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ORD 1432 01/09/2024or c,A 0 v r o ORDINANCE NU 3 2. AN ORDINANCE REPEALING AND REPLACING ORDINANCE 1256, PURCHASING POLICY AND PROCEDURES OF THE CITY OF CIBOLO, GUADALUPE COUNTY, TEXAS; PROVIDING FOR INCORPORATION; PROVIDING FOR ADOPTION; PROVIDING THAT THIS ORDINANCE IS CUMULATIVE OF ALL OTHER ORDINANCES OF THE CITY OF CIBOLO NOT IN CONFLICT WITH THE PROVISIONS OF THIS ORDINANCE; PROVIDING FOR SEVERABILITY; PROVIDING FOR SAVINGS; AND PROVIDING FOR EFFECTIVE DATE. WHEREAS, Article VII, Financial Procedures, of the City Charter, provides for establishing an ordinance authorizing the City Manager to contract for expenditures without further approval of City Council for all budgeted items not exceeding limits set within the ordinance; WHEREAS, the City Council, approved Ordinance 1256 on February 26, 2019, establishing the purchasing policy and procedures of the City of Cibolo ("City"); WHEREAS, all power and authority rests with the City Council to establish policy; WHEREAS, the City Manager's role is to establish procedures consistent with City Council policy; WHEREAS, it is necessary, at this time, to distinguish policy from procedure and the City Council desires to update the procurement policy for the City and delegate to the City Manager the establishment of procedures consistent with said policy. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS: SECTION 1. INCORPORATION That the above and foregoing premises are true and correct and incorporated herein and made part hereof for all purposes. 7362/11 #293324.1 1 SECTION 2. ADOPTION That the Procurement Policy of the City of Cibolo attached as Exhibit "A" is hereby adopted. SECTION 3. CUMULATIVE CLAUSE That this ordinance shall be cumulative of all provisions of the City of Cibolo, Texas, except where the provisions of this Ordinance are in direct conflict with the provisions of such Ordinances, in which event the more restrictive provision shall apply. SECTION 4. SEVERABILITY That it is hereby declared to be the intention of the City Council of the City of Cibolo that the phrases, clauses, sentences, paragraphs, and sections in this Ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance should be declared unconstitutional by the valid judgment or decree of any court of competent jurisdictions, such unconstitutionality shall not affect any remaining phrases, clauses, sentences, paragraphs, or sections of this Ordinance, since the same would been enacted by the City Council without incorporation in this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph, or section. SECTION 5. SAVINGS That all rights and privileges of the City of Cibolo are expressly saved as to any violations of the provisions of any Ordinances affecting the procurement of goods and services, 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 be affected by this Ordinance but may be prosecuted until final disposition by the courts. SECTION 6. EFFECTIVE DATE That this Ordinance shall be. effective immediately upon the passage and approval of the City Council of the City of Cibolo, Texas, and it is so ordained. 2 7362111 11293324.1 PASSED AND APPROVED on this 9ih day of January, 2024. ATTES� > PEGGY CIMICS, City Secretary 776211111293324.1 MARK ALLEN, Mayor EXHIBIT A PROCUREMENT POLICY CITY OF CIBOLO Division Policy Finance Section Policy Number 2.4.01 Effective Date January 9 2024 Last Revision Date February 26 2019 Director Review June 11 2023 Legal Review June 11, 2023 City Manager Review July 10, 2023 I. POLICY STATEMENT The City of Cibolo, Texas shall purchase all goods and services in compliance with all applicable regulatory and statutory requirements. Procurement by the City will be guided by statutes, regulations, policy, procedures, and best practices. The City will promote competition, fairness, stewardship, and transparency in the procurement of goods and services. II. ETHICS IN PUBLIC PROCUREMENT The City Council acknowledges that public procurement dollars ultimately belong to the citizens of the City of Cibolo and the administration of these dollars is a public trust. These funds must be expended for purchases specifically related to the delivery of governmental services to the citizens, as appropriated in the budget adopted by the City Council. In addition to the Code of Ethics and Conduct found in the City's Code of Ordinances, Article Vlll, Division 1, Section 2-501 through Section 2-503, the following standards indicate the City's commitment to integrity, fair, open, and transparent procurement practices: A. EMPLOYEES. All employees involved in the procurement process must make procurement decisions in accordance with the highest standards of professionalism and to respect the values, objectives, and interests of the City. Each employee must adhere to the principles of fairness, impartiality, transparency, and stewardship; to avoid conflict of interest and any impropriety; and to respect and apply the City's relevant procurement policies, rules, and procedures in the discharge of their duties. 