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Home My WebLink About2003-04-08-9:00AM-Regular'r BRAZOS COUNTY BRYAN. TEXAS NOTICE OF MEETING AND AGENDA BRAZOS COUNTY COMMISSIONERS COURT F:,; THE COMMISSIONERS COURT WILL MEET IN REGULAR SESSION ON TUESDAY, APRIL 8, 2003 AT 9:00 A.M. IN THE COMMISSIONERS COURTROOM OF THE BRAZOS COUNTY COURTHOUSE, 300 EAST 26TH STREET, SUITE 115, BRYAN, TEXAS. 1. Invocation and Pledge of Allegiance - Commissioner Mallard. 2. Call for citizen input and/or concerns. 3. Presentation by representatives of the Bryan-College Station Economic Development Corporation regarding the 2002 Compliance Report for Koch, Inc., Betco, Inc. and Decision One. Consider and take action on agenda items 4 - 26: 4. Approving and presenting a Proclamation regarding Sexual Assault Awareness Month. 5. Approving and presenting a Proclamation regarding Fair Housing Month. 6. Recommendation by the Bryan-College Station Economic Development Corporation for appropriation of incentive funds for FMA. 7. Recommendation by the Bryan-College Station Economic Development Corporation for termination of the Koch, Inc. Tax Abatement. 8. Budget Amendment 02/03-21. 9. Payment of Claims. Commissioners Court Meeting Agenda April 8, 2003 Page Two 10. Personnel Changes of Status. 11. Lease Agreement with The Harvey Community Foundation for storage space on property on Elmo Weedon Road for County's heavy equipment. 12. Reappointing four members to the Brazos County Child Welfare Board. 13. Mutual Cooperation Agreement on Extraterritorial Peace Officer Jurisdiction related to a regional Anti-Drug Abuse Task Force with Grimes County, Madison County, the City of Bryan and the City of College Station. 14. Interagency Agreements with the City of College Station, the City of Bryan, and Grimes County for the filing of a joint grant application with the Criminal Justice Division of the Office of the Governor for funding for the Brazos Valley Narcotics Task Force. 15. Amendment Number 2 to the Construction and Maintenance Agreement for Bridge Replacement or Rehabilitation with the Texas Department of Transportation for a bridge on Democrat Road. 16. Selecting additional candidates to serve on the 2003 County Salary Grievance Committee. 17. Establishing a date and time to conduct a Public Hearing regarding the Storm Water Management Plan. 18. Acceptance of donated property for the Sheriffs Office, Jail Administration. 19. Approving the Revised Brazos County Investment Policy. 20. Approving the Brazos County Public Funds Collateral Policy. 21. The comprehensive Capital Asset Policy for the County to include the adoption of the modified approach for accounting and reporting infrastructure assets for financial purposes. 22. Terrorist Response Alert Program Location Application/Agreement with Cellular Charging Concepts, Inc. for the placement of two systems within the Courthouse. Commissioners Court Meeting Agenda April 8, 2003 Page Three 23. Revised County Purchasing Policies and Procedures. 24. Authorizing the Road & Bridge Department to enter Martha Albertson's property located off Edge School House Road for the purpose of clearing area for construction of a temporary fence to contain livestock during new road right-of-way clearing. Site is located in Precinct 2. 25. The Final Plat of Gold Subdivision, Lot 1, Block 1, 1.50 acres, John H. Jones Survey. Site is located in Precinct 4. 26. Approving the Corrected January, 2003 Treasurer's Report and the February, 2003 Treasurer's Report. 27. Announcement of interest items and possible future agenda topics. 28. Agency/Board/Committee reports by Court members. 29. Call for citizen input and/or concerns. 30. Adjourn. The Courthouse is wheelchair accessible. Handicap parking spaces are available. Any request for sign interpretive services must be made two business days before the meeting. To make arrangements, call (979) 361-4102. ~a 9 q- COMMISSIONERS' COURT REGULAR MEETING APRIL 8, 2003 A regular meeting of the Commissioners' Court of Brazos County, Texas was held in the Brazos County Commissioners Courtroom in the Courthouse in Bryan, Brazos County, Texas, beginning at 9:00 a.m. on Tuesday, April 8, 2003 with the following members of the Court present: Randy Sims, County Judge, Presiding; Tony Jones, Commissioner of Precinct 1; Duane Peters, Commissioner of Precinct 2; Kenny Mallard, Commissioner of Precinct 3; Carey Cauley, Jr., Commissioner of Precinct 9, Via Telephone; Karen McQueen, County Clerk, Absent. The attached sheet contains the names of the citizens and officials that were in attendance. Commissioner Mallard gave the invocation and led the pledge of allegiance. Under citizen input/and or concerns the following spoke: Dan Bates - said that the KBTX-TV had finally gotten the message right when they said he was concerned about Commissioner Cauley's health and the health of Brazos County. He went on to address the issue of former Constable Precinct 1, Raymond Day who he said was a hard working man with little salary and little or no appreciation. VOL 4,~9- PAGE qS Commissioners Court meeting April 8, 2003 2 The Court first heard a presentation by Bob Malaise, representative of the Bryan-College Station Economic Development Corporation, concerning the 2002 Compliance repor* for Koch, Inc., Betco, Inc. and DecisionOne. Betco an-! DecisionOne are in partial compliance while Koch, Inc. is in default. The County Judge read aloud a Proclamation designating the month of April 2003, as "Sexual Assault Awareness Month in Brazos County". The Court joins with the Texas Association Against Sexual Assault and the local Rape Crisis Center to urge all Texans to increase their awareness and learn how they can prevent sexual assault and all other forms of violence in communities across this great state. On motion by Commissioner Jones, seconded by Commissioner Peters the `ou t moved to proclaim the month of April 2003, as "Sexual Assault Awareness Month in Brazos County". The County Judge then presented the signed Proclamation to Ms. Lori Yarbrough, representing the local Rape Crisis Center and invited everyone to the candlelight vigil April 28th at Sue Haswell Park. The County Judge read aloud a Proclamation designating the month of April 2003, as "Fair Housing Month in Brazos County". The Court urges all citizens to become aware of and support the Fair Housing Law. On motion by Commissioner VOL `tX PAGE q Co Commissioners Court meeting April 8, 2003 3 Mallard, seconded by Commissioner Peters the Court moved to proclaim the month of April 2003, as "Fair Housing Month in Brazos County". The County Judge then presented the signed Proclamation to Ms. Angie Alaniz, representing the Brazos Valley Council of Governments (BVCOG). There will be an open house honoring Fair Housing at the BVCOG on April 23`a beginning at 3:30 p.m. The next matter before the Court was a recommendation by The Bryan-College Station Economic Development Corporation for appropriation of incentive funds for FMA. On motion by Commissioner Jones, seconded by Commissioner Peters, the Court voted unanimously to approve the recommendation for the appropriation of funds in the amount of $66,000 payable in three (3) annual payments of $22,000 each with the first payment due February 28, 2004. The Court next considered a recommendation by the Bryan- College Station Economic Development Corporation for termination of the Koch, Inc. Tax Abatement. On motion by Commissioner Jones, seconded by Commissioner Peters, the Court voted unanimously to terminate the abatement. The Court next considered Budget Amendment #02/03-21.1 through 21.4, which would reallocate funds for the Constable, Precinct 1 and Building Maintenance (2) and adjust the budget VOL- PAGE Commissioners Court meeting April 8, 2003 4 for the LEOSE Fund. On motion by the County Judge, seconded by Commissioner Jones, the Court voted unanimously to approve the budget amendment as submitted, a copy of which is attached. The Court next considered the following Claims as submitted by the County Treasurer for payment: 20040912 through 20041103 On motion by Commissioner Peters, seconded by Commissioner Mallard, the Court voted unanimously to approve the Claims as submitted. The Court proceeded to consider the change of status of employees as submitted on the attached Personnel Action Requests. On motion by Commissioner Jones, seconded by Commissioner Peters, the Court voted unanimously to approve the changes as submitted. The Court next considered approval of a lease agreement between Brazos County and the Harvey Community Foundation for rental of storage space on the property located on Elmo Weedon Road, in Brazos County, Texas, for the Road and Bridge Department's heavy equipment. Term of the lease is for the period of six (6) months commencing on April 1, 2003 and ending on September 30, 2003. The County will pay no rent in exchange for which VOL 4~ PAGE 18 Commissioners' Court meeting April 8, 2003 5 it shall perform such dirt moving work necessary to the premises and maintain the condition of the roads as required. On motion by Commissioner Mallard, seconded by Commissioner Peters, the Court voted unanimously to approve the lease agreement between Brazos County and the Harvey Community Foundation for the period stated above. A,copy of the Lease Agreement is attached. The Court next considered reappointing four members to the Brazos County Child Welfare Board. On motion by Commissioner Jones, seconded by Commissioner Peters, the Court voted unanimously to reappoint the following: Ms. Mary Lou Dizerega Ms. Marsy Clarke Dr. Nancy Algert Mr. Blake Bell The Court proceeded to consider approval of a Mutual Cooperation Agreement on Extraterritorial Peace Officer Jurisdiction related to a regional Anti-Drug Abuse Task Force with Grimes County, Madison County, the City of Bryan and the City of College Station. On motion by Commissioner Peters, seconded by Commissioner Mallard, the Court voted unanimously to approve the Mutual Cooperation Agreement to commence on execution and to end on May 31, 2006. A copy is attached. The next matter for consideration was the approval of Interagency Agreements with the City of College, City VOL 4,4Z. PAGE 91 Commissioners' Court meeting April 8, 2003 6 of Bryan and Grimes County for the filing of a joint grant application with the Criminal Justice Division of the Office of the Governor for funding for the Brazos Valley Narcotics Task Force. The grant is in the amount of $650,000.00. On motion by Commissioner Peters, seconded by Commissioner Jones, the Court voted unanimously to authorize the County Judge to make application and accept any grant funds that may be awarded. The Court next considered Amendment Number 2 to the Construction and Maintenance Agreement for Bridge Replacement or Rehabilitation with the Texas Department of Transportation for a bridge on Democrat Road. On motion by Commissioner Peters, seconded by Commissioner Jones, the Court voted unanimously to approve Amendment Number 2. A copy is attached. The next matter for consideration was the selection of additional candidates to serve on the 2003 County Salary Grievance Committee. On motion by Commissioner Jones, seconded by Commissioner Mallard, the Court voted unanimously to appoint the following individuals: Nancy Davis Paul Bullard VOL 4 9 ~ PAGE l o o Commissioners' Court meeting April 8, 2003 7 The Court next considered establishing a date and time to conduct a Public Hearing concerning the Storm Water Management Plan. On motion by the County Judge, seconded by Commissioner Peters, the Court voted unanimously to set the hearing at the Brazos Center on Monday, April 21, 2003 at 6:30 p.m. The Court next considered authorization fc* acceptance of donated property by Jail Deputy, Travis W. Bushman for use in the jail. Deputy Bushman has donatec a Dirt Devil Bagless Vision Vacuum model number 086905. On motion by Commissioner Peters, seconded by Commissioner Jones, the Court voted unanimously to accept the donated property. The next matter for consideration was the approval of the revised Brazos County Investment Policy. On motion by the County Judge, seconded by Commissioner Peters, the Court voted unanimously to approve the revised policy. A copy is attached. The Court next considered approving the Brazos County Public Funds Collateral Policy. On motion by the County Judge, seconded by Commissioner Peters, the Court voted unanimously to table consideration. The County Judge stated that any changes in collateral should come VOL /0'2'- PAGE 101 Commissioners' Court meeting April 8, 2003 8 before the Court first. Commissioner Mallard asked the Treasurer to ask the bank what reasons it has for needing the collateral changed immediately. Next on the agenda was the approval of the Comprehensive Capital Asset Policy for the County to include the adoption of the modified approach for accounting and reporting infrastructure assets for financial purposes. On motion by Commissioner Jones, seconded by Commissioner Peters, the Court voted unanimously to approve the Comprehensive Capital Asset Policy for the County. A copy is attached. The next item for consideration was the Terrorist Response Alert Program Location Application/Agreement with Cellular Charging Concepts, Inc. for the Courthouse. On motion by Commissioner Peters, seconded by the County Judge, the Court voted unanimously to approve the placement of two systems in the Courthouse and authorized the County Judge to execute the contract. This is at no cost to the County. The Court next considered approval of the Revised County Purchasing Policies and Procedures. On motion by the County Judge, seconded by Commissioner Peters, the Court voted unanimously to approve the revised policies V O L ~ 2 PAGE I O R Commissioners' Court meeting April 8, 2003 and procedures effective Monday, April 14rc Commissioner Mallard asked that the policy be put on the Website. A copy is attached. The Court next considered authorizing work outside of county rights-of-way for the health, safety and welfare of the general public. The Road and Bridge Department requested permission to enter the private property of Martha Albertson on Edge School House Road in Precinct 2 to clear an area for the construction of a temporary fence to contain livestock during new road right-of-way clearing. On motion by Commissioner Peters, seconded by Commissioner Jones, the Court voted unanimously to authorize the work. The Court next considered approval of the Final Plat of Gold Subdivision, Lot 1, Block 1, 1.50 Acres in Precinct 4. Richard Vance, County Engineer, stated that he had reviewed the plat and offered the following comment: 1) Add Note: All brush and small trees shall be cleared from the Public Utility Easement along SH 60. On motion by Commissioner Jones, seconded by Commissioner Mallard, the Court voted unanimously to approve the final plat of the Gold Subdivision subject to the developer complying with the exception noted by the County VOL 4 PAGE I o _3 Commissioners' Court meeting April 8, 2003 Engineer. The Court next considered approving the Corrected January 2003 Treasurer's Report and the February 2003 Treasurer's Report. On motion by the County Judge, seconded by Commissioner Peters, the Court voted unanimously to receive, approve and order filed as submitted the Corrected January 2003 Treasurer's Report and the February 2003 Treasurer's Report. A copy of each is attached to and made a part of these minutes. Under announcement of interest items and possible future agenda topics the following spoke: County Judge a) He received a call from the Waco Appeals Court informing him that redistricting will be heard this Thursday. The caller recommended that Brazos County have some representation in Austin on that date. State Senator Steve Ogden will carry this bill through the process. Commissioner Jones a) Reminded the Court that next week's meeting will be held at night. Commissioner Mallard a) Asked if there was an agenda item to discuss the possible hiring of a civil attorney. The County Judge and Commissioner Jones both thought it would be more appropriate to discuss the topic during budget hearings. 10 VOL qi;2- PAGE 104 Commissioners' Court meeting April 8, 2003 There were no Agency/Board/Committee reports by Court members. Under citizen input and/or concerns the following spoke: a) Dan Bates asked Commissioner Mallard if he has received the High Speed Rail minutes. Commissioner Mallard responded that he had not but had received a brochure that he would read over for information. b) Roger Wilson, speaking on behalf of Commissioner Cauley, asked Dan Bates to refrain from name calling, etc. and stated that he was very pleased with the job Commissioner Cauley was doing. There being no further business to come before the Court, the meeting was adjourned. 11 VOL 4a PAGE (05 The foregoing minutes of the Commissioners Court meeting held April 8, 2003 have been examined and are approved in oper Court this the day of V7~, 2003, in Bryan, Brazos County, Texas. Duane Peters Commissioner, Precinct 2 Carey Ca ey, Jr. Commissi ner, Precindt 4 "aeeltr Tony Jones Commissioner, Precinct 1 Kenny Mallar Commissioner, recinct ? C Karen McQueen County Clerk VOL 4X PAGE 10 p~.~~~, BRAZOS COUNTY OMMISSIONERS COURT MEETING ON g 2000? AT O NAME (1P (7ANT7 A TT(lTi/11T7P A PTr,frXT r m i c" L-LI) ri ar~rQ "z 3~Q Va- ccC) 9 - )em Fbi.~ ALLIANCE, LIMITED INCENTIVE Y '?POSAL THE RESEARCH VALLEY PARTN;?:RSHIP Project Description: Founded in 1983, FMA Alliance, Limited is a Houston-based company specializing in debt collection services. FMA is seeking a debt collection call center in Bryan-College Station. FMA Alliance employs carefully trained professional representatives who work with the latest computer hardware and software technology available in the collection industry. Due Diligence: The Research Valley Partnership staff has completed a economic impact analysis on the subject proposal which indicated the payout to Brazos County of under four (4) years and a annual IRR of over 26%.. FMA Alliance is a target industry which meets the guidelines established under the current Funding Agreement between Brazos County and The Research Valley Partnership. There has been a third party financial review of FMA Alliance reviewed with The Research Valley Partnership Board on January 15, 2003. At this meeting the Board approved the project. Proposal: Employment and Annual Payroll Levels FMA Alliance will create 121 new jobs and a new annual payroll of $3,255,000 over the next two years. Capital Investment FMA Alliance will invest $307,000 in new furniture, fixtures, and equipment in the lease space in the Village Shopping Center located on University Drive. Cumulative New Capital Investment New Jobs and New Annual Payroll As of December 31 2003 2004 2005 New Capital Investment - New FF&E New Jobs $307,000 $0 $0 Number of New Jobs 68 121 121 New Annual Gross payroll Annual Gross Payroll Increase $1,857,000 $3,255,000 $3,255,000 Recommendation: A total cash incentive payment of IM6,000 to be appropriated from the Brazos County Incentive Fund payable in three (3) arm, I payments of $22,000 each. The first $22,000 payment would be due on February 28, 2004 o anproximately one year anniversary of FMA's occupancy of the lease space at 700 Universe; Drive East in College Station, Texas. Two subsequent $22,000 payments would be due on Gh'P second and third year anniversary dates. Necessary Actions: (1) Approval of the appropriation of funds for the recommended incentive proposal to FMA Alliance under a performance based contract with The Research Valley Partnership. 110 2003 CONTRACT UPDATE KOCH MICRO LECTRONICS SERVICE COMPANY Situation: During the first quarter of 2000, the company made a strategic decision to withdraw from the specialty chemical business. This decision was made after the Company had made an investment of over $20 million for a new facility. Since that time, the staffing levels have been below the required compliance requirements and the plant has been on the market. While Koch met their capital investment requirements, they have been out of compliance for years 2001 and 2002 for employment and payroll (17 full time employees and $458,000 annual payroll). In April 2002, the Company completed the sale of the facility to GEM Microelectronic Materials, whom has now staffed the facility and brought it on line. Koch's tax abatement agreement was not assumed by GEM Microelectronic Materials. as part of the transaction. Koch did not apply for tax abatement in 2001 nor 2002. Recommendation: Notify Koch of their current default and of Brazos County's intent to exercise its right to recapture of a sum of money equal to all of the tax revenue that Brazos County has lost due to the partial abatement of the taxes from the inception of this agreement and to terminate the abatement agreement. Necessary Actions: (1) The Research Valley Partnership will notify Koch of the default and remedy on behalf of Brazos County. (2) The Research Valley Partnership will send a copy of the notice of action taken by the Brazos County to the Tax Appraisal District Office. BRAZOS COUNTY Randy Si s, County Jud e Execut on: 4L l!1 BRAZOS COUNTY, TEXAS BUDGET AMENDMENI(S) FOR THE 2002-2003 BUDGET YEAR NO. 02/03-21.1 to 21.4 On this the 8th day of April 2003 a- a regular meeting of the Commissioners' Court, the following members were present: Randy Sims, County Judge, Presiding Tony Jones, Commissioner, Precinct 1; E. Duane Peters, Commissioner, Precinct 2; G. Kenny Mallard, Commissioner, Precinct 3; Carey Cauley, Jr., Commissioner, Precinct 4; Karen McQueen, County Clerk. The following proceedings were held: THAT WHEREAS, on April 8, 2003 the Court heard and approved a budget amendment for the 2002-2003 budget year for Brazos County, Texas. WHEREAS, an expenditure is necessary due to the necessity to meet unusual and unforeseen conditions which could not be reasonably included in the original budget adopted August 23, 2002 the following amendment(s) to the original are hereby authorized, as described on the attached page(s)- ADOPTED AND APPROVED this the 8th day of April, 2003. THE COMMISSIONERS' COURT OF BRAZOS COUNTY, TEXAS. By: Original Randy Sims, County Judge County Clerk's Office and attached to the original budget Copies: County Auditor County Treasurer Commissioners' Court Minutes BRAZOS COUNTY, TEXAS BUDGET AMENDMENTS No. 02/03-21.1 4/8/2003 FD DIV ACCT PROJ DW.-R ACCOUNT NAME Increase Decrease 01 301011 600800 Dr. i lothin niforms $ 200.00 01 301011 606000 Dr. Office Sap plies 355.00 01 301011 618010 Dr. Travel 500.00 01 301011 653500 Cr. Gasoline 700.00 01 301011 678900 Cr. Vehicle Equipment 355.00 Constable Precinct 1 To reallocate bud et to allow necess ary ex enditures for departmental re uirements. Ar V// 4 snoop** ~ r+Fl~f. ii'iY'I" BRAZOS COUNTY, TEXAS BUDGET AMENDMENTS No. 02/03-21.2 aiunnnz FD DIV ACCT P OJ DR/CR ACCOUNT NAME Increase Decrease 18 300001 611511 Dr. LEOSE-Constable 1 $ 320.00 18 300001 611512 Dr. LEOSE-Constable 2 440.00 18 300001 611513 Dr. LEOSE-Constable 3 30.00 18 300001 611514 Dr. LEOSE-Constable 4 360.00 18 300001 611518 Dr. LEOSE-Count Attorney 300.00 18 300001 611519 Cr. LEOSE-District Attorney 20.00 18 300001 611528 Dr. LEOSE-Sheriff 6,710.00 18 18 470100 480630 Cr. Dr. Reserve Fund Balance LEOSE State Funding 780.00 8,920.00- LEOSE Fund To adjust the budget to the actual available funds per the FYE 9/30/02 fund balance and actual funds received from the state this fiscal ear. r f .,eh !u! "at. m.:.-i~~L EF aatd: b 1 kii dF BRAZOS COUNTY, TEXAS BUDGET AMENDMENTS No. 02/03-21.3 4/8/2003 FD DIV ACCT PROJ DR/CR ACCOUNT NAME Increase Decrease 01 170001 672860 Dr. Equipment - Other $ 2,000.00 01 170001 650500 Cr. Bldg Maintenance Supplies _ $ 2.000.00 Building Maintenance To reallocate budget to allow the purchases of a buffer. BRAZOS COUi-JY, TEXAS BUDGET AMENDMiEYTS No. 02/03-21.4 4/8/2003 FD DIV ACCT PROJ DR/CR ACCOUNT NAME Incerase Decrease 1'i 0001 715000 Dr Rental -Equipment $ 5,000.00 170001 672870 Cr E ui ment -Radios $ 5,000.00 To reclassify budget from Minor acquisition to contract rental Attached PERSONNEL CHANGE OF STATUS page 1 of 1 COURT DATE: April 8, 2003 DEPARTMENT: Personnel PURPOSE: Apero Personnel Change of Status DEPARTMENT NAME EMPLOYEE N AME................................. ACT ION REQUESTED TAX OFFICE DELIRA, MONICA RESIGNATION NARCOTICS TASK HERNANDEZ, REGINA NEW HIRE - FULL TIME CONSTABLE, PCT.2 GARCIA,TRACI Approved in Commissioners' Court: April 8, 2 County Judge's or Commissioner's Signature: (This copy to be attached to minutes) DISCHARGED LEASE TUTS LEASE is made and entered into this i-~ F-hC day of April, 2003, by and between THE HARVEY COMMUNITY FOUNDATION, (herein "Lessor"), and BRAZOS COUNTY, TEXAS acting by and through its duly elected Commissioners Court, (herein "Lessee"). WHEREAS, the Lessor owns property on Elmo Weedon Road; and WHEREAS, the Lessor desires to secure some property for the short term storage of heavy equipment; and WHEREAS, the Lessor is not interested in leasing the property for its monetary value, but has a need to have some work performed on the Property; and WHEREAS, the Lessee has the ability to perform such work. NOW THEREFORE KNOW ALL MEN BY THESE PRESENTS that for and in the consideration of the mutual benefits herein expressed the parties agree to a Lease on the following terms and conditions: LEASE TERMS A. PREMISES That certain tract or parcel of land being 22.71 acres situated in the RICHARDSON PERRY SURVEY, Abstract No. 44, Brazos County, Texas, being out of and a part of a Called 321 acre tract of land conveyed from Lavada Weedon to J.E. Weedon, Jr. by deed dated May 25, 1967, and filed of record in Volume 266, Page 574 of the Deed Records of Brazos County, Texas being more particularly described in Exhibit "A" attached hereto and made a part hereof for all purposes. B. TERM This Lease shall commence on April 2003 and terminate on September 30, 2004. ("Lease Term"). C. USE The Premises shall be used by Lessee to park and store heavy equipment used in its road repair and maintenance operation. D. RENT The Lessee shall pay no rent in exchange for which it shall perform such dirt moving work necessary to the Premises and maintain the condition of the roads as required. E. INSURANCE Lessor and Lessee shall procure such insurance as each deems necessary in their own discretion to protect their interests in the leasehold estate, at their sole cost. F. ADDRESSES FOR NOTICES All notices to either Lessor or Lessee shall be addressed as follows: To Lessor: The Harvey Community Foundation 7754 Hardy Weedon Rd. College Station, Texas 77845 To Lessee: Brazos County, Texas Judge Randy Sims 300 E. 26`h Street, Room 114 Bryan, Texas 77803 G. SECURITY DEPOSIT No security deposit shall be required. H. TAXES Lessor shall pay and be liable for all ad valorem taxes and personalty property taxes assessed against the Premises. 1. DEFAULT If Lessee fails to perform the work it has agreed to undertake pursuant to paragraph "D" above, the Lessor's sole remedy shall be to terminate this lease on three (3) days written notice to the Lessee. r vw 2 J. WARRANTY Lessee makes no warranty, express or implied, as to the quality of workmanship, quality of materials used for improvements on the Premises or fitness for a particular purpose relative to the work it has agreed to perform on the Premises pursuant to Paragraph "D" above. K. TERMINATION Either party may terminate this lease at any time upon three (3) days written notice. L. INDEMNITY Lessor, its successors and assigns shall hold Lessee harmless, defend (with counsel satisfactory to Lessee) and indemnify Lessee, its agents, employees, officers and elected officials, against any losses, claims, causes of action, liabilities, costs and expenses for claims arising out of the transportation to, the use of, or the deposit upon the Premises of hazardous materials as that term is defined by current federal law or such other substances, materials or wastes which are or become regulated under federal or state law. IN WITNESS WHEREOF, the parties hereto have executed, or have caused to be executed, this Lease in duplicate the day and year first above written. BR By: THE HARVEY COMMUNITY FOUNDATION By: Jeff Clary, who possesses a possi interest in the Premises, does hereby accept and agree to the terms of this lease. Jeff C `t 3L,,S nkg 1 AO MUTUAL COOPERATION AGREEMENT ON EXTRATERRITORIAL PEACE OFFICER JURISDICTION RELATE: TO A REGIONAL ANTI-DRUG ABUSE TASK FORCE (County/City/District) STATE OF TEXAS, County of Brazos This Agreement is entered into by and between the counties of Brazos Grimes, and Madison Counties, political subdivisions of the State of Texas, and the neighboring city of Bryan, a -municipal corporation situated in Brazos County, Texas; College Station, a municipal corporation situated in Brazos County, Texas; and the District Attorney's office in Madison County, Texas; political subdivisions of the State of Texas, acting under the authority of Chapter 362, Local Government Code, concerning certain law enforcement services provided through mutual cooperation of the signatory parties of this Agreement WITNESSETH: WHEREAS, the Counties, Cities, and Districts wish to provide for non-emergency law enforcement assistance in conjunction with the mutual aid anti-drug abuse activities of the Brazos Valley Narcotics Task Force. WHEREAS, the Counties, Cities, and Districts wish to cooperate in certain anti-drug abuse criminal investigations and related law enforcement activities, as further described in this Agreement; WHEREAS, the Counties, Cities, and Districts wish to provide only the additional territorial jurisdictional and investigative authority to certain law enforcement officers regularly employed by the Counties, Cities, and Districts, as further described in this Agreement; and WHEREAS, the Counties, Cities, and Districts believe it to he in their mutual best interests to enter into this Agreement; NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: ARTICLE I PURPOSE 1.01 The purpose of this Agreement is to allow certain law enforcement officers regularly employed by the Counties, Cities, and Districts to have certain extraterritorial police powers throughout the territorial jurisdiction of another party although outside the officers' normal territorial jurisdiction, as further described in this Agreement. ARTICLE 11 TERM 2.01 The term of this Agreement is to commence on the execution of this agreement by the Counties, Cities, and Districts and to end on the 31 rf day of m n , 200b. 2.02 This agreement on extraterritorial peace officer jurisdiction also terminates upon termination of the underlying Task Force Agreement between the parties. 4 ~M ARTICLE III RESPONSIBILITY AND AUTHORITY 3.01 Responsibility. The Counties, Cities, and Districts agree to accept responsibility for adhering to all pertinent federal, state, and local laws or regulations. 