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HomeMy WebLinkAboutCity Packets - City Council - 09/02/2025 - RegularCITY OF THE COLONY CITY COUNCIL AGENDA TUESDAY, SEPTEMBER 2, 2025 6:30 PM 1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS and PROCLAMATIONS 1.1 Call to Order 1.2 Invocation 1.3 Pledge of Allegiance to the United States Flag 1.4 Salute to the Texas Flag 1.5 Proclamation recognizing September 2025 as United Way of Denton County - LIVE UNITED Month. (Mayor) 1.6 Proclamation acknowledging the month of September as "National Service Dog Month". (Mayor) 1.7 Proclamation recognizing the first full week of September 2025 as "Payroll Week". (Mayor) 1.8 Items of Community Interest 1.9 Receive presentation from Parks and Recreation regarding upcoming events and activities. (Hancock) 2.0 CITIZEN INPUT 3.0 WORK SESSION 3.1 Council to provide direction to staff regarding future agenda items. (Council) 4.0 CONSENT AGENDA TO ALL INTERESTED PERSONS Notice is hereby given of a REGULAR SESSION of the CITY COUNCIL of the City of The Colony, Texas to be held at 6:30 PM on TUESDAY, SEPTEMBER 2, 2025 at CITY HALL , at which time the following items will be addressed: This portion of the meeting is to allow up to five (5) minutes per speaker with a maximum of thirty (30) minutes for items not posted on the current agenda. The council may not discuss these items, but may respond with factual data or policy information, or place the item on a future agenda. Those wishing to speak shall submit a Request Form to the City Secretary. The Work Session is for the purpose of exchanging information regarding public business or policy. No action is taken on Work Session items. Citizen input will not be heard during this portion of the agenda. The Consent Agenda contains items which are routine in nature and will be acted upon in one motion. Items may be removed from this agenda for separate discussion by a Council member. REGULAR SESSION OF THE CITY COUNCIL Agenda Meeting Date: 09/02/2025 1 4.1 Consider approving City Council Regular Session meeting minutes from August 19, 2025. (Stewart) 4.2 Consider approving a resolution authorizing the City Manager to suspend the September 17, 2025 effective date of the proposal of CoServ Gas Ltd. to implement interim GRIP rate adjustments. (Miller) 4.3 Consider approving a resolution authorizing the City Manager to award a contract to Zone Industries, LLC in the amount of $107,325.52 for the purchase and installation of a pump and motor, BuyBoard Contract No. 770-25 at the Office Creek Water Treatment and Pump Station. (Arthur) 5.0 REGULAR AGENDA ITEMS 5.1 Conduct a public hearing, discuss, and consider an ordinance regarding amendments to Appendix A, Section 10 of the Code of Ordinances of the City of The Colony, Texas, amending Section 10-200, entitled "Schedule of Uses by District," by removing "Home Occupation" and replacing it with a new land use entitled "No-Impact Home-Based Business"; amending Appendix A, Section 10-300, entitled "definitions and explanations applicable to use schedule" by removing subsection (14), definition for "home occupation" and adding a new definition entitled "No-Impact Home-Based Business"; and amending Appendix A by adding a new section 10-1386, entitled "Home-Based Business Regulations." (Williams) 5.2 Conduct a public hearing, discuss, and consider an ordinance regarding amendments to Appendix A, Section 24 of the Comprehensive Zoning Code of the City of The Colony, Texas, entitled "Amendments" subsection 24-101(g) to address notice requirements for public hearing. (Williams) 5.3 Conduct a public hearing, discuss, and consider an ordinance regarding amendments to Appendix B of the Code of Ordinances of the City of The Colony entitled "Subdivision Ordinance," by adding a new section 8.5 entitled "Vacating Plat" and by establishing the requirements for vacating a plat. (Williams) 5.4 Discuss and consider approving a resolution authorizing the City Manager to execute a contract for services with SPAN Inc. for purposes of providing nutrition, transportation, and social services to residents of The Colony. (Perez) 5.5 Discuss and consider approving a resolution authorizing the City Manager to approve an amendment to the City's Finance Policy Number 100.07 - Purchasing. (Oerum) 5.6 Discuss and consider approving an ordinance adopting the City of The Colony Fiscal Year Budget beginning October 1, 2025 through September 30, 2026; providing for intra and inter departmental fund transfers; providing that expenditures for said Fiscal Year to be made in accordance with said budget. (Miller) 5.7 Discuss and consider an ordinance approving the proposed 2025-2026 tax rate not to exceed $0.63000 cents per $100 valuation for the taxable value of real and personal property located within the City of The Colony. (Miller) 5.8 Discuss and consider approving a resolution amending the Fiscal Year 2024-2025 Master Fee Schedule for the Fiscal Year 2025-2026, effective October 1, 2025 . (Miller) REGULAR SESSION OF THE CITY COUNCIL Agenda Meeting Date: 09/02/2025 2 6.0 EXECUTIVE SESSION 6.1 A. Council shall convene into a closed executive session pursuant to Sections 551.072 and 551.087 of the Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s). B. Council shall convene into a closed executive session pursuant to Section 551.074 of the Texas Government Code to deliberate the evaluation, reassignment, duties, discipline, or dismissal of the City Secretary. 7.0 EXECUTIVE SESSION ACTION 7.1 A. Any action as a result of executive session regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and the offer of a financial or other incentive to a business prospect(s). B. Any action as a result of executive session regarding the evaluation, reassignment, duties, discipline, or dismissal of the City Secretary. EXECUTIVE SESSION NOTICE Pursuant to the Texas Open Meeting Act, Government Code Chapter 551 one or more of the above items may be considered in executive session closed to the public, including but not limited to consultation with attorney pursuant to Texas Government Code Section 551.071 arising out of the attorney's ethical duty to advise the city concerning legal issues arising from an agenda item. Any decision held on such matter will be taken or conducted in open session following the conclusion of the executive session. ADJOURNMENT Persons with disabilities who plan to attend this meeting who may need auxiliary aids such as interpreters for persons who are deaf or hearing impaired, readers or, large print are requested to contact the City Secretary's Office, at 972-624-3105 at least two (2) working days prior to the meeting so that appropriate arrangements can be made. REGULAR SESSION OF THE CITY COUNCIL Agenda Meeting Date: 09/02/2025 3 _________________________________________ Tina Stewart, TRMC, CMC, City Secretary CERTIFICATION I hereby certify that above notice of meeting was posted outside the front door of City Hall by 5:00 p.m. on the 26th day of August 2025. REGULAR SESSION OF THE CITY COUNCIL Agenda Meeting Date: 09/02/2025 4 Agenda Item No: 1.5 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Proclamation Agenda Section: routine announcements, recognitions and proclamations Suggested Action: Proclamation recognizing September 2025 as United Way of Denton County - LIVE UNITED Month. (Mayor) Background: Melinda Galler, UWDC Board Member; Michael Thomson, Board Member and Fire Chief, City of Carrollton and staff members Shelley Redondo, Programs Director and Sharon Lee, Landlord Engagement Manager. Attachments: 2025 United Way of Denton County Proclamation.doc 5 MAYORAL PROCLAMATION WHEREAS, United Way of Denton County mobilizes communities like the City of The Colony to action so all can thrive; and WHEREAS, United is The Way we create a healthy Denton County community with strengthened resilience, wellness, and financial security where everyone, regardless of age, has the opportunity to flourish. WHEREAS, by working together with donors, supporters, and collaborators across Denton County, United Way of Denton County creates opportunities to expand education, promote economic mobility, improve health & mental health, and provide basic needs for over 54,000 County residents annually. WHEREAS, United Way of Denton County leads the effort with a network of nonprofits, governments, businesses, and donors to respond to our neighbor’s immediate needs and seek out better solutions for larger community-wide issues. NOW, THEREFORE, I, Richard Boyer, Mayor of the City of The Colony, do hereby proclaim September 2025 as LIVE UNITED Month and proudly join United Way of Denton County in calling on all residents of The Colony to Give to One to Impact Many as we take action to LIVE UNITED for a better Denton County for all of us. SIGNED AND SEALED this 2nd day of September 2025. __________________________________ Richard Boyer, Mayor City of The Colony, Texas __________________________________ Tina Stewart, TRMC, CMC, City Secretary 6 Agenda Item No: 1.6 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Proclamation Agenda Section: routine announcements, recognitions and proclamations Suggested Action: Proclamation acknowledging the month of September as "National Service Dog Month". (Mayor) Background: Attachments: National Service Dog Month 2025 Proclamation.docx 7 MAYORAL PROCLAMATION WHEREAS, we believe in the joyful, transformative power of the human-canine bond and inclusivity of all citizens; and WHEREAS, in the United States, 70 million adults have a disability and only 16,000 service dogs from accredited training programs exist nationwide and the need is growing; and WHEREAS, Canine Companions created the service dog for people with physical disabilities 50 years ago in 1975, creating a new kind of support for disability; and WHEREAS, Canine Companions is a nonprofit organization that enhances the lives of people with disabilities by providing expertly-trained service dogs and ongoing support to ensure quality partnerships, free of charge; and WHEREAS, Canine Companions and their service dogs empower people with disabilities to lead life with greater independence by providing best-in-class training, ongoing follow up services and a deeply committed community of support; and WHEREAS, National Service Dog Month aims to educate our community about the benefits of service dogs and the laws protecting their handlers; and WHEREAS, The City of The Colony, Texas continues to work toward becoming an inclusive community in which all citizens, and their trained service dogs, are embraced. NOW, THEREFORE, I Richard Boyer, Mayor of the City of The Colony, Texas, in recognition of service dogs and the adults and children with disabilities in our community, do hereby proclaim September to be “NATIONAL SERVICE DOG MONTH”. I encourage all citizens to celebrate service dogs and be respectful of the rights to safe access in our community afforded to the adults, children and veterans who lead more independent lives because of their assistance. SIGNED AND SEALED this 2nd day of September 2025. Richard Boyer, Mayor City of The Colony, Texas 8 Agenda Item No: 1.7 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Proclamation Agenda Section: routine announcements, recognitions and proclamations Suggested Action: Proclamation recognizing the first full week of September 2025 as "Payroll Week". (Mayor) Background: Indira Popaja, Government Relations Director with Dallas Chapter to accept proclamation Attachments: Payroll Week Proclamation.docx 9 MAYORAL PROCLAMATION WHEREAS, the American Payroll Association and its more than 20,000 members have launched a nationwide public awareness campaign that pays tribute to the nearly 150 million people who work in the United States and the payroll professionals who support the American system by paying wages, reporting worker earnings and withholding federal employment taxes; and WHEREAS, payroll professionals in The Colony, Texas play a key role in maintaining the economic health of The Colony, carrying out such diverse tasks as paying into the unemployment insurance system, providing information for child support enforcement, and carrying out tax withholding, reporting and depositing; and WHEREAS, payroll departments collectively spend more than $2.4 trillion annually complying with myriad federal and state wage and tax laws; and WHEREAS, payroll professionals play an increasingly important role ensuring the economic security of American families by helping to identify non-custodial parents and making sure they comply with their child support mandates; and WHEREAS, payroll professionals have become increasingly proactive in educating both the business community and the public at large about the payroll tax withholding systems; and WHEREAS, payroll professionals meet regularly with federal and state tax officials to discuss both improving compliance with government procedures and how compliance can be achieved at less cost to both government and businesses; and WHEREAS, the week in which Labor Day falls has been proclaimed National Payroll Week. NOW THEREFORE, I, Richard Boyer, Mayor of the City of The Colony, Texas, hereby give additional support to the efforts of the people who work in the City of The Colony, and of the payroll profession by proclaiming the first full week of September as: City of the Colony Payroll Week SIGNED and SEALED this 2nd day of September 2025. ________________________________ Richard Boyer, Mayor City of The Colony, Texas 10 Agenda Item No: 1.9 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: Parks & Recreation Item Type: Announcement Agenda Section: routine announcements, recognitions and proclamations Suggested Action: Receive presentation from Parks and Recreation regarding upcoming events and activities. (Hancock) Background: 11 Agenda Item No: 3.1 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Discussion Agenda Section: work session Suggested Action: Council to provide direction to staff regarding future agenda items. (Council) Background: 12 Agenda Item No: 4.1 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Minutes Agenda Section: consent agenda Suggested Action: Consider approving City Council Regular Session meeting minutes from August 19, 2025. (Stewart) Background: Attachments: Aug. 19, 2025 Minutes.docx 13 1 These items are strictly public service announcements. Expressions of thanks, congratulations or condolences; information regarding holiday schedules; honorary recognition of city officials, employees or other citizens; reminders about upcoming events sponsored by the City or other entity that are scheduled to be attended by a city official or city employee. No action will be taken and no direction will be given regarding these items. MINUTES OF THE CITY COUNCIL REGULAR SESSION HELD ON August 19, 2025 The Regular Session of the City Council of the City of The Colony, Texas, was called to order at 6:31 p.m. on the 19 day of August 2025, at City Hall, 6800 Main Street, The Colony, Texas, with the following roll call: Richard Boyer, Mayor Judy Ensweiler, Mayor Pro Tem Robyn Holtz, Councilmember Brian Wade, Councilmember Dan Rainey, Councilmember Perry Schrag, Councilmember Joel Marks, Deputy Mayor Pro Tem Present Present Present Present Present Present Present And with 7 councilmembers present a quorum was established and the following items were addressed: 1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS and PROCLAMATIONS 1.1 Call to Order Mayor Boyer called the meeting to order at 6:31 p.m. 1.2 Invocation Senior Pastor Mike Bishop from Lakeway Baptist Church delivered the invocation. 1.3 Pledge of Allegiance to the United States Flag The Pledge of Allegiance to the United States Flag was recited. 1.4 Salute to the Texas Flag Salute to the Texas Flag was recited. 1.5 Items of Community Interest 1.6 Receive presentation from the Library regarding upcoming events and activities. Library Director, Megan Charters, provided upcoming events and activities to the Council. 2.0 CITIZEN INPUT Chelsie Adams, 5917 Fox Drive, introduced herself as candidate for Justice of the Peace Precinct 2 – Denton County. Jennifer Hall, 5201 South Colony Blvd, spoke regarding grant funding for North Texas Food Pantry. 14 City Council – Regular Meeting Agenda August 19, 2025 Page| 2 Pamela DeSantiago, 4431 August St., spoke regarding grant funding for Next Steps. Jacqueline Egert, 4400 SH 121 Suite 300, spoke regarding grant funding for The Colony Chamber of Commerce. Pattie Huestis, spoke regarding grant funding for Casa of Denton County. Michelle Doss, 5533 Rock Canyon Rd, spoke regarding grant funding for Love Pacs. 3.0 WORK SESSION 3.1 Receive a presentation regarding property maintenance and the responsibilities of owners, landlords, and tenants. Community Image Director, Iris Browder provided an overview of the item to City Council. 3.2 Council to provide direction to staff regarding future agenda items. Mayor Pro Tem, Judy Ensweiler provided City Council an update regarding the Food Blessing Community Event that will be held every 3rd Saturday of each month and they are looking for volunteers. 4.0 CONSENT AGENDA Motion to approve all items from the Consent Agenda - Schrag; second by Wade, motion carried with all ayes. 4.1 Consider approving City Council Regular Session meeting minutes from August 5, 2025. 4.2 Consider approving Council expenditures for June 2025. 4.3 Consider approving an ordinance authorizing the Mayor to execute a Negotiated Settlement Agreement between Atmos Cities Steering Committee and Atmos Energy Corporation, MID-TEX Division regarding the company's 2025 Rate Review Mechanism Filing. ORDINANCE NO. 2025-2614 4.4 Consider approving a resolution authorizing the City Manager to execute a Government Center Lease Agreement with American Legion Holley-Riddle Post 21 for the Fiscal Year 2025-26. 15 City Council – Regular Meeting Agenda August 19, 2025 Page| 3 RESOLUTION NO. 2025-087 4.5 Consider approving a resolution authorizing the City Manager to execute a Lease Agreement with The Colony Chamber of Commerce for a space in the former Stewart Creek Elementary School Building for the Fiscal Year 2025-26. RESOLUTION NO. 2025-088 4.6 Consider approving a resolution authorizing the City Manager to execute a Municipal Building #5 Lease Agreement with Lakeside Community Theater for the Fiscal Year 2025-26. RESOLUTION NO. 2025-089 4.7 Consider approving a resolution authorizing the City Manager to award Contract Amendment No. 1 to Kaitlin Kent Enterprises, Inc. for Roadway Lifting Services for Nash Drive and Newton Street in the amount of $47,712.00. RESOLUTION NO. 2025-090 4.8 Consider approving a resolution authorizing the City Manager to issue a change order to Purchase Order No. 25-05129 with PVS Technologies for the purchase of Ferric Chloride used for wastewater treatment in the amount of $20,000.00. RESOLUTION NO. 2025-091 5.0 REGULAR AGENDA ITEMS 5.1 Discuss and consider approving a resolution authorizing the City Manager to execute a contract for services with SPAN Inc. for purposes of providing nutrition, transportation, and social services to residents of The Colony. Deputy City Manager, Joe Perez provided an overview on the item and introduced Ricky DeLaPaz. Ricky DeLaPaz with SPAN presented an update on this item. Layton Woodall available to answer questions. Council provided discussion on the item. Motion to postpone to September 2nd City Council meeting- Ensweiler; second by Marks, motion carried with all ayes. 16 City Council – Regular Meeting Agenda August 19, 2025 Page| 4 5.2 Conduct a public hearing, discuss and consider an ordinance regarding the approval of a request for a Specific Use Permit (SUP) to allow for "Robbie's Retro Game Store" [Thrift Store] with conditions that (1) the thrift store be located within two miles of another thrift store and (2) that the thrift store is an anchor store in a shopping center; located at 7512 Main Street, Suite 208 ap-proximately 3,410 sq.ft, located within the Light Commercial (LC) Zoning District and Gateway Overlay District. Planning Director, Isaac Williams provided an overview on the item. Council provided discussion on the item. Motion to approve with conditions outlined in the ordinance- Ensweiler; second by Rainey, motion carried with all ayes. ORDINANCE NO. 2025-2615 5.3 Discuss and consider the City of The Colony Proposed Preliminary Municipal Budget 2025-2026. Assistant City Manager, Tim Miller provided an overview on the item. Council provided discussion on the item. 5.4 Conduct a public hearing, discuss and consider the City of The Colony Fiscal Year Budget beginning October 1, 2025 through September 30, 2026; providing for intra and inter departmental fund transfers; providing that expenditures for said Fiscal Year to be made in accordance with said budget. Assistant City Manager, Tim Miller provided an overview on the item. The public hearing was opened and closed at 8:36 p.m. Council provided discussion on the item. 5.5 Conduct a public hearing and discuss the proposed 2025-2026 tax rate not to exceed $0.63000 cents per $100 valuation for the taxable value of real and personal property located within the City of The Colony, and announce that the tax rate will be voted on September 2, 2025 at 6:30 p.m. at The Colony City Hall, 6800 Main Street. Assistant City Manager, Tim Miller provided an overview on the item. The public hearing was opened and closed at 8:37 p.m. 17 City Council – Regular Meeting Agenda August 19, 2025 Page| 5 Council provided discussion on the item. City Manager, Troy Powell thanked the team for their hard work on the budget. Assistant City Manager, Tim Miller thanked the finance team and directors for all the hard work on the budget. 5.6 Discuss and consider approving a resolution accepting a preliminary service and assessment plan for the City of The Colony Public Improvement District, and assessment roll on properties located within the Public Improvement District No. 1. for the Fiscal Year 2025-26, and schedule a public hearing for September 16, 2025, concerning the levy of special assessments. Executive Business Liaison, Jeremie Maurina provided an overview on the item. Council provided discussion on the item. Motion to approve - Wade; second by Rainey, motion carried with all ayes. RESOLUTION NO. 2025-092 5.7 Discuss and appoint members to The Colony 50th Anniversary Planning Committee. Council appointed the following individuals to the committee: Councilmember Joel Marks and Judy Ensweiler; staff - Tim Miller, Tina Stewart, Megan Charters, Bailey Cooper, Pamela Chesney, Danecia Gissendanner, Yolanda Murray, Stephen Christo and Leigh Ann Nuckles; residents – Don Beckel, Janet Gadd, Angela Hudson, Michael Bossert, Glen Morrow, Brian Fitzpatrick and Ray Reynolds. Executive Session was convened at 8:49 p.m. 6.0 EXECUTIVE SESSION 6.1 A. Council shall convene into a closed executive session pursuant to Sections 551.072 and 551.087 of the Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s). B. Council shall convene into a closed executive session pursuant to Section 551.074 of the Texas Government Code to deliberate the evaluation, reassignment, duties, discipline, or dismissal of the City Secretary. 18 City Council – Regular Meeting Agenda August 19, 2025 Page| 6 C. Council shall convene into a closed executive session pursuant to Section 551.074 of the Texas Government Code to deliberate the evaluation, reassignment, duties, discipline, or dismissal of the City Manager. Regular Session was reconvened at 9:47 p.m. 7.0 EXECUTIVE SESSION ACTION 7.1 A. Any action as a result of executive session regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and the offer of a financial or other incentive to a business prospect(s). No Action B. Any action as a result of executive session regarding the evaluation, reassignment, duties, discipline, or dismissal of the City Secretary. Motion to approve with the addition of the severance agreement as discussed in executive session- Wade; second by Ensweiler, motion carried with all ayes. C. Any action as a result of executive session regarding the evaluation, reassignment, duties, discipline, or dismissal of the City Manager. Motion to approve with the amended contract as discussed in executive session- Wade; second by Ensweiler, motion carried with all ayes. ADJOURNMENT With there being no further business to discuss, the meeting adjourned at 9:49 p.m. APPROVED: __________________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: _____________________________________ Tina Stewart, TRMC, CMC, City Secretary 19 Agenda Item No: 4.2 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Resolution Agenda Section: consent agenda Suggested Action: Consider approving a resolution authorizing the City Manager to suspend the September 17, 2025 effective date of the proposal of CoServ Gas Ltd. to implement interim GRIP rate adjustments. (Miller) Background: Attachments: Res. 2025-xxx 2025 CoServ GRIP Suspension.doc 20 1 CITY OF THE COLONY, TEXAS RESOLUTION NO 2025 - _____ A RESOLUTION BY THE CITY OF THE COLONY, TEXAS SUSPENDING THE SEPTEMBER 17, 2025 EFFECTIVE DATE OF THE PROPOSAL BY COSERV GAS, LTD. TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR GAS UTILITY INVESTMENT IN 2024 AND REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL. WHEREAS, the City of The Colony, Texas (“City”) is a gas utility customer of CoServ Gas, Ltd., (“CoServ” or “the Company”) and a regulatory authority with an interest in the rates and charges of CoServ; and WHEREAS, CoServ made filings with the City and the Railroad Commission of Texas (“Railroad Commission”) on July 18, 2025, proposing to implement interim rate adjustments (“GRIP Rate Increases”) pursuant to Texas Utilities Code § 104.301 on all customers served by CoServ, effective September 17, 2025; and WHEREAS, it is incumbent upon the City, as a regulatory authority, to examine the GRIP Rate Increases to determine its compliance with the Texas Utilities Code. THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: 1. The September 17, 2025 effective date of the GRIP Rate Increases proposed by CoServ is hereby suspended for the maximum period allowed by Texas Utilities Code § 104.301(a) to permit adequate time to review the proposed increases, analyze all necessary information, and take appropriate action related to the proposed increases. 2. A copy of this Resolution shall be sent to CoServ, care of Brent Bishop at 7701 South Stemmons Freeway, Corinth, Texas 76210, and to Thomas Brocato, legal counsel to the City, at Lloyd Gosselink, 816 Congress Ave., Suite 1900, Austin, Texas 78701. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 2nd DAY OF SEPTEMBER 2025. ____________________________________ Richard Boyer, Mayor City of The Colony, Texas 21 2 ATTEST: ___________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: ______________________________________ Jeffrey L. Moore, City Attorney 22 Agenda Item No: 4.3 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: Public Works/Water Distribution Item Type: Resolution Agenda Section: consent agenda Suggested Action: Consider approving a resolution authorizing the City Manager to award a contract to Zone Industries, LLC in the amount of $107,325.52 for the purchase and installation of a pump and motor, BuyBoard Contract No. 770-25 at the Office Creek Water Treatment and Pump Station. (Arthur) Background: A larger pump is needed to increase water pumping capacity to the distribution system. The new pump will replace 2,000 gallon per minute pump and 100-horsepower motor with a 350-horsepower and 6,500 gallon per minute pump. The new 350-horsepower motor will be a variable speed motor to regulate the speed and control pump flow from 4,500 gallons per minute to 6,500 per minute. The larger pump and variable speed give operations the flexibility to keep up with fluctuation in water demand and improve pumping efficiency to the water distribution system. Attachments: Zone Industries Memo.pdf Qte10018623 8-8-2025.pdf 4.3 Res. 2025-xxx Zone Industries LLC.docx 23 City of The Colony - 6800 Main Street - The Colony, Texas 75056 (972) 625-1756 www.TheColonyTX.gov From: James Whitt, Department of Public Works Sent: August 26, 2025 Subject: Office Creek Water Treatment and Pump Station New Pump The current pump installed at the Office Creek Water Treatment and Pump Station does not have the capacity to meet the increased demand we are currently experiencing or the future demand we expect over the next few years as development continues. A larger pump with increased volume is required to meet the increased pumping capacity and to provide the required pressure to the distribution system. The new pump will replace the existing 100- horsepower motor and a 2,000 gallon per minute pump with a 350-horsepower and 6,500 gallon per minute pump. The new 350-horsepower motor will be a variable speed motor to regulate the speed and to control pump flow from 4,500 gallons per minute to 6,500 per minute. The larger pump and variable speed will give operations the flexibility to keep up with fluctuations in water demand and will improve pumping efficiency to the water distribution system. 24 QUOTATION 10018623 ZONE INDUSTRIES, LLC Order Date Order Number 08/08/2025 11:56:45 Page 1 of 7 Quote Expires On: 09/07/2025 PO Box 73149 Houston, TX 77273 817-912-5151 cbrown@zoneindustries.com Jared Lell Email Account Mgr Email Inside Sales Collin Brown jlell@zoneindustries.com Quote Number See below The Colony, TX 78934 Colony, City of 6800 Main St. The Colony, TX 75056 Requested By: Jimmy Author Customer ID: 6800 Main St. City of The Colony Bill To:Ship To: Colony, City of 972-624-4431 12553 Job Name: Ship Route Inside SalesPO Number Main PS Splitcase rehab project COLLIN.BROWN Item ID Item DescriptionRemaining Quantities UOM Disp.Unit Size Pricing UOM Unit PriceUnit Size Price Extended AllocatedOrdered Delivery Instructions:FREIGHT INCLUDED PUMP PACKAGE1.000.00 107,325.52EAEA1.00 107,325.52 1.0 1.0Pump Package Non-Skidded Order Line Notes:Xylem e-XC12x16x17/350H6X4WN-GA1CC1G Split case. 14.244 Trim Rated for 6500GPM @ 72PSI. Includes new pump, base, and 350HP 1800RPM ODP motor. Includes demo of old pump and base. Install new grout base pad, Install new fab steel base with pump and motor, furnish new piping and pipe modifications for new pump. Includes start up after installation. SUB-TOTAL:Total Lines:1 107,325.52 0.00TAX: 19.1.3681 - 09/23/19 25 QUOTATION 10018623 ZONE INDUSTRIES, LLC Order Date Order Number 08/08/2025 11:56:45 Page 2 of 7 Quote Expires On: 09/07/2025 PO Box 73149 Houston, TX 77273 817-912-5151 cbrown@zoneindustries.com Jared Lell Email Account Mgr Email Inside Sales Collin Brown jlell@zoneindustries.com Quote Number See below Item ID Item DescriptionRemaining Quantities UOM Disp.Unit Size Pricing UOM Unit PriceUnit Size Price Extended AllocatedOrdered U.S. Dollars 107,325.52AMOUNT DUE: As the situation remains highly volatile, Zone Industries reserves the right to adjust the surcharge amount with notice on both new and expired quotes. Zone Industries may increase or decrease the surcharge percentage in response to any future changes to U.S. tariffs. Additional major risks include potential tariff hikes on China, as well as the reinstatement of tariffs on Mexico, Canada, and/or Europe, should they be enforced. 19.1.3681 - 09/23/19 26 ZONE INDUSTRIES LLC - TERMS AND CONDITIONS 1. Construction and Legal Effect: Zone Industries, LLC shall hereinafter be referred to as “ZONE”, and the applicant shall be referred to as “CUSTOMER.” The CUSTOMER desires to purchase goods and/or services (collectively, the “Goods”) from ZONE, and CUSTOMER agrees in consideration thereof to be bound by the terms and conditions stated in this agreement. ZONE's sales to CUSTOMER are limited to and expressly made conditional on CUSTOMER's assent to these Terms and Conditions (“Terms”). The issuance of a purchase order by CUSTOMER or CUSTOMER's acceptance of the Goods and/or services or payment for the Goods and/or services shall operate as acceptance by CUSTOMER of these Terms. ZONE hereby objects to any terms or conditions at variance with, different from or additional to the Terms stated herein unless such terms and conditions are hereafter set forth in a writing signed by ZONE. Anything herein to the contrary notwithstanding, no amendment to, or waiver, modification or deletion of, any of the terms and conditions stated herein shall be deemed effective unless any such amendment, waiver, modification or deletion, as the case may be, shall have been approved and accepted in writing by an officer of ZONE. 2. Credit: ZONE reserves the right to approve, approve with conditions or disapprove any request for extension of credit in its sole discretion. Credit will be extended by ZONE to CUSTOMER based on the information provided in this application. CUSTOMER agrees that any financial documents provided ZONE are true and correct. ZONE is authorized to check CUSTOMER’s credit background. The amount of credit extended to CUSTOMER will be determined by ZONE and may vary from time to time. CUSTOMER waives notice of any change in CUSTOMER's credit limit. All amounts charged to the open account are CUSTOMER's responsibility. CUSTOMER agrees to pay any and all invoices, charges, fees and costs which CUSTOMER or any authorized person incurs on CUSTOMER’s account. Unless CUSTOMER notifies ZONE in writing within five (5) days of any unauthorized use of CUSTOMER’s credit account, CUSTOMER agrees that any other person who incurs charges on CUSTOMER’s account is authorized to do so. Notwithstanding the foregoing, any and all contracts, certificates, invoices and other writings signed on behalf of CUSTOMER by any employee of CUSTOMER shall be deemed to have been executed on behalf of CUSTOMER with full authority. 3. Payments: Payment of amounts due hereunder shall be made by CUSTOMER to ZONE net thirty (30) days after shipment date. ZONE, at its sole discretion, may offer early payment discounts to customers based on the customer’s credit history and payment history with ZONE. ZONE reserves the right at any time to alter or suspend credit, or to change credit terms provided herein, when in its sole opinion CUSTOMER's financial condition so warrants. ZONE further reserves the right to amend the timing of payments if necessary due to vendor payment requirements. All payments made by credit card shall be subject to a three percent (3%) processing fee. Failure to pay an invoice at due date, at ZONE's election, makes all subsequent invoices immediately due and payable, irrespective of terms, and ZONE may withhold all subsequent deliveries under all outstanding orders until full payment is received. Any payment not made when due shall be subject to interest to be paid by CUSTOMER at the lesser of 1.5% per month or the highest rate permissible under applicable law. CUSTOMER agrees to notify ZONE in writing, of any error in any invoice within ten (10) days after the date of that invoice. If not so noticed, the invoice shall be deemed to be correct, and accepted as rendered. In the event of insolvency of CUSTOMER, default in payment or repudiation by CUSTOMER, or any breach of the terms of this agreement, ZONE shall have the right to stop delivery of the Goods and CUSTOMER shall be liable to ZONE for any and all liabilities incurred by ZONE as a result thereof including, but not limited to liabilities to third parties, collection costs, attorneys' fees, and any associated costs incurred by ZONE. 4. Price: CUSTOMER shall purchase the Goods from ZONE at the price(s) (the “Price”) set forth in the purchase order or invoice issued by ZONE. All Prices are exclusive of all Federal, State or local sales, use and excise taxes, and any other similar taxes, duties and charges of any kind on any amounts payable by CUSTOMER. CUSTOMER shall be responsible for all such charges, costs, and taxes; provided, that, CUSTOMER shall not be responsible for any taxes imposed on, or with respect to, ZONE’s income, revenue, gross receipts, or commercial activity. 5. Progress Billing: When the CUSTOMER has agreed in writing that payment for Goods shall be made periodically throughout a project, based on ZONE’s completion of predefined milestones as defined in the purchase order, ZONE shall invoice CUSTOMER as the milestones are reached, and CUSTOMER shall pay the invoice within thirty (30) days after receipt of the invoice. 6. Tariffs: To the extent that any materials, equipment, or other components of the Goods are subject to any tariff that could materially affect cost or shipping time, ZONE shall solely bear the risk of all tariffs that have been imposed by any governmental body as of the date of CUSTOMER’s execution of these Terms and Conditions. CUSTOMER shall bear the cost and schedule risks associated with tariffs that are adopted, increased, or imposed subsequent to the date of CUSTOMER’s execution of these Terms and Conditions. With respect to any materials, equipment, or other components of the Work that may be impacted by tariffs, whether or not adopted as of the date of CUSTOMER’s execution of these Terms and Conditions, ZONE shall investigate and advise the CUSTOMER regarding potentially acceptable alternatives. ZONE shall notify CUSTOMER of any cost or schedule changes made necessary by the adoption, increase, or imposition of any tariff through the issuance of an amended purchase order. 7. Action for Breach: Any action by CUSTOMER arising out of or relating to this agreement must be commenced within one (1) year after the cause of action has accrued. 