ORD 1256 02/26/2019ORDINANCE NO. IP -Z"16
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AN ORDINANCE REPEALING AND REPLACING ORDINANCE 724,
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
SAVINGS; AND PROVIDING FOR EFFECTIVE DATE.
WHEREAS, Article VII, Financial Procedures, of the City Charter, provides for establishing an
ordinance to authorize the City Manager to contract for expenditure without further approval of
City Council for all budgeted items not exceeding limits set within the ordinance;
WHEREAS, the City Council, approved Ordinance 724 on March 30, 2006 establishing these
purchasing procedures;
WHEREAS, it is necessary, at this time, to update the City's purchasing procedures.
NOW THEREFORE BE IT ORDAINED BY TIM CITY COUNCIL OF THE CITY OF
CIBOLO, TEXAS;
SECTION 1.
INCORPORATION
That the above and foregoing premises are true and correct and are incorporated herein and made
part hereof for all purposes.
SECTION 2.
ADOPTION
That the Procurement Policy of the City of Crbolo attached as Exhibit A is hereby adopted.
SECTION 3.
CUMULATIVE CLAUSE
That this ordinance shall be cumulative of allprovisions 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. COPY
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 of 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 jurisdiction, such
unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs or
sections of this Ordinance, since the same would have 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 and all violations
of the provisions of any Ordinances affecting the purchasing 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 not 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.
PASSED AND APPROVED by a vote of 4 for to 3 against this 26'" day of February, 2019.
APPROVED:
osh BoyleMayor
ATTEST:
Peggy Cimics, City Secretary
OF C/&
o
C
,It XJ"
Cit
of Cibolo
Division Poli /Procedure:
Finance Section
Policy Number:
2.4.01
Effective Date:
TBD
Last Revision Date:
Director Review:
Human Resources Review:
City Manager Review:
Procurement Policy
I. General Policies
It is the policy of the City of Cibolo that all purchasing shall be conducted strictly
on the basis of economic and business merit. This policy is intended to promote
the best interest of the citizens of the City of Cibolo, Texas.
It is important to remember that city purchasing operates in full view of the
public. In order to assure a transparent purchasing process and economy in
purchasing, two main principals apply: the requirement for impartiality and
fairness across all stages of the purchasing process and the necessity for
obtaining the best possible value for the funding.
The City of Cibolo intends to maintain a cost-effective purchasing system
conforming to good management practices. To be successful, the system must
be backed by proper attitudes and cooperation of not only every Department
Head and Official, but also every supervisor and employee of the City of Cibolo.
The establishment and maintenance of a good purchasing system is possible
only through cooperative effort.
The purchasing process is not instantaneous. Time is required to complete the
steps required by State Law and the City's policy. In order to accomplish timely
purchasing of products and services at the best value to the City of Cibolo, all
departments must cooperate fully. Prior planning and the timely submission of
requisitions are essential to expedite the purchasing process to assure that the
process is orderly and lawful.
Governing Authority
The primary governing authority for the City of Cibolo's Procurement Policy shall
be Local Government Code Chapter 252, Purchasing and Contracting Authority
of Municipalities. All procurement activity shall be governed by this Procurement
Policy, in accordance with applicable state and local goverment codes.
Purpose and Scope C®1 1
This Procurement Policy applies to the procurement activities
Cibolo. All procurement activities for the City shall be administered in
accordance with the provisions of this policy, with the express intent to promote
open and fair conduct in all aspects of the procurement process.
Objectives
The City has a responsibility to obtain the best value for our dollar in a fair,
efficient, and equitable manner. To achieve this objective, the Finance
Department seeks to foster as much competition as possible. In doing so, we
adopt the goal of fairness by ensuring all who wish to compete for the opportunity
to sell to the City of Cibolo can do so. Our policy is intended to:
® Give all suppliers full, fair, prompt, and courteous consideration;
® Keep competition open and fair;
® Cooperate with suppliers and consider possible difficulties they may
encounter; and
® Observe strict truthfulness and highest ethics in all transactions and
correspondence.
The Finance Department does not issue sealed bid solicitations. The department
making the purchase issues the bid solicitation and evaluates the submissions.
