HomeMy WebLinkAbout2025-21-Resolution-Recinding Res 2023-15 and Adopting an updated Purchasing Policy-12/01/2025 CITY OF SANGER, TEXAS
RESOLUTION NO. 2025-21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS,
RESCINDING RESOLUTION 2023-15,AND ADOPTING AN UPDATED PURCHASING
POLICY AND PROCEDURES MANUAL; AUTHORIZING ITS EXECUTION, AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, it is prudent to establish sound purchasing policies and procedures for the
City; and
WHEREAS, The Purchasing Policy and Procedures Manual establishes the internal
process to be utilized to ensure that proper procurement methods are followed and are in
compliance with the City Charter,State and Federal laws,and good practices for local government;
and
WHEREAS,these procedures and processes promote efficiency,effectiveness,equity and
fairness in public purchasing; and
WHEREAS,the City Council finds that the passage of this Resolution is in the best interest
of the citizens of Sanger.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SANGER,TEXAS:
SECTION 1. The facts and recitals set forth in the preamble of this Resolution are
hereby found to be true and correct.
SECTION 2. That the City Council of Sanger, Texas adopts the Purchasing Policy and
Procedures Manual attached hereto and incorporated herein as Exhibit"A".
SECTION 3. That this Resolution shall become effective from and after its date of
passage.
PASSED AND APPROVED THIS 1ST DAY OF DECEMBER 2025.
APPROVED:
ATTEST: *f2
,9F SqN"1homas E. Muir, Mayor
tilAcLtuar
Kell Edw i City Secretary = (
•
Resolution—Purchasing Policy %; ' -••' �:�
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CITY OF SANGER
Purchasing Policy
&
Procedures Manual
City Council Adoption:
City of Sanger Purchasing Policy
Page 2 of 41
TABLE OF CONTENTS
Section 1: POLICY ......................................................................................................................... 5
1.1 Purpose & Policy ............................................................................................................ 5
1.2 Authority ......................................................................................................................... 5
1.3 Enforcement ................................................................................................................... 6
1.4 Legislative Updates ........................................................................................................ 6
1.5 Ad ditional Resources ...................................................................................................... 6
Section 2: PURCHASING ETHICS .................................................................................................. 7
2.1 Definitions ...................................................................................................................... 7
2.2 Purchasing Code of Ethics .............................................................................................. 7
2.3 No Employee Interest In Existing Contract ...................................................................... 8
2.4 Conflict of Interest .......................................................................................................... 8
2.5 Gratuities (Gifts and Entertainment) ................................................................................ 8
2.6 Supplier/Vendor Relations .............................................................................................. 9
Section 3: PURCHASING PROCEDURES ..................................................................................... 10
3.1 Department Responsibilities ......................................................................................... 10
3.2 Purchasing Thresholds ................................................................................................. 10
3.3 Emergency Purchases .................................................................................................. 12
3.4 Disaster Procurement ................................................................................................... 12
3.5 Sole Source Purchases ................................................................................................. 16
3.6 Cooperative Purchases ................................................................................................. 16
3.7 Procurement of Professional Services .......................................................................... 17
3.8 Public Works/Construction Procurement ...................................................................... 17
3.9 Change Orders .............................................................................................................. 18
Section 4: PURCHASING CARD ................................................................................................... 19
4.1 Definitions .................................................................................................................... 19
4.2 Obtaining a card ........................................................................................................... 19
4.3 Purchasing Card Restrictions ....................................................................................... 20
4.4 Using the Card .............................................................................................................. 20
4.5 Purchasing Card Transaction Flow Purchase ................................................................ 20
4.6 Manager Review ............................................................................................................ 20
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4.7 The Finance Department ............................................................................................... 20
4.8 Lost Receipts ................................................................................................................ 20
4.9 Resolving Errors and Disputes ..................................................................................... 21
4.10 Lost or Stolen Cards ..................................................................................................... 21
4.11 Declined Transactions .................................................................................................. 21
4.12 Audits and Compliance ................................................................................................. 21
4.13 Sales Tax Guidelines ..................................................................................................... 21
4.14 Violations ...................................................................................................................... 21
Section 5: METHODS OF PROCUREMENT ................................................................................... 22
5.1 Procurement Methods ................................................................................................... 22
5.2 Awarding the Bid .......................................................................................................... 23
5.3 Confidentiality of Information in Bids or Proposals. ...................................................... 24
Section 6: BOND, INSURANCE, AND INDEMNIFICATION ............................................................. 25
6.1 Bond Policy .................................................................................................................. 25
6.2 Types of Bonds ............................................................................................................. 25
6.3 Bond Requirements ...................................................................................................... 25
6.4 Insurance and Indemnification Policy ........................................................................... 26
Insurance Diagram................................................................................................................ 27
Section 7: CONTRACTS .............................................................................................................. 28
7.1 Definitions .................................................................................................................... 28
7.2 Contracts ...................................................................................................................... 28
7.3 Contract Management ................................................................................................... 28
Section 8: SURPLUS PROPERTY ................................................................................................ 29
8.1 Purpose ........................................................................................................................ 29
8.2 Definitions .................................................................................................................... 29
8.3 General ......................................................................................................................... 29
8.4 Personal Use Prohibitions And Permissions ................................................................. 29
Surplus Property Diagram .................................................................................................... 30
Section 9: GRANTS ..................................................................................................................... 31
9.1 Policy ............................................................................................................................ 31
9.2 Identification And Application ....................................................................................... 31
Section 10: TRAVEL POLICY ....................................................................................................... 32
10.1 Purpose ........................................................................................................................ 32
City of Sanger Purchasing Policy
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10.2 Objectives ..................................................................................................................... 32
10.3 General Provisions ....................................................................................................... 32
10.4 Compensation During Travel ........................................................................................ 33
10.5 IRS Accountable Plan ................................................................................................... 33
10.6 Authorization Requirements ......................................................................................... 33
10.7 Travel Authorization ...................................................................................................... 34
10.8 Requests for Travel Advance ........................................................................................ 34
10.9 Overnight Travel ........................................................................................................... 34
10.10 Local Travel ............................................................................................................... 37
10.11 Trip Cancellation ....................................................................................................... 37
10.12 Occasional Mileage Reimbursement .......................................................................... 37
10.13 Business Meals (Non-Travel) ..................................................................................... 37
10.14 Taxes ........................................................................................................................ 38
Section 11: MISCELLANEOUS GUIDELINES ............................................................................... 39
11.1 Bid Protests .................................................................................................................. 39
11.2 Debriefing ..................................................................................................................... 39
11.3 New Vendors ................................................................................................................. 39
11.4 Discrimination .............................................................................................................. 39
11.5 Placing Orders .............................................................................................................. 39
11.6 Quotes - Freight Charges And Fees .............................................................................. 39
11.7 Purchasing Orders ........................................................................................................ 40
11.8 Invoices ........................................................................................................................ 40
11.9 Revolving Credit Accounts ........................................................................................... 40
11.10 Sales Tax Exemption ................................................................................................. 40
11.11 Tie Bids ..................................................................................................................... 40
11.12 Vendor Performance .................................................................................................. 41
11.13 Non-Performing Vendors ........................................................................................... 41
11.14 Prompt Payment Act .................................................................................................. 41
City of Sanger Purchasing Policy
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Section 1: POLICY
1.1 Purpose & Policy
It is the policy of the City to conduct procurement functions efficiently, effectively, and in full compliance
with all federal and state laws, City Charter, and City policies and procedures.
The purpose of the Purchasing Policy is to provide guidance to all employees regarding procurement-
related activities. Purchasing is a function of all departments. Department Directors, Assistant Directors,
and Managers are responsible for ensuring that departmental purchases are in compliance with the City's
Purchasing Policy and approved budget.
Purchasing procedures are subject to the following:
A. All purchasing shall adhere to sound purchasing policies to ensure that Sanger taxpayers receive
the best value for city purchases.
B. All purchasing shall be made in accordance with the laws of the State of Texas, including
Chapters 252 and 271 of the local government code, City Charter, and City policies and
procedures.
C. Purchasing activities will be managed with proper controls, and all requisitions will be processed
in a timely manner to ensure sufficient practices.
D. It is the policy of the City to obtain City Council approval on any expenditures of $100,000 or
greater in accordance with State Statues.
E. In accordance with the city charter, the city council shall have the right to reject any and all bids.
1.2 Authority
The City Council's authority to contract for all goods and services is delegated to the City Manager as
outlined in this policy and to those employees to whom the City Manager delegates that responsibility.
The Chief Financial Officer interprets this policy. Any questions regarding the Chief Financial Officer's
interpretation and/or application of the policy may be taken to the City Manager for review and
consideration. The City Manager shall resolve any question about any interpretation and/or application of
the policy when there is a conflict.
Policy administration rests with the City Manager, and the City Manager reserves sole authority to
administer City operations.
Amendments and/or updates to the City of Sanger Purchasing and Procedures Manual must be
approved by resolution of the City Council. The City Manager may amend, revise, and make certain
changes to the Purchasing and Procedures Manual as deemed necessary in the event said changes do
not have the effect of revising the original force and intent of the policy and procedures set forth and
adopted by City Council.
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1.3 Enforcement
It shall be the authority of the City Manager and Chief Financial Officer to enforce all procurement
procedures.
A violation is defined as an employee's action or omission that indicates a disregard for purchasing laws,
policies, or procedures. A violation also may be noted if the employee's action was unintentional but
violates federal law, state law, city charter, policies, or procedures.
