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HomeMy WebLinkAboutCity Packets - City Council - 09/16/2025 - RegularCITY OF THE COLONY CITY COUNCIL AGENDA TUESDAY, SEPTEMBER 16, 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 Items of Community Interest 1.6 Receive presentation from the Library regarding upcoming events and activities. (Charters) 2.0 CITIZEN INPUT 3.0 WORK SESSION 3.1 Receive a presentation, discuss and provide staff direction regarding proposed updates to land uses within the "Retail, Other" category. (Williams) 3.2 Discuss and provide staff direction on adding an additional school crossing guard on North Colony Blvd. (Perez) 3.3 Council to provide direction to staff regarding future agenda items. (Council) 4.0 CONSENT AGENDA 4.1 Consider approving City Council Regular Session meeting minutes from September 2, 2025. (Stewart) 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 16, 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. 1 4.2 Consider approving an ordinance to allow an exception to the Code of Ordinances Section 6- 192, (a) & (b) to allow for a benefit concert until 11:00 p.m. on October 23, 2025, at TopGolf, 3760 Blair Oaks Drive. (Shallenburger) 4.3 Consider approving a resolution authorizing the Mayor to execute an amendment to a legislative consulting agreement with Desk 138, LLC in the amount of $18,000.00. (Shallenburger) 4.4 Consider approving a resolution authorizing the City Manager to participate in and execute any appropriate documentation related to the Secondary Manufacturers Opioid Settlements brought by the State of Texas. (Beene) 5.0 REGULAR AGENDA ITEMS 5.1 Discuss and consider an ordinance regarding the Site Plan application of "Costco Wholesale" an approximately 155,000 (gross floor area) wholesale and retail with fueling development. The subject site contains approximately 32 acres, located at the southwest intersection of Spring Creek Parkway and Grandscape Boulevard in the NFM-Grandscape Planned Development (PD25). (Williams) 5.2 Discuss and consider approving a resolution authorizing the City Manager to execute a contract with Flock Group Inc. for the purchase of a drone as a First Responder System in the amount of $450,000.00 using a combination of grant and general funds. (Foxall) 5.3 Discuss and consider approving a resolution authorizing the City Manager to execute a lease purchase agreement with Municipal Asset Management Inc. to purchase a Lenco armored security vehicle in an amount not to exceed $421,234.45. (Foxall) 5.4 Conduct a public hearing, discuss and consider approving an ordinance levying of the Public Improvement District Annual Assessment on properties located within the City of The Colony Public Improvement District No. 1 for the Fiscal Year 2025-26. (Maurina) 5.5 Discuss and consider approving a resolution casting the city's votes for nominees to serve on the Denton Central Appraisal District Board of Directors for a one-year or three-year term beginning January 1, 2026. (Council) 6.0 EXECUTIVE SESSION 2 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 551.071 of the Texas Government Code to seek legal advice from the city attorney regarding pending or contemplated litigation or settlement offer: City of The Colony, Texas v. Preston Tighe, Sick Realty, LLC and 3805 Overlook Court, The Colony, Texas 75056, Cause No. 24-1447-362, 362nd Judicial District Court, Denton County, Texas. 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 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 pending or contemplated litigation or settlement offer: City of The Colony, Texas v. Preston Tighe, Sick Realty, LLC and 3805 Overlook Court, The Colony, Texas 75056, Cause No. 24-1447-362, 362nd Judicial District Court, Denton County, Texas. C. 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. 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 10th day of September 2025. 4 Agenda Item No: 1.6 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: Library Item Type: Announcement Agenda Section: routine announcements, recognitions and proclamations Suggested Action: Receive presentation from the Library regarding upcoming events and activities. (Charters) Background: 5 Agenda Item No: 3.1 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: Planning Item Type: Presentation Agenda Section: work session Suggested Action: Receive a presentation, discuss and provide staff direction regarding proposed updates to land uses within the "Retail, Other" category. (Williams) Background: 6 Agenda Item No: 3.2 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Discussion Agenda Section: work session Suggested Action: Discuss and provide staff direction on adding an additional school crossing guard on North Colony Blvd. (Perez) Background: 7 Agenda Item No: 3.3 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 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: 8 Agenda Item No: 4.1 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 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 September 2, 2025. (Stewart) Background: Attachments: Sept. 2, 2025 Minutes.docx 9 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 September 2, 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 2nd day of September 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 Absent, personal Present Present Present Present Present Present And with 6 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 Pro Tem Ensweiler called the meeting to order at 6:31 p.m. 1.2 Invocation Pastor Jess Allen with One Creation 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 Proclamation recognizing September 2025 as United Way of Denton County - LIVE UNITED Month. Mayor Pro Tem proclaimed the month of September 2025 as LIVE UNITED MONTH. On behalf of United Way Melinda Galler accepted the proclamation. 1.6 Proclamation acknowledging the month of September as "National Service Dog Month". Mayor Pro Tem proclaimed the month of September 2025 as National Service Dog Month. On behalf of Canine Companions, Margo Schmidt accepted the proclamation. 1.7 Proclamation recognizing the first full week of September 2025 as "Payroll Week". Mayor Pro Tem proclaimed September 1st-7th as City of The Colony Payroll Week On behalf of the Finance Department Accounting Manager, Stacey Davis accepted the proclamation. 10 City Council – Regular Meeting Agenda September 2, 2025 Page| 2 1.8 Items of Community Interest 1.9 Receive presentation from Parks and Recreation regarding upcoming events and activities. Special Events Supervisor, Chloe Hancock, provided upcoming events and activities to the Council. 2.0 CITIZEN INPUT None 3.0 WORK SESSION 3.1 Council to provide direction to staff regarding future agenda items. None 4.0 CONSENT AGENDA Motion to approve all items from the Consent Agenda - Marks; second by Schrag, motion carried with all ayes. 4.1 Consider approving City Council Regular Session meeting minutes from August 19, 2025. 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. RESOLUTION NO 2025-093 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. RESOLUTION NO 2025-094 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 11 City Council – Regular Meeting Agenda September 2, 2025 Page| 3 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." Planning Director, Isaac Williams presented proposed ordinance to council. Public hearing was opened and closed at 6:54 p.m. Council provided discussion on the item. Motion to approve - Rainey; second by Wade, motion carried with all ayes. ORDINANCE NO. 2025-2616 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. Planning Director, Isaac Williams presented proposed ordinance to council. Public hearing was opened and closed at 7:05 p.m. Motion to approve - Marks; second by Holtz, motion carried with all ayes. ORDINANCE NO. 2025-2617 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. Planning Director, Isaac Williams presented proposed ordinance to council. Public hearing was opened and closed at 7:11 p.m. Motion to approve - Wade; second by Rainey, motion carried with all ayes. ORDINANCE NO. 2025-2618 12 City Council – Regular Meeting Agenda September 2, 2025 Page| 4 5.4 [CONTINUED FROM AUGUST 19, 2025] 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. Council provided discussion on the item. Motion to approve with corrections as stated - Rainey; second by Wade, motion carried with all ayes. RESOLUTION NO. 2025-095 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. Purchasing Manager, Joseph Oerum presented proposed resolution to council. Council provided discussion on the item. Motion to approve - Wade; second by Rainey, motion carried with all ayes. RESOLUTION NO. 2025-096 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. Assistant City Manager, Tim Miller presented proposed ordinance to council. Council provided discussion on the item. Motion to approve - Schrag; second by Wade, motion carried with all ayes. ORDINANCE NO. 2025-2619 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. Assistant City Manager, Tim Miller presented proposed ordinance to council. Council provided discussion on the item. 13 City Council – Regular Meeting Agenda September 2, 2025 Page| 5 Motion to approve - Marks; second by Schrag, motion carried with all ayes. ORDINANCE NO. 2025-2620 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. Assistant City Manager, Tim Miller presented proposed resolution to council. Council provided discussion on the item. Motion to approve - Wade; second by Marks, motion carried with all ayes. RESOLUTION NO. 2025-097 Executive Session was convened at 7:45 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. Regular Session was reconvened at 8:04 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. ***ITEM REMOVED FROM AGENDA WITH NO DISCUSSION*** ADJOURNMENT With there being no further business to discuss, the meeting adjourned at 8:04 p.m. 14 City Council – Regular Meeting Agenda September 2, 2025 Page| 6 APPROVED: __________________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: _____________________________________ Tina Stewart, TRMC, CMC, City Secretary 15 Agenda Item No: 4.2 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Ordinance Agenda Section: consent agenda Suggested Action: Consider approving an ordinance to allow an exception to the Code of Ordinances Section 6-192, (a) & (b) to allow for a benefit concert until 11:00 p.m. on October 23, 2025, at TopGolf, 3760 Blair Oaks Drive. (Shallenburger) Background: Attachments: Letter to City 2025.pdf Ord 2025-xxxx Noise Exception - TopGolf.pdf 16 17 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2025- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, GRANTING A SPECIAL EXEMPTION FROM THE SOUND ORDINANCE PURSUANT TO SECTION 6-192 OF THE CODE OF ORDINANCES OF THE CITY OF THE COLONY, TEXAS, BY AUTHORIZING A CONCERT UNTIL 11:00 P.M. ON OCTOBER 23, 2025, AT TOPGOLF, LOCATED AT 3760 BLAIR OAKS DRIVE, THE COLONY, TEXAS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALING CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, TopGolf has requested an exemption to the City’s noise ordinance for the purpose of a benefit concert until 11:00 pm on October 23, 2025, at TopGolf, located at 3760 Blair Oaks Drive, The Colony, Texas (hereinafter referred to as the “Event”); and WHEREAS, Section 6-192(c)(2) of the Code of Ordinances of the City of The Colony, Texas, provides in pertinent part that “[T]he use of any loudspeaker or amplifier or musical instrument in such manner or with such volume, particularly between 10:00 p.m. and 7:00 a.m., that annoys and disturbs persons of ordinary sensibilities in the immediate vicinity thereof; provided, however, that upon application by the user of such devices, the city council may make special exemption or exception to this clause for such time as the city council feels will serve the public welfare;” and WHEREAS, the City Council of the City of The Colony, Texas, finds and determines that it is in the public interest and welfare of the City, consistent with Section 6-192(c)(2) of the Code of Ordinances of the City of The Colony, Texas, to grant a special exemption or exception to TopGolf for the Event. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. That the foregoing recitals are hereby found to be true and correct legislative findings of the City of The Colony, Texas, and are fully incorporated into the body of this Ordinance. SECTION 2. That the City Council of the City of The Colony, Texas, finds and determines that it is in the public interest and welfare of the City, consistent with Section 6- 192(c)(2) of the Code of Ordinances of the City of The Colony, Texas, to grant TopGolf a special exemption or exception for the use the Event. SECTION 3. 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 18 remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 4. That all provisions of the ordinances of the City of The Colony, Texas, in conflict with the provisions of this Ordinance be, and the same are hereby amended, repealed, and all other provisions of the ordinances of the City not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 5. This Ordinance shall become effective from and after its date of passage in accordance with law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 16TH 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 19 Agenda Item No: 4.3 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Resolution Agenda Section: consent agenda Suggested Action: Consider approving a resolution authorizing the Mayor to execute an amendment to a legislative consulting agreement with Desk 138, LLC in the amount of $18,000.00. (Shallenburger) Background: Attachments: First Amendment to Lobbyist Agreement - Desk 138 - 20250904.pdf Res. 2025-xxx_Desk 138 LLC Consulting Services Agreement_09052025.docx 20 FIRST AMENDMENT TO LOBBYIST AGREEMENT This FIRST AMENDMENT TO LOBBYIST AGREEMENT (hereinafter referred to as the “First Amendment”) is made and entered into by and between the CITY OF THE COLONY, TEXAS, a Texas home-rule municipality (hereinafter referred to as the “City”); and DESK 138, LLC, a Texas limited liability company (hereinafter referred to as the “Desk 138”): RECITALS: WHEREAS, the City and Desk 138 previously entered into a Lobbyist Agreement which has a term expiring on September 30, 2025 (hereinafter referred to as the “Original Agreement”); and WHEREAS, the City and Desk 138 desire to extend the term of the Original Agreement for three (3) months. NOW, THEREFORE, for and in consideration of the agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and Desk 138 agree as follows: SECTION 1. FINDINGS INCORPORATED. The foregoing recitals are hereby incorporated into the body of this First Amendment and shall be considered part of the mutual covenants, consideration and promises that bind the parties. SECTION 2. AMENDMENT TO ORIGINAL AGREEMENT. (a) Amendment to Original Agreement. That Section 3 of the Original Agreement is hereby amended to read as follows: “(3) TERM OF AGREEMENT The term of this Agreement shall commence on October 1, 2024, and shall continue in full force until December 31, 2025. This Agreement may be renewed by Client for an additional period(s) upon the written mutual agreement of both parties. Either party may terminate the Agreement for any reason, or for no reason, on 60-days’ notice to the other party. Services shall be pro-rated through the date of termination.” SECTION 3. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this First Amendment: (a) Amendments. This First Amendment constitutes the entire understanding and agreement of the parties as to the matters set forth in this First Amendment. No alteration of or 21 amendment to this First Amendment shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. (b) Assignment. This First Amendment may not be assigned without the express written consent of the other party. (c) Counterparts. This First Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same document. (d) Effective Date. The effective date (the “Effective Date”) of this First Amendment shall be the date of the latter to execute this First Amendment by and between the City and Desk 138. (e) Original Agreement and any Amendments. All of the terms, conditions, and obligations of the Original Agreement, and any amendments remain in full force and effect except where specifically modified by this First Amendment. (f) Severability. The provisions of this First Amendment are severable. If any paragraph, section, subdivision, sentence, clause, or phrase of this First Amendment is for any reason held by a court of competent jurisdiction to be contrary to law or contrary to any rule or regulation have the force and effect of the law, the remaining portions of the First Amendment shall be enforced as if the invalid provision had never been included. (g) Time is of the Essence. Time is of the essence in the performance of this First Amendment. [The Remainder of this Page Intentionally Left Blank] 22 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed. CITY: CITY OF THE COLONY, TEXAS, a Texas home-rule municipality, By: Richard Boyer, Mayor Date Signed: ATTEST: Tina Stewart, City Secretary DESK 138: DESK 138, LLC, a Texas limited liability company, By: Larry D. Gonzales, Managing Member Date Signed: 23 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2025 - ____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING AN AMENDMENT TO A LEGISLATIVE CONSULTING AGREEMENT WITH DESK 138, LLC, A TEXAS LIMITED LIABILITY COMPANY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of The Colony, Texas, hereby approves an amendment to legislative consulting agreement with Desk 138, LLC, a Texas limited liability company for Legislative Consulting services in the amount of $18,000.00; and WHEREAS, the City Council of the City of The Colony, Texas, authorizes the Mayor to execute the First Amendment to legislative consulting agreement, attached hereto as Exhibit A, and any and all documents related thereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. The findings set forth above 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, hereby authorizes and approves the amendment to the legislative consulting agreement with Desk 138, LLC, a Texas limited liability company for legislative consulting services in the amount of $18,000.00, and authorizes the Mayor to execute said First Amendment to the Agreement, attached hereto as Exhibit A, and any and all documents related thereto. SECTION 3. This Resolution shall become effective from and after its date of passage in accordance with law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 16th DAY OF SEPTEMBER 2025. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary 24 APPROVED AS TO FORM: Jeff L. Moore, City Attorney 25 Exhibit A [First Amendment to Lobbyist Agreement] 26 Agenda Item No: 4.4 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Resolution Agenda Section: consent agenda Suggested Action: Consider approving a resolution authorizing the City Manager to participate in and execute any appropriate documentation related to the Secondary Manufacturers Opioid Settlements brought by the State of Texas. (Beene) Background: Attachments: Res. 2025-xxx Opioid Settlement - Secondary Manufacturers Settlements.docx 27 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2025 - _______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, ELECTING TO PARTICIPATE IN THE OPIOIDS SECONDARY MANUFACTURERS SETTLEMENTS CONCERNING THE NATIONAL OPIOID CRISIS; AUTHORIZING THE MAYOR, CITY MANAGER AND STAFF TO EXECUTE ANY AND ALL APPROPRIATE DOCUMENTATION RELATED THERETO; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, a proposed national settlement agreement (hereinafter referred to as the “Settlement”) has been reached that would resolve all opioid claims for Texas and its political subdivisions against Secondary Manufacturers Settlements which includes eight (8) opioids manufacturers: Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun and Zydus (hereinafter collectively referred to as “Secondary Manufacturers”); and WHEREAS, the City Council of the City of The Colony, Texas, hereby elects to participate in the Settlement, and authorizes the Mayor, City Manager, and/or City staff to execute a Subdivision Participation and Release Form, and any and all related forms concerning the Secondary Manufacturers Settlement; and WHEREAS, the City Council of the City of The Colony, Texas, authorizes the Mayor, City Manager and/or City staff to execute any and all documents related thereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. The findings set forth above 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, hereby elects to participate in the Settlement, and authorizes the Mayor or City Manager to execute the Subdivision Participation and Release Form. SECTION 3. The City Council of the City of The Colony, Texas, hereby authorizes the Mayor, City Manager and/or City staff to execute any and all documentation necessary related to the Secondary Manufacturers Settlement, and to take any and all other steps requested or authorized by relative to the Settlement referenced in this Resolution. SECTION 4. This Resolution shall become effective from and after its date of passage in accordance with law. 28 PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 16TH DAY OF SEPTEMBER 2025. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeff Moore, City Attorney 29 Agenda Item No: 5.1 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: Planning Item Type: Ordinance Agenda Section: regular agenda items Suggested Action: Discuss and consider an ordinance regarding the Site Plan application of "Costco Wholesale" an approximately 155,000 (gross floor area) wholesale and retail with fueling development. The subject site contains approximately 32 acres, located at the southwest intersection of Spring Creek Parkway and Grandscape Boulevard in the NFM-Grandscape Planned Development (PD25). (Williams) Background: Please see the attached staff report drawings, maps and illustrations for detailed land use and site layout and staff recommendations Attachments: SP25-0003 CC Staff Report Costco Wholesale- Site Plan -final.doc SP25-0003 - Costco The Colony - exhibit A.pdf Ord. 2025-xxxx Costco Site Plan.docx 30 1 CITY COUNCIL REPORT AGENDA DATE: September 16, 2025 DEPARTMENT: Planning and Development Department SUBJECT: SP25-0003 – Costco Wholesale The Colony– Site Plan Discuss and consider an ordinance regarding the Site Plan application of “Costco Wholesale,” an approximately 155,000 (gross floor area) wholesale and retail with fueling development. The subject site contains approximately 32 acres, located at the southwest intersection of Spring Creek Parkway and Grandscape Boulevard in the NFM-Grandscape Planned Development (PD25). OWNER/APPLICANT Owner: The Colony Local Development Corp Applicant: Ashley Johnson Richardson, TX Kimley-Horn and Associates, Inc. EXISTING CONDITION OF PROPERTY The subject site is currently undeveloped. ADJACENT ZONING AND LAND USE North - Planned Development PD-25 – Undeveloped South - City of Plano - Residential East - City of Plano- Commercial West - Planned Development PD-25 - Mixed Retail Commercial PROPOSED DEVELOPMENT The proposed development is a Costco Wholesale with fueling facility. The subject site is currently undeveloped and is located at the easternmost portion of the Grandscape entertainment center. The subject site is located within Planned Development 25 (PD-25) which is an approximately 433.81-acre zoning district bound by Grandscape Boulevard to the north, Spring Creek Parkway to the east, the City of Plano to the south and Destination Drive to the west. DEVELOPMENT REVIEW COMMITTEE (DRC) REVIEW The Development Review Committee (DRC) recommends the following conditions if approved: ATTACHMENTS 1. Staff Analysis 2. Location Map 3. Site plan Exhibits 4. Applicant Narrative 31 2 ATTACHMENT 1 Staff Analysis Land Use Analysis Planned Development 25 permits large scale retail and wholesale developments such as Costco “by-right;” the retail fueling component is ancillary to the primary operations and no separate land use consideration is necessary at this time. Elevations The elevation plan reflects a modern aesthetic with elevations consisting predominately of mixed masonry and metal. The building’s color palette mainly consists of gray and brown consistent with the themes and brand of the establishment. The building is designed with horizontal and vertical articulations, texture, color changes and the incorporation of landscape to establish visual interest. The site provides a fueling area that will contain a minor kiosk styled building to accommodate patrons and staff. The elevations reflect consistency with the primary building and similar structures at other sites. Although the design is consistent with the Costco brand, the overall design including material composition and color selections are consistent with developments within Planned Development 25 (PD-25). Circulation and Parking The site plan reflects an expansive parking field containing approximately 897 parking spaces with 18 accessible van spaces: vehicular parking is located along the northern and eastern portions of the building. The buildings loading area is along the western façade. Circulation is provided throughout the site with primary access to the site from Grandscape Boulevard and Spring Creek Parkway. The northeast portion of the site is dedicated to a fueling component of the development. The fueling area contains traditional recirculation from the main parking field; no access to the adjacent thoroughfares is provided. Landscaping The landscape plan reflects the planting of various canopy trees, small ornamental trees, shrubs, and ground cover. The landscape plan reflects the uses of a planted street buffer along Spring Creek Parkway and Grandscape Boulevard. Plantings within these buffers offer screening of modest vehicular screening, site framing and aesthetic value. The site also provides vegetation along the western perimeter adjacent to the proposed detention pond, as well as adjacent to the established residential development to the south (Kings Ridge -City of Plano). The landscape plan reflects internal plantings within islands and peninsulas. The development incorporates a combination of natural and synthetic material, both through traditional landscape and xeriscape concepts. All landscaping will be irrigated in compliance with City standards. Infrastructure Improvements Specific infrastructure improvements will be provided in accordance with an executed Developers Agreement DEVELOPMENT REVIEW COMMITTEE (DRC) REVIEW The Development Review Committee (DRC) recommends approval. 32 33 34 35 36 38 39 40 47 48 49 56 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2025-____ SITE PLAN – COSTCO WHOLESALE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING A SITE PLAN APPLICATION FOR COSTCO WHOLESALE AN APPOXIMATELY 155,000 (GROSS FLOOR AREA) WHOLESALE AND RETAIL WITH FUELING DEVELOPMENT ON APPROXIMATELY 32 ACRES, LOCATED AT THE SOUTHWEST INTERSECTION OF SPRING CREEK PARKWAY AND GRANDSCAPE BOULEVARD IN THE NFM-GRANDSCAPE PLANNED DEVELOPMENT (PD25); PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALER CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the City Council of the City of The Colony, Texas, in compliance with the laws of the State of Texas, and the Code of Ordinances of the City of The Colony, Texas, have given requisite notices and consideration of the site plan application and related plans, and the City Council of the City of The Colony, Texas, is of the opinion and finds that Site Plan Application No. SP25-0003 for “Costco Wholesale,” an approximately 155,000 (gross floor area) wholesale and retail with fueling development on approximately 32 acres, located at the southwest intersection of Spring Creek Parkway and Grandscape Boulevard in the NFM-Grandscape Planned Development (PD25) should be approved. 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 City Council of the City of The Colony, Texas, does hereby approve the Site Plan, Landscape Plan, building elevations and photometric plan applicable to the subject area, copies of which are attached hereto as Exhibit A of this Ordinance. SECTION 3. That it is hereby declared to be the intention of the City Council of the City of The Colony, Texas, 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. That 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 58 uncodified, which are not in conflict with the provisions of this Ordinance, shall remain in full force and effect. SECTION 5. That this Ordinance shall become effective immediately upon its passage. DULY PASSED by the City Council of the City of The Colony, Texas, this 16th day of September 2025. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeff L. Moore, City Attorney 59 Exhibit A 60 Agenda Item No: 5.2 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: Police Item Type: Resolution Agenda Section: regular agenda items Suggested Action: Discuss and consider approving a resolution authorizing the City Manager to execute a contract with Flock Group Inc. for the purchase of a drone as a First Responder System in the amount of $450,000.00 using a combination of grant and general funds. (Foxall) Background: On May 20, 2025, City Council approved Resolution #2025-051 authorizing the City Manager to apply for the Motor Vehicle Crime Prevention Authority (MVCPA) Grant through the Texas Department of Motor Vehicles in the amount of $150,000. In July, the City was awarded the grant, which requires a 20% local match. As this is a reimbursement grant, the City will initially pay $150,000 and be reimbursed $125,000, with the City contributing $25,000. These funds will be used for the purchase of a Flock Aerodome Drone as a First Responder (DFR) system. The attached contract with Flock is for an initial two-year term. In Year One (FY 2025-26), costs will be covered by the MVCPA grant and the City's 20% match. This purchase includes the Flock911 integration, and Flock will also provide the Aerodome RADAR system at no cost, enabling drone operations up to 400 feet beyond visual line of sight. In Year Two (FY 2026-27), the cost to continue the DFR system and RADAR will be $300,000. The City intends to apply for MVCPA funding again, which, if awarded, would cover $250,000 with a required $50,000 City match. If the grant is not awarded, staff will evaluate the program's effectiveness, alignment with departmental mission, and available funding. If sufficient funds are not available, the contract may be terminated under Section 11.15 of our current contract, which allows cancellation with 30 days’ notice due to lack of public funding. Attachments: TX - The Colony PD - DFR Agreement Flock Terms and Conditions Sole Source Letter DFR - The Colony Res. 2025- xxx Flock Group Inc.docx 61 Flock Safety + TX - The Colony PD ______________ Flock Group Inc. 1170 Howell Mill Rd, Suite 210 Atlanta, GA 30318 ______________ MAIN CONTACT: Blaine Parsons blaine.parsons@flocksafety.com 940-613-1674 62 ORDER FORM This order form (“Order Form”) hereby incorporates and includes the terms of the previously executed agreement (the “Terms”) which describe and set forth the general legal terms governing the relationship (collectively, the "Agreement" ). The Terms contain, among other things, warranty disclaimers, liability limitations and use limitations. This additional services Agreement will be effective when this Order Form is executed by both Parties (the “Effective Date”) Customer: TX - The Colony PD Initial Term: 24 Months Legal Entity Name: TX - The Colony PD Renewal Term: 24 Months Accounts Payable Email: Payment Terms: Net 30 Address: 6800 Main St The Colony, Texas 75056 Billing Frequency: Annual Plan - Invoiced at First Camera Validation. Retention Period: 30 Days Hardware and Software Products Annual recurring amounts over subscription term Item Cost Quantity Total Flock Safety Platform $300,000.00 Flock Safety Drone Hardware and Services Flock Aerodome DFR - Radar Included 1 Included Flock Aerodome DFR - M350 + Dock Included 1 Included Flock911 for Aerodome Included 1 Included <# <<# < Professional Services and One Time Purchases Item Cost Quantity Total One Time Fees Subtotal Year 1: $150,000.00 Annual Recurring Subtotal: $300,000.00 Discounts: $150,000.00 Estimated Tax: $0.00 Contract Total: $450,000.00 Taxes shown above are provided as an estimate. Actual taxes are the responsibility of the Customer. This Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term. The Term for Flock Hardware shall commence upon first installation and validation, except that the Term for any Flock Hardware that requires self- installation shall commence upon execution of the Agreement. In the event a Customer purchases more than one type of Flock Hardware, the earliest Term start date shall control. In the event a Customer purchases software only, the Term shall commence upon execution of the Agreement. Special Terms: • In the first year of the deployment, Flock will provide Customer with complimentary use of radar [Flock Aerodome DFR - Radar]. 63 Billing Schedule Billing Schedule Amount (USD) Year 1 At First Camera Validation $150,000.00 Annual Recurring after Year 1 $300,000.00 Contract Total $450,000.00 *Tax not included Discounts Discounts Applied Amount (USD) Flock Safety Drone Hardware and Services $150,000.00 Flock Safety Platform $0.00 Flock Safety Add-ons $0.00 Flock Safety Professional Services $0.00 64 Product and Services Description Flock Safety Platform Items Product Description Flock Aerodome DFR - Radar Drone as First Responder (DFR) 2.0 detect and avoid capabilities for operations up to 400 ft according to agreed-upon UASFM altitudes. Includes FAA regulatory services and installation. Flock Aerodome DFR - M350 + Dock Drone as First Responder (DFR) 2.0 system, including hardware, software, and services. Hardware includes Matrice (M350) drone, camera, batteries, and battery-swapping dock. Software includes remote piloting, air traffic awareness, spectator view, mobile app, flight logging, mission reporting, and community engagement dashboard. Services include FAA regulatory services, SOP development, training, and ongoing support. Flock911 for Aerodome Flock911 enables users to access live 911 calls directly within the FlockOS™ software, delivering real-time situational context that ensures faster, safer, and more efficient responses to calls for service. FlockOS Features & Description FlockOS Features Description 65 PRODUCT ADDENDUM UNMANNED AIR SUPPORT AS A SERVICE (UASaaS) PROGRAM FOR DRONE RESPONSE SERVICES WHEREAS, Customer has determined that it is in the interests of public safety for it to have the ability to utilize unmanned drones during crisis incidents, public emergencies, and in certain public safety operations, to the extent permitted by law; WHEREAS, Flock is in the business of providing unmanned drone services (the unmanned drone services shall be considered part of the “Flock Services”) and Flock Hardware; NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Customer and Flock agree as follows: 1. UNMANNED AIR SUPPORT GENERAL TERMS OF DELIVERY 1.1 Flock Services and Hardware. Flock shall provide access to Customer the Flock Services and related Flock Hardware (the “Flock Hardware”) listed on the Order Form upon the terms and conditions set forth in the Agreement. Flock maintains ownership of all the Flock Hardware. Each year, as specified in the Order Form, the Customer will be provided with a designated number of batteries. Customer may place an order for additional Flock Hardware (e.g., batteries prior to 500 complete charging cycles, hardware damaged due to Customer’s error, additional spares, etc.) at Flock’s then current list price, which will be made available to Customer upon request. 1.2 FAA Regulatory Waivers. Flock will assist Customer in acquiring any required Federal Aviation Administration (“FAA”) regulatory waivers. 1.3 Delivery. Flock shall make the Flock Hardware available to Customer at Customer’s delivery address set forth in the Order Form (“Delivery Point”). If for any reason Customer fails to accept delivery of the Flock Hardware by the date fixed pursuant to Flock's notice stating that the Flock Hardware is available at the Delivery Point: (i) Customer shall bear the risk of loss to the Flock Hardware; (ii) the Flock Hardware shall be deemed to have been delivered; and (iii) Flock, at its option, may store the Flock Hardware until collected by Customer, whereupon Customer shall be liable for all related costs and expenses (including, without limitation, storage and insurance). Once the Flock Hardware is made available as the Delivery Point, Customer is responsible for any resulting use of the Flock Hardware by all Authorized Users and all third-parties who may gain access to the same. 1.4 Pilot Services. Upon Customer’s request, Flock will make available an employee or independent contractor pilot (each a “Pilot”) to Customer for purposes of operating the Flock Hardware (hereafter the “Pilot Services”) at the pricing set forth in the Order Form. The Pilot Services shall be considered part of the Flock Services. When opera ting the Flock Hardware, the Pilot shall comply with the reasonable requests of Customer. Such Pilot Services may be used for up to forty (40) hours per week during the Term. Customer’s use of the Pilot Services shall not alleviate any of Customer’s obligations set forth herein. Customer shall provide Pilots with a safe working environment when on Customer’s premises. 2. LOSS AND DAMAGE OF FLOCK HARDWARE 2.1 Customer assumes and shall bear the entire risk of loss, damage to, theft or destruction of, all Flock Hardware. LOSS OR DAMAGE TO THE FLOCK HARDWARE, OR ANY PART OF IT, SHALL NOT RELIEVE CUSTOMER OF ANY OBLIGATION UNDER THE AGREEMENT. Customer’s obligations with respect to this Section shall commence upon delivery of the Flock Hardware. 66 2.2 Customer agrees to immediately notify Flock of any accident or event of loss or damage involving the Flock Hardware. The notification shall include any information as may be pertinent to Flock's investigation of such accident, loss, or damage, or which Flock may reasonably r equire. 3. FEES. The Order Form dictates the Flock Hardware, software, personnel, and Flock Services and the entire Flock Services corresponding fees. Customer shall pay the Fees as described on the Order Form. 4. TERM. The term of this Agreement commences on the Effective Date of this Agreement and continues until terminated as provided under this Agreement (the “Term”). Each Order Form shall commence and expire and/or terminate according to the terms set forth in such Order Form. On expiration or termination of the Agreement, all licenses provided hereunder by Flock shall immediately expire. 5. FLOCK DRONE IP. Customer Data does not include, and Flock Drone IP (defined herein) expressly includes, any data to the extent processed by, resulting as an output of, or based on the usage of, the Flock Services, Flock Hardware, including, without limitation, data collected by Flock’s radar and radio frequency sensors. Such Flock Drone IP shall be Flock’s Confidential Information. Flock shall own all rights to (i) any data input into the Flock Services, Flock Hardware by or on behalf of Flock (not including any Custome r Data) and (ii) any aggregated and anonymized data extracted or derived from the Flock Services, or use of the Flock Hardware, including all aggregated and anonymized usage data, statistical data, transactional data, metadata, market data, flight logs and flight history, telemetry data and logs, fleet information including drone serial numbers and models, connected device information including radar data concerning the surrounding airspace, and other aggregated and anonymized data collected from user data and files (collectively, “Flock Drone IP”). Without limiting the generality of the foregoing, Flock reserves the right to create and market public indexes, analysis or insights created from such data. Customer agrees that it will not share, sell, transfer, or make available any data generated by the Flock Hardware, including all Flock Drone IP to which it may have access, to any third party without the prior express written consent of Flock 67 SCHEDULE A SERVICES Flock makes no warranties regarding the efficacy of the training detailed below. 1. AIRWORTHINESS TRAINING Flock will make commercially reasonable efforts to provide training for the Customer to maintain the airworthiness of its drones, including compliance-related trainings. Customer shall be responsible for ensuring that all crew, including pilot in command, visual observer, sensor or payload operator, or other persons necessary for the safe operation of the flight have the qualifications, experience, l icenses, and certificates required by applicable FAA regulations and that all have the necessary skill required to perform their duties. After completion of training, Customer will be responsible for maintaining the airworthiness of drones to which Customer is responsible and the ensuring that the respective operations are in line with all applicable laws and regulations. The training will be conducted via both online and in-person methods, as agreed upon by both parties. The frequency and duration of training will be mutually decided and scheduled to the convenience of the Customer. 2. FLIGHT TRAINING Flock will assist the Customer in obtaining FAA BVLOS waivers and train the Customer on compliance matters related to such waivers. Flock will start with one deployment location at a time, and work up to the agreed upon number of deployment locations for all UAS. As part of the BVLOS process, Flock will provide training materials to the Customer to certify all employees of the Customers selected as Visual Observers (“VOs”) to help aid in BVLOS operations. Flock will provide training to officers on how to utilize the Flock IP. This will consist of: ● Showing how to access Flock on their respective internet devices ● Showing how to view a live stream through the application ● Showing how to control the drone using the application ● Showing how to report problems if they come across them on the application The training will be conducted via both online and in-person methods, as agreed upon by both parties. The frequency and duration of training will be mutually decided and scheduled to the convenience of the Customer. 3. FLOCK HARDWARE TRAINING There will also be training for the Customer to use the Flock Hardware. This training will consist of: ● Discussing maintenance list for the drone, and how to maintain airworthiness ● Teaching how to fly the drone autonomously using the Flock IP ● Teaching how to fly the drone manually using the remote controller 68 The training will be conducted via both online and in-person methods, as agreed upon by both parties. The frequency and duration of training will be mutually decided and scheduled to the convenience of the Customer. 4. DEPLOYMENT SUPPORT Flock will teach the Customer how to dispatch the Flock Hardware using the software for 911 calls. Only personnel authorized by Customer may have access to the livestream from the drone. They will also be taught on how to use Flock’s software to view said stream on any internet-connected device. Authorized personnel may have access to the Flock IP, which can convey the current status of the drone, and how to tell the drone to conduct additional maneuvers if needed. All operations must be conducted by a Pilot in Command (“PIC”), who is an FAA-certified pilot. Customer will provide the PICs needed to sustain this program. Flock will assist in drafting a Standard Operating Procedure (“SOP”) as well as department policies regarding access, deployments, privacy, and community engagement. Flock will ensure correct implementation of each Flock station and its included Flock Hardware which may or may not include the aircraft, on-prem servers, charging dock installations, radars, and more. 69 SCHEDULE B SPECIFICATIONS Customer must abide by the following standards: Operational: ● Per FAA regulations, and without the necessary waiver, a minimum of one pilot is required to operate each drone. ● Work with Flock to get BVLOS waivers for the city to fully use Flock’s product and services. ● Train members of the city to be VOs so that the Customer can have FAA-compliant and safe BVLOS operations (Flock will provide training material if needed). ● If Customer wants to connect Flock’s software to their Computer Aided Dispatch (“CAD”) system, Customer will provide access to said CAD system at no cost to Flock to location information and other pertinent information about calls-for-service as they are placed. ● Flock will provide their Flock software interface to command the Flock Hardware . Customer must independently access and store any personal information about calls-for-services other than their location and the type of response (police, fire, or EMS) they prompted. Customer shall be responsible to integrate with CAD software to pull location information and call type information of every call-for-service that the Customer decides the drone should be deployed to, so long as there are no monetary charges to Flock for said integration. 70 By executing this Order Form, Customer represents and warrants that it has read and agrees to all of the terms and conditions contained in the previously executed agreement. As well as the Prepared911 Terms and Conditions, available at https://www.prepared911.com/prepared-live-terms-and-conditions. / The Parties have executed this Agreement as of the dates set forth below. FLOCK GROUP, INC. Customer: TX - The Colony PD By: \FSSignature2\ By: \FSSignature1\ Name: \FSFullname2\ Name: \FSFullname1\ Title: \FSTitle2\ Title: \FSTitle1\ Date: \FSDateSigned2\ Date: \FSDateSigned1\ PO Number: 71 Terms and Conditions Last Updated: July 22, 2025 TERMS AND CONDITIONS 1. DEFINITIONS Certain capitalized terms, not otherwise defined herein, have the meanings set forth or cross-referenced in this Section 1. 1.1 “Agreement” means the order form (to be provided as Exhibit A, “Order Form”), these terms and conditions, and any document therein incorporated by reference in section 11.4. 1.2 “Anonymized Data” means Customer Data permanently stripped of identifying details and any potential personally identif iable information, by commercially available standards which irreversibly alters data in such a way that a data subject (i.e., individual person or entity) can no longer be identified directly or indirectly. 1.3 “Authorized End User(s)” means any individual employees, agents, or contractors of Customer accessing or using the Services, under the rights granted to Customer pursuant to this Agreement. 1.4 “Customer Data” means the data, media, and content provided by Customer through the Services. For the avoidance of doubt, the Customer Data will include the Footage. 1.5. “Customer Hardware” means the third-party camera owned or provided by Customer and any other physical elements that interact with the Embedded Software and the Web Interface to provide the Services. 1.6 “Effective Date” means the date this Agreement is mutually executed (valid and enforceable) by both Parties. 1.7 “Embedded Software” means the Flock proprietary software and/or firmware integrated with or installed on the Flock Hardware or Customer Hardware. 1.8 “Flock Hardware” means the Flock device(s), which may include the pole, clamps, solar panel, installation components, and any other physical elements that interact with the Embedded Software and the Web Interface, to provide the Flock Se rvices as specifically set forth in the applicable Order Form. 1.9 “Flock IP” means the Services, the Embedded Software, and any intellectual property or proprietary information therein or otherwise provided to Customer and/or its Authorized End Users. Flock IP does not include Footage (as defined below). 72 1.10 “Flock Services” means the provision of Flock’s software and hardware situational awareness solution, via the Web Interface, for automatic license plate detection, alerts, audio detection, searching image records, video and sharing Footage. 1.11 “Footage” means still images, video, audio, and other data captured by the Flock Hardware or Customer Hardware in the course of and provided via the Flock Services. 1.12 “Integration Data” means any distribution of data from a Customer requested third party integration. 1.13 “Installation Services” means the services provided by Flock for installation of Flock Services. 1.14 “Permitted Purpose” means legitimate public safety and/or business purpose, including but not limited to the awareness, prevention, and prosecution of crime; investigations; and prevention of commercial harm, to the extent permitted by law. 1.15 “Retention Period” means the time period that the Customer Data is stored within the cloud storage, as specified in the applicable Order Form . 1.16 “Term” means the date, unless otherwise stated in the Order Form, upon which the cameras are validated by both Parties as operational. 1.17 “Web Interface” means the website(s) or application(s) through which Customer and its Authorized End Users can access the Services. 2. SERVICES AND SUPPORT 2.1 Provision of Access. Flock hereby grants to Customer a non-exclusive, non- transferable right to access the features and functions of the Flock Services via the W eb Interface during the Term, solely for the Authorized End Users. The Footage will be available for Authorized End Users to access and download via the Web Interface for the Retention Period. Authorized End Users will be required to sign up for an account and select a password and username (“User ID”). Customer shall be responsible for all acts and omissions of Authorized End Users. Customer shall undertake reasonable efforts to make all Authorized End Users aware of all applicable provisions of this Agreement and shall cause Authorized End Users to comply with such provisions. Flock may use the services of one or more third parties to deliver any part of the Flock Services, (such as using a third party to host the Web Interface for cloud storage or a cell phone provider for wireless cellular coverage). 2.2 Embedded Software License. Flock grants Customer a limited, non-exclusive, non-transferable, non-sublicensable (except to the Authorized End Users), revocable right to use the Embedded Software as it pertains to Flock Services, solely as necessary for Customer to use the Flock Services. 73 2.3 Support Services. Flock shall monitor the Flock Services, and any applicable device health, in order to improve performance and functionality. Flock will use commercially reasonable efforts to respond to requests for support within seventy-two (72) hours. Flock will provide Customer with reasonable technical and on-site support and maintenance services in-person, via phone or by email at support@flocksafety.com (such services collectively referred to as “Support Services”). 2.4 Updates to Platform. Flock may make any updates to system or platform that it deems necessary or useful to (i) maintain or enhance the quality or delivery of Flock’s products or services to its agencies, the competitive strength of, or market for, Flock’s products or services such platform or system’s cost efficiency or performance, or (ii) to comply with applicable law. Parties understand that such updates are necessary from time to time and will not diminish the quality of the services or materially change any terms or conditions within this Agreement. 2.5 Service Interruption. Services may be interrupted in the event that: (a) Flock’s provision of the Services to Customer or any Authorized End User is prohibited by applicable law; (b) any third-party services required for Services are interrupted; (c) if Services are being used for malicious, unlawful, or otherwise unauthorized use; (d) there is a threat or attack on any of the Flock IP by a third party; or (e) scheduled or emergency maintenance (“Service Interruption”). Flock will make commercially reasonable efforts to provide written notice of any Service Interruption to Customer, to provide updates, and to resume providing access to Flock Services as soon as reasonably possible after the event giving rise to the Service Interruption is cured. Flock will have no liability for any damage, liabilities, losses (including any loss of data or profits), or any other consequences that Customer or any Authorized End User may incur as a result of a Service Interruption. To the extent that the Service Interruption is not caused by Customer’s direct actions or by the actions of parties associated with the Customer, the time will be tolled by the duration of the Service Interruption (for any continuous suspension lasting at least one full day). For example, in the event of a Service Interruption lasting five (5) continuous days, Customer will receive a credit for five (5) free days at the end of the Term. 2.6 Service Suspension. Flock may temporarily suspend Customer’s and any Authorized End User’s access to any portion or all of the Flock IP or Flock Service if (a) there is a threat or attack on any of the Flock IP by Customer; (b) Customer’s or any Authorized End User’s use of the Flock IP disrupts or poses a security risk to the Flock IP or any other customer or vendor of Flock; (c) Customer or any Authorized End User is/are using the Flock IP for fraudulent or illegal activities; (d) Customer has violated any term of this provision, including, but not limited to, utilizing Flock Services for anything other than the Permitted Purpose; or (e) any unauthorized access to Flock Services 74 through Customer’s account (“Service Suspension”). Customer shall not be entitled to any remedy for the Service Suspension period, including any reimbursement, tolling, or credit. If the Service Suspension was not caused by Customer, the Term will be tolled by the duration of the Service Suspension. 2.7 Hazardous Conditions. Flock Services do not contemplate hazardous materials, or other hazardous conditions, including, without limit, asbestos, lead, or toxic or flammable substances. In the event any such hazardous materials are discovered in the designated locations in which Flock is to perform services under this Agreement, Flock shall have the right to cease work immediately. 3. CUSTOMER OBLIGATIONS 3.1 Customer Obligations. Flock will assist Customer Authorized End Users in the creation of a User ID. Authorized End Users agree to provide Flock with accurate, complete, and updated registration information. Authorized End Users may not select as their User ID, a name that they do not have the right to use, or any other name with the intent of impersonation. Customer and Authorized End Users may not transfer their account to anyone else without prior written permission of Flock. Authorized End Users shall not share their account username or password information and must protect the security of the username and password. Unless otherwise stated and defined in this Agreement, Customer shall not designate Authorized End Users for persons who are not officers, employees, or agents of Customer. Authorized End Users shall only use Customer-issued email addresses for the creation of their User ID. Customer is responsible for any Authorized End User activity associated with its account. Customer shall ensure that Customer provides Flock with up to date contact information at all times during the Term of this Agreement. Customer shall be responsible for obtaining and maintaining any equipment and ancillary services needed to connect to, access or otherwise use the Flock Services (e.g., laptops, internet connection, mobile devices, etc.). Customer shall (at its own expense) provide Flock with reas onable access and use of Customer facilities and Customer personnel in order to enable Flock to perform Services (such obligations of Customer are collectively defined as “Customer Obligations”). 3.2 Customer Representations and Warranties. Customer represents, covenants, and warrants that Customer shall use Flock Services only in compliance with this Agreement and all applicable laws and regulations, including but not limited to any laws relating to the recording or sharing of data, video, photo, or audio content. 4. DATA USE AND LICENSING 4.1 Customer Data. As between Flock and Customer, all right, title and interest in the Customer Data, belong to and are retained solely by Customer. Customer hereby grants 75 to Flock a limited, non-exclusive, royalty-free, irrevocable, worldwide license to use the Customer Data and perform all acts as may be necessary for Flock to provide the Flock Services to Customer. Flock does not own and shall not sell Customer Data. 4.2 Customer Generated Data. Flock may provide Customer with the opportunity to post, upload, display, publish, distribute, transmit, broadcast, or otherwise make available, messages, text, illustrations, files, images, graphics, photos, comments, sounds, music, videos, information, content, ratings, reviews, data, questions, suggestions, or other information or materials produced by Customer (“Customer Generated Data”). Customer shall retain whatever legally cognizable right, title, and interest in Customer Generated Data. Customer understands and acknowledges that Flock has no obligation to monitor or enforce Customer’s intellectual property rights of Customer Generated Data. Customer grants Flock a non-exclusive, irrevocable, worldwide, royalty-free, license to use the Customer Generated Data for the purpos e of providing Flock Services. Flock does not own and shall not sell Customer Generated Data. 4.3 Anonymized Data. Flock shall have the right to collect, analyze, and anonymize Customer Data and Customer Generated Data to the extent such anonymization renders the data non-identifiable to create Anonymized Data to use and perform the Services and related systems and technologies, including the training of machine learning algorithms. Customer hereby grants Flock a non-exclusive, worldwide, perpetual, royalty-free right to use and distribute such Anonymized Data to improve and enhance the Services and for other development, diagnostic and corrective purposes, and other Flock offerings. Parties understand that the aforementioned license is required for continuity of Services. Flock does not own and shall not sell Anonymized Data. 4.4 Data Distribution. Customer may, upon request, choose to integrate Flock Services with a third party to either distribute Integration Data or Customer Data (such third party, “Recipient”). Upon such request, Customer hereby grants to Flock a non-exclusive, non- transferable, royalty-free, perpetual license to access, share, view, record, duplicate, store, save, reproduce, modify, display, and distribute Customer Data and/or Integration Data, as required by the requested distribution. Customer acknowledges that such data may be viewed, recorded, duplicated, stored, saved, reproduced, modified, displayed, distributed, and retained by Recipient for a period longer than Flock’s standard retention period and hereby provides consent to such retention period. Unless expressly listed in the Order Form, the provision, access, or use of any Application Programming Interfaces ("APIs") is not included under this Agreement. Any rights, licenses, or obligations related to APIs shall be governed solely by the terms set forth in the Order Form or a separate agreement between the parties. 76 5. CONFIDENTIALITY; DISCLOSURES 5.1 Confidentiality. To the extent required by any applicable public records requests, each Party (the “Receiving Party”) understands that the other Party (the “Disclosing Party”) has disclosed or may disclose business, technical or financial information relating to the Disclosing Party’s business (hereinafter referred to as “Proprietary Information” of the Disclosing Party). Proprietary Information includes non-public information provided by the Disclosing Party to the Receiving Party regarding features, functionality, and performance of this Agreement. The Receiving Party agrees: (i) to take the same security precautions to protect against disclosure or unauthorized use of such Proprietary Information that the Party takes with its own proprietary information, but in no event less than commercially reasonable precautions, and (ii) not to use (except in performance of the Services or as otherwise permitted herein) or divulge to any third person any such Proprietary Information. The Disclosing Party agrees that the foregoing shall not apply with respect to any information that the Receiving Party can document (a) is or becomes generally available to the public; or (b) was in its possession or known by it prior to receipt from the Disclosing Party; or (c) was rightfully disclosed to it without restriction by a third party; or (d) was independently developed without use of any Proprietary Information of the Disclosing Party. Nothing in this Agreement will prevent the Receiving Party from disclosing the Proprietary Information pursuant to any judicial or governmental order, provided that the Receiving Party gives the Disclosing Party reasonable prior notice of such disclosure to contest such order. At the termination of this Agreement, all Proprietary Information will be returned to the Disclosing Party, destroyed or erased (if recorded on an erasable storage medium), together with any copies thereof, when no longer needed for the purposes above, or upon request from the Disclosing Party, and in any case upon termination of the Agreement. Notwithstanding any termination, all confidentiality obligations of Proprietary Information that is trade secret shall continue in perpetuity or until such information is no lon ger trade secret. 