19.1.3681 - 09/23/19 27 8. Warranty and Limitation of Liability: ZONE warrants that all Goods delivered hereunder shall, for twelve (12) months from startup of the Goods or eighteen (18) months from the date of receipt of the Goods by CUSTOMER, whichever comes first (the “Warranty Period”), be (i) free from defects in workmanship and materials, (ii) free from defects in design except to the extent that such goods comply with the detailed designs provided by the CUSTOMER; (iii) suitable for the purposes, if any, which are stated on the face of the purchase order, and (iv) in conformity with all other requirements of the purchase order and the specifications for such Goods that have been provided to ZONE. Provided that CUSTOMER gives written notice to ZONE within the Warranty Period, if Goods sold hereunder are found to fail to meet the requirements set forth in this Article 8, demonstrated to ZONE’s satisfaction to have existed at the time of departure from ZONE's plant, ZONE, reserving the right to inspect Goods, shall, at ZONE's option, repair or replace at ZONE's expense the Goods determined by ZONE to be non-conforming. ZONE shall not be obligated to repair or replace Goods that shall have been subjected to alteration, contamination, improper maintenance or storage, misapplication, misuse, negligence or accident during or after shipment from ZONE's plant or to Goods to which CUSTOMER’s tests used an unrepresentative sample. The remedy set forth in this Article 8 shall be the sole and exclusive remedy available to CUSTOMER for breach of warranty. No employee or agent of ZONE is authorized to make any warranty, statement, promise or understanding other than that which is specifically set forth in this Article 8. The provisions in any Technical Data sheet issued by ZONE or attached hereto are descriptive only and are not warranties or representations. THE WARRANTIES SET FORTH IN THIS ARTICLE 8 ARE THE ONLY WARRANTIES APPLICABLE TO THE GOODS AND SERVICES SOLD HEREUNDER. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE SPECIFICALLY DISCLAIMED AND SHALL NOT APPLY. If the Goods sold hereunder are resold by CUSTOMER, without any alteration or processing by CUSTOMER or incorporation into any of CUSTOMER’s products, CUSTOMER agrees to include in the agreement for resale provisions which limit recoveries against ZONE in accordance with this Article 8. In no event shall ZONE be liable for any direct, indirect, special, consequential or incidental damages under this agreement (including but not limited to any such damages arising out of late, partial and/or non delivery, the sale, use, furnishing of Goods, or suitability for general or particular use). CUSTOMER is solely responsible for determining suitability for use and ZONE shall in no event be liable in this respect. The giving or failure to give advice, recommendations or safety warnings of any character by ZONE shall not impose any liability upon ZONE. Upon transfer of title to the Goods, ZONE agrees to assign to CUSTOMER any and all manufacturers’ warranties relating to materials and labor used in production of the Goods and further agrees produce the Goods in such manner so as to preserve any and all such warranties. ZONE further agrees to reasonably cooperate with CUSTOMER should ZONE’s assistance be required in connection with the enforcement of such warranties. Should CUSTOMER breach any of the duties and warranties set forth within this Article 8, CUSTOMER AGREES TO FULLY INDEMNIFY, DEFEND AND HOLD ZONE HARMLESS from and against any and all liability, claims, and suits of any third party including but not limited to employees or insurers of CUSTOMER, in any way, in whole or in part, alleged to have arisen out of exposure to or use of Goods supplied by ZONE. Further, upon acceptance of Goods and services supplied by ZONE or in the absence of any written notice of nonconformity of such Goods, CUSTOMER AGREES TO FULLY RELEASE, INDEMNIFY, DEFEND AND HOLD ZONE HARMLESS from and against any and all liability, claims, and suits it may possess or that may be asserted against ZONE by any third party (including but not limited to contractors, subcontractors or property owners who have purchased, installed or otherwise used products or services of CUSTOMER or have had such products incorporated into their property or products, or insurers of any of such parties or of the CUSTOMER) in any manner arising in whole or in part, out of the production, marketing, distribution, sale, installation, use or deficiencies of any products of the CUSTOMER produced using the Goods supplied by ZONE. The provisions of this Article 8 shall survive the expiration, or earlier termination as provided herein, of this agreement. 9. Indemnity: CUSTOMER will release, hold harmless, indemnify and defend ZONE from any liability (including without limitation liability for negligence or strict liability) claims, losses, suits and costs resulting from the design of Goods supplied by ZONE. 19.1.3681 - 09/23/19 28 10. Delivery: Delivery and shipment dates are estimated dates only and are not guaranteed. In estimating such dates, no allowance has been made nor shall ZONE be liable for any damages, losses, penalties, whether direct, indirect, special, incidental or consequential, resulting from ZONE's failure or delay in performing, carriers’ failure or delay in performing or delays from labor difficulties, shortages, strikes or stoppages of any sort, fires, accidents, failure or delay in obtaining Goods, acts of government affecting ZONE directly or indirectly, bad weather, or any causes beyond ZONE's control, or causes designated as acts of God or force majeure by any statute or court of law. In the event any failure or delay to ship Goods continues for a period of ninety consecutive days, CUSTOMER may cancel its order for the subject Goods upon three days' written notice to ZONE. 11. Shipping: Unless CUSTOMER specifies otherwise in writing: (a) Goods will be shipped as ZONE may deem proper, and (b) routing and manner of shipment will be at ZONE's discretion. If special routing instructions are given, CUSTOMER agrees to pay additional handling and transportation charges, if any. Title and risk of loss passes to CUSTOMER upon delivery of the Goods to CUSTOMER or when the Goods otherwise leave the care, custody and control of ZONE. CUSTOMER shall be solely responsible for maintaining any insurance against loss or damage in shipment. ZONE shall not be liable for loss, damage, detention, delay or completion of an order due to acts of God, acts of terrorism, war, riots, civil insurrection, strikes, work stoppages, fires, accidents, acts of civil or military authority including governmental laws, embargoes, orders, priorities, or regulations, delay in transportation, shortages, delay by suppliers of materials, or any other causes whatsoever beyond the reasonable control of ZONE. 12. Security Interest: ZONE reserves a purchase money security interest in the Goods sold hereunder and the proceeds thereof, in the amount of the Price. In the event of default by CUSTOMER on any of its payment obligations to ZONE, ZONE will have the right to repossess the Goods sold hereunder that have not been paid for without liability to CUSTOMER or any third party in possession of such Goods, if not CUSTOMER. In such event, CUSTOMER agrees to make the Goods available to ZONE so that ZONE can repossess them without a breach of the peace. This security interest will be satisfied by payment in full. ZONE may file a financing statement to perfect ZONE’s security interest, provided that ZONE terminates any such financing statements once the Goods are paid for. CUSTOMER shall cooperate fully with ZONE to execute such other documents and to accomplish such filings and/or recordings thereof as ZONE may deem necessary for the protection of ZONE’s interests in the Goods furnished hereunder. 13. Termination: ZONE may by written notice to CUSTOMER terminate the whole or any part of this agreement in any one of the following circumstances: (1) if CUSTOMER fails to remit payment within the time specified herein or any extension thereof authorized by ZONE; or (2) if CUSTOMER fails to perform any of the other provisions of this agreement so as to endanger performance of this agreement in accordance with its terms; or (3) if CUSTOMER becomes insolvent, or engages in any act which reasonably causes the ZONE to deem itself insecure. ZONE shall not by reason of such termination be liable to CUSTOMER for any compensation, reimbursement, or damages including, in particular, but not limited to any direct, indirect, special, incidental or consequential damages or losses whatsoever, on account of expenditures, investments, or commitments. 14. Cancellations: CUSTOMER may not cancel any order of Goods without ZONE’s express, written consent. Immediately upon the cancellation of an order, ZONE shall stop all performance hereunder and CUSTOMER must pay to ZONE an amount equal to those reasonable and documented costs incurred by ZONE prior to cancellation plus a cancellation fee equal to 25% of the purchase price; provided, however, that the above amount plus any prior payments shall in no event exceed the purchase price of the Goods. All Goods completed or partially completed prior to cancellation shall become the property of CUSTOMER, or at CUSTOMER’s option, the salvage value of the Goods may be deducted from the amount due ZONE by reason of the cancellation. Unused Goods, processed material or specially manufactured Goods not normally carried in ZONE’s inventory may not, under any circumstances, be returned for salvage value. 15. Assignment: The rights and obligations of CUSTOMER hereunder may not be assigned without the prior written consent of ZONE. Any purported assignment without ZONE’s prior written consent shall be void and of no force and effect. 16. Non-Waiver: Any failure by ZONE to require full payment or strict performance by CUSTOMER of any of the provisions herein or to exercise any right or remedy hereunder, shall not waive or diminish ZONE's right thereafter to demand strict compliance therewith or with any other provision or to exercise any such right or remedy. Waiver of any default shall not waive any other default. 17. Applicable Law: This agreement shall be governed by and construed under the laws of the State of Texas, notwithstanding the principles, if any, that would otherwise govern the choice of applicable law. If legal action is brought to enforce this agreement, Harris County, Texas, shall be the exclusive jurisdiction and legal venue for said action, unless ZONE initiates said legal action is brought to enforce statutory remedies (such as mechanic’s lien, stop notices, payment bonds, etc.) in connection with a debt incurred by CUSTOMER; in such case, the jurisdiction and legal venue will be determined by the requirements of the Texas Civil Code or Code of Civil Procedure in order for ZONE to enforce such statutory rights 19.1.3681 - 09/23/19 29 18. Claims: It shall be the duty of CUSTOMER to thoroughly inspect the Goods purchased from ZONE. All claims of any nature relating to the Goods subject to this agreement, including but not limited to claims of defect in Goods, non-conformity or discrepancy in quantity or delivery date, shall be made in writing to ZONE within fifteen (15) days of receipt of such Goods by CUSTOMER. Failure to make any such written claim within the above-prescribed period shall constitute waiver of any such claims and shall be deemed acceptance of such Goods, quantities or delivery dates. 19. Nondisclosure: In consideration of the disclosure of Proprietary and Confidential information by the parties to each other, both parties agree that the information relating to requirements, processes, specifications, schedules, materials, financial data and pricing exchanged between parties is hereby designated as Proprietary and Confidential whether disclosed orally or disclosed or accessed in written, electronic or other form or media, and whether or not marked, designated or otherwise identified as "confidential" in connection with this Sales and may not be disclosed or copied unless authorized in advance by the other party in writing. Upon request, each party shall promptly return all Proprietary and Confidential materials received from the other party. Either party shall be entitled to injunctive relief for any violation of this Section. This Section does not apply to information that is: (a) in the public domain; (b) known to the other party at the time of disclosure; or (c) rightfully obtained by the other on a nonconfidential basis from a third party. 20. Force Majeure: ZONE will not be liable for failure in the performance of any of its obligations caused by accidents, labor disputes, shortages of labor, materials, fuel or power, or fires, floods or other acts of God, acts or omissions of CUSTOMER, priorities required, requested, or granted for the benefit of the national or any local government, restrictions imposed by national or local legislation or regulations, or any cause, whether similar or dissimilar to those enumerated in this section, including without limitation cease of production/operation by a vendor or other company due to economic hardship, which is beyond the control of ZONE. 21. Intellectual Property: ZONE shall retain sole ownership of all right, title, and interest in and to all its intellectual property, including, without limitation, ideas, methods, trademarks, service marks, trade names, symbols, logos, copyrights, patents, trade secrets, and know-how (collectively, the “Intellectual Property”), and no licenses to any Intellectual Property are created hereunder. 22. Relationship of the Parties: The relationship between ZONE and CUSTOMER is that of independent contractors. Nothing contained in this Agreement shall be construed as creating any agency, partnership, joint venture or other form of joint enterprise, employment, or fiduciary relationship between the ZONE and CUSTOMER. 23. Authorized Representative: CUSTOMER hereby represents and warrants that its signatory to these Terms is a duly authorized representative with the authority to bind CUSTOMER to these Terms. 24. Electronic Signatures: An “electronic signature” is any electronic symbol or process attached to or logically associated with a document sent by electronic transmission and executed or adopted by a person with the intent to sign such document. The use of electronic signatures (including, without limitation, through DocuSign and Adobe Sign) to execute these Terms shall be of the same legal effect, validity and enforceability as a manually executed signature to the fullest extent permitted by Texas law or other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code. 25. Acceptance / Enforceability of Copies: CUSTOMER agrees that ZONE may, at ZONE’S sole discretion, accept, utilize and rely upon a facsimile copy or photocopy of this agreement and the foregoing Continuing Personal Guaranty or Corporate Guaranty, in lieu of an original document. CUSTOMER acknowledges that, by transmitting a facsimile copy, electronic copy or photocopy of this document to ZONE, CUSTOMER, and the Guarantor (if applicable), agree to be bound by the terms and conditions contained in this document to the same extent as if an original were transmitted to ZONE. CUSTOMER, and Guarantor (if applicable), consent to ZONE’s use of this document and waive any right to object to the use of a copy in place of the original and any right to require Seller to subsequently produce an original document. This Credit Application and Agreement cannot be altered, amended, revised, or otherwise modified unless an officer of ZONE provides prior written consent thereto. By signing and returning this Credit Application and Agreement, CUSTOMER certifies and agrees as follows: (i) The information contained herein is true and correct; (ii) CUSTOMER authorizes ZONE, at any time and from time to time so long as CUSTOMER does business with ZONE, to obtain credit reports about CUSTOMER and to obtain credit information from banks or others with whom CUSTOMER has dealt. CUSTOMER authorizes all references named herein to release credit information to ZONE. The authorized individual signing on behalf of CUSTOMER, recognizing that his or her individual credit history may be a factor in evaluation of the credit history of the CUSTOMER, hereby consents to and authorizes the use of a consumer credit report on such individual, from time to time, so long as CUSTOMER does business with ZONE; (iii) CUSTOMER agrees to furnish such additional information as ZONE may request to warrant future extensions of credit or to enable ZONE to perfect liens or to recover upon any bond issued for its protection; (iv) CUSTOMER agrees that all purchases will be made under the Terms and Conditions set out herein; and (v) CUSTOMER agrees that ZONE may, for any reason and at any time, elect to terminate any credit that is extended to the CUSTOMER or modify the conditions under which credit is to be extended. OFFICER, AUTHORIZED AGENT OR OWNER SIGNATURE IS REQUIRED. 19.1.3681 - 09/23/19 30 CUSTOMER: Print Name: Signature: Title: Date: 19.1.3681 - 09/23/19 31 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2025 -_____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO AWARD A CONTRACT TO ZONE INDUSTRIES, LLC FOR THE PURCHASE AND INSTALLATION OF A PUMP AND MOTOR AT THE OFFICE CREEK WATER TREATMENT AND PUMP STATION; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: Section 1. That the City Council of the City of The Colony, Texas hereby authorizes the City Manager to award a contract to Zone Industries, LLC in the amount of $107,325.52 for the purchase and installation of a pump and motor, BuyBoard Contract No. 770-25 at the Office Creek Water Treatment and Pump Station. Section 2. That the City Manager and/or his designee are authorized to award the contract. Section 3. This resolution shall take effect immediately from and after its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS THE 2nd DAY OF SEPTEMBER 2025. ____________________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ___________________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: ___________________________________________ Jeffrey L. Moore, City Attorney 32 Agenda Item No: 5.1 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: Planning Item Type: Discussion Agenda Section: regular agenda items Suggested Action: Conduct a public hearing, discuss, and consider an ordinance regarding amendments to Appendix A, Section 10 of the Code of Ordinances of the City of The Colony, Texas, amending Section 10-200, entitled "Schedule of Uses by District," by removing "Home Occupation" and replacing it with a new land use entitled "No-Impact Home-Based Business"; amending Appendix A, Section 10-300, entitled "definitions and explanations applicable to use schedule" by removing subsection (14), definition for "home occupation" and adding a new definition entitled "No-Impact Home-Based Business"; and amending Appendix A by adding a new section 10-1386, entitled "Home-Based Business Regulations." (Williams) Background: Attachments: SI25-0004 CC Staff Report Ordinance amendment Home Based Business HB 2464.doc Ord. 2025-xxxx home occupation home based business amendment.docx 33 1 CITY COUNCIL REPORT AGENDA DATE: September 2, 2025 DEPARTMENT: Planning and Development Department SUBJECT: SI25-0004 Home Based Businesses- Zoning Text Amendment Conduct a public hearing, discuss an ordinance regarding amendments to Appendix A, Section 10 of the Code of Ordinances of the city of The Colony, Texas, amending Section 10-200, entitled "Schedule of Uses by District,” by removing “Home Occupation” and replacing it with a new land use entitled “No-Impact Home-Based Business”; amending Appendix A, Section 10-300, entitled “definitions and explanations applicable to use schedule” by removing subsection (14), definition for “home occupation” and adding a new definition entitled “no-impact home-based business”; and amending appendix a by adding a new section 10-1386, entitled “home-based business regulations” BACKGROUND In the 2025 Texas Legislative Session, the Texas Legislature approved H.B. 2464, an act relating to the authority of a municipality to regulate a home-based business. In summary this land use bill addresses the following: “(1) defines a “home-based business” (HBB) as a business that is operated: (a) from a residential property; (b) by the owner or tenant of the property; and (c) for the purpose of manufacturing, providing, or selling a lawful good or providing a lawful service; (2) defines a “no-impact-home-based-business” (NIHBB) as a HBB that: (a) has at any time on the property where the business is operated a total number of employees and clients or patrons of the business that does not exceed the city’s occupancy limit for the property; (b) does not generate on-street parking or a substantial increase in traffic through the area; (c) operates in a manner in which none of its activities are visible from a street; and (d) does not substantially increase noise in the area or violate a municipal noise ordinance, regulation, or rule; (3) provides that a city council may not adopt or enforce an ordinance, regulation, or other measure that: (a) prohibits the operation of a NIHBB; (b) requires a person that owns or operates a NIHBB to obtain a license, permit, or other approval to operate; or (c) requires a person that owns or operates an HBB to rezone the property for a non- residential use or install a fire sprinkler protection system if the residence where the business is operated consists only of a single-family detached residential structure or a multi-family residential structure with not more than two residential units; 34 2 (4) provides that, subject to (2), above, a city may: (a) require that a HBB comply with federal, state, and local law, including a city fire and building code or city regulation related to health and sanitation, transportation or traffic control, solid or hazardous waste, or pollution and noise control; (b) require that a HBB be compatible with the residential use of the property where the business is located; (c) require that a HBB be secondary to the use of the property as a residential dwelling; and (d) limit or prohibit the operation of a HBB that sells alcohol or illegal drugs, is a structure sober living home, or is a sexually oriented business; (5) provides that a person is not prohibited from enforcing a rule or deed restriction imposed by a homeowners’ association or by other private agreement; and (6) provides that a municipality is not prohibited from adopting or enforcing an ordinance regulating the operation of a short-term rental unit.” Staff and the City Attorney’s office recommend amendments to Appendix A of the Code of Ordinances of the City of The Colony, Texas. PROPOSED AMENDMENTS Appendix A, will contain the following amendments and additions Section 10-200 SF D TH M1 M2 M3 M4 MH PD A P O1 O2 NS SC GR LC HC I BP 14 No- Impact Home- Based Business N N N N N S N N N N N “Section 10-300- Definitions “(223) No-Impact Home-Based Business: Means a home-based business that; (1) has, at any time, a combined total of employees, clients, and patrons on the property that does not exceed the City’s adopted occupancy limit; (2) does not generate on-street parking or a substantial increase in local traffic; and (3) conducts all activity so that it is not visible from any street. The term “home-based business” means a business that is: (A) operated from a residential property; (B) by the owner or tenant of that property; and (C) engaged in the lawful manufacture, provision, or sale of goods or services.” And “10-1386. No-Impact Home-Based Business. 35 3 A no-impact home-based business is a permitted accessory use in any dwelling unit in all zoning districts and does not require any license, permit, or rezoning from the City provided the following: (1) Must comply with all applicable building, fire, health, sanitation, noise, traffic, solid - or hazardous-waste, and pollution regulations adopted by the City, State, or Federal government. (2) Must remain secondary and clearly compatible with the residential character of the dwelling. (3) The City may limit or prohibit a home-based business that sells alcohol or illegal drugs; operates as a structured sober-living home; or meets the definition of a “sexually oriented business” as defined in section 243.002 of the Texas Local Government Code, and Article XII of The Colony Code of Ordinances. (4) The City shall not require installation of a fire-sprinkler system for a home-based business located in (i) a single-family detached residence or (ii) a multi-family structure with no more than two dwelling units. (5) If a proposed home-based business fails any element of the “no-impact” definition, the operator must obtain an Administrative Use Permit. The Director may impose reasonable conditions (hours of operation, parking management plans, etc.) consistent with section 229.902(c) of the Texas Local Government Code, as amended. (6) Nothing in this section alters or supersedes homeowners-association covenants or other private deed restrictions.” NOTIFICATION The Zoning Ordinance requires newspaper notification a minimum of fifteen (15) days prior to the City Council meeting for text amendments. Notice for this Public Hearing was published in The Dallas Morning News on August 15, 2025. No comments, either for or against the text amendment, were received as of the printing of this packet. ATTACHMENTS 1. Proposed Ordinance 36 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2025-_____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING APPENDIX A, SECTION 10 OF THE CODE OF ORDINANCES OF THE CITY OF THE COLONY, TEXAS, BY AMENDING SECTION 10-100, ENTITLED "SCHEDULE OF USES BY DISTRICT,” BY REMOVING “HOME OCCUPATION” AND REPLACING IT WITH A NEW LAND USE ENTITLED “NO-IMPACT HOME-BASED BUSINESS”; AMENDING APPENDIX A, SECTION 10-300, ENTITLED “DEFINITIONS AND EXPLANATIONS APPLICABLE TO USE SCHEDULE” BY REMOVING SUBSECTION (14), DEFINITION FOR “HOME OCCUPATION” AND ADDING A NEW DEFINITION ENTITLED “NO-IMPACT HOME-BASED BUSINESS”; AND AMENDING APPENDIX A BY ADDING A NEW SECTION 10-1386, ENTITLED “HOME-BASED BUSINESS REGULATIONS”; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, HB 2464 (2025) added Section 229.902 of the Texas Local Government Code and pre-empts certain municipal regulations of home-based businesses; and WHEREAS, the City Council of the City of The Colony, Texas, is of the opinion that Appendix A, Section 10 should be amended by amending Section 10-100, entitled “Schedule of Uses by District” by removing “home occupation” from the schedule of uses and replacing it with a new land use entitled “No-Impact Home Based Business”; and WHEREAS, the City Council of the City of The Colony, Texas, is of the opinion that Appendix A, Section 10 should be amended by amending Section 10-300, entitled “Definitions and explanations applicable to use schedule” by removing the definition of “(14) home occupation” and adding a new definition entitled “(223) No-Impact Home-Based Business”; and WHEREAS, the City Council of the City of The Colony, Texas, is of the opinion that Appendix A, Section 10 should be amended by adding a new Section 10-1386 by establishing home-based business regulations. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. That the Code of Ordinances of the City of The Colony, Texas, be, and the same is, hereby amended by amending Appendix A, Section 10-100 entitled “Schedule of Uses by District” by amending or adding uses for home-based business as attached hereto as Exhibit A, and is incorporated herein for all purposes, and removing subsection (14) entitled “home 37 occupation” from the Schedule of Uses by District. SECTION 3. That the Code of Ordinances of the City of The Colony, Texas, be, and the same is, hereby amended by amending Appendix A, Section 10-300 entitled “Definitions and explanations applicable to use schedule,” by removing subsection (14) “Home Occupation”; and adding a new definition to the land use entitled “(223) No-Impact Home-Based Business” which shall read as follows: “(223) No-Impact Home-Based Business: Means a home-based business that; (1) has, at any time, a combined total of employees, clients, and patrons on the property that does not exceed the City’s adopted occupancy limit; (2) does not generate on-street parking or a substantial increase in local traffic; and (3) conducts all activity so that it is not visible from any street. The term “home-based business” means a business that is: (A) operated from a residential property; (B) by the owner or tenant of that property; and (C) engaged in the lawful manufacture, provision, or sale of goods or services.” SECTION 4. That the Code of Ordinances of the City of The Colony, Texas, be, and the same is, hereby adding Appendix A, Section 10-1386 entitled “Home-based Business regulations,” which shall read as follows: “10-1386. No-Impact Home-Based Business. A no-impact home-based business is a permitted accessory use in any dwelling unit in all zoning districts and does not require any license, permit, or rezoning from the City provided the following: (1) Must comply with all applicable building, fire, health, sanitation, noise, traffic, solid- or hazardous-waste, and pollution regulations adopted by the City, State, or Federal government. (2) Must remain secondary and clearly compatible with the residential character of the dwelling. (3) The City may limit or prohibit a home-based business that sells alcohol or illegal drugs; operates as a structured sober-living home; or meets the definition of a “sexually oriented business” as defined in section 243.002 of the Texas Local Government Code, and Article XII of The Colony Code of Ordinances. (4) The City shall not require installation of a fire-sprinkler system for a home-based business located in (i) a single-family detached residence or (ii) a multi-family structure with no more than two dwelling units. (5) If a proposed home-based business fails any element of the “no-impact” definition, the operator must obtain an Administrative Use Permit. The Director may impose reasonable conditions (hours of operation, parking management plans, etc.) consistent with section 229.902(c) of the Texas Local Government Code, as amended. 38 (6) Nothing in this section alters or supersedes homeowners-association covenants or other private deed restrictions.” SECTION 4. If any section, article paragraph, sentence, clause, phrase or word in this Ordinance, or application thereto any persons or circumstances is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the City Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. Any person, firm, or corporation violating any of the provisions of this Ordinance shall be deemed guilty of a misdemeanor and, upon conviction in the municipal court of the City of The Colony, Texas, shall be punished by a fine not to exceed the sum of Two Thousand Dollars ($2,000.00) for each offense. Every day a violation occurs shall constitute a separate offense. SECTION 6. This Ordinance shall become effective immediately upon its passage and publication as required by law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS THE 2nd DAY OF SEPTEMBER 2025. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 39 Exhibit A [Use Chart] SF D TH M1 M2 M3 M4 MH PD A P O1 O2 NS SC GR LC HC I BP 14 No- Impact Home- Based Business N N N N N S N N N N N 40 Agenda Item No: 5.2 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: Planning Item Type: Discussion Agenda Section: regular agenda items Suggested Action: Conduct a public hearing, discuss, and consider an ordinance regarding amendments to Appendix A, Section 24 of the Comprehensive Zoning Code of the City of The Colony, Texas, entitled "Amendments" subsection 24-101(g) to address notice requirements for public hearing. (Williams) Background: Attachments: SI25-0003 CC Staff Report Ordinance amendment- zoning notification.doc Ord. 2025-xxxx Zoning Amendment-Notification of Public Meetings.docx 41 1 CITY COUNCIL REPORT AGENDA DATE: September 2, 2025 DEPARTMENT: Planning and Development Department SUBJECT: SI25-0003 Notices for Public Hearing- Zoning Text Amendment Conduct a public hearing, discuss, and consider an ordinance regarding amendments to Appendix A, Section 24 of the Comprehensive Zoning Code of the city of The Colony, Texas, entitled "Amendments" subsection 24-101(g) to address notice requirements for public hearing. BACKGROUND In the 2025 Texas Legislative Session, the Texas Legislature approved H.B. 24, an act relating to the authority and responsibility of a municipality to notice for zoning amendments and protests. In summary this land use bill addresses the following: 1. a protest of a proposed change to a zoning regulation or district boundary must be written and signed by the owners of: (a) at least 20 percent of the area of the lots or land covered by the proposed change; (b) except as provided by (c), below, at least 20 percent of the area of the lots or land immediately adjoining the area covered by the proposed change and extending 200 feet from that area; or (c) at least 60 percent of the area of the lots or land immediately adjoining the area covered by the proposed change and extending 200 feet from that area if the proposed change: (i) has the effect of allowing more residential development than the existing zoning regulation or district boundary; and (ii) does not have the effect of allowing additional commercial or industrial uses, unless the additional use is limited to the first floor of any residential development and does not exceed 35 percent of the overall development; 2. in computing the percentage of land under Number 1, above: (a) the area of streets and alleys shall be included; and (b) the land area is not calculated individually for each tract of land subject to the proposed change but in the aggregate for all tracts of land subject to the change; 3. for a proposed change to a zoning regulation or district boundary that is protested under Number 1, above, the proposed change must receive, in order to take effect, the affirmative vote of at least: (a) three-fourths of all members of the governing body for a protest described by Number 1(a) or (b), above; or (b) a majority of all members of the governing body for a protest described by Number 1(c), above; 4. for a proposed zoning change, before the 15th day before the date of a required public hearing, notice of the time and place of the public hearing must be published: (a) in an official newspaper or a newspaper of general circulation in the city; and (b) on the city’s internet website, if the city maintains one; 42 2 5. the term “proposed comprehensive zoning change” means a city proposal to: (a) change an existing zoning regulation that: (i) will have the effect of allowing more residential development than previously; and (ii) will apply uniformly to each parcel in one or more zoning districts; (b) adopt a new zoning code or zoning map that will apply to the entire city; or (c) adopt a zoning overlay district that: (i) will have the effect of allowing more residential development than previously; and (ii) will include an area along a major roadway, highway, or transit corridor; 6. only certain statutory notice provisions are required for a proposed comprehensive zoning change; 7. a zoning change that has the effect of making residential development less restrictive than the previous regulation is conclusively presumed valid and to have occurred in accordance with all applicable statutes and ordinances if an action to annul or invalidate the change has not been filed before the 60th day after the effective date of the change; and 8. for a proposed change in zoning classification that does not apply to the whole city: (a) the zoning commission of a home-rule city shall post a notice sign not later than the 10th day before the date the zoning commission holds a hearing on a proposed change until the date of a final determination on the proposed change by the city’s governing body; (b) the sign must be at least 24 inches long by 48 inches wide and located either on: (i) the property affected by the change; or (ii) a public right-of-way for a change initiated by the city that affects multiple properties; and (c) the zoning commission may elect to provide, maintain, and pay for a notice sign under this section or require an applicant for a change in zoning classification to provide, maintain, and pay for the sign. Staff and the City Attorney’s office recommend amendments to Appendix A of the Code of Ordinances of the City of The Colony, Texas. PROPOSED AMENDMENTS Appendix A, will contain the following amendments and additions “24-101. Procedure (g) Upon filing an application for an amendment or change in the comprehensive plan, the zoning ordinance, zoning districts and specific use permits, notification sign(s) will be erected on said property. The following conditions pertain to the erection of said sign(s): (1) The applicant shall erect one sign for each 400 feet of street frontage of the property, with a minimum of two signs on each street frontage, except that no applicant is required to erect more than 8 signs. If the property does not have street frontage, the signs shall be placed upon the closest available right-of-way and upon the property itself. The applicant shall erect the signs: (A) Not later than the 10th day before the date the zoning commission holds a hearing on a proposed change in zoning classification that does not apply to the whole municipality and until the date of a final determination on the 43 3 proposed change by the governing body of the municipality, the zoning commission shall post a notice sign in accordance with this section on: (1) the property affected by the change; or (2) a public right-of-way for a change initiated by the municipality that affects multiple properties. (B) The notice sign must be at least 24 inches long by 48 inches wide. (C) The zoning commission may elect to provide, maintain, and pay for a notice sign under this section or require an applicant for a change in zoning classification to provide, maintain, and pay for the sign. (D) Notice requirements prescribed under this section are in addition to notice required by Section 211.007 of the Texas Local Government Code, as amended. (2) Said sign(s) will be provided by the planning department to the applicant at the time of application submittal. A $150.00 security deposit is required at the time of application. The deposit shall be refunded to the applicant if the signs are returned to the planning department no later than five working days after final action has been taken by the city council. (3) The planning and zoning commission shall make a determination, based upon evidence presented at the public hearing, as to whether the intent of this ordinance has been met and the applicant has made a good faith effort to erect and maintain the signs. In the event the applicant fails to erect and maintain said signs in accordance with the provisions of this ordinance, the public hearing before the planning and zoning commission may be postponed to a future date so as to allow time for compliance.” NOTIFICATION The Zoning Ordinance requires newspaper notification a minimum of fifteen (15) days prior to the City Council meeting for text amendments. Notice for this Public Hearing was published in The Dallas Morning News on August 15, 2025. No comments, either for or against the text amendment, were received as of the printing of this packet. 