Personnel who attempt to contract in the name of the City, or make authorized or unauthorized purchases
outside the scope of this policy, may be subject to disciplinary action up to and including termination,
legal action, and personal financial liability.
If an officer or employee fails to comply with the competitive bidding or competitive proposal procedures
required by law, that person may be charged with a Class B misdemeanor. This includes a situation
where the officer or employee knowingly or intentionally authorizes separate, sequential, or component
purchases to avoid competitive bidding requirements.
Texas Local Government Code §§ 252.062, 252.063, and 271.029 provide criminal penalties for officers
and employees who knowingly violate state purchasing statutes.
1.4 Legislative Updates
Any amendments to State or Federal law will automatically take effect on the date stated in the
legislative update.
1.5 Additional Resources
For additional information, the following are listed for reference:
Texas Local Government Code, Chapter 252
https://statutes.capitol.texas.gov/Docs/LG/htm/LG.252.htm
Texas Local Government Code, Chapter 271
https://statutes.capitol.texas.gov/Docs/LG/htm/LG.271.htm
TML – Municipal Procurement Made Easy
https://www.tml.org/351/Purchasing
City of Sanger Purchasing Policy
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Section 2: PURCHASING ETHICS
It is the policy of the City of Sanger that the following ethical principles govern the conduct of all
employees involved, directly or indirectly, in the City's procurement process.
2.1 Definitions
Vendor is defined as a person or business that enters or seeks to enter into a contract with the City.
Family Member means a person related to another person within the third degree of consanguinity.
Family Relationship is a relationship between a person and another person within the second degree of
affinity.
Gift means a benefit offered by a person, including food, lodging, transportation, and entertainment
accepted as a guest.
2.2 Purchasing Code of Ethics
A special responsibility is imposed on all City of Sanger employees entrusted with allocating City funds.
Employees are held to the highest degree of integrity in government procurement to secure the best
financial results and comply with the procurement process.
Employees involved in purchasing and purchasing-related functions must remain independent, free of
obligation or suspicion, and entirely fair and impartial. Credibility and public confidence are vital
throughout the purchasing process. Every person employed by the City of Sanger and performing public
purchasing and purchasing-related functions shall abide by this code of ethics.
A. Refrain from holding business meetings with suppliers outside the office. If such a meeting is
necessary, carefully choose the location so there will be no perception by others in the business
community or your peers of impropriety.
B. Adhere to lawful instructions, using reasonable care, and only granted authority.
C. Strive to continually increase competition in supplier selection and endeavor to prevent any
collusive activities among suppliers. Avoid soliciting or accepting money, loans, credits, and
acceptance of gifts, entertainment, favors, or services from present or potential suppliers that
might influence or appear to influence supply management decisions.
D. Handle confidential or proprietary information with due care and proper consideration. Receive
consent from the originator of confidential information or proprietary ideas and designs before
using them for competitive purchasing purposes.
E. Treat supplies equitably, without preference or discrimination, and without imposing unnecessary
constraints on the competitive market.
F. Avoid the intent and appearance of unethical or compromising practices in relationships, actions,
and communications with vendors.
G. Refrain from conducting any private business or professional activity that would result in a conflict
of interest between the employee and employer.
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H. Prohibit business relationships with with whom you are a family member or with whom you have a
family relationship.
2.3 No Employee Interest In Existing Contract
Employees may not have any financial or other interest, in any proposed or existing contract, purchase
(materials & supplies), work, sale, or service to, for, with, or by the City.
A. Use of City employment, authority, or influence for personal betterment, financial or otherwise, is
prohibited.
2.4 Conflict of Interest
City employees and officials must become familiar with the requirements in Texas Local Government
Code Chapter 176, Disclosure of Certain Relationships with Local Government Officers; and Texas Local
Government Code Chapter 171, Regulation of Conflicts of Interest of Officers of Municipalities; and the
penalties provided therein.
If a conflict exists, the employee shall notify the Chief Financial Officer in writing and remove himself or
herself from the City purchasing process.
2.5 Gratuities (Gifts and Entertainment)
Employees shall not solicit or accept money, loans, gifts, favors or anything of value from current or
potential vendors/contractors that might influence or appear to influence a purchasing decision or the City
procurement process. If anyone is in doubt about whether a specific transaction complies with the policy,
the person should disclose the transaction to the Chief Financial Officer for a determination of
compliance.
A. The purpose of the policy governing gifts to public employees is to regulate attempts to influence
employees to use their authority or discretion to the advantage of the person making the gift and
prevent criminal conduct per City policy.
B. No officer or employee of the City shall accept, directly or indirectly any gifts, privileges or
employment from any corporation, business or entity enjoying business from the City. The City
recognizes that food items may be received from citizens and vendors as a 'thank you' for service
during holiday time and on other occasions. Such offerings, including gift donations, are
permissible and should be made for the enjoyment of everyone as available in that particular
department, division, or worksite.
C. Items that are not consumable on the premises shall be returned, donated to a City program, or
community organization or used as a door prize at a City event.
D. This policy is not intended to prohibit the employee or department from accepting discounted
values when carrying out departmental (non-personal) business or accepting courtesy generally
extended to business or governmental organizations within reason.
E. Employees can attend events, meals, and sponsored events from citizens and vendors at the
discretion of the employee's supervisor.
F. The City, as a whole, may accept consumable products as stated in item C above if the items are
provided by a vendor that is not currently under evaluation through a procurement process.
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G. Questions regarding the acceptance of gifts should be channeled through the Chief Financial
Officer.
2.6 Supplier/Vendor Relations
Employees of the City must:
A. Promote positive vendor relations through courtesy and impartiality in all phases of the
procurement process;
B. Handle confidential or proprietary information belonging to the City, fellow employees, or vendors
with care and proper consideration of ethical and legal ramifications and governmental
regulations;
C. Never use information gained confidentially in the performance of duties for profit;
D. Exhibit a friendly, cooperative, and yet objective relationship with all suppliers; this will help avoid
the appearance of partiality in business dealings; and
E. Actively strive to comply with City policies and federal and state laws regarding purchases from
small businesses and those owned by minorities and other disadvantaged groups.
City employees must discharge their duties impartially to ensure suppliers have fair and competitive
access to government procurement. City employees must conduct themselves in such a manner
as to foster public confidence in the integrity of the City of Sanger procurement opportunities. Each
employee must report any potential violations to the proper authorities.
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Section 3: PURCHASING PROCEDURES
3.1 Department Responsibilities
It is the responsibility of the Department Director and/or Authorized Designee to ensure the following:
A. The appropriate budget has been identified and is available;
B. The appropriate method of purchase has been identified. For any purchases expected to exceed
$100,000, the Finance Department should be consulted on ensuring the appropriate method of
purchase is selected;
C. City management and/or City Council approves of the purchase;
D. City policy is being followed;
E. State and Federal laws are being enforced;
F. Documentation for the purchase is attached to the PO as requested;
G. Invoices are submitted within five (5) days of receipt to adhere to the provisions of the Prompt
Payment Act as defined in Section 9.
3.2 Purchasing Thresholds
Purchasing thresholds are established to ensure fair competition among available, responsible vendors.
To effectively expedite and control purchases of goods and services that are subject to Local Government
Code, Chapter 252, the City of Sanger has adopted the following purchasing thresholds. Employees
should be aware that Chapter 252 of the Texas Local Government Code prohibits the use of "separate,
sequential, or component purchases" to avoid competitive bidding requirements:
Component Purchase is a purchase of the component parts of an item that in normal purchasing
practices would be purchased in one purchase.
Separate Purchases are purchases made separately of items that in normal purchasing practices would
be purchased in one purchase.
Sequential Purchases are purchases made over a period of items that in normal purchasing practices
would be purchased in one purchase.
At no time, shall purchases be broken down into smaller quantities or specialized activities so as
to avoid the requirements stated below. This practice is against State law and City policy.
PURCHASES $2,999.99 OR LESS
A. An approved department representative may source these items directly.
B. Multiple quotes are recommended, but not required for this threshold.
C. Purchases must be made with the purchasing card, under an authorized vendor charge account,
or by obtaining a purchase order prior to placing the order. The following documentation is
required:
a. Quote or proposal.
b. Contract executed by City Manager, if applicable. Insurance is required if the supplier is
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performing work on City property.
c. Insurance certificate, if applicable.
PURCHASES $3,000 TO $99,999.99
A. Requires three written quotes.
B. Requires a documented attempt to contact two Historically Underutilized Businesses
(HUBs) from HUB vendors within Denton County.
C. A purchase must be made by obtaining a purchase order prior to placing the order. The following
documentation is required:
a. All quotes/proposals obtained for this purchase (minimum of three).
b. HUB vendor information, if applicable. Indicate which HUB vendors were contacted. If no
HUB vendors were identified, please indicate so.
c. Contract executed by the City Manager, if applicable.
d. Insurance certificate, if applicable. Insurance is required if the supplier is performing work
on City property.
PURCHASES $100,000+
Purchases in amounts of $100,000 or greater are generally subject to requirements of the competitive bid
process unless specifically exempted by State Law.