5.2 Usage Restrictions on Flock IP. Flock and its licensors retain all right, title and interest in and to the Flock IP and its components, and Customer acknowledges that it neither owns nor acquires any additional rights in and to the fo regoing not expressly granted by this Agreement. Customer further acknowledges that Flock retains the right to use the foregoing for any purpose in Flock’s sole discretion. Customer and Authorized End Users shall not (i) directly or indirectly, reverse engineer, decompile, disassemble or otherwise attempt to discover or recreate the source code, object code or underlying structure, ideas or algorithms of the Flock Services or any software provided hereunder; modify, translate, or create derivative works based on the Flock Services or any software provided hereunder(ii) attempt to modify, alter, tamper with or repair any of the Flock IP, or attempt to create any derivative product from any of the 77 foregoing; (iii) interfere or attempt to interfere in any manne r with the functionality or proper working of any of the Flock IP; (iv) remove, obscure, or alter any notice of any intellectual property or proprietary right appearing on or contained within the Flock Services or Flock IP; (v) use the Flock Services for anything other than the Permitted Purpose; or (vii) assign, sublicense, sell, resell, lease, rent, or otherwise transfer, convey, pledge as security, or otherwise encumber, Customer’s rights. There are no implied rights. 5.3 Disclosure of Footage. Subject to and during the Retention Period, Flock may access, use, preserve and/or disclose the Footage to law enforcement authorities, government officials, and/or third parties, if legally required to do so or if Flock has a good faith belief that such access, use, preservation or disclosure is reasonably necessary to comply with a legal process, enforce this Agreement, or detect, prevent or otherwise address security, privacy, fraud or technical issues, or emergency situations. 6. PAYMENT OF FEES 6.1 Billing and Payment of Fees. Customer shall pay the fees set forth in the applicable Order Form based on the billing structure and payment terms as indicated in the Order Form. To the extent the Order Form is silent, Customer shall pay all invoices net thirty (30) days from the date of receipt. If Customer believes that Flock has billed Customer incorrectly, Customer must contact Flock no later than thirty (30) days after the closing date on the first invoice in which the error or problem appeared to receive an adjustment or credit. Customer acknowledges and agrees that a failure to contact Flock within this period will serve as a waiver of any claim. If any undisputed fee is more than thirty (30) days overdue, Flock may, without limiting its other rights and remedies, suspend delivery of its service until such undisputed invoice is paid in full. Flock shall provide at least thirty (30) days’ prior written notice to Customer of the payment delinquency before exercising any suspension right. 6.2 Notice of Changes to Fees. In the event of any changes to fees, Flock shall provide Customer with sixty (60) days notice (email sufficient) prior to the end of the Initial Term or Renewal Term (as applicable). Any such changes to fees shall only impact subsequent Renewal Terms. 6.3 Taxes. To the extent Customer is not a tax exempt entity, Customer is responsible for all taxes, levies, or duties, excluding only taxes based on Flock’s net income, imposed by taxing authorities associated with the order. If Flock has the legal obligation to pay or collect taxes, including amount subsequently assessed by a taxing authority, for which Customer is responsible, the appropriate amount shall be invoice to and paid by Customer unless Customer provides Flock a legally sufficient tax exemption certificate and Flock shall not charge Customer any taxes from which it is exempt. If any deduction or withholding is required by law, Customer shall notify Flock and shall pay 78 Flock any additional amounts necessary to ensure that the net amount that Flock receives, after any deduction and withholding, equals the amount Flock would have received if no deduction or withholding had been required. 7. TERM AND TERMINATION 7.1 Term. The initial term of this Agreement shall be for the period of time set forth on the Order Form (the “Term”). Unless otherwise indicated on the Order Form, the Term shall commence upon first installation of Flock Hardware, as applicable. Following the Term, unless otherwise indicated on the Order Form, this Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then -current term. 7.2 Termination. Upon termination or expiration of this Agreement, Flock will remove any applicable Flock Hardware at a commercially reasonable time period. In the event of any material breach of this Agreement, the non -breaching Party may terminate this Agreement prior to the end of the Term by giving thirty (30) days prior written notice to the breaching Party; provided, however, that this Agreement will not terminate if the breaching Party has cured the breach prior to the expiration of such thirty (30) day period (“Cure Period”). Either Party may terminate this Agreement (i) upon the institution by or against the other Party of insolvency, receivership or bankruptcy proceedings, (ii) upon the other Party's making an assignment for the benefit of creditors, or (iii) upon the other Party's dissolution or ceasing to do business. In the event of a material breach by Flock, and Flock is unable to cure within the Cure Period, Flock will refund Customer a pro-rata portion of the pre-paid fees for Services not received due to such termination. 7.3 Survival. The following Sections will survive termination: 1, 3, 5, 6, 7, 8.3, 8.4, 9, 10.1 and 11.6. 8. REMEDY FOR DEFECT; WARRANTY AND DISCLAIMER 8.1 Manufacturer Defect. Upon a malfunction or failure of Flock Hardware or Embedded Software (a “Defect”), Customer must notify Flock’s technical support team. In the event of a Defect, Flock shall make a commercially reasonable attempt to repair or replace the defective Flock Hardware at no additional cost to the Customer. Flock reserves the right, in its sole discretion, to repair or replace such Defect, provided that Flock shall conduct inspection or testing within a commercially reasonable time, but no longer than seven (7) business days after Customer gives notice t o Flock. 8.2 Replacements. In the event that Flock Hardware is lost, stolen, or damaged, Customer may request a replacement of Flock Hardware at a fee according to the reinstall fee schedule (https://www.flocksafety.com/reinstall-fee-schedule). In the event that Customer chooses not to replace lost, damaged, or stolen Flock Hardware, 79 Customer understands and agrees that Flock is not liable for any resulting impact to Flock Service, nor shall Customer receive a refund for the lost, damaged, or stolen Flock Hardware. 8.3 Warranty. Flock shall use reasonable efforts consistent with prevailing industry standards to maintain the Services in a manner which minimizes errors and interruptions in the Services and shall perform the Installation Services in a professio nal and workmanlike manner. Services may be temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by Flock or by third - party providers, or because of other causes beyond Flock’s reasonable control, but Flock shall use reasonable efforts to provide advance notice in writing or by e -mail of any scheduled service disruption. 8.4 Disclaimer. THE REMEDY DESCRIBED IN SECTION 8.1 ABOVE IS CUSTOMER’S SOLE REMEDY, AND FLOCK’S SOLE LIABILITY, WITH RESPECT TO DEFECTS. FLOCK IS NOT LIABLE FOR ANY DAMAGES OR ISSUES ARISING FROM THIRD-PARTY DISTRIBUTIONS REQUESTED BY CUSTOMER. AFOREMENTIONED DISTRIBUTION IS AT CUSTOMER’S OWN RISK. FLOCK DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES IT MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SERVICES. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, THE SERVICES ARE PROVIDED “AS IS” AND FLOCK DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THIS DISCLAIMER ONLY APPLIES TO THE EXTENT ALLOWED BY THE GOVERNING LAW OF THE STATE MENTIONED IN SECTION 11.6. 8.5 Insurance. Flock will maintain commercial general liability policies to be provided as Exhibit B. 8.6 Force Majeure. Parties are not responsible or liable for any delays or failures in performance from any cause beyond their control, including, but not limited to acts of God, changes to law or regulations, embargoes, war, terrorist acts, pandemics (including the spread of variants), issues of national security, acts or omissions of third- party technology providers, riots, fires, earthquakes, floods, power blackouts, strikes, supply chain shortages of equipment or supplies, financial institution crisis, weather conditions or acts of hackers, internet service providers or any other third party acts or omissions. 9. LIMITATION OF LIABILITY; INDEMNITY 80 9.1 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY, FLOCK, ITS OFFICERS, AFFILIATES, REPRESENTATIVES, CONTRACTORS AND EMPLOYEES SHALL NOT BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCT LIABILITY, OR OTHER THEORY: (A) FOR LOSS OF REVENUE, BUSINESS OR BUSINESS INTERRUPTION; (B) INCOMPLETE, CORRUPT, OR INACCURATE DATA; (C) COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY; (D) FOR ANY INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; (E) FOR ANY MATTER BEYOND FLOCK’S ACTUAL KNOWLEDGE OR REASONABLE CONTROL INCLUDING REPEAT CRIMINAL ACTIVITY OR INABILITY TO CAPTURE FOOTAGE; OR (F) FOR ANY AMOUNTS THAT, TOGETHER WITH AMOUNTS ASSOCIATED WITH ALL OTHER CLAIMS, EXCEED THE FEES PAID AND/OR PAYABLE BY CUSTOMER TO FLOCK FOR THE SERVICES UNDER THIS AGREEMENT IN THE TWELVE (12) MONTHS PRIOR TO THE ACT OR OMISSION THAT GAVE RISE TO THE LIABILITY, IN EACH CASE, WHETHER OR NOT FLOCK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION OF LIABILITY OF SECTION ONLY APPLIES TO THE EXTENT ALLOWED BY THE GOVERNING LAW OF THE STATE REFERENCED IN SECTION 11.6. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE FOREGOING LIMITATIONS OF LIABILITY SHALL NOT APPLY (I) IN THE EVENT OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR (II) INDEMNIFICATION OBLIGATIONS. 9.2 Responsibility. Each Party to this Agreement shall assume the responsibility and liability for the acts and omissions of its own employees, officers, or agents, in connection with the performance of their official duties under this Agreement. Each Party to this Agreement shall be liable for the torts of its own officers, agents, or employees. 9.3 Flock Indemnity. Flock shall indemnify and hold harmless Customer, its agents and employees, from liability of any kind, including claims, costs (including defense) and expenses, on account of: (i) any copyrighted material, patented or unpatented invention, articles, device or appliance manufactured or used in the performance of this Agreement; or (ii) any damage or injury to property or person directly caused by Flock ’s installation of Flock Hardware, except for where such damage or injury was caused solely by the negligence of the Customer or its agents, officers or employees. Flock’s performance of this indemnity obligation shall not exceed the fees paid and/or payable for the services rendered under this Agreement in the preceding twelve (12) months. 10. INSTALLATION SERVICES AND OBLIGATIONS 81 10.1 Ownership of Hardware. Flock Hardware is owned and shall remain the exclusive property of Flock. Title to any Flock Hardware shall not pass to Customer upon execution of this Agreement, except as otherwise specifically set forth in this Agreement. Except as otherwise expressly stated in this Agreement, Customer is not permitted to remove, reposition, re-install, tamper with, alter, adjust or otherwise take possession or control of Flock Hardware. Customer agrees and understands that in the event Customer is found to engage in any of the foregoing restricted actions, all warranties herein shall be null and void, and this Agreement shall be subject to immediate termination for material breach by Customer. Customer shall not perform any acts which would interfere with the retention of title of t he Flock Hardware by Flock. Should Customer default on any payment of the Flock Services, Flock may remove Flock Hardware at Flock’s discretion. Such removal, if made by Flock, shall not be deemed a waiver of Flock’s rights to any damages Flock may sustain as a result of Customer’s default and Flock shall have the right to enforce any other legal remedy or right. 10.2 Deployment Plan. Flock shall advise Customer on the location and positioning of the Flock Hardware for optimal product functionality, as conditions and locations allow. Flock will collaborate with Customer to design the strategic geographic mapping of the location(s) and implementation of Flock Hardware to create a deployment plan (“Deployment Plan”). In the event that Flock determines that Flock Hardware will not achieve optimal functionality at a designated location, Flock shall have final discretion to veto a specific location and will provide alternative options to Customer. 10.3 Changes to Deployment Plan. After installation of Flock Hardware, any subsequent requested changes to the Deployment Plan, including, but not limited to, relocating, re-positioning, adjusting of the mounting, removing foliage, replacement, changes to heights of poles will incur a fee according to the reinstall fee schedule located at (https://www.flocksafety.com/reinstall-fee-schedule). Customer will receive prior notice and confirm approval of any such fees. 10.4 Customer Installation Obligations. Customer is responsible for any applicable supplementary cost as described in the Customer Implementation Guide. Customer represents and warrants that it has, or shall lawfully obtain, all necessary right title and authority and hereby authorizes Flock to install the Flock Hardware at the designated locations and to make any necessary inspections or maintenance in connection with such installation. 10.5 Flock’s Obligations. Installation of any Flock Hardware shall be installed in a professional manner within a commercially reasonable time from the Effective Date of this Agreement. Upon removal of Flock Hardware, Flock shall restore the location to its original condition, ordinary wear and tear excepted. Flock will continue to monitor the 82 performance of Flock Hardware for the length of the Term. Flock may use a subcontractor or third party to perform certain obligations under this Agreement, provided that Flock’s use of such subcontractor or third party shall not release Flock from any duty or liability to fulfill Flock’s obligations under this Agreement. 11. MISCELLANEOUS 11.1 Compliance with Laws. Parties shall comply with all applicable local, state and federal laws, regulations, policies and ordinances and their associated record retention schedules, including responding to any subpoena request(s). 11.2 Severability. If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect. 11.3 Assignment. This Agreement is not assignable, transferable or sublicensable by either Party, without prior consent. Notwithstanding the foregoing, either Party may assign this Agreement, without the other Party's consent , (i) to any parent, subsidiary, or affiliate entity, or (ii) to any purchaser of all or substantially all of such Party's assets or to any successor by way of merger, consolidation or similar transaction. 11.4 Entire Agreement. This Agreement, together with the Order Form(s), the reinstall fee schedule (https://www.flocksafety.com/reinstall-fee-schedule), and any attached exhibits are the complete and exclusive statement of the mutual understanding of the Parties and supersedes and cancels all previous or contemporaneous negotiations, discussions or agreements, whether written and oral, communications and other understandings relating to the subject matter of this Agreement. All waivers and modifications must be in a writing signed by both Parties, except as otherwise provided herein. None of Customer’s purchase orders, authorizations or similar documents will alter the terms of this Agreement, and any such conflicting terms are expressly rejected. Any mutually agreed upon purchase order is subject to these terms. In the event of any conflict of terms found in this Agreement or any other terms and conditions, the terms of this Agreement shall prevail. Customer agrees that Customer’s purchase is neither contingent upon the delivery of any future functionality or features nor dependent upon any oral or written comments made by Flock with respect to future functionality or feature. 11.5 Relationship. No agency, partnership, joint venture, or employment is created as a result of this Agreement and Parties do not have any authority of any kind to bind each other in any respect whatsoever. Flock shall at all times be and act as an independent contractor to Customer. 11.6 Governing Law; Venue. This Agreement shall be governed by the laws of the state in which the Customer is located. The Parties hereto agree that venue would be 83 proper in the chosen courts of the State of which the Customer is located. The Parties agree that the United Nations Convention for the International Sale of Goods is excluded in its entirety from this Agreement. 11.7 Special Terms. Flock may offer certain special terms which are indicated in the Order Form and will become part of this Agreement, upon Customer’s prior written consent and the mutual execution by authorized representatives (“Special Terms”). To the extent that any terms of this Agreement are inconsistent or conflict with the Special Terms, the Special Terms shall control. 11.8 Publicity. Upon prior written consent, Flock has the right to reference and use Customer’s name and disclose the nature of the Services in business and development and marketing efforts. Nothing contained in this Agreement shall be construed as conferring on any Party, any right to use the other Party’s name as an endorsement of product/service. 11.9 Feedback. If Customer or Authorized End User provides any suggestions, ideas, enhancement requests, feedback, recommendations or other information relating to the subject matter hereunder, Customer or Authorized End User hereby assigns to Flock all right, title and interest (including intellectual property rights) with respect to or resulting from any of the foregoing. 11.10 Export. Customer may not remove or export from the United States or allow the export or re-export of the Flock IP or anything related thereto, or any direct product thereof in violation of any restrictions, laws or regulations of the United States Department of Commerce, the United States Department of Treasury Office of Foreign Assets Control, or any other United States or foreign Customer or aut hority. As defined in Federal Acquisition Regulation (“FAR”), section 2.101, the Services, the Flock Hardware and Documentation are “commercial items” and according to the Department of Defense Federal Acquisition Regulation (“DFAR”) section 252.2277014(a)(1) and are deemed to be “commercial computer software” and “commercial computer software documentation.” Flock is compliant with FAR Section 889 and does not contract or do business with, use any equipment, system, or service that uses the enumerated bann ed Chinese telecommunication companies, equipment or services as a substantial or essential component of any system, or as critical technology as part of any Flock system. Consistent with DFAR section 227.7202 and FAR section 12.212, any use, modification, reproduction, release, performance, display, or disclosure of such commercial software or commercial software documentation by the U.S. Government will be governed solely by the terms of this Agreement and will be prohibited except to the extent expressly permitted by the terms of this Agreement. 11.11 Headings. The headings are merely for organization and should not be construed as adding meaning to the Agreement or interpreting the associated sections. 84 11.12 Authority. Each of the below signers of this Agreement represent that they understand this Agreement and have the authority to sign on behalf of and bind the Parties they are representing upon the Effective Date. 11.13 Conflict. In the event there is a conflict between this Agreement and any applicable statement of work, or Customer purchase order, this Agreement controls unless explicitly stated otherwise. 11.14 Notices. All notices under this Agreement will be in writing and will be deemed to have been duly given when received, if personally delivered; when receipt is electronically confirmed, if transmitted by email; the day after it is sent, if sent for next day delivery by recognized overnight delivery service; and upon receipt, if sent by certified or registered mail, return receipt requested. All notices will be provided to the email or mailing address listed in the Order Form. 11.15 Non-Appropriation. Notwithstanding any other provision of this Agreement, all obligations of the Customer under this Agreement which require the expenditure of public funds are conditioned on the availability of said funds appropriated for that purpose. To the extent applicable, Customer shall have the right to terminate this Agreement for non appropriation with thirty (30) days written notice without penalty or other cost. These Terms and Conditions are subject to change. 85 1170 Howell Mill Rd. NW · Suite 210, Atlanta, GA 30318 2025 Sole Source Letter for Flock Safety® Public Safety Solutions September 03, 2025 City of The Colony 5151 N Colony Blvd The Colony, TX, 75056 Dear Phillip Foxall, This letter serves to confirm that Flock Group Inc. d/b/a Flock Safety is the sole provider of our proprietary public safety technology solution specifically designed for use by law enforcement, communities, and private entities to increase safety and reduce crime. Flock Safety’s unique system integrates hardware and cloud-based software to enable real-time data processing and secure data sharing capabilities that are unavailable through other providers. As the sole developer and provider of this proprietary technology, Flock Safety retains exclusive rights to manufacture, license, and support the products and software we offer. Our solutions include cutting-edge features such as machine learning analytics, CJIS-compliant data storage, and a centralized system that facilitates collaboration across multiple jurisdictions, supporting a more robust and efficient public safety network. Specifically, Flock Safety provides the ability to access additional cameras from Flock customers, including: Prosper, Mansfield, at no additional cost. No other vendor offers the specific combination of hardware and cloud-based features, CJIS- compliant data handling, or the national network capabilities that Flock Safety provides. For these reasons, Flock Safety is the only source available for these services. Thank you, Garrett Langley CEO, Flock Safety® Flock Safety® Drone-as-First Responder (“DFR”) Flock Safety® has the sole distribution rights to distribute the Flock Safety® Drone-as-First 86 1170 Howell Mill Rd. NW · Suite 210, Atlanta, GA 30318 Responder Platform The Flock Safety® Drone-as-First Responder Platform is the only Law Enforcement Grade drone-as-a-first response and docking devices to offer the following combination of proprietary features: To the best of our knowledge, Flock Safety is currently the sole source of the suite of products and services listed below, and no other company or firm sources and sells or licenses such a comprehensive, integrated suite of products and services at price level quoted as Flock universal sales price (USP). Flock Aerodome DFR 2.0 DFR Drone Hardware ● DJI M350 RTK + RC Plus ● DJI H30T payload ● 16 TB65 Batteries and BS65 Charging Case on an annual basis ● DJI Dock 3 + M4TD integration with Flock ALPR and Flock911 ● DJI Dock 3 + M4TD increased flight speeds to 47 mph ● Proprietary RC box and omnidirectional antenna array ● In year 2 of the contract, Flock will swap out the old hardware for the newest version of each product on the market with no change in price. Atlas 350 Drone Dock ● Exclusively distributed by Flock for the public safety market ● Automated, robotic, battery-swapping drone nest for heavy payload UAS ● Not reliant on contact charging ● Houses 8 batteries for more than 2,000 cycles ● Exclusive integration of the DJI M350 and H30T ● Exclusively provided law enforcement features and upgrades ● Landing platform level with the roof 17 cm of radial landing error recovery. ● Proprietary precision landing algorithms. ● Integrated HVAC to maintain system health. ● Integrated interior cameras for diagnostics and virtual pre-flight checklist ● Fully remote operations through the Flock Flight Operations Module Flock Aerodome 3D Digital Radar Station ● Multi-beamforming surveillance radar with long-range capabilities and all-weather situational awareness. ● 360 degree 3D detection, tracking, and classification of manned aircraft and sUAS. 87 1170 Howell Mill Rd. NW · Suite 210, Atlanta, GA 30318 ● Detects Phantom-sized drones at 2.25-2.5 km ranges, Cessna-sized aircraft at 7 km range, and humans at 3 km range ● Layered security approach with target classification, detection and data updates for accuracy and reliability ● Exclusively integrated into the Flock Air Traffic Awareness Module(Aeromap) ● Exclusively provided by Flock for the public safety market Flock Software Flight Operations Module • Exclusively provided augmented reality overlays • 1080p video feed with proprietary video codec, requiring only 3mbps for streaming • One-time streaming links immediately available to be sent via email and SMS through the platform • Images taken and immediately available to be sent via email and SMS through the platform, mid-flight • Detailed telemetry and system health data • Dock and drone management from a single interface • Multiple drone station and drone control support via picture-in-picture • Command and control • CAD, ALPR, Flock911 and audio detection integration, allowing for tracking of calls-for- service directly in the platform • Laser-range finder support, allowing for real-time identification at camera targets • Camera and payload management • Address based automated waypoint flight control • Current weather data • Detailed connectivity data • Mouse and keyboard control • Gamepad control • iOS app for live video streaming • Drone summoning capability to allow for one drone to follow or meet another drone for battery swapping Flock Aerodome Integrations • Flock911 - This allows for a live transcript of a 911 call to populate directly in the flight platform, notifying the pilot of a calla nd allowing them to deploy to it potentially minutes before it’s ever dispatched. • Flock OS / Fusus - This allows the drone telemetry and video feed to be ingested by popular RTIC software platforms. • Flock Nova - This combines Flock’s powerful Nova platform with the flight operations module so pilots can get critical information about involved parties, potential residents nearby, and other information that provides the ultimate situational awareness tool. • Flock ALPR Response - the flight operations ingests Flock LPR hits into the system, so the pilot can click one button and deploy directly to the last location while also receiving 88 1170 Howell Mill Rd. NW · Suite 210, Atlanta, GA 30318 vehicle information, a photo of the vehicle, and last known Flock hits. • Flock Audio Response - similar to ALPR response, when Flock Audio triggers an alert, directly in our platform, we can click one button, dispatch the drone, and see in real- time a radius signifying where the audio may have originated from. • Flock Inflight LPR - the camera on our aircraft acts as an ALPR camera. From hundreds to over a thousand feet away, we can read a license plate and run it through the Flock ALPR system. • Evidence.com - we can upload data directly into Evidence.com • CAD Integrations - we can integrate with a variety of CAD vendors and populate calls for service in our flight operations software. Flock Aerodome Air Traffic Awareness Module (Aeromap) • 360 degree visibility of local airspace and movement of manned aircraft and sUAS. • Integration with Flight Operations Module for notifications of incursions. • Direct communication with drones to allow for emergency collision mitigation • ADS-B in and live telemetry data from multiple sources. • Integrated 3D radar, RF, and Remote ID data in a single common operating picture. • Call for service information on screen • Multi-station and multi-drone support Flock Aerodome Spectator Module • 1080p video feed with proprietary video codec, requiring only 3mbps for streaming • Optimized for streaming live mission video to internal and external stakeholders • Monitor multiple flight missions at once using split screen functionality • Seamless link sharing via text message or email directly in the Flock Aerodome system • Live CFS updates and visibility • Basic flight and telemetry data • CAD integration to show which call-for-service the drone is responding to Flock Aerodome Flight Log Module • Automated flight logging and mission reports. • Native 1440p video uploaded for each flight from the drone without manual uploading required • Effortlessly export mission reports in PDF format for evidence management. • Download cloud based and onboard imagery and video. • CFS data auto populated via CAD integration • Configurable DFR mission success metrics. • Configurable mission reports based on agency needs and data retention policies. • Drone path and location at timestamp, visualized with video • Filtering and searching functionality Flock Aerodome Mission Reporting and Community Engagement Module 89 1170 Howell Mill Rd. NW · Suite 210, Atlanta, GA 30318 • Automatically display DFR success metrics including average response times, number of missions conducted, number of suspects apprehended with the support of DFR, reduction in response times, calls cleared without the use of patrol resources, and a breakdown of the types of calls that DFR has supported. • Visualization of the flight path of the drone combined with the call for service the drone was responding to. Designed to seamlessly integrate and display on the agency's website. Flock Aerodome Services: • Equipment infrastructure • Acquisition of appropriate FAA regulatory waivers • Department policy and SOP consulting • Community engagement consulting • Comprehensive training • Hardware warranties Partnerships: • Flock Safety® is the only LPR provider to officially partner with Prepared911 to distribute 911 call audio and transcripts to law enforcement agencies • Through FlockOS®, Flock Safety® is the only LPR provider to officially partner with FirstTwo to enable clicking anywhere on a display map to display the relevant information from FirstTwo • Access to additional cameras purchased by Flock’s HOA and private business partners, means an ever-increasing amount of cameras and data at no additional cost • Flock Safety® is the only LPR provider to officially partner with Wanco, Inc. to offer the Flock Safety’s Mobile Security Trailer, an infrastructure-free solution designed to provide a movable public safety presence. • The FIock Safety Mobile Security Trailer combines: o Two (2) PTZ video cameras that are equipped with remote controls for live and recorded video o One (1) multi-sensor 360 panoramic camera that offers situational awareness with live views from four different angles for comprehensive coverage o Flashing Blue Lights that provides a clear signal that law enforcement is monitoring the area, acting as a visual crime deterrent o Integration with the FlockOS platform, centralizing live monitoring, evidence capture, and case management across all locations o Optional feature: Can include LPR functionality, which is compatible with the FlockOS platform o 24/7 real-time alerts, notifying law enforcement of incidents and allowing for customizable monitoring during off-hours using advanced AI for human and vehicle detection flocksafety.com (866) 901-1781 | 90 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 WITH FLOCK GROUP INC FOR THE PURCHASE OF A DRONE AS A FIRST RESPONDER SYSTEM; AND PROVIDING AN EFFECTIVE DATE NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: WHEREAS, the City of The Colony, Texas, has determined that it is in the best interest of the City to execute a two-year contract with Flock Group Inc. for the purchase of a drone as a first responder system in the amount of $450,000.00 (Year 1 -$150,000.00; Year 2 - $300,000.00); and WHEREAS, funding for this purchase will come from the Motor Vehicle Crime Prevention Authority (MVCPA) Grant through the Texas Department of Motor Vehicles with a 20% local match coming from General Funds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: Section 1. The City Council of the City of The Colony authorizes the execution of a contract with Flock Group Inc. for the purchase of a drone as a first responder system in the amount of $450,000.00. Section 2. The City Manager is hereby authorized to execute the contract for said purchase. Section 3. That 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 16th DAY OF SEPTEMBER 2025. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary 91 APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 92 Agenda Item No: 5.3 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: Police Item Type: Resolution Agenda Section: regular agenda items Suggested Action: Discuss and consider approving a resolution authorizing the City Manager to execute a lease purchase agreement with Municipal Asset Management Inc. to purchase a Lenco armored security vehicle in an amount not to exceed $421,234.45. (Foxall) Background: The SWAT Team is tasked with responding to high risk situations as well as executing high risk warrants. Currently, we do not have any type of armored vehicle to utilize as cover and concealment during these operations. This resolution would allow the city to enter into a seven year, lease purchase program to purchase a Lenco G2 Pro armored vehicle. The total cost of the vehicle would not exceed $343,211.00. The total cost of the seven year lease purchase will not exceed $421,234.45 with annual payments not to exceed $60,176.35. Those annual payments have been included in the FY 25-26 budget which was approved on September 2, 2025. Attachments: Lease Application Lenco Quote Lease Proposal Lenco Sole Source Letter Res._2025-_xxx_Municipal_Asset_Management_Inc..docx 93 THIS DOCUMENT IS NOT A COMMITMENT OR AN OFFER TO PROVIDE FINANCING City of The Colony Legal Name of Lessee (Applicant) Tax ID # Web address (if, applicable) Address City State Zip Name Title Phone Name Title Phone Email Fax Bank Qualified Non-Bank Qualified Are the Applicant's obligations bank qualified (i.e., expected to issue less than $10 Million in tax-exempt financing this calendar year)? Moody's Investors Service: Aa2 Standard & Poor's: Fitch: Please list the Applicant's current underlying bond rating from the rating agencies listed above (if applicable) Discuss the Applicant's economic trends (stable, positive, negative) and reasons for any variation Yes No Has the Applicant ever defaulted or non-appropriated on an obligation? If Yes, Please explain Please provide the following demographic information (please attach any applicable demographic statistics) Approx square mile Population Increasing or Decreasing Population? Cities, Towns and Counties If Decreasing, Please explain Person(s) to Contact for Clarification Regarding Project Obligations / Economics Demographic Information 94 THIS DOCUMENT IS NOT A COMMITMENT OR AN OFFER TO PROVIDE FINANCING One (1) new Lenco Bearcat March 2027 Purchase Description (please be specific and attach any applicable equipment lists or invoices available) Est. Equipment Delivery Date Are any of the Lease Proceeds for reimbursement of prior purchases? If yes, has a Reimbursement Resolution been approved by the Governing Body? Yes No Is the Equipment replacing existing equipment? If Yes, Please state how long you have currently used the Equipment and the reason you are replacing the Equipment What will the Applicant do with the old equipment that is being replaced? If No, Please state the reason additional equipment is needed What will the Applicant do with the old equipment that is being replaced? Please describe in detail the following (please be specific) What will the Equipment be used for? Describe the essential nature of the equipment financed List the specific department that will be the primary user of the Equipment Yes No Will the lease payments be made from Applicant's General Fund? If No, From which Special Fund will the lease payments be made? Yes No Will any federal grant or loan monies be used? If so, please describe Yes No Has the first payment been appropriated? $343,211.00 $0 $343,211.00 Total Cost of Equipment Advance payment Amount to Finance Seven (7) Annual Semi-Annual Quarterly Monthly Term (in years) Frequency (choose one): Advance Arrears March 2027 Remittance (choose one): Equipment Delivery Date Insurance Company Name or indicate Self Insured Amount of Liability Insurance Amount of Property Damage Insurance The undersigned hereby certifies that all the information in the above Application for Equipment Lease and Essential Use Form is true, co mplete and correct. Applicable Signature Title Date Lease Payments Terms and Conditions 95 Quotation 110478 10 Betnr Industrial Drive - Pittsfield, MA 01201 PH: 413-443-7359 - FAX: 413-445-7865 Quotation Date: Lenco Tax ID#: 08/07/25 04-2719777 CYLTXCustomer Code: Page #: 21 of The Colony Police Department 5151 N. Colony Colony, TX 75056 USA Bill To The Colony Police Department 5151 N. Colony Colony, TX 75056 USA Ship To Net 30 Days FOB: Destination Payment Terms Lenco Contact Daniel Besemer Shipping Terms Estimated Completion Ship Via Common Carrier Inspection & Acceptance At Lenco's Facility, Pittsfield, MA18 Months (+ or -) ARO Unit Price TotalQtyItem:Product # Vehicle configuration 4464 $264,310.00Lenco BearCat BC55003-BASE 1 $264,310.00 Options: LED Red and Blue LED_RED_BLUE 1 Exterior Paint Color: Lusterless Black LUSTERLESS_BLACK 1 $84,701.00G2 Pro Package G2PRO 1 $84,701.00 Package Discount DISC 1 -$15,000.00 -$15,000.00 Diesel Engine, 6.7L Turbo BCDLEN 1 4-Door Configuration BC4DR 1 (1) 7" Vertical GunPort Upgrade BCGP7 8 360 Camera System BC360DEG 1 Rear A/C - Heating System: High Capacity Upgrade BCHACUP 1 Hydraulic Front Mounted Receiver with Ram Post and Plate BCHYDRAM 1 Draco Prep Package BCDRACOPREP 1 VSP Style Low Profile & Scene Lighting Pkg BCVSPL 1 Roof Mounted Remote Control Spot Light - LED BCSLLED 2 High Intensity Driving Lights in Front Bumper BCHIDL 1 Fender Intersection Lights BCFIL 1 IR Take Down Light (Bumper Mounted)BCTDL-IR 1 AC-DC Power Inverter w/ Auto Eject BCINV2000 1 Armored Oil Pan Guard BCAOPG 1 Intercom System Inside to Outside BCINT 1 Weapons Mount BCWMT 6 $334,011.00Configuration Subtotal: $334,011.00G2PROLenco BearCat 1 $334,011.00 $9,200.00FREIGHTOUT-VEHICLEFreight Out - SWAT 1 $9,200.00 $343,211.00Net Total 96 Quotation 110478 10 Betnr Industrial Drive - Pittsfield, MA 01201 PH: 413-443-7359 - FAX: 413-445-7865 Quotation Date: Lenco Tax ID#: 08/07/25 04-2719777 CYLTXCustomer Code: Page #: 22 of Notes: Authorized WARNING: Information Subject to Export Control Laws Acceptance of this quotation or entering into a purchase agreement with Lenco, the purchaser agrees to Lenco's full Terms and Conditions of Sale, available upon request. This quote will be valid for 60 days. Please sign and return Daniel Besemer Authorized Thank you The written approval of the Directorate of US Defense Trade Controls and Lenco Industries, Inc. must be obtained before reselling, transferring, transshipping or disposing of a defense article to any end user, end use or destination other than as stated on this Lenco quote or the shipper's export declaration in cases where an exemption is claimed under this subchapter ITAR 123.9(A). ACCEPTANCE OF PROPOSAL Signature:_______________________________Signature:_______________________________ 97 25288 FOOTHLLS DRIVE NORTH • GOLDEN COLORADO • 80401 PHONE: 303-273-9496 • EMAIL: JTIEMEYER@MAMGT.COM M UNICIPAL A SSET M ANAGEMENT, I NC. “LEASING TO STATE AND LOCAL GOVERNMENTS” LEASE PROPOSAL Paul Collings Jamie Tiemeyer Michael Terry 303-273-9494 303-273-9496 541-474-9312 DATE: September 5, 2025 LESSEE: City of The Colony (Police Department), TX REQUESTED BY: Jason Stevens Lieutenant Jason Stevens #396 The Colony Police Department 5151 North Colony Blvd The Colony, TX 75056 Cell: 469-428-3175 (Call/Text); jstevens@thecolonytx.gov STRUCTURE: Tax Exempt Lease Purchase Agreement, firm term obligation in accordance with the provisions of Section 271.005 of the Texas Local Government Code. Financing Proposal assumes Lessee and Lease transaction will be Bank Qualified. Lessee will be responsible for Insurance, maintenance and all taxes. Lessee will hold title to the personal property equipment subject to a security interest by the Lessor. EQUIPMENT: One (1) new Lenco Bearcat and related equipment EQUIPMENT COST: $343,211.00 ESCROW FEES: $375, should an escrow account be required VALIDITY OPINION: At Lessees expense, a Validity Opinion will be required from Lessees Counsel FINANCE OPTIONS: Option 1: Seven (7) years, payments to be due annually in arrears Payment Amount: $60,176.35 Rate Factor: .17533 Interest Rate: 5.40% **Multiply the rate factor by the amount financed to calculate the Lease Payment. AMORTIZATION SCHEDULE Pmt Payment Principal Total Interest Principal Purchase # Date Balance Payment Portion Portion Price * 343,211.00 1 20-Sep-26 301,568.04 60,176.35 18,533.39 41,642.96 310,615.09 2 20-Sep-27 257,676.36 60,176.35 16,284.67 43,891.68 265,406.65 3 20-Sep-28 211,414.53 60,176.35 13,914.52 46,261.83 217,756.97 4 20-Sep-29 162,654.56 60,176.35 11,416.38 48,759.97 167,534.20 5 20-Sep-30 111,261.56 60,176.35 8,783.35 51,393.00 114,599.41 6 20-Sep-31 57,093.33 60,176.35 6,008.12 54,168.23 58,806.13 7 20-Sep-32 0.00 60,176.35 3,083.02 57,093.33 0.00 TOTALS 421,234.45 78,023.45 343,211.00 * Purchase Price after the current lease payment has been made. This is a proposal only and is not a commitment to finance. This proposal is subject to credit review and approval and proper execution of mutually acceptable documentation. This transaction must be credit approved, lease documents properly executed and returned to Lessor and the transaction funded by Lessor by September 20, 2025, or Lessor reserves the right to adjust and determine a new interest rate, rate factor and payment amount. 98 Designer and Manufacturer of Tactical Armored Security Vehicles 10 Betnr Industrial Drive · Pittsfield, MA 01201 · Tel (413) 443-7359 · Fax (413) 445-7865 www.LencoArmor.com · e-mail: Info@LencoArmor.com SOLE SOURCE LETTER Lenco Industries, Inc. 10 Betnr Industrial Drive Pittsfield, MA, 01201 E-mail: Contracting@LencoArmor.com Phone: 413-443-7359 DATE: July 10, 2025 RE: Sole Source Letter for the Lenco BearCat To Whom It May Concern: This letter confirms that Lenco Industries Inc. (d/b/a Lenco Armored Vehicles), as designer and manufacturer, is the Sole Source provider of the following products in the United States and internationally: •Lenco BEAR® •Lenco BearCat® •Lenco BombCat® •Lenco MedCat™ •Lenco FireCat™ Additionally, these Lenco products, their specifications, manufacturing techniques and marketing materials are proprietary and are protected by copyrights, trademarks, service marks, patents, nondisclosure agreements, noncompete agreements and exclusive supply agreements; in whole or in part. There are no other items or products available that offer identical functionality or performance characteristics, and Lenco determines the prices for the above-named products to be fair and reasonable because of pre-competed federal and state supply schedules controlled by exclusive distribution. Federal Acquisition Regulation (FAR) Part 6.302-1 – “Only one responsible source and no other supplies or services will satisfy agency requirements” is the statutory authority permitting this Sole Source government procurement. Further, the Code of Federal Regulations (CFR) Title 2, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards establishes government-wide requirements for federal grants and cooperative agreements. Under the Uniform Guidance, a non-Federal entity that receives a federal award must “provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States.” See 2 C.F.R. § 200.322. If the non-Federal entity fails to do so, the federal awarding agency or pass-through entity may sanction a non-compliant recipient of funds. In summary, Lenco Armored Vehicles, based in the United States, is the only manufacturer or authorized dealer of the Lenco BearCat, its variants or its equivalent. 99 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 LEASE TO OWN CONTRACT WITH MUNICIPAL ASSET MANAGEMENT INC FOR A LENCO G2 PRO ARMORED VEHICLE ; AND PROVIDING AN EFFECTIVE DATE NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: WHEREAS, the City of The Colony, Texas, has determined that it is in the best interest of the City to execute a seven-year lease to own contract with Municipal Asset Management Inc. for the purchase of a Lenco G2 Pro armored vehicle in an amount not to exceed $421,234.45 (Per year: $60,176.35). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: Section 1. The City Council of the City of The Colony authorizes the execution of a contract with Municipal Asset Management Inc. for the purchase of a Lenco G2 Pro armored vehicle in an amount not to exceed $421,234.45. Section 2. The City Manager is hereby authorized to execute the contract for said purchase. Section 3. That this resolution shall take effect immediately from and after its passage. Section 4. Pursuant to Section 147(f)/Section 265(b) of the Internal Revenue Code of 1986, as amended (the “Code”), The City of The Colony hereby specifically designates the Agreement as a “qualified tax-exempt obligation” for purposes of Section 147(f)/Section 265(b)(3) of the Code. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 16th DAY OF SEPTEMBER 2025. Richard Boyer, Mayor City of The Colony, Texas 100 ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 101 Agenda Item No: 5.4 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Discussion Agenda Section: regular agenda items Suggested Action: Conduct a public hearing, discuss and consider approving an ordinance levying of the Public Improvement District Annual Assessment on properties located within the City of The Colony Public Improvement District No. 1 for the Fiscal Year 2025-26. (Maurina) Background: Attachments: Ord. 2025-xxxx Final PID SAP Assessment (2025-2026).docx The Colony Grandscape PID - SAP - 2025 26 Annual Service and Assessment Plan (1053550.5) Final.docx 102 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2025 - ________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, RELATED TO THE CITY OF THE COLONY PUBLIC IMPROVEMENT DISTRICT NO. 1; APPROVING A SERVICE AND ASSESSMENT PLAN FOR THE DISTRICT FOR FISCAL YEAR 2025-2026 ANNUAL FACILITY PUBLIC IMPROVEMENTS, WATERFRONT PUBLIC IMPROVEMENTS, AND RELATED DEVELOPMENT PUBLIC IMPROVEMENTS FOR DEVELOPED PROPERTIES WITHIN THE DISTRICT CONSISTING OF THE FACILITY PROPERTY, WATERFRONT PROPERTY AND RELATED DEVELOPMENT PROPERTY; APPROVING AN ASSESSMENT ROLL FOR THE FACILITY PROPERTY, WATERFRONT PROPERTY, AND RELATED DEVELOPMENT PROPERTY WITHIN THE DISTRICT; LEVYING A SPECIAL ASSESSMENT AGAINST THE FACILITY PROPERTY, WATERFRONT PROPERTY, AND RELATED DEVELOPMENT PROPERTY WITHIN THE DISTRICT TO PAY FOR FISCAL YEAR 2025-2026 ANNUAL FACILITY PUBLIC IMPROVEMENTS, WATERFRONT PUBLIC IMPROVEMENTS, AND RELATED DEVELOPMENT PUBLIC IMPROVEMENTS; PROVIDING FOR THE COLLECTION OF THE SPECIAL ASSESSMENTS; CREATING A CHARGE AND LIEN AGAINST SAID PROPERTIES; RATIFYING AND CONFIRMING PRIOR ACTIONS RELATED TO THE DISTRICT; PROVIDING PENALTIES FOR DELINQUENT SPECIAL ASSESSMENTS; CREATING A DISTRICT PROJECT FUND; PROVIDING FINDINGS AND DETERMINATIONS BY AND RELATED TO THE DISTRICT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Chapter 372 of the Texas Local Government Code (hereinafter referred to as the “Act”) authorize the City of The Colony, Texas, to create a public improvement district within the City of The Colony, Texas; and WHEREAS, on Monday, September 17, 2012, there was presented to the City of The Colony, Texas (hereinafter referred to as the “City”) a petition (hereinafter referred to as the “Petition”) seeking the authorization to establish a public improvement district (hereinafter referred to as the “District”) within the City pursuant to Chapter 372 of the Texas Local Government Code, as amended, for an approximately 439.12 acre tract or tracts of land, a legal description is attached hereto as Exhibit A; and WHEREAS, on Tuesday, September 18, 2012, the City Council for the City approved Resolution No. 2012-067, ordering a public hearing for October 8, 2012 (hereinafter referred to as the “Creation Public Hearing”), to consider a resolution creating the District; and WHEREAS, on or before September 22, 2012, the City Secretary mailed and caused to be published notice of the Creation Public Hearing as required by the Act, which date was before the 15th day before the date of the Creation Public Hearing; and 103 WHEREAS, after mailing, publishing, and otherwise providing all notices of the Creation Public Hearing as required by the Act and state law, the City Council conducted the Creation Public Hearing on October 8, 2012, at the time and place and for the purposes set forth in the notices; and WHEREAS, Owner appeared at the Creation Public Hearing by its representative and affirmed Owner’s request to create the District; and WHEREAS, no one appeared at the Creation Public Hearing in opposition to the creation of the District; and WHEREAS, after all persons having an interest in the District were given an opportunity to be heard in support of or in opposition to the creation of the District, the City Council closed the Creation Public Hearing on October 8, 2012, and by a majority vote of all members of the City Council adopted and approved Resolution No. 2012-073 creating the District; and WHEREAS, on October 9, 2012, the City Secretary caused notice of Resolution No. 2012-073 to be published as required by the Act; whereupon the creation of the District took effect as provided by the Act; and WHEREAS, on Tuesday, August 19, 2025, the City Council approved the City of The Colony Public Improvement District No. 1, Preliminary 2025-2026 Annual Service and Assessment Plan, dated September 16, 2025, for properties within the District, including (i) a determination of the cost of the public improvements and supplemental services being provided for the special benefit of the District; (ii) a service plan; (iii) an assessment plan; and (iv) an assessment roll (collectively, the “Preliminary 2025-2026 Annual SAP”); and WHEREAS, the City Council held a public hearing for Tuesday, September 16, 2025, to consider an ordinance levying assessments against the Property to pay for the public improvements identified in the Preliminary 2025-2026 Annual SAP that will confer a special benefit on the Property and authorizes and directs the City Secretary to publish and mail notices of said public hearing in accordance with the Act; and WHEREAS, the City Council hereby approves the City of The Colony Public Improvement District No. 1, Final 2025-2026 Annual Service and Assessment Plan for properties within the District, including (i) a determination of the cost of the public improvements and supplemental services being provided for the special benefit of the District; (ii) a service plan; (iii) an assessment plan; and (iv) an assessment roll (collectively, the “Final 2025-2026 Annual SAP”), which is attached hereto as Exhibit C. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. The recitals set forth in the WHEREAS clauses of this Ordinance are true and correct, are part of this Ordinance for all purposes, and constitute findings and determinations of the City Council acting in its discretionary, legislative capacity. SECTION 2. The City Council has investigated and determined and hereby ratifies and 104 confirms that: 2.1 The matters set forth in the Petition are true and correct; 2.2 The Petition complies with all requirements of the Act and is sufficient under the Act for all purposes including, but not limited to, the creation of the District; 2.3 The Facility Public Improvements, Waterfront Public Improvements, and Related Development Public Improvements more particularly described in the Service and Assessment Plan, attached hereto as Exhibit B are authorized by the Act, promote the interests of the City, and confer a special benefit on the Facility Property, Waterfront Property, and the Related Development Property; 2.4 The form, content, timing, and method for providing notice of the Creation Public Hearing, and all matters related to the conduct of the Creation Public Hearing and the adoption of Resolution No. 2012-073 creating the District were in accordance with the Act, state law, and the City Charter and ordinances of the City; 2.5 Prior to conducting the Assessment Hearing and the adoption of this Ordinance, the City Council determined the total cost of the Facility Public Improvements, Waterfront Public Improvements, and Related Development Public Improvements based on Official Reports and filed with the City Secretary and made available for public inspection the Preliminary 2025-2026 Annual SAP; 2.6 The form, content, timing, and method for providing the notice of the Assessment Hearing, and all matters related to the conduct of the Assessment Hearing and the adoption of this Ordinance, were in accordance with the Act, state law, and the City Charter and ordinances of the City; 2.7 The City Council has provided opportunity for the owners of property liable for the special assessments, and for the public at large, to appear, in person or by their representatives, and present objections to the creation of the District and the levy of the special assessments; however, no objections to the creation of the District or to the levy of the special assessments against the Facility Property, Waterfront Property, and the Related Development Property were presented; and 2.8 All actions taken by the City Council in connection with the District have been taken and performed in accordance with the Act, state law, and the City Charter and ordinances of the City and in a regular, proper, and valid manner. SECTION 3. The City of the Colony Public Improvement District No. 1 2025-2026 Annual Service and Assessment Plan, a copy of which is attached hereto as Exhibit C, and is incorporated herein for all purposes (as updated, from time to time, the “Service and Assessment Plan”) is hereby approved by the City Council as the “service plan,” “assessment plan,” and “assessment roll” as the 2025-2026 Annual Service and Assessment Plan for the Facility Property, Waterfront Property, and the Related Development Property as required by the Act, and is incorporated as part of this Ordinance for all purposes. The Service and Assessment Plan shall be updated by the City Council no less frequently than annually as required by the Act and more 105 frequently as required by the Service and Assessment Plan. A copy of the Service and Assessment Plan, as updated from time to time, is available from the City Secretary. SECTION 4. Unless otherwise defined in this Ordinance, capitalized terms used in this Ordinance shall have the meanings given to them in the Service and Assessment Plan. SECTION 5. Based on the Service and Assessment Plan, attached hereto as Exhibit C, the City Council hereby levies a Special Assessment (as a “special assessment” under the Act) upon the Facility Property, Waterfront Property, and the Related Development Property in the amounts set forth in Exhibit B of this Ordinance, which is attached hereto and incorporated herein for all purposes. SECTION 6. Each Special Assessment against the Facility Property, Waterfront Propert y, and the Related Development Property, together with interest, the expenses of collection, and reasonable attorney’s fees, if incurred, constitutes a lien against the Facility Property, Waterfront Property, and the Related Development Property (the priority of which is established by the Act) and is the personal liability of and charge against the owner of the Facility Property, Waterfront Property, and the Related Development Property regardless of whether the owner is named in this Ordinance. SECTION 7. The assessment lien against the Facility Property, Waterfront Property, and the Related Development Property created by the Special Assessment is effective from the date of this Ordinance and “runs with the land.” The assessment lien against the Facility Property, Waterfront Property, and the Related Development Property may be enforced by the City, including foreclosure, in the same manner that an ad valorem tax lien is foreclosed. Any purchaser of the Facility Property, Waterfront Property, and the Related Development Property in foreclosure takes subject to the lien against the Facility Property, Waterfront Property, and the Related Development Property created by the Special Assessment. SECTION 8. The Special Assessments against the Facility Property, Waterfront Property, and the Related Development Property as set forth in Exhibit B of this Ordinance are due and payable not later than January 31, 2026, and will be delinquent on February 1, 2026. Delinquent Special Assessments shall incur interest, penalties, and attorney's fees in the same manner as delinquent ad valorem taxes. SECTION 9. The City (or any other person, entity, or governmental agency permitted by law) shall bill, collect, and immediately deposit Assessment Revenue into a segregated operating account, the PID Operating Account for Annual Assessments, as provided by the Service and Assessment Plan. The PID Operating Account for Annual Assessments (and the sub-accounts thereof) shall be created by the City and shall be segregated from all other funds of the City. The City shall only use the funds in the PID Operating Account for Annual Assessments for the purposes determined by the City Council at the time the Special Assessments are levied. SECTION 10. Based on materials and information prepared by City staff and qualified professional consultants, on testimony provided throughout the process of creating the District and levying the Special Assessments including, but not limited to, testimony offered at the Creation Public Hearing and Assessment Hearing, and on other information, materials, evidence, and testimony available to or provided to the City Council for its consideration, the City Council, acting 106 in its discretionary, legislative capacity, hereby finds and determines: 10.1 That the Facility Property, Waterfront Property, and the Related Development Property are specially benefited by the Facility Public Improvements, Waterfront Public Improvements and Related Development Improvements, as applicable, in an amount that exceeds the Special Assessments levied against the Facility Property, Waterfront Property, and the Related Development Property; 10.2 That the Special Assessments against the Facility Property, Waterfront Property, and the Related Development Property: (i) is just and equitable; (ii) produces substantial equality, considering the benefits received and the burdens imposed; (iii) results in imposing equal shares of the cost of the Public Improvements on property within the District that is similarly benefitted; and (iv) is authorized by and has been levied in accordance with the Act, state law, City Charter, and the ordinances of the City; 10.3 That all prerequisites to the fixing of the Special Assessment lien against the Facility Property, Waterfront Property, and the Related Development Property, and to the personal liability of the real and true owner of the Facility Property, Waterfront Property, and the Related Development Property, whether named in this Ordinance or not, have been in all things regularly and duly performed in compliance with the Act and all other applicable laws, ordinances, regulations, procedures, and policies; and 10.4 That the Special Assessments levied against the Facility Property, Waterfront Property, and the Related Development Property are in amounts required to pay the cost of the Public Improvements. SECTION 11. The City Council may make supplemental assessments to correct omissions or mistakes related to the cost of the Public Improvements and reassessments if the City Council determines that any special assessment is excessive. The City Council may also adjust Special Assessments downward following each annual update to the Service and Assessment Plan. SECTION 12. This Ordinance incorporates, by reference, all provisions of the Act. In the event of any conflict between this Ordinance and the Act, the Act shall control. SECTION 13. If any provision of this Ordinance, or the application of any provision to any person or set of circumstances, is held by any court to be invalid, the remaining provisions shall be unaffected. All provisions of this Ordinance are severable for such purpose. SECTION 14. This Ordinance shall take effect effective immediately upon passage and approval by the City Council. 