3.02 Authority. The Counties, Cities, and Districts assures each par:', by its signature, that it has entered into this Agreement by lawful resolution or order of its respective governing body or by the appropriate elected prosecutor. ARTICLE IV ARTICLE DEFINITIONS 4.01 "Anti-drug abuse investigation" includes peace officer activity involving lawful possession, offer to buy, sell, manufacture, deliver, or distribute a drug or controlled substance, or other law enforcement conduct attendant to an anti-drug abuse investigation. 4.02 "Compensation" means: (1) wage, salary, pension, equipment, clothing, medical, and other similar compensation and benefits, including injury or death benefits; and (2) reasonable expenses incurred for travel, food, and lodging. 4.03 "Contiguous" means touching, directly, or indirectly. 4.04 "Law enforcement officer" has the meaning assigned by Section 362.001, Local Government Code. The tern includes a peace officer. 4.05 "Neighboring" means located in the same county or a contiguous county. 4.06 "Police power" means the lawful authority of a peace officer to carry a weapon, conduct an investigation, make a report, detain, arrest, execute a search or arrest warrant, or engage in other law enforcement conduct attendant to anti-drug abuse enforcement, including traffic interdiction and any other general patrol activity approved by the Task Force supervisor. ARTICLE V CONSIDERATION 5.01 As consideration for this Agreement, the Counties, Cities, and Districts agree to participate in the lawful activities of the Task Force under any separate task force agreement, including the contribution of funds, equipment, or personnel. ARTICLE VI COMPENSATION AND QUALIFICATION 6.01 Compensation. The Counties, Cities, and Districts agree that: (1) each County shall provide for the compensation of each law enforcement officer regularly employed by the County and assigned to the Task Force; (2) each City shall provide for the compensation of each law enforcement officer regularly employed by the City and assigned to the Task Force; and . 3 J, Y ..u✓... T (3) each District shall provide for the compensation of each law enforcement officer regularly employed by the District and assigned to the Task Force. 6.02 Qualifications for Office. The Counties, Cities, and Districts agree that qualifications for office: (1) in a County constitutes qualification for office in a City or District; (2) in a City constitutes qualification for office in a County or District (3) in a District constitutes qualification for office in a City or County. 6.03 Nothing Additional. The Counties, Cities, and Districts agree that no additional oath, bond, or compensation is needed for an officer assigned to the Task Force. ARTICLE VII JURISDICTION 7.01 Territorial jurisdiction. (a) Each County agrees that a law enforcement officer, who is regularly employed by a City or District and assigned by the City or District to the Task Force, shall exercise throughout the County the police powers enumerated in Article 7.02. (b) Each City agrees that a law enforcement officer, who is regularly employed by a County or District and assigned by the County or District to the Task Force, shall exercise throughout the City the police powers enumerated in Article 7.02. (c) Each District agrees that a law enforcement officer, who is regularly employed by a County or City and assigned by the County or City to the Task Force, shall exercise throughout the District the police powers enumerated in Article 7.02. 7.02 Investigative jurisdiction. The Counties, Cities, and Districts agree that their respective law enforcement officers assigned to the Task Force shall exercise only police power as the term is defined in this Agreement. 7.02 Notification. (a) After initiating an extraterritorial investigation, detention, arrest, or other attendant exercise of police power under this Agreement, a law enforcement officer shall notify the Task Force supervisor. (b) After making an extraterritorial arrest under this Agreement: (1) in a City outside of the regular territorial jurisdiction of the County, a County law enforcement officer shall also notify the City chief of police or marshal; (2) in a District outside of the regular territorial jurisdiction of the County, a County law enforcement officer shall also notify the district attorney; (3) in a County outside of the regular territorial jurisdiction of the City, a City law enforcement officer shall also notify the County sheriff, (4) in a District outside of the regular territorial jurisdiction of the City, a City law enforcement officer shall also notify district attorney; (5) in a County outside of the regular territorial jurisdiction of the District a District law enforcement officer shall also notify the County sheriff; and (6) in a City outside of the regular territorial jurisdiction of the District, a District law enforcement officer shall also notify the City chief of police or marshal. 7.03 Command. While exercising extraterritorial police power under this Agreement, including conducting a Task Force investigation: (1) in a City outside the regular territorial jurisdiction of the County, a County law enforcement officer shall be under the formal command of the City chief of police or marshal, acting through the Task Force supervisor; (2) in a District outside the regular territorial jurisdiction of the County, a County law enforcement officer shall be under the formal command of the district attorney, acting through the Task Force supervisor; (3) in a County outside the regular territorial jurisdiction of the City, a City law enforcement officer shall be under the formal command of the County sheriff, acting through the Task Force supervisor; (4) in a District outside the regular territorial jurisdiction of the City, a City law enforcement officer shall be under the formal command of the district attorney, acting through the Task Force supervisor; (5) in a County outside the regular territorial jurisdiction of the District, a District law enforcement officer shall be under the formal command of the County sheriff, acting through the Task Force supervisor; and (6) in a City outside the regular territorial jurisdiction of the District, a District law enforcement officer shall be under the formal command of the City chief of police or marshal, acting through the Task Force supervisor. 7.04 Other Authority. Nothing in this Agreement limits the authority of a law enforcement officer to act under state law, including: (1) a citizen's arrest or an extraterritorial arrest authorized under Chapter 14, Code of Criminal Procedure, or other law; or (2) an action taken in the presence of and under the direction of or to assist another peace officer with appropriate territorial jurisdiction. ARTICLE VIII CONTINUATION OF TERRITORIAL AND INVESTIGATION JURISDICTION 8.01 Upon termination of this Agreement, the territorial and investigative jurisdiction of each law enforcement officer regularly employed by the Counties, Cities, and Districts will revert to the appropriate jurisdiction otherwise provided by law or other agreement. ARTICLE IX AMENDMENTS 9.01 This Agreement may be amended by the mutual agreement of all signatory parties in writing to be attached to and incorporated into this Agreement. ARTICLE X LEGAL CONSTRUCTION 10.01 In case anyone or more of the provisions contained in this Agreement shall be held to be invalid, illegal, or unenforceable in any respect, such an invalidity, illegality, or unenforceability shall not affect any other provision thereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. ARTICLE XI ENTIRE AGREEMENT a 1_ ~ ~Jruas APPROVED AS TO FORM: nature V Christopher C. Kirk, Brazos County Sheriff Printed name 03 Dat signed Signature Donald Sowell, Grimes County Sheriff Printed name Date signed Sigl e Dan Douget, Madison County Sheriff Printed name Qz 01 Date signed cAat~~ SSigiature David Patterson, BVNTF Commander Printed name 0 Date signed Signature Michael Strope, City of Bryan Interim Chief of Police Printed name Date signed Signature Edgar Feldman, City of College Station Chief of Police Printed name D to si ed o r Signature ! -S; ah Robert Wiatt, TAMU Director of Public Safety Printed name D to si ned Signature Joe Hester, City of Navasota Chief of Police Printed name Date signe t ature Duane Steen, Texas DPS Region 2 Captain Printed name George Sweetin, City of Madisonville Chief of Police Printed name 03-27- 07> :~~-0=3 Date signed Date signed INTERAGENC'Y AGREEMENT STATE OF TEXAS County of Brazos This Agreement is entered into by and between the County of Brazos, a political subdivision of the state of Texas, hereinafter referred to as "Brazos County", and the County of Grimes, a political subdivision of the State of Texas, hereinafter referred to as "Grimes County", pursuant to chapter 791 of the Texas Government Code, concerning inter-local cooperation contracts. WITNESSETH WHEREAS, Brazos County and Grimes County wish to file a joint grant application with the Criminal Justice Division of the Office of the Governor, State of Texas, for funding in the amount of $650,000 for the Brazos Valley Narcotics Task Force, and WHEREAS, Brazos County and Grimes County have agreed to contribute the total of $110,651 in matching funds if said joint application is approved; and WHEREAS, the source of funds would not normally be used for this purpose; and WHEREAS, Brazos County and Grimes County believe it to be in their best interests to join in the application to develop a Narcotics Task Force; and WHEREAS, Brazos County and Grimes County agree to each accept the responsibility to adhere to all pertinent federal state and local laws or regulations. NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: ARTICLE I PURPOSE 1.01 The purpose of this Agreement is to allow Brazos County and Grimes County to file a joint application for a grant with the Criminal Justice Division, which continues the Brazos Valley Narcotics Task Force. ARTICLE II TERM 2.01 The term of this Agreement is to commence on June 1, 2003, and to end May 31, 2004. °q f Page 43 INTERAGENCI' AGREEMENT (Continued) ARTICLE III CONSIDERATION 3.01 As consideration for this agreement, Brazos County and Grimes County agree to contribute a total of $110,651 in matching funds for the enhancement of the Brazos Valley Narcotics Task Force in the amounts as follows: Brazos County: $110,651 Grimes County: $0 ARTICLE IV ALLOCATION OF FUNDS 4.01 The specific allocation of Brazos County and Grimes County funds is set out in the attached Grant Budget, marked as Exhibit "A", and made a part hereof for all purposes. ARTICLE V OWNERSHIP OF EQUIPMENT 5.01 Upon termination of this agreement, ownership of equipment, hardware, and other non- expendable items will revert to the applicant for which it was acquired, subject to the approval of the Criminal Justice Division of the Governor's Office. ARTICLE VI AMENDMENTS 6.01 This agreement may be amended by the mutual agreement of the parties hereto in writing to be attached to and incorporated into this agreement. ARTICLE VII LEGAL CONSTRUCTION 7.01 In case any one or more of the provisions contained in this agreement shall be held to be invalid, illegal, or unenforceable in any respect such an invalidity, illegality, or unenforceability shall not affect any other provision thereof, and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. yy 'L Page 44 .t ia3 n-Y ks} ti, INTERAGENCV AGREEMENT (Continued) ARTICLE VIII ENTIRE AGREEMENT 8.01 This agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the subject matter hereof, and no other agreement, statement, or promise relating to the subject matter of this agreement which is not contained herein shall be valid or binding. EXECUTED IN DUPLICATE ORIGINALS, EACH OF WHICH SHALL VE THE FULL FO E EFFECT OF AN ORIGINAL, ON THIS THE DAY OF 2003. Randy Sims, ounty Judge Brazos Co tv EXECUTED IN DUPLICATE ORIGINALS, EACH OF WHICH SHALL HAVE THE FULL FORCE AND EFFECT OF AN ORIGINAL, ON THIS THE DAY OF 2003. 1 L ~ J e ixon, County Judge G ' es County j Page 45 7gsY 4d Page 101`2 Budget Page 2 of 2 ct ) ~1`,c.._ . sk` hf9 l Budget ,ar }fx Cash Match Program Income INTERAGENCY AGREEMENT STATE OF TEXAS County of Brazos This Agreement is entered into by and between the County of Brazos, a political subdivision of the state of Texas, hereinafter referred to as "County", and the City of Bryan, a municipal corporation situated in Brazos County, Texas, hereinafter referred to as "City", pursuant to chapter 791 of the Texas Government Code, concerning inter-local cooperation contracts. WITNESSETH WHEREAS, the County and the City wish to file a joint grant application with the Criminal Justice Division of the Office of the Governor, State of Texas, for funding in the amount of $650,000 for the Brazos Valley Narcotics Task Force, and WHEREAS, the County and the City have agreed to contribute the total of $162,685 in matching funds if said joint application is approved; and WHEREAS, the source of funds would not normally be used for this purpose; and WHEREAS, the County and the City believe it to be in their best interests to join in the application to develop a Narcotics Task Force; and WHEREAS, the County and the City agree to each accept the responsibility to adhere to all pertinent federal state and local laws or regulations. NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: ARTICLE I PURPOSE 1.01 The purpose of this Agreement is to allow the County and the City to file a joint application for a grant with the Criminal Justice Division, which continues the Brazos Valley Narcotics Task Force. ARTICLE II TERM 2.01 The tern of this Agreement is to commence on June 1, 2003, and to end May 31, 2003. n Page 43 INTERAGENCY AGREEMENT (Continued) ARTICLE III CONSIDERATION 3.01 As consideration for this agreement, the County and the City agree to contribute a total of $162,685 in matching funds for the enhancement of the Brazos Valley Narcotics Task Force in the amounts as follows: County: $110,651 City: $52,034 ARTICLE IV ALLOCATION OF FUNDS 4.01 The specific allocation of the County and the City funds is set out in the attached Grant Budget, marked as Exhibit "A", and made a part hereof for all purposes. ARTICLE V OWNERSHIP OF EQUIPMENT 5.01 Upon termination of this agreement, ownership of equipment, hardware, and other non- expendable items will revert to the applicant for which it was acquired, subject to the approval of the Criminal Justice Division of the Governor's Office. ARTICLE VI AMENDMENTS 6.01 This agreement may be amended by the mutual agreement of the parties hereto in writing to be attached to and incorporated into this agreement. ARTICLE VII LEGAL CONSTRUCTION 7.01 In case any one or more of the provisions contained in this agreement shall be held to be invalid, illegal, or unenforceable in any respect such an invalidity, illegality, or unenforceability shall not affect any other provision thereof, and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 2 Page 44 4!r~ ~ ' l Page 1 of 2 f ,,3 7 e..r . , « . . Budget Page 2 of 2 ` :~-7 Budget Cash Match Program Income E N fi'~' t+v' b rW k 8 INTERAGENCY AGREEMENT STA I F OF TEXAS County of Brazos This Agreement is entered into by and between the County of Brazos, a political subdivision of the state of Texas, hereinafter referred to as "County", and the City of College Station, a municipal corporation situated in Brazos County, Texas, hereinafter referred to as "City", pursuant to chapter 791 of the Texas Government Code, concerning inter-local cooperation contracts. WITNESSETH WHEREAS, the County and the City wish to file a joint grant application with the Criminal Justice Division of the Office of the Governor, State of Texas, for funding in the amount of $650,000 for the Brazos Valley Narcotics Task Force, and WHEREAS, the County and the City have agreed to contribute the total of $164,625 in matching funds if said joint application is approved; and WHEREAS, the source of funds would not normally be used for this purpose; and WHEREAS, the County and the City believe it to be in their best interests to join in the application to develop a Narcotics Task Force; and WHEREAS, the County and the City agree to each accept the responsibility to adhere to all pertinent federal state and local laws or regulations. NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: ARTICLE I PURPOSE 1.01 The purpose of this Agreement is to allow the County and the City to file a joint application for a grant with the Criminal Justice Division, which continues the Brazos Valley Narcotics Task Force. ARTICLE II TERM 2.01 The term of this Agreement is to commence on June 1, 2003, and to end May 31, 2004. 1 37 Page 43 INTERAGENCY AGREEM&NT (Continued) ARTICLE III CONSIDERATION 3.01 As consideration for this agreement, the County and the City agree to contribute a total of $164,625 in matching funds for the enhancement of the Brazos Valley Narcotics Task Force in the amounts as follows: County: $110,651 City: $53,974 ARTICLE IV ALLOCATION OF FUNDS 4.01 The specific allocation of the County and the City funds is set out in the attached Grant Budget, marked as Exhibit "A", and made a part hereof for all purposes. ARTICLE V OWNERSHIP OF EQUIPMENT 5.01 Upon termination of this agreement, ownership of equipment, hardware, and other non- expendable items will revert to the applicant for which it was acquired, subject to the approval of the Criminal Justice Division of the Governor's Office. ARTICLE VI AMENDMENTS 6.01 This agreement may be amended by the mutual agreement of the parties hereto in writing to be attached to and incorporated into this agreement. ARTICLE VII LEGAL CONSTRUCTION 7.01 In case any one or more of the provisions contained in this agreement shall be held to be invalid, illegal, or unenforceable in any respect such an invalidity, illegality, or unenforceability shall not affect any other provision thereof, and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. Page 44 INTERAGENCY AGREEMENT (Continued) ARTICLE VIII ENTIRE AGREEMENT 8.01 This agreement supersedes any and all other agreements, either oral _or in writing, between the parties hereto with respect to the subject matter hereof, and _^.o other agreement, statement, or promise relating to the subject matter of this agreement which is not contained herein shall be valid or binding. EXECUTED IN DUPLICATE ORIGINALS, EACH OF WHICH SHALL HAVE THE FULL FO CE EFFECT OF AN ORIGINAL, ON THIS THE ~9 DAY OF 2003. Randy Brazos EXECUTED IN DUPLICATE ORIGINALS, EACH OF WHICH SHALL HAVE THE FULL FORCE AND EFFECT OF AN ORIGINAL, ON THIS THE DAY OF , 2003. Ron Silvia, Mayor City of College Station Page 45 -%WAL Page loft Budget Page 2 of 2 l~ gx i~ I Budget Cash Match Program Income ORIGINAL County: CSJ: Prole- Road/Street/Highway: 15 Digit NBI Structure No.: Local Designation No.: Feature Crossed: STATE OF TEXAS § COUNTY OF TRAVIS Brazos 0917-29-074 BR 97(342)OX Cl- 153 17-021-0,-k A0153-001 Democrat Road Navasota River Relief CONSTRUCTION AND MAINTENANCE AGREEMENT For Bridge Replacement or Rehabilitation Off the State System AMENDMENT NO. 2 THIS Advance Funding Agreement Amendment (the Amendment) is made by and between the State of Texas, acting by and through the Texas Department of Transportation, hereinafter called the "State", and the County of Brazos, acting by and through its duly authorized officials, hereinafter called the "Local Government." THIS Amendment relates to waiver of the local match fund participation requirement with performance by the Local Government of an equivalent dollar-amount of structural or safety improvement work. The calculated local match fund participation requirement shall be based solely on the estimate of project costs included in this Amendment. WITNESSETH WHEREAS, the State and the Local Government executed an agreement on March 18, 1997 to effectuate the project to replace the bridge on CR 153, local road designation Democrat Road at the Navasota River Relief (Structure No 001); and WHEREAS, the previously executed agreement provides that the Local Government shall pay the State (1) 10% of the actual costs for preliminary engineering incurred by the State, (2) 10% of the actual cost of construction, construction engineering and contingency, or other local match fund participation percentages as adjusted for Economically Disadvantaged County (EDC) consideration under the provisions of Texas Transportation Code Section 222.053, and (3) 100% of the cost of any project cost item or portion of a cost item that is not eligible for Federal or State participation; and WHEREAS, in consideration of such EDC status that may be applicable for this project, the required local match fund participation for this project has been adjusted to N/A percent as authorized by Texas Transportation Commission Minute Order number N/A, dated N/A; and Bridge A PWP Page 1 - 9 Bridge Division 1 3-2002-A.IA WHEREAS, if unfit: the previously executed agreement the required local match fund participation included payment by the Local Government of a portion of the State's indirect costs for the project items that are eligibic for State or Federal participation, such payment(s) for indirect cost not already received by the Si ate, may be waived under the provisions of Texas Government Code Section 2106.08; and WHEREAS, Texas Administrative Code, Title 43, Section 15.52(3)(C) provides for the Local Government match fund participation requirement to be based solely on the estimated project direct cost; and WHEREAS, Texas Administrative Code (TAC) Title 43, Section 15.55(d) provides that the Local Government's required 10% fund participation in a project, or required percentage as adjusted for EDC consideration, may be waived provided the Local Governmental body commits by written resolution, attached hereto as Exhibit B, to spend an equivalent amount of funds for structural or safety improvement work on another bridge structure or structures provided, however, that the State will not reimburse funds already received under the terms of a previously executed agreement; and WHEREAS, such a waiver request and resolution has been received and considered by the State, including a finding by the State that the Local Government is in full compliance with load posting and closure regulations as defined in National Bridge Inspection Standards under 23 CFR 650.3, the State and the Local Government mutually agree to effectuate the waiver; and WHEREAS, the previously approved project on which the Local Government's required fund participation is being waived shall be hereinafter referred to as the "participation-waived project" (PWP); provided, however, that the term "project" when used elsewhere in the agreement and this amendment shall be construed as the "participation-waived project" unless the context clearly indicates otherwise; and WHEREAS, the "other" project or projects on which the Local Government proposes to perform structural or safety improvement work in a dollar amount equal to the Local Government fund participation amount waived shall be hereinafter referred to as "equivalent- match projects" (EMPs); and WHEREAS, if one or more advance funding payments have already been received by the State from the Local Government in accordance with the previously executed agreement, including payment for any of the State's indirect costs for the project items that are eligible for State or Federal participation, and, while no portion of these payments can be reimbursed to the Local Government, such payments should be credited against the dollar-amount of the equivalent- match project (EMP) work required to be performed by the Local Government under this agreement amendment. NOW THEREFORE, in consideration of the premises and of the mutual covenants and agreements of the parties hereto, the State and the Local Government do agree as follows. Bridge A PWP Page 2 - 9 Bridge Division L4 ' J 3-2002-A.1 A AGREEMENT Article 1. Description of Amendment Items Amendment Item A. - The second preamble pu7agraph under Agreement Article 4, Project Funding, is revised to read as follows: "However, the project being designated as a "participation-waived project", the Local Government's otherwise required 10% fund participation or required percentage as adjusted for EDC consideration, and less any local match fund participation to be paid or already paid to the State, is waived as further described in Article 16 herein. The Local Government shall pay the State 100% of the cost of any project cost item or portion of a cost item that is not eligible for Federal or State participation, and/or any changes in work made at the request of the Local Government." Amendment Item B. - In Agreement Article 4, Project Funding, the sub-articles relating to preliminary engineering costs, payments, and estimate of project cost are each amended to read as follows: " Preliminary Engineering Costs - The State will document its costs incurred for preliminary engineering with completion of an estimate of total project cost preparatory to letting to contract construction, and, if appropriate, shall notify the Local Government of its share of these costs when submitting notice pursuant to Article 4(D) and/or 4(E). Payments - If appropriate, forty-five calendar days prior to the State's scheduled date for the contract letting of the participation-waived project, the Local Government agrees to pay to the State an amount equal to the Local Government's agreed upon participation in the project. The Local Government shall promptly and faithfully provide payment of any funds required of the Local Government. The State will not pay interest on the funds provided by the Local Government. Funds provided by the Local Government will be deposited into, and retained in, the state treasury. Estimate of Project Direct Cost - An estimate of the direct cost of the project is provided in Exhibit A of this agreement amendment which supersedes all previous estimates. Under 43TAC§15.55(d), the calculated local match fund participation requirement shall be based solely on this estimate." Amendment Item C. - The caption-title of Agreement Article 5, Project Administration and Accomplishment of Work, is amended to read as follows: "Article 5. Project Administration and Accomplishment of Work on the Participation- Waived Project." Bridge A PWP Page 3 - 9 Bridge Division 3-2002-A.IA ~t.a l `O Anendment Item D. - Agreement Article 5F is added which reads as follows: "Receive and keep on-file documentation of the work completed on the equivalent-match projects as descrbed in Article 17C herein." Amendment Item E. - Article 16, Equivalent-Match Project(s), is added which reads as follows: "Article 16. Equivalent-Match Project(s) In consideration of waiver of the Local Government's otherwise required 10% fund participation on the participation-waived project or required percentage as adjusted for EDC consideration, the Local Government shall perform an equal dollar-amount of or safety improvement work, less any local match fund participation on this project to be paid or already paid to the State, on other deficient bridges or non-bridge classified drainage structures, referred to as equivalent-match project(s), as follows:" List of District Engineer Approved Equivalent-Match Project(s) (EMP) for Participation-Waived Project (PWP) Location (and structure identification number, if a licable On School Bus Route? (Yes/No) Historic Bridge? Yes/No) Description of Structural or Safety Improvement Work Estimated Cost Dilly Shaw Tap Road At Mathis Creek 17-021-OAA0139-002 Yes No Replace Existing Bridge With a New Structure $76,825 Total EMP work credited to this PWP (See Note Balance of EMP work credited to associated PWP s $76,82 V 82 $0 Associated PWP(s) Control-Section-Job (CSJ) None Amount to be Credited to Associated PWP (s) None Note This total should typically equal the "Balance of Local Government Participation" that is waived as shown in Exhibit A. Bridge A PWP Page 4 - 9 Bridge Division ' O 3-2002-A.IA D 4-IZ9 Amendment Item F. - Article 17, Responsibilities of the Local Government on Equivalent-Match Projects, is added which reads as follows: "Article 17. Responsibilities of the Local Government on Equivalent-Match Projects A. The Local Government shall be responsible for all engineering and construction, and related costs thereto, and complying with all applicable state and federal environmental regulations and permitting requirements for the bridge structures. If requested, the State may provide assistance in these areas, as may be appropriate in order to facilitate the completion of the equivalent-match project(s), utilizing the existing resources of the department. B. The structural or safety improvement work on the equivalent-match projects shall be performed within three calendar years after the contract award of the participation-waived project. C. Documentation of completion of the structural or safety improvement work on the equivalent-match project(s) shall be provided by the Local Government by letter to the State's applicable District Engineer, no later than 30 calendar days after work completion. This documentation shall include copies of the final structural design plans used in constructing or reconstructing bridges under the equivalent-match project(s). D. Failure by the Local Government to adequately complete the equivalent-match projects within the stated three-year period, shall result in the Local Government being excluded from receiving such waivers for a minimum of five years." Amendment Item G. - Article 18, Notices, is added which reads as follows and which supercedes all previous provisions for notices: "Article 18. Notices All notices to either party by the other required under this Agreement shall be delivered personally or sent by certified or U.S. mail, postage prepaid, addressed to such party at the following addresses: State: Mr. Lonny G. Traweek, P.E. Bryan District Engineer 1300 North Texas Avenue Bryan, TX 77803-2760 Bridge A PWP Page 5 - 9 - `f Bridge Division 3-2002-A. I A Local Government: Honorable Randy Sims Brazos County Judge 300 East 26`h Street, Suite 114 Bryan, TX 778035327 All notices shall be deemed given on the date so delivered or so deposited in the mail, unless otherwise provided herein. Either party may change the above address by sending written notice of the change to the other party. Either party may request in writing that such notices shall be delivered personally or by certified U.S. mail and such request shall be honored and carried out by the other party." Article 2. All other provisions of the original agreement are unchanged and remain in full force and effect. Article 3. Signatory Warranty The signatories to this amendment warrant that each has the authority to enter into this agreement on behalf of the organization they represent. Bridge A PWP Page 6-9 Bridge Division 3-2002-A.1 A IN TESTIMONY HEREOF, the parties hereto have caused these presents to be executed in duplicate counterparts. THE LOCAL By: Signature Randy Sims Printed Name of Signatory Title: County Judge, Brazos County Date: THE STATE OF TEXAS Executed for the Executive Director and approved for the Texas Transportation Commission for the purpose and effect of activating and/or carrying out the orders, established policies or work programs heretofore approved and authorized by the Texas Transportation Commission. By: m " 440• Mary Lou R .E. Director, Bridge Division Date: 4"- 1 r' ^ 03 Bridge A PWP Page 7 - 9 Bridge Division 3-2002-A.lA LaJIIBIT B RESOLUTION OR ORDINANCE OF, LOCAL GOVERNMENT Bridge A PWP Page 9 - 9 ~R< 53 Bridge Division 3-2002-A. IA RESOLUTION The State of Texas County of Brazos WHEREAS, the federal off-system bridge program is administered by the Texas Department of Transportation (the State) to replace or rehabilitate structurally deficient and functionally obsolete (collectively referred to as deficient) bridges located on public roads and streets off the designated state highway system; and WHEREAS, Brazos County, hereinafter referred to as the Local Government, owns bridges located and identified as shown on Page 4 of this Resolution; and WHEREAS, projects to remedy these bridges are included in the currently approved program of projects as authorized by Texas Transportation Commission Minute Order Number 108653 dated September 27, 2001; and WHEREAS, the usual fund participation ratio for projects on such program is 80 percent federal, 10 percent state and 10 percent Local Government; and WHEREAS, Texas Administrative Code, Title 43, Section 15.55(d) (43 TAC Section 15.55(d)) provides that under specified conditions the 10 percent Local Government match fund participation requirement may be waived with agreement by the Local Government to perform, or cause to be performed, an equivalent dollar amount of structural improvement work on other deficient bridges or deficient mainlane cross-drainage structures within its jurisdiction, such a project of structural improvement work being referred to as an "equivalent-match project"; and WHEREAS, the estimated local match fund participation requirement on the approved federal off-system bridge projects is $31,240, hereinafter referred to as the "participation-waived" projects, such participation requirement the Local Government proposes be waived and in return perform or cause to be performed equivalent-match project structural improvement work. THEREFORE, BE IT RESOLVED that the Local Government perform, or cause to be performed, the following equivalent-match project(s) in return for waiver of the local match fund participation requirement on the approved federal off-system bridge program (participation- waived) projects not yet awarded: Page 1 of 4 LOCATION ON SCHOOL DESCRIPTION OF BUS ROUTE? STRUCTURAL IMPROVEMENT WORK ESTIMATED COST Dilly Shaw Tap Road Yes Replace Existing Bridge At Mathis Creek W L11 A New Structure 17-021-OAA0139-002 Total Estimated Cost of Equivalent-Match Project Participation Received, Check No. 1022986 Total Local Government Participation Estimated Local Government Participation Total Remaining Local Government Participation $ 76,825 $ 76,825 $ 3,055 $ 79,880 $ 11,050 $0 BE IT FURTHER RESOLVED that in receiving this waiver the Local Government acknowledges its obligation to conform with all conditions of 43 TAC Section 15.55(d); such conditions that include but are not restricted to the following: 1. The Local Government must be currently in compliance with load posting and closure regulations as defined in National Bridge Inspection Standards under US Code of Federal Regulations, Title 23, Section 650.303. 