Exceptions to the $100,000 Bid Threshold:
A. Professional Services
B. Emergency Purchases
C. Disaster Purchases
D. Sole Source Purchases
E. Cooperative Purchases
F. Other Exemptions as outlined in the Texas Local Government Code Chapter 252
APPROVAL AUTHORITY
AMOUNT
APPROVAL REQUIREMENTS
LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 REVIEW &
INSURANCE
$2,999.99 or
less
Authorized
Staff Director Finance
$3,000-
$24,999.99
Authorized
Staff Director Finance
$25,000 -
$99,999.99
Authorized
Staff Director City Manager Finance
$100,000 + Authorized
Staff Director City Manager City Council Finance
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3.3 Emergency Purchases
Texas statutes generally allow the local government to make "emergency or exempted purchases"
without competitive bidding as per Texas Local Government Code 255.022 "General Exemptions". A
political subdivision is generally exempted from competitive bidding or contacting Historically
Underutilized Businesses (HUB) if one of the following occurs:
Public Calamity – In the case of a public calamity, the prompt purchase of items is required to provide
for the needs of the public or to preserve the property of the political subdivision.
Preservation or Protection – The item is necessary to preserve or protect the health or safety of
residents of the political subdivision.
Unforeseen Damage – The item is made necessary by unforeseen damage to public property.
True emergencies almost always occur as a result of parts and labor needed for unforeseen repairs to
equipment that must be kept operational. When an emergency occurs, the need for quotes will be
eliminated; however, a written explanation must be indicated on the Statement of Compliance for
Irregular Purchases.
A. If the product or service is over $3,000 and under $100,000, obtain the City Manager's
authorization. Once authorization has been received, submit a requisition to obtain
a purchase order, then call the vendor to initiate repair services or order the needed materials.
The Purchase Order should be prepared and approved by both the Department Director and the
City Manager. Immediately, or as soon as feasible, submit a copy of the invoice to Purchasing.
B. In the event the emergency expenditure exceeds $100,000, follow the same procedures outlined
in item A above, and prepare an agenda item and/or resolution for City Council approval to
declare it an emergency and ratify payment for the products or services purchased.
C. In extreme cases involving a disaster, an emergency declaration will be made. All purchases
must be documented through proper state and federal forms and authorized by the Emergency
Operations Center designated employee(s).
D. An emergency created through neglect will not be processed as an emergency.
Typical examples of such neglect are:
A. Depletion of stock due to lack of planning.
B. Building or equipment needing repairs for some time suddenly becomes listed as an emergency
overnight within a short period with no substantial reason or facts.
C. Orders of materials for projects, most of which must be planned weeks or months ahead of time
and requested just before desired use.
3.4 Disaster Procurement
3.4.1 Purpose
This policy modifies the City of Sanger's normal procurement practices to assure that, in both emergency
and exigent circumstances caused by a proclaimed disaster or emergency, the City of Sanger is able to
acquire the goods and services required to address an immediate threat to life, public health, or safety, or
to eliminate/reduce an immediate threat of significant damage to improve public and private property
through cost-effective measures while still maintaining an effective purchasing process and complying
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with applicable local and state purchasing laws. Where the City is included in a major disaster or
emergency declared by the President of the United States, this policy also assures that City purchases
comply with Federal regulations applicable to FEMA disaster grant reimbursement as defined in Title 2 of
the Code of Federal Regulations, Part 200. (2CFR Part 200)
3.4.2 Definitions
For the purposes of this policy, a proclaimed disaster or emergency exists if:
A. The Governor has declared a state of emergency for an area that includes the geographic
territory of the City of Sanger, or
B. The Mayor of the City of Sanger has declared an emergency in the City.
Exigent circumstances are situations in which:
A. A disaster or emergency has been proclaimed, and
B. The public exigency for goods and services required to address an immediate threat to life, public
health, or safety, or to eliminate/reduce an immediate threat of significant damage to improved
public and private property through cost-effective measures, will not permit competitive
solicitation.
Emergency Operations Center (EOC) is the centralized location of emergency response and recovery
support operations during incidents.
Emergency Management Coordinator (EMC) is the employee delegated by the Mayor.
3.4.3 Delegations of Purchasing Authority in Exigent Circumstances
A. Delegation - If the City Manager determines that goods and services must be procured before the
City Council is able to assemble and approve purchases, the City Manager has the authority,
subject to the limitation set forth in subparagraphs 3.4.3 B and 3.4.3 C, to approve the immediate
rental or purchase of any equipment, supplies, services or other items necessary to respond to an
immediate threat to life, public health, or safety, or to eliminate/reduce an immediate threat of
significant damage to improved public and private property through cost-effective measures.
B. Limits of Single Purchase Authority - The City Manager or designee shall have the authority to
make individual purchases up to $100,000 on his or her signature alone. The City Manager shall
have the authority to make purchases above $100,000 up to a maximum of $250,000 when
countersigned by the Mayor or in the Mayor's absence countersigned by the Mayor Pro-tem, and
in his or her absence, another council member.
C. Limits of Aggregate Purchase Authority - The City Manager or designee shall have the authority
to make aggregate purchases up to $100,000 on their signature alone. The City Manager shall
have the authority to make purchases above $100,000 up to a maximum of $250,000 when
countersigned by the Mayor or in the Mayor's absence countersigned by the Mayor Pro-tem, and
in his or her absence, another council member.
3.4.4 Delegation Of Authority
Sub-Delegation: At any time that the City Manager is not available, his or her designee shall approve
purchases as allowed in this section.
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Sub-Delegation of Purchasing Authority: If neither the City Manager nor his or her designee is available,
the following department heads have the authority to rent or purchase from the nearest available source
any equipment, supplies, services, or other items necessary to respond to an immediate threat to life,
public health, or safety, or to eliminate/reduce an immediate threat of significant damage to improved
public and private property through cost-effective measures, up to a maximum of $10,000.
Department Heads include:
A. Deputy/Assistant City Manager
B. Chief Finance Officer
C. Police Chief
D. Fire Chief
E. Assistant Fire Chief
F. Public Works Director
Administrative Procedures:
A. As soon as possible after purchases are made under this section 3, the City Manager, their
designee, or department head shall submit to the Chief Financial Officer a requisition and a
notation that the commodity has been ordered on an emergency basis from the vendor
designated.
B. The Chief Financial Officer will inform the City Manager and City Council of any individual
purchase under this section with a contract amount greater than $10,000, and also whenever the
aggregate of purchases under this section is greater than $250,000.
C. Finance staff will obtain the City Manager's or the City Manager's designee's approval prior to any
purchase by a department head if the amount is $10,000 or more.
D. If the City Manager or his or her designee is unavailable, and the delay in getting his/her
signature would imperil life, safety, or improved property, the department heads as listed in 3.4.4
above may approve the emergency purchase of $10,000.
E. The Chief Financial Officer will expedite the verification of funds available and complete the
preparation of the purchase order.
3.4.5 Procurement Procedures in Exigent Circumstances
Upon receipt of requisitions under Section 3.4, the Chief Financial Officer shall prepare purchase orders
for the emergency equipment, supplies, services, or other items in accordance with the requirements of
this section.
A. Exempt Purchases are those less than $250,000 and do not require a formal bid.
B. Purchases greater than $250,000 may be made following the procedures specified in this
section. The signature(s) of the City Manager, Chief Financial Officer, and/or Department
Head are required.
Justification of Sole Source or No-bid Contracts, where exigent circumstances require immediate
Procurement from the nearest available source.
A. The Chief Financial Officer shall use the "Justification Form for Emergency Sole Source or No-
Bid Purchase."
B. Procurement should be limited to that portion of the work that must be performed immediately,
allowing subsequent procurement by competitive proposals of the remainder of the work.
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C. "Sole source" or "no-bid" acquisitions shall be necessary for one of the following reasons:
placement of emergency protective measures, procurement of a scarce commodity, goods, or
services or purchase or rental of emergency equipment, emergency consulting services,
emergency road clearance or other emergency requirements.
Provision for Alternate Bid Solicitation Procedures: The City's normal requirements for sealed bids shall
not apply to acquisitions under this section. However, the Department Head shall conduct telephonic or
other electronic bid solicitation from potential vendors or suppliers in lieu of written and/ or sealed bids in
an effort to obtain multiple competitive proposals when and if time allows in light of the exigent
circumstances.
Locations of Postings for Request for Proposals or Invitation to Bids: The Chief Financial Officer may
waive standard requirements for public posting of requests for proposals or solicitation of bids. Notices
soliciting bids or requests for proposals shall be posted at the City's designated Emergency Operations
Center.
Length of Time for Posting Requests: The Chief Financial Officer may shorten the normal bid period from
fourteen days to expedite the award of contracts for emergency equipment, goods, or services. The
Chief Financial Officer should seek to ensure that the shortened bid period allows multiple suppliers to
submit bids.
Number of Bids Required: Solicited bids that are non-responsive shall count towards the minimum
number of bids required when there is a declared emergency or disaster in the Jurisdiction. All such no-
bids must be documented as to the time, date, and person/company contacted, with a reason for no-bid,
if possible.
3.4.6 Notification and Ratification
Posting of Contracts and Awards – Under this section, all contracts awarded that exceed $100,000 shall
be presented to City Council for ratification and publicly posted within sixty (60) days.
Authority to Cancel Emergency Procurements: The City has the absolute authority to rescind a contract
for non-performance within 24 hours when a contractor or vendor, once awarded a contract, is unable to
perform under the terms of the contract and the resulting delay or non-performance presents an
immediate threat to life, public health, or safety, or to eliminate/reduce an immediate threat of significant
damage to improved public and private property through cost-effective measures.
1. Notification Requirement for Emergency Purchases: For any purchase in excess of $100,000, the
Chief Financial Officer shall report all such purchases to City Council within thirty (30) days of the
onset of the disaster.