44 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2025 -_____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING APPENDIX A, SECTION 24 OF THE COMPREHENSIVE ZONING CODE OF THE CITY OF THE COLONY, TEXAS, ENTITLED “AMENDMENTS” BY AMENDING SUBSECTION 24-101(G) TO ADDRESS NOTICE REQUIREMENTS FOR PUBLIC HEARINGS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, in the 2025 Texas legislative session, the Texas Legislature approved H.B. 24 (2025), which amended Chapter 211 of the Texas Local Government Code to address notice requirements for certain zoning changes in home-rule municipalities; and WHEREAS, the City Council of the City of The Colony, Texas, has determined that the following regulation is necessary in order to protect public health, safety, and welfare. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. That Appendix A, Section 24 of the Comprehensive Zoning Code of the City of The Colony, Texas, entitled “Amendments,” is hereby amended by amending subsection (g) which shall read as follows: “24-101. Procedure (g) Upon filing an application for an amendment or change in the comprehensive plan, the zoning ordinance, zoning districts and specific use permits, notification sign(s) will be erected on said property. The following conditions pertain to the erection of said sign(s): (1) The applicant shall erect one sign for each 400 feet of street frontage of the property, with a minimum of two signs on each street frontage, except that no applicant is required to erect more than 8 signs. If the property does not have street frontage, the signs shall be placed upon the closest available right-of-way and upon the property itself. The applicant shall erect the signs: (A) Not later than the 10th day before the date the zoning commission holds a hearing on a proposed change in zoning classification that does not apply to the whole municipality and until the date of a final determination on the proposed change by the governing body of the municipality, the zoning commission shall post a notice sign in accordance with this section on: 45 (1) the property affected by the change; or (2) a public right-of-way for a change initiated by the municipality that affects multiple properties. (B) The notice sign must be at least 24 inches long by 48 inches wide. (C) The zoning commission may elect to provide, maintain, and pay for a notice sign under this section or require an applicant for a change in zoning classification to provide, maintain, and pay for the sign. (D) Notice requirements prescribed under this section are in addition to notice required by Section 211.007 of the Texas Local Government Code, as amended. (2) Said sign(s) will be provided by the planning department to the applicant at the time of application submittal. A $150.00 security deposit is required at the time of application. The deposit shall be refunded to the applicant if the signs are returned to the planning department no later than five working days after final action has been taken by the city council. (3) The planning and zoning commission shall make a determination, based upon evidence presented at the public hearing, as to whether the intent of this ordinance has been met and the applicant has made a good faith effort to erect and maintain the signs. In the event the applicant fails to erect and maintain said signs in accordance with the provisions of this ordinance, the public hearing before the planning and zoning commission may be postponed to a future date so as to allow time for compliance.” SECTION 3. It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs and sections of this Ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation of this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 4. Any provision of any prior ordinance of the City whether codified or uncodified, which are in conflict with any provision of this Ordinance, are hereby repealed to the extent of the conflict, but all other provisions of the ordinances of the City whether codified or uncodified, which are not in conflict with the provisions of this Ordinance, shall remain in full force and effect. SECTION 5. This Ordinance shall become effective upon its passage. 46 PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS THE 2nd DAY OF SEPTEMBER 2025. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 47 Agenda Item No: 5.3 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: Planning Item Type: Discussion Agenda Section: regular agenda items Suggested Action: Conduct a public hearing, discuss, and consider an ordinance regarding amendments to Appendix B of the Code of Ordinances of the City of The Colony entitled "Subdivision Ordinance," by adding a new section 8.5 entitled "Vacating Plat" and by establishing the requirements for vacating a plat. (Williams) Background: Attachments: SI25-0007 CC Staff Report Ordinance amendment- Plat Vaction.doc Ord. 2025-xxxx Subdivision Ordinance Amendment-Vacating Plat.docx 48 1 CITY COUNCIL REPORT AGENDA DATE: September 2, 2025 DEPARTMENT: Planning and Development Department SUBJECT: SI25-0007 Vacate Plat- Zoning Text Amendment Conduct a public hearing, discuss, and consider an ordinance regarding amendments to Appendix B of the Code of Ordinances of the city of The Colony entitled "Subdivision Ordinance," by adding a new section 8.5 entitled "Vacating Plat" and by establishing the requirements for vacating a plat. BACKGROUND Section 212.013 of the Texas Local Government Code provides the authority for the City of The Colony, Texas, to vacate a plat and reads as follows: Sec. 212.013. VACATING PLAT. (a) The proprietors of the tract covered by a plat may vacate the plat at any time before any lot in the plat is sold. The plat is vacated when a signed, acknowledged instrument declaring the plat vacated is approved and recorded in the manner prescribed for the original plat. (b) If lots in the plat have been sold, the plat, or any part of the plat, may be vacated on the application of all the owners of lots in the plat with approval obtained in the manner prescribed for the original plat. (c) The county clerk shall write legibly on the vacated plat the word "Vacated" and shall enter on the plat a reference to the volume and page at which the vacating instrument is recorded. (d) On the execution and recording of the vacating instrument, the vacated plat has no effect. PROPOSED AMENDMENTS Appendix B, will contain the following amendments and additions “Sec. 8.5. Vacating Plat. (a) The owners of the tract covered by a plat may vacate the plat at any time before any lot in the plat is sold. The plat is vacated when a signed, acknowledged instrument declaring the plat vacated is approved and recorded in the manner prescribed for the original plat. (b) If lots in the plat have been sold, the plat, or any part of the plat, may be vacated on the application of all the owners of lots in the plat with approval obtained in the manner prescribed for the original plat. (c) The county clerk shall write legibly on the vacated plat the word “Vacated” and shall enter on the plat a reference to the volume and page at which the vacating instrument is recorded. (d) On the execution and recording of the vacating instrument, the vacated plat has no effect. 49 2 (e) The vacating plat shall be considered, approved and/or recorded in the same manner prescribed for the original plat.” NOTIFICATION The Zoning Ordinance requires newspaper notification a minimum of fifteen (15) days prior to the City Council meeting for text amendments. Notice for this Public Hearing was published in The Dallas Morning News on August 15, 2025. No comments, either for or against the text amendment, were received as of the printing of this packet. ATTACHMENTS 1. Proposed Ordinance 50 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2025 - ____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING APPENDIX B OF THE CODE OF ORDINANCES ENTITLED “SUBDIVISION ORDINANCE,” BY ADDING A NEW SECTION 8.5 ENTITLED “VACATING PLAT” BY ESTABLISHING THE REQUIREMENTS FOR VACATING A PLAT; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A PENALTY OF A FINE NOT TO EXCEED TWO THOUSAND DOLLARS ($2,000) FOR EACH AND EVERY OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Section 212.013 of the Texas Local Government Code provides the authority for the City of The Colony, Texas, to vacate a plat and reads as follows: Sec. 212.013. VACATING PLAT. (a) The proprietors of the tract covered by a plat may vacate the plat at any time before any lot in the plat is sold. The plat is vacated when a signed, acknowledged instrument declaring the plat vacated is approved and recorded in the manner prescribed for the original plat. (b) If lots in the plat have been sold, the plat, or any part of the plat, may be vacated on the application of all the owners of lots in the plat with approval obtained in the manner prescribed for the original plat. (c) The county clerk shall write legibly on the vacated plat the word "Vacated" and shall enter on the plat a reference to the volume and page at which the vacating instrument is recorded. (d) On the execution and recording of the vacating instrument, the vacated plat has no effect. WHEREAS, the City Council of the City of The Colony, Texas, has determined that the following regulation is necessary in order to protect public health, safety, and welfare and is consistent with Section 212.013 of the Texas Local Government Code. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. That Appendix B, of the Code of Ordinances of the City of The Colony, Texas, entitled “Subdivision Ordinance,” is hereby amended by adding a new Section 8.5, entitled “Vacating Plat” which shall read as follows: 51 Page 2 “Sec. 8.5. Vacating Plat. (a) The owners of the tract covered by a plat may vacate the plat at any time before any lot in the plat is sold. The plat is vacated when a signed, acknowledged instrument declaring the plat vacated is approved and recorded in the manner prescribed for the original plat. (b) If lots in the plat have been sold, the plat, or any part of the plat, may be vacated on the application of all the owners of lots in the plat with approval obtained in the manner prescribed for the original plat. (c) The county clerk shall write legibly on the vacated plat the word “Vacated” and shall enter on the plat a reference to the volume and page at which the vacating instrument is recorded. (d) On the execution and recording of the vacating instrument, the vacated plat has no effect. (e) The vacating plat shall be considered, approved and/or recorded in the same manner prescribed for the original plat.” SECTION 3. It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs and sections of this Ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation of this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 4. Any provision of any prior ordinance of the City whether codified or uncodified, which are in conflict with any provision of this Ordinance, are hereby repealed to the extent of the conflict, but all other provisions of the ordinances of the City whether codified or uncodified, which are not in conflict with the provisions of this Ordinance, shall remain in full force and effect. SECTION 5. Any person, firm, or corporation violating any of the provisions of this Ordinance shall be deemed guilty of a misdemeanor and, upon conviction in the municipal court of the City of The Colony, Texas, shall be punished by a fine not to exceed the sum of Two Thousand Dollars ($2,000.00) for each offense. Every day a violation occurs shall constitute a separate offense. SECTION 6. This Ordinance shall become effective immediately upon its passage and publication as required by law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS THE 2nd DAY OF SEPTEMBER 2025. 52 Page 3 Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 53 Agenda Item No: 5.4 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Resolution Agenda Section: regular agenda items Suggested Action: Discuss and consider approving a resolution authorizing the City Manager to execute a contract for services with SPAN Inc. for purposes of providing nutrition, transportation, and social services to residents of The Colony. (Perez) Background: Attachments: SPAN FY26 The Colony Presentation.pptx 2025-26 SPAN contract agenda narrative.docx FY 2026 The Colony Final Draft.docx Res 2025-xxx SPAN Service Contract.doc 54 Span, Inc. is a nonprofit established in 1974 that enables people in Denton County to live as fully and independently as possible by providing nutrition and transportation to seniors, people with disabilities, veterans, and other members of the public. THE COLONY FY 2026 PRESENTATION 55 WHO IS SPAN/MEALS ON WHEELS? Span, Inc has been serving the Denton County residents for 50 years! We have enabled people in our county, to live as fully and independently as possible by consistently providing nutritious meals, reliable and safe transportation to our vulnerable seniors, people with disabilities, honored veterans, and other members of the public. 56 164,000 Meals delivered in Denton County last year 9682 Meals served to The Colony Residents last year 1547 Meals on Wheels clients served in Denton County All clients receive 5 hot meals per week through home delivery and at various senior centers and senior living apartments throughout Denton County. 57 MEALS ON WHEELS TEAM Our Site Managers are our direct link to the community. They provide the following for our volunteers: -Scheduling -Training -Support 58 SENIOR PAWS Through our Senior Paws program, we deliver pet food once a month to homebound clients who might otherwise share their home-delivered meals with their pets. We also provide much needed veterinarian care due to a grant that we received. Senior Paws depends on donations fr om the community. 59 CITY SUPPORT FOR MEALS ON WHEELS FY 2026 request for City Support for Meals-on-Wheels: $31,569 Discretionary Fund Request / SPAN Su pport: $2,500 60 Span Transportation is a demand response program that provides shared ride services to Denton County residents. Because of city contributions, we are able to provide low-cost fares to riders over the age of 60 and people with disabilities, going anywhere in Denton County. Each one-way trip is $3.00 61 FY 2026 APPROVED TRIP PURPOSES: •Non-emergency medical trips •Shopping for Necessities •Seniors in Motion •Employment •Life Skills Programs •Nutrition •Public Libraries •Education •Recreation 62 YTD FY25 Trip County By Purpose 63 OUR TRANSPORTATION TEAM DRIVERS •Trained, Credentialed, and Fully Vetted •Represented on the Span Safety Committee •Mission Minded •Developing Professional Relationships DISPATCH •Trained, Credentialed, and Fully Vetted •Represented on the Span Safety Committee •Mission Minded •Developing Professional Relationships SCHEDULING •Software Assisted Route Scheduling •Ensure Service Quality and Efficiency •Maximize Rider Access to Trips •Applied Route and Driving Experience 64 POLICIES AND PROCEDURES 2026 Reservation Window •Updated from 1 – 14 days to 2 – 14 days •Increase the number of people we can serve •More efficient Schedules Helpful Information •Updated for new and existing riders •Based on Frequent Rider Questions •Input from Staff 65 •Thirty-Four Fully ADA Compliant Vehicles (35) •Professional Preventative Maintenance and Repair Staff •Utilize a Software Maintenance Module to track PM and repairs. •Vehicles Maintained in State of Good Repair (SGR) •Audited by TxDOT, NCTCOG, and DPS •Eight (8) new Mini-Buses Delivered in August 2023, Two new mini-buses December 2024 and more on the way. •All Vehicles Stored and Maintained at Secure Centralized Facility OUR FLEET 66 In FY 2026, October 2025 through June 2026, the projected trip count is 5,154 50 FY 2025 Unduplicated Riders: 50 $21.96 The rate is $21.96 per one- way trip 430 The projected monthly trip count is 430 in FY 2026. $113,181 The October 1, 2025 – September 30, 2026 Budget Request for Local Contribution is $113,181. TOWN SUPPORT 5,154 67 Questions/Contact span@span-transit.org (940) 382-2224 https://span-transit.org/ 1800 Malone St. Denton, TX 76201 68 This item is to consider adopting the proposed 2025-26 SPAN service contract. This is the tenth service contract brought before Council to consider between The Colony and SPAN. The funding requests proposed in the 2025-26 contract are for items funded in previous contracts that are unique to The Colony’s service contract with SPAN. Program areas include on demand transportation services, senior center trip reimbursements, meals on wheels programming and a discretionary/unforeseen costs for SPAN’s service delivery not to exceed $2,500. This section of the contract covers discretionary/unforeseen costs for SPAN’s service delivery (with prior CM office staff approval) to residents of The Colony as well as to cover costs associated with Next Steps and/or for residents who do not otherwise qualify for a reduced or covered trip because of a Federal or State mandate within the contract year. Overall, the proposed 25/26 service agreement is $21,038 more than the 24/25 contract. The on demand transportation services and Meals on Wheels program funding request for the 25/26 service contract are the only two program areas in the contract to have an increase from the previous year’s contract with increases of $9,969 and $11,569 respectively. All of other program areas within the contract are remaining flat compared to the previous year’s contract. As was the case in the 24/25 contract, the increase to the Meals on Wheels funding in the 25/26 contract is in anticipation of increased demand for meals and meal delivery to residents of The Colony. Over the past three contracts there has been a steady increase in overall demand for, and in price of meals going from $1.00 to $2.00 in the 23/24 contract with demand expected to continue to increase beyond the 25/26 contract period. With that said, the total funding request for the 25-26 contract is $154,750.00 69 SERVICE AGREEMENT STATE OF TEXAS § COUNTY OF DENTON § SERVICE AGREEMENT THIS SERVICE AGREEMENT ("Agreement") is entered into by and between the CITY OF THE COLONY, TEXAS ("CITY"), acting by and through its duly authorized designee, and SPAN, INC., a Texas non-profit corporation ("SPAN”), operating in Denton County, Texas as an organization described in Section 501(c)(3) of the Internal Revenue Code, acting by and through its duly authorized Executive Director. The CITY or SPAN may hereinafter be referred to individually as a “Party” or collectively as “Parties.” RECITALS: WHEREAS, SPAN enables people to live as fully and independently as possible by providing nutrition, transportation and social services to older persons, persons with disabilities, veterans, and the general public; and WHEREAS, the success of or failure of the SPAN's purposes and goals has a relation to the health and welfare of the citizens of the CITY; and WHEREAS, the CITY is charged with the responsibility of promoting and preserving the health, safety, peace, good government, and welfare of its citizens; and WHEREAS, the CITY recognizes that it needs transportation alternatives for its elderly, and disabled citizens to seek routine medical care and to deal with daily routine matters, and the CITY desires to assist and provide public transportation to said citizens; and WHEREAS, CITY desires to engage SPAN as an independent contractor, and not as a joint venture, partnership, or employee, to provide the transportation services described herein; and WHEREAS, SPAN is recognized as a non-profit corporation, authorized under the Texas Transportation Code to provide this type of transportation to municipalities found in whole or in part within Denton County, Texas; and WHEREAS, SPAN desires to provide transportability services for CITY on the terms and conditions set forth in this Agreement. 70 SERVICE AGREEMENT NOW THEREFORE, in exchange for the mutual covenants set forth herein, and other valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties agree as follows: Article I Term 1.01. This Agreement shall commence on October 1, 2025 ("Effective Date") and continue until September 30, 2026. 1.02. Either Party may terminate this Agreement by giving thirty (30) days prior written notice to the other Party, subject to federal requirements related to public transportation. Article II Service 2.01. 2.01. In accordance with this Agreement, SPAN shall provide door-to-door demand response transit services to the CITY’s residents who are sixty (60) years of age or older and persons with documented disabilities or sixty-five (65) years or older and persons with documented disabilities when 5310 funds are used in support of this Agreement ("Riders"). 2.02. Riders shall be picked up within service area and taken anywhere in the SPAN/CITY transit service destination area shown on Exhibit "A" hereto (“Service Area”), at a cost to the Riders of Three Dollars ($3.00). The Riders shall remit the total fare recited in this sectio n at or prior to the time the service is rendered. SPAN Transportation policy and procedures are attached hereto and incorporated herein as Exhibit "B" ("the Policy"). 2.03. Situations may arise when Riders call and request service that is not identified as a part of the Service Area. SPAN may make a request to the CITY’s appointed representative to accommodate the Rider by temporarily transporting outside of the Service Area. The Service Area may be more permanently amended at the request of either Party, if both Parties mutually agree to such amendment of Exhibit A in writing. 2.04. Riders may call at least two (2) days in advance, but no more than two (2) weeks in advance, to set up appointments for pick-up and drop off. Riders may schedule a ride by calling SPAN'S Transportation Office at 940-382-1900, weekdays between the hours of 8:00 a.m. and 2:00 p.m. 2.05. Demand response transit service is available between the hours of 6:00 a.m. and 6:00 p.m., Monday through Friday, excluding Saturday, Sunday, major holidays and subject to capacity constraints and availability. 71 SERVICE AGREEMENT Article III Schedule of Work 3.01. SPAN shall provide all equipment, facilities, qualified employees, training, and insurance necessary to establish a demand response transit service for the Riders. SPAN shall further establish, operate, and maintain an accounting system for this program that will allow for a tracking of services provided to Riders and a review of the financial status of the program. SPAN shall also track and break down the information regarding the number of one-way trips it provides to Riders. 3.02. SPAN will be responsible for verifying and documenting the eligibility of Riders. SPAN reserves the right to determine on an individual basis whether SPAN has the capability to safely transport a Rider, based on the information provided. If SPAN determines that a Rider cannot safely be transported, SPAN shall decline transportation and shall provide documentation as to the reason why service was declined. 3.03. The CITY shall have the right to review the activities and financial records kept incident to the services provided to the Riders by SPAN under this Agreement. In addition, SPAN shall provide monthly ridership information to the CITY appointed designee specifically identifying the number of Rider trips including rider origination, destination, and purpose. Article IV Compensation and Method of Payment 4.01. SPAN shall seek compensation for its services from two sources: 1.) Riders – each rider shall pay SPAN a price of Three Dollars ($3.00) per one-way trip, to be collected by SPAN at the time of such trip. EXCEPTION: Riders going to The Colony Senior Center will be exempt from the $3.00 fee as it will be covered by The Colony as described in Article V 2.) CITY – the CITY agrees to pay a fee for service of Twenty-One Dollars and Ninety- Six Cents ($21.96) per one-way trip. SPAN will invoice the CITY monthly based on actual rides performed. The city’s projected trip count for October 1, 2024 – September 30, 2025, is Five thousand one hundred fifty-four (5,154) one-way trips. Based on this estimate, the total fee for service for FY26 will be $113,181. However, this amount is only an estimate; the actual fee for service will be based on the number of actual rides performed. 72 SERVICE AGREEMENT 4.02. In no event shall the CITY be invoiced more than One Hundred Thirteen Thousand One Hundred Eighty-One Dollars ($113,181.00) for the term of this Agreement. In the event that actual ridership exceeds the projected estimate, SPAN shall notify the CITY and no additional billing shall occur unless the Agreement is amended in writing by both Parties. 4.03. If an otherwise eligible Rider contacts SPAN for service and the Rider’s trip does not qualify for payment by the CITY under this Agreement and/or there are no remaining trips or funding available under this Agreement for such trip, SPAN may offer its service to such Rider in the Service Area at the total cost of Twenty One Dollars and Ninety Six Cents ($24.96) per one- way trip, which is to be collected by SPAN at the time of such trip. Article V Senior Fare Reimbursement 5.01. The CITY hereby agrees to pay an amount not to exceed Seven Thousand Five Hundred Dollars ($7,500.00) as reimbursement for CITY residents’ transportation/fares to and from the Senior Center. This amount is based on Two Thousand Five Hundred (2,500) fares at a cost of Three Dollars ($3.00) per trip. 5.02. Reimbursement of Senior Center fares shall be processed twice a year: SPAN will invoice the CITY in May 2026 for rides/trip counts for October 2025- March 2026. SPAN will invoice the CITY in October 2026 for rides/trip counts for April 2026- September 2026. Article VI Meal Reimbursement for Congregate and Home Delivered 6.01. SPAN provides Federal Administration on Aging Title III food and educational nutrition programs by serving meals at senior centers (congregate meals) and delivering meals to homebound seniors. SPAN agrees to provide such services to eligible CITY residents. 6.02. For the operation and provision of the services described in this Article VI, the CITY shall pay SPAN the sum of Thirty One Thousand Five Hundred and Sixty Nine Dollars ($31,569) upon execution of this Agreement. Article VII Discretionary Funds and Next Steps Program 7.01. For the operation and provision of the services described in subsections (a) and (b) of this Article VII, the CITY shall make available to SPAN a sum not to exceed Two Thousand Five Hundred Dollars ($2,500.00) upon execution of this Agreement. 73 SERVICE AGREEMENT (a) Reimbursement for transportation/fares for clients who are participating in The Colony Next Steps 501(c)(3). (b) Per authorization of CITY Manager or other CITY designee, reimbursement for discretionary costs associated with the delivery of SPAN’s services in general, as well as for residents of The Colony who otherwise do not qualify for SPAN’s services due to federal or state funding regulations and guidelines. Article VIII Devotion of Time, Personnel, and Equipment 8.01. SPAN shall devote such time as reasonably necessary for the satisfactory performance of the services under this Agreement. Should CITY require additional services not included under this Agreement, SPAN shall make reasonable effort to provide such additional services within the time schedule without decreasing the effectiveness of the performance of services required under this Agreement and shall be compensated for such additional services on a time and materials basis, in accordance with SPAN' s standard hourly rate schedule, or as otherwise agreed between the Parties. 8.02. To the extent reasonably necessary for SPAN to perform the services under this Agreement, SPAN shall be authorized to engage the services of any agents, assistants, persons, or corporations that SPAN may deem proper to aid or assist in the performance of the services under this Agreement. The cost of such personnel and assistance shall be included as part of the total compensation to be paid SPAN hereunder and shall not otherwise be reimbursed by CITY unless otherwise agreed to in writing. 8.03. The CITY shall not be required to furnish any facilities, equipment, or personnel necessary to perform the services required under this Agreement unless otherwise provided herein. The Services provided under this Agreement are based on availability. 8.04 SPAN reserves the right to suspend or terminate Riders who violate SPAN’s policies and procedures. Article IX Miscellaneous 9.01. Entire Agreement. This Agreement constitutes the sole and only agreement between the Parties and supersedes any prior understandings written or oral agreements between the Parties with respect to this subject matter. 9.02. Assignment. Neither Party may assign this Agreement without the prior written consent of the other Party. 9.03. Successor and Assigns. Subject to the provisions regarding assignment, this 74 SERVICE AGREEMENT Agreement shall be binding on and inure to the benefit of the Parties to it and their respective heirs, executors, administrators, legal representatives, successors, and assigns. 9.04. Mediation. In the event of any dispute regarding this Agreement or the terms contained herein, the Parties hereto agree that they shall submit such dispute to non-binding mediation, prior to any litigation being filed. 9.05. Governing Law. The laws of the State of Texas shall govern this Agreement without regard to any conflict of law rules; and venue for any action concerning this Agreement shall be in Denton County, Texas or the Federal courts having jurisdiction over claims arising in Denton County, Texas. The Parties agree to submit to the personal and subject matter jurisdiction of said court. 9.06. Amendments. This Agreement may be amended by the mutual written agreement of the Parties. 9.07. Severability. In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions, and the Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in it. 9.08. Independent Contractor. It is understood and agreed by and between the Parties that SPAN, in satisfying the conditions of this Agreement, is acting independently. All services to be performed by SPAN pursuant to this Agreement shall be in the capacity of an independent contractor, and not as an agent or employee of CITY. SPAN shall supervise the performance of its services and shall be entitled to control the manner and means by which its services are to be performed, subject to the terms of this Agreement. Nothing contained herein shall constitute or provide for as a waiver of the CITY’s immunity under state or federal law. 9.09. Notice. Any notice required or permitted to be delivered hereunder may be sent by electronic mail, first class mail, overnight courier or by confirmed telefax or facsimile to the address specified below, or to such other Party or address as either Party may designate in writing, and shall be deemed received three (3) days after delivery set forth herein: If intended for CITY: CITY Designee The Colony, Texas 6800 Main Street The Colony, Texas 75056 972-624-3152 If intended for SPAN: Michelle McMahon, Executive Director Span, Inc. 75 SERVICE AGREEMENT 1800 Malone Street Denton, Texas 76201 940-382-2224 - Office 9.10. Insurance. (a) SPAN shall during the term hereof maintain in full force and effect the following insurance: (1) a comprehensive commercial general liability policy of insurance for bodily injury, death, and property damage insuring against all claims, demands or actions relating to SPAN' s performance of services pursuant to this Agreement with a minimum combined single limit of not less than $1,000,000.00 per occurrence for injury to persons (including death), and for property damage with an aggregate of $2,000,000.00. (2) policy of automobile liability insurance covering any vehicles owned and/or operated by SPAN, its officers, agents, and employees, and used in the performance of this Agreement with policy limits of not less than $5,000,000.00 combined single limit and aggregate for bodily injury and property damage. (3) statutory Worker's Compensation Insurance at the statutory limits and Employers Liability covering all of SPAN' s employees involved in the provision of services under this Agreement with policy limit of not less than $500,000.00; and (b) All policies of insurance shall be endorsed and contain the following provisions: (1) provide CITY, its officers, and employees with indemnification under all applicable coverage except for Workers Compensation Insurance. (2) provide for at least thirty (30) days prior written notice to CITY for cancellation of the insurance. (3) provide for a waiver of subrogation against CITY for injuries, including death, property damage, or any other loss to the extent the same is covered by the proceeds of insurance. SPAN shall provide written notice to CITY of any material change of or to the insurance required herein. (c) All insurance companies providing the required insurance shall be authorized to transact business in Texas. (d) A certificate of insurance and copies of the policy endorsements evidencing the required insurance shall be submitted prior to commencement of services and upon request by CITY. 9.11. In performing services under this Agreement, the relationship between the CITY and SPAN is that of an independent contractor. No term or provision of this Agreement or act of SPAN in the performance of this Agreement shall be construed as making SPAN the agent, servant, or employee of the CITY. It is expressly understood that the CITY assumes no operational 76 SERVICE AGREEMENT supervision, control or oversight to the services provided under this Agreement. CITY does not have any ownership or beneficial interest in the business; and does not share any profits or losses generated from the business. 9.12. Indemnification. CITY SHALL NOT BE LIABLE FOR ANY LOSS, DAMAGE, OR INJURY OF ANY KIND OR CHARACTER TO ANY PERSON OR PROPERTY ARISING FROM THE SERVICES OF SPAN PURSUANT TO THIS AGREEMENT. SPAN HEREBY WAIVES ALL CLAIMS AGAINST CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES (COLLECTIVELY REFERRED TO IN THIS SECTION AS "CITY") FOR DAMAGE TO ANY PROPERTY OR INJURY TO, OR DEATH OF, ANY PERSON ARISING AT ANY TIME AND FROM ANY CAUSE OTHER THAN THE NEGLIGENCE OR WILLFUL MISCONDUCT OF CITY OR BREACH OF CITY’S OBLIGATIONS HEREUNDER. SPAN AGREES TO INDEMNIFY AND SAVE HARMLESS CITY FROM AND AGAINST ANY AND ALL LIABILITIES, DAMAGES, CLAIMS, SUITS, COSTS (INCLUDING COURT COSTS, REASONABLE ATTORNEYS' FEES AND COSTS OF INVESTIGATION) AND ACTIONS OF ANY KIND BY REASON OF INJURY TO OR DEATH OF ANY PERSON OR DAMAGE TO OR LOSS OF PROPERTY TO THE EXTENT CAUSED BY SPAN'S NEGLIGENT PERFORMANCE OF SERVICES UNDER THIS AGREEMENT OR BY REASON OF ANY NEGLIGENT ACT OR OMISSION ON THE PART OF SPAN, ITS OFFICERS, DIRECTORS, SERVANTS, EMPLOYEES, REPRESENTATIVES, CONSULTANTS, LICENSEES, SUCCESSORS OR PERMITTED ASSIGNS (EXCEPT WHEN SUCH LIABILITY, CLAIMS, SUITS, COSTS, INJURIES, DEATHS OR DAMAGES ARISE FROM OR ARE ATTRIBUTED TO NEGLIGENCE OF CITY, IN WHOLE OR IN PART, IN WHICH CASE SPAN SHALL INDEMNIFY CITY ONLY TO THE EXTENT OR PROPORTION OF NEGLIGENCE ATTRIBUTED TO SPAN AS DETERMINED BY A COURT OR OTHER FORUM OF COMPETENT JURISDICTION). SPAN'S OBLIGATIONS UNDER THIS SECTION SHALL NOT BE LIMITED TO THE LIMITS OF COVERAGE OF INSURANCE MAINTAINED OR REQUIRED TO BE MAINTAINED BY SPAN UNDER THIS AGREEMENT. THIS PROVISION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. 