2. The equivalent-match project work increases the load capacity of the existing bridge or other mainlane cross-drainage structure, or upgrades the structure to its original load capacity with a minimum upgrade to safely carry school bus loading if located on a school bus route. 3. In performing, or causing to be performed, the equivalent-match project(s), the Local Government assumes all responsibilities for engineering and construction, and complying with all applicable state and federal environmental regulations and permitting requirements for the structures being improved. 4. The work on the proposed equivalent-match project(s) has not begun and will not begin until the local match fund participation waiver approval process has been completed. 5. The Local Government will be allowed three years after the contract award of the participation-waived project to complete the structural improvement work on the equivalent- match project(s). 6. Should this waiver request be approved, an appropriate written agreement or amendment to a previously executed agreement will be executed between the State and Local Government. Page 2 of 4 a y 41: ► s~ PA"jSED, APPROVED AND BRAZOS CGUNTY on this the ADOPTED by the COMMISSIONERS COURT OF 2S14Dayof 20 o_3 . Randy Si County J dge, Brazos County Attest: County Clerk, Brazos County Page 3 of 4 PARTICIPATION-WAIVED PROJECTS BRAZOSCOUNTY PROJECTS PARTICIPATION BY BRAZOSCOUNTY Project: BR 97(342)OX $ 31,240 Control: 0917-29-074 CR 153: At the Navasota River Relief Road: Democrat Road NBI: 17-021-OAA0153 -001 Total Estimated Participation 31,240 The Participation by Brazos County shown above is based upon the latest estimated construction cost for this project plus the preliminary engineering costs shown in the consultant work authorization and the estimated cost of the State's oversight of this design. This amount does not reflect the money previously paid by Brazos County for its 10 percent participation in the cost of preliminary engineering nor does it include previously approved equivalent-match participation. Page 4 of 4 _ 1 57 BRAZOS COUNTY, TEXAS PROPERTY ACQUISPI'ION, TRANSFER AND DISPOSUION FORM Transaction -zG-a3 Property Tag Number: Purchase Order Number: Type of Transaction: Donated Property Received Transfer to Surplus: Transfer to Other Department: Date Property Sold At Auction: Date Transferred From Surplus To another Dept.: Description of Property: include serial numbers, VIN numbers, or license plate numbers where applicable, include color, make, model and any other identifying marks if not tagged Moving Property From: qty r, Signature Moving Property To: 'flC 40C Department Name u rued i atµre s~ Moving Property From Surplus to Another Department: Signature of Receiving Dept. n Property Auctioned Signature of Purchasing Dept. Authorized Signatures include persons authorized to sign purchase orders. D PLEASE SEND COMPLETED FORM TO AUDITORS OFFICE. / / / IN THE COMMISSIONERS' COURT OF BRAZOS COUNTY, TEXAS RESOLUTION: WHEREAS, Section 2246.005 (a) of the Government Code (The Public Funds Investment Act) and Section 1.1 of the Brazos County Investment Policy mandate that the Commissioners' Court (governing body) of Brazos County (investing entity) adopt by resolution a written investment policy regarding the investment of its funds and funds under its control; and WHEREAS, Section 2246.005 (d) of the Government Code (The Public Funds Investment Act) and Section 4.2 of the Brazos County Investment Policy direct the Commissioners' Court of Brazos County to adopt a separate written investment strategy for each of the funds or group of funds under its control; and WHEREAS, Section 2246.005 (e) of the Government Code (The Public Funds Investment Act) and Section 1.1 of the Brazos County Investment Policy require that the Commissioners' Court adopt a written instrument by resolution stating that it has reviewed the investment policy and investment strategies and that the written instrument so adopted shall record any changes made to either the investment policy or investment strategies; it is, THEREFORE, RESOLVED by the Commissioners' Court of Brazos County, Texas, that the Brazos County Investment P icy and Ines ent Stra gies be adopted as reviewed with revisions noted on this the day of 2003. e - IL~G Karen McQueen, Brazos ounty Clerk INVESTMENT POLICY FOR BRAZOS COUNTY 1.0 INVESTMENT AUTHORITY AND SCOPE OF POLICY 1.1 This policy serves to satisfy the statutory requirements of Local Government Code 16.112 and Government Code Chapter 2256, Public Funds Investment Act, Sub-chapters A and B, to define and adopt a formal investment policy. The Commissioners Court of Brazos County shall review its investment policy not less than annually and shall adopt a written instrument by resolution stating that it has reviewed the investment policy and that the written instrument so adopted shall record any changes made to the investment policy 1.2 In accordance with Texas Local Government Code, Section 116.112 (a) or Chapter 2256, Section 2256.005 (0 and (g) of the Public Funds Investment Act, the County Treasurer, under direction of Commissioner's Court, is authorized to invest County funds that are not immediately required to pay obligations of the County. By the approval of this policy, the Commissioners' Court designates the County Treasurer as Investment Officer, assisted by the Deputy Treasurer certified as a County Investment Officer by TAC, to be responsible for the investment of its funds consistent with the County's investment policy. Authority granted to a person to invest the County's funds is effective until rescinded by the Commissioner's Court, until the expiration of the officer's term, or until termination of the person's employment by the County. Unless authorized by law, a person may not deposit, withdraw, transfer, or manage in any other manner the funds of the investing County. An Investment Officer who has a personal business relationship with a business organization offering to engage in an investment transaction with the County shall file a statement disclosing that personal business interest. An Investment Officer who is related within the second degree by affinity or consanguinity to an individual seeking to sell an investment to the County shall file a statement disclosing that relationship. This statement must be filed with the Texas Ethics Commission and the Brazos County Commissioners' Court. For the purposes of this requirement, an Investment Officer has a personal business relationship with a business organization if. Approved by Commissioners Court on 04/08/2003 POO 1.2.1 The Investment Officer owns 10 perceii: or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organizatioi,, 1.2.2 Funds received by the Investment Officer from the business organization exceed ten (10) percent of the Investment Officer's gross income for the previous year; or 1.2.3 The Investment Officer has acquired from the business organization during the previous year investments with a book value of $2,500 or more for the personal account of the Investment Officer. 1.3 An appointed investment Advisory Committee shall be approved by Commissioners' Court. This Committee will serve in an advisory capacity to the County's Investment Officer. The Committee will meet twice a year, or as requested by the County's Investment Officer, to review strategies and monitor the progress of the County's investment program. 2.0 INVESTMENT OBJECTIVES 2.1 POLICY. It is the policy of Brazos County to invest public funds in a manner, which will provide the highest investment return while seeking to ensure the preservation of capital and to meet the daily cash flow demands of the County. This investment policy applies to all financial assets of all funds of Brazos County at the present time, any funds to be created in the future, and any other funds held in custody by the County Treasurer, unless expressly prohibited by law. 2.2 GENERAL STATEMENT. Funds of the County will be invested in accordance with federal, state, and local statutes, this investment policy, and written administrative procedures and strategies that have been adopted by Commissioners' Court resolution and revised as needed. 2.3 SAFETY. Brazos County is concerned about the preservation of its principal; therefore, the return of principal and safety of principal are primary objectives in any investment transaction. 2.4 LIQUIDITY. The County's investment portfolio must be structured to conform to an asset/liability management plan, which provides for the liquidity necessary to pay obligations as they become due. 2.5 YIELD. It will be the objective of the County to earn a yield higher than that paid on 91-day T-Bills within the policies imposed by its safety and Approved by Commissioners Court on 04/08/2003 li' liquidity objectives, ins;-!ment strategies for each fund, and state and federal law governing the inves ;rent of public funds. 2.6 DIVERSIFICATION. It will be the policy c`Brazos County to diversify its portfolio to eliminate the risk of loss resulting horn over concentration of assets in a specific maturity, a specific issuer, or a specific class of investments. Investments selected by the County shall always provide for stability of income and reasonable liquidity. 2.7 MATURITY. Portfolio maturities will be structured to meet the obligations of the County first and then to achieve the highest return of interest. When the County has funds that will not be needed to meet current-year obligations, maturity restraints will be imposed based upon the investment strategy for each fund. The maximum allowable stated maturity of any individual investment owned by the County is two (2) years. The maximum dollar-weighted average maturity for pooled fund groups shall be 180 days. 2.8 QUALITY AND CAPABILITY OF INVESTMENT MANAGEMENT. It is the County's policy to provide the training required by the Public Funds Act, Sec. 2256.008 through courses and seminars offered by professional organizations and associations. This training will insure the quality, capability and currency of the Treasurer/County Investment Officer in making investment decisions. 2.8.1 The Treasurer/County Investment Officer shall: 2.8.1.1 Attend at least one training session from the County Treasurers' Association of Texas, Texas Association of Counties, GFOA, or an approved source containing at least ten (10) hours of instruction relating to the Treasurer's/CIO's responsibilities under the Public Funds Investment Act within 12 months after taking office or assuming duties; and 2.8.1.2 Attend an investment training session not less than once in a two-year period and receive not less than 10 hours of instruction relating to investment responsibilities under the PFIA from the County Treasurers' Association of Texas, Texas Association of Counties, GFOA, or an approved source. 2.8.2 Training under this section must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance with the PFIA. Approved by Commissioners Court on 04/08/2003 . o- ~ r 3.0 INVESTMENT TYPES. The Brazos County Investment Officer shall use any or all of the following authorized investment instruments consistent with governing law: 3.1 OBLIGATIONS OF, OR GUARANTEED BY, GOVERNMENTAL ENTITIES 3.1.1 Obligations of the United States or its agencies and instrumentalities; 3.1.2 Direct obligations of the State of Texas or its agencies and instrumentalities; 3.1.3 Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of Texas or the United States or their respective agencies and instrumentalities; and 3.1.4 Obligations of states, agencies, counties, cities, and other political sub-divisions of any state having been rated as to investment quality by a nationally recognized investment rating firm not less than "A" or its equivalent. 3.2 CERTIFICATES OF DEPOSIT if issued by a state or a national bank domiciled in this state, a savings bank domiciled in this state, or a state or federal credit union domiciled in this state, and is: 3.2.1 102% collateralized; 3.2.2 Guaranteed or insured by the Federal Deposit Insurance corporation or its successor; 3.2.3 Secured by obligations that are described in Section 3.1 of this policy, including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage-backed securities of the nature described by Section 3.8 of this policy; or 3.2.4 Secured in any other manner and amount provided by law for deposits of the County. 3.3 A FULLY COLLATERALIZED REPURCHASE AGREEMENT, as defined in the Public Funds Investment Act, is an authorized investment under this section if the repurchase agreement: 3.3.1 Has a defined termination date; Approved by Commissioners Court on 04/08/2003 33.2 Is secured by obligations that are described in Section 3.1 of this poll-y. including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the prii:"!ipal amount of the certificates; 3.3.3 Requires the securities being purchased by the County to be pledged to the County, held in the County's name, and deposited at the time the investment is made with the County or with a third party selected and approved by the County; and 3.3.4 Is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state. 3.4 A BANKERS' ACCEPTANCE if it 3.4.1 Has a stated maturity of 270 days or fewer from the date of its issuance; 3.4.2 Will be, in accordance with its terms, liquidated in full at maturity; 3.4.3 Is eligible for collateral for borrowing from a Federal Reserve Bank; and 3.4.4 Is accepted by a bank organized and existing under the laws of the United Sates or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency. 3.5 COMMERCIAL PAPER is an authorized investment under this subchapter if the commercial paper: 3.5.1 Has a stated maturity of 90 days or fewer from the date of its issuance; and 3.5.2 Is rated not less than A-1 by Standard and Poors and P-1 by Moodys rating agencies. 3.5.3 Relative to Commercial Paper, the County may not 3.5.3.1 Have more than 25% of the portfolio invested in Commercial Paper at the time of any one commercial paper purchase; Approved by Commissioners Court on 04/08/2003 / .4 p 3.7.3 To be eligible to receive funds from and invest fads on behalf of Brazos County, an investment pool must furnish to the investment officer an offering circular or other similar disclosure instrument that contains, at a minimum, the following information: 3.7.3.1 The types of investments in which money is allowed to be invested; 3.7.3.2 The maximum average dollar-weighted maturity allowed, based on the stated maturity date, of the pool; 3.7.3.3 The maximum stated maturity date any investment security within the portfolio has; 3.7.3.4 The objectives of the pool; 3.7.3.5 The size of the pool; 3.7.3.6 The names of the members of the advisory board of the pool and the dates their terms expire; 3.7.3.7 The custodian bank that will safekeep the pool's assets; 3.7.3.8 Whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; 3.7.3.9 Whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; 3.7.310The name and address of the independent auditor of the pool; 3.7.311 The requirements to be satisfied, deadlines and/or other operating policies required for the County to invest funds in and withdraw funds from the pool; and 3.7.312The performance history of the pool, including yield, average dollar-weighted maturities, and expense ratios. 3.7.4 To maintain eligibility to receive funds from and invest funds on behalf of the County, an investment pool must famish to the Investment Officer: 3.7.4.1 Investment transaction confirmations; and Approved by Commissioners Court on 04/08/2003 3.7.4.2 A monthly report that contai:s, at a minimum, the following information: 3.7.4.2.1 The types and percentage breakdown of securities in which the pool is invested; 3.7.4.2.2 The current average dollar-weighted maturity, based on the stated maturity date, of the pool; 3.7.4.2.3 The current percentage of the pool's portfolio in investments that have stated maturities of more than one year; 3.7.4.2.4 The book value versus the market value of the pool's portfolio, using amortized cost valuation; 3.7.4.2.5 The size of the pool; 3.7.4.2.6 The number of participants in the pool; 3.7.4.2.7 The custodian bank that is safekeeping the assets of the pool; 3.7.4.2.8 A listing of the County's daily transaction activity; 3.7.4.2.9 The yield and expense ratio of the pool; 3.7.4.2.10 The portfolio managers of the pool; and 3.7.4.2.11 Any changes or addenda to the offering circular. 3.7.4.3 The County by contract may delegate to an investment pool the authority to hold legal title as custodian of investments purchased with its local funds. 3.7.4.4 In this section, "yield" shall be calculated in accordance with regulations governing the registration of open-end management investment companies under the Investment Company Act of 1940, as promulgated from time to time by the federal Securities and Exchange Commission. 3.7.4.5 To be eligible to receive funds from and invest funds on behalf of the County, a public funds investment pool created to function as a money market mutual fund must mark its Approved by Commissioners Court on 04/08/2003 y / c porti;D?io to market daily, and, to the extent reasonably possible, staL•i?izes at a $1 net asset value. If the ratio of the market value of the r rtfolio divided by the book value of the portfolio is less than 0.99_ or greater than 1.005, portfolio holdings shall be sold as necessary to maintain the ratio between 0.995 and 1.005. 3.7.4.6 To be eligible to receive funds from and invest funs on behalf of the County, a public funds investment pool must have an advisory board composed of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool. 3.7.4.7 To maintain eligibility to receive funds from and invest funds on behalf of the County, a public funds investment pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one nationally recognized rating service or no lower than investment grade by at least one nationally recognized rating service with a weighted average maturity no greater than 90 days. 3.8 PROHIBITED. The Brazos County Investment Officer will make no investments in derivative products. The Public Funds Investment Act specifically prohibits the following investments: 3.8.1 Obligations whose payment represents the coupon payments on the out-standing principal balance of the underlying mortgage- backed security collateral and pays no principal; 3.8.2 Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest; 3.8.3 Collateralized mortgage obligations that have a stated final maturity date of greater than 10 years; and 3.8.4 Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. 3.9 Effect of Loss of Required Rating. An investment that requires a minimum rating under the PFIA does not qualify as an authorized investment during the period the investment does not have the minimum rating. The County Treasurer/Investment Officer shall take all prudent measures that are consistent with this investment policy to liquidate an investment that does not have the minimum rating. The County, however, Approved by Commissioners Court on 04/08(.//21003 8 is not required to liquidate investments that were authorized investments at the time of purchase. 4.0 INVESTMENT STRATEGIES 4.1 In accordance with the Public Funds Investment Act, a separate written investment strategy will be developed for each of the funds or group of funds under Brazos County's control. Each strategy must describe the investment objectives for the particular fund using the following priorities in order of importance: 4.1.1 Understanding of the suitability of the investment to the financial requirements of the County; 4.1.2 Preservation and safety of principal; 4.1.3 Liquidity; 4.1.4 Marketability of the investment if the need arises to liquidate the investment before maturity; 4.1.5 Diversification of the investment portfolio; 4.1.6 Yield; and 4.1.7 Maturity restrictions. 4.2 The Commissioners' Court of Brazos County shall review its investment strategies not less than annually and shall adopt a written instrument by resolution stating that it has reviewed the investment strategies and that the written instrument so adopted shall record any changes made to investment strategies. 5.0 INVESTMENT RESPONSIBILITY AND CONTROL 5.1 INVESTMENT INSTITUTIONS DEFINED. Brazos County funds shall be invested with or through any or all of the following institutions or groups consistent with federal and state law and the current Depository Bank contract: 5.1.1 Depositorybank; Approved by Commissioners Court on 04/08/2003 5.1.2 Other state or national banks domiciled in Texas that are insured by FDIC; 5.1.3 Savings and loan associations domiciled in Texas that are insured by FSLIC (or its successor); 5.1.4 Public funds investment pools; or 5.1.5 Government securities brokers and dealers meeting the following qualifications: 5.1.5.1 A written copy of this investment policy shall be presented to any person offering to engage in an investment transaction with the County. For purposes of this section, a business organization includes investment pools. Nothing in this section relieves the County of the responsibility for monitoring the investments made by the County to determine that they are in compliance with the investment policy. 5.1.5.2 The qualified representative of the business organization offering to engage in an investment transaction with the County shall execute a written instrument in a form acceptable to the County and the business organization substantially to the effect that the business organization has; 5.1.5.2.1 Received and reviewed the investment policy of the County; and 5.1.5.2.2 Acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the County and the organization that are not authorized by the County's investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the County's entire portfolio or requires an interpretation of subjective investment standards. 5.1.5.3 The County Investment Officer may not acquire or otherwise obtain any authorized investment described in the County's investment policy from a person who has not delivered to the County the instrument required above. Approved by Commissioners Court on 04/08/2003 00 ON 5.1.5.4 The Brazos County Investment Advisory Committee shall, at least annually, review, revise, and recommend a list of qualified brokers to the Commissioners' Court. The Court shall adopt the list of qualified brokers who are authorized to engage in investment transactions with the County. Selection of brokers will be based upon the following: 5.1.5.4.1 Qualifications and capabilities of the firm in dealing with public entities; 5.1.5.4.2 Qualifications and capabilities of the relationship manager; 5.1.5.4.3 Market capitalization of the firm: 5.1.5.4.4 The number of transactions won through competitive bidding; 5.1.5.4.5 Prompt and accurate confirmation of transactions; 5.1.5.4.6 Efficient securities delivery; 5.1.5.4.7 Accurate market information; and 5.1.5.4.8 Account servicing. 5.2 STANDARDS OF OPERATION 5.2.1 The County Investment Officer shall develop and maintain written administrative procedures for the operation of the investment program consistent with this investment policy. 5.2.2 It shall be the policy of the County that all transactions, except investment pool funds and money market mutual funds, be settled on a delivery versus payment basis. 5.2.3 All investment funds will be placed directly with qualified financial institutions. The County will not deposit nor invest through third parties or money brokers. 5.2.4 The market price of the County's investments shall be monitored by soliciting prices at least quarterly from a qualified broker. 5.3 PRUDENT STANDARD OF CARE. 5.3.1 In the administration of the duties of the Investment Officer, the person designated as Investment Officer shall exercise the judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but Approved by Commissioners Court on 04/08/ 2003 ,w 49 for investment, consideri,ib the probable safety of capital and the probable income to be derived. The Commissioners' Court of Brazos County; however, retains ultimate responsibility as fiduciaries of the assets of the County. Investment of funds shall be governed by the following investment objectives, in order of priority: preservation and safety of principal; liquidity; and yield. 5.3.2 In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: 5.3.2.1 The investment of all funds, or funds under the County's control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment; and 5.3.2.2 Whether or not the investment decision was consistent with the written investment policy of the entity. 5.4 COLLATERAL OR INSURANCE. The Brazos County Investment Officer shall insure that all County funds are 102% collateralized or insured consistent with federal and state law and the current Bank Depository Contract in one or more of the following manners: 5.4.1 FDIC insurance coverage; 5.4.2 Obligations of the United States or its agencies and instrumentalities; 5.4.3 Direct obligations of the State of Texas or its agencies; 5.4.4 Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States or its agencies and instrumentalities; 5.4.5 Obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than "A" or its equivalent; or 5.4.6 Any other manner allowed by law. 5.5 SAFEKEEPING Approved by Commissioners Court on 04/08/~20J03 5.5.1 All securities purchased by the County shall be held in safekeeping by the County, or a County account in a third party financial institution, or with the Federal Reserve Bank. 5.5.2 All Certificates of Deposit, insured by the FDIC, purchased outside the Depository Bank shall be held in safekeeping by either the County or a County account in a third party financial institution. 5.5.3 All pledged securities shall be held in safekeeping by the County, or a County account in a third party financial institution, or with a Federal Reserve Bank. 5.6 AUDIT CONTROL. 5.6.1 The Investment Officer of Brazos County will establish a liaison with the County Auditor in preparing investment forms for accounting and auditing control. 5.6.2 The Commissioners' Court of Brazos County shall have an annual financial audit of all County funds by an independent auditing firm, as well as an annual compliance audit of management controls on investments and established investment policies. 5.6.3 If the County invests in other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, the reports prepared by the Investment Officers under this section shall be formally reviewed at least annually by an independent auditor, and the result of the review shall be reported to the Commissioners Court by that auditor. 6.0 INVESTMENT REPORTING AND PERFORMANCE EVALUATION 6.1 QUARTERLY REPORT. At least quarterly, the Investment Officer shall prepare and submit to the Commissioners' Court a written report of investment transactions for all funds for the preceding reporting period within a reasonable time after the end of the period. The report must: 6.1.1 Describe in detail the investment position of the County on the date of the report; 6.1.2 Be prepared jointly by all investment officers of the County; 6.1.3 Be signed by each of the investment officers of the County; Approved by Commissioners Court on 04/0(8/20003 6.1.4 Contain a summary statement, prepared in compliance with generally accepted accounting principles, of each pooled fund group that states the following: 6.1.4.1 Beginning market value for the reporting period; 6.1.4.2 Additions and changes to the market value during the period; 6.1.4.3 Ending market value for the period; 6.1.4.4 Fully accrued interest for the reporting period; and 6.1.4.5 The dollar-weighted average maturity of the portfolio. 