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HomeMy WebLinkAboutResolution No. 98-31 RESOLUTION N0. R98-31 A RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS, REQUESTING LEGISLATIVE ACTION PRESERVING LOCAL GOVERNMENT AUTHORITY TO SAVE TAXPAYER DOLLARS THROUGH COOPERATIVE PURCHASING PROGRAMS. * * * * * * * * * * WHEREAS, Chapter 791 of the Texas Government Code provides broad authority for Texas local government to cooperate in the provision of governmental services; and WHEREAS, purchasing is a governmental service; and WHEREAS, cities, counties, independent school districts, and special districts have used this authority extensively for many years to save staff time and taxpayer dollars; and WHEREAS, more than 850 local governments participate in the Houston-Galveston Area Council cooperative purchasing program to purchase, among other products, motor vehicles; and WHEREAS, the Texas Motor Vehicle Division and Board is actively seeking to restrict or end voluntary local government cooperation in purchasing motor vehicles through the Houston-Galveston Area Council. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY OF FRIENDSWOOD, STATE OF TEXAS: 1. Support continued local government ability to cooperate in all public purchasing programs, including vehicle purchases; and 2 . Requests the Texas Legislature take all action necessary to clarify and reaffirm the authority of local governments to cooperate in purchasing motor vehicles. PASSED, APPROVED AND RESOLVED this 5th day of October, 1998. f Mayor Harold L. Whitak City of Friendswood ATTEST: � Deloris McKenzie, TRMC City Secretary R98.31/LST03 H-GAC Local Government Cooperative Purchasing Program Overview Background—The Houston-Galveston Area Council of Governments, a political subdivision of the State, has conducted a cooperative purchasing program for local governments since 1973. The program saves tax dollars through quantity purchases. All purchases are made under publicly advertised sealed competitive bids. Items offered in the program range from garbage bags to fire trucks. Eight hundred sixty nine local governments have executed intergovernmental agreements allowing them to participate in the program. About 425 governments participate in the program each year. Legal Authority—Intergovernmental purchasing programs are specifically authorized under Chapter 791 of the Government Code. Issue—The Texas Motor Vehicle Division has filed a complaint action against H-GAC for violations of the Texas Motor Vehicle Commission Code. The Motor Vehicle Division contends that H-GAC's cooper {tive purchasing activities violate Motor Vehicle Code provisions on "brokering" of vehicles. Motor Vehicle Division personnel have indicated that the only solution acceptable to them is a complete discontinuation of the H-GAC program. H-GAC has filed a request for declaratory judgement in Travis County District Court, asking the Court to find that H-GAC's program is operating appropriately undsr the Interlocal Cooperation Act (Title 7, Ch. 791, Government Code.) Current Status—H-GAC has obtained a restraining order preventing Motor Vehicle Division action against program participants, participating low-bid dealers, and H-GAC itself. Cooperative purchasing activities are proceeding normally. Action—Legislative clarification of local government cooperative purchasing authorities is apparently necessary. Local government support in this effort is vital.