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HomeMy WebLinkAboutOrdinance 19010-01-2010ORDINANCE NUMBER 19010-01 2010 AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT WORTH, TEXAS (1986), CHAPTER 2, "ADMINISTRATION," ARTICLE I, "IN GENERAL," SECTION 2- 9, "CONTRACT EXECUTION AND CHANGE ORDERS," TO INCREASE THE THRESHOLD AMOUNT OF THE CITY MANAGER'S CONTRACTING AUTHORITY FROM $25,000.00 TO $50,000.00, PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES, PROVIDING A SEVERABILITY CLAUSE, PROVIDING A SAVINGS CLAUSE, AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS SECTION 1 Chapter 2 Administration, Article I yIn General, Section 2-9 `Contract Execution and Change Orders, of the Code of the City of Fort Worth, Texas (1986), as amended, is hereby amended as follows. The Title of Section 2 9 is amended to read. Contract Execution, amendments, change orders. Section 2 9(c) is amended to read. Any contract involving an expenditure of fifty thousand dollars ($50 000 00) or less of city funds may be executed by the city manager without city council approval, provided that sufficient funds have previously been appropriated by the city council. Section 2 9(d) is amended to read. 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. Provided further that the city manager may approve the following without city council approval (4) Temporary and permanent easements granted to the city and valued at less than fifty thousand dollars ($50 000 00) (6) Any amendment to a contract or an amendment to a purchase order 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 public works contracts. SECTION 2. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are m direct conflict with the provisions of such ordinances and such Code, m 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 unconstitutional by the valid judgment or decree of any court of competent ~unsdiction, such 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 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 m 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 rt is so ordained. APPROVED TO FORM AND LEGALITY B~ Assist nt City Attorney M&C G 16820 ADOPTED AND EFFECTNE January 26, 2010 City of Fort Worth, Texas Mayor and Council Communication RECOMMENDATION It is recommended that the City Council 1 Adopt the attached ordinance amending Article I Section 2-9 of the Fort Worth City Code to increase the threshold amount of the City Manager's contracting authority from $25 000 00 to $50 000 00 and 2 Authorize the City Manager to approve the following without City Council approval (a) contracts, contract amendments and purchase agreements in an amount not exceeding $50 000 00 (b) leases of real property for 30 days or less in an amount not exceeding $50 000 00 and (c) temporary or permanent easements granted to the City if valued at $50 000 00 or less. DISCUSSION In September 2001 the State Legislature increased the formal bid threshold amount from $15 000 00 to $25 000 00 On October 9 2001 (M&C P-9465 Revised) the City Council increased the approval authority of the City Manager by the same dollar amounts In September 2007 the State Legislature again raised the dollar threshold for formal bidding from $25 000 00 to $50 000 00 To increase efficiency in processing contracts and purchase agreements staff recommends that the City Council increase the City Manager's contracting authority from $25 000 00 to $50 000 00 to be consistent with State law Approval of this action will increase the amount the City Manager has authority to contract without City Council approval for contracts purchase agreements, certain leases easements and contract amendments. The threshold increase will not apply to change orders for construction contracts because State law limits the amount of an administrative change order to $25 000 00 City Staff considered requesting this increase in October 2007 and concluded that it would be prudent to delay this request until the City's Comprehensive Annual Financial Reports (CAFR) were up to date Staff evaluated the actions of other cities as well as the impacts that the policy change would have on day-to- day operations The City is now current on its CAFRs thereby providing a more appropriate environment to submit this request. The actions of other cities on this threshold and the impacts of this change were presented to the City Council on November 3 2009 via PowerPoint presentation during the Pre-Council meeting This M&C is in response to support expressed by the City Council on November 3 2009 to increase the threshold amount from $25 000 00 to $50 000 00 The effective date will be February 1 2010 Adoption of the attached ordinance will authorize staff to implement the changes necessary to take advantage of the opportunities offered by the legislation Logname. 13P09RAISING Page 1 of 2 FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that this action will have no material effect on City funds. FUND CENTERS TO Fund/Account/Centers FROM Fund/Account/Centers CERTIFICATIONS Submitted for City Manager's Office b~ Karen Montgomery (6222) Originating_Department Head Lena Ellis (8517) Additional Information Contact: Jack Dale (8357) Logname• 13P09RAISING Page 2 of 2