6.1.5 State the book value (the original acquisition cost of an investment plus or minus the accrued amortization or accretion) and the market value (current face or par value of an investment multiplied by the net selling price of the security as quoted by a recognized market pricing source quoted on the valuation date) of each separately invested asset at the beginning and end of the reporting period by the type of asset and fund type invested; 6.1.6 State the date of maturity of each separately invested asset that has a maturity date; 6.1.7 State the account or fund or pooled group fund in the County for which each individual investment was acquired; and 6.1.8 State the compliance of the investment portfolio of the County as it relates to the following: 6.1.8.1 The investment strategy expressed in the County's investment policy, and 6.1.8.2 Relevant provisions of Chapter 2256, Texas Government Code, as amended. 6.2 NOTIFICATION OF INVESTMENT CHANGES. It shall be the duty of the County Investment Officer of Brazos County, Texas, to notify the Brazos County Commissioners' Court of any significant changes in current investment methods and procedures prior to their implementation. Approved by Commissioners Court on 0/4/'08/ 003 ~'7L~. 7.0 DEPOSITORY FOR COUNTY FUNDS 7.1 DEPOSITORY CONTRACT. 7.1.1 The Commissioners' Court of Brazos County at its May regular term immediately following each general election for state and county officers shall contract with one or more banks in the county for the deposit of the County's public funds. The County shall contract with a bank for a two-year or four-year contract term. 7.1.2 If the contract is for a four-year term, the contract shall allow the bank to establish, on the basis of negotiations with the County, new interest rates and financial terms of the contract that will take effect during the final two years of the four-year contract if: 7.1.2.1 The new financial terms do not increase the prices to the County by more than 10 percent; and 7.1.2.2 The County has the option to choose to use the initial variable interest rate option or to change to the new fixed or variable interest rate options proposed by the bank. 7.1.3 The provisions set forth in Chapters 116 and 117 of the Local Government Code will regulate the establishment of the depository, security for funds held by the depository, depository accounts, and liabilities. 7.2 COLLATERAL will be provided by the Depository in accordance with Government Code 2257, Subchapters A and B. 8.0 DEFINITIONS. 8.1 BOND PROCEEDS means the proceeds from the sale of bonds, notes, and other obligations issued by an entity, and reserves and funds maintained by an entity for debt service purposes. 8.2 BOOK VALUE means the original acquisition cost of an investment plus or minus the accrued amortization or accretion. 8.3 FUNDS means public funds in the custody of the County that: 8.3.1 Are not required by law to be deposited in the state treasury; and 8.3.2 The County has authority to invest. Approved by Commissioners Court on 04/08/2003 BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter G. Capital Asset Categories -Leasehold Improvements can't) Depreciation Leasehold improvements are capitalized by the lessee and are amortized over the shorter of (1) the remaining lease term, or (2) the useful life of the improvement. Improvements made in lieu of rent should be expensed in the period incurred. If the lease contains an option to renew and the likelihood of renewal is uncertain, the leasehold improvement should be depreciated over the life of the initial lease term or useful life of the improvement, whichever is shorter. The depreciation method will be determined by the County Auditor's Office for all leasehold improvements. Capitalization Threshold The capitalization threshold for leasehold improvements constructed, purchased, or donated is $5,000. Subchapter H. Capital Asset Categories - Construction in Progress Construction in Progress Definition Construction in Progress includes the cost of buildings and other structures, infrastructures (roads, bridges, etc.), and capital-related additions, alterations, reconstruction, and installations that are substantially incomplete. Depreciation Depreciation is not applicable while assets are accounted for as Construction in Progress. When completed and placed in service, constructed assets are treated like any other asset. Capitalization Threshold Construction in Progress assets should be capitalized to their appropriate capital asset categories upon the earlier occurrence of substantial completion, occupancy/acceptance, or when the asset is placed into service. 27 BRAZOS COUNTY CAPITAL ASSET GUIDE F. Capital Asset Categories - Machinery, Equipment, and Other Assets (con't) Capitalization Threshold (con't) (5) Sales, use, and other taxes imposed on the acquisition (6) Installation charges (7) Charges for testing and preparation for use (8) Cost reconditioning used items when purchased (9) Parts and labor associated with construction of equipment Note: Costs of extended warranties and/or maintenance agreements, which can be separately identified from the cost of the equipment, should not be capitalized. Subchapter G. Capital Asset Categories - Leasehold Improvements Leasehold Improvements Definition (a) Leasehold improvements include construction of improvements made to existing structures by the lessee, who has the right to use the improvements over the term of the lease. These improvements will revert to the lessor at the expiration of the lease. Moveable equipment or office furniture that is not attached to the leased property is not considered a leasehold improvement. Leasehold improvements do not have a residual value. Leasehold improvements should be capitalized as a Building Improvement. (b) The County Office responsible for coordinating a leasehold improvement must provide the County Auditor with the following information: (1) The date the improvement is placed in service (2) The cost or fair market value (3) The estimated useful life and the remaining life of the lease (4) Any ancillary charges required to place the improvement into service lj~ a _ '4.~a 26 BRAZOS COUNTY CAPITAL ASSET GUIDE F. Capital Asset Categories - Machinery, Equipment, and Other Assets (con't) Jointly Funded Machinery, Equipment, and Other Assets Machinery, equipment and other assets paid for jointly by the County and other governmental entities should be capitalized by the entity responsible for future maintenance. The County Offices responsible for future maintenance must provide the County Auditor and Purchasing Agent with all information required allowing the asset to be recorded and depreciated according to Generally Accepted Accounting Principles. County Offices should consult in advance with the County Auditor when the County will pay for both partial ownership and partial maintenance of a capital asset. The County Auditor will determine the required accounting procedures. Depreciation The depreciation method will be determined by the County Auditor's Office for all machinery, equipment, and other assets that are subject to depreciation (see Appendix "C'). Note: Professional, academic and research library books and materials are considered inexhaustible assets and should not be depreciated. These library books and materials have an economic benefit or service potential that is used up slowly, and their estimated useful lives are extraordinarily long. Note: Exhaustible works of art and historical treasures, i.e. items whose useful lives are diminished by display or educational or research applications should be depreciated. Inexhaustible works of art and historical treasures items should not be depreciated as the economic benefit or service potential is used up so slowly that the estimated useful lives are extraordinarily long. Capitalization Threshold The capitalization threshold for machinery, equipment, and other assets constructed, purchased, or donated is $5,000 and should include such costs as: (1) Freight charges (2) Handling and storage charges (3) Original contract or invoice price (4) In-transit insurance charges BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter F. Capital Asset Categories - Machinery, Equipment, and Other Assets (con't) Machinery, Equipment, and Other Assets (con't) 1. Machinery, Equipment, and Furniture Machinery includes such items as bulldozers, cement mixers, and hoists. Equipment includes such items as automobiles, trucks, radios, computers, and safety items. Furniture and fixtures includes desks, chairs, tables, service counters, lamps, and bookcases. 2. Computer software Current policies relating to the capitalization of computer software for the County will not change. The only costs to be capitalized will be those costs that provide the County with an extended use that can be evaluated. Licensing and maintenance fees are not to be expensed in the year paid. Proprietary rights are to be capitalized. 3. Library books and reference materials of an academic, professional, or research library A library book is an academic, professional, or research composition bound into a separate volume and identifiable as a separate copyrighted unit. Library reference materials are information sources other than books which include journals, periodicals, microforms, audio/visual media, computer-based information, manuscripts, maps, documents, and similar items which provide information essential to the learning process or which enhance the quality of academic, professional or research libraries. Some books have a cultural, aesthetic, or historical value, and efforts are usually applied to protect and preserve these assets in a manner greater than that for similar assets without such cultural, aesthetic, or historical value. 4. Works of art and historical collections or individual items of significance that are owned by the County'which are not held for financial gain, but rather for public exhibition, education or research in furtherance of public service. These assets generally have to be capitalized at their historical cost (or estimated fair value at the date of donation), whether they are held as individual items or in collections. 24 'X, - rap BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter E. Capital Asset Categories - Infrastructure (can't) Required Steps To Upgrade a Gravel Road (con't) 15. Build fences (Right of way - labor, materials, machine hours) 16. Complete drainage survey 17. Install drainage structures 18. Build road (labor, materials, machine hours) 19. Install new signs and appropriate markings (Signs and markings should be accounted for maintenance overhead) Depreciation The depreciation method will be determined by the County Auditor's Office for all infrastructure assets (see Appendix "C"). The County intends to use the "modified approach" to account for maintenance expense related to infrastructure. Capitalization Threshold The capitalization threshold for infrastructure constructed, purchased, or donated is $50,000. Examples of infrastructure assets: (1) Roads, streets, curbs, gutters, sidewalk, fire hydrants (2) Bridges (3) Waterway improvements such as docks, bulkheads, erosion control improvements (4) Dam, drainage facility (5) Radio or television transmitting tower (6) Electric, water and gas (main lines and distribution lines, tunnels) (7) Fiber optic and telephone distribution systems (between buildings) (8) Light system (traffic, outdoor, street, etc.) (9) Signage Subchapter F. Capital Asset Categories -Machinery, Equipment, and Other Assets Machinery, Equipment, and Other Assets Definition: Fixed or moveable tangible assets that are used for operations of the County and will benefit the County for more than three years from the date the asset first renders service. Improvements or additions to existing personal property that materially increase the value, life, efficiency, or capacity of the asset. This category includes the following: *1~ µ Liz 23 ` 9 BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter E. Capital Asset Categories - Infrastructure (can't) Elements To Be Considered For Capitalization 1. All contractual costs associated with new construction and road and bridge upgrades, 2. Internal direct labor costs to include benefits, 3. Materials 4. Machine hours 5. Equipment lease expense Required Steps To Upgrade a Gravel Road There are several steps that the County will need to take in the process of upgrading a county gravel road to a paved road. The process will include several steps and will require the capitalization of labor and material costs. The capitalized costs will need to be capitalized either as right-of-way, land, drainage, and/or roads/bridges. 1. Justify the necessity for a roadway upgrade 2. Perform Average Daily traffic Count to determine qualifications 3. Review location related to maintenance requirements (Labor and material associated with the first three steps should be accounted for as general maintenance overhead - there is no indication that the project will go forward.) 4. Layout road alignment 5. Examine right-of-way requirements 6. Review right-of-way with land owners 7. Obtain Commissioner's approval 8. Allow for possible condemnation of property 9. Examine need for utility relocation 10. Have survey performed (metes and bounds) 11. Have deeds drawn up 12. Have property appraised 13. Obtain Commissioners' court approval to negotiate the purchase of the property 14. Relocate utilities (capitalized as road costs) J. 22 l L D BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter E. Capital Asset Categories - Infrastructure Jointly Funded Infrastructure (con't) 3) the asset's salvage value, 4) the asset's estimated useful life, and 5) whether the asset is part of a network of a subsystem of a network. The County Engineer should consult in advance with the County Auditor when the County will pay for both partial ownership and partial maintenance of an infrastructure capital asset. The County Auditor will and the County Engineer are responsible for developing the required accounting procedures. Maintenance Costs Maintenance costs allow the County to preserve existing infrastructure to be used during its originally established useful life. Maintenance costs are expensed in the period incurred. Preservation Costs Preservation costs are generally considered to be those outlays that extend the useful life of an asset beyond its original estimated useful life, but do not increase the capacity or efficiency of the asset. Preservation costs should be capitalized if the expenditure increases the capacity or efficiency of the asset. The County will use the modified approach for accounting for infrastructure assets as provided for in Statement 34 and does not plan to depreciate infrastructure. Additions and Improvements Additions and improvements are those capital outlays that increase the capacity or efficiency of the asset. A change in capacity increases the level of service provided by an asset. For example, additional lanes can be added to a road, or the weight capacity of a bridge could be increased. A change in efficiency maintains the same service level, but at a reduced cost, for example, a computer controlled traffic signal that reduces servicing costs because it requires minimal servicing compared to older electro-mechanically controlled models. The cost of additions and improvements should be capitalized. 1 - ~u BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter D. Capital Asset Categories - Improvements Other than Buildings Capitalization Threshold (con't) (4) Recreation areas and athletic fields (including bleachers) (5) Golf courses (6) Paths and trails (7) Septic systems (8) Swimming pools, tennis courts, basketball courts (9) Fountains (10) Park pavilions (11) Retaining walls (12) Water wells Subchapter E. Capital Asset Categories - Infrastructure Infrastructure Definition Infrastructure is long-lived capital assets that normally are stationary in nature and can be preserved for a significantly greater number of years than most capital assets. Note: The County has developed retroactive reporting of infrastructure assets purchased, constructed, or donated in fiscal years ending after June 30, 1980, or that received major renovations, restorations, or improvements during that period is required. Infrastructure improvements are capital additions that materially extend the useful life or increase the value of the infrastructure, or both. Infrastructure improvements should be capitalized. Jointly Funded Infrastructure (a) Infrastructure constructed jointly by the County and other governmental entities should be capitalized by the entity responsible for future maintenance. (b) The County Engineer is responsible for infrastructure and therefore is required to provide the County Auditor and Purchasing Agent: 1) the date the asset was placed in service, 2) the asset's cost or acquisition value, d ak 20 ; BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter C. Capital Asset Categories - Buildings and Improvements Capitalization Threshold (con't) (4) MAINTENANCE EXPENSE G. Maintenance-type interior renovation, such as repainting, touch-up plastering, replacement of carpet, tile, or panel sections, sink and fixture refinishing, etc.; H. Maintenance-type exterior renovation such as repainting, replacement of deteriorated siding, roof, or masonry sections; 1. Replacement of a part of component of a building with a new part of the same type and performance capabilities, such as replacement of an old boiler with a new on of the same type and performance capabilities; and J. Any other maintenance-related expenditure which does not increase the value of the building. Subchapter D. Capital Asset Categories - Improvements Other than Buildings Improvements Other Than Building Definition Improvements other than buildings are capital assets, not specifically identifiable to an individual building, that reflect the cost of permanent improvements and add value to the property. Such improvements made to a facility or to land should be capitalized. Depreciation Improvements other than buildings are depreciable assets. The depreciation method will be determined by the County Auditor's Office (See Appendix "C"). Capitalization Threshold The capitalization threshold for Improvements Other Than Buildings that are constructed, purchased, or donated is $5,000. Examples of expenditures to be capitalized as Improvements Other Than Buildings: (1) Fencing and gates (2) Parking lots/driveways/parking barriers (3) Outside sprinkler systems 19 -I BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter C. Capital Asset Categories - Buildings and Improvements Capitalization Threshold (con't) G. Interior renovation associated with casings, baseboards, light fixtures, ceiling trim, etc. H. Exterior renovation such as installation or replacement of siding, roofing, masonry, etc. 1. Installation or upgrade of plumbing and electrical wiring J. Installation or upgrade of phone or closed circuit television systems, networks, fiber optic cable, wiring required in the installation of equipment (that will remain in the building) K. Other costs associated with the above improvements Note: For a replacement to be capitalized, it must be a part of a major repair or rehabilitation project that increases the value, and/or useful life of the building. For example, renovation of the County Courthouse is included. A replacement may also be capitalized if the new item/part is of significantly improved quality and higher value compared to the old item/part, such as a replacement of an old shingle roof with a new fireproof file roof. Replacement or restoration to the original utility level would not be capitalized. Determinations must be made on a case by case basis. County Offices should contact the County Auditor's Office prior to encumbering funds if there is uncertainty regarding proper capitalization under Generally Accepted Accounting Principles. (4) MAINTENANCE EXPENSE (after completed construction) The following are examples of expenditures that are not capitalized as improvements to buildings. Instead, these items should be recorded as maintenance expense. A. Adding, removing and/or moving of walls relating to renovation projects that are not considered major rehabilitation projects and do not increase the value of the building; B. Improvement projects of minimal or no added life expectancy and/or value to the building; C. Plumbing of electrical repairs; D. Cleaning, pest extermination, or other periodic maintenance; E. Interior decoration, such as draperies, blinds, curtain rods, wallpaper; F. Exterior decoration, such as detachable awnings, uncovered porches, decorative fences, etc.; BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter C. Capital Asset Categories - Buildings and Improvements Capitalization Threshold (con't) C. Cost of excavation or grading or filling of land for a specific building; D. Expenses incurred for the preparation of plans, specifications, blueprints, building permits, etc.; E. Professional fees (architect, engineer, management fees for design and supervision, legal); F. Costs of temporary buildings used during construction; G. Unanticipated costs such as rock blasting, piling, or relocation of the channel of an underground stream; H. Permanently attached fixture or machinery that cannot be removed without impairing the use of the building; 1. Additions to buildings (expansions, extensions, or enlargements); and, J. Build-out of interior spaces to specifications (3) BUILDING IMPROVEMENTS A. Conversion of attics, basements, etc., to usable office, clinic, research or classroom space B. New structures attached to the building such as covered patios, sunrooms, garages, carports, enclosed stairwells, etc. C. Installation or upgrade of heating and cooling systems, including ceiling fans and attic vents D. Original installation/upgrade of wall, ceiling, or floor covering such as carpeting, tiles, paneling, or parquet E. Structural changes such as reinforcement of floors or walls, installation or replacement of beams, rafters, joists, steel grids, or other interior framing F. Installation or upgrade of window or door frame, upgrading of windows or doors, built-in closets and cabinets 17 a PM q~k BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter C. Capital Asset Categories -Buildings and Improvements Depreciation (con't) (b) Buildings designated as "historical" by the Texas Historical Commission are not depreciated unless used in the operations of the County. However, any improvements not deemed "historical" by the Texas Historical Commission are depreciated the same as any other improvements made to a building (see addendum `B"). Capitalization Threshold (a) The capitalization threshold for buildings and building improvements constructed, purchased, or donated is $5,000 (see chart on page 6). Examples of expenditures to be capitalized as Buildings: (1) PURCHASED BUILDINGS A. Original purchase price; B. Expenses for remodeling, reconditioning or altering a purchased building to make it ready to use for the purpose for which it was acquired if it extends the useful life, increases the value, adds capacity or increases efficiency of the building; C. Environmental compliance (i.e., asbestos abatement); D. Professional fees (legal, architect, inspections, title searches, etc.); E. Payment of unpaid or accrued taxes on the building to date of purchase; F. Cancellation or buyout of existing leases; and, G. Other costs required to place or render the asset into operation. (2) CONSTRUCTED BUILDINGS A. Completed project costs; B. Interest accrued during construction (for contracts in excess of $15 million); MOW a~ BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter B. Capital Asset Categories -Land and Improvements Capitalization Threshold (con't) (1) Purchase price and/or fair market value at time of donation (2) Commissions (3) Professional fees (title searches, architect, legal, engineering, appraisal, surveying, environmental assessments, etc.) (4) Land excavation, fill, grading, drainage (5) Demolition of existing buildings and improvements (less salvage) (6) Removal, relocation, or reconstruction of property of others (railroad, telephone and power lines) (7) Interest on any mortgages accrued at date of purchase (8) Accrued and unpaid taxes at date of purchase (9) Other costs incurred in acquiring the land (10) Right-of-way Subchapter C. Capital Asset Categories - Buildings and Improvements Building Definition A building is a structure that is permanently attached to the land, has a roof, is partially or completely enclosed by walls, and is not intended to be transportable or moveable. Buildings that are an ancillary part of the County's road system, such as rest area facilities will be reported as infrastructure rather than as buildings. A building improvement materially extends the useful life, increases the value, adds capacity, or increases efficiency of the building. A building improvement should be capitalized. A roof should not be capitalized unless there is a roof retired - except during initial construction. As a result, a new roof will normally be repairs and maintenance and not a capitalized cost. Depreciation (a) Buildings and building improvements are depreciable assets. The depreciation method will be determined by the County Auditor's Office for all buildings and building improvements (see Appendix "C"). 7~ 15 L l BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter A Controlled Assets Controlled assets are those assets below the capitalization threshold that have been identified by the Commissioners' Court in accordance with County policy that must be secured and tracked for accountability by the Purchasing Office's Fixed Asset System due to the nature of the items. Examples of the most common controlled assets include but are not limited to: personal computers and monitors, televisions, VCR's, furniture, weed eaters, cellular telephones, etc. Accountability for all capital assets as defined by the County's "Capital Asset Accountability Policy" is required. Subchapter B. Capital Asset Categories - Land and Land Improvements Land Definition Land is the surface or crust of the earth, which can be used to support structures, and may be used to grow crops, grass, shrubs, and trees. Land is characterized as having an unlimited life (inexhaustible life). Land Improvement Definition Land improvements consist of earth moving and similar improvements, which ready land for its intended use. The costs associated with improvements to land are added to the cost of the land. Depreciation Land and land improvements are inexhaustible assets and do not depreciate over time. Inexhaustible assets have unlimited useful lives. Capitalization Threshold All acquisitions, including donations, of land and land improvements will be capitalized. There is not a nominal level established for capitalization of land and/or land improvements. Examples of expenditures to be capitalized as Land and Land Improvements are as follows: 14 ~a &Asa BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter A Residual or Salvage Value (con't) The County engineer will be responsible for establishing residual salvage value for all of the County's heavy equipment. The County Auditor will establish a residual salvage value for vehicles and work trucks and other "general fixed assets. All assets without a designated salvage value it will be assumed that they will be consumed within their estimated useful life. Depreciation Lives See Appendix "C" Sale, Disposal, or Retirement of Capital Assets County Offices are to transfer all property to be disposed of to the purchasing agent. The purchasing policy needs to be reviewed for the procedures to be followed. Once the property is disposed of the purchasing department will need to provide the county auditor with all information required to properly record the sale, disposal, or retirement of an asset. In general, this information must include the value of any asset or value received from the disposal of the asset, including any proceeds of insurance or Risk Management Self- Insurance reimbursements. Refer to the Purchasing Policy and Procedures Manual under "Disposal of Property" for procedures covering the sale of capital assets. Assets Held in Trust Capital assets held by the County on behalf of a non-county entity and under the temporary control of the County should be recorded as "assets held in trust" until returned to the owners. This includes assets owned by the federal government that have been loaned to the County. This would also include "seized" assets that have been authorized by the Courts to be used by a county agency on a temporary basis. Assets purchased with federal or state grant funds in which the asset remains the property of the granting agency would also be included in this category. No depreciation would be recorded for assets held in trust until they ownership is transferred to the County. BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter A Depreciation Method for Infrastructure Assets (con't) (1) The County shall manage the infrastructure assets using an asset management system. The asset management system should: (a) Have a current inventory of infrastructure assets (b) Perform condition assessments of the eligible infrastructure assets and summarize the results using a measurement scale. (c) Estimate each year the annual amount to maintain and preserve the infrastructure assets at the condition level established and disclosed by the government. (2) The County shall document that the infrastructure assets are being maintained at approximately (or above) an established level. This level must be defined and disclosed by the County. The second requirement requires professional judgement due to the various asset management systems and condition assessment methods. The County will perform a condition assessment at least annually and a complete County wide assessment of its infrastructure at least once every three years, with the methodology for evaluation sufficiently documented, and that the results of the three most recent evaluations will provide reasonable assurance that the assets are being maintained at the disclosed condition level. Any methodology used by the County will be well documented in order that the assessment can be replicated. Annually the county engineer will be required to initiate a report to the Commissioners' Court detailing the networks and or subsystems that were evaluated and certify that the work performed preserved the network and or subsystem, or improved them. The County will rely on the Texas Department of Transportation's "Off-Road" report for bridge evaluation every two years. If the infrastructure assets are not maintained at the appropriate level the County will be required to depreciate infrastructure assets retroactively and amend previously issued financial statements. Residual or Salvage Value Residual or salvage value is an estimate of the amount that will be realized at the end of the useful life of a depreciable asset through