2. Requirement for Separate Invoicing: All purchases or rentals made during proclaimed emergency
or disaster conditions shall require separate invoicing from routine (non- disaster related)
purchases. All invoices shall state the goods, services, or equipment provided and shall specify
where the goods or services were delivered. All invoices shall specify the locations where the
goods or services were used if at all possible.
3. Auditing of Invoices for Debris Clearance Prior to Payment: All invoices for debris clearance and
removal shall be audited by the City prior to payment to the vendor. Vendors shall be notified of
this requirement before the award of any contract for debris clearance and/or removal. Audits
shall be in accordance with procedures for debris removal monitoring specified in FEMA's
Publication 325, Debris Management Guide.
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4. Limitations of Disaster Purchasing Policy: For the purposes of this section, an emergency or
disaster shall be deemed to exist when a condition exists that presents an immediate threat to
life, public health, or safety or to eliminate/reduce an immediate threat of significant damage to
improved public and private property through cost- effective measures and a local emergency or
disaster has been proclaimed. Any purchases that do not meet the standard of being necessary
for responding to an immediate threat to life, public health, or safety or to eliminate/reduce an
immediate threat of significant damage to improved public and private property through cost-
effective measures shall follow the City's regular purchasing provisions.
5. Notwithstanding the terms of this policy, nothing contained herein shall conflict with Federal
procurement regulations as currently defined in 2 CFR Part 200.
3.5 Sole Source Purchases
Quotes are not required if the materials, goods, or supplies can only be purchased from a sole vendor, in
other words, a sole source. Reasonable efforts must be made to ensure purchases from sole sources
are correctly classified as such. Materials, goods, and/or supplies cannot be requested so as to remove
other suitable alternative vendors/sources. The department must attach justification to validate the sole
source procurement meets one of the requirements listed below.
A. The good/service is one-of-a-kind or patented, copyrighted, secret process or unique item;
B. The product is only available from a regulated or natural monopoly; or
C. The product is a component of an existing system that is only available from one supplier.
D. Sole source purchases are approved only after the lack of alternate sources has been determined
and proof of sole source is documented. The written justification should include one or more of
the following:
a. Statement on company letterhead from vendor attesting to the fact that the item(s) being
requested are only available from that vendor.
b. A statement from the Department Director or authorized designee providing information
concerning previous attempts to obtain competitive bids on the item(s) requested,
including the name of the company and person contacted, in an effort to find other
sources.
c. If the purchase is $100,000 or greater, it must be found to be a sole source by the City
Council before the purchase or contract is executed.
3.6 Cooperative Purchases
Texas Government Code, Chapter 791, and Texas Local Government Code, Chapter 271, authorize the
use of cooperative purchasing programs. These chapters authorize the City to use another entity's bid
and likewise allow another entity to use the City's contracts. Additionally, the statutes allow the City to
use a cooperative contract issued by an established cooperative agency.
The following must be included and established to utilize a cooperative contract.
A. The bid specifications/contract must have cooperative language.
B. The awarded vendor must have agreed to the terms.
C. An Inter-local agreement must be in place between the City and the issuing entity.
The City has established memberships and entered into inter-local agreements which promote
participation in cooperative purchasing programs. Purchasing Inter-local Agreements will not be executed
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to merely avoid the competitive process. The Finance Department shall manage and oversee all
Purchasing Inter-local Agreements. Departments should contact the Finance Department for assistance
with cooperative purchases and any reporting requirements.
3.7 Procurement of Professional Services
Professional services generally refer to those services performed by an individual.
Cities are prohibited by law from awarding a contract by competitive bidding for some professional
services including architects, interior designers, engineers, or certified public accountants. The
Professional Services Procurement Act established a set of procedures that must be followed to contract
for these services.
The selection of these providers shall be based on demonstrated competence, experience, and
qualifications of the firm. If a department is not sure if a service is a "professional service", the
department should contact the Finance Department before securing such services.
3.8 Public Works/Construction Procurement
Public Works projects are those projects that require the construction, repair, or renovation of a structure,
building, street, highway, bridge, park, water, and wastewater distribution facility, airport runway or
taxiway, drainage project, or other improvements or addition to real property.
A. Bid Type: Several processes are defined in the Texas Government Code Chapter 2269. The
Department Head shall consult with the Chief Financial Officer to determine which method will
provide the best value for the City.
B. Prevailing Wage Rates: Texas Government Code Chapter 2258 mandates that any Public Works
contract awarded by the City include the requirement to pay prevailing wage. The statue requires
the payment of a prevailing wage rate for laborers and mechanics and applies to both contractors
and subcontractors. Wages for workers on construction projects shall not be paid less than the
schedule of general prevailing rates of per diem wages as mandated. The prevailing wage rate or
a link with the wage rates with the date shall be included in public works projects. Rates may be
accessed at: https://www.dol.gov/agencies/whd.
C. Bonding Requirements: Bonds shall be executed in accordance with the Texas Government Code
Chapter 2253.
a. The bond must be executed by a corporate surety in accordance with the policies of the
City.
b. The corporate surety must be licensed by the State of Texas to issue surety bonds and
appear on the U.S. Treasury List of acceptable forms.
c. A Power of Attorney must be included.
d. Bonding shall be verified prior to the start of any project.
D. Insurance and Indemnification Requirements:
a. The minimum insurance required will be specified by the City of Sanger.
b. For construction projects, all contractors and sub-contractors, including those delivering
equipment or materials or performing a service shall provide workers' compensation for all
employees. General contractors are responsible for ensuring that sub-contractors carry
the same or higher insurance as those required.
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c. All contractors shall provide proof of coverage satisfactory to the City. Contractors shall
post required signs at the job site(s) informing all workers of their right to workers'
compensation coverage. Texas Labor Code §406.096.
3.9 Change Orders
A change order is the written documentation and approval process that must be performed when
changes in the scope of a project are proposed after the performance of a contract has begun. Such
changes may include a significant change in the quantity of work to be performed, the cost of work to be
performed, or the materials, equipment, or supplies to be furnished. A change order is usually written for
a construction contract, but it may be necessary for other types of contracts. Refer to Texas Local
Government Code Chapters 252 and 271.
Threshold for Change Orders
A "threshold" is defined as a financial limit on the amount of expenditures that can be authorized by the
City Manager on a construction project before requiring City Council approval. See Texas Local
Government Code Chapters 252 and 271.
A. Change Orders Greater than $50,000 – If the change order is greater than $50,000, it must be
approved by the City Council.
B. Change Orders Less than $50,000 – If the change order is less than $50,000, it may be approved
by the City Manager.
C. A change order or cumulative total of project change orders may not exceed 25% of the original
contract amount.
D. Once the total of all approved change orders on a project (including the contingency amount)
totals more than $50,000, all subsequent change orders must be approved by the City Council.
E. The original contract price may not be decreased by more than 25% without the consent of the
contractor.
F. Change orders shall be listed in number sequence on the Purchase Order.
Approval for Change Orders
If a change order is greater than $50,000 and is extremely time sensitive and qualifies as an emergency,
the City Manager may approve such a change order prior to City Council approval; however, such
change order still must be brought to the City Council as soon as possible for approval. Emergency
conditions are defined in this policy.
Contingency Funds
The City Council may establish a contingency fund for a construction project at the time of the award of a
bid to be used during the course of a project. A contingency fund maybe established at any dollar amount
above the bid award provided that is reasonable and prudent (10% or less as determined by
staff/budget.)
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Section 4: PURCHASING CARD
The Purchasing Card Program is designed to streamline and simplify the purchasing and accounts
payable processes for small-dollar purchases. It serves as a tool to reduce transaction costs, support the
timely procurement of materials and supplies, automate accounting data flow, and provide flexible
controls to help ensure appropriate use.
This Program is not intended to circumvent established procurement or payment procedures but rather to
complement and enhance them. Successful participation in the Program requires adherence to specific
record-keeping and reconciliation practices.
Each use of the Purchasing Card constitutes an obligation of City funds, and Cardholders must take this
responsibility seriously. Cardholders are personally accountable for all transactions made with the card
issued in their name. Any intentional misuse or fraudulent activity may result in disciplinary action, up to
and including termination.
All Purchasing Card transactions must comply with the City of Sanger's Purchasing Policy and
Procedures Manual.
Although the card bears the name of the individual Cardholder, it does not impact the cardholder's
personal credit. The card is issued to the City of Sanger and remains the property of the City. It is to be
used exclusively for official City business as defined in this guide.
4.1 Definitions
Cardholder: A City employee who:
1. Has been approved by the department director to receive a purchasing card.
2. Has read this guide, signed the Cardholder Agreement, and received a card issued in their name.
3. Is authorized to purchase items for their work group in accordance with the purchasing guidelines
of the city and with this Cardholder Guide.
Manager: A supervisor responsible for authorizing and reviewing purchases made by a Cardholder under
their supervision.
Program Administrator: A staff member designated by the Finance Department to manage the
Purchasing Card Program. This person is responsible for issuing cards, maintaining records, and
overseeing program compliance.
4.2 Obtaining a card
Only full-time employees of the City of Sanger are eligible to receive a Purchasing Card. A department
director must submit a completed Purchasing Card Request Form to the Program Administrator to initiate
the process.
Before receiving a card, employees must read and understand the Cardholder Guide, sign, and date the
Cardholder Agreement.