7362/11X293324.1 B. PERSONAL GAIN. No employee shall attempt to realize any personal gain through public employment with the City of Cibolo by any conduct inconsistent with the proper discharge of the employee's duties. C. INFLUENCE. No employee shall allow any individual or company to unduly influence the outcome of a procurement process through any conduct inconsistent with the proper discharge of the employee's duties. D. CONFLICTS OF INTEREST. Any employee involved in the procurement process must disclose any direct or indirect conflict of interest pursuant to state law and any circumstance that creates a risk that professional judgement or actions regarding the primary interest of the City will be unduly influenced by a secondary interest. E. GRATUITIES. Employees involved in the procurement process shall not offer, give, or agree to give; solicit, demand, accept, or agree to accept from another person or company, a gratuity, or an offer of employment in connection with the preparation of any part of the procurement process, any decision, approval, disapproval, recommendation, whether in the form of money, services, credits, loans, travel, entertainment, hospitality, promise, or any other form of gratuity. F. CONFIDENTIAL INFORMATION. No employee shall knowingly use confidential information for actual or anticipated personal gain, or for the actual or anticipated gain of any person or firm. HI. USE OF PROCUREMENT CARDS The City Manager or designee is authorized to develop procedures for the use of Procurement Cards (P -Cards) to establish an efficient, cost-effective method for authorized employees to make small dollar, high-volume purchases for City business use. The procedures must include internal controls to ensure P -Cards are used only for authorized purposes. Procedures must not be in conflict with this Ordinance, the City Charter, or State Law, concerning the form and substance of administrative actions necessary for the P -Card Procurement process. IV. PROCUREMENT OF MATERIALS, SUPPLIES, and EQUIPMENT; HIGH TECHNOLOGY; GENERAL SERVICES A. ADVERTISED SOLICITATIONS. Advertised solicitations on uniform specifications must be solicited for the total value of the procurement of Materials, Supplies, and Equipment; High Technology; and General Services including any renewal options pursuant to the competitive bidding/proposal requirements found in Chapter 252 of the Local Government Code. In lieu of advertised solicitations, the City may utilize all approved and awarded contract from any Purchasing Cooperative Program that the City participates in through an Interlocal Agreement. 73621119293324.1 V. B. CONTRACTS FOR MATERIALS, SUPPLIES, EQUIPMENT, and HIGH TECHNOLOGY; GENERAL SERVICES. The City Council's approval is required for expenditures greater than the competitive bidding/proposal limits and may take into consideration the location of the bidder's principal place of business when, and to the extent, allowable by law. PROCUREMENT OF PROFESSIONAL and CONSULTING SERVICES A. PROCUREMENT OF ARCHITECT, ENGINEER, OR SURVEYING 1. This subsection applies to the following services pursuant to Section 2254.004 of the Texas Government Code: a. architecture; b. professional engineering; or c. land surveying. 2. When procuring the above services, or when a portion of the project includes these services, the City shall comply with Section 2254.004 of the Texas Government Code which requires the City to (i) first select the most highly qualified provider of these services on the basis of demonstrated competence and qualifications, and (ii) then attempt to negotiate with that provider a contract for a fair and reasonable price. 3. Professional Services Agreements greater than competitive bidding/proposal limits found in Chapter 252 of the Local Government Code must be approved by the City Council. 