sale or disposal. This value may be based on (1) general guidelines from some professional organizations such as GFOA, etc., (2) information from other governmental entities, (3) internal experiences, or (4) estimates provided by professionals such as engineers, architects, etc. if BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter A Depreciation Policy (con't) more than one fiscal year. Brazos County has established fixed assets as those assets with a unit cost of $5,000 or more and a useful life of 3 or more years. Infrastructure assets are assets whose useful life is usually over an extended period of time or through preservation efforts are normally maintained for a significantly longer time than most assets. Infrastructure assets are usually stationary assets and include roads, bridges, drainage systems, lighting systems, utility systems, etc. Depreciation Method for Non Infrastructure Assets It is anticipated that capital assets, excluding infrastructure assets, will be depreciated using the straight-line depreciation method. This method provides that depreciation for one- year equals the cost of the asset (less anticipated salvage value) divided by the years of anticipated useful life. It is proposed that depreciation will be calculated based on a zero anticipated salvage value, until adequate demographics are available to establish a salvage value and that annual depreciation will be based on assets owned at the end of the prior fiscal year. In the year of purchase one-half year's depreciation will be expensed and one-half year's depreciation will be expensed in the year of disposition if the asset has any net book value at the date of sale. During the budgetary process, depreciation will not be required to be budgeted by the operating department for which the asset supports. Depreciation is a non- cash item and therefore it is not anticipated that "cash" or a "cash equivalent" will exchange hands during the year, but will be expensed on an annual basis when the County presents its government-wide statements. Depreciation Method for Infrastructure Assets Statement 34 allows governments the option to use the "modified" approach when considering depreciation for infrastructure. The modified approach states that infrastructure assets that are part of a network or subsystem of a network and are not required to be depreciated as long as the following criteria are met. BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter A Capital Leases (con't) (c) County Offices should notify the County Auditor when potential capital leases are being developed to ensure that leases are recorded as required by Generally Accepted Accounting Principles. When a capital lease is involved, County Offices must provide the County Auditor with the same information regarding the asset as with any other asset acquisition. Depreciating Capital Assets (a) Capital assets would be depreciated over their estimated useful lives. Some assets such as land and library books (with current annotations), have unlimited useful lives and are considered inexhaustible. Therefore such assets are not depreciated. (b) The following have been determined to be appropriate depreciation methodology for the various classes, groups or individual capital assets. County Offices may be requested to provide the County Auditor with technical information necessary to evaluate an asset's useful life or residual value. Depreciation Policy Governmental Accounting Standard Board's Statement 34 "Basic Financial Statements- and Management's Discussion and Analysis - for State and Local Governments" issued by the Governmental Accounting Standards Board requires that local governments report capital purchases as assets on the balance sheet rather than as expenditures on the operating statement. This change in accounting is scheduled for the fiscal year beginning October 1, 2002. Statement 34 requires that local governments report capital assets at historical cost. The cost of a capital asset includes all costs associated with placing the asset into use, including freight, installation charges, and/ or professional fees. Capital assets include land, improvements (such as parking lots), right of way, buildings, vehicles, machinery, equipment, infrastructure and all other tangible on intangible assets used in operations of the government. Capital assets are also defined as those assets with a useful life of _ 9 "Poew 1, BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter A Capital Asset Donations (con't) (d) If the County receives a donation of a capital asset and intends to sell the asset immediately, revenue must be recognized (sales price). In these cases the receiving County office must provide supporting documentation regarding the sale or contract-to-sell to the County Auditor. This supporting documentation will allow the Auditor to determine when revenue should be recognized. And, allow the County Auditor to better advise the Commissioners' Court when they consider the donation. (e) In some cases, donated capital assets are given with the stipulation (time requirement) that the asset cannot be sold, disbursed or consumed until a specified number of years have passed or a specific event has occurred. For such cases, the capital asset should be reported as "Net Assets - Restricted" as long as the restrictions or time requirements remain in effect. The receiving County office should provide the County Auditor with any such restrictive stipulations. Donated assets are not to be depreciated, since the county did not give value for the asset. Capital Leases (a) Buildings, equipment or other assets leased by the County should be capitalized if the lease agreement meets any one of the following criteria: (1) The lease transfers ownership of the property to the lessee by the end of the lease term. (2) The lease contains a bargain purchase option. (3) The lease term is equal to 75 percent or more of the estimated economic life of the leased property. (4) The present value of the minimum lease payments at the inception of the lease, excluding executory costs, equals at least 90 percent of the fair value of the leased property. (b) Leases that do not meet any of the above requirements will be recorded as operating leases. Z9 g5 BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter A Capital Asset Donations (con't) Example: Landowner is willing to give the County the same 1.1 acres of right-of-way in exchange for a new fence and culvert. Cost of the fence is to be accounted for using the full cost procedure - materials, labor and overhead. Thus based on time sheets and material costs the value of the right of way is $4,150. The value given, while less than what is fair market would be the value of the right-of-way. Note: A voluntary contribution of resources between governmental entities is not a donation. In the event that fair value cannot be determined from the documentation available, it will be the responsibility of the county auditor's office to propose the fair value of the donation for consideration by Commissioners' Court. (b) County Offices must follow the Brazos County Fixed Asset Procedures Manual and current statutes before accepting donated property. In general, the following information must be obtained and provided to the County Auditor and the Purchasing Agent. After review the information will be assembled to submit to Commissioners' Court for approval: (1) The date the asset is to be placed into service (2) The asset's fair market value (3) The asset's salvage value (4) The asset's estimated useful life (5) Any ancillary charges required to place the asset into service (6) If the asset is part of a network or subsystem of a network (such as infrastructure) (c) Once accepted by Commissioners' Court, donated capital assets are reported at fair value at the time of acquisition plus ancillary charges, if any. Fair value is the amount at which an asset would be exchanged in a current transaction between willing parties. 14 BRAZOS COUNTY CAPITAL ASSET GUIDE Subchapter A Capital Asset Acquisition Cost (a) Capital assets should be recorded and reported at their acquisition or historical costs, which include the vendor's invoice cost, initial installation cost to include in-house labor, modifications, attachments, accessories or any item necessary to make the asset usable and render it available for service. Capitalized costs also include ancillary charges such as freight and transportation charges, in-transit insurance charges, handling and storage charges, site preparation costs and professional fees. (b) The County will not capitalize interest during construction on assets that are constructed or otherwise produced for the County's own use (including assets constructed or produced for the County by others for which deposits or progress payments have been made), unless the construction contract is greater than $15 million. (c) If something other than cash is used to pay for the asset, the fair-market value of the non-cash payment or consideration determines the asset's cost or acquisition value. When the value of the consideration paid can't be determined, the asset's fair-market value determines its cost. (d) In the event of a trade-in, the County's net book value of the asset being traded will be added to the purchase price of the new asset. For example: Purchase Price of Equipment $15,000 Accumulated Depreciation 8,000 Net Book Value 000 Capital Asset Donations (a) Donations are defined as voluntary contributions of resources to a governmental entity by a non-governmental entity. Donations may occur for assets fair market value. Example: Landowner gives the county right-of-way (est. 1.1 acs.) and land in the area is selling at $5,500 per acre. The value of the right-of-way to be recorded by the County is $6,050 (t.1 X $5,500). BRAZOS COUNTY CAPITAL ASSET GUIDE Capital Asset Classification Assets purchased, constructed or donated that meet or exceed the County's established capitalization thresholds and useful life requirements must be uniformly classified utilizing the County Auditor's account structure and the corresponding capital asset code structure. A list of current class code structures for personal and real property is available through the County Auditor Office's Fixed Asset System. A current copy of the codes is attached as Addendum "A" to this guide. Capitalization Thresholds Commissioners' Court for each major class of asset has established standard capitalization thresholds. All County offices are required to use these thresholds. Periodically the County Auditor will be responsible for reviewing current standards. The County Auditor upon review may propose changes to the County's uniform useful lives and residual values for each class of asset and subclasses where appropriate. Commissioners' Court must approve any change in the threshold for capitalization. Class of Asset Threshold Land/land improvements Capitalize All Buildings/building improvements $25,000 Improvements other than buildings $5,000 Infrastructure $50,000 Machinery, Equipment, and Other Assets $5,000 I Leasehold improvements $5,000 ISO, R i BRAZOS COUNTY CAPITAL ASSET GUIDE Introduction The implementation of the following policy will allow the County to make the transition to the Governmental Accounting Standards Board (GASB) Statement 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. The County will implement the new reporting model for infrastructure reporting and depreciation accounting using the modified approach The County Auditor's Office, the Purchasing Office, and Management of the Road and Bridge Department collaborated on the original draft of this policy. The State of Texas Capital Asset Guide served as the basis for the Brazos County Capital Asset Policy and was used with permission from the State Comptroller. The Capital Asset Policy is essential in assisting County Offices in implementing the new reporting requirements of GASB Statement 34. Detailed instructions and procedures will be developed by the County Auditor and the County Engineer as needs arise. Included in this guide are asset category definitions, capitalization thresholds, depreciation methodologies, and examples of expenditures for each class of assets. Additionally, guidelines for leasehold improvements and construction in progress have been included. Subchapter A. - Capital Asset Definitions and Guidelines Capital Asset Definitions and Guidelines Capital assets are real or personal property that have a value equal to or greater than the capitalization threshold for the particular category of the asset and have an estimated useful life of greater than three years. The County has invested in a broad range of capital assets that are used in the County's operations, which include the following major categories: (1) Land and land improvements (2) Right-of-way (3) Buildings and building improvements (4) Improvements other than buildings (5) Infrastructure (6) Machinery, equipment, and other assets (7) Leasehold improvements (8) Construction in progress ''f BRAZOS COUNTY CAPITAL ASSET GUIDE CONTENTS Page Subchapter E. Capital Asset Categories - Infrastructure (con't) Depreciation 23 Capitalization Threshold 23 Subchapter F. Capital Asset Categories - Machinery, Equipment, and Other Assets Machinery, Equipment, and Other Assets Definition 23 Jointly Funded Machinery, Equipment, and Other Assets 24 Depreciation 25 Capitalization Threshold 25 Subchapter G. Capital Asset Categories - Leasehold Improvements Leasehold Improvements Definition 26 Depreciation 27 Capitalization Threshold 27 Subchapter H. Capital Asset Categories - Construction in Progress Construction in Progress Definition 27 Depreciation 27 Capitalization Threshold 27 Appendix "A"- Capital Asset Codes 28 Appendix "B"- Glossary of Terms 31 Appendix "C"-Depreciation Lives 34 a4 PAft=L1Qn fi BRAZOS COUNTY CAPITAL ASSET GUIDE CONTENTS Subchapter A. Capital Asset Definitions and Guidelines Capital Asset Definitions and Guidelines Capital Asset Classification Capitalization Thresholds Capital Asset Acquisition Cost Capital Asset Donations Capital Leases Depreciating Capital Assets Depreciation Policy Depreciation Method for Non-Infrastructure Depreciation oflnfrastructure Assets Residual or Salvage Value Sale, Disposal, or Retirement of Capital Assets Assets Held in Trust Controlled Assets Subchapter B. Capital Asset Categories - Land and Land Improvements Land Definition Land Improvement Definition Capitalization Threshold Subchapter C. Capital Asset Categories - Buildings and Building Improvements Building Definition Capitalization Threshold Subchapter D. Capital Asset Categories - Improvements Other than Buildings Improvements Other Than Buildings Definition Capitalization Threshold Subchapter E. Capital Asset Categories - Infrastructure Infrastructure Definition Jointly Funded Infrastructure Maintenance Costs Preservation Costs Additions and Improvements Elements To Be considered For Capitalization _ Required Steps To Upgrade A Gravel Road il 3 j -1 7 1:'y Page 5 6 6 7 7 9 10 10 11 11 12 13 13 14 14 14 14 14 15 15 16 19 19 19 20 20 21 21 21 22 22 BRAZOS COUNTY, TEXAS CAPITAL ASSET POLICY Approved by C r -3 11 6 BRAZOS COUNTY CAPITAL ASSET GUIDE APPENDIX "A" BRAZOS COUNTY, TEXAS CAPITAL OUTLAY CLASSIFICATION AND ACCOUNTS 8000 - CAPITAL OUTLAY 8010 - BUILDINGS 801000 BUILDINGS - ORIGINAL COUNTY INITIATED STRUCTURE FROM FOUNDATION UP 801100 BUILDINGS - JP OFFICES 801300 BUILDINGS - PURCHASED 8020 - INFORMATION TECHNOLOGY SYSTEM 802010 802031 802033 802035 802050 8021-SOFTWARE SERVERS HP SERVER HARDWARE STORAGE COMPUTER REPLACEMENT NETWORK COMPONENTS HUBS, TRANCEIVERS SUCH AS ROUTERS, SWITCHES, 802110 SOFTWARE - MULTI-USER LICENSES OR COUNTY WIDE SOFTWARE SERVING MORE THAN ONE INDIVIDUAL OR DEPARTMENT 802111 NOVELL UPGRADES 802115 COMPUTER SOFTWARE - GIS 802116 COMPUTER SOFTWARE - ROAD-MANAGEMENT 802120 SOFTWARE FINANCIAL ACCOUNTING 802125 SOFTWARE CASH RECIEPT 802126 SOFTWARE JAIL MGT 802135 SOFTWARE JUDICIAL 802138 SOFTWARE ELECTRONIC IMG 8023 - COPIERS 802300 COPIERS 802305 COPIER REPLACEMENT 8028 - EQUIPMENT 802810 EQUIPMENT ELECTRONIC 802813 EQUIPMENT SWITCHING 802815 EQUIPMENT LAW LIBRARY 802830 EQUIPMENT JAIL 802840 EQUIPMENT SURVEILLANCE 802850 EQUIPMENT OFFICE 8028 -EQUIPMENT (con't) 802855 EQUIPMENT TYPEWRITERS tA?8 BRAZOS COUNTY CAPITAL ASSET GUIDE 802860 EQUIPMENT OTHER 802865 EQUIPMENT JUVENILE CENTER 802870 EQUIPMENT RADIOS 802890 EQUIPMENT R&B 802910 EQUIPMENT BUILDING MAINTENACE 802920 EQUIPMENT XRAY 802940 EQUIPMENT TELEPHONE 8030 - SYSTEMS 803200 803700 803800 803900 8040 - LAND 804400 FUEL MANAGEMENT IMAGING SECURITY VIDEO WARNING/CONFERENCE TELEPHONE SYSTEM AND LAND IMPROVEMENTS LAND DEMOLITION COSTS EXCAVATION, FILL, GRADING, DRAINAGE REMOVAL/RELOCATION SETTLEMENT CHARGES- TO INCLUDE TITLE SEARCHES, SURVEYING 804450 LANDFILL IMPROVEMENTS 804500 CAPITALIZED COSTS -LAND 804600 LEGAL FEES - LAND ACQUISITION PARK/RECREATIONAL AREA TAXES, APPRAISAL, 8050 - BUILDING IMPROVEMENTS 805100 TEXAS ENERGY PROGRAMS EXPANSION OF EXISTING BUILDING RENOVATION - EXTENDES USEFUL LIFE OF BUILDING INSTALLATION OF COMPONENT - ELEVATOR, AIR CONDITIONING, WIRING, PLUMBING - WHERE THERE WAS NONE BEFORE THAT EXTENDS USEFUL LIFE 8060 - IMPROVEMENT OTHER THAN BUILDINGS 806100 PARKING LOT FENCING - COUNTY PROPERTIES EXTERIOR LIGHTING 29 13 BRAZOS COUNTY CAPITAL ASSET GUIDE 8070 - INFRASTRUCTURE 807100 RIGHT OF WAY ACQUISITION RIGHT OF WAY ACQUISITION - EXCHANGE 807106 RO SH6 807121 RO SH21 COULTER/KURTEN 807150 ROADS CAPITAL 807200 BRIDGES 807300 DAMS 807400 UPGRADE ROAD FROM LEVEL I TO 2 UPGRADE ROAD FROM LEVEL 2 TO 3 UPGRADE ROAD FROM LEVEL 3 TO 4 8080 - VEHICLES 808900 VEHICLES ROAD AND BRIDGE WORK TRUCK PATROL CAR WORK CREW VAN JUVENILE VAN SEDANS 8090 - DONATED PROPERTY 809100 EQUIPMENT DONATED DONATED LAND DONATED BUILDINGS BRAZOS COUNTY CAPITAL ASSET GUIDE APPENDIX "B" Capital Asset Guide Glossary ANCILLARY CHARGES - Includes costs that are directly attributable to asset acquisition - such as freight and transportation charges, site preparation costs, and professional fees. BASIC FINANCIAL STATEMENTS - Comprised of the government-wide financial statements, fund financial statements, and notes to the financial statements. BASIS OF ACCOUNTING - Refers to when transactions or events are recognized for reporting purposes. CAPITAL ASSETS - "Land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period." (GASBS No. 34, para. 19) CAPITAL PROJECTS FUNDS - Used to report financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds or in trust funds for individuals, private organizations, or other governments). Capital outlays financed from general obligation bond proceeds should be accounted for through a capital projects fund. COUNTY ENGINEER - Director of the County's Road and Bridge Department and responsible to Commissioners' Court for developing the methodology to allow the County to preserve and improve its current infrastructure. DIRECT EXPENSES - Expenses that are specifically associated with a service, program, or department; thus, making them clearly identifiable to a particular function. ELIGIBLE INFRASTRUCTURE ASSETS - "Infrastructure assets that are a part of a network or subsystem of a network." (GASBS No. 34, para. 23) GENERAL CAPITAL ASSETS - Capital assets of the government that are not specifically related to activities reported in proprietary or fiduciary funds. General capital assets are associated with, and generally arise from, governmental activities. GENERAL FUND - Used to account for all financial resources except those required to be reported in another fund. 31 BRAZOS COUNTY CAPITAL ASSET GUIDE GENERAL INFRASTRUCTURE ASSETS - Infrastructure assets associated with or arising from governmental activities to include, but not limited to: roads, bridges, dams, drainage systems, retention ponds, utility systems, etc. INDIRECT EXPENSES - Expenses incurred for common or joint purposes benefiting more than one function or lower classification in the statement of activities and that cannot be readily assigned to the function or classification specifically benefited. Indirect expenses are those remaining after direct expenses have been determined and assigned directly to the applicable functions or other classifications. For example, some functions, such as general government, support services, or administration, report expenses that are, in essence, indirect or overhead expenses of the government's other functions. INFRASTRUCTURE ASSETS - "Long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets." (GASBS No. 34, para. 19) Examples of infrastructure assets include roads, highways, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems. Unless they are an ancillary part of a network of infrastructure assets, buildings should not be considered infrastructure assets under the provisions of GASBS No. 34. MODIFIED APPROACH - Approach that permits governments to not depreciate a network or a subsystem of a network of infrastructure assets if two requirements are met: (1) the government manages the eligible infrastructure assets using an asset management system that has certain characteristics, and (2) the government documents that the eligible infrastructure assets are being preserved approximately at (or above) a condition level established and disclosed by the government. NET ASSETS - The difference between assets and liabilities (that is, assets less liabilities). NETWORK OF ASSETS - "Composed of all assets that provide a particular type of service for a government. A network of infrastructure assets may be only one infrastructure asset that-is composed of many components. For example, a network of infrastructure assets may be a dam composed of a concrete dam, a concrete spillway, and a series of locks." (GASBS No. 34, footnote 14) SUBDIVISION - Real property in the County that has been subdivided into lots and blocks or into small subdivisions. The recognition and plating of the property has been recognized by and approved by the Commissioners' Court, and all easements and right-of-ways have been property transferred to the County. >e..y 09 BRAZOS COUNTY CAPITAL ASSET GUIDE SEGMENT - An identifiable activity (or grouping of activities) reported in an enterprise fund or an other stand-alone entity for which bonds or other debt instruments (such as certificates of participation) are outstanding. A segment has a revenue stream pledged in support of the debt and a requirement to separately account for the activity's revenues, expensed, gains and losses, assets, and liabilities. SUBSYSTEM OF A NETWORK OF ASSETS - "Composed of all assets that make up a similar portion or segment of a network of assets. For example, all the roads of a government could be considered a network of infrastructure assets. Interstate highways, state highways, and rural roads could each be considered a subsystem of that network." (GASBS No. 34, footnote 15) `y~3 > BRAZOS COUNTY CAPITAL ASSET GUIDE APPENDIX "C" Deprecation Lives The County will use the following lives to provide annual depreciation for general fixed assets and infrastructure (if applicable): Appliances 8 years Building 40 years Building improvement 20 years Building-Temporary 25 years Bridge - concrete girder 20 years Bridge - concrete slab 35 years Bridge - culvert 20 years Bridge - pre-stressed girder 30 years Bridge - steel girder 25 years Bridge - steel truss 45 years Bridge - timber stringer 25 years Broom Sweeper 5,000 hours Chip Spreader 10 years Computer - Hardware 6 years Computer - Software 8 years Copiers 5 years Curbs and gutters 20 years Dam 50 years Dozer 6,000 Hours Drainage facility 20 years Excavator 6,000 hours Furniture & Fixtures 7 years Fire hydrants 25 years General Equipment 6 years Land None Land Improvements- Parking Lots, sidewalks 20 years Library Books (collectively) None Lighting system - traffic, outdoors 15 years Loader - Backhoe 6,000 Hours Loader - Track and Wheel 8,000 Hours Maintainer/Grader 9,000 Hours Mower/Shredder 5 years Radio towers 20 years Right-of way None Roads - concrete 30 years Roads - asphalt/rural 15 years Roads - asphalt/urban 20 years Roads - Sealcoat 10 Years Roads - gravel 15 years Roads - non-paved (dirt) 50 years Rollers 15 years Signage 10 years q34 a o a ALAI 3 BRAZOS COUNTY CAPITAL ASSET GUIDE APPENDIX "C" (con't) Deprecation Lives Tractor 6,000 Hours Trailers 10 years Haul/Dump/Tractor/Water/Sand Truck 300,000 miles Vehicles - Road and Bridge 90,000 miles Vehicles - SO- Investigation, Special Services and Administration 90,000 miles Patrol and Work Crew Vans 75,000 miles Jail Pickups, Vans and Transport Vans 100,000 miles Water Truck 120,000 miles zX A v jA BRAGOS OUNTY OFFICE OF THE SHERIFF CHRISTOPHER C. KIRK JIM MANN, CHIEF DEPUTY 300 E. 26TH ST. SUITE 105 WAYNE DICKY, JAIL ADMINISTRATOR BRYAN, TEXAS 77803-5359 To: County Judge Randy Sims Commissioner Tony Jones Commissioner Duane Peters Commissioner Kenny Mallard Commissioner Carey Cauley, Jr. From Sheriff Christopher C. Kirk Date: April 2, 2003 Subject: Terrorist Response Alert Program-Site Agreement The Brazos County Sheriffs Office has placed a Terrorist Response Alert Program-Location Application on the agenda for Commissioner's Court consideration. This agreement is with Cellular Charging Concepts, Inc. Under this agreement, CCC will provide two Terrorist Response Alert Program (TRAP) Systems in the Brazos County Courthouse. These systems will be provided at no cost and no obligation to the county. The system will require high speed inter-net access to be installed/provided at CCC, Inc. expense. This agreement can be terminated at any time by thirty day written notice by either party. The TRAP System is a stand alone kiosk that displays a variety of information. This information includes national alerts issued by federal law enforcement agencies; AMBER Alert information; and other local law enforcement information such as crimestoppers most wanted. Further, the system will constantly create a video recording of the area near the unit. If a system was placed near the courthouse entrance, the recording capability would be useful in the event of a security threat or critical incident. The kiosk also has the ability to call 911 in the event of an emergency and recharge cell phone batteries. The equipment, system operation, and maintenance costs are funded by advertising that is displayed on the screen. CCC, Inc. has stated that no offensive advertising will be accepted. The stated goal of CCC, Inc. is to place TRAP Systems in public places across the nation to provide valuable information to the public. They are currently concentrating on airports, malls, and government buildings. I believe that the TRAP System will provide valuable information to the general public and would be asset to the courthouse and other public locations. In the event that the system does not function in the manner described, the agreement can be canceled without cost or obligation to the county and the units will be removed. Please contact me if you have any questions. OFFICE (979) 361-4100 40 ADMINISTRATION (979) 361-4148 FAX (979) 361-4170 _ A a~ Ids T.R.A.P. Location Application Location Name Brazos County Courthouse # of Locations 2 Owner/Authorized Representative Wayne Dicky Address 300E 26th St Ste tn5 Phone( 979) 361-4168 City Bryan State TX Zip 77803 Cell (979 ) 777-8551 Fax (J19 ) 361-4170 Web Address www.co.brazos x uc E-Mail wdicky@co.brazos.tx.us (For additional locations, attach separate sheet of paper) Company Name Brazos County Phone Address City State Zip Fax ( ) Days of Operation (circle) a u 49~(SO©Sat Sun ALL Hours of Operation Monday - Friday 8, nn AM 9 • nn PM Approximate Monthly Traffic Proposed T.R.A.P.Location Courthouse Security Entrance This application submitted this 3rd day of Ant> , 200, by Brazos co my (herein referred to as Client) to Cellular Charging Concepts, Inc and Homeland Intelligence Technologies (herein referred to as CCC/HIT) for consideration of placing it's patent pending T.R.A.P. System in Client's location(s). If approved, CCC/IIIT will place this equipment in the client's locations free of charge, be responsible for it's maintenance, as well as update the equipment as needed. Client agrees to allow CCC/HIT to place advertisements on the equipment provided. No advertiser in direct competition with Client's location, and no advertising considered offensive will be placed on units. Client will not be liable for damage or theft of equipment, however, Client will exercise due diligence to prevent incidents of this nature. In the event that CCC/HIT and it's representatives, or the Client fails to reasonably uphold their responsibilities, written notification to either party will be made to remedy situation within 10 days upon receipt of notification. Failure to remedy within 10 days may result in termination of this agreement with a thirty day written notice via certified mail by either party. If approved by CCC/HIT, this agreement will be ir. force for one year from date of delivery, which will be determined by CCC/HIT and will be automatically renewed annually under same terms and conditions upon agreement of both parties. This agreement can be terminated at any time by thirty day written notice by either party. `f .13 r , This agreement in not binding until a„ ~ifficer or authorized agent of CCC/HIT affixes signature in office use only box below. Special Considerations: CCC/HIT Representative Client fop, :P. ~ 1 T.R.A.P. Location Application Location Name Brazos County Courthouse # of Locations _J2 Owner/Authorized Representative Wayne Dickv Address 300 R 26th St., Sra ins City Bryan State T% Zip 77803 Phone 361-4168 Cell (_9 9 1 777-8551 Fax (979 1 361-4170 Web Address MM,po. ra oc x us E-Mail wdicky@co.brazos.tx.us (For additional locations, attach separate sheet of paper) Company Name Brazos County Phone Address city State Zip Fax Days of Operation (circle) a ue 49 ©©Sat Sun ALL Hours of Operation Monday - Friday: R - nnnr` s- On Pm Approximate Monthly Traffic _ Proposed T.R.A.P. Location _ Courthouse 3rd Floor This application submitted this 3rd day of ~p t t 200_1_, by Brazos Co .n yce (herein referred to as Client) to Cellular Charging Concepts, Inc and Homeland Intelligen Technologies (herein referred to as CCC/HIT) for consideration of placing it's patent pending T.R.A.P. System in Client's location(s). If approved, CCC/HIT will place this equipment in the client's locations free of charge, be responsible for it's maintenance, as well as update the equipment as needed. Client agrees to allow CCC/HIT to place advertisements on the equipment provided. No advertiser in direct competition with Client's location, and no advertising considered offensive will be placed on units. Client will not be liable for damage or theft of equipment, however, Client will exercise due diligence to prevent incidents of this nature. In the event that CCC/HIT and it's representatives, or the Client fails to reasonably uphold their responsibilities, written notification to either party will be made to remedy situation within 10 days upon receipt of notification. Failure to remedy within 10 days may result in termination of this agreement with a thirty day written notice via certified mail by either party. If approved by CCC/HIT, this agreement will be in force for one year from date of delivery, which will be determined by CCC/HIT and will be automatically renewed annually under same terms and conditions upon agreement of both parties. This agreement can be terminated at any time by thirty day written notice by either party. P W%4 I I -q .a - This agreement hi not binding until an officer or authorized agent of CCC/HIT affixes signature in office use only box below. Special Considerations: CCC/HIT Representative Client A BRAZOS COUNTY PURCHASING MANUAL 2003 Originally Adopted: March 5, 1996 Effective: April 1, 1996 Revised: 1. March 27,1996 2. April 16, 1996 3. May 26,1998 4. July 16, 1999 5. April 8, 2003 BRAZOS COUNTY RESOLUTION Amending of Brazos County Purchasing Policy WHEREAS, the following policy, having been discussed and reviewed by the Commissioners Court; and, WHEREAS, the following policy supersedes and replaces any and all previous policies, either written or unwritten; and, WHEREAS, all department heads are to ensure that all employees are aware of the attached policy and for their compliance with same; and, THEREFORE, it is ordered, adjudged and decreed that the following policy for Purchasing is adopted by Brazos County, effective the 8th day of April. 