TDCAA Community
Auto-renewal provisions in County Contracts

This topic can be found at:
https://tdcaa.infopop.net/eve/forums/a/tpc/f/257098965/m/4027061416

December 01, 2014, 16:01
ZackWavrusa
Auto-renewal provisions in County Contracts
This situation I have:

County wants to contract with this "TeleDoc" service that is supposed to save $$ on Doctor and Emergency Room visits for employees.

Proposed Contract is for an initial one year term that auto-renews. Contract can be terminated by either party with 60 days advanced notice.

I know the Texas Constitution prohibits County governments from pledging tax revenues beyond the current fiscal year.

Would this contract violate that provision? My thought is that since you can opt out of the auto-renewal, you are not in violation of the constitutional provision. Any guidance would be appreciated.
December 02, 2014, 09:44
russwm
That is how I have always looked at it.
December 03, 2014, 07:13
Lisa Peterson
I believe that you are technically correct. The "auto renewal" provisions provide a legal fiction so that we can work with companies, especially utilities, that would otherwise not give us the time of day. Even the Tyler Technologies contract which we are mandated to sign for e-filing falls into this, as do software contracts.


Lisa L. Peterson
Nolan County Attorney