9.13. Confidentiality Clause. Subject to the requirements of the Texas Public Information Act or as required by Court order, both Parties agree to endeavor to take all reasonable measures to keep in confidence the execution, terms and conditions as well as performance of this Agreement, and the confidential data and information of any Party that another Party may know or access during performance of this Agreement (“Confidential Information”), and shall not disclose, make available or assign such Confidential Information to any third party without the prior written consent of the Party providing the information except as required by the Texas Public Information Act or Court order. 9.14. Counterparts. This Agreement may be executed by the Parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of any number of copies hereof each signed by less than all, but together signed by all the Parties hereto. 77 SERVICE AGREEMENT 9.15. Exhibits. The exhibits attached hereto are incorporated herein and made a part hereof for all purposes. 9.16. Survival of Covenants. Any of the representations, warranties, covenants, and obligations of the Parties, as well as any rights and benefits of the Parties, pertaining to a period of time following the termination of this Agreement shall survive termination. [Signature Page follows] 78 SERVICE AGREEMENT EXECUTED this ______ day of ___________________, 2025 CITY OF THE COLONY, TEXAS By: _________________________________ Troy Powell, City Manager ATTEST: By: _________________________________ Tina Stewart, Secretary EXECUTED this ______ day of ___________________, 2025 SPAN, INC By: _________________________________ Michelle McMahon, Executive Director 79 SERVICE AGREEMENT EXHIBIT A SERVICE AREA All of Denton County. 80 SERVICE AGREEMENT EXHIBIT B TRANSPORTATION POLICIES AND PROCEDURES Attached as a separate document, which may be amended from time to time. 81 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2025-_____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT FOR SERVICES BY AND BETWEEN THE CITY OF THE COLONY AND SPAN, INC.; PROVIDING AN EFFECTIVE DATE WHEREAS, That the City Council of the City of The Colony, Texas hereby authorizes the City Manager to execute a contract for services with SPAN, Inc. for the purpose of providing nutrition, transportation and social services to older persons, persons with disabilities, and veterans; and WHEREAS, with this contract, the City of The Colony is agreeing to the services not to exceed the amount of $154,750.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: Section 1. The Contract for Services, having been reviewed by the City Council of the City of The Colony, Texas, and found to be acceptable and in the best interest of the City and its citizens, be, and the same is hereby, in all things approved. Section 2. The City Manager is hereby authorized to execute the contract on behalf of the City of The Colony, Texas, with the terms and conditions as stated therein. Section 3. This Resolution shall take effect immediately from and after its adoption and it is so resolved. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 2nd DAY OF SEPTEMBER 2025. __________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ________________________________ Tina Stewart, TRMC, CMC, City Secretary 82 APPROVED AS TO FORM: __________________________________ Jeffrey L. Moore, City Attorney 83 Agenda Item No: 5.5 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: Finance Item Type: Ordinance Agenda Section: regular agenda items Suggested Action: Discuss and consider approving a resolution authorizing the City Manager to approve an amendment to the City's Finance Policy Number 100.07 - Purchasing. (Oerum) Background: This past Texas State legislative session, the Senate passed TSB 1173. SB 1173 seeks to modernize and streamline local government procurement processes in Texas by raising the monetary threshold at which competitive procurement methods are required. Specifically, it amended the Texas Education Code and Local Government Code to increase the required competitive bidding threshold from $50,000 to $100,000 for school districts and municipalities. This change means that purchases or contracts for goods and services valued below $100,000 may be executed without the need for formal competitive bidding processes, allowing for greater flexibility and faster procurement for routine or lower-cost transactions. The bill also updates requirements related to outreach to Historically Underutilized Businesses (HUBs). Currently, municipalities must contact at least two HUBs for expenditures between $3,000 and $50,000. SB 1173 raises the upper limit of this range to $100,000, ensuring that HUB outreach remains consistent with the new procurement threshold. This ensures that small and minority- owned businesses still have opportunities to participate in municipal contracts, even as formal procurement rules are eased for moderately sized expenditures. It is management’s desire to update the current purchasing policy reflect the new Legislative action. In addition, the department is adding a new contracting section to ensure that all vendors that do work for the city have a clear set of work defined and have a legal document outlines the responsibilities of the vendor and the city and sets the rules to resolve any disputes that may arise in work performed or payment. Attached to this item is a descriptive memo outlining the changes and a redline version of the edited Finance Policy to show you the proposed changes to the policy. Attachments: Memo to Council - Purchasing - Policy Change - Threshold and Contracting - SB1173.docx Finance Policy Manual_Final_Word.docx Res. 2025-xxx Adopting Revised Purchasing Policy Manual.docx 84 Memo To: Mayor and City Council From: Joe Oerum, Purchasing Manager CC: Troy Powell, City Manager Tim Miller, Asst, City Manager Date: August 22nd, 2025 RE: Finance Department Policy Update – Section 100.07 – Purchasing It is management’s desire to update the current purchasing policy reflect the new Legislative action. In addition, the department is adding a new contracting section to ensure that all vendors that do work for the city have a clear set of work defined and have a legal document outlines the responsibilities of the vendor and the city and sets the rules to resolve any disputes that may arise in work performed or payment. The proposed updates to the City of The Colony Purchasing Policy to align with recent legislative changes and strengthen contract oversight. Specifically: 1. Adopt the new formal competitive bidding threshold of $100,000 in accordance with Texas Senate Bill 1173 (raising the limit from $50,000). 2. Approve and implement the new Contract Administration section, requiring fully executed contracts for all services regardless of dollar amount, except when a service is determined to be low risk based on liability and risk tolerance considerations. This provision will establish clear scope of work, manage legal and financial exposure, and ensure compliance with applicable laws. The primary policy update reflects statutory changes enacted through SB 1173, which amended the Texas Local Government Code to increase the dollar threshold requiring formal bidding from $50,000 to $100,000. This adjustment allows municipalities to process mid-range purchases more efficiently while still ensuring competitive pricing and compliance with procurement law. In addition, the policy now includes a dedicated Contract Administration section. This provision mandates that contracts are required for all services without regard to cost; however, not all procurements will require a contract when the service is determined to be low risk. The intent is to establish clear standards of performance, manage legal and financial risks, and ensure the City’s interests are protected through proper insurance and indemnification requirements. These updates modernize the City’s purchasing processes, ensure statutory compliance, and enhance oversight of service engagements. 85 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3140 PURCHASING POLICY 86 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 Policy Number and Title: 100.07 Purchasing Policy Section and Chapter: Finance – Purchasing Policy Type: Policy with Admin Procedures Last Revision Date: 04/30/2024 Purchasing Policies, Objectives and Ethics The purpose of this policy is to establish standard practices and procedures to create an efficient and effective purchasing program for the City of The Colony. Purchasing is activity which obtains needed goods or services and replenishes supplies. Purchasing starts with some recognition of needs for goods and services. The policy and procedures governing the purchasing and accounting of the goods and services of a municipality can be numerous and often complex. The reason for this policy is to provide staff with a guide to what to do in all purchasing situations they are most likely to encounter. It is then the responsibility of the Purchasing Manager to obtain the best value for goods and services in the proper quantity, at the most economical price. This policy will point out what basic policies are best suited for the needs of the City of The Colony. From time to time, there will be changes necessary and as they occur, and updated in this manual. The policy intended to promote the best interest of the citizens of the City of The Colony. It is important to remember City purchasing operates in full view of the public. Its purpose to provide guidance and instruction for all employees new to the purchasing process, as well as a reference for staff and management. City of The Colony intends to maintain a cost-effective purchasing system conforming to good management practices. To be successful, the system must be backed by proper attitudes and cooperation of not only every department head and official, but also every supervisor and employee of the City of The Colony. The establishment and maintenance of a good purchasing system is possible only through cooperative effort. The purchasing process is not instantaneous. Time is required to complete the steps required by Federal and State law and City policy. In order to accomplish the timely purchase of products and services at the least cost to the City of The Colony, all departments must cooperate fully. Prior planning and timely submission of requisitions is essential to expedite the purchasing process and to ensure that the process is orderly and lawful. I. Policy A. Purchasing reports through Finance Department. B. The Colony City Purchasing Policies are structured around the Texas Local Government Code, specifically Title 8, Chapters 252 and 271. C. Public employment is a public trust. It is the policy of the City of The Colony to promote 87 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 and balance the objective of protecting government integrity and the objective of facilitating the recruitment and retention of personnel needed by the City of The Colony. Such a policy is implemented by prescribing essential standards of ethical conduct without creating unnecessary obstacles to entering public service. D. Public employees must discharge their duties impartially to ensure fair and competitive access to governmental Purchasing by responsible contractors. Moreover, they should conduct themselves in such a manner as to foster public confidence in the integrity of the City of The Colony Purchasing organization. E. To achieve the purpose of this policy, it is essential those doing business with the City also observe the ethical standards prescribed herein. II. Purchasing Objectives The primary objective of the Purchasing Department of the City of The Colony is to support the City's staff in accomplishing the goals and directives established by the City Council and the City Manager. The Purchasing Manager will comply with all legal and ethical standards in obtaining the specified quality and quantity of materials and services for the City. The Purchasing Manager will promote fair and open competition for the Purchasing of all goods and services in accordance with all State and local laws, policies, and regulations.  To conduct all purchasing accordance with State of Texas law, including Chapters 252 and 271 of the Texas Local Government Code and be responsible for obtaining the lowest possible price and highest quality consistent with delivery terms and vendor service reputation.  To approve and process purchase orders and contracts in a timely manner in response to requisitions and to prepare, receive, distribute and evaluate requests for bids on a routine basis. Purchasing also prepares bid tabulations and evaluates the bid packet before posting. Departments prepare (purchasing can assist with preparing), the recommendation to the City Manager/City Council.  Purchasing stimulates competitive bidding in order to obtain materials and services at the lowest possible cost, and to provide all interested vendors with an opportunity to offer their products to the City.  Purchasing promotes good vendor relations and assists establishing specifications which will encourage competition and accurately describe the equipment and materials needed. Purchasing also consolidates purchase requisitions, when possible, to take advantage of quantity discounts and maintains continuity of supply to support on-going services, operations, and construction schedules. Purchasing ensures the proper disposition of City surplus. 88 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 III. Purchasing Ethics All City Staff engaged in Purchasing for the City of The Colony shall comply with the following ethical standards:  Personal Ethics It shall be a breach of ethics to attempt to realize personal gain through public employment with the City by any conduct inconsistent with the proper discharge of the employee's duties.  Influence of a Public Employee It shall be a breach of ethics to attempt to influence any public employee of the City to breach the standards of ethical conduct set forth in this code.  Conflict of Interest It shall be a breach of ethics for any employee of the City to participate directly or indirectly in Purchasing when the employee knows: • The employee or any member of the employee's immediate family has a financial interest pertaining to the Purchasing. • A business or organization in which the employee, or any member of the employee's immediate family, has a financial interest pertaining to the Purchasing; or • Any other person, business or organization with which the employee or any member of the employee's immediate family is negotiating or has an arrangement concerning prospective employment is involved in the Purchasing.  Gratuities It shall be a breach of ethics to offer, give or agree to give any employee or former employee of the City, or for any employee or former employee of the City to solicit, demand, accept or agree to accept from another person, gratuity. It is also a breach of ethics to accept an offer of employment in contingent with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement or purchase request. Influencing the content of any specification or Purchasing standard, rendering advice, investigation, auditing or in 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 solicitation or proposal therefore pending before the local government is prohibited.  Kickbacks 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 89 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 subcontractor for any contract for the City, or any person associated therewith, as an inducement for the award of a subcontract or order.  Contract Clause The prohibition against gratuities and kickbacks prescribed above shall be conspicuously set forth in every contract and solicitation.  Confidential Information It shall be a breach of ethics for any employee or former employee of the City knowingly to use confidential information for actual or anticipated personal gain, or for the actual or anticipated gain of any person.  Purchase of Materials, Equipment, and Supplies for Personal Use Unless specifically approved in writing by the City Manager or Designee, no employee may purchase City property for their own personal use unless it is purchased through the City's public auction or through the sealed bid process of the City. This includes new and used equipment, materials or supplies.  Private Purchases Through City Facilities No employee may use the purchasing power of the City of The Colony to make private purchases. In addition, employees should not have private purchases sent to the City C.O.D. to be paid for by the employee. IV. Federal and State Purchasing Requirements  Tax Exempt Status The City of The Colony is exempt from Federal, State and local taxes except in certain prescribed cases. An exemption certificate is available from the Purchasing Department and be furnished to any of tile City's suppliers upon request.  Certificate of Interested Parties Section 2252.908 of the Government Code applies to all contracts entered into on or after January 1, 2016, and states that a governmental entity may not enter into certain contracts with a business entity unless the business entity submits a disclosure of interested parties to the governmental entity at the time the business entity submits the signed contract to the governmental entity. The law applies to all contracts/purchases of a governmental entity that require an action or vote by the governing body of the entity.  Conflict of Interest Questionnaire Chapter 176 of the Texas Local Government Code requires any person doing business or seeking to do business with a government entity to file a Conflict of Interest Questionnaire form if that person has an employment or business relationship with an employee or officer of the City. The form must be filed with Purchasing within seven days of the person becoming aware of the conflict. 90 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 PROHIBIT/ON OF BOYCOTT OF ENERGY COMPANIES: By accepting this contract or purchase order, Vendor verifies that is does not Boycott Energy Companies and agree that during the term of this Agreement will not Boycott Energy Companies as that term is defined in Texas Government Code Section 809.001, as amended. This section does not apply if Professional (or Contractor) is a sole proprietor, a non-profit entity, or a governmental entity; and only applies if: (i) Professional (or Contractor) has ten (10) or more full-time employees and (ii) this Agreement has a value of $100,000.00 or more to be paid under the terms of this Agreement. PROHIBIT/ON OF DISCRIMINATION AGAINST FIREARM ENTITIES AND FIREARM TRADE ASSOCIATIONS: By accepting this contract or purchase order, Vendor verifies that it does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (ii) will not discriminate during the term of the contract against a firearm entity or firearm trade association. This section only applies if: (i) Professional (or Contractor) has ten (10) or more fulltime employees and (ii) this Agreement has a value of $100,000.00 or more to be paid under the terms of t his Agreement; and does not apply: (i) if Professional (or Contractor) is a sole proprietor, a non-profit entity, or a governmental entity; (ii) to a contract with a sole -source provider; or (iii) to a contract for which none of the bids from a company were able to provide the required certification. PROHIBITION OF BOYCOTT OF ISRAEL AND OF DOING BUSINESS WITH CERTAIN ENTITIES: By accepting this contract or purchase order, Vendor verifies that his/her company, under the provisions of Subtitle F, Title 10, Government Code Chapter 2270 and Subchapter F, Government Code Chapter 2252: 1. Does not boycott Israel currently; and 2. Will not boycott Israel during the term of the contract the above-named Company, business or individual with the City of The Colony, Texas; and 3. Does not do business with Iran, Sudan, or a Foreign Terrorist Organization. Pursuant to Section 2270.001, Texas Government Code: 1. "Boycott Israel" means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli- controlled territory, but does not include an action made for ordinary business purposes; and 2. "Company" means a for-profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, or any limited liability company, including a wholly owned 91 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 subsidiary, majority-owned subsidiary, parent company or affiliate of those entities or business associations that exist to make a profit. Pursuant to Section 2252.151, Texas Government Code: "Foreign terrorist organization" means an organization designated as a foreign terrorist organization by the United States secretary of state as authorized by 8 U.S.C. Section 1189. V. Glossary of Terms The following definitions are intended to assist employees in understanding the language used throughout this manual. Contact the Purchasing Department for clarification or if something is not defined in this section. Annual Contract - A contract which protects pricing for a set time period (typically one (1) year) and is awarded to a contractor for goods and services routinely required on a recurring basis. User departments place orders directly with the contractor, eliminating requisitions and processing times. Award - The presentation of a purchase agreement or contract to the selected bidder. Best Value - If the sealed competitive bidding requirement applies to the contract for goods or services, the contract may be awarded to the lowest responsible bidder or to the bidder who provides the goods or services at the best value for the City. In determining the best value for the City. Factors used to determine "best value" include: • The purchase price; • The reputation of the bidder and of the bidder's goods or services; • The quality of the bidder's goods or services; • The extent to which the goods or services meet the City's needs; • The bidder's past relationship with the City; • The impact on the ability of the City to comply with laws and rules relating to contracting with historically underutilized businesses and non-profit organizations employing persons with disabilities; • The total long-term cost to the City to acquire the bidder's goods or services; • Any relevant criteria specifically listed in the request for bids or proposals. 92 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 Bid - An offer or contract with the City submitted by a bidder in response to an invitation to bid or to a multi- step bid. The complete bid document referred to as "the bid." Bid Advertisement - For expenditures of $$100,000 or more a public notice shall be placed in a newspaper of general circulation and published at least once a week for two consecutive weeks. The notice shall contain the time and place at which bids will be publicly opened. Bonds: Bid Bond - A deposit required of bidders to protect the City if a low bidder withdraws its bid following submission or fails to enter into a contract following award. Acceptable forms of bid deposits are limited to bid bond from a surety company authorized to do business in the State of Texas as a guarantee the bidder will enter into a contract and execute the required Bonds after notice of award. If the solicitation requires a Bid Bond, the bid packet will provide instructions when to submit. Payment Bond - A surety bond ensures all suppliers and subcontractors of the contractor will be paid for work and materials supplied in the course of the contract. If the solicitation requires a Payment Bond, it must be submitted by the contractor after the award and prior to commencement of work. Performance Bond - A surety bond provides assurance to the City that the awarded contractor will faithfully perform the work in accordance with the plans, specifications, and contract documents. If the solicitation requires a Performance Bond, it must be submitted by the contract after award and prior to commencement of work. Maintenance Bond - A surety bond guarantees the project against defective workmanship and materials during the maintenance period set forth in the bond. If the solicitation requires a Maintenance Bond, it must be submitted by the contractor after award and prior to commencement of work. Capital Equipment - Assets used in operations with a useful life greater than one year and valued at $5,000 or more at the time of acquisition report to Finance/Purchasing. Change Order - A change order is issued to a purchase order or contract if changes in plans or specifications are necessary after the performance of the contract has begun or if it is necessary to decrease or increase the quantity of work to be performed or of materials, equipment or supplies to be furnished. Local Government Code 252.048 states original contract price may not be increased under this section by more than 25 percent. The original contract price may not be decreased under this section by more than 25 percent without the consent of the contractor. City Council - The elected officials of the City of The Colony, Texas given the authority to exercise such powers and jurisdiction of all City business as conferred by the City Charter and State of Texas Constitution and laws. Competitive Bidding - The process wherein a vendor openly competes with other vendors through a formal or informal process for the City's business. Component Purchases - Purchases of component parts of an item, which in normal purchasing practices would be purchased in one purchase. 93 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 Consulting Services - The service of studying or advising the City under a contract does not involve the traditional relationship between employer and employee. Contract - An agreement between the City and a contractor, with binding legal and moral force, usually exchanging goods or services for money or other considerations. Delivery Date - The date by which goods and services needed by the department or promised by the vendor. Emergency Purchases - Purchases are made to meet a critical, unforeseen need of the City, where the City's ability to serve the public would be impaired if the purchase is not made immediately. Emergency purchases are exempt from standard purchasing procedures and must qualify for an exemption as outlined in the Texas Local Government Code Sec. 252.022. Emergency purchases must follow the procedure set forth in this manual. Free On Board ("FOB") Destination Point- Vendor pays freight charges to the destination; title to goods passed to buyer at receiving dock; freight claims must be filed and handled by the seller. FOB Shipping Point- City must pick up goods at the seller's shipping dock or pay freight charges; freight charges may be prepaid and added to the invoice; title to goods passes to the City at the shipping dock of the seller; freight claims must be filed and handled by the City. Goods - Property purchased by the City, including equipment, supplies, materials, components, and repair parts. lnterlocal Agreement - An agreement made between the City and another governmental entity or cooperative organization to perform governmental functions and services (e.g. purchasing) for each other as provided under Texas Government Code Sec. 791.025 and Texas Local Government Code Sec. 271.102. Lowest Responsible Bidder - This is the vendor who offers the lowest bid which meets all the specifications, requirements, and terms and conditions of the RFB. It is expressly understood the lowest responsible bid includes any related costs to the City, using a total cost concept. The term "responsible" refers to the financial and practical ability of the bidder to perform the contract, also used to refer to the experience and safety of the vendor. Maintenance Agreements - An agreement with equipment manufacturers or authorized service centers for the upkeep of equipment neither adds to its permanent value nor prolongs its intended life appreciably but instead keeps it in an efficient operating condition. Professional Services - Services rendered by members of a recognized profession as defined by Texas Government Code Sec. 2254.002 or who possess special skills which are mainly mental or intellectual, rather than physical or manual. Texas Local Government Code Sec. 252.022(a)(4) exempts professional services from competitive bidding requirements. Purchase - An act includes the acquisition of goods or services, including leasing personal or real property. Separate, sequential, and component purchases are treated as a single purchase. 94 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 Purchase Order - A purchaser's written document to a vendor formalizing all the terms and conditions of a proposed transaction, such as a description of the requested item(s), delivery schedule, terms of payment, and transportation. When accepted by a vendor, the agreement specified in the purchase order becomes a contract. A purchase order grants the vendor the authority to deliver the goods or services and invoice for the same. It is the City's commitment to accept the goods or services and pay for them at the agreed price. Quote - An informal purchasing process which solicits pricing information from several sources. Request for Bid ("RFB") - Specifications and a formal written document requesting a firm price and delivery details for specified goods or services. Request for Proposals ("RFP") - A formal written document requesting potential vendors make an offer for goods or services to the City. The RFP method of purchasing is used for all goods and services. The RFP differs from an RFB in the City is seeking a solution, as described in the document, not a bid or quotation meeting firm specifications. Proposals evaluated based on criteria formulated around the most important feature of a product or service, of which quality, testing, references, availability or capability may be overriding factors, and price is not the sole factor of the award. RFP submittals kept confidential during negotiations until an awarded contract. Request for Qualifications ("RFQ") - A formal written document used when soliciting providers of professional services such as architectural, engineering, or land surveying services. The City must comply with Texas Government Code Sec. 2254.004 in the Purchasing of these services. The City must first select the most highly qualified provider on the basis of demonstrated competence and qualifications. After a firm has been selected based on qualifications and experience, then a fair and reasonable fee shall be negotiated. If a satisfactory contract cannot be negotiated with the most highly qualified provider of architectural, engineering, or land surveying services, the City shall formally end negotiations with that firm and select the next most highly qualified firm and begin negotiations with that provider for a fair and reasonable price. Requisition - The source document for all purchasing activity. This form communicates a department's needs to purchasing and grants authorization to enter into a contractual relationship for delivery other goods and/or services. A requisition is to communicate internal requirements and not to be used by the departments for the order and delivery of goods and/or services. Separate Purchases - Purchases made separately of items in normal purchasing practices would be purchased in one purchase. Sequential Purchases - Purchases, made over a period of time, of items in normal purchasing practices would be purchased in one purchase. Services - A generic term to include all work or labor performed for the City on an independent contractor basis, including maintenance, construction, manual, clerical, or professional services. 95 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 Sole Source Purchasing - Purchases of goods or services available from only one vendor. There may be just one vendor because of patents or copyrights, or simply because the vendor is the only supplier for the good or services. These purchases are exempt from the standard bidding requirements and must qualify as outlined in Texas Local Government 252.022. Purchases must comply with the procedures outlined in this manual. Specifications - A description of the physical or functional characteristics, or of the nature of a supply, service, or construction item and/or the requirements to be satisfied by a product, material or process indicating, if appropriate, the procedures to determine whether the requirements are satisfied. Specifications should be descriptive but not restrictive. State Contract Purchase - An item available through the State of Texas Purchasing and Support Services 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. The City of The Colony has elected to participate in the cooperative purchasing program for governmental departments and other state agencies. Surplus - ltem(s) no longer needed by a department, regardless of its value or condition. Vendor - A generic term applied to individuals and companies who provide goods and services to the City. VI. Purchase Request Total Dollar Limits and Approval Requirements The City Manager as authorized by the City Council of the City of The Colony has delegated to the Purchasing Manager the authority to procure materials and services for the City of The Colony within the guidelines set forth by the City Council. In certain cases, the City Manager has also granted this authority to certain City employees authorized by their Department Directors. 1. Delegation of Purchasing Authority Department purchasing authority is limited to a single purchase of a total of $$9,999.99 or less. With the exception of some Public Works projects, all other purchases must be processed through the Purchasing Department. 2. Total Dollar Limits/Approval Requirements to Submit a Purchase Request 96 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 The following standard approval route for all Finance Forms applies to all City Departments: CITY OF THE COLONY APPROVAL ROUTING REQUIREMENTS Total Amount of Request* Type of Bid/Quote Required Dept. Type of Approval/s Required* Other Requirements Responsible to, Bid/Quotes $ $100,000 and Above Sealed Purchasing " Supervisor Department Director Finance-Acct & Budget Ck City Manager or Designee Purchasing Processing Citv Council Approval Formal Advertisement Sealed Bid (Paper or Electronic) Agenda Memo w/Bid Tabulation $10,000.00 to $99,999.99 Minimum 3 Written Quotations Purchasing / Department Supervisor Department Director Finance - Acct & Budget Check Email or Electronic Quotation Bid Tabulation HUB Check Required City Manager or Designee Purchasing Processing <$9,999.99 Not Required Department Supervisor Quotes not required but recommended 3. Purchases Requiring City Council Approval Any Purchasing made for $100,000.00 and greater must be approved by the City Council PRIOR to the purchase being made. 4. Purchases Requiring City Manager Approval The City Manager or their designee must approve all purchase requisitions for $100,000.00 and up. 5. Purchases Requiring Account & Budgeting Approval The Finance Director and/or Purchasing Manager must approve all purchase requisitions for $10,000.00 and up. 97 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 *Note* Contractual Agreements – Required for All Services – SEE SECTION XXVI In accordance with best practices for municipal risk management and to ensure compliance with applicable provisions of the Texas Local Government Code, contracts are required for all services, regardless of the dollar amount. This requirement is not based on a financial threshold, but rather reflects the necessity to establish clear terms, manage liability, and protect the interests of the municipality. No services should commence without a fully executed contract approved in accordance with local policies and state law. 98 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 VII. Purchase Orders The purchase order authorizes the supplier to ship and invoice for the goods ordered and acts as a contract between the City and supplier. The primary purpose of the purchase order is to expedite and control the buying of the City. The major parts of a purchase order which require particular attention are the following: • Description- The description must be complete- size, color, catalogue number, part number, quote date, quote number, cooperative contract number and any information about the purchase to make sure there is no question as to the material ordered. • Quantity - The quantity of each item ordered will be stated on the purchase order. • Unit Price - If at all possible, the unit price will be stated. • Total - This will be the sum total cost of all items ordered. ● Purpose The purpose of the Purchase Orders policy is to ensure city employees follow purchasing guidelines when purchasing needed items for the city operations. 