2003 to remain in effect until finther orders are issued by this Court. IN TESTIMONY ww/ Randy Sims ~G Tony Jones E. Duane Peters G. Kenny Mallard, Jr._ Carey Cauley, Jr. witness our hands this 8th day of April. 2003. Brazos County Judge Commissioner Pct. 1 Commissioner Pct. 2 Commissioner Pct 3 Commissioner Pct. 4 Karen McQuee , ounty C erk t•4 ry Y FORWARD Public purchasing is the process of acquiring goods and services that are necessary to provide the public with the services they require. The goals of public purchasing include the following: * purchase quality goods and services * get the best possible price for goods and services * delivery of goods and services when and where needed * assure a continuing supply of needed goods and services * guard against misappropriation of any assets procured Most importantly, public purchasing must ensure: * that responsible bidders are given a fair opportunity to compete for the County's business. This is done partially by the statutory requirements for competitive bids and proposals, and partially by the County's own purchasing procedures * that public funds are safeguarded. Although the purchasing department does not usually designate the types of purchases to be made, it should see that the best value is received for the public dollar * that public spending is not used to enrich elected officials or government employees, or to confer favors on favored constituents This manual has been adopted by the Commissioners Court of Brazos County for use by all elected officials and employees. It is intended to assist them in reaching these goals while complying with all applicable laws and local policies. This manual cannot address every situation. When an unusual situation occurs or a difficult legal problem arises, the final authority for county purchasing procedures is the law itself. This manual will outline the methods of procurement and the duties and responsibilities of the Purchasing Agent and Departments as adopted and approved by the Brazos County Commissioners Court on the 8th day of April, 2003. , 0 ~ _ - _ STATEMENT OF PURCHASING POLICY It is the policy of Brazos County that all purchasing shall be conducted strictly on the basis of economic and business merit to best promote the interest of the citizens of Brazos County. Brazos County encourages free and unrestricted competition on all bid requests and purchases ensuring the taxpayers the best possible return on each dollar. All contracts and purchases shall be handled so as to obtain the best value for the County, with bids or quotations solicited whenever practical. The responsibility of purchasing ultimately rests with the Commissioners Court. The Purchasing Agent, as an agent of the Commissioners Court, aids in the purchasing process but is subject to the Court's direction as to reasonable specifications and maximum prices on items to be purchased. The Brazos County Commissioners Court has established a Purchasing Department to assist each elected official, department head, and their staff to procure necessary goods and services at the best possible price within all Federal, State and County purchasing laws. The Federal Common Rules of Procurement, OMB Circular A-128 and A-133 will be referred to and upheld with all purchases utilizing Federal funds, particularly in grants and pass through funds. The Texas State Legislature has passed and made a part of the Local Government Code, Section 262, more commonly known as the County Purchasing Act. It shall be the policy of Brazos County to fully comply in all aspects with the rules, regulations, and procedures, as they appear and are amended from time to time, in that act. Brazos County will further comply with Section 113.901 of the Local Government Code as it pertains to the requirements for approval of accounts and requisitions. Furthermore, it is the intention of the Brazos County Commissioners Court that all individuals within each department directly or indirectly involved in the purchasing function shall follow the purchasing policies and procedures approved and adopted by this Commissioners Court as outlined in this manual effective and in force April 8, 2003 and as amended from time to time. Sao BRAZOS COUNTY PURCHASING PROCEDURES GLOSSARY OF TERMS Authorized Signature - A signature that has been approved by the department head to initiate a purchase request and which is recognized by the County Auditor to authorize the expenditure of funds from a designated account. Award Basis - Factors that have been determined to be necessary, which lead to a decision to make a purchase at what has been determined to be the "best price" and for which delivery will be accepted from a selected vendor. Bid Advertisement - A Public notice put in a newspaper of general circulation containing information about an Invitation For Bid or a Request for Proposal. Bid Bond - A bond required of a contractor that ensures that the contractor will enter into the contract for which he has submitted a formal written bid and/or proposal. Bidder's List - A list (maintained by the purchasing department) of vendors who have signified in writing an interest in submitting bids for particular categories of goods and services. Buyer - Any employee of the Purchasing Department functioning under the direction of the Commissioners Court. Capital Items - A capital item is generally an item that has a unit cost in excess of $5000.00 and has a life expectancy of greater than three (3) years. Certain items with a unit cost of less than $5000.00 are designated as reportable for the purpose of equipment accountability, e.g., desks, chairs, computers, etc. Commodity Code - A specific group of materials categorized into distinct classes that have been assigned a numerical reference number within the accounting and reporting system. Competitive Bidding - The process wherein a vendor openly competes with other vendors through a formal process for the County's business. Contract - A formal, written agreement executed by the County and a vendor containing the essential terms and conditions under which goods or services are to be furnished to the County. A contract becomes a commitment of the County's funds when properly signed and dated by the County Judge. Customers - Is a term that encompasses all the operating departments within the County. Encumbrance - The process wherein the County's financial system reserves budgetary funds for the purchase of supplies, goods, services. ~~•y' , a. A I Expedite - The procedure to do what is necessary to speed up the process of delivery of merchandise to the department, either through the requisition process or through vendor assistance. F.O.B. Destination Point - Is a designation that indicates that transportation charges are paid by the vendor, and the vendor is responsible for the merchandise until it reaches the County's designated delivery point. F.O.B. Shipping Point - Is a designation that indicates that shipping charges are added to the invoice and paid for by the County. The County takes possession of the goods at the point of shipment and is responsible for them from that point. Fund Approval - The process wherein the County Auditor verifies that moneys are available at the specific budgetary fund level to encumber the expenditure within the approved budget, as well as available to make the payment for the goods and services when delivered. Goods - A generic term that includes all types of property to be purchased by the County; equipment, supplies, materials, component and repair parts. Invitation To Bid - Is a formal written document that requests from bidders a firm price and delivery details for specified merchandise listed on a purchase requisition. An invitation to bid is always required when the anticipated level of expenditure will be greater than $25,000. It may be used at anytime the Purchasing Agent and the Commissioners Court feels it is justified. Lease - Is a specific contract for the use of real estate or personal property for a specified period of time with a specified rent or other compensation to be paid. Lowest Responsible Bid - Is the lowest bid or offer received by the County. It meets all the specifications, requirements, terms and conditions of the Invitation To Bid. It is expressly understood that the lowest responsible bid includes any related costs to the County, using a total cost concept. The term "responsible" refers to the financial and practical ability of the bidder to perform the contract. The term is also used to refer to experience or safety record of the vendor with the County. Payment Authorization - Are authorizations that should be used for the following: expenditures identified by the purchasing policy as not requiring a "purchase order"; expenditures that could not be adequately anticipated or quantified; or purchases where the initiation of a purchase order would be "after the fact." Performance Bond - Is a bond that is normally required of all contractor's doing business with the County, which guarantees vendor performance during the execution of the contract. 3u : Z ' Purchase - An act that includes the acquisition of goods or services, to include the act of leasing personal or real property. Separate, sequential and component purchases shall be treated as a single purchase. Purchasin¢ - The act, function and responsibility for the acquisition of goods and services. Purchasing Department - A department created to be responsible for assisting all departments with the acquisition of goods and services to support their departmental mission. A department created by and responsible to the Commissioners Court of Brazos County. The Purchasing Department has the express responsibility for ensuring that County departments are in compliance with the policies and procedures set out in this manual. Purchase Order - A formal, binding, legal agreement issued by the County's Purchasing Department. A purchase order is requested by a departmental requisition that details the merchandise or services required. When accepted by a vendor without qualifications within a specified time period, the agreement becomes a contract. A Purchase Order grants the vendor the authority to deliver an invoice for goods and services. It is the County's commitment to accept the goods and services and pay for them at the agreed price. Request For Proposal - A formal written document requesting that potential vendors make an offer for services to the County. The offer allows for negotiations after the proposals have been received, but before a contract is awarded. This process is normally used for the acquisition of insurance coverage, and for high technology items. Required Delivery Date - A specific date for delivery requested by the ordering department and which has been placed on the purchase order by the Purchasing Department and transmitted to the vendor. Requisition - The source document for all purchasing activity. This form communicates a department's needs to the Purchasing Department, and authorizes the Purchasing Department to enter into a contractual relationship for delivery of the goods and/or services. The requisition is for communicating internal requirements and should not be used by the departments for the order and delivery of goods and/or services. Services - Is a generic term to include all work or labor performed for the County on an independent contractor basis, including maintenance, construction, manual, clerical or professional services. Specifications - This statement contains a detailed description of the terms of the contract, as well as an enumeration of particulars, required details, and all other restrictions for goods and/or services. The enumeration of the specifications should be descriptive, but not restrictive. . 4 aa~3 State Contract Item - An item available through the State of Texas Building and Procurement Cooperative Purchasing Program. The State has publicly advertised and received qualified bids for specific items. These appear on a listing periodically published by the State. Brazos County has elected to participate in the cooperative purchasing program for governmental subdivisions and other state agencies. Surplus Property - Item no longer needed by a department, regardless of its value or condition. Vendor - Is a generic term applied to individuals and companies alike who provide goods and services to Brazos County. ETHICAL STANDARDS AND RELATIONSHIPS I. ETHICAL STANDARDS Public employees should conduct themselves in such a manner as to foster public confidence in the integrity of Brazos County's purchasing process. To achieve this purpose, it is essential that persons or companies doing business with Brazos County observe the ethical standards prescribed: A. It shall be a breach of ethics to attempt to realize personal gain through public employment with Brazos County by any conduct inconsistent with the proper discharge of the employee's duties. B. It shall be a breach of ethics to attempt to influence any public employee of Brazos County to breach the standards of ethical conduct set forth in this code. C. It shall be a breach of ethics for any employee of Brazos County to participate directly or indirectly in a procurement when the employee knows that * the employee or any member of the employee's immediate family has a financial interest pertaining to the purchase * a business or organization in which the employee, any member of the employee's immediate family, has a financial interest in the purchase * any other person, business or organization with whom the employee or any member of the employee's immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement D. It shall be a breach of ethics to offer, give, or agree to give any employee or former employee of Brazos County, or for any employee or former employee of Brazos County to solicit, demand, accept or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendations, preparation of any part of a program requirement or purchase request, influencing the content of any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter pertaining to any program requirement or a contract or subcontract, or to any solicitations or proposal therefore pending before this County. E. It shall be a breach of ethics for any payment, gratuity or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor for any contract for Brazos County, any person associated therewith, an inducement for the award of a subcontract or order. ,<?r. 6y y F. The prohibition against gratuities and kickbacks prescribed above shall be conspicuously set forth in every contract and solicitation therefore. G. It shall be a breach of ethics for any employee or former employee of Brazos County knowingly to use confidential information for actual or anticipated personal gain, or the actual or anticipated gain of any person. NOTE: These common standards of ethics have been reproduced from the Model Procurement Code for State and Local Governments developed by the Texas State Comptrollers Office. II. RELATIONSHIPS The buyer-seller relationship is one of mutual confidence and satisfaction between the County and the Supplier. It is the Purchasing Departments responsibility to maintain a list of approved, qualified bidders for all commodities needed and to maintain a list of preferred providers for annual contracts. To avoid the appearance of conflict of interest, all County personnel should not accept favors, gifts, or entertainment offered by any Supplier to the County. RESPONSIBILITIES I. PURCHASING DEPARTMENT A. Assist in the selection of responsible vendors B. Assist in obtaining pricing information C. Determine that the purchase price is reasonable and that requirements for competition and performance have been met D. Assist the individual departments to develop quality and quantity specifications for goods and services to be purchased along with required delivery schedules E. Encourage competition between vendors through negotiations, competitive bidding and quantity buying F. Utilize annual supply agreements whenever possible in order to maximize the advantages and economies of quantity buying G. Continuously monitor requisitions by all departments to facilitate consolidation of purchases where possible H. Ensure that the County has the ability to take advantage of quantity and pricing discounts whenever they are available 1. Explore the use of cooperative purchasing programs with the State of Texas and other local governmental units J. Control the cost of purchasing for the County H. A. Allow sufficient time for the Purchasing Department to issue a purchase order and the vendor to make delivery B. Assist the Purchasing Department with specifications that require an engineering or technical background C. When requested, supply the Purchasing Agent a list of anticipated requirements in advance D. Inform the Purchasing Department of any abnormal or unusual demands E. Under any circumstances, not to obligate Brazos County without a purchase order, except for an emergency or expedited purchase, as outlined in this manual F. Avoid illegal purchases G. Requisition items with a complete, clear, concise description of the item(s) or service(s) requested PURCHASE CATEGORIES The County has established various levels of purchasing categories that have been outlined below. The purchase of all goods and services described in this manual fall within one of the established categories. These categories are necessary in order to evaluate whether or not competitive bidding requirements apply to the purchase. If it is determined that competitive bidding requirements do not apply, then the purchase category will indicate what pricing information must be obtained from vendors before a purchase order can be placed. When evaluating which category a purchase will fall into, it is important to bear in mind certain requirements established by County Statutes and State Law. The Texas Local Government Code requires competitive bidding or proposals for all County purchases exceeding $25,000.00 in amount for a product or with a vendor. The laws also prohibit the County from making "separate, sequential, or component purchases to avoid the competitive bidding requirements." A violation is a Class B misdemeanor ($2,000.00 fine and/or 180 days in jail) and conviction results in immediate removal from employment and ineligibility for other public office for four years (LGC Section 262.034 - 262.035). By routing all purchases through the Purchasing Department, it becomes possible for purchases of similar goods and/or services to be identified and the purchase from the same vendor to be noted. In this manner it becomes possible to identify areas where competitive bidding or proposals will be required. THE PURCHASING AGENT RESERVES THE RIGHT TO DEVIATE FROM THE POLICY FOR ANY PURCHASES UNDER THE $25,000.00 COMPETITIVE BIDDING THRESHOLD, if it is in the best interest of the County, if it will facilitate specific County operations. If a deviation from the policy is required, the Purchasing Agent will authorize the deviation by signing the Purchase Order giving approval. A written explanation may be requested from the using department by the Purchasing Agent. 1. CATEGORY 1 - PURCHASE LESS THAN $500.00 A. The individual department head may exercise discretionary purchasing and acquisition of such purchases as authorized within the scope of this manual and within the authority provided within the current fiscal year budget. These purchases will be accomplished through the use of automated requisitions created and issued directly by the department, and approved by the Department Head, Purchasing Department (County Local Government Code, Section 262.011(d), and County Judge. Competitive quotations are encouraged, but not required. All such purchases require a purchase order issued by the Purchasing Department. B. For all Departments that are not located in the Courthouse area: a. Department initiates requisition and has the Department Head (or designated person) sign it b. Department faxes Requisition to the Purchasing Department Y~~ 10 c. Department will interoffice original requisition to Purchasing Department d. Purchasing will get proper signatures, convert the requisition to a purchase order and fax the purchase order back to the Department e. Purchasing will interoffice the original purchase order back to the department (The Purchasing Department will make this procedure a priority and will process the requisition(s) in a timely manner. If a requisition is needed immediately, please call the Purchasing Department and make them aware of the situation.) II. CATEGORY 2 - PURCHASES $500.00 OR MORE BUT LESS THAN $2,000.00 A. Three telephone quotations, at minimum, are required for purchases of goods and services with a total cost of $500.00 or more, but less than $2,000.00. The ordering department may solicit the quotations or request the Purchasing Department to do so. The department is responsible for initiating the requisition. All such purchases require a purchase order issued by the Purchasing Department. III. CATEGORY 3 -PURCHASES $2,000.00 OR MORE, BUT LESS THAN $10,000 A. A minimum of three written quotations are required for purchases of goods and services with a total cost of $2,000.00 or more, but less than $10,000.00. The ordering department may solicit the quotations or request the Purchasing Department to do so. The department is still responsible for initiating the requisition. All such purchases require a purchase order issued by the Purchasing Department. IV. CATEGORY 4-PURCHASES OF $10.000.00 OR MORE BUT LESS THAN $25.000 A. The Purchasing Department will be responsible for securing specifications and for soliciting vendor responses and price quotes. All purchases require a minimum of three written quotations, or at the discretion of the Purchasing Agent competitive bid responses may be solicited. All purchases require a purchase order issued by the Purchasing Department and approved by the Purchasing Agent and the County Judge. V. CATEGORY 5 - PURCHASES MORE THAN $25,000.00 A. Sealed competitive bids or proposals must be secured by the Purchasing Department for all transactions reasonably anticipated to be in excess of $25,000.00. This category not only includes single product or service purchases, but several purchases with the same vendor for different products (See Section on Competitive Bid Process). 41, THE REQUISITION PROCESS The Purchasing Manual will attempt to guide you through both the manual requisitions and the automated requisition system. Anyepartment with access to Pentamation and has the proper training will be required to generate an automated requisition. A. PROCEDURE FOR APPROVAL TO USE THE AUTOMATED REQUISITION SYSTEM: 1. Department head will submit a letter to the Auditor, requesting permission for a designated employee(s) to be approved for access to the automated requisition system 2. Auditor will approve or disapprove 3. If approved, the Auditor will get in touch with the IT department for approval of employee's training and instruction 4. The IT department will train the designated employee and assign them a user account number and access to the financial system. 1. GENERAL INFORMATION A. Local Government Code, Section 113.901 requires the use of requisitions. "The requisition must be made, signed, and approved. B. Any commitment to acquire goods or services without an authorized purchase order is prohibited except as allowed in this manual for emergency situations and/or in times when downtime of equipment or idleness of that equipment would result in unnecessary hardship or expense to the County (see Emergency/Expedited Purchase Orders). C. The following examples illustrate purchasing procedures that have as their intent the avoidance of competitive bidding requirements. They are in violation of current statutes (Local Government Code, Section 262.023): * Component Purchases - purchasing a series of components that normally would have been purchased as a whole * Separate Purchases - purchasing an item in a series of separate purchases that normally would have been purchased in one * Sequential Purchases - purchases made over a period of time that in normal purchasing practices would be made as one purchase D. The requisition must be prepared far enough in advance of the Required Delivery Date (RDD) to enable the County Purchasing Department to perform it's duties, and to allow for delivery by vendor. 12 4 o-3) T 'All E. The department head, or duly authorized person within the department, initiates, prepares, and signs the requisition. THE DEPARTMENT HEAD IS ULTIMATELY RESPONSIBLE FOR VERIFYING THAT SUFFICIENT FUNDS ARE AVAILABLE TO COVER THE PURCHASE AND MAY BE PERSONALLY LIABLE FOR THE PAYMENT IF FUNDS ARE NOT AVAILABLE TO COVER THE PURCHASE. F. In order to ensure a timely purchase, a requisition must be completed totally and contain all required data, thereby allowing proper processing. For faxed requisitions under $500.00, the department will be responsible for obtaining the Department Head signature and the Purchasing Department will be responsible for obtaining the County Judge and Purchase Agent signature. G. The County Purchasing Department is available to assist end-user departments with vendor selection. Purchasing can refer users to vendors whose products or services have been satisfactorily utilized by other County offices. H. If a trade-in is involved, requisitions must show the equipment number of the equipment to be traded. Items that lack an assigned equipment number should be identified on the requisition by the complete serial number, make, model, and any other pertinent descriptive information. 1. Requisitions will not be approved by the Purchasing Department when it is noted that sufficient funds are not available. The department head will be notified and the requisition returned noted "budget amendment necessary prior to approval." J. It is recommended that each department maintain an internal control of it's requisitions. The department should keep a copy of each requisition until the requested item is received. K. A PAYMENT AUTHORIZATION FORM may be used for utility bills, court appointed attorneys, indigent health care, child placement for juvenile detention, foster care expenses, and any other payment authorizations approved by the County Auditor. These payment authorizations shall be sent directly to the County Auditor's office for review and approval before forwarding to the County Judge. A purchase order is not required when using a payment authorization. L. Vendor Identification Form. This form allows departments to begin purchases with companies or individuals with whom Brazos County has never done business. This form should be completed by the requesting department BEFORE the purchase of any product or service from such a company or individual. Completed forms are to be returned to the Treasurer's Office. M. The Information and Technology Department (IT) will review all purchase requests made by departments for all IT purchases. The procedure to insure compatibility and standardization is as follows: a. The Department will contact IT with a request for software and/or hardware. b. The IT Department is responsible for initiating the requisition and sending it to the Department for a signature. c. The Department should return the requisition to IT. d. IT will forward the requisition to the Purchasing Department for a purchase order. e. All purchased equipment and goods are to be received at the IT Department and distributed to the requesting department. N. When departments sustain loss or damage to equipment or buildings, the funding for replacement or repair is coordinated through the Risk Management Department. The procedure is as follows: a. All damages to County property shall be reported to Risk Management. Report shall be made as soon as possible, but no later than 24 hours after occurrence. Motor Vehicle accidents shall be reported immediately. b. Claims Processing: i. Department will insure that Risk Management is provided with a written statement of circumstances surrounding the accident. ii. Risk Management will obtain three estimates for repair, one being from the manufacturers dealer. iii. Risk Management will obtain an accident report from the investigating agency. iv. Upon receipt, Risk Management will fax the three estimates to the appropriate insurance adjuster. The adjuster may wish to inspect the vehicle or request the county to provided estimates. v. All settlement checks are to be received by the County Treasurer. vi. Department with damages will bring a requisition and quotes to the Purchasing Department, recommending the lowest and best vendor. vii. Purchasing will issue a Purchase Order and inform Auditor of amount of Purchase Order. viii. The County Auditor will be responsible for coordinating with Commissioners Court budget adjustments. ix. Department with damages will be responsible for insuring that equipment is repaired. 0. If there is a declaration of a local disaster, the County Judge is the only authority to approve purchases and/or disbursements. P. In Local Government Code 262.011 (1) it states that the County Purchasing Agent may have assistants to aid in the performance of the agent's duties. 14 IL THE MANUAL REQUISITION A. Assuming that funds are available, a non-automated requisition is prepared. The following information should be provided by the using department on each manual requisition. 