4. All Master Professional Services Agreements must be approved by the City Council. Individual Work Orders issued under a Master Professional Services Agreement must be approved by the City Council if they exceed competitive bidding/proposal limits found in Chapter 252 of the Local Government Code. B. PROCUREMENT OF LEGAL SERVICES. Pursuant to Section 1201.027 of the Government Code, the selection of Bond Counsel shall be made in accordance with the same requirements as that of an engineer (Government Code Section 2254.004). The City may, but is not required to, use Request for Proposals (RFP) for the selection of all other legal services. All professional legal services shall be approved in compliance with City Charter. C. PROCUREMENT FOR ALL OTHER PROFESSIONAL AND CONSULTING SERVICES 1. This subsection C. shall apply to those services which are mainly mental or intellectual rather than physical or manual; including, but not limited to: a. accounting; f. real estate appraising; b. landscape architecture; g. professional nursing; or c. land surveying; h. forensic science; or d. medicine; i. engaged in interior design. e. optometry; 7362/11 8293324.1 2. This subsection does not apply to legal services, architects, engineers, or surveyors. 3. Procurement of all other professional or consulting services shall be awarded pursuant to Texas Gov't Code Section 2254.003 and as follows: a. the selection shall be made on the basis of demonstrated competence and qualifications to perform the services, and for a fair and reasonable price; b. the selection may not be based on competitive bids; c. fees for professional services may not exceed any maximums provided by law; d. Professional Services Agreements greater than competitive bidding/proposal limits found in Chapter 252 of the Local Government Code must be approved by the City Council; and, e. all Master Professional Services Agreements must be approved by the City Council. Individual Work Orders issued under a Master Professional Services Agreement must be approved by the City Council if they exceed competitive bidding/proposal limits found in Chapter 252 of the Local Government Code. VI. PROCUREMENT OF CONSTRUCTION SERVICES. Procurement of construction services must comply with the competitive bidding/proposal requirements found in Chapter 252 of the Local Government Code or an alternative procurement method in Chapter 2269 of the Texas Government Code. The City Council shall approve expenditures greater than the competitive bidding/proposal limits. These contracts are also subject to statutory bonding requirements pursuant to Chapter 2253 of the Texas Government Code and prevailing wage rates for each craft or type of worker in the locality in which the construction project is to be performed. VII. EXEMPTIONS FROM COMPETITIVE, PROCUREMENT The City Manager or designee is authorized to establish procedures for the approval of expenditures that are exempt for competitive bidding/proposals pursuant to Chapter 252, Section 252.022 of the Local Government Code, and this Ordinance. However, any expenditure of funds greater than the competitive bidding/proposal limits found in Chapter 252 of the Local Government Code must be presented to City Council for approval. In the case of an emergency or public calamity that requires the immediate appropriation of funds greater than the competitive bidding/proposal limits to relieve the necessity of the City's residents or to preserve the property of the City or to preserve or protect the public health or safety of the City's residents and must be ratified by City Council at the next scheduled City Council meeting. VIII. DELEGATION OF AUTHORITY A. CONTRACTS. The City Council delegates approval authority to the City Manager to approve and execute a contract for which the amount does not exceed competitive bidding/proposal limits found in Chapter 252 of the Local Government 7362/11 /1293324.1 Code, provided that all such contracts and expenditures are contemplated within the City's annual budget, are in compliance with the City's fiscal and budgetary policy, and is not otherwise required to be approved by the City Council. B. CHANGE ORDERS OR AMENDMENTS. The City Council delegates approval authority under Texas Local Gov't Code Section 252.048 to the City Manager to approve and execute a change order or amendment to a contract that modifies the scope of services or increases or decreases the contract price, provided that all such change or amendments orders are: a. contemplated within the City's annual budget; and b. are contemplated within the City's fiscal and budgetary policy; and c. do not