1. Prohibition on Open Accounts It is against City Policy to have open accounts with any vendor. Department Orders MUST BE PLACED using either a City issued Purchasing card or a Purchase Order. To obtain a Purchase Order the department must first submit a request to Purchasing at purchasing@thecolonytx.gov. 2. Departmental Purchases Under $9,999.99 Any single Purchasing with a total value of not more than $9,999.99 can be made directly by each Department Director or the Director's authorized representative. Although multiple quotations are not required it is recommended price comparisons be made, if possible. The departments should look for the best possible pricing for the City. It is highly recommended the department use a City issued Purchasing card for these purchases. However, if a Purchasing card cannot be used the department should send a requisition to Purchasing in order to obtain a purchase order number. A fully executed contract may be required if obtaining services. Contact Purchasing for more information on how to obtain one. City purchases are audited annually by an outside auditing firm to detect split purchases. Because the administrative cost of competitive quotations would be more than the amount saved taking such quotations the competitive bidding procedure does not apply to purchases of $9,999.99 or less. 99 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 3. Purchase Orders with City Policy Requirements (purchases between $10,000.00 and $99,999.99) Any single purchase with a total value of more than $9,999.99 is subject to all City Purchasing Policies and Procedures approved by City policy and the City Council. Requirements for items having a single order total value of $10,000.00 to $99,999.99 must have a requisition created in the City’s ERP financial system. The purchase requisition must be filled out completely and include quantities, complete descriptions of the item(s) to be purchased, cooperative contract and number, if applicable, quotes date, quotes number and approved budget funding account numbers to charge for the purchase. Before forwarding the purchase request to Purchasing, three complete set of quotations (one HUB vendor, if available) and purchase information must be attached in the requisition for Purchasing to review. At least three written quotes are required on any purchase with a total between $10,000.00 and$99,999.99. A fully executed contract is required for services if applicable. 4. Purchase Orders with State Law Requirements (purchases greater than $100,000.00) Any single purchase with a total value of $100,000.00 or more is subject to Local Government Code Chapter 252, Chapter 271 and other references. Formal competitive bidding is required in most cases for City purchases of products or services with a value of $100,000.00 and above. Generally, the term formal competitive bidding is applied when a solicitation process complies with the Local Government Code. If the department is recommending an award to a vendor other than the apparent low bidder, the memo must outline the areas where the low bidder does not possess the full capability to meet all of the requirements of the contract. 5. Sole Source Purchases Sole-source purchases are items available from only one source because of patents, copyrights, secret processes, or natural monopolies as defined by local government code. Purchases available from only one supplier are exempt from bidding requirements. However, the City requires certification that other reasonable sources of supply do not exist. When a department has identified a specific item with unique features or characteristics essential and necessary to the requesting department and no alternate products are available, a detailed written justification must be provided to Purchasing in advance for review and approval. There are many reasons a purchase might be practical from only one vendor, some examples are: • There is no competitive product. The goods/service are a one-of-a-kind or patented product, a copyrighted publication available from only one source or a unique item such as artwork. The product is only available from a regulated or natural monopoly. Examples include utilities, gravel from the only gravel pit in the area or similar situations. • The product is a component of an existing system only available from one supplier. The replacement of a component or a repair part may only be available from the original supplier. • Sole-source purchases may also be the result of State law or ordinances require or allow certain types of purchases made from a particular source: o Non-profit corporations using workers with disabilities to produce the item. State or local governments often use products made by blind or workers with disabilities. 100 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 o Prison workers produce the item. The state benefits from the sale of these items. 101 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 ● Procedure for Sole-Source Purchases Sole source purchases handled the same as other purchases, with these exceptions: • Prior to purchase, the user department must contact Purchasing to determine the best method of purchasing or sourcing the product. • If the Purchasing department determines the item is a sole-source purchase, a justification memo must be attached to the requisition and a current (date must be current and addressed to the City) sole source letter from the vendor describing how the product or service is a sole source. The sole source letter is valid for one-year from the date of the sole source letter. • If there are services associated with the sole source purchase a fully executed contract is required if applicable. • After the requisition is approved, the purchase order is prepared. 6. Cooperative/lnterlocal Purchasing Procedures The Government Code and Local Government Code state the City may enter into an Interlocal agreement with another public entity in the United States for the purposes of pooling resources to obtain favorable pricing for goods and services. Interlocal Agreement purchases require City Council approval if exceeding $100,000.00. The City of The Colony has Interlocal agreements with various entities throughout the State of Texas and is a member of several cooperative purchasing programs throughout the United States. A list of the current cooperative purchasing programs in which the City participates is available S:\City_Share\Purchasing\COOPs & Interlocal Agreements A. Cooperative Purchases Cooperative purchasing saves time and effort over competitively bidding our own items and allows us to combine our purchasing power with other entities to achieve lower prices on various goods and services. Purchasing has established several cooperative purchasing agreements with many public entities and State and City Council approved cooperatives. Among them are the Houston-Galveston Area Council of Governments, (HGAC), Omnia Partners, The Local Government Purchasing Cooperative (Buy Board), TIPS, Sourcewell, State of Texas, Choice Partners and others. All agreements are established for the purpose of achieving maximum savings to the City through pooling of economic buying power. A purchase from an approved cooperative satisfies the requirement for competitive bidding. Before any department makes any purchase from a cooperative contract, they should contact Purchasing to ensure appropriate guidelines are being followed. Prior to making the decision to use a cooperative contract the City shall use one or more of these review processes: • Compare the cooperative contracts available for the required product or service, conduct market research, and evaluate whether the use of a cooperative contract is appropriate. 102 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 • Analyze all costs associated with conducting a competitive solicitation and contact the cooperative lead agency to verify contract application and eligibility. 103 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 • Review the cooperative contract for conformance with all applicable laws and best practices. • Analyze the product or service specifications, price, terms and conditions and other factors such as: cost to utilize the contract, shipping, minimum spend requirements, and availability of contract documentation, to ensure the cooperative contract produces best value. Through cooperative purchasing, the City can save time and money. Cooperative purchasing occurs when two or more entities (state, federal or local governments) coordinate some or all of their purchasing efforts to the mutual benefit of all participants in the purchasing process. The Purchasing Department shall take advantage of the following types of cooperative purchases when deemed to be in the City's best interest: • lnterlocal Agreement Purchases • State Contracts • Piggybacking • Joint Purchases There are a number of levels of cooperative purchasing, from occasional minor cooperation in a purchase, to a level where all purchases done through the cooperation of two or more cities called lnterlocal Agreements. There are also several types of cooperative purchases, ranging from one city "riding" on the contract of another city to splitting the purchasing duties equally. Cooperative purchasing accomplished through several methods. The first method involves one city performing all the tasks necessary to make a purchase with other governments purchasing off the first city's contract. A second method involves cities sharing the purchasing responsibilities. Following are the most commonly used types of cooperative purchasing: A. Piggybacking In piggybacking, one city creates a contract and allows other governments to use it. Both governments should protect themselves by establishing an agreement in writing, even when the arrangement is informal. The agreement should specify the duties and responsibilities of each party. There must be a clause in the contract about this agreement and vendors must agree to it. B. Joint Purchases Two or more cities join to purchase one or more goods or services jointly. This may involve each city handling part of the administrative shores or agreeing to have one of the cities handling the transactions under the guidance of the others. If the arrangement is long-term, rotate the roles periodically to share equally the purchasing duties. All parties to a purchase must agree to the specifications, so that a mutually satisfactory good or service is ordered. C. Buying from State Contracts Under the provisions of Local Government Code Sections 271.081 - 271.083, the Comptroller of Public Accounts offers the Cooperative Purchasing Program and manages state contracts. Buying from state contracts is a form of piggybacking. Under this program, and after complying with certain requirements, a local government may participate in all automated state contracts. 104 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 B. lnterlocal Cooperative Purchasing Agreements The Local Government Code Section 271.102, Cooperative Purchasing Program Participation and current purchasing laws allow the City to utilize another local government of this state or another state or with a local cooperative organization of this state or another state contracts granted through a competitive process via use of lnterlocal Cooperative Purchasing Agreements. These contracts are used as another tool in accomplishing our mission to our citizens. They are never used to intentionally and knowingly avoid our competitive bid process. Any use of another entity's contract for Purchasing of goods/services must be discussed with Purchasing in advance of acquiring quotes. The following conditions must exist before the purchase can move forward: • The City has a valid pre-existing lnterlocal Cooperative Purchasing Agreement with the other city. • The item(s) wishing to be purchased are covered under the contract as originally written, not amended specifically for the City of The Colony's needs. "Published Options" if called for in the original contract, and specifically priced on the contract, are allowable. If special needs by the City are not covered by the contract pricing or published options, City optional additions ("unpublished options") allowed as a Change Order, as long as they are specifically outlined on the order. C. Cooperative Purchasing Order Processing The following is an overview of the ordering processes for various cooperative purchasing programs. This process is provided for purchases utilizing other cooperative purchasing program contracts, such as Department of Information Resources (DIR), Texas Multiple Award Schedule (TxMAS), Houston-Galveston Area Council (HGAC), The lnterlocal Purchasing System (TIPS), Buy Board and others. • The requesting department obtains a quote from a contracted vendor. The itemized quote is in accordance with the contract terms, and the quote contains the contract number. The quote must reflect base price, published options, and unpublished options, as applicable. The quote reviewed by Purchasing and sent to the original entity to verify compliance with the existing contract with the vendor. • The Department will verify contract and pricing prior to submitting the quote to the buyer for approval and submitting a requisition to Purchasing. • The requesting department should attach the quote when submitting the requisition for review by Purchasing. • Purchasing reviews and verifies the contract and pricing of the quote. • A fully executed contract is required for services if applicable. 5. Upon purchasing approval, an agenda memo for purchases in excess of $100,000.00 is created 105 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 and reviewed by Purchasing and the department. 6. Purchasing will submit a purchase order accordingly. HGAC, Buy Board and TIPS purchase orders submitted to the cooperative directly for order confirmation. The purchase order reviewed by the cooperative and the order submitted directly to the vendor for processing. Purchasing processes all purchase orders to the cooperative regardless of dollar threshold. D. Emergency Purchases The purchase must qualify as an emergency purchase as defined in Local Government Code Chapters 252 and 271. If there is time to give proper notice and for an advertisement to be made, then it is not an emergency situation. Generally, three broad areas can be classified as emergency purchases:  When a public calamity such as a hurricane or other tragedy, if it is necessary to make a purchase promptly to relieve the necessity of the citizens or to preserve the property of the City, the purchase is exempt from the competitive bidding requirements.  The same is true in the case of an item necessary to preserve or protect the public health or safety of the residents of the City's jurisdiction or an item necessary because of unforeseen damage to public property.  When it is necessary to preserve or protect the public heath, competitive bidding requirements waived regardless of how the conditions were brought about. State courts have said that the words "preserve" and "protect," as applied to public health, carry the idea of timely, efficient and effective action that keeps intact and unimpaired the good health of the citizens in advance of impairment. It is not necessary for the public health to be under immediate peril because of a public calamity before the bid exemption is put aside. In this case, the court approved repairs and improvements to a city's sewer system that were made without advertising for competitive bids. I. Procedures for Placing an Emergency Order During Normal Working Hours Emergency purchases are those purchases over $10,000.00 made during or after normal working hours to keep equipment or machinery in operation or to avoid work stoppage. The initiating department notifies purchasing office by email or telephone immediately with as much information as possible about the emergency purchase required. A purchasing requisition is prepared by purchasing. Purchasing or initiating department head contacts as many vendors as necessary to arrange the emergency purchase. If there is not enough time to get authorization, the purchase can be completed by telephone, and the purchase order is completed after the fact and delivered to the vendor. Expedited delivery is requested. The person making the requisition may be required to pick up the emergency purchase from the vendor if timely delivery is not available. 106 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 II. Placing an Emergency Order During Evenings, Weekends and Holidays When purchasing personnel are unavailable, process emergency purchases as follows: • The affected department takes whatever steps are necessary to procure needed supplies, services or equipment to relieve the emergency. If possible, only those goods or services needed during the evening, weekend or holiday are procured. • On the first working day following the emergency, the person making the purchase must attach the invoices, bills of materials, receipts or other documents related to the purchase of the requisition and send it to purchasing. • The person in charge of the affected department must certify in writing on the next business day, or as soon as possible, why the purchase was necessary. • The Department Director or their designee must approve all emergency purchases for $10,000.00 and higher. When approved, a purchase order number is issued by purchasing to cover the purchase. The purchase requisition must contain all information (quantities, descriptions, unit pricing, total pricing, and budget account numbers). The purchase request MUST NOTE the request was an emergency. In the event of a true public calamity or declared emergency, the Emergency Purchasing Policy will be the policy of record during the declared emergency. NATIONAL AND REGIONAL COOPERATIVE PROGRAMS LISTING 10-1-2023 Buy Board GSA https://www.buyboard.com Choice Partners https://www.choicepartners.org/ Omnia H-GAC https://www.omniapartners.com NPPGov https://nppgov.com/ NCTCOG – TxShare https://txshare.org/ PACE https://pace.esc20.net/ Pavillion https://www.withpavilion.com/ Sourcewell https://www.sourcewell-mn.gov/node/243921 Texas Smart Buy https://www.txsmartbuy.com/ Texas DIR https://dir.texas.gov/ TIPS-USA https://www.tips-usa.com/vlist.cfm New interlocal agreements and city piggyback contracts added as needed and may be located at Shared S Drive > City Share > Purchasing > COOPs & Interlocal Agreement folder. 107 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 108 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 III. City Annual Price Agreements/Contracts The City has established through the competitive bidding process several annual price agreements with various vendors on a wide variety of products that allow departments to purchase items without having to go through an additional competitive bidding procedure. These contracts provide the following benefits: • Lower administrative costs due to placing one annual order rather than several smaller orders • Pricing that remains firm, for the contract period. • A wide range of products available at lower costs. Items purchase through the City contracts may be purchased directly from the vendor. All vendors, items and pricing under contract are available from purchasing. • Annual Contracts (Blanket) Annual Agreement - issued by the Purchasing Department to create an annual agreement between the City and a vendor for specific items and/or services provided at a certain price, on an as-needed basis. Annual agreements do not encumber funds until a release against the blanket order is issued. Annual agreements normally are issued following a bid award by the City Council where the annual expenditure is expected to exceed$100,000.00. An annual agreement may be for the exclusive use of an individual operating department, split between operating departments or may be established for citywide use. After an annual contract been awarded, purchasing will issue an annual contract and Purchase Order to the vendor awarded the contract. The Purchase Order will also show the account number or numbers funds will be drawn from to pay for the merchandise or service received. All invoices received from the annual contract must display the purchase order number issued to the vendor. • Cancellation of Purchase Orders Purchase Orders may be cancelled by an email or memorandum forwarded to the Purchasing Manager justifying the cancellation. Change Orders Change Orders are documents modifying information concerning goods and/or services, price, and/or quantities in an existing contract/purchase order. If the total amount of the contract/purchase order is increased by the change order, the change order may require approval by a different authority than that used to approve the contract/purchase order and/or previous change orders. Local Government Code 252.048 states original contract price may not be increased under this section by more than 25 percent. The original contract price may not be decreased under this section by more than 25 percent without the consent of the contractor. 109 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 VIII. Purchase Orders (after the fact) This type of purchase occurs when the using department received goods or services over $10,000.00 without obtaining a purchase order prior to the transaction. Purchasing will issue a Purchase Order for this type of purchase. If it is not an emergency (see Emergency Purchases), this purchase may violate policies, and Purchasing would need additional information to issue a Purchase Order. In order for an invoice to be processed and paid, the using department must receive approval for payment from the Department Director or their designee using the “After the Fact” form created by Purchasing IX. Purchasing Card Policy (P-Cards) The purpose of the City of The Colony's Purchasing Card Program is to establish a more efficient, cost-effective method of purchasing and paying for small dollar transactions as well as high-volume, repetitive purchases. The goal of the program is to reduce internal purchasing restrictions to the administrative costs associated with processing small purchases under $4,999.99. The program is not intended to bypass appropriate purchasing or payment procedures. The intent of the program is to complement the existing purchasing program and must be used in conjunction with the City's Purchasing Policies. This policy is effective for the City’s MasterCard Program. ● How the program benefits cardholders as well as the City: • Allows cardholders to obtain goods and services faster and easier • Allows all groups and individuals involved in the program to be more effective and to focus on the value-added aspects of their jobs ● Why cardholders have been selected to receive a Purchasing card: • Job responsibilities require them to purchase certain types of goods or services • Part-time employees will not be issued Purchasing cards unless approved by the City Manager or Designee. ● The City's policies and procedures governing the use of the Purchasing card: • Transaction and monthly credit limits • Types of purchases are set within the parameters of the Purchasing card while ordering goods and services from vendors • Handling credits, returns, and disputes • Cardholders' responsibilities concerning monthly review and reconciliations ● Obtaining a Purchasing card: • The Department Supervisor or equivalent will submit a new Purchasing card request form found S Drive> City Share> Purchasing for each Purchasing card request for processing. • The Department Director will approve the request • The Purchasing Manager will coordinate with JP Morgan Chase for P-card issuance • The card(s) will be sent to the Purchasing Manager who will then contact the cardholder(s) for pick-up and sign the CARDHOLDER CREDIT CARD AGREEMENT 110 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 • After signing the Cardholder's Agreement, the employees will then be authorized to use the Purchasing card. • To change a cardholder's limits, an increase/decrease form will be required and email to the Finance Director and Purchasing Manager providing detailed information regarding the need for any change and the purpose for requested amount of change is required. The Finance Director and/or Purchasing Manager can make the determination regarding any change. The card will have the cardholders' name, City’s Tax ID# and City Name embossed on it. • JP Morgan Chase Bank First, contact Purchasing Manager to resolve any credit card issues. The Purchasing card program is serviced through JP Morgan Chase Bank. The Customer Service Center is available 24 hours a day, 7 days a week to assist the cardholder with general questions about the Purchasing card account. The customer service number is: 1-800-316-6056. If a Purchasing card is lost, stolen or has non-valid transactions, immediately contact Purchasing Manager at 972.624.3145. Prompt action can reduce the City's liability of fraudulent activity • Purchasing card activation Purchasing Manager will activate the Purchasing card before contacting requesting individual. Purchasing Manager will assign the four digit pin when requesting the P-Card. This pin not required when making purchases, it is a security protection. Upon receipt the cardholder should sign the back of the card and keep the card in a secure place. • Documentation and Approval Process The Purchasing card issued in the employee's name. All purchases made with the Purchasing card must be for the designated employee's Department only. ● Approval Process - Cardholders designated by their Department Director to use the Purchasing card. Cardholders are responsible for following the guidelines provided by the City regarding purchases, selection of vendors, security of the card, and monthly reconciliation of the charges and coding of charges to the appropriate accounts. It is the Purchasing cardholder's responsibility to obtain itemized transaction receipts from the merchant or supplier each time the Purchasing card is used. Receipts must be completely legible. Purchases made with a Purchasing card are funded by taxpayer dollars. Ownership of a City Purchasing card is a privilege and NOT a right. 111 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 Cardholders charged with making responsible, work-related purchases and with the prompt and complete submission of monthly card reconciliation documents through the Payment Authorization process. Cardholders who fail to meet these responsibilities will have their Purchasing card privileges revoked. Inappropriate purchasing card use will result in disciplinary action. ● Purchases Prohibited with the Purchasing Card The Purchasing card is not for personal use. City policy also prohibits loaning the Purchasing cards to any other person or employee (other than additional approved departmental employees, in the case of a departmental card). The Purchasing card not intended to avoid or bypass appropriate purchasing or payment procedures. Cardholders shall not separate or split purchases to avoid the normal purchasing procedures. Any purchase over $4,999.99 shall go through the requisition process and adhere to purchasing guidelines. This program complements the existing processes available. Itemized receipts are required documentation for completion of transactions and supporting documentation. Lost or missing receipts must have department head approval. Separate Purchases - Purchases made separately of items in normal purchasing practices, would be purchased in one transaction. Sequential Purchases - Purchases made over a period of time, of items in normal purchasing practices, would be purchased in one transaction. EXAMPLES OF PROHIBITED PURCHASES WITH CREDIT CARD • Purchases of technology items except by the Information Technology Department. • Employees who receive a monthly phone allowance cannot use the Purchasing card for any phone accessory purchases, including but not limited to, cases, apps, etc. The monthly allowance intended to cover those items. • Employees who receive an automobile allowance, cannot use the Purchasing card for gas or other items for their personal vehicle. This is covered by the automobile allowance. • Gift cards for employees should never be purchased with the P card or any other payment method • Gift cards for giveaways or for non-employees are allowed as long as they are approved by City Manager Office (CMO) in advance. • Cash Advances 112 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 • Gifts for employees including but not limited to Christmas or other holidays or celebrations are prohibited with City funds except when: • Approved in advance by City Manager Office • Infrequent in nature • Non-cash items and • Alcohol and tobacco purchases (except for CMO, CVB and Economic Development) • Gratuities in excess of 20% unless approved by the department head. • Retirement gifts are permitted under $100. • Tips not added to gift card or to food purchases. • Payment for Services (e.g., repairs, consulting, maintenance): P-Cards may not be used to pay for services due to liability concerns and the potential need for a fully executed contract. Services often require detailed terms, insurance provisions, and risk mitigation that can only be addressed through a formal agreement approved by the City. All service-related purchases must go through the standard procurement process. k. Credit cards are not kept on file with a vendor unless it is an absolute requirement. l. All mobile payment apps including but not limited to Apple Pay, Google Pay, Samsung Pay, and Venmo or other similar services are strictly prohibited by employees when using the City issued Purchasing card. A mobile payment app used as a payment service for the purchase of a product or service through a portable electronic device such as a tablet or cell phone. PAYPAL is acceptable when it is the only form of payment allowed and detailed information regarding the purchase is available (i.e. itemized receipt). m. In no case shall a City Purchasing card be attached to personal apps, stored on a personal mobile device or saved on any websites. ● Staffing Responsibilities • Program Administrator - (Purchasing/PCard Administrator) The Program Administrator for the City of The Colony is the Purchasing/P-Card Administrator under the supervision of the Purchasing Manager. The Program Administrator has been designated by the City to answer questions, resolve problems and administer the program. This person will be knowledgeable on all procedures in the Cardholder User's Guide. All Purchasing card requests to JP Morgan Chase Bank must go through the Program Administrator. The Purchasing card must be returned to the Purchasing Department upon termination. If the employee is transferred to another department, the site administrator shall contact the Program Administrator to update the employee's information. • Department Directors The Department Director or equivalent, is responsible for designating all cardholders within the 113 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 department, departmental cardholder and is responsible for approving the cardholder's monthly purchasing card statements to ensure they adhere to the City's policies. Purchases in excess of $10,000.00 must adhere to the PO process as detailed in the Purchasing Policy. 114 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 ● Purchasing Card Controls • Single Purchase Limits A Single Purchase Limit (SPL) is the amount available on the Purchasing card for a single transaction. The SPL for most cards is $3,000. A transaction includes the purchase price, plus tax (if any) and freight. Purchases exceeding the cardholder's Single Purchase Limit will be declined. The City prohibits the use of repetitive transactions intended to circumvent the Single Purchase Limit. Card purchases audited to identify such transactions. Changes to the Single Purchase Limit by submitting P-Card increase/decrease form with proper authorization signature, processed through the Purchasing Manager. SPLIT PURCHASES IN ORDER TO AVOID THE LIMIT ARE STRICTLY PROHIBITED. • Monthly Purchase Limits The Monthly Purchase Limit on most cards is $3,000 but varies based upon departmental needs approved by the Finance Director and Purchasing Manager. This is the maximum amount available on the card per month. Any changes to the Monthly Purchase Limit must be approved by the Departmental Director and/or Finance Director. • Restricted Vendors The purchasing card program may be restricted for use with certain types of vendors and merchants. If a purchasing card presented for payment to these vendors, the authorization request will be declined. The City's Purchasing card is NOT to be used for alcohol, tobacco, or any personal purchases. Alcohol purchases are acceptable for certain departments as indicated in this policy. Variations from this portion of the policy must be approved by the Assistant City Manager and/or Finance Director. Any allowable meal purchases must include a list of names of persons participating in the meal along with the business purpose associated with the meal. • Security of the Purchasing Card The cardholder is responsible for the security of the card and all purchases. City policy prohibits loaning the purchasing cards to any other employee to make purchases. This card should be treated with the same level of care as the cardholder would use with his/her own personal charge cards. Guard the purchasing card account number carefully. Cards should not be left out in the work area or left in a conspicuous place. The only person authorized to use the purchasing card and account number is the cardholder whose name appears on the card or in the case of a departmental card, the user must be authorized/approved by the Department Supervisor. • Employee Liability Employees do not pay their own monthly statement. The program does not affect the individual employee's credit rating in any way. If the card is accidently used to purchase non-City business goods and services, notify Program Administrator immediately. 115 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 • Chip and Personal Identification Number ("PIN") Technology JP Morgan Chase Purchasing cards enabled with chip and PIN technology to help reduce the occurrence of fraud for in-person transactions. At the time of chip card activation, the program administrator shall choose a 4-digit PIN. The PIN shall be kept confidential by the cardholder with the same level of security the cardholder provides to the PIN on a personal debit card. A cardholder with a chip card who is later reissued a new chip card, PIN will remain the same unless there has been fraudulent activity and a new PIN is required. The PIN may not be required on all merchant transactions; however, if prompted, the cardholder must enter the 4-digit PIN to complete the transaction. • When traveling with the purchasing card please refer to the City Travel Policy. ● General Cardholder Guidelines Cardholders should promote and encourage positive interactions with suppliers. Honesty and courtesy are essential ingredients in all aspects of a buyer/supplier relationship. The City of The Colony promotes the use of local (The Colony) vendors whenever possible. All cardholders should follow these guidelines below when using the Purchasing card: • Determine if the transaction is an acceptable use of the card, and if it is within the cardholder's spending limit. Justify and defend every purchase. Identify the supplier and call, fax or visit the supplier to place the order. • If the order is by mail, specify cardholder name, company name, department name and shipping instructions. Also, specify the purchasing card number, expiration date and name as it appears on the card. • Inform the vendor the City is tax-exempt. Forward a copy of the tax- exempt form, if requested. Confirm the pricing and freight. Make sure the combination of both does not exceed the single transaction limit. • Request a copy of the pricing and freight be emailed or faxed to the cardholder and/or included in the shipment of supplies. Instruct the vendor not to send a copy of the itemized invoice to accounts payable to avoid duplicate payments. • Request the supplier indicates the employee's name and the words "Purchasing Card" on all packing lists and box labels. This will enable the receiving department to facilitate delivery of supplies. Shipments without this information may be refused and returned to the vendor. • Returns and Disputed Charges Should a problem arise with a purchased item, service or charges, the Cardholder should make every attempt to resolve the issue directly with the supplier. The Cardholder should note all returned, credited, or disputed items on their expense report. 116 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 A. Returns If an item needs to be returned to a supplier, the Cardholder must contact the supplier and obtain instructions for the return. Note some suppliers may charge a restocking or handling fee for returns. All returns indicated on the monthly p-card statement along with a notation of any restocking or handling fees. If the item is accepted as returned by the supplier, a credit for this item should appear on the following p-card monthly statement. B. Disputed Charges  Supplier Disputed Charges: If a cardholder finds a discrepancy on their statement, the cardholder should contact the supplier immediately. All disputed items indicated in the credit card report submitted to Finance.  