1. Pay To - name of vendor, if known 2. Address - address and phone number of vendor, if known 3. Buyer - name or initials of individual preparing the requisition 4. Division - the name and phone extension of the division 5. Date Entered - requisition date 6. Date Required - required delivery date and or time 7. Order through Department - check here if you would like the Purchase Order returned to you so that you may place the order 8. Order through Purchasing - check here if you would like the Purchasing Department to place the order and send a copy of the P. O. to you 9. Description - specifications or complete description of item and/or service, model or parts number is applicable 10. Quantity - quantity required 11. Unit Price - unit price, if known 12. Freight - shipping and handling costs, if known; otherwise specify "add" or "none" 13. Fund/Division/Account/Project Number - budget line item from which purchase will be funded 14. Requisitioned By - the requisition must be signed by an authorized department representative, or department head B. Upon receipt of the requisition, the Purchasing Department will prioritize the requisition based on delivery requirements. It is the intention of the Purchasing Department to process all requests within a reasonable amount of time. If a request cannot be processed within a reasonable time, the department will be notified. C. Approval and signatures are affixed by the Department Head/Authorized Individual, County Judge, and Purchasing Agent/Buyer. The requisition will then be converted to an automated purchase order and then distributed as follows: 1. COPY I - VENDOR: the white copy shall be retained by the Purchasing Department for record retention. 2. COPY 2 - TREASURER-ACCOUNTS PAYABLE: the yellow copy shall be returned to the department. Once goods and/or services are received this copy shall be initialed and dated by the department, forwarded to the County Auditors Office and ultimately forwarded to the Treasurer's Ojjice for payment of goods/services. 3. COPY 3 -DEPARTMENT: the pink copy shall be retained by the Department for record retention. 23~ 4~ 15 III. THE AUTOMATED REQUISITION A. Assuming that funds are available, the automated requisition is prepared using a 3 part preprinted form. The following information should be provided by the using department on each electronic requisition: 1. Requisition - the system will automatically number the requisitions 2. Division/Fund - enter the division/fund generating the requisition 3. Date Requested - the system automatically dates the requisition 4. Date Required - required delivery date/time 5. Ship Code - the address to which goods should be delivered 6. Receiving Vendor/Address/Number- the name and address of vendor, if known; this field requires the number assigned to a vendor by the Treasurers Office 7. Buyer - name/initials of individual able to answer/clarify questions regarding request 8. Comments - notes or comments, if any 9. Vendor - same as (6) above 10. Commodity - commodity code, if known 11. Stock No. - full description and/or specifications of items requesting 12. Measure - unit of measure, i.e. each, foot, ton, case, etc. 13. Quantity - quantity required 14. Unit Price - unit price, if unknown - provide estimated price 15. Extended $ - system automatically extends pricing 16. Freight - shipping and handling costs, if known 17. Division/Fund/Account/Project/Account - budget line item from which purchase will be funded B. With the automated requisition process, the Department will be able to print the requisition and approve by authorized signatures. C. Upon receipt of the requisition, the Purchasing Department will prioritize the requisition based on delivery requirements. It is the intention of the Purchasing Department to process all requests within a reasonable amount of time. If a request cannot be processed within a reasonable time, the department will be notified. D. Approval and signatures are affixed by the Department Head/Authorized Individual, County Judge, and Purchasing Agent/Buyer. The requisition is then distributed as follows: COPY I - PURCHASING-ARCHIVAL: The white copy shall be retained by the Purchasing Department for record retention. 2. COPY 2 and COPY 3 DEPARTMENT.- The yellow and pink copy shall be retained by the Department for record retention. ~ ~t6 : . a35 IV. PAYMENT AUTHORIZATION When it is necessary to seek approval of an expenditure of the County as a payment authorization, full documentation should be attached to a "Payment Authorization" form. The "Payment Authorization," with documents attached, is to be forwarded directly to the County Auditor's office for review and approval. Upon review by the County Auditor for budgetary compliance, the Payment Authorization is forwarded to the County Judge for approval. The County Judge's approval will place the Payment Authorization request on the Claims Register, at which time the Commissioners' Court will perform the final approval and authorization to pay. A. Several categories of expenditures by the County that qualify for payment authorizations are as follows: 1. Postage 2. Bank fees and credit card usage 3. Utility bills 4. Travel expenditures 5. Towing charges 6. Employee reimbursements 7. Community Service request 8. Indigent health care payments 9. Payroll withholdings for third parties 10. Membership and subscription renewals 11. General Obligation Bonds requirements 12. Continuing professional education requests 13. Replenishing Imprest Funds (Confidential Funds) 14. Juvenile Services-Child placements, support costs 15. Payments to court reporters for transcripts B. Travel expenditures, while qualifying for submission as a Payment Authorization, can also be submitted for payment using three other Brazos County reimbursement forms. Travel expenditures for Mileage only should be submitted using form 201-13C, Mileage Reimbursement Requisition. Form 202-13C, Travel Reimbursement Requisition, is an itemized travel form. It can be used for standard travel reimbursements, and should also be used in conjunction with form 203-13C. Form 203 BC, Travel Advance Request, is the only form used to request a travel advance. C. Anticinated travel expenditures (air fare, hotel bill) should be direct billed to the County. When direct billing has been arranged, the department is required to issue a Purchase Order to the vendor. This will allow the County Auditor's office to expedite payment when the invoice is received. . 17 62 36,__ D. Expenditures ordered by a Court within Brazos County, by formal court order, do not require a "Requisition " or "Purchase Order." A signed copy of the magistrate's order is all that is required to be delivered to the County Auditor for inclusion on the claims register. E. Should an expenditure arise that is not covered above, the department should contact the County Auditor or the Purchasing Department for advice on how to proceed. THE PURCHASE ORDER PROCESS 1. GENERAL INFORMATION A. The purchase order is a contract between the County and a vendor. A purchase order authorizes the vendor to both invoice and ship the materials or supplies specified. It is also the vendor's indication to expect timely payment if goods and/or services are rendered as specified on the purchase order. All purchase orders will be written concisely and clearly to avoid misunderstandings and unnecessary correspondence with vendors. B. Several types of purchase orders exist. The Standard Purchase Order, the Blanket Purchase Order and the Emergency Purchase Order are all available to be used depending on the individual situation and/or purchase being made. II. BASIC PURCHASE ORDERS A. STANDARD PURCHASE ORDER 1. The standard purchase order is used for routine purchases and is processed and prioritized according to delivery requirements. It is the intention of the Purchasing Department to process all requests within a reasonable amount of time. If a request cannot be processed within a reasonable time, the department will be notified. The standard P. O. is the most commonly used Purchase Order. B. THE AUTOMATED PURCHASE ORDER 1. All requisitions will be converted to a three (3) part purchase order after the Purchasing Department approves the request. Approval will be based on request meeting the requirements outlined in this manual. The Purchasing Department will print all purchase orders except as allowed in this manual and distributed as follows: a.. COPY 1 - VENDORIPURCHASING-ARCHIVAL: the white copy shall be forwarded to the vendor and/or a copy retained by the Purchasing Department for record retention. b. COPY 2 - ACCOUNTS PAYABLE: the yellow copy shall be returned to the department. Once goods and/or services are received this copy shall be initialed and dated by the department, forwarded to the County Auditor's Office and ultimately forwarded to the Treasure's Office for payment of goods/services. c. COPY 3 - DEPARTMENT : the pink copy shall be retained by the Department for record retention. ~1- 19 111. THE BLANKET PURCHASE ORDER A. The blanket purchase order (sometimes referred to as an open purchase order) serves as a cost cutting tool. It is used to reduce both processing and reaction time, effort and paperwork. It is a contract with a specific vendor that allows frequent or small purchases by department without going through repetitive bidding procedures, (e.g., annual contracts, office supplies, shop supplies, etc.) Blanket purchase orders are not to be used to circumvent the competitive pricing system employed by the County. Its general purpose is to eliminate numerous requisitions and purchase orders for small or frequent dollar items or services, and to allow for consolidation of the payment process. B. The blanket purchase order will be used in the following situations: 1. When the vendor and price of the desired item(s) is set by competitive bid or contract but the total quantities are not determinable at the initiation of the project 2. At the discretion of the Commissioners Court, when it is determined that to do so is in the best interest of the County C. Blanket purchase orders require a requisition with any purchase and must contain the same information as a standard purchase order: 1. Name, address, telephone number 2. A description of the items that are to be purchased. 3. Total dollars that the County is being asked to commit to the purchase order. This can never exceed budgeted funds available in a specific division. 4. The period of time that the purchase order is to cover. No blanket purchase order will be allowed to extend beyond ninety (90) days and/or the County's fiscal year end. D. A department may only issue one blanket purchase order for a given commodity to a specific type of vendor at any given time, unless deemed necessary by Commissioner's Court. E. All requests for blanket purchase orders are to follow normal requisition procedures. Once received in the Purchasing Department, the Purchasing Agent/Buyer will convert the requisition to an automated purchase order. All blanket purchase orders will be encumbered. F. Upon the approval and issuance of a blanket purchase order, the requesting department assumes several responsibilities. These include maintaining a running total of the purchases, and ensuring that no "overruns" occur. The County is not responsible for any 2 .°s~m 3 overruns of blanket purchase orders. The responsibility for payment will fall to the department head. G. The Purchasing Department will maintain a schedule of all blanket purchase orders but shall not be responsible for accounting for the over expenditure or releasing the encumbrance. IV. THE EMERGENCY PURCHASE ORDER A. The Expedited Purchase Order (often referred to as an emergency purchase order), is intended to be used in (1) a case of public calamity, where the prompt purchase of items is required to provide for the needs of the public or to preserve the property of the County; (2) a case where the item is necessary to preserve or protect the public health or safety of residents of the County; and, (3) a case where the purchase of an item is made necessary due to unforeseen damage to public property. B. If an emergency arises during normal working hours, the affected department head, or his/her authorized representative shall: 1. Notify the Purchasing Department of the situation and possible cost, if known; 2. Within the working day or not exceeding the next working day, the department will submit a requisition to Purchasing noting the reason for the emergency, and 3. A purchase order will be processed for the emergency by the Purchasing Department. C. If an emergency should arise after regular hours, the department head or his/her authorized representative may proceed with the emergency acquisition. On the next business day a payment authorization and invoice will be sent to the Auditor's Office to be reviewed and processed. EMERGENCY PURCHASES EXCEEDING $10,000.00 CANNOT BE MADE WITHOUT PRIOR APPROVAL FROM COMMISSIONERS COURT. V. CHANGE ORDERS A. The Purchasing Department shall be responsible for issuing all change orders. The Purchasing Department may approve change orders for $50.00 or ten (10) percent of the original purchase order amount (whichever is greater). Any change order over the amount of 10% or $500.00 will require the additional approval of the County Judge. 21 THE COMPETITIVE BIDDING PROCESS 1. COMPETITIVE BIDDING A. Purchases of more than $25,000.00 from one vendor must be made through formal, written, sealed, competitive bids. Departments are prohibited from making "split purchases" in an effort to circumvent the formal bid requirement. B. Upon request, Purchasing will place a formal request before Commissioner's Court requesting approval to advertise for bids. C. The user department shall be responsible for establishing specifications and providing a complete written set of the specifications to the Purchasing Department. Specifications may be written on a technical or functional basis. The use of brand names in the specifications shall be used for comparison use only. When developing specifications, it will be the Purchasing Department's responsibility to ensure that a fair competitive environment exists. The Purchasing Agent will finalize the specifications to ensure they are proper for inserting in the bid package. The procedure is jointly undertaken in order to establish a quality level of goods or services being procured. D. Once bid specifications are approved by user department, the advertisement and bid process begins. It is the desire of the Commissioners Court that the County Purchasing Agent be the chief coordinator and operator of the bidding system. The County Purchasing Agent takes no exception to this duty. The Purchasing Agent will be responsible for adherence to any and all legal requirements of competitive bidding. In addition, the Purchasing Agent will develop standard terms and conditions that will be used for all of the County's formal bidding situations. E. In addition to soliciting vendors through newspaper advertisements, it will be the Purchasing Agent and the user department's responsibility to identify possible vendors who would be interested in submitting a bid to Brazos County. The Purchasing Agent will be required to use pre-bid conferences when it is anticipated that they will be useful in answering vendor's questions and to ensure that the same information is disseminated equally. It is of the utmost importance that those who intend to bid understand the County's needs. The Purchasing Agent will document all material changes to bidding conditions or specifications resulting from pre-bid conferences, vendor inquiries, and all other reasons. These material changes shall be issued in an addendum by the Purchasing Agent to all known bidders (i.e., all vendors who have requested a bid packet). F. It will be the Purchasing Agent's responsibility to receive all bid proposals and to document such receipt on the date and time as advertised. It will be the Purchasing Agent's responsibility to coordinate with the user department a time to evaluate the bids. The County will follow the practice of using a total cost bid analysis for evaluating the lowest responsible bid, unless the bid specifications dictate otherwise. Once an ml~ q,;k 22 L~ evaluation has been prepared, the Purchasing Agent and the user department head will make a joint recommendation to the Commissioners Court for consideration and award. G. The Commissioners Court is required to approve the specifications and the award of bids for all purchases and contractual arrangements for goods and/or services that are in excess of $25,000.00. Upon approval by the Commissioners Court, the Purchasing Agent is responsible for the preparation of a formal purchase order. A copy of this purchase order, and the County's acceptance will then be transmitted to the successful vendor. II. REQUEST FOR PROPOSALS A. A process similar to the sealed bid procedure may be used for the procurement of goods and services that are highly specialized and technical in nature - The Request For Proposal (RFP). The user department shall consult with the Purchasing Agent before specifications are written for an RFP. Once proposal specifications are approved by the user department, the advertisement and proposal process begins. It is the desire of the Commissioners Court that the County Purchasing Agent be the chief coordinator and operator for the bidding system. The County Purchasing Agent takes no exception to this duty. The Purchasing Agent will be responsible for adherence to any and all legal requirements of competitive proposals. In addition, the Purchasing Agent will develop standard terms and conditions that will be used for all of the County's formal bidding situations. B. Important distinctions between a normal sealed bid and an RFP include: 1. Normal bids stipulate the award of the contract to the "lowest and most responsible bidder." An RFP permits price and other factors to be considered, allowing a contract award to a vendor other than the one offering the lowest price. 2. Normal bids utilize detailed specifications about the nature of the goods and services required by the County. An RFP may specify only the function to be served by the goods and services, leaving the vendors to determine how to best achieve the desired function. 3. State law requires that the RFP specify the relative importance of price and other evaluation factors. The user department and/or the Purchasing Agent may conduct discussions with vendors after the submission proposal. The final terms of the contract may be negotiated during these discussions and prior to the award of the contract by the Commissioners Court. III. ELECTRONIC BIDS A. The County Purchasing Agent, before receiving electronic bids or proposals, shall adopt procedures in conformance with 262.011 (0) Local Government Code to ensure the identification, security and confidentiality of electronic bids or proposals. i 23 1,q 0, IV. REVERSE AUCTION A. The County Purchasing Agent, before participating in reverse auction, shall adopt procedures in conformance with Section 2155.062 (d), Government Code to ensure compliance with commission procedures governing a reverse auction purchase. V. COOPERATIVE PURCHASING PROGRAM A. Brazos County may participate in a cooperative purchasing program with another local government or a local cooperative organization in conformance to Section 271.102 Local Government Code. A local government that is participating in a cooperative purchasing program may sign an agreement with another participating local government or a local cooperative organization stating that the signing local government will: a. The Purchasing Department will act under the direction of Commissioners Court in all matters relating to this program. b. Payments to be made must be in compliance with the agreement between local government or a local cooperative organization. c. The Purchasing Department will be responsible for a vendor's compliance with provisions relating to the quality of items and terms of delivery, as provided in the cooperative agreement. d. The Purchasing Department will make certain that all goods purchased by this agreement will satisfy any state law requiring Brazos County to seek competitive bids for the purchase of the goods or services. VI. PROFESSIONAL SERVICES A. GENERAL These services are characterized by their reliance on mental or intellectual skills, often accompanied by formal certification or licensing by a state or other regulatory agency. Examples of professional services include accounting, architecture, economics, engineering, financial advisory services, law, laboratory services and consulting, medicine, surveying, etc. 2. State law exempts the procurement of these services from competitive bidding requirements (Professional Service Acts, VCTS). Professional service consultants should be selected on the basis of demonstrated competence and qualifications. User departments should negotiate fees on the basis of what is fair and reasonable for similar services, rather than on a low bid basis. . , B. INFORMAL SELECTION 1. The following process should be followed in the selection of the consultant. First, initial selection of the consultant based on demonstrated competence and qualifications. Price should not be considered at this time. Second, the department head (with the assistance of the Purchasing Agent) should then proceed to negotiate an acceptable fee structure with the selected consultant. If the fee negotiations are not acceptable, then the fee negotiation process should be undertaken with the second qualified consultant. Negotiations should continue with prospective consultants until an agreement can be reached. Third, the negotiated contract and fee structure document should be turned over to County legal council for review. Finally, the document, once approved by said Council, should be placed on the agenda of the Commissioners Court for approval, acceptance and signing. 2. For professional services procurement involving anticipated fees of less than $10,000.00, the process as outlined above may be followed by the department head with assistance and guidance from the Purchasing Agent. For procurement of professional services involving an anticipated fee exceeding $10,000.00, the Commissioners Court requires that a formal RFP procedure be followed. The department head would be required to coordinate the selection process with the Purchasing Agent. Deviations from the RFP requirement must be based on unusual circumstances and must be approved by the Purchasing Agent, County Auditor, County legal council and Commissioners Court. 3. To comply with the State's Professional Services Procurement Act, price may not be considered in the initial selection of a consultant. It is important for user departments to keep this in mind when procuring professional services. 4. In the event that fees for service exceed the $10,000.00 plateau, the department head is required to meet with the County Judge and the Purchasing Agent immediately to address how best to rectify the situation. C. FORMAL SELECTION PROCEDURE 1. When a user department wishes to initiate an RFP to procure professional services, it should submit the following information to the Purchasing Agent: a. A description of the project or the activity to be undertaken b. An estimate of the cost of construction, including an estimate of the cost for the consultant, for projects involving construction c. A statement of the available funds for the program in the current operating budget d. A description of the minimum and desirable qualifications for the consultant 4,)2~ c2 44 . SPECIAL PROJECT CONTRACTS Expenditures from contracts approved by Commissioner's Court for special, one-time projects, will be monitored by the Purchasing Department to insure that the total amount expended does not exceed the dollar approved. Purchasing Department will also monitor these contracts for end of year budgeting process. Only contracts specifically designated by Commissioners Court will be monitored. I. PROCEDURE A. Department requesting Court approval of a special project contract will prepare all necessary documentation to place on Court Agenda, including a Requisition for the total amount of the contract. B. If Court approval is granted, Requisition will be signed by County Judge and forwarded to the Purchasing Department, along with copy of said contract, for conversion to a Purchase Order. C. Once a Purchase Order is issued by the Purchasing Department, User Department will receive a copy of the Purchase Order, with the Receiving (yellow) copy being retained by Purchasing. D. As work proceeds on approved contract, invoices received by the Auditor's Office will be transmitted to User Department for verification that a partial payment is warranted. User Department will then forward invoice bearing Departmental approval signature to Purchasing. The Purchasing Department will submit invoice, along with proper copy of Purchase Order to the Auditor's Office to request that the partial payment be made to the Vendor. E. Accurate records will be maintained by the Purchasing Department as to the available balance remaining on the Purchase Order. The Purchasing Department will keep the User Department apprised of available balance as funds are expended, to insure the balance is not exceeded. F. The Purchasing Department will assist the County Judge during budgeting process, determining the remaining balance of contracts for carry over. 01 EXEMPTIONS FROM THE COMPETITIVE BID PROCESS 1. EXEMPTIONS Local Government Code, Section 262.024 allows the purchase of any of the following items as exempt from the requirements established by this policy if the Commissioners Court by order grants the exemption: A. An item to be purchased in a case of public calamity, if prompt purchase is necessary to relieve the necessity of the citizens or to preserve the property of the County. This exemption may only be requested by a member of the Commissioners Court, the County Sheriff, and the County Road Engineer: B. An item necessary to preserve or protect the public health or safety of the residents of the County C. An item necessary because of unforeseen damage to public property D. A personal or professional service E. Any work performed and paid for by the day, as the work progresses F. Any land or right-of-ways G. An item that can be obtained from only one source, to include: 1. items for which competition is precluded because of the existence of patents, copyrights, secret processes, or natural monopolies; 2. films, manuscripts, books 3. electric power, gas, water and other utility services, and 4. captive replacement parts or components for equipment H. An item of food 1. Personal property sold: 1. at an auction with the use of a state licensed auctioneer 2. at a going out of business sale held in compliance with Subchapter F, Chapter 17 of the Business & Commerce Code 28 3. by a political subdivision of the state or the federal government J. Any work performed under a contract for community and economic development made by the County under LGC §381.004. K. Renewal or extension of a lease, or of equipment maintenance agreements are exempt from the requirements as set out in this policy if the Commissioners Court so orders and grants the exemption, and if. 1. The lease and/or maintenance agreement has gone through the competitive bidding procedure within the preceding year 2. The renewal and/or extension does not exceed one year 3. The renewal and/or extension is the first such renewal and/or extension II. EXEMPTION PROCEDURE A. If an item or vendor is granted an exemption under these provision by the Commissioner's Court, then an exemption form will be prepared by the Purchasing Agent. The form will be maintained by the Purchasing Agent. One copy of the form will be placed in the vendor's accounts payable file (when a vendor is granted exemption). One copy will be attached to the requisition and purchase order (when exemption is granted for a single purchase). B. If an item is to be deemed to be available from a sole source vendor, the ordering department will need to certify, in writing, the characteristics an d reasons that will suffice the sole source criteria to the Purchasing Department. The Purchasing Department then does their own research to verify this conclusion. (A letter from the vendor is often requested.) If the requesting department and Purchasing Department both agree that this vendor is a sole source provider, the purchase order will be approved and sent to Commissioners Court for final approval. :c....29 ~7~ INSPECTING, TESTING AND RECEIVING Departments should contact the vendor, or Purchasing Department, if materials and/or services are not received or performed by the due date. Always keep the Purchasing Department apprised of the situation. 1. Since there is no central receiving point, each department is responsible for receiving commodities and services. Any shortages, late deliveries, damaged merchandise or other problems relating to the vendors' performance should be reported to the Purchasing Department as soon as possible. Initially, affected Departments should call the Purchasing Department, and follow up with a written explanation of the situation. A. When receiving ordered goods, the user will conduct an initial inspection of the merchandise to determine its condition. A comparison is made of the goods received against the product specifications. Once a determination has been made that article(s) received meet specifications and are not damaged, a receiving report should be initiated and sent to the Auditor. B. If there is damage, notify the vendor at once. C. All boxes and packing materials should be kept in the event of visible or concealed damaged freight shipments. D. Damaged freight should always be reported to the freight line, within the same day after the delivery, if possible. E. Should the vendor request items to be returned, the department should first insure that a claim has been properly filed, and that the vendor has provided authorization to return merchandise. II. INCOMPLETE/PARTIAL ORDERS A. In the event an order is incomplete, the department should make the inquiry for scheduled shipment of the remaining order or contact the Purchasing Department to make that inquiry. B. To authorize payment for a partial order, an invoice, indicating the purchase order number, date, vendor, and items received, should be forwarded to the County Auditor, accompanied by a photocopy of the purchase orders' yellow receiving copy marked clearly "PARTIAL DELIVERY." 