow Departments to Consider Local
Preference when Awarding a Contract for Services using Best Value
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance amending Chapter 2,Administration,Article I"In General'of the City Code,
Section 2-14 to expand the use of Local Preference in lowest-responsible bidder purchasing and contracting to follow State Law and to allow
departments to consider local preference when awarding a contract for services using best value.
DISCUSSION:
During the summer of 2021,the City Council requested information regarding Local Preference and how the City uses Local Preference when
awarding procurements for goods and services,including capital improvements.
Texas Local Government Code Chapter 271 allows the City to consider the location of a bidder's principal place of business when awarding
contracts for goods and services on the basis of lowest-responsible bidder. Local Preference allows the City to consider a bid from a bidder
whose principal place of business is in the City and whose bid is within the 3%-5%(see chart below)of the lowest bid price received by the City
from a bidder who is not a resident of the City. State Law establishes criteria of when Local Preference can apply based on the amount and type of
contract amount.
When Local Preference was adopted in the City in 2013,the City Council adopted Local Preference based upon State Law for lowest-responsible
bidder procurements with one change shown in the chart below.
Contract Goods and Real Services(No
Amount Property Professional) Construction
$50,000 or less No Preference No Preference No Preference
5%Preference(State
$50,000.01- Law)
$99 999 99 5%Preference 5% Preference
City Council adopted
"No Preference"
$100,000- ]5%Preference ��5% Preference No Preference
$499,999.99
$500,000 or 3% Preference FNoPreference No Preference _�
more
After the Informal Report was presented to Council last fall,the City Manager's Office and the Departments that manage construction projects met
to explore whether Local Preference for lowest-responsible bidder procurements should be expanded for construction projects between$50,000-
$100,000.00 and for Best Value procurements.
After the discussions,Staff recommends revising the local preference ordinance to follow State Law for lowest responsible bidder procurements
as outlined above and allow a local preference to be used for a construction contract with a value of between$50,000.01 and$99,999.99 if the
local vendor's bid is within 5%of the lowest bid.
In addition, because awarding more contracts to local businesses can provide additional value to the City in the form of increased local capacity
that allows the City to: (1)maintain and expand 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 teh City.Staff recommends adopting the attached ordinance that will
allow City Departments to consider Local Preference when awarding a contract for goods or services using Best Value when appropriate.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that approval of this recommendation will have no material effect on City funds.
Submitted for City Manager's Office W. Reginald Zeno 8517
Originating Business Unit Head: Anthony Rousseau 8338
Additional Information Contact: Cynthia Garcia 8525