Fraudulent Charges: If a cardholder finds a fraudulent charge on their statement, the cardholder should contact first contact the Program Administrator, if the Program Administrator is unavailable then contact JP Morgan Chase Bank immediately. Please call the number on the back of the card. The bank will ask a series of questions regarding the fraudulent charge, the bank will open a case and if the charges proven to be fraudulent the charge(s) will be credited back to the card. All fraudulent disputed items indicated in the credit card report. If a cardholder cannot resolve a disputed item directly with the vendor, the cardholder should contact JP Morgan Chase Bank at 1- 800-316-6056. The credit card vendor will place the charge in a "State of Dispute" and the account may be given a provisional credit until receipt of adequate documentation from the vendor. If the documentation appears to be in order, the transaction re- posted to the account and the dispute is considered closed. If the charge is suspected to be fraudulent, the card will be immediately blocked by JP Morgan Chase Bank, and an investigation of the charge will continue. A new card re-issued to the cardholder, if appropriate. Disputed charges must be handled in a timely manner in order to receive a credit. JP Morgan Chase Bank will not honor or try to help the City dispute transactions to merchants not reported on the proper form within 45 days of the date of the original transaction. If the City does not report the dispute within this time period, the City is responsible for the charge. Disputed charges processed as follows: • Once a discrepancy is detected, the cardholder should contact the supplier and attempt to resolve the problem. • If the cardholder and merchant can resolve the dispute, a credit is to be issued and should appear on the next billing cycle statement. • The cardholder should immediately advise the Program Administrator of the 117 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 disputed charge via e-mail. ● Purchasing Card Audits In addition to reviewing each transaction, the Finance Department conducts audits on all City departments throughout the fiscal year. The audit process evaluates compliance with the procedures outlined in the documents provided in this manual. Records audited in the following areas: • Completeness of records • Supporting documentation for each purpose • Sales tax paid and documentation of collection efforts Goods • Documentation of purpose • If requested, existence of items • Use of Purchasing cards for prohibited items or at restricted vendors Travel • Potential travel items may be crosschecked with accounting to verify expense reports were completed and sent to Finance Upon completion of an audit, a written report is completed and sent to the Department Director, Purchasing Manager, and/or Finance Director. The department shall provide a written response to the audit findings to the Finance Director. After review by Finance, a final report will be provided to the City Manager's Office. ● Consequences for Card Abuse Cardholders remember purchases are funded with taxpayer dollars. Therefore, it is imperative that the City's purchasing card program is above reproach. All transactions MUST BE strictly for work purposes and all documentation must be readily available. Any inappropriate use of the Purchasing card forwarded to the City Manager for disciplinary action up to and including termination. Offenses may include but are not limited to: Late or incomplete reconciliation documents including but not limited to missing itemized receipts, missing signatures, incomplete information, failure to resolve sales tax, loaning a card and/or PIN number to another person, and any other discrepancies within 3 days of notice by the Finance Department. Outstanding Purchase Card Transactions All employees will have 30 days to submit purchasing card documentation. It is the responsibility of the cardholder to complete and forward the forms for approval in a timely basis so Finance can review, approve and record the transactions in the General Ledger. If the Purchasing card transactions and approval(s) not submitted for review within 30 days, the card will be terminated. 118 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 For example, Card statement for November 5th – December 6th was sent to Card Holder on December 7th; the Payment Authorization must be submitted before January 6th so the card will not be terminated. NOTE: Unintentional mistakes resolved prior to the reconciliation process will not be considered as card misuse. Cardholders are further cautioned: In cases of more serious purchasing card abuse, the City may, at its sole discretion, select more severe disciplinary measures based on the nature of the offense. The policy outlined in this document does not supersede the Employee Manual or any Administrative orders related to Purchasing or Ethics. Purchasing cards may be suspended at any time at the discretion of the Department Director or City Manager’s Office if improper use is suspected. ● Sales Tax City of The Colony is exempt from most sales and use tax as allowed by law. Remind merchants sales tax should not be included in the transaction. The card does not automatically alert the merchant of the City's tax-exempt status. Cardholders must tell the merchants at the time of the transaction it is a tax-exempt purchase, and no tax is added to the sale. Cardholders should check the store receipt before leaving the store to ensure the sales tax is not included in the total. If added tax is applied to the sale, the cardholder will have the merchant credit the amount of the tax to the card. Employees are responsible for ensuring exemption from sales tax. When sales tax is charged on the receipt in error, it is the responsibility of the Cardholder to obtain a tax credit. Exceptions: Sales tax on restaurant meals, air travel and parking. The cardholder should seek an exemption on sales tax at these locations, however, understand the exemption may not be granted. Cardholders should provide the tax-exempt forms which are available from the Purchasing Manager, before the order is placed. City employees are not exempt from hotel lodging taxes. Note: In some special cases, the City is required to pay tax. If there are any doubts about the tax or if the vendor requires tax to be paid even if they have received the tax-exempt form, contact the Purchasing Manager for additional instructions. 119 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 ● Examples of Possible Violations 1) A purchase is required that will cost $4,999.99. The vendor has offered to bill $2,000 on one transaction and $3,550 on another in order to meet transaction limits. Is this a violation? Yes - this is considered to be splitting a transaction under Local Government Code 252.001 - Separate Purchases which are "Purchases made separately of items that, in normal practice, would be bought in one purchase." Remember, transactions exceeding $4,999.99 require a purchase order. 2) What if the vendor splits the transaction and I didn't know he was going to do it? Employees need to understand regardless of intent; these types of purchases will be "deemed" a violation. In this example, the employee would have already known the purchase exceeded $4,999.99 and should not have completed the transaction. On the other hand, if it is determined a vendor intentionally split credit card transactions to circumvent the restrictions on the card, the vendor may be disqualified from transacting business with the City in the future. 3) A department needs generators for field operations. They purchase four generators totaling $1,600 on Tuesday. On Wednesday and Thursday, they purchase an additional six generators totaling $1,400 and $1,200 respectively. Is this a violation? Yes - these types of transactions meet the definition of Sequential Purchases, which are "Purchases made over a period of time that, in normal purchasing practice, would be bought in one purchase." Employees need to understand regardless of intent; these purchases will be "deemed" a violation. 4) Merchandise has been ordered totaling $3,800. At the last minute, changes are deemed necessary that would raise the total of the order to $5,300. What should I do? Abandon the planned purchase with the Purchasing card and switch to the purchase order procedures (e.g. obtain three quotes) and complete a purchase requisition for this item. 5) A pump costing $4,750 is required to fix a water leak. The purchase is made and later in the afternoon it is necessary to return to the vendor for $500 worth of pipes/valves to complete the repair. Is this a violation? No - This is an example of unforeseen damage. In the process of a repair, it is possible more parts may be necessary than expected. Please document as thoroughly to ensure others reviewing this transaction in the future can see it was necessary. 6) While obtaining hotel reservations, taxes are included on the bill. Is this a violation? No - City employees are not exempt from hotel tax. Hotel tax requires payment. 120 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 X. Bid Procedures The purpose of the City of The Colony Bid Procedure policy is to ensure all purchase made by the City receive the most cost-effective and quality of product bid possible. Under no circumstances shall multiple requisitions be used in combination to avoid other applicable bidding requirements or City Council approval. To kick-off the process fill out the bid information worksheet found S:\City_Share\Purchasing and coordination between departments and purchasing will begin until final documentation is presented. ● Purchases more than $100,000.00 State law requires a municipality to use sealed competitive bids or competitive proposals for all purchases over the $100,000.00 limit and advertised at least twice before the bid opening. Bid opening will happen 14 days after the last advertising date. The City of The Colony advertises in the Dallas Morning News. The requesting department director and purchasing department will jointly write specifications or proposals for the sealed bid/proposals procedure. When the bid/proposals have been received and reviewed to ensure compliance with the bid requirements and specifications, the department director will make his/her recommendation. The recommendation will be presented to the City Council and they will consider awarding the contract. The Purchasing Department is responsible for soliciting offers for bid purchases of $100,000.00 or more and for providing the requesting department with all bid information and tabulations. Bid packet submitted to purchasing for advertisement processing to Dallas Morning News no later than 4:00PM Tuesday of the week for advertising. ● Texas Codes Annotated Local Government • Section 252.062 I. Criminal Penalties • A municipal officer or employee commits an offense if the officer or employee intentionally or knowingly makes or authorizes separate, sequential, or component purchases to avoid the competitive bidding requirements of Section 252.021. An offense under this subsection is a Class B misdemeanor. • A municipal officer or employee commits an offense if the officer or employee intentionally or knowingly violates Section 252.021, other than by conduct described by Subsection (A). An offense under this subsection is a Class B misdemeanor. • A municipal officer or employee commits an offense if the officer or employee intentionally or knowingly violates this chapter, other than by conduct described by Subsection (A) or (B). An offense under this subsection is a Class C misdemeanor. 121 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 • Section 252.063. Removal; Ineligibility The final conviction of a municipal officer or employee for an offense under Section 252.062 (a) or (b) results in the immediate removal from office or employment of that person. For four years after the date of the final conviction, the removed officer or employee is ineligible: • To be a candidate for or to be appointed or elected to a public office in this state. • To be employed by the municipality with which the person served when the offense occurred, or to receive any compensation through a contract with that municipality. • This section does not prohibit the payment of retirement or workers compensation benefits to the removed officer or employee. • Section 252.021. Competitive Bidding and Competitive Proposal Requirements Before a municipality may enter into a contract requires an expenditure of more than $49,999.99 from one or more municipal funds, the municipality must comply with the procedure prescribed by this chapter for competitive sealed bidding or competitive sealed proposals. The municipality may use the competitive sealed proposal procedure for high technology purchases, insurance and other services as required. XI. Formal Bids All purchases for an item or items whose aggregate total cost will be over $100,000.00 must be processed as formal bids. Under no circumstances will Purchase Requisitions be split to avoid the requirement for City Council approval, which is required for all purchases over $100,000.00.  Sealed Bid or Proposal Procedures It is the policy of the City of The Colony to use a sealed bid proposal or design/build procedure in compliance with Chapter 252 (Purchasing and Contracting Authority of Municipalities) of the State of Texas Local Government Code for any Purchasing which will total $100,000.00 or more. The Purchasing Manager will prepare and solicit all purchases requiring sealed bids. The competitive bidding process has three key purposes: • Competitive solicitations for bids help ensure the best available value for funds spent and help ensure public funds are used appropriately, according to law and only for public projects. • The bidding process also gives an equal opportunity to those qualified and responsible vendors who want to do business with the government. • A standard bidding procedure assures public money properly safeguarded. 122 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145  Requirements Under State Law Before a city may enter into a contract requires an expenditure of more than $100,000.00 from one or more municipal funds, the city must Comply with certain statutory procedures for competitive and sealed bidding or competitive sealed proposals when purchasing goods or services, including high technology items or insurance, and comply with required prescribed methods of construction Purchasing.  Advertising and Advertising Time Requirements Local Government Code requires the sealed bid to be advertised publicly with notice of the time and place at which the bids will be publicly opened and read aloud. The public notice must be published at least once a week for two consecutive weeks in a newspaper published in the municipality that is listed as the City's paper of record. The date of the first publication must be before the 14th day before the date set to publicly open the bids. In addition to the paper of record, the City, at its option may also advertise with other publications and/or organizations. Advertising notices for proposed purchases must include: Requirements or specifications, or statement of where the requirements or specifications obtained, location and time for receiving and opening solicitations, and name and position of the employee who receives returned solicitations. Bid packet submitted to purchasing for advertisement processing to Dallas Morning News no later than 4:00PM Tuesday of the week for advertising.  Bid Specifications All sealed bids must include complete and detailed specifications of the item or items and/or services to be purchased. THE CREATION AND SUBMISSION OF SPECIFICATIONS IS THE SOLE RESPONSIBILITY OF THE USER DEPARTMENT. Purchasing will assist the user department in any way necessary, will not be responsible for the final content of the specifications. Purchasing is responsible for all remaining parts of the bids/proposals terms, conditions and document requirements including any legal terminology required by law.  Bid Preparation and Administration All sealed bids and proposals will be prepared and administered by the Purchasing Manager. Purchasing will be responsible for posting the bids on the City's website to ensure all bid information is available on the website. The bid number will be assigned by the Purchasing Manager and advertising dates, pre-bid meeting dates and the bid opening date coordinated with Purchasing. 123 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 The Purchasing Manager or their designee will be responsible for the bid opening and reading of the bids received. Once opened, a pre-audit bid tabulation will be created. Once bid tabulation is completed, the tabulation along with all bids sent to the initiating department for review and signature approving tabulation. When all bids have been reviewed, the initiating department will be responsible for submitting to purchasing a WRITTEN recommendation of bid award and background wording to be included in the agenda memo to the City Council.  Bid Opening and Pre-Bid Procedures In order to establish a standardized format for pre-bid and bid opening meetings the following procedures should be adhered to: • The Purchasing Manager shall conduct all pre-bid and bid opening meetings. • In addition to the Purchasing Manager, or the Purchasing Manager's representative, there will be at least one City employee from the department who submitted the purchase request at all pre- bid and bid opening meetings. This employee will be knowledgeable of the bid specifications and at pre-bid meeting should be prepared to answer all questions pertain to the specifications. At bid openings the purchasing employee will as the recorder of all information read at the bid opening and will publicly confirm all information was read completely and truthfully. At the bid opening, all bids will be opened, and all pricing will be called out in accordance with the bid opening regulations.  Bid Recommendations and State Law Regarding Bid Awards The requesting department is solely responsible for reviewing the specifications offered in each bid to ensure the specifications meet the bid requirements and must provide a written review of any bid not met the specifications. If the bids offered meet the specifications requested, the recommendation may be made based on the procedures set out in the State of Texas Local Government Code Chapter 252, Sub Chapter C, 252.043. Under this chapter entitled Award of Contract, the City may award the contract based on: • Sub-section (a) of the competitive sealed bidding requirement applies to the contract for goods or services, the contract must be awarded to the lowest responsible bidder or the bidder who provides goods or services at the best value for the municipality. • Sub-section (b) in determining the Best Value for the municipality, the municipality may consider: • The purchase price; • The reputation of the bidder and of the bidder's goods and services; • The quality of the bidder's goods and services; • The extent to which the goods or services meet the municipality needs; • The bidder's past relationship with the municipality; • The impact on the ability of the municipality to comply with laws and rules relating to contracting with historically underutilized businesses and non- profit organizations employing persons with disabilities; • The total long-term cost to the municipality to acquire the bidder's goods or services; • Any relevant criteria specifically listed in the request for bids or proposals. 124 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 • Sub-section (c) Before awarding a contract under this section, a municipality must indicate in the bid specifications and requirements that the contract may be awarded either to the lowest responsible bidder or the bidder who provides goods or services at the best value for the municipality. XII. Request for Proposals The competitive bidding procedure as provided herein shall be used for the award of all contracts subject to the provision of this section, except in the case of High Technology purchases in the City may follow the competitive sealed proposal procedure. High Technology as defined in Local Government Code Section 252.001 is as follows: The term "high technology Purchasing" means the Purchasing of equipment, goods, or services of a highly technical nature, including but not limited to: information processing equipment, telecommunications equipment, radio and microwave systems, electronic distributed control systems (including building energy management systems) as well as technical services related to such equipment and goods. XIII. Procedures for Request For Proposals are as follows  All requests for items to be purchased by Request for Proposal (RFP) must follow the same procedure as any other request for item(s) estimated to cost over $100,000.00.  Public notice (newspaper advertisements) is made in the same manner as those for competitive sealed bidding, except the ads will state the proposals will be publicly opened.  The request for proposals shall specify the relative importance of price and other evaluation factors and the awareness of the contract shall be made to the responsible offer on whose proposal is determined to be the most advantageous to the City, taking into consideration the relative importance of price and other evaluation factors set forth in the Request for Proposals. The RFP may contain a "scope of work" and request a "statement of work".  Discussions in accordance with the terms of a request for proposals and with regulations adopted by the governing body of the municipality may be conducted with offerors who submit proposals and who are determined to be reasonably qualified for the award of the contract. Offerors shall be treated fairly and equally with respect to any opportunity for discussion and revision of proposals. To obtain the best final offers, revisions may be permitted after submissions and before the award of the contract.  Sub-section (h) of the competitive sealed proposals requirement applies to the contract; the contract must be awarded to the responsible offer who proposal determined to be the most advantageous to the municipality considering the relative importance of price and the other evaluation factors included in the request for proposals. 125 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145  In addition, under the State of Texas Local Government Code Chapter 271, Sub Chapter 271.9051 a municipality may consider a bidder's principal place of business. Other considerations for a bid award may be: • The safety record of the bidder; • Companies or individuals indebted to the municipality; • Inclusion of required bonding and insurance; • Any other consideration as listed in the State of Texas Local Government Code. XIV. Confidentiality of Information in Bids or Proposals • Trade secrets and confidential information in competitive sealed bids are not open for public inspection. • If provided in a request for proposals, proposals shall be opened in a manner that avoids disclosure of the contents of competing offerors and keeps the proposals secret during negotiations. • Texas Government Code Chapter 252 - All proposals are open for public inspection after the contract is awarded, but trade secrets and confidential information in the proposals are not open for public inspection. XV. Request for Qualifications (RFQ) – The Professional Services Purchasing Texas Government Code Chapter 2254 defines a specific procedure the City must follow before awarding a contract for professional services provided by a certified public accountant; architect; land surveyor; physician or surgeon; optometrist; registered nurse; forensic analyst or forensic science expert; real estate appraiser; professional engineer or interior design. The City must make the award based on demonstrated competence and qualifications to perform the services. The City shall first select the most highly qualified provider, then attempt to negotiate with the provider a contract for a fair and reasonable price. Texas Government Code Title 10, Chapter 2254. Professional Services are defined as the following: accounting, architecture, landscape architecture, land surveying, medicine, optometry, professional engineering, real estate appraising, or professional nursing, forensic science, provided in connection with the professional employment or the practice of a person licensed or registered as a certified public accountant, architect, landscape architect, land surveyor, a physician (including a surgeon), an optometrist, a professional engineer, state certified or state licensed real estate appraiser, a registered nurse or a forensic analyst or forensic expert provided by a person lawfully engaged in interior design, regardless of whether the person is registered as an interior designer under Chapter 1053, Occupations Code. Personal and professional services are exempted from the competitive bidding process and are procured through the use of Request for Qualifications (RFQ) documents. Purchasing is available to consult with departments regarding the preparation of information; however, the presentation of technical and qualifications aspects of personal and/or professional services included in the RFQ documents is the sole responsibility of the requesting department. 126 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 A. Professional Services rendered by members of a recognized profession as defined by Texas Government Code Sec. 2254.002 or who possess special skills, which are mainly mental or intellectual, rather than physical or manual. Texas Local Government Code Sec. 252.022(a) (4) exempts professional services from competitive bidding requirements. B. Consulting Services The service of studying or advising the City under a contract does not involve the traditional relationship of employer and employee. XVI. State Contracts and Interlocal Agreements As provided in Section 271.083 of the Local Government Code, the City may buy items from State contracts. This section of the Code requires local governments to designate a single point of contract (SPOC) to process orders. Purchasing is the only designated representative (SPOC) authorized to process requisitions with the State General Services Commission. Some Federal (GSA) contracts offered through the State may be used by the City without need for competitive bidding. In all cases involving cooperative purchasing programs, the Purchasing Department will assist in obtaining comparative pricing to ensure the best value is obtained for the City. XVII. Interlocal Agreements As provided in Chapter 791, Texas Government Code and Chapter 271.102 of the Local Government Code, the City may enter into an Interlocal agreement with another public entity in the United States for the purposes of pooling resources to obtain favorable pricing for goods and services. Interlocal Agreement and Cooperative purchases require City Council approval if exceeding $100,000.00. XVIII. Other Cooperative Purchasing Programs Purchasing has established several cooperative purchasing agreements with many public entities (State and City) approved by City Council. Among them are the Houston-Galveston Area Council of Governments (HGAC), Omnia Partners, the Local Government Purchasing Cooperative (Buy Board), and others. Complete list of Cooperative Purchasing agreements may be found at S drive> City Share> Purchasing> Interlocal Agreement folder. All agreements are established for the purpose of achieving maximum savings to the City throughpooling economic buying power. A purchase from an approved cooperative satisfies the requirement for competitive bidding. XIX. Disaster Purchases In the event of a tornado, flood, civil riot, or other declared disaster, the City may need to temporarily adjust its purchasing procedures to meet the needs of the residents. Purchasing will strive to make sure purchases meet the federal guidelines outlined in 2 CFR 200.317-326. Purchases not following the guidelines in this set of regulations may not be eligible for FEMA reimbursement. 127 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 Purchasing will take the following actions when making purchases submitted to FEMA for reimbursement. (This list is not all-inclusive):  Carefully document each purchase.  Include the method used to obtain the good or service.  Include the vendors who were contacted for a quote.  Include HUB vendors in the bidding process.  Include the advertisement.  Include the justification for a particular vendor's selection. Maintain oversight of contractors to ensure their performance is in accordance with the terms, conditions, and specifications of the contract or purchase order. Avoid the acquisition of duplicative or unnecessary items. Use excess or surplus property in lieu of purchasing new equipment and property wherever possible whenever such use is feasible and reduces project costs. Use Value Engineering clauses in construction contracts to allow for reasonable opportunities for cost reductions. Purchases must be conducted in a manner that allows for full and open competition. Small purchases of up to$100,000.00 must be awarded to the lowest responsible bidder. Three (3) or more quotes must be obtained, and HUB vendors must be invited to provide a quote. Larger purchases of $100,000.00 or more are subject to competitive bids or proposals. The City will follow the guidelines set forth in 2 CFR 200.317-326 to ensure that all processes are documented and all responsible bidders have the opportunity to participate. No employee, officer, or manager may participate in the selection, award, or administration of a contract supported by a federal award (FEMA) if they have a real perceived conflict of interest. Purchase may be made using Texas-based cooperative contracts, however, purchasing must provide FEMA with proof the contract was bid and awarded in accordance with 2 CFR 200.317-326 in order to obtain reimbursement. Piggyback contracts are generally not eligible for FEMA reimbursement. These should be avoided when making purchases following a disaster. Non-competitive (sole source) purchases are permitted under the following conditions:  The item is available only from a single source.  The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation. The Federal awarding agency or pass-through entity expressly authorizes non-competitive proposals in response to a written request from the City of The Colony. After a solicitation of a number of sources, competition is deemed inadequate. City will have as many pre- disaster contracts in place as possible in order to be prepared for a catastrophic event. These contracts will be current, and purchasing will provide all required documentation to FEMA upon request. 128 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 XX. State Law Regarding Historically Underutilized Business Enterprises Under the Local Government Code, Historically Underutilized Businesses (HUB) requires the City send quotations to at least two HUB businesses for all purchases total between $10,000.00 and $100,000.00, if available. The business must be listed on the State's HUB list https://mycpa.cpa.state.tx.us/tpasscmblsearch/ Local Government Code requires all Texas governmental entities to contact at least two (2) disadvantaged businesses on a rotating basis when making any expenditure of more than $10,000.00 but less than$100,000.00. The disadvantaged businesses contacted must be based on information provided by the Office of Small Business Assistance of the Texas Department of Commerce. If the list fails to identify a disadvantaged business in the county in which the City is situated, or if the purchase declared as an emergency, the City is exempt from this requirement. XXI. Exemptions from the Competitive Sealed Bid Process State of Texas Local Government Code Section 252.022 General Exemptions allows certain exemptions to the Competitive Sealed Bid.  Purchasing made because of a public calamity requires the immediate appropriation of money to relieve the necessity of the municipality's residents or to preserve the property of the municipality.  Purchasing necessary to preserve or protect the public health or safety of the municipality's residents.  Purchasing necessary because of unforeseen damage to public machinery, equipment, or other property.  Purchasing for personal, professional, or planning services.  Purchasing for work performed and paid for by the day as the work progresses.  Purchase of land or right-of-way.  Purchasing of items that are available from only one source, including: • Patents, copyrights, secret processes, or natural monopolies; • Films, manuscripts, or books; • Gas, water and other utility services; • Captive replacement parts or components for equipment; • Books, papers, and other library materials for a public library that are only from persons holding exclusive distribution rights to the materials; and • Management services provided by a nonprofit organization to a municipal museum, park, zoo, or other facility to which the organization has provided significant financial or other benefits. 129 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145  Purchase of rare books, papers, and other library materials for a public library.  Paving, drainage, street widening, and other public improvements, or related matters, if at least one-third of the cost is to be paid by or through special assessments levied on property that will benefit from the improvements.  A public improvement project, already in progress, authorized by the voters of the municipality, for which there is a deficiency of funds for completing the project in accordance with the plans and purposes authorized by the voters.  A payment under a contract by which a developer participates in the construction of a public improvement as provided by Subchapter C, Chapter 212.  Personal property sold: 1. At an auction by a state licensed auctioneer; 2. At a going out of business sale held in compliance with Subchapter F, Chapter 17, Business and Commerce Code; 3. By a political sub-department of this state, a state agency of this state, or an entity of the federal government; or 4. Under a lnter-local contract for cooperative purchasing administered by a regional planning commission established under Chapter 391.  Services performed by blind or severely disabled persons.  Goods purchased by a municipality for subsequent retail sale by the municipality.  Electricity  Advertising, other than legal notices. This chapter does not apply to bonds or warrants issued under Subchapter A, Chapter 571. This chapter does not apply to expenditures by a municipally owned electric or gas utility or unbundled Departments of a municipally owned electric or gas utility in connection with any purchases by the municipally owned utility or Departments of a municipally owned utility made in accordance with Purchasing procedures adopted by a resolution of the body vested with authority for management and operation of the municipally owned utility or its departments that sets out the public purpose to be achieved by those procedures. This subsection may not be deeded to exempt a municipally owned utility from any other applicable statute, charter provision, or ordinance. This chapter does not apply to an expenditure described by Section 252.021(a) if the governing body of a municipality determines that a method described by Subchapter H, Chapter 271, provides a better value for the municipality with respect to the expenditure than the procedures described in this chapter and the municipality adopts and uses a method described in that subchapter with respect to the expenditure. 130 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 XXII. Brand Name or Equal Specifications Brand name specifications list a good or service by brand name, model and other identifying specifications to limit the bidding to a single preferred product. This type of specification discourages competition and should be avoided unless the item is the only one that will satisfy the City's requirements. It is useful when purchasing replacement parts where only the brand name item will work. It should be noted that the City might have to explain in a court of law why another brand will not work, so this type of specification should be used judiciously. Equal specifications are similar to brand name specifications, except that equal products are acceptable in place of the named brand. XXIII. Bonding Requirements Bids may be subject to bonding requirements. Typically, a bid bond is required for all The Colony projects or on bids exceeding a specified dollar level, unless City Manager Office states otherwise. This ensures if the bidder attempts to withdraw after the bid is accepted, the City will not suffer loss. In Texas, the successful bidder on a public works contract exceeding a dollar level set by law must post a performance bond. The successful bidder on any other contract exceeding certain dollar levels may have to post a performance bond if required by the City. Surety companies authorized to do business in this State should execute the bonds and be verified by The Colony staff or consultants. The City should always consider the ramifications in deciding whether to require a bond when there is a choice. If there is a substantial risk of loss, a bond should be required. The cost of bonding will undoubtedly be passed along in the contract price.  Bid Bonds Bid Bonds guarantee that if the City accepts a bid, the contractor will take the job. Each bid shall be accompanied by an acceptable bid bond issued by a surety licensed to conduct business in the State of Texas in the amount of 5% of the greatest total amount of Bid. Bid security shall be made payable to, and shall revert to, the City of The Colony in the event the successful Bidder shall fail to execute the contract and/or Performance and Payments Bonds, if required, within fifteen (15) days after receipt of the contract for execution. The City of The Colony reserves the right to retain the Bid Security of the next two lowest bidders until low bidder enters into contract or until 120 days after bid opening, whichever is shorter. All other bid security will be returned as soon as practicable. If a Bidder refuses to enter into a contract, the City of The Colony will retain the Bid Security as liquidated damages, but not as a penalty.  