The Finance Department is responsible for ensuring that City departments
comply with federal, state, and local statutes regarding competitive sealed bids,
competitive sealed proposals, professional services, high technology purchases,
cooperative purchases, emergency, and sole source purchases.
The Finance Department is a functional support department and should be
included in all stages of acquisition, through planning, ordering, and receiving
for amounts exceeding department level approval. The purchase order process
provides step-by-step guidance in this respect. This is to ensure compliance with
the State of Texas competitive bid statutes and the City's procurement policy.
Recommendations to City Council
The department making the purchase, in conjunction with the Finance
Department makes a final recommendation to the IVlayor and City Council for
awarding of contracts in accordance with approved thresholds and budget.
Procurement Procedures
This Policy contains expanded explanations and processes for accomplishing the
procurement of goods and services The Finance Director maintains responsibility
for updating this Policy and the enclosed forms in accordance with applicable
statues and the City Charter.
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II. Procurement Ethics
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All employees responsible for purchasing must adhere to Procurement Ethics.
Failure to follow these policies can result in the removal of the privilege of
procuring good(s) and/or service(s), disciplinary action, and/or criminal charges.
Procurement Code of Ethics
1. The best value for price must be sought. This entails understanding all
factors that constitute "value". This may be understood as, but is not
limited to, monetary value of the agreement, product quality, and
references from contractors. More information regarding "best value" can
be found under LGC 252.043.
2. There will be a documented process for all purchases that allows for
transparency of decisions and review of purchases. The conduct of
procurement is subject to audit by the Finance Director, the City Attorney,
and/or the City's independent auditor.
3. Department Heads will ensure they are not, or are not perceived to be, in
conflict of interest with any supplier. Those Department Heads or other
City employees who have, or may be perceived to have, a vested interest
in the outcome of a purchase should disclose any conflict to the City
Manager. The City Manager will determine whether that Department Head
or employee should be excluded from any role in the purchase decision
and whether a disclosure statement must be filed.
4. Department Heads and their designees (a current list shall remain on file
with the Finance Department) who are authorized to purchase products
or services on behalf of the City will be suitably skilled and qualified as
determined by their Department Head to attend to the completion of their
purchasing role.
Prohibited Practices
Separate, sequential or component purchases - A city shall not avoid the
application of state competitive bidding or proposal laws by purposely dividing a
purchase into smaller component parts, or purchase items separately, or
sequentially, that would normally be purchased together.
Prohibited Financial Interest
City of Cibolo employees shall not have an undisclosed financial interest, direct
or indirect, in any contract with the City, nor shall they be financially interested,
directly or indirectly, in the sale to the City of any land, materials, supplies, or
service, except on behalf of the City as an officer or employee.
Any contract or transaction already in place at the time an employee becomes
subject to this provision may remain in place until the contract expires or the
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transaction is completed without creating a prohibited financial ir. t TissT2o't ty
employee. However, when these circumstances exist, the emplo
participate in any manner in the selection, awarding, monitoring, amendment,
or extension or renewal of a contract in which they have or may have a prohibited
financial interest.
A prohibited financial interest exists when any of the following individual(s) or
entities is a party to the contract:
® The employee;
® The employee's spouse, child, parent, sibling, or other family member
within the first degree of consanguinity or affinity;
® A business entity in which the employee or any of the individuals listed
above directly or indirectly owns ten (10) percent or more of the voting
stock or shares of the business entity, or ten (10) percent or more of the
fair market value of the business entity; or,
® A business entity of which any individual or entity listed in (a), (b), or (c)
above is: (1) a subcontractor on a city contract; (2) a partner; or (3) a parent
or subsidiary business entity.
Unlike with the conflicts of interests section below, when an employee has
prohibited financial interest in a City contract, there is no opportunity for
disclosure and recusal; however, the employee should advise his/her supervisor
of the prohibited financial interest.