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Cardholders are responsible for the security of their assigned card and all transactions made with it.
Cards must be stored securely when not in use.
4.3 Purchasing Card Restrictions
A. Cards must not be used for personal purchases.
B. No single transaction may exceed $2,999.99. The single transaction limit may be lower than this
amount for some cardholders.
C. Restricted purchases include alcohol, bars, and gambling-related expenses. Purchases of this
nature, or from establishments primarily engaged in these activities, are not permitted.
D. Transactions must not be split to bypass the single transaction limit.
E. Each card is subject to a monthly spending limit; transactions exceeding the monthly cap will be
declined.
F. All purchases are subject to compliance with the City's Purchasing Policy and Procedures
Manual.
4.4 Using the Card
Cardholders must obtain proper approval before initiating a purchase. When placing an order, the
Cardholder must:
A. Confirm the price, quantity, and delivery details with the vendor.
B. Inform the vendor that the purchase is tax-exempt for the City of Sanger.
C. If necessary, obtain a Texas Sales and Use Tax Exemption Certificate from the Finance
Department before purchasing.
D. Request that receipts be included with shipped items for phone or mail orders.
E. The Cardholder is required to retain all receipts for purchases.
4.5 Purchasing Card Transaction Flow Purchase
A. Cardholder makes a purchase and obtains an itemized receipt.
B. A PDF (preferred) or photo of the itemized receipt is uploaded to the purchasing card portal,
along with a clear description and the appropriate Accounting Category (G/L Account Code).
4.6 Manager Review
A. The Manager reviews the uploaded receipt, description, and G/L code.
B. Any necessary corrections are made before the Manager approves the transaction in the
purchasing card portal.
4.7 The Finance Department
The Finance Department conducts a final review, approves the transaction for payment, and ensures
timely payment of the purchasing card.
4.8 Lost Receipts
If a receipt is lost or cannot be obtained prior to submission in the purchasing card portal, the cardholder
must complete a Lost Purchasing Card Receipt Affidavit. It is the Cardholder's responsibility to have this
form signed by the City Manager and scanned and uploaded to the purchasing card portal as part of the
transaction documentation. Photographs of the form will not be accepted.
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4.9 Resolving Errors and Disputes
If a billing error or dispute arises, the Cardholder should first attempt to resolve the issue directly with the
vendor. If resolution is not possible, the Cardholder must report the issue to their supervisor immediately.
4.10 Lost or Stolen Cards
In the event a card is lost or stolen, the Cardholder must:
A. Immediately contact the card issuer to report the loss.
B. Notify the Purchasing Card Program Administrator as soon as possible.
4.11 Declined Transactions
Should the Card be declined at the point of sale for any reason, the Cardholder should contact the
Purchasing Card Program Administrator. Every effort will be made to determine why the transaction was
declined.
4.12 Audits and Compliance
All Purchasing Card activity is subject to random audits by authorized personnel, including the City's
external auditors. These audits help ensure compliance with program guidelines and internal controls.
4.13 Sales Tax Guidelines
The City of Sanger is exempt from paying sales tax on purchases. Cardholders must ensure that vendors
do not charge sales tax and must provide a Texas Sales and Use Tax Exemption Certificate as needed.
The Cardholder must collaborate with the vendor to obtain a refund if sales tax is charged.
Note: The City is not exempt from paying Hotel Occupancy Taxes.
4.14 Violations
The purchasing card may be revoked at any time at the discretion of the City Manager. Each cardholder
must acknowledge receipt of the card, understand the rules governing its use, and sign the Cardholder
Agreement Form. Failure to comply with this policy may result in temporary suspension or permanent
revocation of the card, as well as disciplinary action up to and including termination of employment. The
Chief Financial Officer will notify the City Manager of any violation of the Procurement Card Policy.
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Section 5: METHODS OF PROCUREMENT
5.1 Procurement Methods
The Department Head will consult with the Chief Financial Officer to determine the best method of
procurement to purchase goods and services. The methods of procurement utilized by the City are as
follows:
1. Quote Method
Quotes are utilized to purchase goods and services up to $100,000. Examples include but are not limited
to maintenance and repair items, cleaning supplies, furniture, and office equipment. Purchases over
$3,000 and up to $100,000 are subject to the Historically Underutilized Businesses (HUB) law of the
State of Texas. Quotes can be obtained for one-time purchases or for the establishment of an annual
contract. The award is made to the vendor providing the lowest bid or the best value, as pre-determined
by the City. Negotiations are not permitted.
2. Competitive Sealed Bidding Method/Invitation for Bid (IFB)
A bid is utilized to purchase goods and services over $100,000 and is subject to the competitive bid laws
of the State of Texas. A bid is utilized for one-time purchases, or for the establishment of an annual
contract if there is a continuous need to purchase the same goods or services totaling in excess of
$100,000 annually. Award is made to the lowest responsive and responsible bidder, or to the bidder
providing the best value, as pre-determined by the City. Negotiations are not permitted.
In determining the best value for the municipality, the municipality may consider:
A. the purchase price;
B. the reputation of the bidder and of the bidder's goods or services;
C. the quality of the bidder's goods or services;
D. the extent to which the goods or services meet the municipality's needs;
E. the bidder's past relationship with the municipality;
F. 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;
G. the total long-term cost to the municipality to acquire the bidder's goods or services; and
H. any relevant criteria specifically listed in the request for bids or proposals.
3. Competitive Sealed Proposal (CSP) or Request for Proposal (RFP) Method
This method is used for the purchase of goods and services at any dollar threshold, where factors other
than price are considered in the award process. A pre-determined set of evaluation criteria is established,
and all proposals are evaluated against the criteria and scored accordingly. Negotiations are permitted in
order to obtain the best value for the City.
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4. Request for Qualifications (RFQ) Method - Purchase of Professional Services
The RFQ process is utilized to procure professional services, as defined in Texas Government Code,
Chapter 2254.
A. Cities are prohibited from using competitive bidding procedures to obtain services of certain
professional services as defined in Chapter 2254 of the Texas Local Government Code. For
contracts involving architectural, engineering, and land surveying services the City will select the
most highly qualified provider of those services on the basis of demonstrated competence and
qualifications; then attempt to negotiate a fair and reasonable price.
B. All Other Professional Services: The RFQ process is utilized to select a firm on the basis of
demonstrated competence and qualifications to perform the services, and for a fair and
reasonable price, for professional services other than those identified above, if the expenditure is
anticipated to be in excess of $100,000.
A pre-determined set of evaluation criteria is established, and all qualifications are evaluated against the
criteria and scored accordingly. Price cannot be disclosed or considered during the scoring process.
Negotiations are permitted with the most highly qualified firm only. Negotiations will continue until terms,
conditions, and a fair and reasonable price are agreed upon. If negotiations with the most highly qualified
firm are not successful, negotiations will cease with the current firm and begin with the next most highly
qualified firm. Once negotiations have ceased with a firm, re-opening negotiations with that firm is not
allowed.
5.2 Awarding the Bid
Best Value - If best value is utilized, below are a list of items the department may utilize to make the
determination of "best value" for the City.
A. Purchase price;
B. Reputation of the bidder;
C. The bidder's safety record;
D. Warranties;
E. The quality of the bidder's goods or services;
F. The extent to which the goods or services meet the City's needs;
G. The bidder's past relationships with the City or Department;
H. The impact on the ability of the City to comply with laws and rules relating to contracting with
historically underutilized businesses (HUB) and nonprofit organizations employing persons with
disabilities;
I. The total long-term cost to the City to acquire the bidder's goods or services; and
J. Any relevant criteria specifically requested in the bid or proposal.
In the event no bids are received, the Department may re-advertise or choose to not undertake a
contract. If only one bid is received, the City Council may choose to accept the bid, reject the bid and re-
advertise, or determine not to undertake the project.
Bids are opened and read aloud at the designated time and place. The bid/bids must then be presented
to City Council. The City Council must then award the bid to the lowest responsible bidder or, if
previously determined, the bidder with the "best value". The City Council does have the option to reject
all bids as well.
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Once a bid has been opened, it may not be changed or altered to correct minor errors in the
price. However, under some circumstances, a bidder may be able to withdraw a bid if it contains a
substantial mistake that would cause a great hardship if enforced against the bidder.
Note: Preference will be given to products with recycled materials, as long as the products m eet
applicable specifications.
5.3 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 offers 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. (Local Government Code, Chapter 252, Sec. 252.049)
C. Proposals must be made confidential until an award is made.
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Section 6: BOND, INSURANCE, AND
INDEMNIFICATION
6.1 Bond Policy
Bidders may be required (at the statutory limit or less) to provide certain bonds for Public Works/
Construction Contracts. This ensures that if the bidder attempts to withdraw after the bid is accepted, the
City will not suffer loss. The City will only accept sureties duly qualified and authorized. Personal sureties
will not be accepted.
The City may require bonding on other projects to mitigate risk. The City requires payment, performance,
and maintenance bonding to be provided.
6.2 Types of Bonds
A. Bid Bonds – The Bid Bond minimum limit is five percent (5%) of the total amount bid and would
typically apply to construction contracts. It is the City's option whether or not bidders to provide a
Bid Bond. Certified or cashier's check will not be accepted in lieu of a Bid Bond. Bid Bonds are
provided on surety forms. Bid Bonds will be returned to the issuing vendor upon request. Bond
must be requested within ten days of award.