Payment Bond A payment bond says the contractor will make all necessary payments to subcontractors and suppliers It is the security executed by the contractor and the Surety, furnished to the City to guarantee payment of all legal debts of the contractor pertaining to the contract. The Texas Government Code mandates that a municipality contracting for public work in excess of $100,000.00 shall require its contractor to execute a payment bond. 131 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145  Performance Bond A Performance bond says the project will be finished according to the terms of the contract. It is the security executed by the contractor and the Surety, furnished to the City to guarantee the completion of the work in accordance with the terms of the contract. A performance bond is required if the total contract price exceeds $100,000. The contractor shall guarantee all public improvements for a period of two (2) years after the date of final acceptance by the City. A maintenance bond shall be in an amount equal to twenty-five (25) percent of the cost of construction.  Maintenance Bond Maintenance bonds, otherwise known as warranty bonds, protect the Obligee (Owner) of a completed construction project from defects beyond the end of the specified warranty period. Frequently mistaken for insurance, maintenance bonds are not insurance policies. XXIV. Insurance Requirements Whenever the City contracts with an outside party (Contractor, consultant or vendor) for goods or services, the bid or request for proposal that is released to the public should include the indemnity clause (hold harmless clause), along with a contractual agreement to be executed on award of the contract that transfers the risk of the project from the City to the contractor. Because the contractor may or may not have the financial resources to handle the risks transferred in the contract, the City may require insurance be purchased and maintained by the contractor for financial security. Most contracts are tailored for individual projects and programs; therefore, certain elements of the insurance required should be addressed in every contract document. One of the most important elements is the actual insurance coverage, which includes the coverage types and limits dependent upon the nature of the project program. Although not all types and levels of insurance are required for every project (and limits will vary by exposure), understanding the coverages provided by these policies is important to assure all of the City's potential liabilities and exposures from the project are property protected. Should any questions arise about the amounts and types of insurance requirements the initiating department should contact the Purchasing Manager. XXV. Insurance Insurance shall be maintained by the contractor/vendor in accordance with the following: Except as otherwise specified in the contract, the contractor and their subcontractors of any tier are required to maintain insurance coverage with policy limits not less than those set forth in this policy. They are also required to always maintain this coverage at their own expense during the performance of the work. It shall be the responsibility of the contractor and any subcontractors to maintain adequate insurance coverage and to ensure all subcontractors are adequately covered at all times. Failure of the contractor and his subcontractors to maintain adequate coverage shall not relieve them of any contractual responsibility of obligation. 132 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 CERTIFICATES OF INSURANCE Prior to commencing work and at the time of execution of the contract and each subcontract, the contractor and his subcontractors shall furnish the City of The Colony with certificates of insurance as evidence the policies providing the required coverage and limits of insurance are in full force and effect. The certificates of insurance shall name the City as an additional insured where applicable on both Automobile and General Liability policies. The certificates shall provide any company issuing an insurance policy for the work under contract shall provide, in writing, no less than 30 days' advance notice of cancellation, nonrenewal, or material change in the policy of insurance. In addition, the contractor shall immediately provide written notice to the City of The Colony when a decision to cancel, terminate, or alter any insurance policy. Certificates of insurance for contractor and subcontractor-furnished insurance and notices or cancellations, terminations, or alterations of such policies shall be mailed to: Purchasing City of The Colony 6800 Main Street The Colony, TX 75056 COMMERCIAL GENERAL LIABILITY This insurance shall be an "occurrence" type policy written in comprehensive form and shall protect the contractor, their subcontractors, and the additionally insured against claims arising from bodily injury, sickness, disease or death of any person other than the contractor's employees, as well as damage to property of the City of The Colony or others arising out of an act of omission of the contractor, subcontractor, or their Managers or employees. This policy shall also cover Premises, Operations, Independent Contractors, Products/completed operations, Personal Injury, Contractual Liability, Damage to property rented by the City. The liability shall not be less than: General Aggregate: $2,000,000 Bodily Injury and Property Damage Each Occurrence: $1,000,000 Products and Completed Operations Aggregate: $2,000,000 BUSINESS AUTOMOBILE LIABILITY This insurance shall be written in the comprehensive form and shall protect the contractor and his subcontractors and the additional insured against all claims of others arising from the use of motor vehicles, whether they are owned, non-owned, or hired. The limit of liability shall not be less than: Bodily Injury: $500,000 per person $1,000,000 per occurrence Property Damage: $100,000 Or Combined Single limit: $1,000,000 133 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 It is understood the purpose of the insurance required is to cover any liability that may result, not only against the contractor/vendor but also against the City, as a result of contractor/vendor performance of a contract or work performed within the City of The Colony. Therefore, such insurance shall not include any exclusion, which may be relied upon to cause the City not to be covered. Generally, the insurance coverage provided by a company rated A+ or A in the current Best Key Rating Guides. All insurance other than Worker's Compensation shall be of the occurrence type. WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY The insurance shall protect the contractor and the subcontractors against all claims under applicable state works' compensation laws. The insured shall agree to hold the City harmless from claims for injury, disease, or death of employees which, for any reason, may not fall within the provision of workers' compensation law. The limits carried under part two, Employers Liability shall be: Bodily Injury by Accident $1,000,000 Each Accident Bodily Injury by Disease $1,000,000 Each Employee Bodily Injury by Disease $1,000,000 Policy Limit INDEMNIFICATION For the consideration included in the bid price, the contractor and their subcontractors shall pay, indemnify, and hold harmless the City, its Managers, guests, consultants, invitees, and employees for all suits, actions, claims, demands, damages, losses, expenses, including attorney fees, court costs and judgement of every kind and description to with the City, its Managers, guests, consultants, invitees, or employees may be subjected to by property damage; reason of injury to persons; death; omission; negligence or gault of the contractor, its subcontractors, their Managers, or employees committed in connection with this contract, contractor's performance hereof or any work performed hereunder. The contractor and his subcontractor shall indemnify and hold harmless the City, its Managers, employees and consultants \including the Engineer), from and against all claims, demands, actions, suits, damages, losses, expenses, costs including attorney fees, court costs and judgements of every kind and description arising from, based up on, or arising out of the violation of any federal, state, country, or city law, bylaw, ordinance or regulation by the contractor, its Managers, trainees, invitees, servants, and employees. WAIVER OF SUBROGATION The contractor and his subcontractors shall require their insurance carrier, with respect to all insurance policies, to waive all rights of subrogation against the City of The Colony, its commissioners, partners, officials, directors, officers, Managers and employees and against all other contractors and subcontractors. 134 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 CONTRACTOR SAFETY SPECIFICATIONS City safety personnel or any supervisor may, but is not required to, order work be stopped if a condition of immediate danger is found to exist. Nothing contained herein shall be construed to shift responsibility or risk of loss for injuries or damage sustained as a result of a violation of the Article from the contractor to the City of The Colony, its employees or Managers. The contractor shall remain solely and exclusively responsible for compliance with all safety requirements and for the safety of all persons and property at the project site. The parties hereto expressly agree the obligation to comply with applicable safety provisions is a material provision of the contract and a duty of the contractor. The City of The Colony reserves the right to require demonstration of compliance upon reasonable request. In the event the contractor is unable to demonstrate compliance with the safety provisions of the contract, the parties agree that such failure is deemed to be a material breach of agreement; and the contractor agrees that upon such breach, all work pursuant to the contract shall terminate until demonstration to the City of The Colony that the safety provisions of the agreement have been complied with. In no event shall action or failure to act on the part of the City of The Colony be construed as a duty to enforce the safety provisions of the agreement nor shall it be construed to create liability for the city, its employees or Managers, for any act or failure to act in respect to the safety provisions of the agreement. Safety Equipment - The contractor shall be responsible for the safety equipment to be used by its employees and/or all of its subcontractors working on the City of The Colony's property. This equipment will include, but may not be limited to, hard hats, safety belts or harnesses, eye, face, hand, ear, or hearing protection. Sport or athletic type shoes not considered suitable work shoes on any construction site. Purchasing Subject to Federal Funding The United States Office of Management and Budget (0MB) issued the Uniform Guidance, which reforms rules applicable to entities receiving federal grant funding by streamlining and superseding eight 0MB circulars (A-21, A-87, A-122, A-110, A-102, A- 133, A-50 and A-89). The new Purchasing standards are found in Subpart D: Post Federal Award Requirements: 2 CFR §200.317 through §200.326 and became effective December 26, 2014. The 0MB issued addenda to the Uniform Guidance, including its final addendum on May 17, 2017, indicating implementation of the new Purchasing standards and following the OMB's prior guidance during the allotted grace periods. The new Purchasing standards will apply to new and incrementally funded awards, and implementation will commence on October 1, 2019. A. Notice of Adoption The City of The Colony elected to utilize the extension offered by the United States Office of Management and Budget (0MB) for implementation of the new Purchasing standards accompany the Uniform Guidance. Per an addendum issued by the 0MB on May 17, 2017, the new standards will apply starting with fiscal years beginning on or after October 1, 2018, thereby applying to the City in Fiscal Year 2020. B. Compliance In compliance with Federal and State rules, all local government purchasing entities are required to check the list of vendors excluded from doing business at the federal level by utilizing the federal Excluded Persons List System (EPLSJ. No contract awarded to any person/entity listed on the EPLS system. 135 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 Users can access the EPLS system at www.sam.gov to perform a search for excluded vendors or contact purchasing for assistance. NOTE: This requirement is mandatory for any Purchasing transaction regardless of funding stream. C. Additional Standards In addition to the City's adopted procedures described above, which are incorporated herein by reference, the City shall abide by the following purchasing procedures applicable to Purchasing subject to federal funding as referenced in 2 C.F.R. 200: Uniform Administrative Requirements, Cost Principals and Audit Requirements for Federal Awards (Uniform Guidance), which is hereby incorporated by reference. Compliance Requirements - Purchasing The following is an overview of the Purchasing standards and procedures applicable when procuring property and services under a Federal award in accordance with 2 CFR §200.317 through §200.326, which are hereby incorporated by reference. The City, as a non-Federal entity other than State, will follow §200.318 General Purchasing standards through §200.326 Contract provisions. [See §200.317]. A. Purchasing Procedures The City will use its own documented Purchasing procedures, which reflect applicable State and local laws and regulations, provided the purchases conform to applicable Federal statutes and the Purchasing requirements identified in 2 CFR part 200. [See §200.318(a)]. B. Conflicts of Interest/Standards of Conduct The City will maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. 1. No employee, officer, or Manager may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or Manager, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. 2. Officers, employees, and Managers of the City may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. However, non-Federal entities may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value. 136 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 3. If the City has a parent, affiliate, or subsidiary organization not a state, local government, or Indian tribe, the City will also maintain written standards of conduct covering organizational conflicts of interest. Organizational conflicts of interest mean that because of relationships with a parent company, affiliate, or subsidiary organization, the City is unable or appears to be unable to be impartial in conducting a Purchasing action involving a related organization. 4. The City will disclose any potential conflicts of interest in writing to the Federal awarding agency or pass-through entity in accordance with applicable Federal awarding agency policy. [See 2 CFR §200.112]. Additionally, the City will disclose, in a timely manner, in writing to the Federal awarding agency or pass-through entity all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal award. Further, if applicable, the City will make post-award reports as provided by Appendix XII to Part 200. Failure to make a required disclosure may result in any number of significant remedies, including suspension or debarment. [See 2 CFR §§200.113 & 200.338]. 5. Violations of this policy may result in disciplinary action consistent with City disciplinary policy, including but not limited to dismissal. Further, violations referred to the appropriate law enforcement agency for investigation and possible prosecution. C. Oversight Once the Contract is awarded, oversight must be maintained to ensure contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. All proposed purchasing actions reviewed to avoid the purchase of unnecessary or duplicative items. Where applicable, consideration is given to consolidating or breaking out Purchasing to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. D. State and Local Intergovernmental Agreements The City may enter into state and local intergovernmental agreements where appropriate for Purchasing or use of common or shared goods and services. [See §200.318(e)] Federal excess and surplus property may be used in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs. [See §200.318(()] E. Construction Project Contracts Construction project contracts of sufficient size may use value engineering clauses, as defined in §200.318(g) to offer reasonable opportunities for cost reductions. 137 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 F. Awarding Contracts Contracts awarded only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed Purchasing. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources, as well as whether the contractor is suspended or debarred from receiving federal funds. [See §200.318(h)]. The City will maintain records sufficient to detail the history of Purchasing in accordance with §200.318(i). The City, in accordance with provisions set forth in §200.3180), may use a time and materials type contract only after a determination no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. G. Contract Disputes The City alone shall be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of Purchasing pursuant to provisions set forth in §200.318(k). H. Competition All Purchasing transactions will be conducted in a manner providing full and open competition consistent with the standards of §200.319. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals excluded from competing for such purchasing. Some of the situations considered restrictive of competition include but are not limited to: 1. Placing unreasonable requirements on firms in order for them to qualify to do business; 2. Requiring unnecessary experience and excessive bonding; 3. Noncompetitive pricing practices between firms or between affiliated companies; 4. Noncompetitive contracts to consultants that are on retainer contracts; 5. Organizational conflicts of interest; 6. Specifying only a "brand name" product instead of allowing "an equal" product to be offered and describing the performance or other relevant requirements of the Purchasing; and 7. Any arbitrary action in the Purchasing process. §200.319(a) I. Geographical Limitation Unless specifically excepted as provided in §200.319(b), the City will conduct Purchasing in a manner that prohibits the use of statutorily or administratively imposed state or local geographical preferences in the evaluation of bids or proposals. 138 City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 J. Procedure Requirements In accordance with the provisions indicated in §200.319(c), the City's written procedures for Purchasing transactions shall incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured and include all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals. All prequalified lists of persons, firms, or products which are used in acquiring goods and services shall be kept current and include enough qualified sources to ensure maximum open and free competition, and potential bidders will not be precluded from qualifying during the solicitation period. [See §200.319(d)]. K. Methods of Purchasing with Federal Funds The City will use one of the following five Purchasing methods as discussed in 2 CFR §200.320 when making purchases with federal funds. Should State or local Purchasing requirements applicable to a purchase with federal funds be more restrictive than Federal requirements, the more restrictive requirements or methods will be followed. The type of Purchasing process to use will depend on the cost and type of services or item(s) being purchased: • Micro-purchase • Small purchase procedures • Sealed bids • Competitive proposals • Noncompetitive proposals (sole source) L. Contracting with Small and Minority Businesses, Women's Business Enterprises, and Labor Surplus Area Firms The City takes all necessary affirmative steps as described in §200.321 to assure minority businesses, women's business enterprises, and labor surplus area firms are used when possible. M. Purchasing of Recovered Materials If applicable, the City and its contractors will comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. [See §200.322]. This provision applies to a non-Federal entity that is a state agency or an agency of a political sub-department and its contractors. N. Contract Cost and Price The City will abide by the provisions of §200.323 including, but not limited to performing a cost or price analysis and negotiating profit as discussed therein. Federal Awarding Agency or Pass-Through Entity Review In accordance with §200.324, the City will make available upon request from the Federal awarding agency or pass-through entity: A. Technical specifications on proposed Purchasing where the Federal awarding agency or pass- through entity believes such review needed to ensure the item or service specified one being proposed for acquisition 139 PURCHASING PROCESS CHECKLIST City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 B. Purchasing documents, such as requests for proposals or invitations for bids, or independent cost estimates, for pre-Purchasing review, under the circumstances listed therein. Additionally, §200.326(c) provides an exemption to the pre-purchasing review if it is determined Purchasing systems comply with the standards of this part. To this end, the City may request Purchasing system be reviewed by the Federal awarding agency or pass-through entity to determine whether the system meets federal standards in order for the system to be certified; or the City may also self-certify its Purchasing system in accordance with the provisions in §200.324(c), which does not preclude Federal awarding agency or pass-through entity right to survey the system. Contract Provisions Pursuant to §200.326 the City will include in all federally-funded contracts, the applicable provisions described in Appendix II to 2 CFR Part 200 - Contract Provisions for non-Federal Entity Contracts under Federal Awards. XXVI. Contractual Agreements for Services 1. Introduction and Purpose Written contracts are essential tools for protecting the interests of the City and ensuring transparency, accountability, and legal enforceability in the procurement of services. Clear contractual agreements help prevent misunderstandings, define responsibilities, and minimize financial, legal, and operational risk. They provide a definitive record of the terms under which services are performed, and funds are expended. By requiring all service-related procurements, whether for infrastructure, operations, or professional consulting—to be documented through formal contracts, the City ensures:  Compliance with Texas state law;  Consistency and fairness in vendor relationships;  Clear scope, cost, and performance expectations;  Improved audit readiness and financial control. This section establishes the City's minimum standards for contract formation, execution, and management and applies uniformly across departments. 2. Legal Authority 140 PURCHASING PROCESS CHECKLIST City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 This section is adopted in accordance with the following laws and administrative requirements:  Texas Government Code § 2252.904(b): Requires formal written agreements for governmental service contracts.  Texas Government Code § 2252.032: Establishes requirements for public works contracts and retainage handling.  Texas Government Code Chapter 2254: Governs procurement of professional services (e.g., engineers, architects, attorneys).  Texas Administrative Code Title 34, § 20.221(g): States that contracts are not binding unless signed by all parties.  Texas Business and Commerce Code § 26.01: Requires written contracts for agreements not performable within one year. 3. Applicability This section applies to:  All City departments and divisions;  All service-related procurements, including: o Public works services (construction, improvements, infrastructure repair); o Non-public works services (consulting, IT, maintenance, administrative support, or other general services); o Professional services (licensed engineers, architects, legal, financial, or similar services). 4. Requirements for Contract Use 4.1 Written Contract Requirement  All service agreements must be documented in a written contract executed by all required parties before services commence.  No verbal agreements, emails, or memorandum of understanding shall substitute for a contract. 4.2 Public Works Contracts  Must include: o A clear scope of work, payment terms, retainage clauses (if applicable), and duration. 141 PURCHASING PROCESS CHECKLIST City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 o Provisions compliant with Gov’t Code § 2252.032 on retainage. o Execution by the City Manager (or designee) and approval as required by purchasing thresholds.  Filed with the City Secretary and assigned a contract number by Finance or Procurement. 4.3 Non-Public Works / General Service Contracts  Must include: o Defined deliverables, pricing, terms, and responsibilities. o Review by the City Attorney for legal sufficiency if the value exceeds $9,999.99 or includes liability clauses. o Approval by the Department Head and execution by the City Manager or their designee. 4.4 Professional Services Contracts  Must comply with Gov’t Code Chapter 2254: o Selection based on qualifications (not price bidding); o Negotiation of fair and reasonable compensation; o Formal written agreement approved and executed by appropriate authority. 5. Contract Execution and Filing  No contract is valid or binding until: o Reviewed (if required); o Signed by all parties; o Assigned a contract number by Procurement or Finance; o Filed in the City’s official contract management system; o Retained according to records retention policies. 142 PURCHASING PROCESS CHECKLIST City of The Colony Finance Department 6800 Main Street, The Colony, TX 75056 • 972-624-3145 6. Contract Monitoring and Amendments  Departments are responsible for: o Tracking contract performance and deliverables; o Ensuring compliance with terms; o Managing timelines, invoicing, and renewals.  Contract amendments (scope, cost, term) must be: o In writing; o Approved and executed in the same manner as the original agreement. 7. Compliance and Enforcement  Failure to comply with this section may result in: o Suspension of payment; o Return of unauthorized invoices; o Corrective action, including potential disciplinary measures. 143 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2025-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, ADOPTING A REVISED PURCHASING POLICY MANUAL FOR THE CITY OF THE COLONY, TEXAS; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. WHEREAS, in 2025, the Texas Legislature approved S.B. 1173, which amended Section 252.021(a) of the Texas Local Government Code to provide that cities must comply with the procurement process for purchases of more than $100,000.00 or more; and WHEREAS, the City Council of the City of The Colony, finds and determines the City’s Purchasing Policy Manual, attached hereto as Exhibit A, should be amended to address the changes made by the Texas Legislature. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. The findings set forth above are hereby found to be true and correct findings of the City and are incorporated into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council of the City of The Colony, Texas, does hereby approve the revised Purchasing Policy Manual, a copy of which is attached hereto as Exhibit A, and is incorporated herein for all purposes. SECTION 3. If any section, article paragraph, sentence, clause, phrase or word in this Resolution, or application thereto to any persons or circumstances, is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Resolution; and the City Council hereby declares it would have passed such remaining portions of this Resolution despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 4. This Resolution shall become effective immediately upon passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS THE 2nd DAY OF SEPTEMBER 2025. ______________________________ Richard Boyer, Mayor City of The Colony, Texas 144 ATTEST: _______________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: _______________________________ Jeffrey L. Moore, City Attorney 145 Exhibit A [Purchasing Policy Manual] 146 Agenda Item No: 5.6 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: Finance Item Type: Ordinance Agenda Section: regular agenda items Suggested Action: Discuss and consider approving an ordinance adopting the City of The Colony Fiscal Year Budget beginning October 1, 2025 through September 30, 2026; providing for intra and inter departmental fund transfers; providing that expenditures for said Fiscal Year to be made in accordance with said budget. (Miller) Background: Attachments: Ord. 2025-xxxx FY25-26 Budget 147 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2025 - ________ ADOPT MUNICIPAL BUDGET FOR FISCAL YEAR 2025-2026 AN ORDINANCE OF THE CITY OF THE COLONY, APPROVING AND ADOPTING A BUDGET FOR THE CITY FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2025, THROUGH SEPTEMBER 30, 2026; PROVIDING FOR THE INTRA AND INTER-DEPARTMENT FUND TRANSFERS; PROVIDING THAT EXPENDITURES FOR SAID FISCAL YEAR SHALL BE MADE IN ACCORDANCE WITH SAID BUDGET; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the Assistant City Manager for the City of The Colony, Texas has heretofore filed with the City Secretary, a proposed general budget for the City covering the fiscal year 2025- 2026; and WHEREAS, a public hearing was duly held and all interested persons were given an opportunity to be heard for or against any item therein in accordance with the Charter. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1: That the attached budget, presented by the City Manager and reviewed during Council meetings and work sessions, and as amended be approved for the fiscal year 2025- 2026. SECTION 2: That the City Manager be and is hereby authorized to make intra and Council approved inter-departmental fund transfers during the fiscal year as becomes necessary in order to avoid over-expenditures of a particular account. SECTION 3: That said Budget as attached hereto as Exhibit “A” of this Ordinance, and made a part hereof for all purposes, is hereby approved in all respects and is adopted as the City’s budget for the fiscal year beginning October 1, 2025, and ending September 30, 2026. SECTION 4: The fact that the fiscal year begins on October 1, 2025, requires that this Ordinance be effective upon its passage and adopted to preserve the public peace, property, health and safety, and shall be in full force and effect from and after its passage and adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 2nd DAY OF SEPTEMBER 2025. __________________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: __________________________________ Tina Stewart, TRMC, CMC, City Secretary 148 2 APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 149 Agenda Item No: 5.7 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: Finance Item Type: Ordinance Agenda Section: regular agenda items Suggested Action: Discuss and consider an ordinance approving the proposed 2025-2026 tax rate not to exceed $0.63000 cents per $100 valuation for the taxable value of real and personal property located within the City of The Colony. (Miller) Background: Attachments: Ord. 2025-xxxx Tax Rate Amendment FY25-26 150 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2025 - _______ ADOPT TAX RATE FOR FISCAL YEAR 2025-2026 AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, LEVYING THE AD VALOREM TAXES FOR THE FISCAL YEAR 2025-2026 AT A RATE OF $.6300 PER ONE HUNDRED DOLLARS ($100) ASSESSED VALUATION OF ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY AS OF JANUARY 1, 2026; TO PROVIDE REVENUES FOR THE PAYMENT OF CURRENT EXPENSES AND TO PROVIDE AN INTEREST AND SINKING FUND ON ALL OUTSTANDING DEBTS OF THE CITY; PROVIDING FOR DUE AND DELINQUENT DATES TOGETHER WITH PENALTIES AND INTEREST; AND DECLARING AN EFFECTIVE DATE. BE IT SO ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1: That there be and is hereby levied for the fiscal year 2025-2026, on all taxable property, real, personal and mixed, situated within the limits of the city of The Colony, Texas, and not exempt by the Constitution of the State and valid State laws, a tax of $.6300 on each One Hundred Dollars ($100) assessed value of taxable property, and shall be apportioned and distributed as follows: (a) For the purpose of defraying the current expenses of municipal government of the City, a tax of $.4813 on each One Hundred Dollars ($100) assessed value of all taxable property. (b) For the purpose of creating a sinking fund to pay interest and principal on all outstanding bonds of the City, not otherwise provided for, a tax of $.1487 on each One Hundred Dollars ($100) assessed value of all taxable property, within the City, which shall be applied to the payment of such interest and maturities of all outstanding bonds. SECTION 2: That all ad valorem taxes shall become due and payable on October 1, 2025 and all ad valorem taxes for the year shall become delinquent after January 31, 2026. There shall be no discount for payment of taxes prior to January 31, 2026. If any person fails to pay the ad valorem taxes on or before the 31st day of January 2026, the following penalties shall be payable thereon, to-wit: During the month of February, seven percent (7%); during the month of March, nine percent (9%); during the month of April, eleven percent (11%); during the month of May, thirteen percent (13%); during the month of June, fifteen percent (15%); and on or after the 1 st day of July, eighteen percent (18%). 151 2 SECTION 3: Taxes are payable at the Denton County office of the tax collector who on behalf of The Colony collects ad valorem taxes for The Colony. The City shall have available all rights and remedies provided by law for enforcement of the collection of taxes levied under this Ordinance. SECTION 4: That the tax rolls, as presented to the City Council, together with any supplement thereto, be, and the same are hereby approved. SECTION 5: The fact that it is necessary that this Ordinance be enacted in order to authorize the collection of ad valorem taxes for the fiscal year 2025-2026, this Ordinance shall take effect from and after its passage as the law in such cases provides. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 2nd DAY OF SEPTEMBER 2025. __________________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ____________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 152 Agenda Item No: 5.8 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: Finance Item Type: Resolution Agenda Section: regular agenda items Suggested Action: Discuss and consider approving a resolution amending the Fiscal Year 2024-2025 Master Fee Schedule for the Fiscal Year 2025-2026, effective October 1, 2025 . (Miller) Background: The Master Fee Schedule details fees for services that are provided to our residents and customers. While the primary mission of government is to satisfy community needs, many City services solely benefit specific individuals or businesses. It is the City’s policy that the public at large should not subsidize activities of private interest through general tax revenues. The City has therefore established user fees to ensure that those who use proprietary services pay for those services in proportion to the benefit received. Fees that do not recover the full cost of providing the service result in a General Fund subsidy which shifts funds away from other critical and high priority programs that may not have similar cost recovery options. Each year staff review operational costs, regional market assessments, participation analysis, and council direction of the myriads of fees to analyze each section of the Master Fee Schedule and recommend changes. Attached is a copy of the redline Master Fee Schedule to show the proposed changes to the Fiscal Year 2025-2026 Master Fee Schedule and a memo describing each change. Attachments: FY 2025-2026 Master Fee Schedule_draft 8.22.25.cleaned.pdf Res. 2025-xxx Master Fee Schedule.doc 153 Master Fee Schedule October 01, 2025 - September 30, 2026 154 ANNUAL PERMITS Donation Box $100 $100 Newspaper Box Fee Not Required as of 10/01/15 Fee Not Required as of 10/01/15 Rental Registration & Inspection - Suspended at this time First Inspection = $50 Follow-up re-inspection = no fee Third re-inspection = $100 Fourth re-inspection = $250 Flatwork $50 Rental Registration - Suspended at this time TBD $5 per unit annually Same Day Inspection (At the discretion of the Building Official. During Business Hours. Attendance of 0-249 Persons Attendance of 250-1,999 Persons Attendance of 2,000+ Persons Schedule fee doubled $75 $50 per hour (2 hour maximum) $100 per hour (2 hour maximum) $200 per hour (2 hour maximum) $50 $150 $250 Copies (11" X 17" or greater) Color Copies larger than 11" X 17" After Hours Inspection (At the discretion of the Building Official.) Holiday Inspection (At the discretion of the Building Official, includes weekends in conjunction with holidays.) Special Event Permit: Work Performed without a Permit Re-inspection $0.159 per sq ft (minimum $50) $50 $75 Commercial Tree Removal Other required permits not specifically listed Archiving Fee Residential Remodel, Addition Re-roofing - Multi-Family / Commercial Re-roofing - Single Family Temporary Commercial Structure Manufactured Home Inspection Manufactured / Modular Home Moving Permit $100 $275 $100 $0.159 per sq ft (minimum $50) $10 per $1,000 value ($100 minimum) $75 $50.00 + $100.00 for each protected tree to be removed $10 per $1,000 value ($100 minimum) Miscellaneous $5 per page $100 $75 Siding $75 Solar $150 Window/Door Replacement $50 Foundation Repair Donation Box - Annual Permit Rental Inspection - per unit inspected - (Multi-Family) - TBD Rental Inspection - per unit inspected -TBD Fifth and subsequent re-inspections = $500 each First Inspection = $5 Follow-up re-inspection = no fee Third re-inspection = $100 Fourth re-inspection = $250 Fifth and subsequent re-inspections = $500 each $10 per unit $100 per unit COMMERCIAL & MULTI-FAMILY PERMITS (NEW CONSTRUCTION) Valuation and fee determined per the "Square Foot Construction Costs" table provided each August by the International Code Council with a permit fee multiplier of 0.0090 (See TABLE 2) Valuation and fee determined per the "Square Foot Construction Costs" table provided each August by the International Code Council with a permit fee multiplier of 0.0050 (See TABLE 2) Donation Box - Relocation Permit Newspaper Box - Annual Permit Newspaper Box - Relocation Commercial Cell Tower Flagpole Installation (over 20' in height) Demolition Residential Building Permit Residential Accessory Structure Late Rental Registration - TBD Late Rental Inspection - TBD Commercial Building Permit Commercial Alteration, Remodel, Total Finish Out (TFO) NEW RESIDENTIAL HOME PERMITS (NEW CONSTRUCTION) $1.01 PER SQUARE FOOT Other Building Permits $15 each $50 each $.10 per page $.50 per page $1 per square foot Organization Event Sign Permit Tent, Bounce House, Climbing Wall Small Copies (up to 8 1/2" X 14") 155 Short Term Rental Registration and Fire Inspection $500 Annual Inspection Fee $100 $75 Fire Re-Inspection Storage Tanks Mobile Food Unit Fire Inspection State Mandated Fire Inspection Sign Plan Review Plan Amendment Fee General Contractor** $20 $100 Contractor License/Registration $75 per registration annually **General Contractor shall include, but not to be limited to, the following contractors: commercial, residential, moving, pool, fence, sign, demolition, foundation, remodeling, etc. Fire Plan Review/Permit $75 $0 $0 $75 for the first $150 for the second Above Ground - $100 Underground - $150 $50 or 25% of building permit fee, whichever is greater 25% of building permit fee 25% of building permit fee $50 Solar Review & Inspection Fire Line Permit $75 In Ground / Above Ground Swimming Pool Pool/Spa Permit $200 $200 $150 Sign Permit 0 - 29.99 sq ft = $30 Billboard - Annual Renewal Other Building Permit Plan Review $50 or 25% of building permit fee, whichever is greater Swimming Pool/Spa Plan Review $50 or 25% of building permit fee, whichever is greater $50 - each additional Double permit fee Fire Alarm Permit Fee (Based on the number of signal initiating devices) Special Locks ERRCS (Emergency Radio Responder Coverage System) Vent Hood Permit Working without a permit Fire Panel Replacement Only Fire Plan Review Plan Review Re-submittal Fire Communicator Replacement Only $100 $175 $200 $100 400 - sq ft and up = $300 $100 $45 $75 New Lawn Sprinkler System & Backflow Test Plumbing Permit 30 - 48 sq ft - $45 0 - 24.99 sq ft = $30 25 - 49.99 sq ft = $45 50 - 99.99 sq ft = $60 100 - 299.99 sq ft = $125 300 - 399.99 sq ft = $200 $150 Certificate of Occupancy $75 $75 Scheduled fee doubledOperating a business without a C of O Re-Inspection Fee - Building Inspections Signage license agreement review Inflatable Sign Billboard - Registration Sign Permit Spray Park / Splash Zone Hot Tub or Spa Banner Sign Temporary Power Pole/Clean & Show Subdivision & Commercial: $50.00 plus $0.25 per linear footRetaining Wall $10.00 for every $1,000 value ($100 minimum) BUILDING PERMITS Electric Permit $10.00 for every $1,000 value ($100 minimum) $100 Fencing/Retaining Wall Permit 1 lot: $50 Subdivision: $50.00 plus $0.25 per linear foot 1 lot: $75 Mechanical Permit $10.00 for every $1,000 value ($100 minimum) Plumbing Permit Fence Electrical Permit Mechanical Permit Annual Backflow Inspection Report Backflow Repair / Replacement Permit $53 per device annually $75 $125 Multi-Family Plan Review Application Fee/Non-Refundable Residential Plan Review Accessory Structure Remodels Commercial Plan Review $150 $100 - first hood 1 - 25 devices = $150 26 - 50 devices = $200 51 - 75 devices = $250 76 - 100 devices = $325 Group Home - Annual Fire Inspection CO2 System 101 devices = $350 + $.75 per device over 100 1 - 100 sprinkler heads = $175 101 - 200 sprinkler heads = $200 $100 $75 $225 Fire Sprinkler Permit (Based on the number of sprinkler heads) 201 - 300 sprinkler heads = $225 301 - 400 sprinkler heads = $250 401 - 500 sprinkler heads = $300 over 500 sprinkler heads = $250 + $.25 per sprinkler over 500 Certificate of Occupancy Temporary Certificate of Occupancy Re-inspection Fee - Fire/Annual Fire Co Inspection Building Plan Review $50 or 25% of building permit fee, whichever is greater $100 156 $5,000 All others = $250 + $72 per acre or portion thereof $300 + $10 per acre or portion thereof Single Family / Duplex = $375 + $15 per lot All others = $250 + $72 per acre or portion thereof Multi-Family / TH = $250 + $144 per acre or portion thereof 1 - 5 addresses = $100 3/4" Tap & Meter 1" Tap & Meter Tap & Meter fee includes a service connection from main line to meter within (50) feet. Connections greater than fifty (50) feet shall include a "per foot" fee. 4" Sewer Tap 6" Tap Only 8" Tap Only 10" Tap Only Sewer/Fire Line Tap $570 $865 $1,410 $2,220 4" Fire Line Tap 6" Fire Line Tap 8" Fire Line Tap $1,895 $2,415 $3,210 10" Fire Line Tap 1.5" Tap & Meter Plat Extension Vacating Plat 5/8" Tap & Meter 6 - 10 addresses = $225 11 + addresses = $400 $100 $650 Water Meter $475 $595 $730 $1,085 Street Address Change/Street Name Change $375 $100 $375 $350 Variance Application $350 $350 $50 per property (within 7 business days) Minor Plat Conveyance Plat Final Plat / Amending Plat Replat Single Family / Duplex = $375.00 + $15.00 per lot Multi-Family / TH = $250 + $144 per acre or portion thereof All others = $250 + $72 per acre or portion thereof Single Family / Duplex = $375 + $15 per lot Multi-Family / TH = $250 + $144 per acre or portion thereof Permit for Sexually Oriented Business Preliminary Plat All others = $250 + $72 per acre or portion thereof Platting Single Family / Duplex = $375 + $15 per lot Multi-Family / TH = $250 + $144 per acre or portion thereof 10 - 24.99 acres or portion thereof = $825 25 - 49.99 acres or portion thereof = $1,000 50 - 99.99 acres or portion thereof = $1,250 100+ acres = $200 + $12 per acre Annexation Petition Zoning Amendments, Planned Developments, Specific Use Permits, Site Plan Irrigation Permit Combine MUZ, NSV, and Irrigation Renewal Permits $70 per property (within 3 business days) $150 per sign (refundable) $500 annual permit $35 + Mitigation Fees $20 Zoning Cost ($400 minimum) $500 Public Hearing Sign Deposit SUP Amendment Special Exception 0 - 4.99 acres or portion thereof = $375 5 - 9.99 acres or portion thereof = $650 Gateway Standards Waiver Zoning Verification Letter MUZ Permit Narrow Shoreline Variance Permit $25 + Mitigation Fees $20 PD Amendment Site Plan Amendment Review Annexation Notice Shoreline Mitigation Fees $20 $1,200 $1,625 $1,895 $2,415 $3,210 $4,270 $500 $20 per foot 2" Tap & Meter 3" Tap Only 4" Tap Only 6" Sewer Tap 8" Sewer Tap 10" Sewer Tap When a paved road must be bored to make tap 157 $1,295 $4,144 $10,085 $20,170 $32,272 $32,272 $40,340 $64,544 $47,656 4" Compound Meter $12,950 4" Turbine Meter $21,756 $130,400 $203,750 NOTE: Turbine meters are for irrigation only. All irrigation meters are only required to pay Water Impact Fees, not Sewer Impact Fees. 3" Compound Meter $8,288 3" Turbine Meter $12,432 2" Compound Meter $4,144 2" Turbine Meter $5,180 $518 3/4" PD 1" PD $990 $1,089 1 1/2" PD 10" Turbine Meter WATER & SEWER IMPACT (Property final platted before September 30, 2007) ENTIRE CITY EXCEPT THE TRIBUTE SUBDIVISION* SEWER IMPACT FEE $2,590 2" PD 10" Turbine Meter $145,920 6" Turbine Meter $53,760 8" Compound Meter $51,975 $59,400 $89,100 $85,338 $141,075 * The Tribute Subdivision has a Developer's Agreement authorizing all new fees. NOTE: Turbine meters are for irrigation only. All irrigation meters are only required to pay Water Impact Fees, not Sewer Impact Fees. $264,480 10" Turbine Meter $413,250 2" Turbine Meter $16,530 3" Compound Meter $26,448 $3,840 1.5" Meter $8,265 $20,375 METER SIZE METER SIZE WATER IMPACT FEE 2" Compound Meter 1" Meter WATER IMPACT FEE $1,223 $13,440 4" Compound Meter 3" Compound Meter $12,288 1" Meter $1,920 1.5" Meter $1,782 $3,663 $5,940 $5,940 $11,880 $12,969 $18,513 $23,364 $37,125 5/8" X 3/4" Meter $768 3/4" Meter $1,152 WATER & SEWER IMPACT (Property final platted after December 1, 2020) SEWER IMPACT FEE $4,034 $6,051 5/8" PD 8" Compound Meter $132,240 8" Turbine Meter 6" Turbine Meter $152,076 3" Turbine Meter $39,672 4" Compound Meter $41,325 4" Turbine Meter $69,426 6" Compound Meter $82,650 $19,560 $777 $61,440 2" Compound Meter $6,144 2" Turbine Meter $6,144 3" Turbine Meter $96,816 $100,850 $169,428 $201,700 $371,128 $92,160 10" Compound Meter $88,320 $19,200 4" Turbine Meter $24,192 6" Compound Meter $38,400 $13,224 WATER & SEWER IMPACT (Property final platted after October 1, 2007 ) SEWER IMPACT FEE $815 6" Compound Meter $25,900 6" Turbine Meter 8" Turbine Meter METER SIZE WATER IMPACT FEE $8,150 $13,040 $4,075 $6,520 5/8" X 3/4" Meter $1,653 3/4" Meter $2,480 $4,133 $322,720 $645,440 8" Compound Meter $41,440 8" Turbine Meter $82,880 $2,038 $34,230 $40,750 $74,980 $65,200 $129,500 NOTE: Turbine meters are for irrigation only. All irrigation meters are only required to pay Water Impact Fees, not Sewer Impact Fees. $1,008,500 158 ITE Land Use Code 030 110 120 130 150 151 210 220 230 240 251 252 254 310 320 432 430 495 465 431 445 491 560 565 522 530 540 550 630 610 620 640 714 710 720 715 750 942 843 944 945 946 841 941 947 848 934 933 932 931 937 815 817 862 880 881 820 850 864 875 896 911 912 918 1,000 SF GFA 1,000 SF GFA Shopping Center Supermarket SERVICES 1,097$ 2,963$ 1,547$ 552$ 3,012$ 2,912$ 5,662$ 406$ 39.10 31.31 13.45 10.05 30.75 1,570$ 1,178$ 759$ 1,947$ 1,947$ 1.72 Other Retail 7.87 19.51 11.23 11.21 15.62 University / College MEDICAL Animal Hospital / Veterinary Clinic INSTITUTIONAL Free-Standing Discount Store Nursery (Garden Center) Home Improvement Superstore Pharmacy/Drugstore w/o Drive Thru Window Pharmacy/Drugstore w/Drive Thru Window 1,000 SF GFA Drive-in Lanes 1,000 SF GLA Fast Food Restaurant w/ Drive-Thru Window Fast Food Restaurant w/out Drive-Thru High Turnover (Sit-Down) Restaurant Quality Restaurant Coffee/Donut Shop w/Drive-Thru Window 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA Walk-In Bank Toy/Children's Superstore Department Store Video Rental Store 5.22 9.54 4.83 Gasoline / Service Station w/ Conv Market Gasoline / Service Station w/ Conv Market and Car Wash New Car Sales Quick Lubrication Vehicle Shop Self - Service Car Wash Tire Store 1,000 SF GFA Servicing Positions Stall COMMERCIAL Automobile Related Automobile Care Center Automobile Parts Sales Gasoline / Service Station 1,000 SF GFA Vehicle Fueling Position Vehicle Fueling Position 3.66 5.87 8.72 1.99 8.37 5.36 0.83 1.16 1,000 SF GFA Beds 14.51 0.34 0.27 0.25 1,000 SF GFA 1,000 SF GFA Students Students Students Students Beds 1.06 43.85 10.77 Ice Skating Rink Clinic Hospital Nursing Home Residential Condominium/Townhome Mobile Home Park/Manufactured Housing Senior Adult Housing-Detached Senior Adult Housing-Attached Industrial Park Warehousing Mini-Warehouse Church Day Care Center Primary / Middle School (1 - 8) High School Junior / Community College Multiplex Movie Theater Racquet / Tennis Club 1,000 SF GFA Hole Screens Court Golf Course Recreational Community Center 1,000 SF GFA 0.36 19.55 1.00Dwelling Unit Room Miniature Golf Course Tee 2.72 1.28 Acre Dwelling Unit Assisted Living LODGING Hotel Motel / Other Lodging Facilities RECREATIONAL Golf Driving Range Single-Family Detached Housing Apartment/Multi-family Dwelling Unit 0.88Beds 0.96 8.81 7.59 Room ROADWAY IMPACT FEES - Page 1 2016 Fees 6,183$ 916$ General Light Industrial RESIDENTIAL 4.00 1.04 Veh-Mi Per Dev-Unit 26.20 Dwelling Unit Dwelling Unit Dwelling Unit General Light Industrial Truck Terminal PORT AND TERMINAL Land Use Category INDUSTRIAL 642$ 802$ 302$ 245$ 944$ 455$ 356$ 949$ Development Unit Acre 1,000 SF GFA 3.88 1.93 1.51 4.02 2.48 2.08 2.36 1.08 585$ 491$ 557$ 255$ 236$ 208$ 3.40 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 227$ 1,452$ 1,791$ 250$ 2,061$ 2,542$ 274$ 3,424$ 80$ 64$ 59$ 85$ 2,694$ 677$ 114$ 1,711$ 772$ 821$ 2,050$ 954$ 827$ 1,000 SF GFA 1,000 SF GFA Single Tenant Office Building Office Park 5.92 5.64 5.96 14.28 6.96 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 12.46 898$ 1,510$ 664$ 486$ 1,000 SF GFA 3.57 OFFICE Corporate Headquarters Building General Office Building Medical - Dental Office Building 485$ 936$ 1,379$ 274$ 1,604$ 5,716$ 4,315$ 2,055$ 1,385$ 4,251$ 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA Vehicle Fueling Position Dining 1,000 SF Occ GLA 1,000 SF GFA 3.90 12.69 16.25 12.34 29.86 4.21 21.86 Drive-in Bank Hair Salon 159 160 $231.52/ERU* *ERU is an equivalent residential unit and is equal to 3,406 square feet of impervious area. Residential Non-Residential OFFICE CREEK DRAINAGE IMPACT FEES & MAP $231.52/lot 161 162 163 Group (2021 International Building Code)IA IB IIA IIB IIIA IIIB IV VA VB A-1 Assembly, theaters, with stage 335.89 324.58 316.94 304.93 286.87 278.00 295.62 266.02 257.55 A-1 Assembly, theaters, without stage 307.39 296.08 288.44 276.42 258.37 249.50 267.12 237.51 229.05 A-2 Assembly, nightclubs 269.94 261.93 254.48 245.85 230.56 223.99 237.02 209.57 202.79 A-2 Assembly, restaurants, bars, banquet halls 268.94 260.93 252.48 244.85 228.56 222.99 236.02 207.57 201.79 A-3 Assembly, churches 311.88 300.57 292.93 280.91 263.30 254.43 271.60 242.45 233.98 A-3 Assembly, general, community halls, libraries, museums 266.07 254.76 246.12 235.10 216.33 208.46 225.80 195.47 188.01 A-4 Assembly, arenas 306.39 295.08 286.44 275.42 256.37 248.50 266.12 235.51 228.05 B Business 260.69 251.13 241.86 231.65 210.99 202.73 222.56 186.21 177.81 E Educational 273.46 263.96 255.62 245.04 228.69 217.00 236.61 200.36 193.94 F-1 Factory and industrial, moderate hazard 160.20 152.78 143.34 138.64 123.55 117.41 132.48 102.44 95.93 F-2 Factory and industrial, low hazard 159.20 151.78 143.34 137.64 123.55 116.41 131.48 102.44 94.93 H—1 High Hazard. explosive 149.46 142.04 133.60 127.90 114.12 106.97 121.74 93.00 N.P. H234 High Hazard 149.46 142.04 133.60 127.90 114.12 106.97 121.74 93.00 85.50 H-5 HPM 260.69 251.13 241.86 231.65 210.99 202.73 222.56 186.21 177.81 I -1 lnstîtutional. supervised environment 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 I-2 lnstîtutional. hospitals 434.15 424.59 415.32 405.12 383.35 N.P.396.02 358.57 N.P. I-2 Institutional. nursing homes 302.01 292.45 283.18 272.97 253.83 N.P. 263.88 229.05 N.P. I-3 Institutional, restrained 295.86 286.31 277.03 266.83 247.95 238.69 257.74 223.17 212.77 I-4 Institutional. day care facilities 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 M Mercantile 201.37 193.36 184.91 177.28 161.72 156.15 168.45 140.73 134.95 R-1 Residential, hotels 264.67 255.41 246.77 238.13 218.35 212.40 238.17 196.75 190.67 R-2 Residential, multiple family 221.32 212.06 203.42 194.78 175.96 170.01 194.82 154.36 148.28 R-3 Reidential, one- and two-family d 209.61 203.64 198.94 195.12 188.41 181.45 191.77 175.86 165.67 R-4 Residential, care/assisted living facilities 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 S-1 Storage, moderate hazard 148.46 141.04 131.60 126.90 112.12 105.97 120.74 91.00 84.50 S-2 Storage, low hazard 147.46 140.04 131.60 125.90 112.12 104.97 119.74 91.00 83.50 U Utility. miscellaneous 114.09 107.37 99.89 95.60 85.13 79.54 90.99 67.39 64.19 a. Private Garages use Utility, miscellaneous b. For shell only buildings deduct 20 percent c. N.P. = not permitted d. Unfinished basements (Group R-3) = $22.45 per sq. ft.Table 2 - Square Foot Construction Costs $ AMOUNT ABOVE BY PERMIT FEE MULTIPLIER (CURRENTLY 0.0090 FOR NEW CONSTRUCTION, 0.0050 FOR ALTERATION, REMODEL, TFO) Square Foot Construction Costs A,B,C TO CALCULATE FEE = MULTIPLY GROSS SQUARE FEET BY Type II-B Retail (Mercantile) with 3,800 sq. ft. of floor space would be calculated as: 3,800 X $125.68 X 0.0090 = $4,298.25 164 Late Payment of Health Permit Self Service Food Markets $100 Administrative Fee - Insurance Claims Pre-Opening/Change of Ownership Fee Public/Semi-Public Swimming Pool/Spa/Splash Zone PIWF Same Day Inspection/After Hours Inspection / Holiday Inspection (at the discretion of the Health Inspector) Court fine payments online/over the phone $150 Citation will be issued Miscellaneous $.10 Per Page $.50 Per Page $1 Per Square Foot * Fees may be reduced up to 50% for non-profit organizations upon approval from the City Manager or his designee. Municipal Court $150 first and $100 each additional $150 $52 per event/per vendor $258 Grocery Store (Additional Departments) Food Establishment (<2,000 sq. ft. GFA) Food Establishment (>2,000 sq. ft. GFA) $75 $150 $250 $100 Grocery Store (Grocery and Produce) Administrative Fee - Commercial (4+)$200 Health Permits Annual Health Permits: $100 $350 $550 $350 $550 Plan Review $150 Administrative Fee - Residential (1 thru 4) Administrative Fee - Residential (5+) Administrative Fee - Commercial (1 thru 3) Temporary Permits (14 days or less) Mobile Food Unit Convenience Store (with deli) Seasonal Permits (6 months) Warehouse/Distribution/Catering (<2,000 sq. ft. GFA) Warehouse/Distribution/Catering (>2,000 sq. ft. GFA) Convenience Store $350 $550 $265 $320 $200 $300 Well Drilling Permit $50 $50 $250 Single Family Residential Lot < 3 acres > 3 acres Monitor well De-watering well Injection well $250 Network Node Fees Code Enforcement Fees $100 $150 $100 Pole attachment rent (network node on service pole) Permit application fee $20/pole/year $500/node (first 5 network nodes) $250/node for each additional node over 5 nodes $1,000/pole for each node support pole Test well Irrigation well Water well - residential Water well - non-residential Annual public right of way use fee Network provider connect network node to network fee $250 per network node/year $28 per node per month $50 GENERAL FUND Permits Floodplain Development Permit $100 $300 $400 $500 $40 $25 $100 $2.50 Finance $500/Each Claim NSF check returned fee per incident Expunction Filing Fee Small Copies (Up to 8.5 " x 14") Copies (11" x 17" or Greater) Color Copies Larger than 11" x 17" Reinspection Fee (Facility initiated) Re-Inspection Fee (Required is store is 75 or less) Operating without a permit Food Establishment (>2,500 sq. ft. GFA)$750 Grading Permit Single Family Residential Lot < 300 linear feet stream or shoreline 300 - 1,000 linear feet stream or shoreline > 1,000 linear feet stream or shoreline $200 165 Holiday Rate Holiday Rate LISD Event Printing fee (color) Fax fee Adhesive vinyl Postage to return Photocopy fee (color) Printing fee (grayscale) Replacement library card Photocopy charges Heat transfer vinyl Transfer tape 3D printing fee $2.00 Inter-library loan service: Assigned by owning agency Actual cost $.25 per copy $.10 per page $.25 per page $.50/page; $5 maximum $1 per 6" sq. $1.50 per 6" sq $.25 per 6" sq $.10 per gram; $1 minimum Compact disc Movies TV series Children's kit (CD & book) Specialty kits Audiobooks & kits (CD) Actual cost, plus $5 process fee Actual cost, plus $10 process fee Assigned by owning agency 1st offense 2nd offense Loss or damage to processing materials Other items Partial loss (piece missing) Inter-library loan material Equipment Restitution for repairable damage: Minimum: $0.25 Maximum: Assigned by owning agency Minimum: $0.25 Maximum: Repair cost, plus shipping & handling chgs Minimum: $0.25 Maximum: 3/4 lost/ruined fee Minimum% of lost/ruined fee Return equipment in drive-up drop: $10 fine (per item), plus warning $10 fine (per item), plus revocation of equipment privileges Current catalog price Actual cost, plus $5 process fee Graphic Novel Adult Fiction (hardbound) Adult Fiction (paperbound) E /J FIC /YA FIC YA FIC (paperbound) Supervisor Rate Supervisor Rate $100.00/hr $120.00/hr $160/hr Library Restitution for lost/ruined materials: Book (according to classification): Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee $650 - Non-Resident $15.00 $900 - Resident $900 - Non-Resident $1,000 - Resident $1,100 - Non-Resident $800 - Resident $850 - Non-Resident New Subscribers Special Events Firefighter/Paramedic Rate Personnel & Apparatus Oxygen Ambulance Subscription Service Existing Subscribers $96/year - $8/month $75.00/hr $90.00/hr Advanced Life Support (2) (ALS2) Basic Life Support (BLS) Emergencies Ambulance Calls Mileage Advanced Life Support (ALS) Emergencies Specialized Critical Care (SCT) Advanced Life Support (ALS) Disposables Basic Life Support (BLS) Disposables $900 - Resident $1,100 - Non-Resident $200 - Non-Resident $150 - Non-Resident $50.00 $60/year - $5/month Board books Magazine Mass market paperback LP Non-Fiction (paperbound) Non-Fiction (hardbound) Non-Fiction (paperbound) LP Fiction (hardbound) LP Fiction (paperbound) LP Non-Fiction (hardbound) Fishing gear Equipment Inter-library loan material Firefighter/Paramedic Rate Actual cost, plus $5 process fee Fire & Ambulance $550 - Resident Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee Actual cost, plus $5 process fee 166 Postage/shipping Other Police reports Actual cost Actual cost Police Offense report and/or copies: $4 Personnel Overhead Storage Fees (DAILY) Accidents requiring additional services (per accide Body cam Dash cam 911 audio Accident reports Clearance Letter/Local Criminal History Report Vehicles up to 10,000 GVWR Vehicles 10,001 - 26,000 GVWR Vehicles over 26,000 GVWR (Heavy Duty) Other electronic media Audio cassette Paper - Oversized (11 X 17, etc) Speciality paper (color maps/$1 sq ft) CD DVD Diskette 1 3 $1/each $1/each $.50/each Actual cost Actual cost $15/hr 20% of personnel charge Shelter quarantine fee $25 $25 $100 $150 $500/year City Secretary $5 1/2 of State Fees Per Ordinance #719 Public records: $.10/page Voluntary dog registration fee Rabies test Deceased animal pickup Release of ownership & pickup fee Sheltering fee Euthanasia fee (includes surrender & disposal) Alcohol permits Copies - paper Prohibited animals Permanent permit fee Scanner fee Deceased animal - remains disposal fee Home quarantine fee Live Traps Microchip Release of ownership fee $50 Refundable Deposit Fee, if in working order $15 $20/animal $45 $10/night/animal $65 $10 $75 $15/animal 2nd impound of the same animal 3rd impound of the same animal 4th impound and all subsequent of same animal Adoption fee 1st impound $25 $60 $85 $115 $2 $25 $50 No Fee $50 $75 $100 $35/day $50/wk $125/yr $10/ea Normal towing charges for vehicles: Animal Services $375/hr $115 -$140 + $35 each additional 15 minutes Impound fees: $155 $225 $.10/page $10 $3 $1 0.10/page after 10 pages $6 $95 Alarm fees - permit: Residential - annual alarm permit Alarm fees - false: 1st - 3rd Certified Commercial - annual alarm permit Solicitors permit Solicitors badge 4th - 5th 6th - 7th 8 or more Up to 25' - $20 Over 25' - $35 Over 10,000 lbs = $36.80 $21Preservation Fee 167 $35/Session Meeting room rental fee Premium Pavilion Rental Kids Colony - Full Pavilion $150/5 hrs - Resident - $300/5 hrs - Non-Resident Standard Pavilion Rental (Perryman, Slay/Baker, Ridgepoint, Dave Cowan, Bill Allen & Friendship $50/5 hrs - Resident - $100/5 hrs - Non-Resident Ampitheater Rental Premium Pavilion Rental Kids Colony - 1/2 Pavilion Youth sports user fees Gym rental Activity room rental Recreation Center building rental Premium Pavilion Rental - Lions Club $60/hr - Resident - $90/hr - Non-Resident $50/hr - Resident - $75/hr - Non-Resident $100/hr - Resident - $150/hr - Non-Resident Activity room rental (Government Center/Annex Facility)$50/hr - Resident - $75/hr - Non-Resident $50/hr - Resident - $70/hr - Non-Resident Pavilion Rentals: $75/5 hrs - Resident - $150/5 hrs - Non-Resident $75/5 hrs - Resident - $150/5 hrs - Non-Resident $75/5 hrs - Resident - $150/5 hrs - Non-Resident Athletics $2/player/season - Admin $3/player/season - Game fields $5/player/season - Practice fields $10/player/season - Non-Resident Athletic Facility rentals - Usage user fee co-sponsored Practice rental rates - co-sponsored Practice rental rates - resident non-co-sponsored Practice rental rates - non-resident non-co-sponsored $5/person/season - Resident $20/person/season - Non-Resident $10/hr for unlit - $15/hr for lit $20/hr for unlit - $30/hr for lit $26/hr for unlit - $36/hr for lit Practice field lit Practice field unlit Soccer net installation $275/field/day $225/field/day $30/field Tournament maintenance crew Small Room Rental Large Room Rental without kitchen Large Room Rental with kitchen Rental Furnishings (assorted) $50/hr - Resident - $75/hr - Non-Resident $100/hr - Resident - $150/hr - Non-Resident $50/hr - Resident - $75/hr - Non-Resident $5 - $100/per hour or item (depends on item furnished) Youth volleyball - Fall Non-field facility usage Athletic practice facility/field reservation change fee Youth basketball - Winter 6U Division Youth basketball - Summer 6U Division Youth basketball - Miniball $85 - Resident - $105 - Non-Resident $75 - Resident - $950 - Non-Resident $45 - Resident - $65 - Non-Resident Swim lessons - coach/train Swim lessons - private Swim lessons - semi-private Swim lessons - duo - private $40/hr/staff member $300/4 hrs + $75/additional hr $5 Aquatic Park $35 for 1/2 hr (non-resident $65 for 1/2 hr) $230 / session (non-resident $270) $110/Session (non-resident - $140/session) $345/session (non-resident $385/session) $75 - Resident - $95 - Non-Resident Youth basketball - Winter 7U to 12U $110 - Resident - $130 - Non-Resident Youth basketball - Summer 7U to 12U $90 - Resident - $110 - Non-Resident $300/team/season Adult volleyball Adult sand volleyball Youth volleyball - Spring Youth flag football Adult softball Adult kickball Adult basketball $95 - Resident - $115 - Non-Resident $90 - Resident - $110 - Non-Resident $325/team/season $250/team/season $500/team/season $300/team/season Business; special event & private swim clubs Entrance fees - senior adult exercise/lap swim Entrance fees - public swim Individual pass Family pass $270/27 hr $20/lane hr weekday/weekends) Aqua fit tickets 10 for $50 $5 - Resident - $8 Non-Resident $55/resident and $115 - non-resident (+ ID card if needed) $110/resident and $255 - non-resident (+ ID card if needed) Summer pass sales promotion Private party fees - Resident: 1 zone, 50 people Aerobic classes - daily 10% discount if bought before Memorial Day $250 /2hrs /Resident - $375/2hrs - Non-Resident $8/hr Swim lessons - lifeguard PARKS FUND Recreation Parks & Recreation Fees: $30/yr under age 50 $60/yr under age 50 $5 $5 $10 $5/Class - session - program $155/week - Resident $185/week - Non-Resident $40/day - Resident $50/day - Non-Resident $25/hr - Resident - $37.50/hr Non-Resident $50/hr - Resident - $75/hr - Non-Resident Recreation Center rentals during hours: Recreation Center rentals after hours - 2 HOUR minimum: Kidz Kamp - summer sessions (base) Kidz Kamp - holiday sessions (base) Gym rental - 1/2 court Gym rental - Full court Resident recreation pass (all ages) Non-resident recreation pass (all ages) ID card replacement Day Pass to Recreation Center Week Pass to Recreation Center Non-member program registration fee Kidz Kamp - Lunch $5/Lunch Kidz Kamp - Water $5/Bottle Kidz Kamp - Late pick-up - 1st Time Kidz Kamp - Counselor in Training - Non Resident Rentals $10 after 15 minute Late - $1/minute after 30 minutes late Kidz Kamp - Late pick-up - 2nd Time +$10 initial, $20 after 15 minute Late - $1/min after 30 minutes late Kidz Kamp - Shirt $10/Shirt Kidz Kamp - Counselor in Training - Resident $55/Session 168 LISD Joint Use Fees Resident rate Non-resident rate Trip reservation fee up to 50 miles Day Pass Community Center Membership for Seniors: $20/yr $40/yr $2 $6/trip Trip reservation fee up to 100 miles Trip reservation fee up to 150 miles $8/trip $10/trip Recreation Center 1/2 Gym Recreation Center Full Gym Recreation Center Activity Room Recreation Center Racquetball Court Park Pavilion $5/hr $10/hr $5/hr $5/hr $5/hr Outdoor Basketball Court Outdoor Volleyball Court Practice Field Five Star Field Five Star Trail/Common Area/Parking Lot Stewart Creek Park Amenities Aquatic Park (per pool) Free $35/Resident - $45/Non-Resident $25/night Annual Pass - Senior Resident Annual Pass - Senior Non-Resident Disabled Veteran (with proof) RV sites (includes entry) Tent sites (includes entry) Community Center - Large Room Community Center - Meeting Room $5/hr $5/hr $10/hr $20/hr $20/hr $20/amenity/hr $20/hr $10/hr $5/hr $25 $50 Daily Pass $15 Campsite late checkout fee Pavilion rental (5 hour block) $250 51 + cars = $10/car $25/hr $100/Resident - $200/Non-Resident $100/Resident - $200/Non-Resident TCPARD Site Supervisor for Rental TCPARD Custodial for Rental *(not always applicable) TCPARD Athletic Field Prep (if necessary) TCPARD Life Guard (number to be determined based on rental specifics) Daily Pass - Holiday Weekend(Easter, Memorial Day, July 4th, Labor Day) Annual Pass - Resident Annual Pass - Non-Resident $20/hr $20/hr $30/hr $15/guard/hr LAKE PARKS FUND Stewart Creek Park Revenues $20 $40 $80 Advance tickets Day of event tickets Per couple Additional child Volleyball court rental Per couple Additional child 1st child 2nd child 3rd child Pavilion rental (5 hour block) Pavillion rental cleanup deposit Pavilion rental entry $15/hr $25/hr SPECIAL EVENTS FUND Special Events Revenues $40 $18 $12 $10 $9 $5 $10 $40 Basketball 1/2 court rental $18 $50 $90 VIP 1 day VIP 2 day Daddy Daughter Dance: Kids Chase by the Lake: Spring Eggstravaganza: Liberty By The Lake: Mother and Son Adventure Day Family Fright Night: American Heroes 169 Excellent 3 x $.012 x SF 4 x $.012 x SF 5 x $.012 x SF 6 x $.012 x SF 3 x $.05 x SF 4 x $.05 x SF (522 - 528) (528 - 530.8) $30 Disconnect fees - after hours Transfer fees Administration fees (e.g. credit references, research on their accounts Check for leaks - allowed 3 free checks for a 6 month period, thereafter $25 each check Residential deposit water & sanitation for homeowners Residential deposit water & sanitation for renters Residential deposit water & sanitation for seniors 60 and over Commercial deposit water & sanitation Commercial irrigation deposit $50 $25 $20 $25 $75 or higher based on past history $150 or higher based on past history Deposit waived - or higher based on past history Average of the past 12 months billings of the premises or comparable $1,000 Commercial master meter surcharge Hydrant meter deposit - water NSF checks Penalties - late payment Delinquent accounts Online or Automated Phone payment for Utility account Set meter trip charge for ill-equipped area Same day connection fee Missed reading fee $12.47/unit (after first unit) $2,000 $25 15% Extension agreements available prior to day of disconnect. If extension agreement is failed, no further extensions for a period of 12 months. Limit of 2 extensions per calendar year. Must have pay history with less than 4 late payments during the preceding 12 months. Accounts with less than 12 months of payment history must have no more than 1 late payment in order to qualify for an extension. Cash/Credit/Money Order Only $1.25/transaction $30 $20 2 x $.05 x SF (528 - 530.8) (530.8 - 535.2) Vegetation/Habitat Conditions using the Corps (522 - 528) Good 2 x $.012 x SF 3 x $.012 x SF 4 x $.012 x SF 5 x $.012 x SF PARKS FUND Exhibit B Fee Schedule Poor Woodlands 1 x $.012 x SF 2 x $.012 x SF 3 x $.012 x SF 4 x $.012 x SF(535.2 537) Grasslands 1 x $.05 x SF 2 x $.05 x SF 3 x $.05 x SF 3 x $.05 x SF 4 x $.05 x SF 4 x $.05 x SF Savannah 1 x $.08 x SF 2 x $.08 x SF 3 x $.08 x SF 4 x $.08 x SF UTILITY FUND Utility Fees $20 See attached water rate schedule See attached sewer rate schedule (535.2 537) 5 x $.05 x SF (530.8 - 535.2) (535.2 537) 4 x $.08 x SF 5 x $.08 x SF 6 x $.08 x SF (530.8 - 535.2) 5 x $.05 x SF 6 x $.05 x SF 3 x $.08 x SF(522 - 528) Water & Sewer dollar amount reduced by 10% (enrollment required) $2.92/mo $4.00/mo for each account - residential $5.00/ERU/mo for each account - non-residential $20 $50 Connect fee/application fee Water service Wastewater service Veteran and Active Duty Water and Sewer Discount SRF Loan Drainage utility fees Disconnect/reconnect fees Reconnect fees - after hours 2 x $.08 x SF 3 x $.08 x SF 4 x $.08 x SF 5 x $.08 x SF (528 - 530.8) ൒ ൒ ൒ ൒ ൒ ൒ 170 Revised by: S. Davis 08-2025 31.12 Inside City Meter size (inches Rate 5/8 23.47 3/4 4.78 Meter size (inches Rate 5/8 15,001 - 25,000 9.76 Inside City 44.13 WATER RATES 2025 - 2026 Outside City Meter size (inches 5/8 3/4 1 142.72 3 220.64 4 343.77 6 773.48 8 1,740.34 37.41 1 1/2 61.91 8.68 2,001 - 15,000 7.37 40,001 and over Commercial (over 2,000 gal) 6.45 2 91.23 3 159.82 4 257.72 6 659.82 8 1,689.10 10 4,324.11 Commodity rate (per thousand gallons) Residential (over 2,000 gal) 1 1 8 10 Rate 35.21 46.70 66.18 128.44 214.13 330.86 515.64 1,160.18 2,610.47 5,873.62 Commodity rate (per thousand gallons) 7.97 9.91 10.55 1 1/2 2 3 4 6 10 3,915.77 Commodity rate (per thousand gallons) 2,001 - 15,000 5.31 22.74 1 1/2 85.64 2 4 6 8 10 11.57 2,001 - 15,000 15,001 - 25,000 25,001 - 40,000 40,001 and over Zone 5 Water Rates (Increase for Zone 5 rates) 10.13 11.95 12.61 13.62 2,001 - 15,000 15,001 - 25,000 25,001 - 40,000 40,001 and over SEWER RATES 2025 - 2026 Outside City 25,001 - 40,000 9.14 3/4 15,001 - 25,000 6.63 25,001 - 40,000 7.08 40,001 and over 7.71 27.61 Commodity rate (per thousand gallons) Residential (over 2,000 gal) Commercial (over 2,000 gal) 7.16 9.65 Rate 34.12 41.47 56.13 92.86 136.91 239.73 386.61 989.72 2,533.64 6,486.13 Meter size (inches 5/8 3/4 1 1 1/2 2 3 171 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2025- _____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING RESOLUTION NO. 2024-066, ADOPTION OF THE MASTER FEE SCHEDULE, AMENDING THE MASTER FEE SCHEDULE, WHICH IS ATTACHED HERETO AND INCORPORATED HEREIN AS ATTACHMENT “A”; PROVIDING A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of The Colony adopted the Master Fee Schedule for Fiscal Year 2024-2025 by Resolution No. 2024-066, passed and approved on the 3rd day of September 2024; and WHEREAS, the City desires to amend the 2024-2025 Master Fee Schedule, providing for new fees and fee amendments for the City; and WHEREAS, after consideration and review, the City Council finds that Resolution No. 2024-066, as amended is the new Master Fee Schedule, which is attached hereto and incorporated herein as Attachment “A,” be adopted to provide fees for the City of The Colony. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THAT: Section 1. That Resolution No. 2024-066, as amended by Attachment “A”, be incorporated as the Master Fee Schedule. Section 2. That all provisions of any resolution of the City Council of the City of The Colony in conflict with the provisions of this resolution be, and the same are hereby, repealed, and all other provisions not in conflict with the provisions of this resolution shall remain in full force and effect. Section 3. This Resolution shall become effective on October 1, 2025, from and after its passage, as the law and charter in such cases provide. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 2nd DAY OF SEPTEMBER 2025. _____________________________ Richard Boyer, Mayor City of The Colony, Texas 172 ATTEST: ___________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: __________________________________ Jeffrey L. Moore, City Attorney 173 Agenda Item No: 6.1 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Discussion Agenda Section: executive session Suggested Action: A. Council shall convene into a closed executive session pursuant to Sections 551.072 and 551.087 of the Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s). B. Council shall convene into a closed executive session pursuant to Section 551.074 of the Texas Government Code to deliberate the evaluation, reassignment, duties, discipline, or dismissal of the City Secretary. Background: 174 Agenda Item No: 7.1 CITY COUNCIL Agenda Item Report Meeting Date: September 2, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Discussion Agenda Section: executive session action Suggested Action: A. Any action as a result of executive session regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and the offer of a financial or other incentive to a business prospect(s). B. Any action as a result of executive session regarding the evaluation, reassignment, duties, discipline, or dismissal of the City Secretary. Background: 175