result in the contract exceeding minimum thresholds for competitive procurement; and d. is not otherwise required to be approved by the City Council; c. do not involve an increase or decrease exceeding $50,000; and f. do not increase or decrease the original contract price by more than twenty-five percent (25%). C. CONTRACT RE, NEWALS. The City Manager is authorized to approve and execute all contract renewals for which the original contract was approved by City Council and the renewal price does not increase the original contract by more than twenty-five (25%) percent, or $50,000. Contract renewals under this subsection must be contemplated in the City's annual budget. D. ALTERNATIVE PROCUREMENT METHODS FOR CONSTRUCTION SERVICES. The City Council delegates authority to City Manager to consider and select an alternative procurement method other than competitive sealed bidding pursuant to, and in compliance with, Chapter 2269 of the Texas Government Code. E. NON -LEGAL PROFESSIONAL AND CONSULTING SERVICES. The City Council delegates limited authority under Section 2254 of the Texas Government Code to the City Manager to procure professional services as that term is defined in Section V. (A.) and (C) above. The City Manager shall adhere to requirements in Texas Gov't Code Section 2254 and shall develop written procedures to ensure compliance. This delegated authority is limited to contracts with are: a. contemplated within the City's annual budget; b. are contemplated within the City'•s fiscal and budgetary policy; c. are less than the competitive bidding/proposal limits found in Chapter 252 of the Local Government Code; and d. are not otherwise required to be approved by the City Council. F. INFORMAL PROCUREMENT PROCEDURES. The City Manager or designee shall make written rules and procedures for expenditures less than the competitive bidding/proposal limits, which are not in conflict with this Ordinance, the City Charter, or State Law, concerning the form and substance of administrative actions necessary for the procurement process regardless of whether the procurement requires compliance with state competitive procurement laws. Such rules and procedures shall ensure the informal procurement provides the best value 7762/11 11297324.1 for the City. The City Manager is authorized to establish procedures for the approval of expenditures that are exempt for competitive bidding/proposals pursuant to Chapter 252, Section 252.022 of the Local Government Code. When applicable, the City must adhere to the requirements for competitive bidding in relation to historically underutilized businesses found in Section 252.0215 of the Local Government Code. IX. DISPOSAL OF SURPLUS PROPERTY This policy applies to all tangible surplus or salvage supplies including motor vehicles, machinery, computer equipment, furniture, and other materials and items. A. METHODS OF DISPOSAL. Following are the approved methods of disposal of surplus for personal property: I. Transfer to another City department. Surplus property may be transferred between City departments if there is a need or use for the surplus property. 2. Trade-in. Vehicles and equipment may be traded in for fair market value on the purchase of replacement units. 3. Public sale. Surplus property may be, disposed of by competitive bids, live auction, or online auction. 4. Sale or trade to another governmental agency via interlocal agreement or bill of sale. 5. Sale or trade to a charity that has: a predominantly public purpose; has demonstrable controls to ensure public purpose is carried out; and, the City receives a return benefit. 6. Cannibalize. Property may be disassembled and used for parts. 7. Obsolete, broken, or damaged property with no useful value maybe discarded. B. RECORDS. The Department disposing of surplus property over the capitalization threshold shall notify the Finance Department of the transfer, sale, or disposal of any item. This shall be coordinated to update City records (i.e. capital improvement documents, insurance records, audit lists and grant requirement documentation). C. BUDGETED REPLACEMENT VEHICLES and EQUIPMENT. Vehicles and equipment scheduled for replacement in the current budget must be disposed of in accordance with this section once the replacement units have been received by City staff. D. PROCEEDS FROMTHE SALE OFSURPLUS. Any revenue received pursuant to the disposal of surplus property shall be deposited as revenue in the fund that originally purchased the equipment. 7362/11 H293324.1