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Item 4F Memo Item 4F Page 1 of 4 M E M O R A N D U M (February 5, 2019) To: Shana Yelverton, City Manager From: Rob Cohen, Director of Public Works Subject: Authorize expenditures with Wachs Water Services (Wachs), a Division of Pure Technologies U.S., Inc. for the annual Water Valve Assessment Program and for leak detection services in an amount not to exceed $100,000 Action Requested: Authorize expenditures with Wachs Water Services (Wachs), a Division of Pure Technologies U.S., Inc. for the annual Water Valve Assessment Program and for leak detection services in an amount not to exceed $100,000. Background Information: Since FY 2017, the City has contracted with Wachs, a Division of Pure Technologies U.S., Inc. to perform an annual Water Valve Assessment Program. The purpose of assessing the condition of City water valves is for emergency preparedness to ensure their proper operation in the event of possible crisis. Being able to quickly locate and operate water valves allows Public Works to isolate and shut off the flow of water in a particular pipe segment that may otherwise cause flooding and property damage during emergency. The program is a comprehensive endeavor that confirms valve and hydrant location as compared to the City’s GIS database, operability and leak assessment. In addition, a preliminary leak survey is performed at each valve to minimize water loss. The City of Southlake has over 7,350 water valves of which 4,510 are in-line water valves. The City also has approximately 3,000 fire hydrants in the water distribution system. The FY 2019 Water Valve Assessment Program will be completed in two phases targeting the Raintree Drive and Shady Lane area (Area #1), as recommended per the 2017 Water Quality Evaluation. Item 4F Page 2 of 4 The first phase will include the evaluation of 300 valves prior to beginning Phase 2 – unidirectional flushing in Area #1. The purpose of assessing the condition of City water valves is to validate operational functionality and correct any deficiencies prior to commencement of flushing. Phase 2 – unidirectional flushing, will consist of strategically closing valves and flushing specific fire hydrants to create friction between the water and interior of the water line. This friction helps to improve water quality. Financial Considerations: To date in FY 2019, $42,000 have been encumbered for Phase 1 of the Water Valve Assessment Program and leak detection services to help assess and locate the leak at the Alta Vista water transmission main. Both services were authorized by the City Manager’s Office per the Local Government Code (LGC) Chapter 252, Section 252.022 (highlighted in Attachment E). With the addition of Phase 2 of the Water Valve Assessment Program, expenditures with Wachs exceed the threshold in purchasing and require Council authorization. The table below itemizes services performed by Wachs in FY 2019. FY 2019 Expenditures – Wachs Water Services Cost Water Valve Assessment Program – Phase 1 $ 22,500 Leak detection services using correlators of 30- inch water transmission main leak @ Alta Vista $ 3,000 Leak detection services using sonar technology of the 30-inch water transmission main leak @ Alta Vista $ 16,500 Total-to-date $ 42,000 Water Valve Assessment Program – Phase 2 $ 27,350 Contingency for Emergency Repairs $ 30,650 Total Expected Expenditures $100,000 Item 4F Page 3 of 4 The City also requires the services of Wachs for leak detection services on emergency repairs such as the shared Southlake and Keller 36”/30” Alta Vista water transmission main. Wachs has technology that allows for pinpointing leaks. In cases of emergency repairs, like the Alta Vista leak, that requires immediate action to resolve, Wachs can assist in expediting said repairs on critical infrastructure. Therefore, Staff is seeking authorization of future expenditures up to $100,000 for the remainder of the year, should there be another emergency repair that requires leak detection services that can be performed by Wachs. Funding for these professional services is budgeted in the FY 2019 Public Works Water Division Operating Budget. Strategic Link: This item relates to the City’s strategy map focus areas of Safety & Security and Infrastructure. It specifically relates to the City’s Corporate Objectives of (C1) achieve the highest standards of safety & security and (F2) invest to provide & maintain high quality public assets. Citizen Input/ Board Review: N/A Legal Review: N/A Alternatives: The City Council may authorize or deny this contract. Supporting Documents: Attachment A – Executed Proposal for Valve Assessment Prior to Unidirectional / Conventional Flushing Program (Phase II) Attachment B – Proposal for Phase II – Unidirectional / Conventional Flushing Attachment C – Proposal for Leak Detection Services using Correlators Attachment D – Proposal for Leak Detection Services using Sahara Technology Attachment E – Local Government Code Chapter 252, Section 252.022 Item 4F Page 4 of 4 Staff Recommendation: Authorize expenditures with Wachs Water Services (Wachs), a Division of Pure Technologies U.S., Inc. for the annual Water Valve Assessment Program and for leak detection services in an amount not to exceed $100,000. Staff Contact: Rob Cohen, Director of Public Works Cristina McMurray, M.P.A, C.P.M, Deputy Director of Public Works Wachs Water Services | 8920 State Route 108, Suite D | Columbia, MD USA 21045 | Tel: +1 (800) 525-5821 wachsws.com October 14, 2018 Kyle Flanagan City of Southlake 1950 E. Continental Southlake, TX 76092 Subject: Phase II - Unidirectional / Conventional Flushing Following Valve Assessments Kyle, The City of Southlake, TX is experiencing water quality / water aging issues in three distinct regions of the City’s Water Distribution System. Specifically, the areas that are impacted are: 1.Raintree & Shady Lane 2.Southridge Lakes & Shady Oaks 3.Northeast To remedy this situation, a Unidirectional Flushing (UDF) / Conventional Flushing Program is proposed to turn the areas’ water over and improve the aged water condition. As you requested, Wachs Water Services (WACHS) is pleased to submit our proposal to the City of Southlake (CLIENT) for unidirectional / conventional flushing services following valve assessments in the CLIENT’s distribution system. We believe that our experience performing similar services successfully in more than 300 utilities, uniquely qualifies the Wachs Water Services team as the most experienced and the right choice to deliver these important services to the CLIENT. Wachs Water Services submits the following information regarding our company: Company Name: Pure Technologies US Inc. dba Wachs Water Services Company Tax ID No: 86-0853190 Local Address: 8708 South Congress, Suite A-150, Austin, TX Wachs Water Services stands ready to perform the services outlined in Attachment B. We are confident that we will deliver the successful completion of the work and we want to thank you for the opportunity to submit our proposal on this very important project, and we look forward to a favorable