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The Dallas City Code
CITY OF DALLAS, TEXAS CODE OF ORDINANCES
CHARTER of THE CITY OF DALLAS, TEXAS
VOLUME I
VOLUME II
VOLUME III
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SEC. 6.   CHANGE ORDERS.
   In the event that it becomes necessary to make changes in the plans or specifications after performance of the contract has been commenced, or it becomes necessary to decrease or increase the quantity of work to be performed, or materials, equipment or supplies to be furnished, the city council is authorized to approve change orders effecting such changes, but the total contract price shall not be increased thereby unless due provision has been made to provide for the payment of such added cost by appropriating available funds for that purpose. This authority may be delegated to the city manager or the city manager’s designee when authorized by state law. (Amend. of 6-12-73, Prop. No. 39; Amend. of 8-12-89, Prop. No. 14)
SEC. 7.   PERFORMANCE AND PAYMENT BONDS.
   Any prime contractor entering into a public contract with the city for the construction, alteration, or repair of any public building or structure, or for the prosecution or completion of any public work, shall be required, before commencing such work, to execute a performance bond in a good and sufficient amount, as required by law, conditioned upon the faithful performance of the work in accordance with the plans, specifications, and contract documents. The bond must be solely for the protection of the city. The contractor shall also be required, before commencing such work, to execute a payment bond in a good and sufficient amount, as required by law, solely for the protection of all claimants supplying labor and material in the prosecution of the work provided for in the contract, for the use of each claimant. The bonds must be made by a bonding company authorized to do business in the State of Texas, and legal venue for enforcement of the bonds lies exclusively in Dallas County, Texas. A resident of Dallas County must be appointed as agent for delivery of notice and service of process by the surety. (Amend. of 6-12-73, Prop. No. 40; Amend. of 5-1-93, Prop. No. 4)
SEC. 8.   OTHER BONDS AND SECURITY.
   (a)   In addition to the two bonds mentioned in Section 7 of this chapter, the city may require that the contractor show proof of coverage by public liability and property damage insurance in an amount to be set by the city and by the applicable workmen’s compensation insurance as set forth in the Workmen’s Compensation Law of the State of Texas. The contractor may be required to post any other bond or proof of insurance that the plans and specifications may require.
   (b)   Where the contract by the city is for the purchase of materials, supplies, machinery, equipment, or other paraphernalia not involved in the construction of public works, or the contract is for the lease, rental, franchise, or other use of personal or real property of the city, the city may require such bonds and other forms of security as it deems advisable. (Amend. of 5-1-93, Prop. No. 4)
SEC. 9.   BID BOND.
   Each bid submitted pursuant to a request for bids must be accompanied by a cashier’s check, certified check, or unconditional letter of credit or a bid bond in the amount set by the city in the request for bids. The bid bond, if required, must be made by a bonding company authorized to do business in the State of Texas and must designate a resident agent in Dallas County. If the successful bidder fails or refuses to sign the contract for the performance of the work upon which the bid was made, the city council may require the forfeiture of the total amount of the bid bond as liquidated damages. (Amend. of 4-2-83, Prop. No. 1; Amend. of 5-1-93, Prop. No. 4)
SEC. 10.   RESIDENTS GIVEN PREFERENCE IN LETTING OF CONTRACTS.
   Qualifications, prices and quality of material being equal, residents and business firms of Dallas shall be given preference in the awarding of all contracts over which the city has jurisdiction, direct or indirect. This section shall not be construed so as to conflict with any provision of the Charter requiring competitive bidding. (Amend. of 11-5-24)
SEC. 11.   FINANCIAL INTEREST OF EMPLOYEE OR OFFICER PROHIBITED.
   (a)   No city official or employee shall have any financial interest, direct or indirect, in any contract with the city, or be financially interested, directly or indirectly, in the sale to the city of any land, materials, supplies or services, except on behalf of the city as a city official or employee. Any violation of this section shall constitute malfeasance in office, and any city official or employee guilty thereof shall thereby forfeit the city official’s or employee’s office or position with the city. Any violation of this section, with knowledge, express or implied, of the person or corporation contracting with the city shall render the contract involved voidable by the city manager or the city council.
   (b)   The alleged violations of this section shall be matters to be determined either by the trial board in the case of employees who have the right to appeal to the trial board, and by the city council in the case of other employees.
   (c)   The prohibitions of this section shall not apply to the participation by city employees in federally-funded housing programs, to the extent permitted by applicable federal or state law.
   (d)   This section does not apply to an ownership interest in a mutual or common investment fund that holds securities or other assets unless the person owns more than 10 percent of the value of the fund.
   (e)   This section does not apply to non-negotiated, form contracts for general city services or benefits if the city services or benefits are made available to the city official or employee on the same terms that they are made available to the general public.
   (f)   This section does not apply to a nominee or member of a city board or commission, including a city appointee to the Dallas Area Rapid Transit Board. A nominee or member of a city board or commission, including a city appointee to the Dallas Area Rapid Transit Board, must comply with any applicable conflict of interest or ethics provisions in the state law and the Dallas City Code. (Amend. of 8-12-89, Prop. No. 1; Amend. of 8-12-89, Prop. No. 15; Amend. of 11-4-14, Prop. Nos. 2 and 9)
SEC. 12.   LIENS AND RETAINAGES.
   No lien of any kind can ever exist against the public buildings, public halls, public works, or any public property of the city except as herein otherwise provided. All subcontractors, materialmen, mechanics, and laborers on any public works or contracts of the city on which no payment bond is required or made, are required to notify the chief financial officer of all claims that they may have on account of such work against the city. When such notice has been given, the city may retain an amount from any funds due the contractor or contractors, sufficient to satisfy all such claims. Such notice may be given at any time after such indebtedness becomes due and before final settlement with the contractor or contractors, and no contractor or subcontractor shall issue any time checks on account of any contract with the city. No claims against the city shall constitute a valid claim over and above the amount of the retainage made by the city. (Amend. of 4-2-83, Prop. No. 6; Amend. of 11-8-05, Prop. No. 8)