Conflicts of Interest Disclosure
A local government officer of the City, or a city employee responsible for
purchasing decisions, shall file the required conflicts disclosure statement
authorized by the Texas Ethics Commission with respect to a vendor if:
1. The vendor enters into a contract with the City or the City is considering
entering into a contract with the vendor; and
2. The vendor:
a. Has an employment or other business relationship with the local
government officer or a family member of the local government
officer that results in the officer or family member receiving
taxable income other than investment income, that exceeds
$2,500 during the 12 -month period preceding the date that the
officer becomes aware that:
L A contract between the City and vendor has been executed;
or
ii. The City is considering entering into a contract with the
vendor; or
b. Has given to the local government officer or a family member of
the officer one or more gifts that have an aggregate value of more
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than $100 in the 12 -month period preceding the d it�'th2�al�ic2i
becomes aware that:
L A contract between the City and vendor has been executed;
or
ii. The City is considering entering into a contract with the
vendor; or
c. Has a family relationship with the local government officer.
LGC 176.003 (a-1) and (a-2) include exceptions to the disclosure requirement.
Deadline for filing the required disclosure statement is by 5pm on the seventh
day after the date the officer becomes aware of the facts that require the filing.
Requirements for the conflicts disclosure statement are included at LGC 176-
.003(e) and the attached Form CIS.
In addition to the disclosure requirements, a local government officer of the City
or a city employee responsible for purchasing decisions shall refrain from
participation in the selection, awarding, amendment, extension, or renewal of a
contract with a vendor for which he has a conflict of interest and from discussion
of the matter with any persons likely to consider the contract.
Records Management
All transactions conducted in the course of procurement of any good or service
will be fully documented in accordance with the principles of full and accurate
recordkeeping.
Sales Tax
The City of Cibolo is a tax exempt governmental agency. It will be the
responsibility of the purchaser to ensure the exempt status is understood and
the City is not charged sales tax.
Tax exempt forms may be acquired through the Finance Department.
III. General Requisition Policies
Requisitions for, or purchases of, all other goods or services require
documentation be provided to the finance department. Documentation is based
on purchase threshold. A properly completed requisition form must be
submitted to receive a purchase order. A purchase order is a legally binding
agreement issued to a vendor for the acquisition of goods or services. It should
specify unit price, quantity of an item, payment terms, delivery dates, freight,
and all other obligations and conditions related to the purchase. The purchase
order encumbers the funds from the budgeted line item.
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A. Purchases up to ,$3,000.00:
1. Do not require a Purchase Order, but a PO may be is e a
department or vendor's request. We encourage issuance of purchase
orders so that funds can be adequately encumbered.
2. May be made via regular accounts payable check process or City
procurement card, both of which requires receipt of an authorized,
properly coded invoice or receipt (see also Pcard policy).
3. Purchases of $50 or less can be made through petty cash (refer to
the petty cash policy for procedures).
B. Purchases between $3,000.01 and $'50,000.00:
1. Require a Purchase Order (PO) before the purchase is made to
ensure the availability of funds.
a. This PO must be approved and signed by the Finance Director,
or designee, and the Department Head of the department
requesting the PO. PO's over $15,000 also require the approval
and signature of the City Manager.
2. Require three (3) formal/written quotes to document competitive
selection. Written quotes must be supplied directly by the vendor,
clearly identifying the vendor's contact information, the item and the
quoted price. A verbal telephone quote does not meet this criteria.
In obtaining the quotes, department staff shall contact at least two
(2) historically underutilized businesses (HUBs), on a rotating basis,
if any exist, in Guadalupe County, based on information provided
by the Texas Comptroller. The Centralized Master Bidders List
(CMBL) /HUB directory can be found online at
https://myepa.epa.state.tx.us/tpassemblsearch/index.jsp.
3. Purchases made through an approved cooperative purchasing
program approved by City Council through Resolution are
considered exempt from the bidding requirement in accordance with
Section 271.083 of the Texas Local Government Code. For
additional information on cooperative purchasing programs, please
contact the Finance Department.
4. Typically paid via regular accounts payable process which includes
receipt of an authorized, properly coded invoice or receipt. These
purchases are not typically made by credit card, but exceptions for
online vendors may be approved by Finance. Credit card payment
does not preclude the need for a PO.
C. Purchases over $'50,000.00:
1. Require a Purchase Order (PO) before the purchase is made, or final
contract is executed.