decision on behalf of Wachs Water Services . The pricing breakdown is outlined in Attachment A. We look forward to providing our valve assessments and unidirectional flushing services. Please advise if you have any questions regarding this proposal and scope. Sincerely, W. Clayton Coe Business Development Manager 972.795.2572 clayton.coe@xyleminc.com ATTACHMENT A - PRICING VALVE ASSESSMENTS, AND UDF EXECUTION SERVICES 2 Attachment A – Pricing Scope of Work Quantity Unit Price Total Mobilization 1 Included in Unit Pricing Flushing Sequences 79 $250 $19,750 Flushing Sequences Design 1 $7,600 $7,600 Total $27,350 ATTACHMENT B - SCOPE OF SERVICES VALVE ASSESSMENTS, AND UDF EXECUTION SERVICES 3 Attachment B – Scope of Services GENERAL Program Description Wachs Water Services desires to initiate this professional services agreement for the execution of a UDF / Conventional Flushing Services Program following Valve Assessments which serves three primary purposes:  To evaluate and improve the operability of valves in the water distribution system through hands on field activities.  To document, integrate and analyze location, operational and physical information of valves in the water distribution system through professional services activities.  To provide UDF / Conventional Flushing sequence planning and execution services utilizing Wachs Water Services designed sequences . This program will execute 79 pre-planned sequences following assess ment of approximately 300 assets in the CLIENT’s distribution system (in the areas previously identified) WACHS will analyze the results of the program and deliver a summary and final asset report to the CLIENT. The results of this program wil l be used to evaluate the value of a system wide program. SPECIFIC FUNCTIONS OF WACHS WATER SERVICES Access Valves The valve cover shall be removed by WACHS in order to access the valve. If, after attempting to remove the valve cover, it is clear that the cover is “stuck” the cover will be broken, the valve accessed and the cover replaced. Covers will be provided by the CLIENT. Access Hydrants It is assumed that WACHS will access and operate all applicable hydrants to fulfill the planned sequences . Operational Testing WACHS will be required to operate all valve assets – fully exercising them while making numerous observations about the condition, operability and functionality of each asset. Observations are to be meticulously documented electronica lly while linking them directly to earth coordinates via GPS. WACHS will operate under the guidelines set forth in this agreement. Due to the potential condition or deterioration of assets that may or may not have been maintained, WACHS will not be held liable for any assets that fail or break or the consequences of such failures during the operating procedures due to pre-existing conditions. Any assets that fail or break during operation will be repaired or replaced by the utility. UNIDIRECTIONAL / CONVENTIONAL FLUSHING EXECUTION SCOPE Pre Survey Consultation WACHS will meet with CLIENT staff to discuss system data mapping, plan and design UDF sequences . Public Notification WACHS will communicate in advance to all affected customers prior to UDF flushing activities. WACHS will post signage alerting customers that UDF is being performed. ATTACHMENT B - SCOPE OF SERVICES VALVE ASSESSMENTS, AND UDF EXECUTION SERVICES 4 Flushing Activities WACHS will conduct flushing activities for designated sequences. Th ese documents will identify hydrants and valves to be operated in addition to flushed pipe. Assets are depicted graphically on map documents where expected flows, flushing time and expected pressures are listed. Any deviation from the expected will requi re immediate notification. Each crew consisting of a minimum of two workers shall be equipped with a minimum of 1 vehicle containing necessary equipment to complete flushing activities. WACHS will provide completion maps to the CLIENT at project end. If low pressure is experienced during flushing activities, WACHS will notify the CLIENT. Flushing Procedure  Locate zone, review sequence maps and identify target hydrants and valves  Start sequence  Close target valves  Slowly open the target hydrant (Should not fall below 20 psi)  Allow water to run for the specified length of time as designed. If the water fails to clear during the specified length of time as designed. Any time beyond that will be charged at the hourly crew rate.  Note characteristics of the water (i.e. color and particles – intensity and time required to flow clear)  Slowly close target hydrant  Open target valves in preparation for the next sequence  Blow off all dead ends / indicated piping and move to the next sequence  Repeat steps until all sequences in zone are complete ADDITIONAL PROGRAM OBJECTIVES GIS QA / QC Plan WACHS has a QA/QC plan which has quality checkpoints throughout the program lifecycle. At the program start up WACHS will describe and review our methods for developing mapping grade horizontal accuracy and accurate attribute data with the CLIENT. Work Orders WACHS will create work orders for all required repairs that are needed in order to bring the valves in the system up to 100% operability. These work orders will be captured and managed in a database to be provided by WACHS. Work orders will specifically note the discrepancy of the valve and the repair activity required to return the valve to full operability. Work orders will contain the following information:  Valve or Hydrant ID  Map number  Specific valve or hydrant discrepancy (category and details)  Specific repair activity required to return the valve or hydrant to full operability Scheduling WACHS will propose an overall schedule of work to be approved by the CLIENT. The CLIENT shall approve the work schedule before allowing WACHS to proceed. ATTACHMENT B - SCOPE OF SERVICES VALVE ASSESSMENTS, AND UDF EXECUTION SERVICES 5 Safety WACHS will abide by all OSHA safety regulations in the fulfillment of this scope of services. WACHS shall provide all traffic control services necessary to ensure a safe working environment for the fulfillment of the contract. As a requirement to perform this scope of work safely, each truck crew will have a minimum of two (2) crew members. All work vehicles will be equipped with amber warning lights, strobe lights, directional arrow board lights, communications equipment and will clearly identify WACHS. If necessary, WACHS will switch to night time operations if traffic control and safety become a factor in the completion of services. Professionalism WACHS will ensure that all activities are conducted in a professional manner. At a minimum WACHS will ensure all personnel are in an approved uniform; all field equipment is maintained clean and neat; all trucks are clearly identified with WACHS’s name and contact phone number and written procedures for field operations and information management processes are contained within the vehicle in an operations manual. DELIVERABLES Deliverable Database WACHS will provide applicable valve data in a spatially accurate format compliant