107 PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS THE 16TH DAY OF SEPTEMBER, 2025. APPROVED: Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney ACKNOWLEDGMENT STATE OF TEXAS § § COUNTY OF DENTON § This instrument was acknowledged before me on the 16th day of September, 2025, by Richard Boyer, Mayor of the City of The Colony, Texas, a Texas home-rule municipality, on behalf of said municipality. ____________________________________ Notary Public, State of Texas 108 Exhibit A Legal Description of the Property (439.12 Acres) Being a 439.12 acre tract of land situated in the B.B.B & C.R.R. Survey, Abstract No. 173, B.B.B. & C. Survey, Abstract No. 174, Thomas A. West Survey, Abstract No. 1344, and the M.D.T. Hallmark Survey, Abstract No. 570, Denton County, Texas, and being al l of a tract of land conveyed by deed to 121 Acquisition Company, LLC., as recorded in Instrument No. 2011- 114773, 2011-121444, and 2011-112195, Deed Records, Denton County, Texas, and a portion of Plano Parkway and a portion of Burlington Northern Railroad tract, and being more particularly described as follows: BEGINNING at a found Txdot monument, said point being the northwest corner of said 121 Acquisition Company, LLC tract and being in the south right-of-way line of State Highway 121 (having a variable width R.O.W.); THENCE North 63°32'06" East, along said south right-of-way line, a distance of 130.52 feet to a point for corner; THENCE North 60°22'33" East, continuing along said south right-of-way line, a distance of 80.86 feet to a point for corner; THENCE South 29°13'03" East, continuing along said south right-of-way line, a distance of 50.00 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right-of-way line, a distance of 219.64 feet to a point for corner, said point being in the west right-of-way line of Plano Parkway (100 ft R.O.W.); THENCE North 50°53'35" East, leaving said south right-of-way line, and leaving said west right- of-way line, a distance of 100.00 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 950.00 feet and a central angle of 1°26'54" and a long chord which bears North 38°22'58" West, 24.01 feet, said point being in the east right-of-way line of said Plano Parkway; THENCE along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 24.01 feet to a point for corner, said point being the most southerly point of a corner - clip of the intersection of said east right-of-way line of Plano Parkway and the south right-of-way line of said State highway 121; THENCE North 08°46'31" East, along said corner-clip, a distance of 26.03 feet to a point for corner, said point being in the south right-of-way line of said State highway 121; THENCE North 60°47'38" East, along said south right-of-way line, a distance of 203.71 feet to a point for corner; THENCE North 58°17'36" East, continuing along said south right-of-way line, a distance of 109 252.11 feet to a point for corner; THENCE North 55°47'40" East, continuing along said south right-of-way line, a distance of 105.11 feet to a point for corner; THENCE North 58°17'42" East, continuing along said south right-of-way line, a distance of 248.62 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right-of-way line, a distance of 263.85 feet to a point for corner; THENCE North 76°30'51" East, continuing along said south right-of-way line, a distance of 92.27 feet to a point for corner; THENCE North 65°56'12" East, continuing along said south right-of-way line, a distance of 100.40 feet to a point for corner; THENCE North 64°13'39" East, continuing along said south right-of-way line, a distance of 100.18 feet to a point for corner; THENCE North 60°16'36" East, continuing along said south right-of-way line, a distance of 39.88 feet to a point for corner; THENCE South 74°12'01" East, continuing along said south right-of-way line, a distance of 70.70 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right-of-way line, a distance of 64.12 feet to a point for corner; THENCE North 15°47'17" East, continuing along said south right-of-way line, a distance of 73.27 feet to a point for corner; THENCE North 59°04'32" East, continuing along said south right-of-way line, a distance of 94.25 feet to a point for corner; THENCE North 55°39'04" East, continuing along said south right-of-way line, a distance of 100.40 feet to a point for corner; THENCE North 47°37'54" East, continuing along said south right-of-way line, a distance of 114.18 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right-of-way line, a distance of 3800.00 feet to a point for corner; THENCE North 65°20'10" East, continuing along said south right-of-way line, a distance of 189.41 feet to a point for corner; THENCE North 61°56'23" East, continuing along said south right-of-way line, a distance of 110 100.02 feet to a point for corner; THENCE North 63°39'23" East, continuing along said south right-of-way line, a distance of 100.12 feet to a point for corner; THENCE North 64°47'53" East, continuing along said south right-of-way line, a distance of 100.24 feet to a point for corner; THENCE North 66°30'16" East, continuing along said south right-of-way line, a distance of 201.00 feet to a point for corner; THENCE North 65°56'12" East, continuing along said south right-of-way line, a distance of 100.40 feet to a point for corner; THENCE North 66°30'16" East, continuing along said south right-of-way line, a distance of 100.50 feet to a point for corner; THENCE North 63°05'04" East, continuing along said south right-of-way line, a distance of 100.08 feet to a point for corner; THENCE North 64°13'39" East, continuing along said south right-of-way line, a distance of 100.18 feet to a point for corner; THENCE North 83°05'27" East, continuing along said south right-of-way line, a distance of 69.58 feet to a point for corner; THENCE North 60°39'18" East, continuing along said south right-of-way line, a distance of 33.81 feet to a point for corner, said point being in the west right-of-way line of Burlington Northern Railroad (having a variable width R.O.W.); THENCE North 60°38'52" East, leaving said west right-of-way line, a distance of 107.30 feet to a point for corner, said point being in the east right-of-way line of said Burlington Northern Railroad; THENCE North 60°45'58" East, leaving said east right-of-way line, continuing along said south right-of-way line of State Highway 121, a distance of 254.35 feet to a point for corner; THENCE North 63°19'02" East, continuing along said south right-of-way line, a distance of 585.96 feet to a point for corner; THENCE North 60°52'09" East, continuing along said south right-of-way line, a distance of 369.37 feet to a point for corner, said point being in the west right-of-way line of West Spring Creek Parkway (having a 160 ft R.O.W.); THENCE South 29°24'43" East, leaving said south right-of-way line, and along said west right- of-way line, a distance of 265.52 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 970.00 feet and a central angle of 29°13'42", and a long chord which bears South 14°53'13" East, 489.48 feet; 111 THENCE continuing along said west right-of-way line, and along said non-tangent curve to the right an arc distance of 494.83 feet to a point for corner; THENCE South 00°22'42" East, continuing along said west right-of-way line, a distance of 476.17 feet to a point for corner; THENCE South 00°23'35" East, continuing along said west right-of-way line, a distance of 864.92 feet to a point for corner, said point being in the north line of Kings Ridge Addition, Phase Three, as recorded in Cabinet X, Page 450, Plat Records, Denton County, Texas; THENCE South 89°40'20" West, leaving said west right-of-way line, and along said north line, a distance of 1199.93 feet to a point for corner, said point being in the east right-of-way line of said Burlington Northern Railroad; THENCE North 87°39'44" West, leaving said north line, leaving said east right-of-way line, a distance of 101.16 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 3703.75 feet and a central angle of 3°44'19" and a long chord which bears South 04°12'25" West, 241.62 feet, said point being in the west right-of-way line of said Burlington Northern Railroad; THENCE along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 241.67 feet to a point for corner; THENCE South 06°04'35" West, continuing along said east right-of-way line, a distance of 2524.64 feet to a point for corner; THENCE North 83°17'00" West, continuing along said east right-of-way line, a distance of 190.16 feet to a point for corner; THENCE South 00°51'51" East, continuing along said east right-of-way line, a distance of 970.10 feet to a point for corner; THENCE South 89°03'50" West, continuing along said east right-of-way line, a distance of 31.06 feet to a point for corner; THENCE South 01°14'37" East, continuing along said east right-of-way line, a distance of 447.78 feet to a point for corner; THENCE North 87°06'22" West, leaving said east right-of-way line, a distance of 1240.48 feet to a point for corner, for the beginning of a non-tangent curve to the left having a radius of 1130.00 feet and a central angle of 103°16'58", and a long chord which bears North 38°43'34" West, 1772.16 feet, said point being in the east right-of-way line of said Plano Parkway; THENCE along said east right-of-way line, and along said non-tangent curve to the left an arc distance of 2036.97 feet to a point for corner; THENCE South 89°38'05" West, continuing along said east right-of-way line, a distance of 647.23 112 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 950.00 feet and a central angle of 40°05'36" and a long chord which bears North 70°19'29" West, 651.29 feet; THENCE continuing along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 664.77 feet to a point for corner, for the beginning of a reverse curve to the left having a radius of 1050.00 feet and a central angle of 40°15'06" and a long chord which bears North 70°25'01" West, 722.57 feet; THENCE continuing along said east right-of-way line, and along said curve to the left an arc distance of 737.65 feet to a point for corner; THENCE South 89°31'25" West, continuing along said east right-of-way line, a distance of 623.83 feet to a point for corner, for the beginning of a tangent curve to the right having a radius of 950.00 feet, a central angle of 0°48'07", and a long chord which bears South 89°55'28" West, 13.21 feet; THENCE continuing along said east right-of-way line, along said curve to the right, an arc distance of 13.21 feet to a point for corner; THENCE South 00°19'22" West, leaving said east right-of-way line, a distance of 100.00 feet to a point for corner, said point being in the west right-of-way line of said Plano Parkway; THENCE South 89°58'40" West, leaving said west right-of-way line, a distance of 1210.45 feet to a point for corner; THENCE North 00°25'18" West, a distance of 226.47 feet to the POINT OF BEGINNING and CONTAINING 19,128,279 square feet, 439.12 acres of land, more or less. 113 114 Exhibit B [Special Assessment upon the Facility Property, Waterfront Property, and the Related Development Property] 115 116 Exhibit C [Service and Assessment Plan] 117 1775.016\1053550.5 City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2025 to September 30, 2026) Approved by City Council on September 16th, 2025 118 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 2 1775.016\1053550.5 SECTION 1 INTRODUCTION Unless otherwise defined, all capitalized terms used in this "City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2025 to September 30, 2026)" (this "SAP Update") shall have the meanings set forth in that certain City of The Colony Public Improvement District No. 1 Service and Assessment Plan, originally approved on February 7, 2013, recorded in the real property records of Denton County, Texas as Document No. 2013-20487 (the "Original Service and Assessment Plan"), and as most recently amended, restated, and consolidated on January 19, 2021 by Ordinance No. 2021-2430 adopted by the City Council on January 19, 2021 approving that certain City of The Colony Public Improvement District No. 1 Amended and Restated Service and Assessment Plan (the "Amended and Restated Service and Assessment Plan," and together with the Original Service and Assessment Plan and each annual service and assessment plan update approved by the City, referred to collectively as the "Service and Assessment Plan"). Unless otherwise defined, all references to "Section" mean a section of this SAP Update, and all references to "Exhibit" mean an exhibit to this SAP Update. 1.1 On October 8, 2012, the City Council of the City of The Colony, Texas (the "City Council" and the "City") passed and approved Resolution No. 2012-073 creating The Colony Public Improvement District No. 1 (the "District") pursuant to Chapter 372, Texas Local Government Code, as amended (the "Act"). The District includes within its boundaries approximately 439.12 contiguous acres located within the corporate limits of the City south of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway which property is described by metes and bounds on Exhibit A and depicted on Exhibit A-1 (the "Property"). 1.2 The Act governs the process by which the Public Improvements Cost is allocated to and assessed against the Property. This process requires the preparation of an ongoing service plan (a "Service Plan"), an assessment plan (an "Assessment Plan"), and an assessment roll (an "Assessment Roll"). 1.3 The Act requires the preparation, and the presentment to, and review and approval by, the City Council, of a Service Plan that must: (1) cover a period of at least five years; (2) define the annual indebtedness and projected costs of the Public Improvements; and (3) include a copy of the notice form required by Section 5.014 of the Texas Property Code, as amended. The Service Plan must be reviewed and updated at least annually to determine the annual budget for the Public Improvements. The City Council may approve the Service Plan only by Ordinance; and, upon approval, a copy of the Service Plan must be filed with the County Clerk of Denton County, Texas, the County in which all of the District is located, not later than the seventh (7th) day after the date of such approval. The Service Plan is contained in Section 4. 1.4 The Act requires the Service Plan to include an Assessment Plan. The Assessment Plan assesses the Public Improvements Cost against the Property on the basis of the special benefits conferred upon the Property by the Public Improvements. The Public Improvements Cost may be assessed in any manner that results in imposing equal shares of the cost on Parcels similarly benefited. The special benefit of the Public Improvements is being apportioned by this Service and Assessment Plan to the Property in the amount of the Public Improvements Cost. The Assessment Plan is contained in Section 5. 119 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 3 1775.016\1053550.5 1.5 The Act also requires the City Council to review and update the Service Plan annually for the purpose of determining the annual budget for the Public Improvements. The annual budget for the Public Improvements is contained in Section 6. The Act states that the Service Plan may be amended or updated only by Ordinance. Upon approval of an amendment or update of the Service Plan, including the notice form required by Section 5.014 of the Texas Property Code, as amended, the City Council shall file a copy of the amended or updated Service Plan with the County Clerk of Denton County, Texas, the County in which all of the District is located, not later than the seventh (7th) day after the date of such approval. 1.6 The Act requires the preparation of an Assessment Roll after the total Public Improvements Cost has been determined. The Assessment Roll must state the assessment against each Parcel determined by the method of assessment chosen by the City Council in the Assessment Plan. The assessment against a Parcel must be sufficient to pay the share of the Public Improvements Cost allocated to the Parcel and cannot exceed the special benefit conferred upon the Parcel. The Assessment Roll is contained in Section 7. 1.7 A summary of the chronological history of City Council actions for the District is attached as Exhibit F. SECTION 2 2013 FACILITY PUBLIC IMPROVEMENTS 2.1 The portion of the Property described as Grandscape Addition Lot 1/Block A consisting of 81.99 acres and identified as Denton Central Appraisal District ("Denton CAD") Tax Parcel No. 657618, and the portion of the Property described as Grandscape Additional Lot 2/Block A consisting of 25.48 acres and identified by Denton CAD Tax Parcel No. 657619 (collectively, the "Facility Property") is developed with a mixed-use facility which includes approximately 1,280,000 square feet for warehouse and distribution uses, approximately 25,000 square feet for a regional corporate headquarters, approximately 546,000 square feet for retail sales to the general public and surface and structured parking (collectively, the "Facility"). The development of the Facility Property required construction of the 2013 Public Improvements that specially benefit the Facility Property. 2.2. In connection with the 2013 Project Infrastructure Bonds to finance a portion of the costs of the 2013 Public Improvements, the City approved the Original Service and Assessment Plan for the District by adopting the 2013 Assessment Ordinance on February 7, 2013. The 2013 Assessment Ordinance levied an Assessment in the amount of $83,400,000.00 (the "2013 Facility Public Improvement Assessment") against the Facility Property for the portion of the 2013 Public Improvements Cost that the City Council determined conferred a special benefit on the Facility Property. As authorized by the Act, the 2013 Assessment Ordinance deferred the assessment of the remainder of the 2013 Public Improvements Cost in the amount of $11,400,000.00 for the portion of the 2013 Public Improvements that specially benefit the Related Development Property (the "2013 Related Development Deferred Assessment") until the portion of the Related Development Property that is specially benefited by the 2013 Public Improvements could be identified. The 2013 Assessment Ordinance also deferred the assessment of the Related Development Public Improvements Cost against the Related Development Property until the portion(s) of the Related Development Property that are specially benefited by the Related Development Public Improvements could be identified. As described below, the City has levied 120 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 4 1775.016\1053550.5 and intends to continue levying Additional Facility Assessments against the Facility Property for costs of Additional Facility Public Improvements (that do not include the 2013 Public Improvements) and has levied and intends to continue levying Assessments against the Related Development Property for a portion of the costs of the Related Development Public Improvements (that do not include the 2013 Public Improvements). 2.3 The 2013 Facility Public Improvements have been constructed by or on behalf of the Corporations using, in part, the net proceeds of the 2013 Project Infrastructure Bonds. The 2013 Facility Public Improvements fall into the following categories: (i) water, wastewater, and drainage facilities or improvements, including sanitary sewer facilities, storm water detention and retention facilities, and utility relocations related to such improvements; (ii) street and roadway improvements, including related traffic signalization, signage, sidewalks, curbs, gutters, streetscape, landscaping, drainage improvements, and utility relocations related to such street and roadway improvements; (iii) mass transit facilities; (iv) park improvements, (v) landscapin g; (vi) lighting and signage; (vii) pedestrian malls; and (viii) site improvements for any of the foregoing, including, but not limited to, grading, erosion control, wetlands mitigation, and floodplain reclamation. The 2013 Public Improvements are more particularly described in the engineering report titled PUBLIC IMPROVEMENTS REPORT, The City of The Colony Public Improvement District No. 1, The Colony, Texas dated November 30, 2012, prepared by Graham Associates, Inc. (the "2013 Official Report"), a copy of which report is attached as Exhibit B to the Original Service and Assessment Plan. All 2013 Facility Public Improvements, and portions of the Property on which the 2013 Facility Public Improvements have been constructed, will remain owned by the City. 2.4 The 2013 Facility Public Improvement Assessment was pledged, on a pro-rata basis (based on the par amount of each series of 2013 Project Infrastructure Bonds issued as a percentage of the total par amount of all 2013 Project Infrastructure Bonds), as additional security for each series of 2013 Project Infrastructure Bonds in the event of a Debt Service Shortfall. Assessment Revenue generated from the 2013 Facility Public Improvement Assessment, if collected by the City in the event of Debt Service Shortfall, that is pledged to pay Debt Service Shortfall for any one series of the 2013 Project Infrastructure Bonds is not pledged to pay Debt Service Shortfalls for any other series of 2013 Project Infrastructure Bonds. In connection with each series of 2013 Project Infrastructure Bonds, each respective issuer of the 2013 Project Infrastructure Bonds entered into a reimbursement agreement relating to each respective series of 2013 Project Infrastructure Bonds (such agreements are referred to collectively as the "2013 Reimbursement Agreements"). On January 19, 2021, the City issued its 2021 LGC Tax Refunding Bonds that refunded all of the outstanding 2013 LGC Tax Bonds; and, the City entered into a 2021 LGC Tax Bonds Reimbursement Agreement relating to the 2021 LGC Tax Refunding Bonds. The 2021 LGC Tax Bonds Reimbursement Agreement pledged the portion of the 2013 Facility Public Improvement Assessments previously allocated to the 2013 LGC Tax Bonds to the 2021 LGC Tax Refunding Bonds and replaced the 2013 LGC Tax Bonds Reimbursement Agreement in its entirety. Public Improvement Bonds secured in whole or in part by Assessments levied against Property in the District as additional security in the event of a Debt Service Shortfall, including the 2013 Project Infrastructure Bonds (but excluding the 2013 LGC Tax Bonds which were refunded by the 2021 LGC Tax Refunding Bonds) and the 2021 LGC Tax Refunding Bonds, are referred to collectively as "Project Infrastructure Bonds." The 2013 Reimbursement Agreements together with the 2021 LGC Tax Bonds Reimbursement Agreement are referred to collectively as the "Reimbursement 121 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 5 1775.016\1053550.5 Agreements." Assessment Revenue from the 2013 Facility Public Improvement Assessment levied against the Facility Property as additional security for any series of Project Infrastructure Bonds will be collected in the event of a Debt Service Shortfall in Semi-Annual Installments and deposited into the PID Operating Account as described below in Section 5.9 below. SECTION 3 ADDITIONAL FACILITY IMPROVEMENTS AND RELATED DEVELOPMENT IMPROVEMENTS 3.1 In addition to the 2013 Facility Public Improvement Assessment, the City has levied and will continue to levy Assessments (the "Additional Facility Assessments") unrelated to Project Infrastructure Bonds or the 2013 Public Improvements against the Facility Property for "Additional Facility Public Improvements" that fall into the following categories: (i) water, wastewater, and drainage facilities or improvements, including sanitary sewer facilities, storm water detention and retention facilities, and utility relocations related to such improvements; (ii) street and roadway improvements, including related traffic signalization, signage, sidewalks, curbs, gutters, streetscape, landscaping, drainage improvements, and utility relocations related to such street and roadway improvements; (iii) mass transit facilities; (iv) park improvements, (v) landscaping; (vi) lighting and signage; (vii) pedestrian malls; (viii) site improvements for any of the foregoing, including, but not limited to, grading, erosion control, wetlands mitigation, and floodplain reclamation; (ix) special supplemental services for improvement and promotion of the District, including services relating to advertising, promotion, health and sanitation, water and wastewater, public safety, security, business recruitment, development, recreation, and cultural enhancement; and (x) payment of expenses incurred in the administration and operation of the District. The Additional Facility Public Improvements for which Assessments have been previously levied are more particularly described in the special benefits reports attached to the 2015 Annual Service Plan Update, 2015/16 Annual Service Plan Update, 2016 Annual Service Plan Update, 2017 Annual Service Plan Update, 2018 Annual Service Plan Update, 2019 Annual Service Plan Update, 2020 Annual Service Plan Update, 2021 Annual Service Plan Update, 2022 Annual Service Plan Update, 2023 Annual Service Plan Update, 2024 Annual Service Plan Update (each as described and defined in Exhibit F) and in this Section 3 of this SAP Update. The Additional Facility Assessments have not been and will not be pledged as security for any series of Project Infrastructure Bonds. The Creation Resolution establishes a cap on the amount of total costs for which Assessments may be levied against the Facility Property and in no event shall the total amount of Assessments levied against the Facility Property for the 2013 Public Improvements and the Additional Facility Public Improvements exceed $150,000,000. 3.2 As described above in Section 2.2, the City deferred the 2013 Related Development Deferred Assessment for the remainder of the 2013 Public Improvements Cost in the amount of $11,400,000.00 for the portion of the 2013 Public Improvements that specially benefit the Related Development Property until the portion of the Related Development Property that is specially benefited by the 2013 Public Improvements could be identified. The City has levied, and intends to continue levying, additional Assessments against the Related Development Property for the remaining Related Development Public Improvements Cost (that do not include the 2013 Public Improvements) as portions of the Related Development Property that are specially benefited by the Related Development Public Improvements are developed. The costs of certain Related Development Public Improvements and the method of allocation of such costs based on the benefit 122 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 6 1775.016\1053550.5 conferred by such Related Development Public Improvements are included in this SAP Update; and, additional information for the Related Development Public Improvements will be included in future updates to the Service and Assessment plan as development progresses. 3.3 The Related Development Public Improvements fall into the same categories as the 2013 Facility Public Improvements plus: (i) off street structured and surface parking facilities, (ii) special supplemental services for improvement and promotion of the District, including services relating to advertising, promotion, health and sanitation, water and wastewater, public safety, security, business recruitment, development, recreation, and cultural enhancement; and (iii) payment of expenses incurred in the administration and operation of the District. 3.4 Portions of the Related Development Property remain undeveloped, while other portions are under development or fully developed. Portions of the Property will be developed with additional mixed-use facilities including, but not limited to, entertainment, tourism, recreation, and convention facilities that will attract tourists, visitors, and shoppers from a wide geographic region, and hotels, retail stores, concessions, restaurants, and other facilities related to the entertainment, tourism, recreation, and convention uses (collectively, the "Related Development"). The portions of the Related Development currently under development include the following: the portion of the Property described as (1) Grandscape Addition, Phase II, Lot 6/Block A consisting of 2.015 acres and identified as Denton CAD Tax Parcel No. 692390; (2) Grandscape Addition, Phase II, Lot 7/Block A consisting of 2.105 acres and identified as Denton CAD Tax Parcel No. 692391; (3) Grandscape Addition, Phase II, Lot 8/Block A consisting of 2.944 acres and identified as Denton CAD Tax Parcel No. 653843; (4) Grandscape Addition, Phase II, Lot 9/Block A consisting of 2.683 acres and identified as Denton CAD Tax Parcel No. 653844; (5) Grandscape Addition Phase II, Lot 2R/Block B consisting of 1.903 acres and identified as Denton CAD Tax Parcel No. 692387; (6) Grandscape Addition Phase II, Lot 3R-X/Block B consisting of .301 acres and identified as Denton CAD Tax Parcel No. 692388; (7) Grandscape Addition Phase II, Lot 1/Block B consisting of 3.386 acres and identified as Denton CAD Tax Parcel No. 674231; (8) Grandscape Addition Phase II, Lot 1R/Block J consisting of 2.931 acres and identified as Denton DCAD Property ID No. 692379; (9) Grandscape Addition Phase II Lot 3X/Block J consisting of .204 acres and identified as Denton CAD Tax Parcel No. 692380; (10) Grandscape Addition Phase II, Lot 1(S pt)/Block H consisting of 8.551 acres and identified as Denton DCAD Property ID No. 732382; (11) Grandscape Addition Phase II, Lot 3(SE PT)/Block A consisting of 86.502 acres as identified as Denton CAD Property ID No’s. 748393,753491 and 753492; (12) Grandscape Addition Phase II BLK A LOT 3R consisting of 3.645 acres and identified as Denton CAD Tax Parcel No. 674218; (13) Grandscape Addition BLK B Lot 4 consisting of 1.925 acres and identified as Denton CAD Property ID No. 692389 (14) GRANDSCAPE ADDITION PHASE II BLK H LOT 4R2-1 consisting of 10.35 acres as identified as Denton CAD Property ID No. 1015683; (15) GRANDSCAPE ADDITION PHASE II BLK H LOT 4R1 consisting of 3.581 acres as identified as Denton CAD Property ID No. 1003642; (16) GRANDSCAPE ADDITION PHASE II BLK E LOT 1R consisting of 1.029 acres and Identified as Denton CAD Property ID No. 1004631’ (collectively 1.2(1)-(16) are, the "Related Development Property"). Certain public improvements (the "Related Development Public Improvements") are or will be required to serve the Related Development Property. The portion of the property described as Grandscape Addition, Phase II, Lot 2/Block D consisting of approximately 16.421 acres and identified as Denton CAD Tax Parcels Nos. 957987, 704832, 957988, 957989, 957990, 957991 and 957992 (the "Waterfront Property") will be developed with a boardwalk and related amenities (the "Waterfront"), including 123 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 7 1775.016\1053550.5 public improvements required to serve the Waterfront (the "Waterfront Public Improvements", and together with the Related Development Public Improvements referred to collectively as the "Annual Related Development Public Improvements"). 