2. Require competitive sealed bids/proposals, as required by LGC
252.021 and are not specifically exempted by LGC 252.022,
common exemptions are shown below.
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3. Purchases made through an approved cooperativ( VW&A
program are considered to be compliant with the compe i ive Dinning
requirement. For additional information on cooperative purchasing
programs, please contact the Finance Department.
4. A City may choose an alternative method of competition in selection
of construction contracts besides competitive sealed bids or
proposals. Under Texas Government Code Chapter 2269,
construction manager -agent method, construction manager -at -risk
method, design -build method and job order contract method are
also allowable.
5. Contract must be awarded to the lowest responsible bidder or to the
bidder who provides the best value for the municipality.
6. Award of a contract must be approved by City Council.
7. Typically paid via regular accounts payable process which includes
receipt of an authorized, properly coded invoice.
Payments for which a purchase order would not be required include recurring
utility costs, fuel costs, insurance costs, legal costs, travel costs, customer
refunds, emergency purchases, time -sensitive equipment repairs for which the
amount may be unknown, payments under inter -local or inter -agency
agreements, payments to other government or quasi -government entities, debt
service payments, transfers for investment, payroll liabilities or other liabilities
do not require a purchase order.
IV. Special Circumstances
Blanket Purchase orders - A blanket PO may be issued for repetitive purchases
from a particular supplier of goods or services that may include multiple orders
over a period of time or volume requirements that yield additional discounts. A
blanket PO should include the period of time (not to exceed a fiscal year), as well
as maximum quantities or amounts. The PO number should be included on all
invoices from the vendor. The Finance Department will keep the blanket
purchase order on file for monthly payments. At the end of the fiscal year, all
blanket POs will be closed.
Change Orders — To request a change to a previously issued PO, a properly
completed form must be submitted to the Finance Department which includes
the original PO number, and the reason for the change. The change will be
processed dependent on availability of funds and level of authorization required.
Contracts over $50,000, which are not exempt from competitive bidding
requirement under LGC 252.021, and are awarded by City Council cannot be
increased by more than 25%.
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Exemptions from Competitive Bidding Requirements
The Legislature exempted certain items from competitive sealed bi mg un er
LGC 252.022(a) including but not limited to:
• Procurement made because of a public calamity that requires the
immediate appropriation of money to relieve the necessity of the
municipality's residents or to preserve the property of the municipality.
® Procurement necessary to preserve or protect the public health or safety
of the municipality's residents.
® Procurement necessary because of unforeseen damage to public
machinery, equipment, or other property.
• Procurement for personal, professional or planning services;
• Procurement for work performed and paid for by the day as the work
progresses;
® Purchase of land or right-of-way;
• Procurement of items that are available from only one source;
® A public improvement project already in progress authorized by the voters
for which there is a deficiency of funds for completing the project in
accordance with the pians and purposes authorized by the voters;
® Personal property sold at an auction, by a political subdivision of this
state, a state agency of this state, or an entity of the federal government;
® Advertising, other than legal notices.
Procurement of certain professional services, including engineering services, are
covered under Government Code Chapter 2254 Subchapter A, "The Professional
Services Procurement Act". A governmental entity may not select a provider of
these professional services on the basis of competitive bids but shall make the
selection based on demonstrated competence and qualifications. Once a vendor
is selected based on competence and qualifications, the City shall negotiate a
fair and reasonable price with the selected vendor. If negotiations fail, the City
must formally end negotiations and begin negotiation with the next most
qualified vendor. These services estimated over $50,000 shall be procured
through the use of a Request for Qualification (RFQ). The Finance Department
is available to consult with departments regarding the preparation of
information. However, the presentation of technical and qualification aspects of
personal and/or professional services included in the RFQ documents is the sole
responsibility of the requesting department.
Exemption from the competitive bidding requirement does not preclude the
requirement of obtaining a PO before the purchase is made except in the case of
emergencies.
Travel
Purchase procedures for travel are identified in the City's travel policy.
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V. Payment Processin
Petty Cash
Petty Cash funds are available for making emergency or immediate minimal
purchases under $50.00. Properly authorized receipts should be submitted to
the petty cash custodian for reimbursement. See the Petty Cash Policy for
procedures.
