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Item 4G MemoItem 4G Page 1 of 3 M E M O R A N D U M (November 19, 2019) To: Shana Yelverton, City Manager From: Rob Cohen, Director of Public Works Subject: Authorize expenditures with Axis Construction, LP for valve replacements at the T.W. King booster station in an amount not to exceed $85,160. Action Requested: Authorize expenditures with Axis Construction, LP for valve replacements at the T.W. King booster station in an amount not to exceed $85,160. Background Information: The T.W. King booster station is one of two entry points that connects the City of Southlake’s distribution system to the City’s wholesale provider, the City of Fort Worth. This booster station has the capacity to deliver 17 million gallons of water per day (MGD) to serve customers in the low-pressure plane of the City’s system. Currently, the existing valves at T.W. King are no longer supported by the manufacturer for replacement or repair parts. Therefore, in the FY 2020 adopted budget, City Council allocated funds to replace the (2) 12-inch booster pump control valves at the T.W. King booster station. The purpose of these valves is to help control the operation of the pumps to the distribution system. Failure of these valves could result in loss of water service for customers in the low-pressure plane. Axis Construction will be replacing both valves with standard Cla-Val valves, in uniform with other valves throughout the distribution system which have available, continuous support. At the beginning of October 2019, the 16-inch surge anticipating valve at T.W. King failed and requires replacement. This valve helps alleviate any pressure surge the system may encounter in the event of a power failure. Failure to replace this valve could result in damage to a water transmission main or other appurtenance critical to supplying water to the City. Axis Construction will be replacing the surge valve with the standard Cla-Val as well. Item 4G Page 2 of 3 Financial Considerations: The City’s purchasing policy for valve replacement services at the T.W. King booster station is exempt from bidding under the Texas Local Government Code Chapter 252, Section 252.022, General Exemptions (Attachment A). Below are the itemized replacement services to be performed by Axis Construction at the T.W. King booster station in FY 2020: FY 2020 Expenditures – T.W. King booster station Cost Emergency repair – 16-inch surge anticipating valve $ 30,651.00 Replacement – (2) 12-inch booster pump control valves $ 46,766.00 10% Contingency $ 7,743.00 Total $ 85,160.00 Funding for valve replacements at T.W. King booster station is provided in the FY 2020 Utility Fund and Water Operating Budget. Expenditures will not exceed budgeted funds. Strategic Link: This item links to the City’s Strategy Map strategic focus areas of Safety & Security and Infrastructure. It specifically relates to the City’s Corporate Objectives, C1: Achieve the Highest Standards of Safety & Security, and F2: Invest To Provide & Maintain High Quality Public Assets. Citizen Input/ Board Review: None. Legal Review: None. Alternatives: The City Council may approve or deny the request. Staff Recommendation: Authorize expenditures with Axis Construction, LP for valve replacements at the T.W. King booster station in an amount not to exceed $85,160. Item 4G Page 3 of 3 Supporting Documents: Attachment A: Local Government Code Chapter 252, Section 252.022 Attachment B: Memo and Proposal – Emergency Repair of 16-inch Surge Anticipating Valve Attachment C: Proposal – Axis Construction, LP (2) 12-inch Pump Control Valves Staff Contact: Rob Cohen, Director of Public Works Kyle D. Hogue, P.E., Deputy Director/City Engineer Jack Thompson, Operations Manager ? 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... 1 page sent via email to: klong@ci.sothlake.tx.us Axis Construction, LP P.O. Box 77916 Fort Worth, Texas 76177 September 24, 2019 ACLP #19115 PROPOSAL City of Southlake 1400 Main Street #320 Southlake, Texas 76092 Attn: Mr. Kurt Long RE: 16” Cla-Val Per your request, we offer to provide the following materials: 1 - 16” Cla-Val 52-03, BYKC X105LCW DS 150# FLANGED GLOBE Total Cost for Valve as Noted Above = $26,877.00 Additional Cost for Installation 1. Provide labor, equipment and material as required to remove the existing Watts valve and install the new 16” Cla-Val. Proposal includes a new Flange Coupling Adaptor and 16” bolt and gasket sets. Total Cost for Labor & Equipment to Install 16” Cla-Val=$3,774.00 Notes: 1. Payment terms are Net 30 on completion. 2. Axis is a Cla-Val authorized repair and installation contractor. If you have any questions on the above information, please contact me at 817-439-0709 or via e-mail at: joeswinnea@hotmail.com. Respectfully Submitted, Joe Swinnea 1 page sent via email to: klong@ci.sothlake.tx.us Axis Construction, LP P.O. Box 77916 Fort Worth, Texas 76177 October 9, 2019 ACLP #19128 PROPOSAL City of Southlake 1400 Main Street #320 Southlake, Texas 76092 Attn: Mr. Kurt Long RE: 2 - 12” Pump Control Cla-Vals –Remove and Replace at TW King Pump Station Per your request, we offer to provide this Proposal for the removal and replacement of 2- 12” Control Valves at the TW King Pump Station. Please note the following details : 1. We will furnish and install 2 - 12” Cla-Val 60-BT-11E 60-BTBYKC DI Body w/SS trim BSB 150# FLANGED GLOBE 120/60 E OPEN Control Valves. 2. Provide labor, equipment and material as required to remove the existing Watts valves and install the new 12” Cla-Vals. Proposal includes all labor, a crane for hoisting, equipment to separate flanges and 12” bolt and gasket sets. 3. We will provide sufficient manpower to allow valves to be installed in one day. Valves will be started up on the same day if pumps are functional, otherwise we will return for start-up when pump is operational. 4. I have talked to Tracy at Cla-Val regarding the wiring/operation issues. Both he and I think this is an issue that will need to be addressed in the SCADA/Control wiring. We will certainly see if we can make some field modifications that will address the issue. Our work includes removal and reinstallation of limit switches. I will have Tracy Staats with ClaVal come to site to assist with start-up of valves and confirm installation. 5. We have included modifying the insulated valve enclosures to account for the taller valves and longer stem travel. Valve enclosures are to be removed/disassembled by City prior to our arrival for valve change out. 6. Our valve cost is $19,458.00/ea x 2 = $38,916.00. Our labor, supplies and equipment cost = $7,850.00 Total Cost to Supply and Install 2- 12” Cla-Val as above =$ 46,766.00 Notes: 1. Lead time on valves is 6 weeks after receipt of order. Freight is included to Southlake. 2. Payment terms are Net 30 on completion. 3. Axis is a Cla-Val authorized repair and installation contractor. If you have any questions on the above information, please contact me at 817-439-0709 or via e-mail at: joeswinnea@hotmail.com. Respectfully Submitted, Joe Swinnea