3.5 All Additional Facility Public Improvements and Annual Related Development Public Improvements, and portions of the Property on which such Public Additional Facility Public Improvements and Annual Related Development Improvements are constructed, will remain owned by the City. 3.6 The annual costs for the Additional Facility Public Improvements, Waterfront Public Improvements and Related Development Public Improvements are estimated in the Official Report for the 2025-26 Public Improvements Cost attached as Exhibit B. The total cost of the Additional Facility Public Improvements is estimated to be $626,026.03 (the "2025-26 Additional Facility Public Improvements Cost") as shown on Exhibit B. The annual total cost of the Waterfront Public Improvements is estimated to be $46,944.63 (the "2025-26 Waterfront Public Improvements Cost") as shown on Exhibit B. The annual total cost of the Related Development Public Improvements is estimated to be $386,896.70 (the "2025-26 Related Development Public Improvements Cost") as shown on Exhibit B. The individual line item costs shown in the Official Report for each category of Additional Facility Public Improvements and Annual Related Development Public Improvements are estimates and may vary item-to-item so long as the cost of all Public Improvements do not exceed $1,059,867.36. The 2025-26 Additional Facility Public Improvements Cost, 2025-26 Waterfront Public Improvements Cost, and 2025-26 Related Development Public Improvements Cost are sometime referred to collectively as the "2025-26 Public Improvements Cost." A reconciliation of the 2024-25 Public Improvement Costs yielded a $363,842.00 surplus. To provide operations funding during the lag period between the budget commencement and the annual assessment collection $261,337.16 (90 days of operating costs) was allocated to a “Pre-paid Expense” line item. An additional $17,910 is being added to the total assessment to recover costs from parcel-specific services ("Direct Supplemental Services") as described in Exhibit D. The total sum of the 2025-26 Public Improvements Cost ($1,059,867.36), the 90 days of operating costs reserve ($261,337.00), and the parcel specific Direct Supplemental Services ($17,910) brings the overall 2025-26 costs to $1,339,114.52. The 2024-25 surplus of $363,842.00 was allocated proportionately to reduce the 2025-26 Assessment from $1,339,114.52 to $975,272.52. 3.7 Assessments levied against the Facility Property, Related Development Property, or Waterfront Property for costs of the Additional Facility Public Improvements and Annual Related Development Public Improvements, as applicable, that are not pledged as security for Project Infrastructure Bonds shall be updated annually and shall be collected as described below in Section 5.10 and shall be deposited into a sub-account of the PID Operating Account and used solely for the purposes determined by the City Council at the time the Assessments are levied. SECTION 4 SERVICE PLAN 4.1 This Section 4 is the Service Plan for the District. This Service Plan covers a period of at least five (5) years beginning with calendar year 2021 and defines the projected cost and annual indebtedness for the Public Improvements. The Service Plan shall be reviewed and updated at least 124 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 8 1775.016\1053550.5 annually for the purpose of determining the annual budget for the Public Improvements (each such update, a "Service Plan Update"). 4.2 As confirmed by the 2021 City Ordinance, the actual costs for the 2013 Public Improvements exceeded the estimated 2013 Public Improvements Cost of $94,800,000.00 described in the Original Service and Assessment Plan, the 2013 Official Report, and 2013 Special Benefit Analysis. The annual indebtedness for the 2013 Public Improvements for the next five years is shown on Exhibit C-1. The annual indebtedness for the 2013 Public Improvements Cost in any given year is the sum of the Semi-Annual Installments for the Project Infrastructure Bonds for the year. 4.3 The projected Additional Facility Public Improvements Cost is $626,026.03, and for the next five years is allocated as shown on Exhibit C-2. The annual indebtedness for the Additional Facility Public Improvements shown on Exhibit C-2 is a portion of the Additional Facility Assessment the City has levied or expects to levy against the Facility Property for each year shown. The Additional Facility Assessment will also include costs related to the 90 days of operating reserve apportioned to the Facility Property as well as any Direct Supplemental Services apportioned to the Facility Property and will be adjusted by application of a portion of any prior year's surplus or deficit; all of which will be described in Exhibit D and will be updated each year. 4.4 The projected costs for the Annual Related Development Public are $433,841.32 and for the next five years such cost is allocated as shown on Exhibit C-3. The annual indebtedness for the Annual Related Development Public Improvements is a portion of the Assessments the City has levied or expects to levy against the Waterfront Property and Related Development Property for each year shown. The Assessments levied against the Waterfront Property and Related Development Property will also include costs related to the 90 days of operating reserve apportioned to the Waterfront Property and Related Development Property as well as any Direct Supplemental Services apportioned to the Waterfront Property and Related Development Property and will be adjusted by application of a portion of any prior year's surplus or deficit which will be described in Exhibit D and will be updated each year. 4.5 The form of notice required by Texas Property Code Section 5.014, as amended, is attached as Exhibit C-4. SECTION 5 ASSESSMENT PLAN 5.1 Method of Assessment. This Section 5 is the Assessment Plan for the District. This Assessment Plan assesses the Public Improvements Cost against the Property on the basis of the special benefits conferred on the Property by the Public Improvements. The Act provides that the Public Improvements Cost may be assessed equally per front foot or square foot (with or without regard to the value of improvements constructed on the land) or in any other manner that results in imposing equal shares of the cost on property similarly benefited. 5.2 Best and Highest Use. Based on: (i) the size and location of the Property within the corporate limits of the City; (ii) the lack of public infrastructure to serve development of the Property; (iii) the proximity of the Property to public roadways and water and sewer facilities; (iv) 125 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 9 1775.016\1053550.5 the proximity of the Property to population and employment centers; (v) the scope and economic impact of the Facility, the Waterfront and the Related Development on the City, Denton County; and the north Texas region; (vi) existing and projected land uses in the vicinity of t he Property; (vii) projected growth in the greater Dallas metropolitan area and, in particular, along the State Highway 121 corridor; and (viii) the quality of the proposed development within the Property, the City Council has determined that: (A) the best and highest use of the Property is for the development of the Facility, the Waterfront, and the Related Development; (B) achieving the best and highest use of the Property requires the Public Improvements; (C) without the Public Improvements the Property will not be developed to its best and highest use; (D) the establishment of the District provides an effective means of funding the Public Improvements to achieve the best and highest use for the Property without financial burden to the City; and (E) the P ublic Improvements will promote the interests of the City and confer a special benefit on the Property. 5.3 Assessments Against Facility Property. As described in Section 2.2 above, the City has levied the 2013 Facility Public Improvement Assessment in the amount of $83,400,000.00 against the Facility Property for the portion of the 2013 Public Improvements Cost that the City Council determined conferred a special benefit on the Facility Property. Based on the costs shown in the Official Report for the 2025-26 Public Improvements attached as Exhibit B and the Special Benefits Report attached as Exhibit D, the City has levied $583,969.62 in Assessments against the Facility Property as shown on the Assessment Roll attached as Exhibit E which consists of $626,026.03 for the 2025-26 Additional Facility Public Improvements Costs plus $108,370.54 or approximately 41.47% the 90 days of operating costs plus $450 in specific Direct Supplemental Services minus $150,426.95 or approximately 41% of the 2024-25 surplus described in Section 3.6 above apportioned to the Facility Property based on the benefit analysis described in Exhibit D. As the Facility Property is specially benefitted by Additional Facility Improvements, the City intends to continue to levy Assessments against the Facility Property. The Creation Resolution establishes a cap on the amount of the total costs for which Assessments may be levied against the Facility Property and in no event shall the total amount of Assessments levied against the Facility Property for the 2013 Public Improvements and the Additional Public Improvement exceed $150,000,000. As shown in Paragraphs 1 and 2 of Section 7 below, a total of $92,511,903.93 has been levied against the Facility Property, consisting of $83,400,000.00 for the 2013 Public Improvements and $9,111,903.93 for the Additional Facility Public Improvements. 5.4 Assessments Against Related Development Property. As described in Section 2.2 above, the City deferred assessment of the remainder of the 2013 Public Improvements Cost in the amount of $11,400,000.00 for the portion of the 2013 Public Improvements that specially benefit the Related Development Property (the "2013 Related Development Deferred Assessment") until the portion of the Related Development Property (which included the Waterfront Property at the time of the deferral) that is specially benefited by the 2013 Public Improvements could be identified. The deferral of the levy of the 2013 Related Development Deferred Assessment in the amount of $11,400,000.00 under the 2013 Assessment Ordinance is hereby restated and shall be deferred until the development of the Property is certified as complete by the owner. Based on the costs shown in the Official Report for the 2025-26 Public Improvements attached as Exhibit B and the Special Benefits Report attached as Exhibit D, the City has levied Assessments in the amount of $40,452.38 (as shown on Exhibit E, the "2025 Waterfront Assessment") against the Waterfront Property consisting of $46,944.63 for the costs of 2025-26 Waterfront Public 126 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 10 1775.016\1053550.5 Improvements plus $16,552.04 or approximately 6.33% of the 90 days of operating costs plus $0 in specific Direct Supplemental Services minus $23,044.29 or approximately 6% of the 2024-25 surplus described in Section 3.6 above apportioned to the Facility Property based on the benefit analysis described in Exhibit D. Based on the costs shown in the Official Report for the 2025-26 Public Improvements attached as Exhibit B and the Special Benefits Report attached as Exhibit D, the City has levied Assessments in the amount of $350,850.51 (as shown on Exhibit E, the "2025 Related Development Assessment") against the Related Development Property consisting of $386,896.70 for the costs of 2025-26 Related Development Public Improvements plus $261,337.16 or approximately 52.2% of the 90 days of operating costs plus $17,910 in specific Direct Supplemental Services minus $190,370.76 or approximately 52% of the 2024-25 surplus described in Section 3.6 above apportioned to the Facility Property based on the benefit analysis described in Exhibit D. As portions of the Waterfront Property that are specially benefited by the Waterfront Public Improvements are developed and as portions of the Related Development Property that are specially benefited by the Related Development Public Improvements are developed, the City intends to continue to levy additional Assessments against the Waterfront Property and the Related Development Property, as applicable, for the remaining Waterfront Pubic Improvements Costs and the Related Development Public Improvements Costs (and that do not include the 2013 Public Improvements) as described in Section 3.2 above. The Creation Resolution establishes a cap of $150,000,000 of the total costs for which Assessments may be levied for the "Related Improvements Costs" (as defined in the Creation Resolution). As shown in Paragraph 3 of Section 7 below, a total of $6,265,756.42 has been levied for the Annual Related Development Public Improvements (consisting of the Waterfront Public Improvements and Related Development Public Improvements) which does NOT include the 2013 Related Development Deferred Assessment in the amount of $11,400,00.00. 5.5 Adjustment of Assessments. With the exception of the 2013 Facility Public Improvement Assessment, the Assessments described in this Section 5 are based on estimates of the Public Improvements Costs until construction of such Public Improvement, or provision of services if applicable, is complete. If the actual cost of the Public Improvements is less than the estimates, the Assessments shall be reduced as determined by the Administrator and approved by the City Council in a Service Plan Update. 5.6 Subdivision; Change to Tax Exempt. 5.6.1 Upon Subdivision. If the Facility Property is subdivided, any Assessment levied against the Facility Property shall be reallocated as described in Section 4.6.1 of the Service and Assessment Plan. Additionally, other than annual Assessments for the Annual Related Development Public Improvements that are not pledged as security to any series of PID bonds, any Assessment against Related Development Property will not be reallocated among subdivided Parcels until the development of the Related Development Property is certified as complete by the owner. If the Related Development Property or Waterfront Property is subdivided, the annual Assessment levied against Related Development Property or Waterfront Property under this SAP Update for the Annual Related Development Public Improvements will be reallocated among the subdivided Parcels on a per-acre basis as determined by the Administrator and reflected in a Service Plan Update approved by the City Council after a public hearing for which notice addressed to "Property 127 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 11 1775.016\1053550.5 Owner" has been mailed, regular mail, to the current address of the owner of the property being subdivided as reflected on the tax rolls. 5.6.2 Upon Becoming Tax Exempt. If any portion of the Facility Property becomes exempt from the payment of ad valorem taxes, the owner of such portion shall pay to the City the unpaid principal amount of the Assessment allocated (on a per-acre basis) to such portion of the Facility Property plus, if applicable, accrued interest through the date of payment. Prepayment Costs, if any, shall be paid as a Semi-Annual Administrative Cost. If any portion of the Related Development Property or Waterfront Property becomes exempt from the payment of ad valorem taxes, the owner of such portion shall pay to the City the unpaid principal amount of the Assessment allocated (on a per-acre basis) to such portion of the Property. 5.7 Prepayment of Assessments. The unpaid principal amount of an Assessment may be prepaid in full or in part at any time, together with accrued interest, if any, through the date of prepayment; whereupon the Assessment and corresponding assessment lien automatically terminate and shall be reduced to zero in a Service Plan Update. Prepayment Costs, if any, may be paid by the Administrator from Semi-Annual Administrative Cost. 5.8 Accrual of Interest. Assessments shall not bear interest except for interest authorized by Section 372.018(a) of the Act. Assessments that are deferred may bear interest as approved by the City Council at the time the Assessments are levied. 5.9 Semi-Annual Installments of Assessments Related to Project Infrastructure Bonds. Assessments levied against the Facility Property and/or the Related Development Property and pledged as security to any series of Project Infrastructure Bonds, including the 2013 Facility Public Improvement Assessment securing the 2013 Project Infrastructure Bonds and 2021 LGC Tax Refunding Bonds, shall be due and payable to the City in Semi-Annual Installments as set forth in the applicable Reimbursement Agreement beginning on the date stated in the applicable Reimbursement Agreement and continuing every March 1 and September 1 thereafter and will be delinquent if not paid within three calendar days after it is due and payable. Semi-Annual Installments are not required to be level amounts and will vary depending on Semi-Annual District Expenses and the amounts, if any, of Debt Service Shortfalls. For so long as any Project Infrastructure Bonds remain outstanding, each of the Corporations, pursuant to a Reimbursement Agreement, is required to calculate its respective Debt Service Shortfall amount for each bond issue based on the "Bond Debt Service" schedules attached as Exhibit E-1, and each Corporation shall certify such Debt Service Shortfall amount to the City no later than each February 1 or August 1, commencing August 1, 2013 (each a "Semi-Annual Calculation Date"). Upon notification of each Debt Service Shortfall amount due for each bond issue, the City shall calculate the amount of the Semi-Annual Installment and shall submit a bill to each property owner no later than each February 15 and August 15 (each a "Semi-Annual Billing Date"). The City will use all reasonable efforts to collect Semi-Annual Installments before they become delinquent. If a Semi- Annual Installment becomes delinquent, all remedies at law or under the Act shall be available to the City. If a Debt Service Shortfall is anticipated for more than one series of Project Infrastructure Bonds, a portion of the funds in the PID Operating Account shall be transferred on a pro-rata basis to separate sub-accounts corresponding to each issue of Project Infrastructure Bonds for which a Debt Service Shortfall is anticipated to occur; and, such amounts shall be paid by the City f rom such sub-accounts to each of the Corporations under the applicable Reimbursement Agreement to 128 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 12 1775.016\1053550.5 pay Debt Service Shortfalls for the applicable series of Project Infrastructure Bonds. As required under each respective Reimbursement Agreement, each Corporation calculated any anticipated Debt Service Shortfall based on the Bond Debt Service schedules no later than February 1, 202 5 and August 1, 2025; and, each Corporation determined there would be no Debt Service Shortfall and no Semi-Annual Installments were required to be paid for calendar year 2025. 5.10 Annual Payment of Assessments Not Related to Project Infrastructure Bonds. Assessments levied against the Facility Property or the Related Development Property for costs of the Additional Facility Public Improvements or the Related Development Public Improvements that are not pledged as security for Project Infrastructure Bonds shall be updated annually and shall be collected by the City in the same manner and at the same time as ad valorem taxes in the am ount shown on the Assessment Rolls attached to each Annual Service Plan Update. Such Assessments shall be due when billed and shall be delinquent if not paid prior to February 1 of the following year. Failure of a landowner to receive an invoice for such Assessment on the property tax bill shall not relieve the landowner of the responsibility for payment of the Assessment. Assessment Revenue collected by the City from Assessments levied against the Facility Property or the Related Development Property for Additional Facility Public Improvements and/or Related Development Public Improvements based on the special benefit conferred by such Additional Facility Public Improvements or the Related Development Public Improvements that is not pledged as security for any series of Project Infrastructure Bonds and shall be deposited into a sub-account of the PID Operating Account and used solely for the purposes determined by the City Council at the time the Assessments are levied. 5.11 PID Operating Account. Assessment Revenue from the collection of Semi-Annual Installments of an Assessment against the Facility Property and/or Related Development Property in connection with the issuance of a series of Project Infrastructure Bonds will be deposited by the City into the PID Operating Account, including sub-accounts corresponding to each issue of Project Infrastructure Bonds, as applicable, immediately upon receipt and will be transferred by the City to the respective Corporations, or to the applicable trustee(s) for the benefit of such Corporations, to pay Debt Service Shortfalls, if any, by September 5, 2013, and by each March 5 and September 5 thereafter for so long as Project Infrastructure Bonds are outstanding. Assessment Revenue from the collection of an Assessment against the Facility Property and/or Related Development Property unrelated to the issuance of a series of Project Infrastructure Bonds will be deposited by the City into the PID Operating Account, including sub-accounts as applicable, immediately upon receipt and shall be used solely for the purposes determined by the City Council at the time such Assessments were levied. Any Assessment Revenue due to the Corporations on any such date but collected by the City after the due date shall be transferred to the r espective Corporations or applicable trustee(s) within two business days. Assessment Revenue from the collection of any Assessment against the Property will be deposited by the City into the PID Operating Account for Annual Assessments. Assessment Revenue from the 2025 Related Development Assessment against all or any portion of the Property will be collected in lump sum with 30 days of the levy of the assessment or with the annual property tax collection and deposited into a segregated operating account (the "PID Operating Account for Annual Assessments") created and controlled by the City. Interest earned on the PID Operating Account for Annual Assessments shall be added to and become part of the PID Operating Account for Annual Assessments. The PID Operating Account for Annual Assessments is a separate account and segregated from the "PID Operating Account" described in the Service and Assessment Plan that 129 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 13 1775.016\1053550.5 was created pursuant to the 2013 Assessment Ordinance (such account is referred to herein as the "PID Operating Account for Pledged Revenues.") All Assessment Revenue from the 2013 Facility Public Improvement Assessment and the 2013 Related Development Deferred Assessment levied pursuant to Ordinance No. 2013-1992 shall be deposited into the PID Operating Account for Pledged Revenues and transferred from that account, if at all, consistent with the requirements of 2013 Assessment Ordinance and the trust indentures governing the Project Infrastructure Bonds. All Assessment Revenue from any Assessment levied on an annual basis shall be deposited into the PID Operating Account for Annual Assessments and used solely for the purposes determined by the City Council at the time the Assessments are levied. 5.12 Reduction of Assessment Against the Property. The Assessment against the Facility Property (and the corresponding assessment lien) shall be reduced by the sum of all amounts by which the outstanding principal of the Project Infrastructure Bonds for which the PID Operating Account is pledged, as additional security, are reduced and by sum of all prepayments of the Assessment made pursuant to Section 5.7. The current outstanding principal amount of the Assessments levied against the Facility Property based on the debt service schedules related to the Project Infrastructure Bonds attached as Exhibit E-1 is set forth in Section 7 below. The Assessment against the Property (and the corresponding assessment lien) shall be reduced by the sum of all amounts by which the Public Improvement Costs are reduced. 5.13 Security for Payment. All payments due in accordance with the Service and Assessment Plan as updated by this SAP Update shall be treated the same with respect to the liens created to secure payment and the rights of the City, including foreclosure, in the event of delinquencies. Any foreclosure sale of a Parcel for nonpayment of any such amounts shall be subject to a continuing lien for the remaining unpaid amounts in accordance with state law. All assessment liens created pursuant to the 2013 Assessment Ordinance are superior to any lien created by any other ordinance approving an Annual Service Plan Update, including this SAP Update. 5.14 Release of Lien. When an Assessment has been paid in full, the Administrator shall notify the City, and the City shall execute a release, in recordable form, evidencing full payment of the Assessment and the unconditional release of the lien securing payment of the Assessment. All releases shall be reflected in a Service Plan Update. 5.15 Findings and Determinations. The findings and determinations by the City Council set forth in this Service and Assessment Plan are based on: (i) the 2013 Official Report prepared by Graham Associates, Inc.; (ii) the 2013 Special Benefits Report prepared by Graham Associates, Inc.; (iii) evidence and testimony presented to the City Council; and (iv) information made available to the City Council. The City Council hereby confirms and ratifies the findings and determinations made by the City Council in the 2015 Assessment Ordinance, 2016 Assessment Ordinance, 2017 Assessment Ordinance, 2018 Assessment Ordinance, 2019 Assessment Ordinance,2020 Assessment Ordinance, 2021 Assessment Ordinance, 2022 Assessment Ordinance, 2023 Assessment Ordinance, and 2024 Assessment Ordinance (each as described and defined in Exhibit F), including the special benefits reports and annual service plan updates attached thereto. The City Council has relied on the information contained in the 2013 Official Report, 2013 Special Benefits Report, the reports and special benefit analysis contained in each Annual Service Plan Update, evidence, and testimony in the preparation and approval of this Service and Assessment Plan and the allocation of the Public Improvements Cost to the Property. Such findings and determinations represent the discretionary exercise by the City Council of its legislative and 130 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 14 1775.016\1053550.5 governmental authority and power, and such findings and determinations are conclusive and binding on the current and future owners of the Property. The Corporations have concurred in and approved the findings and determinations by the City Council as set forth in this Service and Assessment Plan and have otherwise concurred in and approved this Service and Assessment Plan and the levy of Assessments against the Property. The Corporations have acknowledged that the Property is subject to payment of Assessments and/or Semi-Annual Installments as provided in this Service and Assessment Plan and in the Reimbursement Agreements. SECTION 6 ANNUAL BUDGET FOR PUBLIC IMPROVEMENTS 6.1 2013 Public Improvements Costs. On January 19, 2021, the City approved Ordinance No. 2021-2430 (the "2021 City Ordinance"), approving the Amended and Restated Service and Assessment Plan and making certain finding and determinations related to the District. In the 2021 City Ordinance, the City Council ratified and confirmed the allocation of the 2013 Public Improvements Cost approved by the 2013 Assessment Ordinance and Original Service and Assessment Plan as follows: (1) $83,400,000 for the special benefit to the Facility Property for which the 2013 Facility Public Improvement Assessment was levied, and (2) $11,400,000.00 for the benefit to the Related Development Property for which the 2013 Related Development Deferred Assessment has been deferred. Additionally, the 2021 City Ordinance confirmed that the actual costs for the 2013 Public Improvements exceeded the estimated 2013 Public Improvements Cost of $94,800,000.00 described in the Original Service and Assessment Plan, the 2013 Official Report, and 2013 Special Benefit Analysis. 6.2 2025 Public Improvements Cost. The City Council has received, reviewed, and approved that certain SPECIAL BENEFITS REPORT, The City of The Colony Public Improvement District No. 1, The Colony, Texas dated August 19th, 2025 prepared by Executive Business Liaison Jeremie Maurina, a copy of which is attached as Exhibit D (the "2025-26 Special Benefits Report”). The individual line item costs shown in the 2024 Special Benefits Report for each category of improvements are estimates and may vary item-to-item so long as the Public Improvements Cost does not exceed $1,059,867.36 (which does not include the $261,337.16 for 90 days of operating costs plus $17,910 for Direct Supplemental Services minus the $363,842 2024-25 surplus). SECTION 7 ASSESSMENT ROLL This Section 7 describes the Assessment Roll for the District. The Assessment Roll is set forth on Exhibit E and consists of: 1. The 2013 Facility Public Improvement Assessment originally levied in principal amount of $83,400,000.00 by the 2013 Assessment Ordinance with an outstanding principal amount of $77,842,986 as of December 31, 2022. The 2013 Facility Public Improvement Assessment is allocated as follows among the Project Infrastructure Bonds: Pro-Rata Share(1) Allocated Portion of Original 2013 Facility Public Outstanding Principal Amount of 2013 Facility Public Improvement 131 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 15 1775.016\1053550.5 Improvement Assessment Assessment as of 9/16/2025 2013 LGC Sales Tax Bonds 16.80% $14,011,200 $ 12,449,006.36 (2) 2021 LGC Tax Refunding Bonds(3) 20.60% $17,180,400(3) $ 12,637,696.23 (2) 2013 Type A Bonds 31.30% $26,104,200 $ 22,896,330.93 (2) 2013 Type B Bonds 31.30% $26,104,200 $ 22,896,330.93 (2) (1) Pro-rata allocation of the original principal amount of the $83,400,000 2013 Facility Public Improvement Assessment was based on the par amount of each series of 2013 Project Infrastructure Bonds issued as a percentage of the total par amount of all 2013 Project Infrastructure Bonds . (2) In accordance with Section 5.12 above, the principal amount of the 2013 Facility Public Improvement Assessment was reduced by the sum of all amounts by which the outstanding principal amount of the 2013 Project Infrastructure Bonds have been reduced. As of December 31, 2021, the outstanding par amount of the 2013 Project Infrastructure Bonds (with the 2021 LGC Tax Refunding Bonds) was $80,350,000 thus reducing the outstanding 2013 Facility Public Improvement Assessment to $70,879,364.46. The following Semi-Annual Installments have been collected to pay Debt Service Shortfalls on the 2013 LGC Sales Tax Bonds: on February 14, 2017 in the amount of $500,081.25; on July 17, 2017 in the amount of $1,158,162.50; on July 16, 2018 in the amount of $1,294,662.50; and on July 25, 2019 in the amount of $1,306,963.00 for a total of $4,259,869.25 which payments do not reduce the principal amount of the 2013 Facility Public Improvement Assessment. (3) The pro-rata share of the 2013 Facility Public Improvement Assessment that formerly secured the 2013 LGC Tax Bonds now secures the 2021 LGC Tax Refunding Bonds. [Remainder of page left blank intentionally.] 