Checks
Checks are issued from the Finance Department on a weekly basis for approved
purchases. Properly authorized invoices and requests for check reimbursement
should be made by noon on Wednesday for payment that week.
Credit (Procurement cards, credit cards or store credit)
The City of Cibolo utilizes credit as needed. Goods purchased by
credit/procurement cards or store credit continue to follow the same requisition
policies listed in Section III (determined by the amount of the purchase). Properly
authorized receipts should be submitted to Finance with their monthly
statement. Additional detailed information regarding the City's procurement
card (P -card) program is under separate policy.
Properly Authorized Invoice/Receipt
Invoices/ receipts generated from eve purchase transaction should be
completed as follows:
® Invoice/receipt should be signed and dated by the department head or
designee authorized to make the purchase.
® Invoice/receipt should include the appropriate account number to be
charged for payment, and which has adequate funds for the purchase.
® Invoice/receipt should include PO number, if applicable.
® Invoices/receipts should be provided to Finance timely for timely
payment/processing.
Purchases which did not result in a receipt or where a receipt was lost before
submitting to Finance should complete a Missing Receipt Form and submit that
form to Finance for processing.
Oast Purchases lReimbursements)
Some situations warrant that an individual purchase items with their personal
funds. These purchases should be limited. Reimbursements must follow the
same procurement policies as a pre -purchase. Reimbursements will not be
issued for purchases made without adhering to the established procurement
procedures (including POs and quotes).
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Reimbursements must follow the same procurement policies s-ano'ther
purchase. A properly authorized receipt is required for reimbursemeTHE . oun s
less than $50.00 may be reimbursed by petty cash. Petty Cash reimbursements
are not guaranteed, and cash funds may not be available at all times. A
completed Check Reimbursement Form is required for reimbursement by check.
Checks will be issued according to the Finance Department's check issuing
procedures. Reimbursement of purchases shall not be added to the employee's
pay check. Employees may be required to complete a W-9 form and a Disclosure
Form. These forms may be required each calendar year for which a
reimbursement check is distributed to an employee.
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Definitions COPY
Best Value - Under LGC 252.043, in determining best value, a municipality may
consider:
1. The purchase price;
2. The reputation of the bidder and of the bidder's goods or
services;
3. The quality of the bidder's goods or services;
4. The extent to which the goods or services meet the municipality's
needs;
5. The bidder's past relationship with the municipality;
6. The impact on the ability of the municipality to comply with laws
and rules relating to contracting with HUBs and nonprofit
organizations employing persons with disabilities;
7. The total long-term cost to the municipality to acquire the
bidder's goods or services; and
8. Any relevant criteria specifically listed in the request for bids or
proposals.
Competitive Bidding - a transparent procurement method in which bids from
competing contractors, suppliers, or vendors are invited by openly
advertising the scope, specifications, and terms and conditions of the
proposed contract as well as the criteria by which the bids will be
evaluated.
Formal/Written Quote - Binding documentation prepared by the vendor which
includes the proposed price per unit and any other terms that will be
considered such as delivery time or minimum or maximum quantities.
Good(s) - Physical items which are tangible and/or consumable. Examples
include items such as office supplies, computers, vehicles, and gasoline.
Goods do not include services or real property.
Historically Underutilized Business (HUB) - A minority or woman -owned
business as defined by Chapter 2161 of the Government Code. Vendors
can be found on the State's website:
https•//mycpa epa state tausItpasscmblsearch/index.isp
Informal Quotes - Documentation providing proof of costs for a proposed
purchase. This documentation can include a print out from a catalog or
internet pricing, an email estimate, etc.
Purchase - In the case of goods, a purchase is considered made at the time of
the order, in the case of services, a purchase is considered made at the
time of contract execution.
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Purchase Order (PO) - A signed written acceptance of an offer fro v�d-or.7i
purchase order may serve as the legal and binding agreemen e ween
parties.
Service(s) - Intangible products. Examples include products such as banking,
accounting, consulting, and medical treatment.
Single/Sole Source Purchase - only one supplier (source) is available to provide
the commodity/technology/service to the best of the requester's
knowledge. Preference for a particular brand is not considered a sole
source.
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