with the CLIENT’s existing data structure. The database shall contain the information agreed with the CLIENT. Before field operations commence, a meeting to be attended by WACHS and the CLIENT will be held to reach alignment on specific data schemas to be employed. It is at this juncture that WACHS and the CLIENT will reach agreement on which specific features will be collected, the format this feature data will conform to, and the final resting place for all collected and calculated information within the CLIENT’s data infrastructure so that it can be appropriately mapped and accessed by the CLIENT staff. Evaluation Presentation and Deliverables WACHS will evaluate and analyze the results of the program and develop an evaluation presentation for the CLIENT. This evaluation presentation will include an analysis of the results of the program, findings, learning’s, suggestions and recom mendations for the CLIENT. At a minimum the following deliverable reports will be presented to the CLIENT;  Valve Operability – a detailed summary of operability before and after asset inspection and exercising was performed. Accompanying this report will be a map record of inoperable and / or broken valves.  Out of Service Hydrant Report – Summary supporting daily calls regarding out of service hydrants, accompanied by a map document showing OOS hydrant locations.  Frozen Valve – a detailed summary accompanied by a map depicting frozen va lves. WACHS will recommend threshold size, torque and turn discrepancies constituting the frozen valve = “YES” attribute.  Opened Work Orders – a detailed summary of work orders opened in the CLIENT’s asset management system that could not be completed dur ing the initial pass of inspection by the field crew. This report will be accompanied by a map document s showing location detail.  Wrong Position Valves – detailed map document showing where valves were: o Found Closed Left Closed o Found Closed Left Open  Validated database compliant with ESRI ArcGIS ATTACHMENT B - SCOPE OF SERVICES VALVE ASSESSMENTS, AND UDF EXECUTION SERVICES 6 Assumptions Flushing sequences will be designed and executed based on the assumption that all fire hydrants and isolation valves are in operable working condition. Assessment of Fire Hydrants and Isolatio n Valves are not included as a part of this proposed work scope . ATTACHMENT C CONDITIONS OF ENGAGEMENT FOR THE PROVISION OF SERVICES 7 The Proposal is issued upon and is subject to these Conditions of Engagement, which will be sought in the Contract to be executed between the Client and Wachs Water. If the Proposal is accepted by the Client, these Conditions of Engagement and the Proposa l will be the substantive basis for the Contract between the Client and Wachs. 1. DEFINITIONS In these Conditions of Engagement, the following definitions apply: Client means any person or persons, firm or company engaging Wachs to provide the Services. Cont ract means the professional services agreement to be executed between Wachs as a result of the Proposal. Proposal means Wachs Water’s offer to carry out the Services and includes all related correspondence plus agreed written variations or amendments there to. Services means those services of whatever nature to be supplied by Wachs under the Contract. Site means the facility, land, installation or premises to which Wachs is granted access for the purposes of the Contract and may include any combination of th e foregoing. Wachs Water Services, Wachs Water or Wachs means Pure Technologies US Inc. dba Wachs Water Services , or any of their affiliates, as the case may be, which submitted the Proposal and is a party to the Contract. 2. WACHS’ OBLIGATIONS 2.1 Wachs will perform the Services in accordance with the procedures described in the Proposal, using reasonable skill, care and diligence and consistent with industry standards. 2.2 Wachs Water will ensure that the equipment used in performing the Services is in a good and functional state. 3. CLIENT’S OBLIGATIONS 3.1 The Client will provide to Wachs Water full, good faith co-operation to assist Wachs Water in providing the Services. Unless otherwise specified in the Proposal and without limiting the generality of the foregoing, th e Client will at its own expense: (i) ensure, if required, access to private land will be given to Wachs and that any official permits or permissions required for Wachs to have access to the Site or carry out the Services are obtained and are in force for the duration of the Services; (ii) inform Wachs Water in writing of any special circumstances or danger which the execution of the Services may entail or which are inherent in the Site, including the existence and identity of any known hazardous substance or material; (iii) perform such additional duties and responsibilities and provide such information and resources as are described in the Proposal. 3.2 The description of the Services and related compensation amount set out in the Proposal will be based upon information that the Client shall have provided to Wachs, and assumptions that Wachs shall have identified in the Proposal. The Client ATTACHMENT C CONDITIONS OF ENGAGEMENT FOR THE PROVISION OF SERVICES 8 acknowledges that if any such information provided by Client is materially incomplete or inaccurate, or if the assumptions identified by Wachs Water are not correct, then the parties will modify the Proposal to reflect the actual information, assumptions, and Services required, and the compensation to Wachs Water will be adjusted accordingly using the change order process set out in the Contract, or if there is no such process, on an equitable basis. 4. PROPRIETARY AND CONFIDENTIAL INFORMATION 4.1 All reports generated in the performance of the Services and delivered by Wachs Water to the Client will become the property of the Client. 4.2 Wachs Water’s equipment which is made available to the Client in connection with the Contract and the raw data generated in the performance of the Services will remain the sole and exclusive property of Wachs Water. The Client will not acquire any proprietary rights in Wachs Water's equipment, systems, software, technology, inventions (whether or not patentable), patents, patent applications, documentation, specifications, designs, data, databases, methods, processes or know -how (“Wachs Technology”). Any modifications or improvements to the Wachs Technology made during the performance of the Services will be the sole and exclusive property of Wachs Water. 4.3 Both parties agree to keep confidential all documentation and information provided by the other during the performance of the Contract. The obligations set out in this clause 4.3 will remain in full force and effect after any termination or expiry, as the case may be, of the Contract. 5. LIABILITY AND WARRANTIES 5.1 Wachs Water will indemnify the Client against any expense, demand, liability, loss, claim or proceeding whatsoever in respect of personal injury to or the death of any person, or any loss, destruction or damage to any tangible property and arising directly or indirectly from the negligence of Wachs Water, its empl oyees, servants or agents except to the extent caused by the negligence of the Client or any person for whom the Client is responsible. The Client will similarly indemnify Wachs Water. 