B. Payment Bonds are required for Public Works contracts in excess of $50,000 and must be written
for 100% of the total bid price. The Payment Bond is for the protection of those performing work
as subcontractors or suppliers for the prime vendor/contractor.
C. Performance Bonds are required for all Public Works contracts when the vendor's bid exceeds
$100,000, and they must be written for 100% of the total bid price. These bonds are solely for the
protection of the City in the event of a contractor/vendor default under Contract terms and
conditions.
D. Maintenance Bonds can be written for a term relevant to the project. The coverage provided by a
Maintenance Bond is to guarantee against defective workmanship and materials.
6.3 Bond Requirements
A. All Bonds must be in the forms acceptable to the City Manager.
B. All performance bonds must be executed by such sureties as are named in the current list of
"Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as
Acceptable Reinsuring Companies", as published in Circular 570, as may be amended, by the
Financial Management Service, Surety Bond Branch, U.S. Department of the Treasury.
C. All performance bonds must be signed by an agent and must be accompanied by a certified copy
of the authority for him or her to act.
D. All performance bonds shall be obtained from surety or insurance companies that are duly
licensed or authorized in the State of Texas to issue performance bonds for the limits and
coverage required.
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E. Approval of bonding company as per ratings of the Texas Department of Insurance, or a
successor agency.
6.4 Insurance and Indemnification Policy
A. Contractors performing work on City property or public right-of-way shall provide indemnification
and certificates of insurance listing the City as an additional insured, or a copy of their insurance
policy(s) including a copy of the endorsements necessary to meet contract requirements, and
hold harmless and defense clauses.
B. Contractual agreement must contain a provision that transfers the risk of the project for the City t o
the contractor. Because the contractor may not have the financial resources to handle the risks
that are transferred in the contract, the City requires that insurance be purchased and maintained
by the contractor for financial security.
C. Workers' Compensation Insurance – Per Statute, contractors and subcontractors hired for
building and construction projects must provide certification of Workers' Compensation Insurance
for their employees regardless of the project's cost. See Texas labor Code, § 406.096.
D. All insurance documents must be verified and approved prior to the contract, purchase order, or
commencement of work to be performed.
Insurance diagram on the following page
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Insurance Diagram
City of Sanger
Minimum Insurance Requirements Summary
Agreement Type General
Liability Auto Work.
Comp.
Employers
Liability
Prof.
Liability
Installation
Floater
Builder’s
Risk
Garage
Liability
General Contract
- Services X X X X
Personal Services X X X
Professional
Services X X X X X
Construction X X X X X X
Special Events X X X
Min Coverage Amounts
Minimum Standard
Limit
$1M Per
Occurrence
$2M
Aggregate
$1M
Combined
Single
Limit
Texas
$500K
Accident
$500K
Employee
$500K
Limit
$1M Per
Occurrence
$2M
Aggregate
100%
Project
Completed
Value
100%
Project
Completed
Value
Total
Value of
Vehicles
Additional Coverages (in addition to standard requirements based on agreement type unless noted)
Construction
Contracts Employers Liability Limit: $1M/$1M/$1M; CGL Limit: $2M per occurrence and $4M aggregate
Garbage Collection
Services CGL Limit: $5M per occurrence and $10M aggregate; Auto Limit: $5M Combined Single Limit
Pollution Exposure $1M Pollution Liability (or equivalent) - Required for vendors or contractors performing work with pollution
exposure.
Railway Exposure $1M Railroad Protective Liability (insuring the railroad) - Required if performing work within 50 feet of a railway.
Liquor Exposure $1M Liquor Liability - Required for vendors who sell or distribute liquor.
Cyber Exposure $1M Cyber Liability (or equivalent) - Required for vendors with access to City networks or handle sensitive
data.
Footnotes:
(1) Waiver of subrogation shall be provided with the Workers’ Compensation coverage.
(2) The City shall be covered as additional insured on the GL and Auto policies.
(3) Policies of insurance shall not be canceled without a 30-day notice to the City.
(4) Insurance carriers must meet A.M. Best financial rating of A-VI or better.
(5) Combination of primary or excess policies that meet the required limits is acceptable.
(6) Agreements may require additional coverage and/or higher limits at the City’s discretion.
Note: City Manager may waive any insurance requirements for low cost/low risk contracts.
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Section 7: CONTRACTS
7.1 Definitions
Contract is a written, legally binding document or obligation.
Purchase Order is an official written document issued by a buyer, which is a commitment to pay the
seller (vendor) for the products ordered. The process ensures purchases are approved and within
budget. A Purchase Order or Contract is required when insurance and indemnification are needed. A
Purchase Order is a contract.
Annual contract is a contract for goods or services in which pricing is locked for a specific period of
time.
Evergreen contract is one that automatically renews after its initial term expires. The parties agree that
the contract rolls over automatically and indefinitely until one party gives the other notice to terminate the
contract.
7.2 Contracts
Purchasing items from a vendor other than the awarded vendor is a violation of the purchasing policy. An
exception may be granted due to extenuating circumstances and must be approved in writing by the
Chief Financial Officer.
All purchases greater than $100,000 must include a standard contract, insurance, bonds (if needed),
and a purchase order.
7.3 Contract Management
Contract management shall be used by all departments to manage all City-related contracts. Failure to
manage and control changes can result in an unintentional attempted modification to the scope of work,
the extension of the schedule, an increase in the contract cost, circumvention of management controls,
and diminished contractor accountability.
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Section 8: SURPLUS PROPERTY
8.1 Purpose
The purpose of the policy is to ensure disposal of City-owned property is completed in a consistent
manner throughout the organization.
8.2 Definitions
Disposal means the sale, trade, donation, or destruction of surplus property or equipment.
Item means surplus or obsolete movable assets such as vehicles and equipment, materials, and
unclaimed property.
Surplus means all supplies, assets, materials, and unclaimed property that are either obsolete at the end
of their life cycle or no longer required by operations.
Obsolete means a lack of functional use or out of date.
8.3 General
There are multiple formats for the disposal process. These include auction, transfer, trade-in, recycling,
and destruction. All methods require written approval.
A. Departments should contact the Finance Department prior to the disposal of any property
over $5,000. Departments should complete the required disposition forms.
B. Any item that is still operable and has a potential value shall be auctioned or traded during the
replacement process as it becomes obsolete.
C. Scrap Metal – Staff shall obtain from Finance authorization to recycle specific items. Funds
received for the recycling must be submitted to Finance and deposited. Written receipts from the
recycling center must be provided with the payment.
8.4 Personal Use Prohibitions And Permissions
City employees may purchase items from City issued (electronic) third-party auctions, provided that the
employee making the purchase was not involved in the decision to dispose of said item(s).
Process diagram on the following page
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Surplus Property Diagram
Steps Responsibility
1 Identify surplus property Department Director or designated Employee
2 Notify all departments of the availability of the
surplus property.
o Email to all departments/users
o Allow a minimum of seven days
Designated Department employee
3 If a department is interested, complete the City's
Surplus Property Form and submit it to Finance.
o Requesting department must pick up the
equipment within seven days.
Designated Department employee
4 If there is no interest, notify Finance. Complete
Disposition form and send it to Finance Designated Department employee
5 Finance will determine the best method of disposal
through:
o Auction
o Trade-In
o Recycling
o Donation
o Destruction
Finance
6 Prior to Sale:
The Department must remove all City of Sanger
identification, markings, or equipment (including
logos, department numbering, and equipment that
will be used on other equipment) from the equipment.
Designated Department employee
7 Move item to a secure location Designated Department employee
8 Take pictures and submit them to Parks Director
o For vehicles & equipment, take a
minimum of four pictures (one on each
side).
o Additional pictures of the inside,
damage to exterior or interior, etc.
o The more information/pictures provided
will help with the sell and fewer
questions will be generated by the
public.
Designated Department employee
9 Create a log with the identification, location, value,
and date. Finance/Parks Director
10 Proceed with auction. Auctions will be
completed quarterly or sooner, If needed. Finance/Parks Director
11 Receive funds and closeout auction. Finance
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Section 9: GRANTS
9.1 Policy
This policy establishes the responsibility for ensuring compliance and provides a review process that
shall be completed before signing any grant or award document and accepting said grant or award.
9.2 Identification And Application
Departments seeking grants must provide advance notice in writing to Administration and the Finance
Department. This ensures that those affected can review and understand grant requirements, including
Budget, Procurement, and auditors.
A. Submit grant requirements to Finance before application submittal.
B. Submit copies of all award documents, applications, and funding agreements to Procurement and
Finance before bidding.
C. If a federal grant, comply with all federal procurement standards in 2 CFR § 200.318 including to
those listed below:
a. The City (Non-Federal entity) must use its own documented procurement procedures,
which reflect applicable State, local, and tribal laws and regulations, provided that the
procurements conform to applicable Federal law and the standards identified in this part.
b. Non-Federal entities must maintain oversight to ensure that contractors perform in
accordance with the terms, conditions, and specifications of their contracts or purchase
orders.
c. Conflict of Interest: No employee, officer, or agent may participate in selecting, awarding,
or administering a contract supported by a Federal award if they have an actual, apparent
conflict of interest. A conflict of interest arises when the employee, officer, agent, or any
member of their immediate family, their partner, or an organization that employs or is
about to employ any of the parties indicated, has a financial or other interest or a tangible
personal benefit from a firm considered for a contract. The officers, employees, and
agents of the non-Federal entity may neither solicit nor accept gratuities, favors, or
anything of monetary value from contractors or parties to subcontracts.