132 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 16 1775.016\1053550.5 2. Assessments related to the Additional Facility Public Improvements: Original Principal Amount Levied Outstanding as of 10/1/2025 2015 Facility Assessment(1) $959,247.96 $0.00 2015-16 Facility Assessment(2) $1,218,234.83 $0.00 2016 Facility Assessment $875,155.64 $0.00 2017 Facility Assessment $658,465.00 $0.00 2018 Facility Assessment $810,379.62 $0.00 2019 Facility Assessment $570,667.99 $0.00 2020 Facility Assessment $862,382.25 $0.00 2021 Facility Assessment $535,879.94 $0.00 2022 Facility Assessment $731,985.36 $0.00 2023 Facility Assessment $691,853.18 $0.00 2024 Facility Assessment $613,682.54 $0.00 2025 Facility Assessment $583,969.62 $583,969.62 TOTAL: $9,111,903.93 (1) Levied under Ordinance No. 2015-2136 approved on May 5, 2015. (2) Levied under Ordinance No. 2015-2160 approved on September 15, 2015. 3. Assessments related to the Annual Related Development Public Improvements:1 Original Principal Amount Levied Outstanding as of 10/1/2025 2015 Related Development Assessment(1) $420,053.04 $0.00 2015-16 Related Development Assessment(2) $236,757.17 $0.00 2016 Related Development Assessment $287,680.36 $0.00 2017 Related Development Assessment $872,993.00 $0.00 2018 Related Development Assessment $687,426.36 $0.00 2019 Related Development Assessment $490,441.03 $0.00 2020 Related Development Assessment $810,043.90 $0.00 2021 Related Development Assessment $366,446.95 $0.00 2022 Related Development Assessment $572,445.40 $0.00 2023 Related Development Assessment $643,597.28 $0.00 2024 Related Development Assessment $486,578.04 $0.00 1 Includes the Assessments levied against the Waterfront Property and the Related Development Property. Excludes the 2013 Related Development Deferred Assessment. 133 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 17 1775.016\1053550.5 Original Principal Amount Levied Outstanding as of 10/1/2025 2025 Related Development Assessment $391,302.89 $391,302.89 TOTAL: $6,265,765.42 (1) Levied under Ordinance No. 2015-2136 approved on May 5, 2015. (2) Levied under Ordinance No. 2015-2160 approved on September 15, 2015. As authorized by the Act, the assessment of the 2013 Related Development Deferred Assessment in the amount of $11,400,000 for the portion of the 2013 Facility Public Improvements that benefit the Related Development Property remains deferred until the development of the Related Development Property is certified as complete by the owner which will be the time at which the special benefit conferred on the Related Development Property can be determined with certainty. SECTION 8 ADDITIONAL PROVISIONS 8.1 Severability. The provisions of this Service and Assessment Plan are intended to be severable. In the event any provision of this Service and Assessment Plan, or the application thereof to any person or circumstance, is held or determined to be invalid, illegal, or unenforceable, and if such invalidity, unenforceability, or illegality does not cause substantial deviation from the underlying intent of the City Council as expressed in this Service and Assessment Plan, then such provision shall be deemed severed from this Service and Assessment Plan with respect to such person, entity, or circumstance without invalidating the remainder of this Service and Assessment Plan or the application of such provision to other persons, entities, or circumstances. 8.2 Exhibits. The following exhibits are part of this Service and Assessment Plan: Exhibit A Legal Description of the Property Exhibit A-1 Depiction of the Property Exhibit B Official Report – 2022 Public Improvements Cost Exhibit C-1 Service Plan: Five-Year Projection of 2013 Public Improvements Exhibit C-2 Service Plan: Five-Year Projection of Additional Facility Public Improvements Costs Exhibit C-3 Service Plan: Five-Year Projection of Related Development Public Improvements Costs Exhibit C-4 Form of Notice Required by Texas Property Code Section 5.014 Exhibit D Special Benefits Report Exhibit E Assessment Roll Exhibit E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfall Exhibit F Chronological History of City Council Legislative Actions for the District 134 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 1 1775.016\1053550.5 Being a 439.12 acre tract of land situated in the B.B.B & C.R.R. Survey, Abstract No. 173, B.B.B. & C. Survey, Abstract No. 174, Thomas A. West Survey, Abstract No. 1344, and the M.D.T. Hallmark Survey, Abstract No. 570, Denton County, Texas, and being all of a tract of land conveyed by deed to 12 1 Acquisition Company, LLC., as recorded in Instrument No. 2011-114773, 2011-121444, and 2011-112195, Deed Records, Denton County, Texas, and a portion of Plano Parkway and a portion of Burlington Northern Railroad tract, and being more particularly descri bed as follows: BEGINNING at a found TxDOT monument, said point being the northwest corner of said 121 Acquisition Company, LLC tract and being in the south right-of-way line of State Highway 121 (having a variable width R.O.W.); THENCE North 63°32'06" East, along said south right-of-way line, a distance of 130.52 feet to a point for corner; THENCE North 60°22'33" East, continuing along said south right -of-way line, a distance of 80.86 feet to a point for corner; THENCE South 29°13'03" East, continuing along said south right -of-way line, a distance of 50.00 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right -of-way line, a distance of 219.64 feet to a point for corner, said point being in the west right-of-way line of Plano Parkway (100 ft R.O.W.); THENCE North 50°53'35" East, leaving said south right-of-way line, and leaving said west right-of-way line, a distance of 100.00 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 950.00 feet and a central angle of 1°26'54" and a long chord which bears North 38°22'58" West, 24.01 feet, said point being in the east right-of-way line of said Plano Parkway; THENCE along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 24.01 feet to a point for corner, said point being the most southerly point of a corner -clip of the intersection of said east right-of- way line of Plano Parkway and the south right-of-way line of said State highway 121; THENCE North 08°46'31" East, along said corner-clip, a distance of 26.03 feet to a point for corner, said point being in the south right-of-way line of said State highway 121; THENCE North 60°47'38" East, along said south right-of-way line, a distance of 203.71 feet to a point for corner; THENCE North 58°17'36" East, continuing along said south right -of-way line, a distance of 252.11 feet to a point for corner; THENCE North 55°47'40" East, continuing along said south right-of-way line, a distance of 105.11 feet to a point for corner; THENCE North 58°17'42" East, continuing along said south right -of-way line, a distance of 248.62 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right-of-way line, a distance of 263.85 feet to a point for corner; THENCE North 76°30'51" East, continuing along said south right -of-way line, a distance of 92.27 feet to a point for corner; THENCE North 65°56'12" East, continuing along said south right -of-way line, a distance of 100.40 feet to a point for corner; THENCE North 64°13'39" East, continuing along said south right -of-way line, a distance of 100.18 feet to a point for corner; THENCE North 60°16'36" East, continuing along said south right -of-way line, a distance of 39.88 feet to a point for corner; THENCE South 74°12'01" East, continuing along said south right -of-way line, a distance of 70.70 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right -of-way line, a distance of 64.12 feet to a point for corner; THENCE North 15°47'17" East, continuing along said south right -of-way line, a distance of 73.27 feet to a point for corner; 135 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 2 1775.016\1053550.5 THENCE North 59°04'32" East, continuing along said south right -of-way line, a distance of 94.25 feet to a point for corner; THENCE North 55°39'04" East, continuing along said south right -of-way line, a distance of 100.40 feet to a point for corner; THENCE North 47°37'54" East, continuing along said south right -of-way line, a distance of 114.18 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right -of-way line, a distance of 3800.00 feet to a point for corner; THENCE North 65°20'10" East, continuing along said south right -of-way line, a distance of 189.41 feet to a point for corner; THENCE North 61°56'23" East, continuing along said south right -of-way line, a distance of 100.02 feet to a point for corner; THENCE North 63°39'23" East, continuing along said south right -of-way line, a distance of 100.12 feet to a point for corner; THENCE North 64°47'53" East, continuing along said south right -of-way line, a distance of 100.24 feet to a point for corner; THENCE North 66°30'16" East, continuing along said south right -of-way line, a distance of 201.00 feet to a point for corner; THENCE North 65°56'12" East, continuing along said south right -of-way line, a distance of 100.40 feet to a point for corner; THENCE North 66°30'16" East, continuing along said south right -of-way line, a distance of 100.50 feet to a point for corner; THENCE North 63°05'04" East, continuing along said south right -of-way line, a distance of 100.08 feet to a point for corner; THENCE North 64°13'39" East, continuing along said south right -of-way line, a distance of 100.18 feet to a point for corner; THENCE North 83°05'27" East, continuing along said south right -of-way line, a distance of 69.58 feet to a point for corner; THENCE North 60°39'18" East, continuing along said south right -of-way line, a distance of 33.81 feet to a point for corner, said point being in the west right-of-way line of Burlington Northern Railroad (having a variable width R.O.W.); THENCE North 60°38'52" East, leaving said west right-of-way line, a distance of 107.30 feet to a point for corner, said point being in the east right-of-way line of said Burlington Northern Railroad; THENCE North 60°45'58" East, leaving said east right-of-way line, continuing along said south right -of-way line of State Highway 121, a distance of 254.35 feet to a point for corner; THENCE North 63°19'02" East, continuing along said south right-of-way line, a distance of 585.96 feet to a point for corner; THENCE North 60°52'09" East, continuing along said south right -of-way line, a distance of 369.37 feet to a point for corner, said point being in the west right-of-way line of West Spring Creek Parkway (having a 160 ft R.O.W.); THENCE South 29°24'43" East, leaving said south right -of-way line, and along said west right-of-way line, a distance of 265.52 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 970.00 feet and a central angle of 29°13'42", and a long chord which bears South 14°53'13" East, 489.48 feet; THENCE continuing along said west right-of-way line, and along said non-tangent curve to the right an arc distance of 494.83 feet to a point for corner; THENCE South 00°22'42" East, continuing along said west right -of-way line, a distance of 476.17 feet to a point for corner; 136 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 3 1775.016\1053550.5 THENCE South 00°23'35" East, continuing along said west right -of-way line, a distance of 864.92 feet to a point for corner, said point being in the north line of Kings Ridge Addition, Phase Three, as recorded in Cabinet X, Page 450, Plat Records, Denton County, Texas; THENCE South 89°40'20" West, leaving said west right -of-way line, and along said north line, a distance of 1199.93 feet to a point for corner, said point being in the east right -of-way line of said Burlington Northern Railroad; THENCE North 87°39'44" West, leaving said north line, leaving said east right-of-way line, a distance of 101.16 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 3703.75 feet and a central angle of 3°44'19" and a long chord which bears South 04°12'25" West, 241.62 feet, said point being in the west right- of-way line of said Burlington Northern Railroad; THENCE along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 241.67 feet to a point for corner; THENCE South 06°04'35" West, continuing along said east right-of-way line, a distance of 2524.64 feet to a point for corner; THENCE North 83°17'00" West, continuing along said east right-of-way line, a distance of 190.16 feet to a point for corner; THENCE South 00°51'51" East, continuing along said east right-of-way line, a distance of 970.10 feet to a point for corner; THENCE South 89°03'50" West, continuing along said east right -of-way line, a distance of 31.06 feet to a point for corner; THENCE South 01°14'37" East, continuing along said east right-of-way line, a distance of 447.78 feet to a point for corner; THENCE North 87°06'22" West, leaving said east right -of-way line, a distance of 1240.48 feet to a point for corner, for the beginning of a non-tangent curve to the left having a radius of 1130.00 feet and a central angle of 103°16'58", and a long chord which bears North 38°43'34" West, 1772.16 feet, said point being in the east right -of-way line of said Plano Parkway; THENCE along said east right-of-way line, and along said non-tangent curve to the left an arc distance of 2036.97 feet to a point for corner; THENCE South 89°38'05" West, continuing along said east right-of-way line, a distance of 647.23 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 950.00 feet and a central angle of 40°05'36" and a long chord which bears North 70°19'29" West, 651.29 feet; THENCE continuing along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 664.77 feet to a point for corner, for the beginning of a reverse curve to the left having a radius of 1050.00 feet and a central angle of 40°15'06" and a long chord which bears North 70°25'01" West, 722.57 feet; THENCE continuing along said east right -of-way line, and along said curve to the left an arc distance of 737.65 feet to a point for corner; THENCE South 89°31'25" West, continuing along said east right-of-way line, a distance of 623.83 feet to a point for corner, for the beginning of a tangent curve to the right having a radius of 950.00 feet, a central angle of 0°48'07", and a long chord which bears South 89°55'28" West, 13.21 feet; THENCE continuing along said east right-of-way line, along said curve to the right, an arc distance of 13.21 feet to a point for corner; THENCE South 00°19'22" West, leaving said east right-of-way line, a distance of 100.00 feet to a point for corner, said point being in the west right-of-way line of said Plano Parkway; THENCE South 89°58'40" West, leaving said west right-of-way line, a distance of 1210.45 feet to a point for corner; THENCE North 00°25'18" West, a distance of 226.47 feet to the POINT OF BEGINNING and CONTAINING 19,128,279 square feet, 439.12 acres of land, more or less. 137 Exhibit A-1 Depiction of the Property Exhibit A-1 to The Colony SAP – Depiction of the Property - Page 1 1775.016\1053550.5 138 EXHIBIT B Exhibit B to The Colony SAP – Official Report - Public Improvement Cost - Page 1 1775.016\1053550.5 OFFICIAL REPORT 2024 PUBLIC IMPROVEMENTS COST The City of The Colony Public Improvement District No. 1 The Colony, Texas PREPARED BY: Jeremie Maurina, Executive Business Liaison DATED: August 19th, 2025 139 Exhibit B Exhibit B to The Colony SAP – Official Report - Public Improvements Cost - Page 2 1775.016\1053550.5 Official Report - Public Improvements Cost1 Public Improvements Facility Waterfront Related Development TOTALS Enhanced Traffic Services $49,882.71 $0 $0 $49,882.71 Enhanced Police Services $2 68,784.65 $0 $0 $268,784.65 Special Supplemental Services2 $295,333.0 3 $45,107.8 9 $371,759.08 $712,200.00 Lake Maintenance $12,025.64 $1,836.74 $15,137.62 $29,000.00 TOTALS $626,026.03 $46,944.63 $386,896.70 $1,059,867.36 1 Costs shown do not include costs related to 90 days of operating costs or costs related to Direct Supplemental Services. See Exhibit D (Special Benefits Reports) for information about these costs. 2 Special Supplemental Services include contractual services related to health and sanitation, water and wastewater, landscaping, and operation of the PID. 140 Exhibit C-1 Service Plan: Five-Year Projection of Annual Indebtedness Related to 2013 Facility Public Improvements Exhibit C-1 to The Colony SAP - Projection of Annual Indebtedness Related to 2013 Facility Public Improvements Cost - Page 1 1775.016\1053550.5 Year Principal1 Semi-Annual Collection Costs2 Delinquent Collection Costs3 Annual Administrative Costs4 Estimated Annual Indebtedness 2025 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2026 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2027 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2028 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2029 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 1. See Section 7, Paragraph 1 for the outstanding Principal Amount of the 2013 Facility Public Improvement Assessment as of September 7th, 2021. The annual indebtedness for the 2013 Public Improvements Cost in any given year is the sum of the Semi-Annual Installments for the Project Infrastructure Bonds for the year. 2. Semi-Annual Collection Costs may be increased or reduced as part of each Service Plan Update. If the Semi-Annual Collection Costs collected are less than the Semi-Annual Collection Costs paid or incurred, the deficit may be carried forward and added to the Semi-Annual Collection Costs for the next year or paid as Semi-Annual Administrative Costs. If the Semi-Annual Collection Costs collected exceed the Semi-Annual Collection Costs paid or incurred, the excess shall be carried forward to reduce the Semi -Annual Collection Costs for the next year. Semi-Annual Collection Costs shall be allocated pro rata among all Parcels with unpaid Assessments. 3. This exhibit includes no Delinquent Collection Costs. The actual amount of Delinquent Collection Costs attributabl e to a Parcel will, if not paid upon demand, be added to the Semi-Annual Installment for the Parcel as part of the Service Plan Update for the next year. If Delinquent Collection Costs remain unpaid, they will continue to be added to the Semi-Annual Installment for the Parcel as part of the Service Plan Update for the next year. 4. Semi-Annual Administrative Costs (up to the maximum amount determined by the additi onal interest authorized by Section 372.018(a) of the Act) are estimated and may be increased or reduced as part of each Service Plan Update. If the Semi-Annual Administrative Costs collected are not enough to pay the Semi-Annual Administrative Costs paid or incurred, the deficit may be carried forward and added to the Semi-Annual Administrative Costs for the next year. If the Semi-Annual Administrative Costs collected exceed the Semi-Annual Administrative Costs paid or incurred, the excess shall be carried forward to reduce the Semi-Annual Administration Costs for the next year. Semi-Annual Administrative Costs shall be allocated pro rata among all Parcels with unpaid Assessments. 141 Exhibit C-2 Service Plan: Five-Year Projection of Annual Indebtedness Related to Additional Facility Public Improvements1 Exhibit C-2 to The Colony SAP - Projection of Annual Indebtedness Related to Additional Facility Public Improvements Cost - Page 1 1775.016\1053550.5 2025 2026 2027 2028 2029 $626,026 $657,327 $ 690,194 $ 724,703 $ 760,939 _______________________________ 1 Costs shown do not include costs related to 90 days of operating costs or costs related to Direct Supplemental Services. See Exhibit D (Special Benefits Reports) for information about these costs. 142 Exhibit C-3 to The Colony SAP - Projection of Annual Indebtedness Related to Annual Related Development Public Improvements Cost - Page 1 1775.016\1053550.5 Exhibit C-3 Service Plan: Five-Year Projection of Annual Indebtedness Related to Annual Related Development Public Improvements1 2024 2025 2026 2027 2028 $433,841 $455,533 $478,310 $502,226 $527,337 1 Costs shown do not include costs related to 90 days of operating costs or costs related to Direct Supplemental Ser vices. See Exhibit D (Special Benefits Reports) for information about these costs. 143 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 1 1775.016\1053550.5 FORM OF NOTICE REQUIRED BY TEXAS PROPERTY CODE SECTION 5.014 Effective September 1, 2021, Texas Property Code §5.014 requires a seller of any real property located in a public improvement district to give notice TWICE to the purchaser of the purchaser's obligation to pay the PID assessment in the form required under Texas Property Code §5.014, as amended. Section 5.0141 of the Texas Property Code requires the "First Notice" below to be given to a prospective purchaser BEFORE the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. AT CLOSING, Section 5.0143 of the Texas Property Code requires a separate copy of the "Second Notice" below, with current information, to be executed by the seller and purchase, acknowledged and recorded in the deed records of the county in which the property is located. FIRST NOTICE: NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENTS TO THE CITY OF THE COLONY, TEXAS CONCERNING THE PROPERTY AT: [INSERT STREET ADDRESS] As the purchaser of the real property described above, you are obligated to pay assessments to the City of The Colony, Texas for the costs of a portion of a public improvement or services project (the “Authorized Improvements”) undertaken for the benefit of the property within “City of The Colony Public Improvement District No. 1” (the “District”) created under Subchapter A, Chapter 372, Local Government Code, as amended. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS WHICH WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of The Colony, Texas. The exact amount of each annual installment will be approved each year by the City Council of The Colony, Texas in the Annual Service Plan Update for the District. More information about the assessments, including the amounts and due dates, may be obtained from the City of The Colony, Texas. YOUR FAILURE TO PAY ANY ASSESSMENT, OR ANY ANNUAL INSTALLMENT THEREOF, MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE OR IN A LIEN ON AND THE FORECLOSURE OF YOUR PROPERTY. 144 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 2 1775.016\1053550.5 The undersigned purchaser acknowledges receipt of this notice prior to the effective date of a binding contract for the purchase of the real property at the street address set forth above. [PURCHASER] By: Name: Date: [PURCHASER] By: Name: Date: The undersigned seller executes this notice pursuant to Texas Property Code Section 5.014(a-1), as amended, before the effective date of a binding contract for purchase of the real property at the address described above. [SELLER] By: Name: Date: 145 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 3 1775.016\1053550.5 SECOND NOTICE AFTER RECORDING RETURN TO: [INSERT SELLER NAME AND ADDRESS] NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENTS TO THE CITY OF THE COLONY, TEXAS CONCERNING THE PROPERTY AT: [INSERT STREET ADDRESS] As the purchaser of the real property described above, you are obligated to pay assessments to the City of The Colony, Texas for the costs of a portion of a public improvement or services project (the “Authorized Improvements”) undertaken for the benefit of the property within “City of The Colony Public Improvement District No. 1” (the “District”) created under Subchapter A, Chapter 372, Local Government Code, as amended. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS WHICH WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of The Colony, Texas. The exact amount of each annual installment will be approved each year by the City Council of The Colony, Texas in the Annual Service Plan Update for the District. More information about the assessments, including the amounts and due dates, may be obtained from the City of The Colony, Texas. YOUR FAILURE TO PAY ANY ASSESSMENT, OR ANY ANNUAL INSTALLMENT THEREOF, MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE OR IN A LIEN ON AND THE FORECLOSURE OF YOUR PROPERTY. The undersigned purchaser acknowledges receipt of this notice prior to the effective date of a binding contract for the purchase of the real property at the street address set forth above. [SIGNATURE PAGES FOLLOW] 146 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 4 1775.016\1053550.5 IN WITNESS WHEREOF, the undersigned parties have executed this notice at the closing of the purchase of the real property at the address described above and for the purposes stated therein. [PURCHASER] By: Name: Date: STATE OF TEXAS § § COUNTY OF DENTON § This instrument was acknowledged before me by ______________________, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [SEAL] [PURCHASER] By: Name: Date: STATE OF TEXAS § § COUNTY OF DENTON § This instrument was acknowledged before me by ______________________, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [SEAL] 147 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 5 1775.016\1053550.5 The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. [SELLER] By: Name: Date: STATE OF TEXAS § § COUNTY OF DENTON § This instrument was acknowledged before me by ______________________, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [SEAL] 148 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 1 1775.016\1053550.5 Exhibit D Special Benefits Report The City of The Colony Public Improvement District No. 1 The Colony, Texas PREPARED BY: Jeremie Maurina, Executive Business Liaison DATED: August 19th, 2025 149 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 2 1775.016\1053550.5 The Facility is expected to generate eight million customers each year. Given the traffic and security needs of the Facility, above those provided as part of the City's basic municipal services, one hundred percent (100%) of the Public Improvements for: (1) the enhanced traffic management services consisting of a portion of the salary for a dedicated signal technician (the "Enhanced Traffic Services") and (2) the enhanced police services consisting of the salaries of [two (2) additional police officers, including benefits] (the "Enhanced Police Services") are attributable to the Facility Property. The Facility Property is a single economic unit comprised of two tax parcels. The Public Improvements Costs consisting of the Enhanced Traffic Services and Enhanced Police Services are allocated to the two tax parcels based on acreage. In previous years, the City levied assessments related to traffic management system costs, traffic control equipment, and certain road and street improvements for the special benefit of property within the PID; however, there are no such improvements anticipated for the 2025-2026 fiscal year. During the development related to the Additional Facility Assessments and Related Development Assessments described in the 2018 Annual Service Plan Update, a series of "Enhanced Development Services" (now defined as "Direct Supplemental Services") were identified that provided specific benefits to several individual parcels. Due to the nature of these supplemental services and the scope they cover, they are not easily forecasted for inclusion in a budget. Instead, beginning with the 2019 Annual Service Plan Update, these costs have been estimated annually and directly assessed to the benefitted parcels (See Exhibit E for adjusted assessments for the current year). This provides a more accurate assessment and allows the costs of those services to be recovered from the properties that have directly benefited from them. The total estimated cost of these services is $17,910.00 for the 2025-26 assessment. Additionally, the City retains a reserve of an estimated 90 days of operating costs calculated based on the annual budget for the Public Improvements. The 90 days of operating costs are apportioned to the Facility Property, Waterfront Property and Related Development Property based on the percentages described below. Table D-1 below shows the special benefits analysis. The costs for the Enhanced Traffic Services and the Enhanced Police Services shown below are allocated 100% to the Facility Property. The costs for the Special Supplemental Services and Lake Maintenance are allocated on a per-acre basis to the Facility Property, the Waterfront Property and the Related Development Property such that the Facility Property is apportioned approximately 41.66 percent (107.47 Facility Property/257.939495 total acres); the Waterfront Property is apportioned approximately 6.36 percent (16.421 Waterfront Property/257.939495 total acres); and the Related Development Property is apportioned approximately 51.97 percent (134.054995 Related Development Property/257.939495 total acres). [Remainder of page left blank intentionally.] 150 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 1 1775.016\1053550.5 2025-26 Public Improvement Costs Description of Public Improvements Total Estimated Cost Cost Allocated to Facility Property Cost Allocated to Waterfront Property Cost Allocated to Related Development Property Enhanced Traffic Services $49,882.71 $49,882.71 $0 $0 Enhanced Police Services $268,784.65 $268,784.65 $0 $0 Special Supplemental Services $712,200.00 $295,333.03 $45,107.89 $371,759.08 Lake Maintenance $29,000.00 $12,025.64 $1,836.74 $15,137.62 PUBLIC IMPROVEMENT TOTALS $1,059,867.36 $626,026.03 $46,944.63 $386,896.70 90 Days Operating Cost Reserve $261,337.00 $108,370.54 $16,552.04 $136,414.57 Direct Supplemental Services $0 $0 $0 $17,910.00 TOTALS1 $1,321,205.36 $734,396.57 $63,496.67 $541,221.27 1 Costs shown are before any excess or deficit from the previous year is applied. 