5.2 Wachs Water will not be liable for any loss of production, loss of use of property, loss of revenue or profit, equipment downtime, business interruption, loss of goodwill, loss of anticipated savings, cost of procurement of substitute goods or services, or for any consequential, indirect, incidental, or special loss or damage suffered by the Client or any third party, or for any punitive damages, even if advised of the possibility thereof and notwithstanding the failure of essential purpose of any remedy. 5.3 Wachs Water cumulative liability under the Contract, whether in contract , tort (including negligence), or otherwise, will in no event exceed the aggregate consideration paid by the Client to Wachs Water for the portion of the Services that gave rise to the liability, provided, however, that this clause 5.3 shall not limit Wachs Water’s indemnification obligations under these Conditions of Engagement. 5.4 The report(s) and any other recommendations or advice made by Wachs Wat er relating to the pipeline or the Services will be made in accordance with the procedures described in the Proposal, using reasonable skill, care and diligence consistent with industry standards, but do not and will not constitute a warranty of the pipeli ne’s quality, capacity, safety or fitness for purpose. Wachs Water will not be liable to the Client for any liability or damages that arise from the Client’s reliance upon or application or use of such final report or recommendations or advice made by Wach s Water in relation to the pipeline or Services. 5.5 Wachs Water’s warranties for the Services will be set out in the Contract. Wachs Water disclaims all implied or statutory warranties or conditions, including of merchantability, merchantable quality, durabi lity, or fitness for particular purpose to the extent allowed by applicable law. ? LOCAL GOVERNMENT CODE TITLE 8. ACQUISITION, SALE, OR LEASE OF PROPERTY SUBTITLE A. MUNICIPAL ACQUISITION, SALE, OR LEASE OF PROPERTY CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES SUBCHAPTER A. GENERAL PROVISIONS Sec. 252.001. DEFINITIONS. In this chapter: (1) "Bond funds" includes money in the treasury received from the sale of bonds and includes the proceeds of bonds that have been voted but have not been issued and delivered. (2) "Component purchases" means purchases of the component parts of an item that in normal purchasing practices would be purchased in one purchase. (3) "Current funds" includes money in the treasury, taxes in the process of being collected in the current tax year, and all other revenue that may be anticipated with reasonable certainty in the current tax year. (4) "High technology procurement" means the procurement of equipment, goods, or services of a highly technical nature, including: (A) data processing equipment and software and firmware used in conjunction with data processing equipment; (B) telecommunications equipment and radio and microwave systems; (C) electronic distributed control systems, including building energy management systems; and (D) technical services related to those items. (5) "Planning services" means services primarily intended to guide governmental policy to ensure the orderly and coordinated development of the state or of municipal, county, metropolitan, or regional land areas. (6) "Separate purchases" means purchases, made separately, of items that in normal purchasing practices would be purchased in one purchase. Page 1 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTIN... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... (7) "Sequential purchases" means purchases, made over a period, of items that in normal purchasing practices would be purchased in one purchase. (8) "Time warrant" includes any warrant issued by a municipality that is not payable from current funds. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 1250, Sec. 2, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 207, Sec. 1, eff. May 23, 1995. Sec. 252.002. MUNICIPAL CHARTER CONTROLS IN CASE OF CONFLICT. Any provision in the charter of a home-rule municipality that relates to the notice of contracts, advertisement of the notice, requirements for the taking of sealed bids based on specifications for public improvements or purchases, the manner of publicly opening bids or reading them aloud, or the manner of letting contracts and that is in conflict with this chapter controls over this chapter unless the governing body of the municipality elects to have this chapter supersede the charter. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1993, 73rd Leg., ch. 749, Sec. 5, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 757, Sec. 7, eff. Sept. 1, 1993. Sec. 252.003. APPLICATION OF OTHER LAW. The purchasing requirements of Section 361.426, Health and Safety Code, apply to municipal purchases made under this chapter. Added by Acts 1991, 72nd Leg., ch. 303, Sec. 17, eff. Sept. 1, 1991. SUBCHAPTER B. COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED Sec. 252.021. COMPETITIVE REQUIREMENTS FOR PURCHASES. (a) Before a municipality may enter into a contract that requires an expenditure of more than $50,000 from one or more municipal funds, the municipality must: (1) comply with the procedure prescribed by this subchapter and Subchapter C for competitive sealed bidding or competitive sealed proposals; Page 2 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTIN... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... (2) use the reverse auction procedure, as defined by Section 2155.062(d), Government Code, for purchasing; or (3) comply with a method described by Chapter , Government Code. (b) A municipality may use the competitive sealed proposal procedure for the purchase of goods or services, including high technology items and insurance. (c) The governing body of a municipality that is considering using a method other than competitive sealed bidding must determine before notice is given the method of purchase that provides the best value for the municipality. The governing body may delegate, as appropriate, its authority under this subsection to a designated representative. If the competitive sealed proposals requirement applies to the contract, the municipality shall consider the criteria described by Section 252.043(b) and the discussions conducted under Section 252.042 to determine the best value for the municipality. (d) This chapter does not apply to the expenditure of municipal funds that are derived from an appropriation, loan, or grant received by a municipality from the federal or state government for conducting a community development program established under Chapter 373 if under the program items are purchased under the request-for-proposal process described by Section 252.042. A municipality using a request-for- proposal process under this subsection shall also comply with the requirements of Section 252.0215. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 1, Sec. 56(b), eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 749, Sec. 1, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 757, Sec. 11, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 45, Sec. 1, eff. May 5, 1995; Acts 1997, 75th Leg., ch. 790, Sec. 1, eff. June 17, 1997; Acts 1999, 76th Leg., ch. 571, Sec. 1, eff. June 18, 1999; Acts 2001, 77th Leg., ch. 115, Sec. 1, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 436, Sec. 2, eff. May 28, 2001; Acts 2001, 77th Leg., ch. 436, Sec. 3, eff. May 28, 2001; Acts 2001, 77th Leg., ch. 1409, Sec. 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 217, Sec. 1, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 12.003, eff. Sept. 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 1, eff. Page 3 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTIN... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 1213 (H.B. 1886), Sec. 1, eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 1272 (H.B. 3517), Sec. 1, eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 1272 (H.B. 3517), Sec. 2, eff. September 1, 2007. Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.01, eff. September 1, 2011. Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002 (20), eff. September 1, 2013. Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an expenditure of more than $3,000 but less than $50,000, shall contact at least two historically underutilized businesses on a rotating basis, based on information provided by the comptroller pursuant to Chapter 2161, Government Code. If the list fails to identify a historically underutilized business in the county in which the municipality is situated, the municipality is exempt from this section. Added by Acts 1993, 73rd Leg., ch. 749, Sec. 3, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 17.18, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 115, Sec. 2, eff. Sept. 1, 2001. Amended by: Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 2, eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 937 (H.B. 3560), Sec. 1.100, eff. September 1, 2007. Sec. 252.022. GENERAL EXEMPTIONS. (a) This chapter does not apply to an expenditure for: (1) a 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; (2) a procurement necessary to preserve or protect the public health or safety of the municipality's residents; Page 4 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTIN... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... (3) a procurement necessary because of unforeseen damage to public machinery, equipment, or other property; (4) a procurement for personal, professional, or planning services; (5) a procurement for work that is performed and paid for by the day as the work progresses; (6) a purchase of land or a right-of-way; (7) a procurement of items that are available from only one source, including: (A) items that are available from only one source because of patents, copyrights, secret processes, or natural monopolies; (B) films, manuscripts, or books; (C) gas, water, and other utility services; (D) captive replacement parts or components for equipment; (E) books, papers, and other library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and (F) management services provided by a nonprofit organization to a municipal museum, park, zoo, or other facility to which the organization has provided significant financial or other benefits; (8) a purchase of rare books, papers, and other library materials for a public library; (9) paving drainage, street widening, and other public improvements, or related matters, if at least one-third of the cost is to be paid by or through special assessments levied on property that will benefit from the improvements; (10) a public improvement project, already in progress, authorized by the voters of the municipality, for which there is a deficiency of funds for completing the project in accordance with the plans and purposes authorized by the voters; (11) a payment under a contract by which a developer participates in the construction of a public improvement as provided by Subchapter C, Chapter 212; (12) personal property sold: (A) at an auction by a state licensed auctioneer; Page 5 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTIN... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... (B) at a going out of business sale held in compliance with Subchapter F, Chapter 17, Business & Commerce Code; (C) by a political subdivision of this state, a state agency of this state, or an entity of the federal government; or (D) under an interlocal contract for cooperative purchasing administered by a regional planning commission established under Chapter 391; (13) services performed by blind or severely disabled persons; (14) goods purchased by a municipality for subsequent retail sale by the municipality; (15) electricity; or (16) advertising, other than legal notices. (b) This chapter does not apply to bonds or warrants issued under Subchapter A, Chapter 571. (c) This chapter does not apply to expenditures by a municipally owned electric or gas utility or unbundled divisions of a municipally owned electric or gas utility in connection with any purchases by the municipally owned utility or divisions of a municipally owned utility made in accordance with procurement procedures adopted by a resolution of the body vested with authority for management and operation of the municipally owned utility or its divisions that sets out the public purpose to be achieved by those procedures. This subsection may not be deemed to exempt a municipally owned utility from any other applicable statute, charter provision, or ordinance. (d) This chapter does not apply to an expenditure described by Section 252.021(a) if the governing body of a municipality determines that a method described by Chapter , Government Code, provides a better value for the municipality with respect to that expenditure than the procedures described in this chapter and the municipality adopts and uses a method described in that chapter with respect to that expenditure. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 1, Sec. 47(c), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1001, Sec. 1, eff. Aug. 28, 1989; Acts 1991, 72nd Leg., ch. 42, Sec. 1, eff. April 25, 1991; Acts 1993, 73rd Leg., ch. 749, Sec. 7, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 757, Page 6 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTIN... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... Sec. 9, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 207, Sec. 2, eff. May 23, 1995; Acts 1995, 74th Leg., ch. 746, Sec. 1, eff. Aug. 28, 1995; Acts 1997, 75th Leg., ch. 125, Sec. 1, eff. May 19, 1997; Acts 1997, 75th Leg., ch. 1370, Sec. 3, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 405, Sec. 41, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1409, Sec. 2, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1420, Sec. 8.290, eff. Sept. 1, 2001. Amended by: Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 3, eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.77(3), eff. April 1, 2009. Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.02, eff. September 1, 2011. Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002 (21), eff. September 1, 2013. Sec. 252.023. EXEMPTIONS FROM REFERENDUM PROVISIONS. The referendum provisions prescribed by Section 252.045 do not apply to expenditures that are payable: (1) from current funds; (2) from bond funds; or (3) by time warrants unless the amount of the time warrants issued by the municipality for all purposes during the current calendar year exceeds: (A) $7,500 if the municipality's population is 5,000 or less; (B) $10,000 if the municipality's population is 5,001 to 24,999; (C) $25,000 if the municipality's population is 25,001 to 49,999; or (D) $100,000 if the municipality's population is more than 50,000. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1991, 72nd Leg., ch. 109, Sec. 1, eff. Aug. 26, 1991. Sec. 252.024. SELECTION OF INSURANCE BROKER. This chapter does Page 7 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTIN... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... not prevent a municipality from selecting a licensed insurance broker as the sole broker of record to obtain proposals and coverages for excess or surplus insurance that provides necessary coverage and adequate limits of coverage in structuring layered excess coverages in all areas of risk requiring special consideration, including public official liability, police professional liability, and airport liability. The broker may be retained only on a fee basis and may not receive any other remuneration from any other source. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. SUBCHAPTER C. PROCEDURES Sec. 252.041. NOTICE REQUIREMENT. (a) If the competitive sealed bidding requirement applies to the contract, notice of the time and place at which the bids will be publicly opened and read aloud must be published at least once a week for two consecutive weeks in a newspaper published in the municipality. The date of the first publication must be before the 14th day before the date set to publicly open the bids and read them aloud. If no newspaper is published in the municipality, the notice must be posted at the city hall for 14 days before the date set to publicly open the bids and read them aloud. (b) If the competitive sealed proposals requirement applies to the contract, notice of the request for proposals must be given in the same manner as that prescribed by Subsection (a) for the notice for competitive sealed bids. (c) If the contract is for the purchase of machinery for the construction or maintenance of roads or streets, the notice for bids and the order for purchase must include a general specification of the machinery desired. (d) If the governing body of the municipality intends to issue time warrants for the payment of any part of the contract, the notice must include a statement of: (1) the governing body's intention; (2) the maximum amount of the proposed time warrant indebtedness; (3) the rate of interest the time warrants will bear; and (4) the maximum maturity date of the time warrants. Page 8 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTIN... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1991, 72nd Leg., ch. 109, Sec. 2, eff. Aug. 26, 1991; Acts 1993, 73rd Leg., ch. 749, Sec. 4, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 757, Sec. 6, eff. Sept. 1, 1993. Sec. 252.0415. PROCEDURES FOR ELECTRONIC BIDS OR PROPOSALS. (a) A municipality may receive bids or proposals under this chapter through electronic transmission if the governing body of the municipality adopts rules to ensure the identification, security, and confidentiality of electronic bids or proposals and to ensure that the electronic bids or proposals remain effectively unopened until the proper time. (b) Notwithstanding any other provision of this chapter, an electronic bid or proposal is not required to be sealed. A provision of this chapter that applies to a sealed bid or proposal applies to a bid or proposal received through electronic transmission in accordance with the rules adopted under Subsection (a). Added by Acts 2001, 77th Leg., ch. 1063, Sec. 6, eff. Sept. 1, 2001. Sec. 252.042. REQUESTS FOR PROPOSALS FOR CERTAIN PROCUREMENTS. (a) Requests for proposals made under Section 252.021 must solicit quotations and must specify the relative importance of price and other evaluation factors. (b) Discussions in accordance with the terms of a request for proposals and with regulations adopted by the governing body of the municipality may be conducted with offerors who submit proposals and who are determined to be reasonably qualified for the award of the contract. Offerors shall be treated fairly and equally with respect to any opportunity for discussion and revision of proposals. To obtain the best final offers, revisions may be permitted after submissions and before the award of the contract. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 1, Sec. 56(c), eff. Aug. 28, 1989; Acts 1995, 74th Leg., ch. 45, Sec. 2, eff. May 5, 1995. Sec. 252.043. AWARD OF CONTRACT. (a) If the competitive Page 9 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACTIN... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... sealed bidding requirement applies to the contract for goods or services, the contract must be awarded to the lowest responsible bidder or to the bidder who provides goods or services at the best value for the municipality. (b) In determining the best value for the municipality, the 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 historically underutilized businesses 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. (b-1) In addition to the considerations provided by Subsection (b), a joint board described by Section 22.074(d), Transportation Code, that awards contracts in the manner provided by this chapter may consider, in determining the best value for the board, the impact on the ability of the board to comply with laws, rules, and programs relating to contracting with small businesses, as defined by 13 C.F.R. Section 121.201. (c) Before awarding a contract under this section, a municipality must indicate in the bid specifications and requirements that the contract may be awarded either to the lowest responsible bidder or to the bidder who provides goods or services at the best value for the municipality. (d) Except as provided by Subsection (d-1), the contract must be awarded to the lowest responsible bidder if the competitive sealed bidding requirement applies to the contract for construction of: (1) highways, roads, streets, bridges, utilities, water supply projects, water plants, wastewater plants, water and wastewater Page 10 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACT... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... distribution or conveyance facilities, wharves, docks, airport runways and taxiways, drainage projects, or related types of projects associated with civil engineering construction; or (2) buildings or structures that are incidental to projects that are primarily civil engineering construction projects. (d-1) A contract for construction of a project described by Subsection (d) that requires an expenditure of $1.5 million or less may be awarded using the competitive sealed proposal procedure prescribed by Subchapter D, Chapter , Government Code. (e) If the competitive sealed bidding requirement applies to the contract for construction of a facility, as that term is defined by Section 2269.001, Government Code, the contract must be awarded to the lowest responsible bidder or awarded under the method described by Chapter , Government Code. (f) The governing body may reject any and all bids. (g) A bid that has been opened may not be changed for the purpose of correcting an error in the bid price. This chapter does not change the common law right of a bidder to withdraw a bid due to a material mistake in the bid. (h) If the competitive sealed proposals requirement applies to the contract, the contract must be awarded to the responsible offeror whose proposal is determined to be the most advantageous to the municipality considering the relative importance of price and the other evaluation factors included in the request for proposals. (i) This section does not apply to a contract for professional services, as that term is defined by Section 2254.002, Government Code. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1997, 75th Leg., ch. 1370, Sec. 4, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1409, Sec. 3, eff. Sept. 1, 2001. Amended by: Acts 2005, 79th Leg., Ch. 739 (H.B. 2661), Sec. 1, eff. September 1, 2005. Acts 2007, 80th Leg., R.S., Ch. 428 (S.B. 1618), Sec. 1, eff. June 15, 2007. Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.03, eff. September 1, 2011. Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002 (22), eff. September 1, 2013. Page 11 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACT... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... Sec. 252.0435. SAFETY RECORD OF BIDDER CONSIDERED. In determining who is a responsible bidder, the governing body may take into account the safety record of the bidder, of the firm, corporation, partnership, or institution represented by the bidder, or of anyone acting for such a firm, corporation, partnership, or institution if: (1) the governing body has adopted a written definition and criteria for accurately determining the safety record of a bidder; (2) the governing body has given notice to prospective bidders in the bid specifications that the safety record of a bidder may be considered in determining the responsibility of the bidder; and (3) the determinations are not arbitrary and capricious. Added by Acts 1989, 71st Leg., ch. 1, Sec. 58(b), eff. Aug. 28, 1989. Sec. 252.0436. CONTRACT WITH PERSON INDEBTED TO MUNICIPALITY. (a) A municipality by ordinance may establish regulations permitting the municipality to refuse to enter into a contract or other transaction with a person indebted to the municipality. (b) It is not a violation of this chapter for a municipality, under regulations adopted under Subsection (a), to refuse to award a contract to or enter into a transaction with an apparent low bidder or successful proposer that is indebted to the municipality. (c) In this section, "person" includes an individual, sole proprietorship, corporation, nonprofit corporation, partnership, joint venture, limited liability company, and any other entity that proposes or otherwise seeks to enter into a contract or other transaction with the municipality requiring approval by the governing body of the municipality. Added by Acts 2003, 78th Leg., ch. 156, Sec. 1, eff. Sept. 1, 2003. Sec. 252.044. CONTRACTOR'S BOND. (a) If the contract is for the construction of public works, the bidder to whom the contract is awarded must execute a good and sufficient bond. The bond must be: (1) in the full amount of the contract price; (2) conditioned that the contractor will faithfully perform the contract; and Page 12 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACT... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... (3) executed, in accordance with Chapter 2253, Government Code, by a surety company authorized to do business in the state. (b) Repealed by Acts 1993, 73rd Leg., ch. 865, Sec. 2, eff. Sept. 1, 1993. (c) The governing body of a home-rule municipality by ordinance may adopt the provisions of this section and Chapter 2253, Government Code, relating to contractors' surety bonds, regardless of a conflicting provision in the municipality's charter. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1993, 73rd Leg., ch. 865, Sec. 2, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(17), eff. Sept. 1, 1995. Sec. 252.045. REFERENDUM ON ISSUANCE OF TIME WARRANTS. (a) If, by the time set for letting a contract under this chapter, a written petition with the required signatures is filed with the municipal secretary or clerk requesting the governing body of the municipality to order a referendum on the question of whether time warrants should be issued for an expenditure under the contract, the governing body may not authorize the expenditure or finally award the contract unless the question is approved by a majority of the votes received in the referendum. The petition must be signed by at least 10 percent of the qualified voters of the municipality whose names appear as property taxpayers on the municipality's most recently approved tax rolls. (b) If a petition is not filed, the governing body may finally award the contract and issue the time warrants. In the absence of a petition, the governing body may, at its discretion, order the referendum. (c) The provisions of Subtitles A and C, Title 9, Government Code, relating to elections for the issuance of municipal bonds and to the issuance, approval, registration, and sale of bonds govern the referendum and the time warrants to the extent those provisions are consistent with this chapter. However, the time warrants may mature over a term exceeding 40 years only if the governing body finds that the financial condition of the municipality will not permit payment of warrants issued for a term of 40 years or less from taxes that are imposed substantially uniformly during the term of the warrants. Page 13 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACT... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... (d) This section does not supersede any additional rights provided by the charter of a special-law municipality and relating to a referendum. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1999, 76th Leg., ch. 1064, Sec. 38, eff. Sept. 1, 1999. Sec. 252.046. CIRCUMSTANCES IN WHICH CURRENT FUNDS TO BE SET ASIDE. If an expenditure under the contract is payable by warrants on current funds, the governing body of the municipality by order shall set aside an amount of current funds that will discharge the principal and interest of the warrants. Those funds may not be used for any other purpose, and the warrants must be discharged from those funds and may not be refunded. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Sec. 252.047. PAYMENT METHOD FOR CERTAIN CONTRACTS. If the contract is for the construction of public works or for the purchase of materials, equipment, and supplies, the municipality may let the contract on a lump-sum basis or unit price basis as the governing body of the municipality determines. If the contract is let on a unit price basis, the information furnished to bidders must specify the approximate quantity needed, based on the best available information, but payment to the contractor must be based on the actual quantity constructed or supplied. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Sec. 252.048. CHANGE ORDERS. (a) If changes in plans or specifications are necessary after the performance of the contract is begun or if it is necessary to decrease or increase the quantity of work to be performed or of materials, equipment, or supplies to be furnished, the governing body of the municipality may approve change orders making the changes. (b) The total contract price may not be increased because of the changes unless additional money for increased costs is appropriated for that purpose from available funds or is provided for by the authorization of the issuance of time warrants. Page 14 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACT... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... (c) If a change order involves a decrease or an increase of $50,000 or less, the governing body may grant general authority to an administrative official of the municipality to approve the change orders. (c-1) If a change order for a public works contract in a municipality with a population of 300,000 or more involves a decrease or an increase of $100,000 or less, or a lesser amount as provided by ordinance, the governing body of the municipality may grant general authority to an administrative official of the municipality to approve the change order. (d) The original contract price may not be increased under this section by more than 25 percent. The original contract price may not be decreased under this section by more than 25 percent without the consent of the contractor. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1995, 74th Leg., ch. 706, Sec. 1, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 746, Sec. 2, eff. Aug. 28, 1995. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 479 (H.B. 679), Sec. 1, eff. June 17, 2011. Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 2.09, eff. September 1, 2011. Acts 2013, 83rd Leg., R.S., Ch. 1127 (H.B. 1050), Sec. 7, eff. September 1, 2013. Acts 2013, 83rd Leg., R.S., Ch. 1356 (S.B. 1430), Sec. 2, eff. June 14, 2013. Sec. 252.049. CONFIDENTIALITY OF INFORMATION IN BIDS OR PROPOSALS. (a) Trade secrets and confidential information in competitive sealed bids are not open for public inspection. (b) If provided in a request for proposals, proposals shall be opened in a manner that avoids disclosure of the contents to competing offerors and keeps the proposals secret during negotiations. All proposals are open for public inspection after the contract is awarded, but trade secrets and confidential information in the proposals are not open for public inspection. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Page 15 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACT... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... Sec. 252.050. LEASE-PURCHASE OR INSTALLMENT PURCHASE OF REAL PROPERTY. (a) This section applies only to a lease-purchase or installment purchase of real property financed by the issuance of certificates of participation. (b) The governing body of a municipality may not make an agreement under which the municipality is a lessee in a lease-purchase of real property or is a purchaser in an installment purchase of real property unless the governing body first obtains an appraisal by a qualified appraiser who is not an employee of the municipality. The purchase price may not exceed the fair market value of the real property, as shown by the appraisal. Added by Acts 1989, 71st Leg., 1st C.S., ch. 10, Sec. 2, eff. Oct. 18, 1989. Sec. 252.051. APPRAISAL REQUIRED BEFORE PURCHASE OF PROPERTY WITH BOND PROCEEDS. A municipality may not purchase property wholly or partly with bond proceeds until the municipality obtains an independent appraisal of the property's market value. Added by Acts 2011, 82nd Leg., R.S., Ch. 719 (H.B. 782), Sec. 1, eff. September 1, 2011. SUBCHAPTER D. ENFORCEMENT Sec. 252.061. INJUNCTION. If the contract is made without compliance with this chapter, it is void and the performance of the contract, including the payment of any money under the contract, may be enjoined by: (1) any property tax paying resident of the municipality; or (2) a person who submitted a bid for a contract for which the competitive sealed bidding requirement applies, regardless of residency, if the contract is for the construction of public works. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by: Acts 2009, 81st Leg., R.S., Ch. 979 (H.B. 3668), Sec. 1, eff. Page 16 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACT... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... September 1, 2009. Sec. 252.062. CRIMINAL PENALTIES. (a) A municipal officer or employee commits an offense if the officer or employee intentionally or knowingly makes or authorizes separate, sequential, or component purchases to avoid the competitive bidding requirements of Section 252.021. An offense under this subsection is a Class B misdemeanor. (b) A municipal officer or employee commits an offense if the officer or employee intentionally or knowingly violates Section 252.021, other than by conduct described by Subsection (a). An offense under this subsection is a Class B misdemeanor. (c) A municipal officer or employee commits an offense if the officer or employee intentionally or knowingly violates this chapter, other than by conduct described by Subsection (a) or (b). An offense under this subsection is a Class C misdemeanor. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 1250, Sec. 3, eff. Sept. 1, 1989. Sec. 252.063. REMOVAL; INELIGIBILITY. (a) The final conviction of a municipal officer or employee for an offense under Section 252.062(a) or (b) results in the immediate removal from office or employment of that person. (b) For four years after the date of the final conviction, the removed officer or employee is ineligible: (1) to be a candidate for or to be appointed or elected to a public office in this state; (2) to be employed by the municipality with which the person served when the offense occurred; and (3) to receive any compensation through a contract with that municipality. (c) This section does not prohibit the payment of retirement or workers' compensation benefits to the removed officer or employee. Added by Acts 1989, 71st Leg., ch. 1250, Sec. 4, eff. Sept. 1, 1989. Page 17 of 18LOCAL GOVERNMENT CODE CHAPTER 252. PURCHASING AND CONTRACT... 9/4/2014http://www.statutes.legis.state.tx.us/DocViewer.aspx?DocKey=LG%2fLG.252&Phrases=22... Page 18 of 18LOCAL GOVERNMENT CODE CHAPTER 252. 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