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Section 10: TRAVEL POLICY
10.1 Purpose
This policy establishes standardized procedures for travel authorization, payment, and reimbursement to
ensure proper administrative and financial controls that support the timely and accurate processing of
travel-related expenses while promoting accountability in the use of City funds. This policy ensures that
City funds are used responsibly and that employees are reimbursed promptly for legitimate travel
expenses incurred on behalf of the City.
10.2 Objectives
A. Establish standardized procedures for obtaining prior approval, payment, and reimbursement of
travel expenses incurred while conducting official City business, including attendance at
conferences, workshops, or training.
B. Specify deadlines for completing reconciliations and reimbursements to ensure compliance with
City and audit requirements.
C. Promote accountability and transparency by reimbursing travel-related expenses based on actual
costs or approved per diem rates, subject to a maximum daily lodging allowance.
D. Ensure that all travel activities align with the City's mission, budgetary limitations, and applicable
laws.
10.3 General Provisions
A. As used in this policy, the term “travel expense” or “travel expenses” refers to the ordinary and
necessary costs incurred by an employee for official business when away from the employee’s
regular workplace, including transportation, lodging, meals, and registration fees for the
employee.
B. Any exception to this Policy must be approved in writing by the City Manager, with a copy
provided to the Finance Department.
C. The City is not obligated to reimburse any employee, contractor, or representative for travel
expenses that were not preapproved in writing by the Department Director and reviewed by the
Finance Department. Unauthorized travel may not be reimbursed and may result in disciplinary
action.
D. In addition to the preapproval required under item C above, all travel outside the state of Texas or
travel expenses that, in total, are estimated to exceed $5,000 must receive prior approval in
writing from the City Manager.
E. Every effort should be made to attend training, seminars, and conferences as close to Sanger as
possible to minimize travel expenses.
F. City funds may not be used to pay any portion of expenses for individuals not employed by the
City, including family members of employees.
G. If personal travel is combined with business travel, the employee is responsible for all costs
incurred before or after completion of official City business.
H. The employee may retain frequent flyer miles or hotel points earned during City travel; however,
such programs must not influence travel decisions.
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I. Employees must submit all requests for reimbursement of travel expenses, accompanied by
itemized travel-related expenditure receipts, to the Finance Department within 15 days of
completing travel.
10.4 Compensation During Travel
A. Employees shall receive compensation for travel time as provided under the Fair Labor
Standards Act (FLSA) and applicable City policies.
B. Compensation for travel outside an employee’s normal working hours (e.g., evenings, weekends)
will be calculated in accordance with FLSA and City guidelines.
C. Compensation for travel time applies primarily to non-exempt employees under the FLSA.
Exempt employees are not entitled to additional compensation for travel outside regular work
hours unless otherwise authorized.
10.5 IRS Accountable Plan
A. To ensure reimbursements are not treated as taxable income, all travel reimbursements are
processed under the IRS Accountable Plan framework. The City of Sanger reimburses business
travel expenses under an “Accountable Plan” in accordance with current Federal Tax
Regulations. To qualify, reimbursements must meet the following three requirements:
a. The expense must have a business connection and be reasonable in nature.
b. The employee must provide a reasonable accounting of the expenses (amounts paid up
to the allowable federal per diem rates are considered substantiated).
c. Any excess reimbursements must be returned within a reasonable period of time.
B. Under Federal Tax Regulation §1.62-2(k), the plan must also not exhibit a “pattern of abuse.” If
the City’s reimbursement or expense allowance arrangement demonstrates a pattern of abuse of
these rules, all payments made under the arrangement will be treated as part of a
nonaccountable plan. As stated in Federal Tax Regulation §1.62-2(c)(5), reimbursements made
under a nonaccountable plan are considered taxable income to the employee. Such payments
must be reported as wages on Form W -2 and are subject to applicable employment taxes (Social
Security, Medicare, and unemployment).
C. The travel policies, guidelines, and procedures described in this document apply to all City of
Sanger Officials (including Elected Officials, Appointed Officials, and Department Directors) as
well as City employees.
10.6 Authorization Requirements
A. City Manager – Travel and training by the City Manager do not require prior approval unless
specifically directed by the City Council.
B. City Council Members, Board Members, and Committee Members – Travel and training require
prior written approval from the City Manager.
C. Department Directors – Travel and training require prior written approval from the City Manager.
D. All Other Employees – Travel and training require prior written approval from the employee’s
Department Director. If the estimated total cost exceeds $5,000 or involves travel out of state,
prior written approval from the City Manager is also required. The Chief Financial Officer may
additionally request the City Manager’s written approval for any travel request they believe
warrants the City Manager’s consideration.
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10.7 Travel Authorization
A. All travel must be authorized before travel begins using a Travel Authorization Form. The City
Manager is exempt from this requirement unless specifically directed by the City Council.
B. The Travel Authorization Form, with all required documentation, must be completed, signed, and
submitted to the Finance Department at least 30 days before travel. Incomplete forms will not be
accepted. For travel exceeding seven (7) days, multiple forms must be used.
C. If requesting mileage reimbursement, an online mileage calculation (e.g., Google Maps) must be
submitted with the form. Mileage will be paid for the distance from Sanger City Hall to the
destination.
D. If requesting Per Diem (M&IE), documentation showing that meals are not provided at the event
must be attached.
E. If corrections are required, the Finance Department will return the form to the Department
Director. Revised forms must be resubmitted within seven (7) calendar days and no later than
fourteen (14) days before travel.
F. If documentation does not meet policy requirements, the Finance Department will review the
matter and notify the Department Director if additional information is needed. Upon approval, the
Finance Department will return a copy of the approved form to the Department Director.
G. When submitting invoices related to travel (e.g., hotel), employees must attach a copy of the
approved Travel Authorization Form. Failure to submit proper documentation may result in non-
reimbursement of travel expenses.
10.8 Requests for Travel Advance
A. A per diem and mileage travel advance may be requested when the combined total is at least
$100. Requests for amounts less than $100 will not be accepted.
B. Additional eligible expenses shall be reimbursed after the trip.
C. Travel advance requests must be submitted concurrently with the corresponding Travel
Authorization Form. A travel advance may be denied if the employee:
a. Submits the request less than fourteen (14) working days before the advance is needed.
b. Has not submitted the required travel documentation for travel for this or any previous
event.
c. Has not reimbursed the City for a prior advance that exceeded actual costs.
d. Requests an advance of less than $100.
D. Approved advances will be paid to the employee by direct deposit.
E. After approval, the Finance Department will provide a copy of the signed Travel Advance form to
the Department Director. The approved form authorizes payment, and the Finance Department
will schedule a direct deposit of the approved advance no later than three (3) business days
before travel.
F. Employees receiving a travel advance must verify actual expenses and return any excess funds
within 15 days of trip completion.
10.9 Overnight Travel
A. To qualify for overnight travel, the destination must meet the following minimum distance
requirements from Sanger City Hall:
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a. For single-day travel, the destination must be more than fifty (50) miles from Sanger City
Hall.
b. For multi-day travel, the destination must be more than thirty-five (35) miles from Sanger
City Hall.
B. Registration Fees – Registration fees for conventions, conferences, and workshops are eligible
expenses with supporting receipts and documentation, such as agendas or brochures.
Registration fees shall be paid by the City, preferably using a City-issued credit card.
C. Transportation
a. City Vehicle – City-owned vehicles may be used for travel with Department Director
approval when cost-effective. Employees may purchase fuel and necessary emergency
repairs and will be reimbursed with itemized receipts.
b. Personal Vehicle – Employees may use personal vehicles for out-of-town travel with
Department Director written approval if cost-effective.
i. Mileage Reimbursement – Mileage must be calculated using an online mapping
service (e.g., Google Maps) and attached to the Travel Authorization Form. The
reimbursement rate will be based on the current IRS mileage rate.
ii. Mileage must be calculated from Sanger City Hall to the destination.
iii. Employees receiving a monthly vehicle allowance are not eligible for mileage
reimbursement for destinations within fifty (50) miles (one way) of Sanger City Hall.
c. Rental Car – Rental cars may be used only when essential to the purpose of the trip and
when the total rental cost, including insurance and fuel, is more cost-effective than other
transportation options.
i. When renting a car, employees must purchase Loss Damage Waiver (LDW) and
Supplemental/Additional Liability Coverage.
ii. Employees must review the rental agreement to understand any actions that may
void insurance coverage.
iii. Rental car fees shall be paid by the City, preferably through the use of a City-
issued credit card.
d. Airline Travel
i. Air travel must utilize the most reasonable and economical rate available.
ii. Airline tickets shall be paid by the City, preferably through the use of a City-issued
credit card.
iii. One checked bag per employee is allowed. Baggage fees should be included at
the time of reservation, if possible.
iv. If a flight is cancelled, the employee must facilitate a refund or credit from the
airline. Any credit must be applied toward future City travel.
v. The City is not responsible for lost or damaged luggage or personal effects.
Employees should seek reimbursement through personal insurance or directly
from the responsible carrier.
vi. When traveling by air, the employee may submit mileage from Sanger City Hall to
and from the airport, subject to the terms of "Personal Vehicle" above.
e. Ground Transportation – Reasonable expenses for taxis, shuttles, rideshares, buses, or
tolls will be reimbursed at cost with itemized receipts. Employees should use the most
economical option available.