151 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 1 1775.016\1053550.5 2025-26 Public Improvement Costs Benefit Allocation Public Improvements TOTALS Special Benefit to Facility Property Special Benefit to Waterfront Property Special Benefit to Related Development Property Enhanced Traffic Services $49,882.71 100% 0 0% Enhanced Police Services $268,784.65 Special Supplemental Services $712,200.00 41.47% 6.33% 52.2% Lake Maintenance $29,000.00 41.47% 6.33% 52.2% TOTALS $1,059,867.36 90 Days Operating Cost Reserve $261,337.16 41.47% 6.33% 52.2% Direct Supplemental Services $17,910.00 0% 0% 100% TOTALS $1,339,114.52 152 Exhibit E Assessment Roll Exhibit E to The Colony SAP – Assessment Roll - Page 1 1775.016\1053550.5 1. Outstanding 2013 Facility Public Improvement Assessment levied against Facility Property consisting of Tax Parcels No. 657618 and 657619 is $70,879,364.46. 2. Assessment Roll for Additional Facility Public Improvements, Waterfront Public Improvements and Related Development Public Improvements as levied by the 2025 Assessment Ordinance: Tax Parcel Assessment Facility Property ($583,969.62) #657618 – 81.99 acres ~76.29% $445,623.29 #657619 – 25.48 acres ~23.71% $138,346.33 Waterfront Property ($40,452.38) #957987 – 13.774 acres~83.91% $33,945.06 #704832 – 0.675 acres~4.11% $1,663.49 #957988 - .506 acres ~3.08% $1,247.00 #957989 – 0.2976 acres ~1.81% $733.41 #957990 – 0.2717 acres ~ 1.66% $669.59 #957991 – 0.4838 acres ~ 2.95% $1,192.29 #957992 – 0.4064 acres ~ 2.48% $1,001.54 Related Development Property ($350,850.51) #692390 – 2.015 acres ~ 1.49% $4,965.83 #692391 – 2.105 acres ~ 1.56% $5187062 #653843 – 2.944 acres ~ 2.18% $7,345.28 #653844 – 2.683 acres ~ 1.98% $6,612.07 #674231 – 3.386 acres ~ 2.50% $8,344.56 #692387 – 1.903 acres ~ 1.41% $4,779.81 #692388 – 0.301 acres ~ 0.22% $741.79 #692379 – 2.931 acres ~2.17% $7,223.24 #692380 – 0.204 acres ~ 0.15% $502.74 #732382 – 8.551 acres ~ 6.32% $21,073.34 #748393 – 79.089 acres ~ 58.46% $202,650.15 #753491 – 5.839 acres ~ 4.32% $14,389.52 #753492 – 1.574 acres ~ 1.16% $3,878.42 #674218-3.645 acres ~2.69% $10,512.85 153 Exhibit E Assessment Roll Exhibit E to The Colony SAP – Assessment Roll - Page 2 1775.016\1053550.5 #692389-1.925 acres ~1.42% $4,744.03 #1004631- 1.029 acres ~0.76% $3,615.90 #1003642- 3.581 acres ~2.65% $14,405.12 #1015683- 10.35 acres ~7.65% $25,596.85 #1004633- 1.226 acres ~0.91% $4,281.39 154 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 1 1775.016\1053550.5 155 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 2 1775.016\1053550.5 156 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 3 1775.016\1053550.5 157 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 4 1775.016\1053550.5 158 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 5 1775.016\1053550.5 159 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 6 1775.016\1053550.5 160 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 7 1775.016\1053550.5 161 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 8 1775.016\1053550.5 162 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 9 1775.016\1053550.5 163 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 10 1775.016\1053550.5 164 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 11 1775.016\1053550.5 165 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 12 1775.016\1053550.5 166 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 13 1775.016\1053550.5 167 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 1 1775.016\1053550.5 Below is a summary of prior legislative actions of the City Council for the District, including the levy of all Assessments against benefitted property within the District. This Exhibit F shall be updated with each Annual Service Plan Update. Items marked with an (**) were validated as part of the matter styled Ex Parte City of The Colony in the 53rd District Court of Travis County, Texas (the "Bond Validation Suit") for which a Final Judgment was issued on January 18, 2012. September 17, 2012**  Landowner petition ("PID Creation Petition") for the establishment of the District is submitted to the City and filed with the City Secretary. September 18, 2012  City Council approved Resolution No. 2012-067 accepting the PID Creation Petition and calling a public hearing on the creation of the District for October 8, 2012. September 21, 2012**  Notice of "City of The Colony, Texas, Notice of Public Hearing Regarding the Proposed Establishment of City of The Colony Public Improvement District No. 1" is mailed to "Property Owners" as required by the Act. September 22, 2012**  Notice of "City of The Colony, Texas, Notice of Public Hearing Regarding the Proposed Establishment of City of The Colony Public Improvement District No. 1" is published in the Denton Record Chronicle as required by the Act. September 26, 2012**  City Council by motion accepts and approves PID Creation Petition, waiver of the 15-day notice for the public hearing on the creation of the District to be held on October 8, 2012, and waiver of the 20-day protest period for the commencement of construction of the Authorized Improvements. October 8, 2012**  After considering all written and documentary evidence presented at the public hearing described above, City Council approved Resolution No. 2012-073 authorizing the creation of the District. October 9, 2012**  Publication of Resolution No. 2012-073 authorizing the creation of the District as required by the Act. December 11, 2012  City Council approved Resolution No. 2012-100 accepting a preliminary service and assessment plan, proposed assessment roll and proposed reimbursement agreement for the District and calling a public hearing ("2013 Assessment Hearing") for January 15, 2013 to consider an ordinance levying assessments on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. December 17, 2012**  Notice of "City of The Colony, Texas, Notice of Public Hearing on Assessment Ordinance for the City of The Colony Public Improvement District No. 1" is mailed to "Property Owners" as required by the Act. December 19, 2012**  Notice of "City of The Colony, Texas, Notice of Public Hearing on Assessment Ordinance for the City of The Colony Public Improvement District No. 1" is published in the Denton Record Chronicle as required by the Act. January 15, 2013  City Council conducted the 2013 Assessment Public Hearing and approved a motion to continue the 2013 Assessment Public Hearing to February 7, 2013. 168 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 2 1775.016\1053550.5 February 7, 2013**  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2013-1992, recorded as Instrument No. 2013-20487 in the real property records of Denton County, Texas (the “2013 Assessment Ordinance”), which (i) approved and accepted the “City of The Colony, Texas, Public Improvement District No. 1 Service and Assessment Plan” dated February 7, 2013 (the “Original Service and Assessment Plan”), (ii) levied the 2013 Facility Public Improvement Assessment against the Facility Property for the 2013 Public Improvements as shown on the Assessment Roll attached as Exhibit G to the Original Service and Assessment Plan, and (iii) deferred levying the 2013 Related Development Deferred Assessment for the portion of the 2013 Public Improvements Cost that specially benefits the Related Development Property.  City Council approved Resolution No 2013-008 approving the 2013 LGC Sales Tax Bonds, the 2013A LGC Sales Tax Bonds, and the 2013 LGC Tax Bonds and approving the 2013 LGC Sales Tax Bonds Reimbursement Agreement and the 2013 LGC Tax Bonds Reimbursement Agreement.  City Council approved Resolution No. 2013-009 approving the 2013 Type A Bonds and approving the 2013 Type A Bonds Reimbursement Agreement.  City Council approved Resolution No. 2013-010 approving the 2013 Type B Bonds and approving the 2013 Type B Bonds Reimbursement Agreement. April 21, 2015  City Council approved Resolution No. 2015-042 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2015 Annual Service and Assessment Plan, dated March 17, 2015, including proposed assessment roll for the District and calling a public hearing ("2015 Assessment Public Hearing") for May 5, 2015 to consider an ordinance levying assessments in the aggregate amount of $1,379,301.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. May 5, 2015  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2015 Assessment Public Hearing.  After considering all written and documentary evidence presented at the duly noticed public hearing described above, the City Council approved Ordinance No. 2015-2136 (the "2015 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2015 Annual Service and Assessment Plan, dated May 5, 2015 (the "2015 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,379,301 consisting of: (i) $959,247.96 against the Facility Property for costs of Additional Facility Public Improvements (the "2015 Facility Assessment"), (ii) $369,143.53 for Boardwalk Public Improvement Costs (as defined in the 2015 Annual Service Plan Update) and $50,909.51 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $420,053.04 amount is referred to as the "2015 Related Development Assessment") August 18, 2015  City Council approved Resolution No. 2015-066 accepting the City of The Colony Public Improvement District No. 1 Preliminary 20152016 Annual Service and Assessment Plan, dated August 13, 2015, including proposed assessment roll for the District, and calling a public hearing ("2015-16 Assessment Public Hearing") for September 1, 2015 to consider an ordinance levying assessments in the aggregate amount of $1,454,992.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. 169 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 3 1775.016\1053550.5 September 15, 2015  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2015-16 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2015-2160 (the "2015 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2015/2016 Annual Service and Assessment Plan, dated August 13, 2015 and amended September 14, 2015 (the "2015/2016 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,454,992 consisting of: (i) $1,218,234.83 against the Facility Property for costs of Additional Facility Public Improvements (the "2015 Facility Assessment"), (ii) $148,428.69 for Boardwalk Public Improvement Costs (as defined in the 2015 Annual Service Plan Update) and $88,328.48 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $236,757.17 amount is referred to as the "2015 Related Development Assessment") August 16, 2016  City Council approved Resolution No. 2016-049 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2016/2017 Annual Service and Assessment Plan, dated August 10, 2016, including proposed assessment roll for the District, and calling a public hearing ("2016 Assessment Public Hearing") for September 6, 2016 to consider an ordinance levying assessments in the aggregate amount of $1,162,836.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 6, 2016  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2016 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2016-2232 (the "2016 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2016/2017 Annual Service and Assessment Plan, dated August 10, 2016 and amended August 29, 2016 (the "2016 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,162,836.00 consisting of: (i) $875,155.64 against the Facility Property for costs of Additional Facility Public Improvements (the "2016 Facility Assessment"), (ii) $120,673.24 for Boardwalk Public Improvement Costs (as defined in the 2016 Annual Service Plan Update) and $167,007.12 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $287,681.36 amount is referred to as the "2016 Related Development Assessment"). September 5, 2017  City Council approved Resolution No. 2017-078 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2017/2018 Annual Service and Assessment Plan, dated August 16, 2017, including proposed assessment roll for the District, and calling a public hearing ("2017 Assessment Public Hearing") for September 19, 2017 to consider an ordinance levying assessments in the aggregate amount of $1,531,458.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. 170 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 4 1775.016\1053550.5 September 19, 2017  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2017 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2017-2283 (the "2017 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2017/2018 Annual Service and Assessment Plan, dated August 16, 2017 and amended September 11, 2017 (the "2017 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,531,458 consisting of: (i) $658,465 against the Facility Property for costs of Additional Facility Public Improvements (the "2017 Facility Assessment"), (ii) $402,978 for Waterfront Public Improvement Costs (as defined in the 2017 Annual Service Plan Update) and $470,015 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $872,993 amount is referred to as the "2017 Related Development Assessment"). August 21, 2018  City Council approved Resolution No. 2018-071 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2018/2019 Annual Service and Assessment Plan, dated August 16, 2018, including proposed assessment roll for the District, and calling a public hearing ("2018 Assessment Public Hearing") for September 18, 2018 to consider an ordinance levying assessments in the aggregate amount of $1,497,805.98 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 18, 2018  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2018 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2018-2235 (the "2018 Assessment Ordinance") which approved the City of The Colony Public Improvement District No.1 2018/2019 Annual Service and Assessment Plan, dated September 12, 2018 (the "2018 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,497,805.98 consisting of: (i) $810,379.62 against the Facility Property for costs of Additional Facility Public Improvements (the "2018 Facility Assessment"), (ii) $83,293.66 for Waterfront Public Improvement Costs (as defined in the 2018 Annual Service Plan Update) and $604,132.70 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $687,426.36 amount is referred to as the "2018 Related Development Assessment"). August 20, 2019  City Council approved Resolution No. 2019-065 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2019/2020 Annual Service and Assessment Plan, dated August 15, 2019, including proposed assessment roll for the District, and calling a public hearing ("2019 Assessment Public Hearing") for September 17, 2019 to consider an ordinance levying assessments in the aggregate amount of $1,061,109.02 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. 171 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 5 1775.016\1053550.5 September 17, 2019  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2019 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2019-2376 (the "2019 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2019/2020 Annual Service and Assessment Plan, dated September 17, 2019 (the "2019 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,061,109.02 consisting of: (i) $570,667.99 against the Facility Property for costs of Additional Facility Public Improvements (the "2019 Facility Assessment"), (ii) $49,965.50 for Waterfront Public Improvement Costs (as defined in the 2019 Annual Service Plan Update) and $440,475.53 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $490,441.03 amount is referred to as the "2019 Related Development Assessment"). August 5, 2020  City Council approved Ordinance No. 2020-2407 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2020/2021 Annual Service and Assessment Plan, dated August 13, 2020, including proposed assessment roll for the District, and calling a public hearing ("2020 Assessment Public Hearing") for September 15, 2020 to consider an ordinance levying assessments in the aggregate amount of $1,061,109.02 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 15, 2020  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2020 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2020-2407 (the "2020 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2020/2021 Annual Service and Assessment Plan, dated September 15, 2020 (the "2020 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,061,109.02 consisting of: (i) $570,667.99 against the Facility Property for costs of Additional Facility Public Improvements (the "2020 Facility Assessment"), (ii) $49,965.50 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2020 Assessment Ordinance) and $440,475.53 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $490,441.03 amount is referred to as the "2020 Related Development Assessment"). January 19, 2021  City Council approved Ordinance No. 2021-2430 approving an Approving an Amended and Restated Service and Assessment Plan for the District, Including Assessment Roll for The City of The Colony Public Improvement District No. 1.  City Council approved Resolution No. 2021-006 approving and Consenting to The Colony Local Development Corporation Tax Increment Contract Revenue Refunding Bonds (Nebraska Furniture Mart Texas Project) Taxable Series 2021. 172 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 6 1775.016\1053550.5 August 17th, 2021  City Council approved Resolution No. 2021-053 accepting the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2021 to September 30, 2022), dated August 13, 2021, including proposed assessment roll for the District, and calling a public hearing ("2021 Assessment Public Hearing") for September 7, 2021 to consider an ordinance levying assessments in the aggregate amount of $902,327on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 7th, 2021  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2021 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2021-2449 (the "2021 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2021 to September 30, 2022), dated September 7, 2021 (the "2021 Annual Service Plan Update") and levied Assessments in the aggregate amount of $902,327 consisting of: (i) $535,879.94 against the Facility Property for costs of Additional Facility Public Improvements (the "2021 Facility Assessment"), (ii) $41,034.82 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2021 Assessment Ordinance) and $325,412.13 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $366,446.95 amount is referred to as the "2021 Related Development Assessment"). The 2021 Assessment Ordinance was recorded as Document No. 168472 on September 14th, 2021 in the Real Property Records of Denton County. August 16th, 2022  City Council approved Resolution No. 2022-054 accepting the City of The Colony Public Improvement District No. 1 Preliminary Annual Service and Assessment Plan Update (Assessment Year October 1, 2022 to September 30, 2023), dated August 14th, 2022, including proposed assessment roll for the District, and calling a public hearing ("2022 Assessment Public Hearing") for September 6, 2022 to consider an ordinance levying assessments in the aggregate amount of $1,304,422 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. October 18th, 2022  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2022 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2022-2491 (the "2022 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2022 to September 30, 2023), dated August 14, 2022 (the "2022 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,304,421.76 consisting of: (i) $731,985.36 against the Facility Property for costs of Additional Facility Public Improvements (the "2022 Facility Assessment"), (ii) $68,245.18 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2022 Assessment Ordinance) and $504,191.22 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $572,436.40 amount is referred to as the "2021 Related Development Assessment"). The 2022 Assessment Ordinance was recorded as Document No. 149037 on October 21st, 2022 in the Real Property Records of Denton County. 173 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 7 1775.016\1053550.5 August 15th, 2023  City Council approved Resolution No. 2023-057 accepting the City of The Colony Public Improvement District No. 1 Preliminary Annual Service and Assessment Plan Update (Assessment Year October 1, 2023 to September 30, 2024), dated August 15, 2023, including proposed assessment roll for the District, and calling a public hearing ("2023 Assessment Public Hearing") for September 5th, 2023 to consider an ordinance levying assessments in the aggregate amount of $1,335,447 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 19th, 2023  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2023 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2023-2535 (the "2023 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Preliminary Annual Service and Assessment Plan Update (Assessment Year October 1, 2023 to September 30, 2024), dated September 19, 2023 (the "2023 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,335,447 consisting of: (i) $691,853.18 against the Facility Property for costs of Additional Facility Public Improvements (the "2023 Facility Assessment"), (ii) $61,601.36 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2023 Assessment Ordinance) and $581,992.92 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $643,594.28 amount is referred to as the "2023 Related Development Assessment"). The 2023 Assessment Ordinance was recorded as Document No. 101705 on September 20th, 2023 in the Real Property Records of Denton County. September 3rd , 2024  City Council approved Resolution No. 2024-065 accepting the City of The Colony Public Improvement District No. 1 Preliminary Annual Service and Assessment Plan Update (Assessment Year October 1, 2024 to September 30, 2024), dated September 3rd , 2024, including proposed assessment roll for the District, and calling a public hearing ("2024 Assessment Public Hearing") for September 17th, 2024 to consider an ordinance levying assessments in the aggregate amount of $1,100,261 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 17th, 2024  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2024 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2024-2578 (the "2024 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2024 to September 30, 2024), dated September 19, 2024 (the "2024 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,100,261 consisting of: (i) $613,682.54 against the Facility Property for costs of Additional Facility Public Improvements (the "2024 Facility Assessment"), (ii) $47,719.48 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2024 Assessment Ordinance) and $438,858.56 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $486,578.04 amount is referred to as the "2024 Related Development Assessment"). The 2024 Assessment Ordinance was recorded as Instrument No. 101428 on September 19, 2024 in the Real Property Records of Denton County. 174 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 8 1775.016\1053550.5 [August 19th , 2025]  City Council approved Resolution No. 2025-092 accepting the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2025 to September 30, 2026), dated August 19th ,2025], including proposed assessment roll for the District, and calling a public hearing ("2025 Assessment Public Hearing") for August 19, 2025 to consider an ordinance levying assessments in the aggregate amount of $975,272.51 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 16th, 2025  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2025 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. XXXXXXX (the "2025 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2025 to September 30, 2026), dated [________ ,2025] (the "2025 Annual Service Plan Update") and levied Assessments in the aggregate amount of [$_______] consisting of: (i) [$_______] against the Facility Property for costs of Additional Facility Public Improvements (the "2025 Facility Assessment"), (ii) [$_______] for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2025 Assessment Ordinance) and [$_______] for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate [$_______] amount is referred to as the "2025 Related Development Assessment"). The 2025 Assessment Ordinance was recorded as Instrument No. [_______] on [_______], 2025 in the Real Property Records of Denton County. 175 Agenda Item No: 5.5 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 2025 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Resolution Agenda Section: regular agenda items Suggested Action: Discuss and consider approving a resolution casting the city's votes for nominees to serve on the Denton Central Appraisal District Board of Directors for a one-year or three-year term beginning January 1, 2026. (Council) Background: Attachments: M E M O -2025 Board of Directors' Election Nomination Letter to Entities (1).pdf Res. 2025-xxx DCAD Board of Directors Vote.doc 176 M E M O TO: Participating Taxing Entities of Denton County FROM: Don Spencer, Chief Appraiser SUBJECT: Request for Nominations for DCAD Board of Directors (Places 4 & 7) DATE: August 8, 2025 In accordance with Section 6.03(g) of the Texas Property Tax Code, each taxing entity entitled to vote in the election of appraisal district directors is hereby notified of its responsibility to submit nominations for the upcoming Denton Central Appraisal District (DCAD) Board of Directors election. Open Positions ● Place 4 – currently held by Ann Pomykal (Vice Chair) ● Place 7 – currently held by Mike Hennefer Each taxing entity may nominate one individual per open place, for a total of up to two nominees. Nominations must be submitted by written resolution before October 15, 2025. Please include the full name and contact information for each nominee. The District will send a short questionnaire to each nominee to provide additional information to the voting entities. 2025 Board Nomination & Appointment Calendar ● By October 1 – Chief Appraiser will provide each taxing entity its allocated number of votes for the Board election. ● Before October 15 – Each entity must submit adopted resolution(s) nominating up to two individuals. 177 ● Before October 30 – The Chief Appraiser will compile and distribute the list of nominees in the form of an official ballot. ● Before December 15 – Taxing entities may cast their votes by resolution.  Note: Per Section 6.03(k-1), any taxing entity entitled to cast at least five percent of the total votes must determine its vote by resolution adopted at the first or second open meeting of its governing body after receipt of the ballot, and must submit its vote to the Chief Appraiser no later than the third day following adoption of the resolution. ● Before December 31 – The two nominees receiving the highest number of votes will be confirmed and will begin serving on January 1, 2026 for a four-year term ending December 31, 2029. Eligibility & Statutory Guidelines Legal Framework: This process is governed by Section 6.03 of the Texas Property Tax Code and is separate from any procedures under the Texas Election Code. Chief Appraiser’s Role: My role is to initiate and coordinate the nomination and voting process. I do not have the authority to evaluate, investigate, or determine nominee eligibility or qualifications. This responsibility rests with each governing body participating in the election. I am also not permitted to extend statutory deadlines. Basic Eligibility Requirements: ● Must have resided in Denton County for at least two years prior to taking office. ● May currently serve on the governing body of a city, county, or school district. ● Employees of taxing entities served by DCAD are ineligible unless they are elected officials. ● Must not have conflicts of interest as defined by state law, including:  • Close relation to DCAD staff  • Representation of property owners in the district  • Interest in businesses contracting with DCAD or any taxing entity 178 Term of Office In accordance with Section 6.031(e) of the Texas Property Tax Code, the two board members selected will serve a four-year term from January 1, 2026 through December 31, 2029. Meeting Frequency Pursuant to Section 6.04(b) of the Property Tax Code, the Board of Directors is required to meet no less than once each calendar quarter. Historically, the DCAD Board has convened on the second Thursday of most months; however, the meeting schedule is established at the Board’s discretion and may be revised to meet operational needs. Should you have any questions about the process or deadlines, please reach out to my office. Thank you for your ongoing commitment to the work of the Denton Central Appraisal District. Sincerely, Don Spencer Chief Appraiser Denton Central Appraisal District 179 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2025 – _______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, NOMINATING MEMBERS TO THE BOARD OF DIRECTORS OF THE DENTON CENTRAL APPRAISAL DISTRICT AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. WHEREAS, the selection process is set forth in Section 6.03 of the Property Tax Code. This process is not an “election” governed by the Texas Election code. It is independent procedure unique to the property tax system; and WHEREAS, The Colony is a member of the Denton County Appraiser District and is entitled to nominate up to five (5) candidates in the election of the Board of Directors; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the City of The Colony votes are hereby nominates ___________ as members to serve on the Denton Central Appraisal District Board of Directors. SECTION 2. That this Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 16TH DAY OF SEPTEMBER 2025. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: ____________________________________ Jeff L. Moore, City Attorney 180 Agenda Item No: 6.1 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 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 551.071 of the Texas Government Code to seek legal advice from the city attorney regarding pending or contemplated litigation or settlement offer: City of The Colony, Texas v. Preston Tighe, Sick Realty, LLC and 3805 Overlook Court, The Colony, Texas 75056, Cause No. 24-1447-362, 362nd Judicial District Court, Denton County, Texas. 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 Secretary. Background: 181 Agenda Item No: 7.1 CITY COUNCIL Agenda Item Report Meeting Date: September 16, 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 pending or contemplated litigation or settlement offer: City of The Colony, Texas v. Preston Tighe, Sick Realty, LLC and 3805 Overlook Court, The Colony, Texas 75056, Cause No. 24- 1447-362, 362nd Judicial District Court, Denton County, Texas. C. Any action as a result of executive session regarding the evaluation, reassignment, duties, discipline, or dismissal of the City Secretary. Background: 182