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Item 7BMEMORANDUM December 27, 2010 TO: Shana Yelverton, City Manager FROM: Sharen Elam, Director of Finance Ext. 8042 SUBJECT: Ordinance No. 888, 2 " d Reading, Amending Article IV of Chapter 2 of the Code of Ordinances by establishing a new division relating to purchasing procedures. Action Requested: City Council consideration of Ordinance No. 888 to amend Article IV of Chapter 2 of the Code of Ordinances by establishing a new division relating to purchasing procedures. Background Information: Ordinance No. 888 establishes authority for the City Manager to make budgeted expenditures of $25,000 (threshold specified in Texas Local Government Code §252.021) or less without City Council approval. The ordinance also authorizes the City Manager to execute change orders of $25,000 (threshold specified in Texas Local Government Code §252.048(c)) or less. The maximum limit of the city managers approval of change orders is $25,000 cumulative or 25% on contract. The ordinance simply codifies the purchasing policy of the City, in accordance with the City Charter Chapter IX Section 9.43 Purchasing states "The Council may, by ordinance, confer upon the City Manger general authority to contract for expenditures without further approval of the Council for all budgeted items not exceeding limits set forth by the Council ". Financial Considerations: None Citizen Input/ Board Review: Public Hearing, 2 " reading scheduled for July 19, 2005 Legal Review: City attorney has reviewed Ordinance No. 888. Alternatives: Deny or amend ordinance Supporting Documents: Ordinance No. 888 Staff Recommendation: Approval of Ordinance No. 888 ORDINANCE= NO. AN ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS AMENDING ARTICLE IV OF CHAPTER 2 OF THE CEDE OF ORDINANCES BY ESTABLISHING A NEW DIVISION RELATING TO PURCHASING PROCEDURES; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Pity staff has recommended that the City Ccauncii adopt remain purchasing limits by ordinance, pursuasit to the City Charter, and the City Council deems it advisable to update Chapter 2 of the Code of Ordinances of the City of Southlake ar.00rdingly; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF SOUTHLAKE SIaCTION J. That Chapter 2 of the Southlake Code of Ordinances is hereby amended by the addition of a new Division 2l which shall he and read as follaNS. DIVISION 2. PURCHASING PROC EDURES Sec. 2 -20 Authorization of Expenditures; Purchase Limits. (a) The City Manager is authorized to make purchases of all supplies, apparatus, equipment, materials and other things requisite for public purposes for the City and 11D make all necessary contracts for work or labor to be done, material or other necessary things to be furnished for the benefit of the City where the amount of the expenditure for any purpose or contract does not exceed the sum specified in Texas Local Government Code §252_021(a) or its successor statute (b) The City Council shall have exclusive power and responsibility to make all other purchases of all supplies, apparatus, equipment, rmmerials, and other things requisite for publio purposes for the City and contracts for work or Labor tr} be done material or other necessary things to be furnished for the benefit of the City. (c) If an emergency exists, as provided by state law, the City Manager is authorized to approve expenditures provided that the !City Manager shall: present the expenditure to the City Council for ratification within 39 days. This includes procurements necessary due to. (1) public calamity; (2) preserve or protect the public health or safety of the City's residentts, or (3) unforeseen damage to public machinery, equipment or other property. VJ:'.Scu4h a 's =',On1 rsancess9}ut�haai€ g 0131 PF [L— Page 1 Sec.. 2 -21 Change Orders. (a) If changes in plans nr specification are necessary after the performance of a contract is begun or it is necessary to decrease or increase the quantity of worm to be performed, or of materials, equipment or supplies to be furnished, a charge order may be approved. The change order should be approved in writing and a copy issued to the vendor prior to starli ng tha additional work. (W If a change order involves a decrease or an increase of $25,000 or Iess, or the dollar amount specified in Tex_ (Local Gov't Code sec. 252.0 as amended, if greater, the City Manager is authorized by City Council to approve the change_ The original contract price may not be increased by more than this amount without formal City Council approval and the original contract price may not be increased by more than 25%. The original contract price may not be- decreased by more than 25% without the conserit of the contractor SECTION 2. This ordinance shall be cumulative of all provisions of ordinances of the City, except where the provisions of this ordinance are in direct conflict with the provisions of other ordinances, in which event the conflicting provisions of the other ordinances are hereby repealed- $ECTIOH 3. It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs and sections of this ordinance are severable and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, s ntences, paragraphs and sections of this ordinance, since the same w uld have been onacted by the City Council without the incorpmation in this ordinance of any such urimnstitutional phrase, clause, sentence, paragraph or section. SECTION 4. This ordinance shall be in full farce and effect from and after its passage and publication as required by law, and it is so ordained PASSED AND APPROVED ON FIRST RE/\DING ON THIS _.- ... -. - . DAY M 2005. W- 1SouthlakeVDrdinancer .%Purchasing.u12745 doe page- 2 ■I +'•ti ATTEST: CITY SECRETARY PASSED AND APPROVED ON SECOND READING ON THIS DAY OF , 2005_ MAYOR ATTEST: CITY SECRETARY Approved as to form and legality_ City Attorney Date: Approved: wV;X$ ihlal amOrdinanoestiPLirdharing .412705 dao Page 3