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D. Hotel Accommodations
a. Lodging shall be paid for by the City, preferably through the use of a City-issued credit
card. If the employee traveling does not possess a City-issued credit card, the Department
Director shall make a prepaid reservation using their own City-issued card.
b. Hotel folios must include itemized charges showing daily room rates and taxes.
c. Employees are encouraged to request government rates when available.
d. Additional costs related to family members are not reimbursable.
e. If business travel is combined with personal travel, separate reservations must be made,
and the employee is responsible for personally covering all expenses related to the
personal travel days.
f. The City is not exempt from paying Hotel Occupancy Tax; however, the City is exempt
from paying sales taxes on items such as hotel parking.
E. Meals and Incidental Expenses (M&IE)
a. The City will pay per diem meal rates for overnight travel based on the rates established
by the U.S. General Services Administration for the current fiscal year (www.gsa.gov) in
effect for the travel destination.
b. Receipts do not need to be submitted for the per diem.
c. The per diem rate covers meals and incidental expenses such as tips for porters and
baggage handlers.
d. Employees may not claim the full per diem rate for partial travel days. They are eligible to
receive one-half of the daily per diem on the first and last day of travel.
e. Per diem may not be claimed for any meals provided as part of a conference or event. A
copy of the conference agenda indicating which meals are provided must be attached to
the Travel Authorization Form to qualify for per diem reimbursement.
F. Parking – Parking fees are reimbursable with receipts. For unattended lots or meters without
receipts, employees must note the date, location, and amount paid.
G. Business Communications – Reasonable and necessary business-related expenses for phone,
internet, fax, or courier services are reimbursable with itemized receipts.
H. Ineligible Expenses – The following are not reimbursable:
a. Entertainment (e.g., movies, shows, sporting events).
b. Alcoholic beverages.
c. Laundry or valet services.
d. In-room mini-bar purchases.
e. In-room pay-per-view entertainment.
f. Rental cars for personal use.
g. Fines for traffic or parking violations.
h. Vehicle towing fees.
i. First-class airfare or luxury accommodations.
j. Personal gratuities not related to business travel.
k. Costs incurred by employees' failure to cancel reservations in a timely manner.
l. Other expenses deemed nonessential or unrelated to City business.
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10.10 Local Travel
A. Local travel includes all travel that does not include an overnight stay. Examples include
attendance at meetings, trainings, or site visits within the Dallas–Fort Worth metro area.
B. Registration Fees – Registration fees for conventions, conferences, and workshops are eligible
expenses with supporting receipts and documentation, such as agendas or brochures.
Registration fees shall be paid by the City, preferably using a City-issued credit card.
C. Transportation – Policies for vehicle use and mileage reimbursement are the same as those
described in the Overnight Travel section.
D. Parking – Parking fees are reimbursable with receipts or written notation when unavailable.
E. Ineligible Expenses
a. Meals not included in registration fees. The Internal Revenue Service rulings consider
reimbursement of meals to employees as taxable income to the employee when not
associated with travel including an overnight stay.
b. Hotel accommodations.
c. Alcoholic beverages.
d. Fines for traffic or parking violations.
e. Vehicle towing fees.
f. Travel between an employee's residence and regular work location.
g. Other expenses deemed nonessential or unrelated to City business.
10.11 Trip Cancellation
A. Employees must promptly notify the Finance Department if travel plans are cancelled.
B. All cancellations must be documented via email to both the Finance Department and the
Department Director.
C. If cancellation is due to a conflict with City business, the City will cover any resulting fees.
D. If cancelled for personal reasons unrelated to City business, the employee must reimburse the
City for any non-refundable costs.
E. If a travel advance has already been issued, the employee must return the funds within three (3)
working days or the amount will be deducted from the next payroll.
10.12 Occasional Mileage Reimbursement
A. Mileage for personal vehicle use not associated with a Travel Authorization must be submitted
using the Occasional Mileage Log (Appendix C).
B. Forms must be submitted monthly within ten (10) days after the end of each month.
C. Incomplete or late submissions may result in delayed reimbursement until the next pay cycle.
10.13 Business Meals (Non-Travel)
A. From time to time, it may be appropriate for food and refreshments to be provided in connection
with meetings, seminars, or other authorized City of Sanger functions.
B. Allowable expenses permitted in the following circumstances:
a. During emergencies such as natural disasters, major public safety events, or efforts to
restore essential services.
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b. For intra-departmental meetings or training sessions that continue through the meal
period, when employees are required to remain on-site and meal service facilitates
efficient and effective departmental operations.
c. For off-site business meals that have a clear and documented business purpose (e.g.,
lunch meeting with a consultant to discuss project scope).
d. For refreshments or off-site meals provided to interview panels that include external
participants.
e. For City-sponsored meetings involving members of the public.
f. For City-sponsored employee events that are authorized by the City Manager or the City
Council.
C. Non-allowable expenses not permitted.
a. Routine or regularly scheduled departmental meetings.
b. Events or gatherings that are primarily personal in nature, including birthdays, baby
showers, or similar celebrations.
D. All business meal expenses must be supported by:
a. An itemized receipt for all food and beverage purchases.
b. A list of all attendees present.
c. A clearly stated business purpose for the expense.
10.14 Taxes
A. The City is exempt from Texas Sales Tax. During travel, employees should make efforts to
remove sales tax from travel expenses incurred. Tax Exemption Certificates may be obtained
from the Finance Department for use during travel.
a. Overnight travel: Employees should present the City's sales tax exemption certificate for
any expenses other than meals that might include sales taxes. Because meals are
reimbursed through a per diem allowance, the City is not exempt from sales tax on meals,
as those are considered personal employee expenses.
b. Local travel: Employees should present the City's sales tax exemption certificate for any
purchases paid directly by the City.
B. The City is not exempt from Hotel Occupancy Tax and must pay all applicable lodging taxes.
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Section 11: MISCELLANEOUS GUIDELINES
11 .1 Bid Protests
All protests regarding the bid solicitation process must be submitted in writing to the Chief Finance
Officer within five (5) working days following the opening of bids. This includes all protests relating to
advertising, deadlines, bid opening, and other related procedures under the Texas Local Government
Code and protests relating to alleged improprieties or ambiguities in the specifications.
11 .2 Debriefing
Debriefings and requests for information shall be in accordance with Texas Government Code, §552
Texas Public Information Act.
Discussion of competing proposals is prohibited.
11 .3 New Vendors
All new vendors are required to submit a completed vendor packet.
11 .4 Discrimination
It is the policy of the City of Sanger to afford all suppliers an equal opportunity to bid on any contract.
This policy prohibits discrimination against any person because of race, color, sex, religious affiliation,
age, disability, or national origin, in the award or performance of any contract.
The policy requires its officers, employees, agents, and sub-contractors to adhere to this policy.
11 .5 Placing Orders
Funds must be available and in the proper account before submission of a requisition and before use of
a purchasing card.
11 .6 Quotes - Freight Charges And Fees
Include freight costs and fees in the total price when obtaining quotes. Freight and fees must be
considered in determining the award. All freight should be requested as FOB Destination (delivery
address) freight pre-paid and allowed.
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11.7 Purchasing Orders
Purchase orders are required before placing the order and sent to the vendor when the order is
placed.
A purchase order is required for any purchase not made on a City-issued credit card. In extenuating
circumstances, a purchase order may not be required. All exceptions will be reviewed and approved by
both the City Manager and the Chief Financial Officer.
11.8 Invoices
All invoices must be submitted to Accounts Payable within five days of receipt and include the
following information
A. Receiving information (received in full / received partial)
B. Signature of department representative
C. PO Number
The authorized purchaser is responsible for verifying that all materials/services are received in working
order and meet specifications. Once materials/services are received and verified as correct, indicate
receipt of materials on the invoice by noting "received in full" or "received partial" for each line item on
the Purchase Order.
A. Notify the vendor immediately if the quantity received does not agree with the vendor's packing
slip or the material does not conform to specification.
11.9 Revolving Credit Accounts
Credit accounts are available for the end user's use; however, they may only be opened or closed by
Finance.
11.10 Sales Tax Exemption
The City is exempt from sales, excise, and use taxes under Texas Tax Code, § 151.309. End users are
responsible for ensuring tax is not paid.
The City is NOT exempt from sales tax for food, lodging, or transportation-related purchases during
travel.
11.11 Tie Bids
If all factors and conditions relating to the bids are equal, the tie bid will be awarded to the local
vendor.
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11.12 Vendor Performance
The City does not have centralized receiving. Departments are responsible for receiving of goods and
services. Departments must document in writing items such as shortages, late delivery, or damaged
merchandise.
11.13 Non-Performing Vendors
When a vendor fails to perform according to the Agreement (Purchase Order, Annual Agreement,
Contract, and/or Specification), the Department Director or designee will:
A. Document the issues in writing to the vendor and to Purchasing.
B. Schedule a meeting to discuss the issues
C. Document the resolution to the issue, as agreed upon by the department and the vendor.
Documentation shall be in writing, signed by the department and the vendor. If a vendor's performance
remains non-compliant or otherwise unsatisfactory, the Department Director in conjunction with the City
Manager will make a joint determination to cancel the contract in accordance with the terms and
conditions of the agreement.
11.14 Prompt Payment Act
Department shall ensure Purchase Orders, invoices, and the appropriate documentation is submitted to
Finance within five (5) days, Invoices are to be paid no later than net 30 days.
Texas Government Code Chapter 2251 stipulates that all local governments shall pay for goods and
services within thirty (30) days of the delivery or invoice date or interest is automatically imposed.