City manager calls procurement allegations "unfounded" and outlines contract practices

City Manager Wayne Reid told the Cibolo City Council on Tuesday that recent media reports alleging irregular procurement activity were "unfounded and without merit" and that the city's procurement policy and accompanying procedures comply with state law.

Reid said the council delegated authority to the city manager to approve professional services contracts under $50,000, a longstanding practice under state law, and that the city adopted a revised procurement policy by ordinance in January 2024. "The procurement policy and procurement manual are compliant with state law and competitive bidding practices," Reid said, adding that his staff had standard contract forms that specify a maximum payment that "may not under any circumstances exceed $49,999."

The presentation was prompted by public questions about a recent professional-services agreement. Reid walked council through a chronology of the policy review and adoption, explained why the $50,000 threshold exists under Local Government Code Chapter 252 and cited Texas Government Code Section 2254.003 as the authority for qualifications-based professional contracting. He identified four professional-services contracts executed since January 2024 as examples: a solid-waste consultant engagement (maximum $39,940), a short-term agreement with consultant Tim Foos (paid $5,560 for delivered work), a new water-specialist engagement with LRE Water (not to exceed $34,440 under the remaining budget), and a water-rate study vendor (Willdan, chosen after competitive proposals and under the $50,000 threshold).

Reid said staff worked with the city attorney and used standard contract language to prevent serial or sequential contracting that would circumvent the competitive-bid process. City Attorney counsel echoed that violations of the delegation limit and improper sequential contracting can carry criminal as well as civil exposure and are monitored under state law.

Council members asked clarifying questions. Councilwoman Katie Cunningham said she had a "yellow flag" when she was told one number in a budget amendment discussion and then saw a contract for a higher amount: she noted staff told council a $40,000 figure but the formal contract cited $49,999. Reid said he had answered constituent questions about the specific contract in February and that no council member had asked for further review after that correspondence.

Several council members voiced support for Reid and staff. Councilman Randy Mahoney said he saw "no red flags" and praised staff for following policy. Councilman Jeff (surname not provided in the record) expressed concern that public accusations had raised costs by dissuading one expert (Tim Foos) from continuing and said the city had lost a lower-cost option as a result.

Reid also noted that state law will increase the delegation threshold to $100,000 effective Sept. 1, 2025, under recently enacted legislation; he said staff will return with any recommended administrative or policy changes at that time.

The council did not take formal action on the presentation. Reid said staff will continue to follow the procurement procedures and will return with any additional documentation or clarifications council requests.

Ending: Council members asked that staff provide supporting documents referenced in the presentation (contract excerpts, the procurement manual, and the February correspondence) for any council member who requests them. Reid said he would circulate materials and noted that staff will brief council again if members want further review.