16 INVOICES I. A. The invoice is an itemized statement of merchandise shipped or delivered to an end user and is a guide for the County in settling financial obligations incurred. Invoices are based upon Purchase Orders and therefore should contain the same information. Any difference between the invoice and the Receiving Report copy of the Purchase Order should be resolved with the vendor immediately, and always before forwarding for payment. B. All invoices should be mailed by the vendor directly to the Auditor's Office at the address listed below: Brazos County Auditor's Office ATTN: Accounts Payable P. O. Box 914 Bryan, Texas 77805 C. The vendor invoice is not considered officially received by the County until received by the County until received by the County Auditor's Department, date stamped, and entered on the claims register. D. The invoice should contain the following information: 1. THE PURCHASE ORDER NUMBER 2. an itemized list of merchandise received 3. the prices, terms, quantities, and other pertinent information from the Purchase Order E. The Auditor's Office shall forward original invoice to the ordering department. The ordering department shall submit the yellow copy of the purchase order, initialed and dated, with an original invoice to the County Auditor's office for payment. This information, after review, shall be forwarded to the County Treasurer for payment as expeditiously as possible, following the requirements of the Government Code, Title 10, Subchapter B, Section 2251.021. ~,n 31 ~J(J PROPERTY SALVAGE AND DISPOSAL 1. SALVAGE A. Equipment no longer needed by a department shall be reported to the Purchasing Department by completing a Property Acquisition, Transfer and Disposition form. If it is found this item is of no further use by any County Department, Purchasing will dispose of in accordance with Local Government Code 263, Subchapter D - DISPOSITION OF SALVAGE OR SURPLUS PROPERTY. II. DISPOSAL A. Upon approval by Commissioners' Court, surplus or salvage material and equipment may be disposed of in of the following methods: 1. public auction 2. trade-in on new equipment 3. sealed competitive bids 4. ordered destroyed or distributed as unsalvageable B. Upon written notification by the department that an item is in need of disposal, the Purchasing Department will assume ownership until final disposal. 4V17- 2,51 1* T FIXED ASSETS AND ANNUAL INVENTORY 1. FIXED ASSETS A. October 1, 2001, Commissioners Court of Brazos County approved the accounting policy and procedures for fixed assets. Please refer to that policy as necessary for more detailed information. B. Requisitions for fixed assets over $5000.00 must be approved by Commissioners Court in open session. C. Upon receipt and payment of these purchases, the items will be placed on the departments fixed asset listing and tagged with a Brazos County Property Identification Number. IL ANNUALINVENTORY A. The Purchasing Agent shall provide a copy of the inventory of all Brazos County property to his/her Appointment Board and the County Auditor annually. B. At the conclusion of the Annual Inventory the Inventory Manager shall prepare the following: 1. A report to the responsible official that the inventory was completed and all property (could) (could not) be located. Missing items will be identified. 2. A letter to the County Auditor listing the item not located (not necessary if all property is found). 3. A corrected listing of all County property that belongs to the applicable department on the date of the inventory. One copy of this list will be provided to the Department Head and one copy will be filed with the Purchasing Department. 13 STATUTORY AUTHORITY Local Government Code § 113.061. Claims Register; Classes of Claims (a) The county treasurer shall maintain a record in which the treasurer shall register each claim against the county. The treasurer shall register the claims in the order in which they are presented. If more than one claim is presented at the same time, the treasurer shall register them in the order of their date. (b) The county treasurer may not pay a claim, or any part of it, until the claim has been registered. An officer may not receive a claim, or any part of it, in payment of any indebtedness owed to the county until the claim has been registered. (c) The county treasurer shall register claims in one of the following classes: (1) scrip issued tdVay or feed jurors; (2) scrip issued under a road law or for work done on roads and bridges; or (3) general county indebtedness, including debts incurred for feeding and guarding prisoners and for claims by paupers. (d) The treasurer shall pay each claim in each class in the order in which it is registered. (e) The treasurer's register entry for each claim must state: (1) the class of the claim; (2) the name of the payee; (3) the amount of the claim; (4) the date of the claim; (5) the date of the registration; (6) the claim registration number, (7) the authority under which the claim was issued; and (8) the service for which the claim was issued. (f) The treasurer shall indicate the claim registration number and the date of the registration on the face of the claim. The treasurer shall write the word "Registered" on the claim and shall officially sign the claim or place the treasurer's approved facsimile signature on the claim. ANNOTATIONS - NOTES OF DECISIONS Registration of claims Where the county commissioners' court allowed a claim against a county for services under a contract for superintending construction of a courthouse, it was not necessary that the claim be registered by the treasurer, as the statutes did not contemplate that claims against the county should be registered by the treasurer, unless they were such, upon their face, as he was authorized to pay off. Callaghan v. Salliway (Civ.App. 1893) 5 Tex.Civ.App. 239, 23 S.W. 837. § 113.061. Claims Register; Classes of Claims (con't) ANNOTATIONS - NOTES OF DECISIONS The county treasurer was required to register all claims against the county and pay off each class in the order registered. Shock v. Colorado County (Civ.App. 1908) 52 Tex.Civ.App. 473, 115 S.W. 61. The county commissioners' court is without power to bind county by contract or otherwise to pay claims in cash, without providing some means for such payments, thereby giving them preference in payment over other registered indebtedness of county. Howard v. Henderson County (Civ.App. 1938) 116 S.W.2d 479, error refused. The registration of valid claims against the county was equivalent to a setting aside of an amount of money in general fund sufficient to satisfy registered warrants, and, until that was done, the commissioners' court did not have authority to order funds transferred from the general fund to officers' salary fund. Clarke & Courts v. Crawford (Civ.App. 1942) 161 S.W.2d 148. The county treasurer is a custodian of funds and has no authority to approve or disapprove claims presented for payment. Op.Atty.Gen.1973, No. H-171. Order of payment The treasurer was required to pay off claims in each class in order in which they were registered, and the holder of a registered claim could insist that claim be paid as provided notwithstanding provisions of § 113.004 which gave commissioners' court power to create other classes of funds. Clarke & Courts v. San Jacinto County (Civ.App. 1898) 18 Tex.Civ.App. 204, 45 S.W. 315, error dismissed. § 113.064. Approval of Claims by County Auditor (a) In a county that has the office of county auditor, each claim, bill, and account against the county must be filed in sufficient time for the auditor to examine and approve it before the meeting of the commissioners' court. A claim, bill, or account may not be allowed or paid until it has been examined and approved by the auditor. (b) The auditor shall stamp each approved claim, bill, or account. If the auditor considers it necessary, the auditor may require that a claim, bill, or account be verified by an affidavit indicating its correctness. (c) The auditor may administer oaths for the purposes of this section. a s tip § 113.064. Approval of Claims by County Auditor (con't) ANNOTATIONS -NOTES OF DECISIONS In general The examination and approval of the auditor is a condition precedent to the exercise of jurisdiction over a claim by the commissioners' court. Yantis v. Montague County (Civ.App. 1908) 50 Tex.Civ.App. 403, 110 S.W. 161. Commissioners' court is authorized to expend county funds, but may not do so without approval of auditor whose approval may not be arbitrarily withheld; likewise, auditor may not order expenditure of county funds without approval of commissioners court. Smith v. McCoy (Civ.App. 1976) 533 S.W.2d 457, dismissed. The provisions of the statutes are mandatory and required claims, bills or accounts against a county to be examined and approved by county auditor for payment, that all wan-ants on the county treasury, except those for jury service, be countersigned by county auditor, and moneys paid out on claims, bills and accounts which had not been approved by county auditor and moneys paid out on warrants which had not been countersigned by county auditor could be recovered. Op.Atty.Gen.1956, No. 5-149. Article 59.06 is an exception to the requirement of section 113.041 of the Local Government Code that disbursements be made by the county treasurer, the requirement of section 113.042 of the same code that all payment instruments be endorsed by the county treasurer, section 113.043's requirement that all checks and warrants be countersigned by the county auditor, section 113.064s requirement that all payments be approved by the county auditor, and section 140.003's requirement that "the county disburse the funds on behalf of the kpecialized local entity." Op.Atty.Gen.1993, No. DM-247. Discretionary act Approval of claims against county or payment thereof is a discretionary act of county auditor rather than a more ministerial act. Smith v. McCoy (Civ.App. 1976) 533 S.W.2d 457, dismissed Prerequisites for approval The county auditor is not authorized to require as a prerequisite to his approval of a claim or items of expense that a requisition be signed and approved by him at the time the purchase is made or the expense incurred. Op.Atty.Gen.1971, No. M-955. Delegation of duties County auditor is not authorized to delegate to another legal entity or office his/her responsibility to examine and approve, if appropriate, a claim; auditor must make independent examination of each claim and approve it before commissioners court may consider it. Crider v. Cox (App. 12 Dist. 1997) 960 S.W.2d 703, rehearing overruled, writ denied. _JPA § 113.064. Approval of Claims by County Auditor (con't) ANNOTATIONS -NOTES OF DECISIONS Unapproved claims Where auditor refused to approve claim for purchase price of culverts sold to county, commissioners' court had no jurisdiction to allow claim. Wyatt Metal & Boiler Works v. Lipscomb (Civ.App. 1935) 87 S.W.2d 331, error refused. Since county auditor had not approved claim of sheriffs deputies for compensation for time they had been suspended from duty, the county commissioners courts order directing payment was void. Smith v. McCoy (Civ.App. 1976) 533 S.W.2d 457, dismissed. A county auditor has the authority to reject claims authorized by the commissioners' court if they have not been contracted as provided by law, and commissioners' court is without authority to allow such claim over the disapproval of the county auditor, and the county clerk does not have authority to issue and deliver a warrant which has not been approved by the county auditor. OpAtty.Gen.1945, No. 0-6784. § 113.065. Requirement for Approval of Claim The county auditor may not audit or approve a claim unless the claim was incurred as provided by law. ANNOTATIONS -NOTES OF Duty of auditor County auditor has responsibility, before approving a claim against county, to determine whether it strictly complies with law governing county finances. Smith v. McCoy (CivApp. 1976) 533 S.W.2d 457, dismissed. Bid contracts The county auditor has no legal authority to approve a claim submitted to him on a bid for machinery accepted by the commissioners' court which was not the lowest bid and which bid exceeds the maximum amount set out in the notice to bidders. Op.Atty.Gen.1939, No. 0-770. With exception of emergency supplies, it is mandatory upon the commissioners' court to purchase supplies of every kind for use of county or its officers on competitive bids, and if such supplies were not authorized on competitive bids, county auditor is authorized to disapprove such bills or claims. Op.Atty.Gen.1945, No. 0-6369. O,,,a a I § 113.065. Requirement for Approval of Claim (con't) ANNOTATIONS -NOTES OF DECISIONS Commissioners court Commissioners' court does not have authority to pass order authorizing county auditor to pay county and precinct officials, regular county employees, part-time county employees, and utility bills when due without necessity of approval of such bills by commissioners' court at regular meeting. Op.Atty.Gen.1943, No. 0-5049. Commissioners' court is sole agency having discretionary power to determine existence of such facts as would constitute an emergency justifying a budget amendment, but, if said court acts fraudulently or arbitrarily declares existence of an emergency when none exists, county auditor should refuse •to.audit or approve claim filed under attempted amendment and refuse to countersign warrants on county treasurer against funds unlawfully set aside for that purpose. OpAtty.Gen.1944, No. 0-6220. A county auditor has the authority to reject claims authorized by the commissioners' court if they have not been contracted as provided by law, and commissioners' court is without authority to allow such claim over the disapproval of the county auditor, and the county clerk does not have authority to issue and deliver a wan-ant which has not been approved by the county auditor. OpAtty.Gen.1945, No. 0-6784. § 113.901. Requirements for Approval of Accounts and Requisitions (a) Except as provided by Subsection (c), a county auditor may not audit or approve an account for the purchase of supplies or materials for the use of the county or of a county officer unless a requisition, signed by the officer ordering the supplies or materials and approved by the county judge, is attached to the account. The requisition requirement is in addition to any other requirements of law. (b) The requisition must be made, signed, and approved in triplicate. The original must be delivered to the person from whom the purchase is to be made before the purchase is made. The duplicate copy must be filed with the county auditor. The triplicate copy must remain with the officer requesting the purchase. (c) The commissioners' court of a county that has the office of county auditor may, by a written order, waive the requirement of the county judge's approval of requisitions. The order must be recorded in the minutes of the commissioners' court. If the approval of the county judge is waived, all claims must be approved by the commissioners' court in open court. § 115.021. Audit and Settlement of Accounts The commissioners' court of a county shall audit and settle all accounts against the county and shall direct the payment of those accounts. 01, W, ~ _ § 115.022. Examination of Account and Reports; Settlement (a) At each regular term, the commissioners' court shall examine all accounts and reports that relate to the county finance and shall compare the accounts and reports with the accompanying vouchers. The court shall see that any errors in the accounts and reports are corrected. (b) The court shall see that all orders made by the court that relate to the accounts and reports are entered in the minutes of the court and that the orders are noted on the accounts and reports. Chapter 262 - Purchasing Act (should be read in its entirety) § 262.001. Purchasing Agents (d) The county purchasing agent shall purchase all supplies, materials, and equipment required or used, and contract for all repairs to property used, by the county or a subdivision, officer, or employee of the county, except purchases and contracts required by law to be made on competitive bid. A person other than the county purchasing agent may not make the purchase of the supplies, materials, or equipment or make the contract for repairs. (e) The county purchasing agent shall supervise all purchases made on competitive bid and shall see that all purchased supplies, materials, and equipment are delivered to the proper county officer or department in accordance with the purchase contract. (f) A purchase made by the county purchasing agent shall be paid for by a warrant drawn by the county auditor on funds in the county treasury in the manner provided by law. The county auditor may not draw and the county treasurer may not honor a warrant for a purchase unless the purchase is made by the county purchasing agent or on competitive bid as provided by law. (1) The county purchasing agent may have assistants to aid in the performance of the agent's duties. A person who is authorized by the county purchasing agent to use a county purchasing card while making a county purchase is considered an assistant of the county purchasing agent to the extent the person complies with the rules and procedures prescribed for the use of the county purchasing card as adopted by the county purchasing agent under Subsection (o). The county purchasing agent and assistants may have any help, equipment, supplies, and traveling expenses that are approved and considered advisable by the board that appointed the agent. (n) This section applies to all purchases of supplies, materials, and equipment for the use of the county and its officers, including purchases made by officers paid our of fees of office or otherwise, regardless of whether the purchase contract is made by the commissioners' court or any other officer authorized to bind the county by contract. An officer making purchase out of fees of office in violation of this section may not deduct the amount of the purchase from the amount of any fees of office due to county. I (o) The county purchasing agent shall adopt the rules and procedures necessary to implement the agent's duties under this section subject to approval by the commissioners' court. Notwithstanding Subsection (f) or other law, rules and procedures adopted under this subsection may include rules and procedures for persons to use county purchasing cards to pay for county purchases under the direction and supervision of the county purchasing agent. § 262.011. Purchasing Agents (con't) ANNOTATIONS -NOTES OF DECISIONS In general 1 The commissioners court is authorized to employ persons necessary to conduct county business without express statutory authority provided that such employees are subject to the commissioners' court's control and supervision and there is no delegation of the commissioners' court's sovereign authority. In the absence of a section 262.011 county purchasing agent, the commissioners court may hire an employee to assist the commissioners' court and other departments with their purchasing responsibilities, but it may not delegate to the employee authority to make purchases for the county or enter into contracts binding the county. Op.Atty.Gen.2000, No. JC-0264. § 262.0115. Purchasing Agents in Counties With Population of More Than 100,000 (a) In a county with a population of more than 100,000, the commissioners, court may employ a person to act as county purchasing agent. However, this section does not apply to a county that has appointed a purchasing agent under Section 262.011 and that has not abolished the position as authorized by law. (b) A purchasing agent employed under this section serves at the pleasure of the commissioners' court. (c) The commissioners' court may employ other persons necessary to assist the purchasing agent in performing the agent's functions. (d) Under the supervision of the commissioners court, the purchasing agent shall carry out the functions prescribed by law for a purchasing agent under Section 262.011 and for the county auditor in regard to county purchases and contracts and shall administer the procedures prescribed by law for notice and public bidding for county purchases and contracts. (e) A county that has established the position of county purchasing agent under this section may abolish the position at any time. On the abolition of the position, the county auditor shall assume the functions previously performed by the purchasing agent. ANNOTATIONS -NOTES OF DECISIONS 1. Duties With respect to county purchasing, the county purchasing agent's duties are not limited to the duties of the county auditor. The purchasing agent is required to cant' out those duties in addition to the usual duties of the purchasing agent. The commissioners' court may also prescribe the duties of the purchasing agent within the parameters of the legislative intent. Op.Atty.Gen. 1998, LO 98-115. ■ § 262.023. Competitive Requirements for Certain Purchases (a) Before a county may purchase one or more items under a contract that will require an expenditure exceeding $25,000, the commissioners court of the county must comply with the competitive bidding or competitive proposal procedures prescribed by this subchapter or use the reverse auction procedure, as defined by Section 2155.062(d), Government Code, for purchasing. All competitive bids or competitive proposals must be sealed. (b) The requirements established by Subsection (a) apply only to contracts for which payment will be made from current funds or bond funds or through time warrants. However, contracts for which payments will be made through certificates of obligation are governed by The Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271). [FNI1 Contracts for which payment will be made through anticipation notes are subject to the competitive bidding provisions of The Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271) in the same manner as certificates of obligation. (c) In applying the'requirements established by Subsection (a), all separate, sequential, or component purchases of items ordered or purchased, with the intent of avoiding the requirements of this subchapter, from the same supplier by the same county officer, department, or institution are treated as if they are part of a single purchase and of a single contract. In applying this provision to the purchase of office supplies, separate purchases of supplies by an individual department are not considered to be part of a single purchase and single contract by the county if a specific intent to avoid the requirements of this subchapter is not present. ANNOTATIONS -NOTES OF DECISIONS In general Whether good business management by county commissioners of county's affairs requires Advertisement for bids for purchase by county of road machinery, under existing laws, is a matter within discretion of commissioners' court, and whether they should be required by law to call for bids is for legislature. Patten v. Concho County (Civ.App. 1946) 196 S.W.2d 833. In counties with county purchasing agents, the purchasing agent must make all purchases that are not subject to the competitive bid requirements of this section, and the purchasing agent is subject to the $5,000 limitation imposed by this section in making purchases of maintenance and repair items unless such purchases fall within the exceptions set forth in section 262.024 of the Code. Op.Atty.Gen.1988, No. JM-974. The power to set minimum bid specifications for equipment or vehicles to be purchased by competitive bidding resides in the commissioners court. The court may wish to consult with the officer who will ultimately use such equipment, but is not obliged to agree with the officer's views in this regard. Op.Atty.Gen.2000, No. JC-0214. § 262.023. Competitive Requirements for Certain Purchases (con't) ANNOTATIONS - NOTES OF DECISIONS Contracts subject to requirements generally County officer, department or institution could purchase its own supplies subject to the limitations imposed by Vemon's Ann.Civ.St. art. 2368x.5, § 3 (repealed; now, this section) and subject to commissioners court approval; however, before county could purchase one or more items under a contract that would require expenditure exceeding $5,000, commissioners court had to comply with competitive bidding requirements of Vemon's Ann.Civ.St. art. 2368a.5 (repealed; now, this section), which prohibited intentional circumvention of $5,000 limitation by separate, sequential and/or component purchases by same county officers, departments or institutions. Op.Atty.Gen. 1987, No. JM-725. A sheriff may expend commissary proceeds under section 351.0415 of the Local Government Code without complying with the County Purchasing Act, chapter 262, subchapter C of the Local Government Code. To the extent Op.Atty.Gen.1982, No. MW-439 concludes that an expenditure from commissary proceeds must be competitively bid by the county commissioners court, it has been superseded by the enactment of section 351.0415. Op.Atty.Gen.1999, No. JC-0122. Spot purchases County Purchasing Act does not preclude county from making isolated spot purchase of supplies or materials when contractor obligated to meet county's requirements is unable to furnish the same, but spot purchases may not be used to avoid the competitive bidding process. Op.Atty.Gen. 1990, No. JM-1254. Validity of contracts The competitive bidding statutes also apply to purchases made with profits from the commissary operation in the county jail and to purchases of the indicated law books and law book services. Op.Atty.Gen.1982, No. MW-439. Former Civ.St. art. 2368x.5 (now, this subchapter) is applicable to the sheriff in making purchases for the operation of the county jail. Op.Atty.Gen.1987, No. JM-783. Disclosure Under the County Purchasing Act and the Professional Services Procurement Act, a county is authorized to require prospective contractors to submit disclosure statements regarding their business relationships with county officers and employees. Op.Atty.Gen.2002, No. JC-0521. Chapter 263 - Disposition of Salvage or Surplus Property (should be read in its entirety) n i*u ' a § 271.905. Consideration of Location of Bidder's Principal Place of Business (a) In this section, "local government" means a municipality with a population of 200,000 or less, a county with a population of 400,000 or less, or another political subdivision authorized under this title to purchase real property or personal property that is not affixed to real property. The term does not include a school district. (b) In purchasing under this title any real property or personal property that is not affixed to real property, if a local government receives one or more bids from a bidder whose principal place of business is in the local government and whose bid is within three percent of the lowest bid price received by the local government from a bidder who is not a resident of the local government, the local government may enter into a contract with: (1) the lowest bidder, or (2) the bidder whose principal place of business is in the local government if the governing body of the local government determines, in writing, that the local bidder offers the local government the best combination of contract price and additional economic development opportunities for the local government created by the contract award, including the employment of residents of the local goverment and increased tax revenues to the local goverment. (c) This section does not prohibit a local government from rejecting all bids. Government Code § 2251.021. Time for Payment by Governmental Entity (a) Except as provided by Subsection (b), a payment by a governmental entity under a contract executed on or after September 1, 1987, is overdue on the 31st day after the later of: (1) the date the governmental entity receives the goods under the contract; (2) the date the performance of the service under the contract is completed; or (3) the date the governmental entity receives an invoice for the goods or service. (b) A payment under a contract executed on or after September 1, 1993, owed by a political subdivision whose governing body meets only once a month or less frequently is overdue on the 46th day after the later event described by Subsections (a)(1) through (3). (c) For a contract executed on or after July 1, 1986, and before September 1, 1987, a payment by a governmental entity under that contract is overdue on the 46th day after the later event described by Subsections (a)(1) through (3). (d) For purposes of this section, the renewal, amendment, or extension of a contract executed on or before September 1, 1993, is considered to be the execution of a new contract. _ _ BRAZOS COUNTY COMMISSIONERS COURT ACTION FORM DEPARTMENT Road and Bridge NUMBER 560010 DATE OF COURT MEETING: April 8 2003 ITEM: Permission to enter Martha Albertson's property located off Edge School House Road for the purpose of clearing area for construction of a temporary fence to contain livestock during new road right of way clearing. Site is located in Precinct 2 SOURCE OF FUNDS: N/A NOTES/EXCEPTIONS: ACTION REQUESTED OR ALTERNATIVES: SUBMITTED BY: APPROVED BY: Ric rd F. Vance, P.E. Commissioner Duane Peters County Engineer Precinct 2 0003-030 This Request is Approved / Denied ❑ by Commissioners Court Date: 7~f-~ 25 Randy Sipis, County Judge , l~ BRAZOS COUNTY PRIVATE PROPERTY ACCESS PERMISSION FORM Randy Sims County Judge Tony Jones Commissioner Pct 1 Duane Peters Commissioner Pct 2 Kenny Mallard Commissioner Pct 3 Carey Cauley Commissioner Pct 4 Date March 31. 2003 I. LAND OWNER AND ADDRESS Mnrth Alhprtqnn 8665 Edge School House Road II. LOCATION OF WORK Edge Srh 1 House RoAd III. DESCRIPTION OF WORK TO BE DONE Permission to enter Property for the purpose of clearing a line for a temporary fence to be constructed to contain cattle during the clearing of the new right of way line Rrrch and frPPC wi 11 h pushed t agreed areA F burning and d!q ncal. IV. MAI /I~l~~ence will_Ecremoved after clearing has been completed. IF YES, ESTIMATE FREQUENCY OF MAINTENANCE (Owner will be notified prior to maintenance) Richard F. Vance, P.E. I Right o ay Agent County Engineer Owner's Signature: M k11 I Q DATE 3 The State of Texas, County of BRAZOS We, the undersigned, as County Commissioners within and for Brazos County, and the Honorable Randy Sims, County Judge of -Brazos County, constituting the entire Commissioners' Court of Brazos County, during a regular meeting of said Court have examined the foregoing report and have caused an order to be entered upon the Minutes of the Commissioners' Court of Brazos County approving said Report as presented and submitted as true and correct by Kay Hamilton, Treasurer of Brazos County, as provided for in the Revised Statutes of the State of Texas. (Texas Local Government Code, 114.026) Witness my hand this gy day of A~Ia A.D. 2003 are' McQueen County Clerk, County of BRAZOS, State of Texas Examined and approved in open Commissioners' Court this D" day of /Jl~2 / l 2003 Randy Sims, Tony Jones, Co6ndigsioner Precinct #1 Duane Peters, Commissioner Precinct #2 Kenny Mallard, missioner Pr ii ct #3 Carey Cauley, Commissioner Precinct #4 Treasurer's Reports for the Months of Corrected January 2003 and February 2003. C P W M t D Il f O M O Yn f T N m I ~ N O INI I N O 0 b m 0 ~ W M ~ O f ~ 4 A I!f W W m O ry f0 ~ pp O ~ J .b i N N N P N M ~ nO F N b ~ p m .b r w P b ~ If p f Mp ~ m W N N Vp 1' i b 1 V b ~ O+ D• p P W . N : 1" 1 m O Op O p ~ H mW N P b P N O 1~ N N m t O ! V m V ' 1 N I N m N b 4 p O f ~ h P N M T P ~ M q ^ b N W O N m P ~ ' P \ p ' I J V N ~ N P M N N W P W N . 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