Pre-Council Conference - June 17, 2025 - 5:30 p.m. MAIN CONFERENCE ROOM - 1ST FLOOR - CITY HALL 1149 ELLSWORTH DRIVE, PASADENA, TX 77506 To discuss any or all of the following items: MAYOR JEFF WAGNER COUNCILMEMBERS RUBEN VILLARREAL District A JONATHAN ESTRADA District E BIANCA VALERIO District B DOLAN DOW District F EMMANUEL GUERRERO - District C ORNALDO YBARRA District G PAT VAN HOUTE - District D THOMAS SCHOENBEIN District H AGEND A COUNCIL MEETING CITY OF PASADENA, TEXAS CITY COUNCIL CHAMBERS = 1ST FLOOR 1149 ELLSWORTH DRIVE, PASADENA, TX 77506 June 17, 2025 - 6:00 p.m. CALL TO ORDER 2) ROLL CALL OF MEMBERS 3) INVOCATION = Pastor Brady Blasdel - Zion Lutheran Church PLEDGES OF ALLEGIANCE - Councimember Emmanuel Guerrero COMMUNITY INTEREST COMMENTS IN ACCORDANCE WITH CHAPTER 551.0415 OF THE GOVERNMENT CODE; IE. . expression of thanks, congratulations, or condolences; - information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event; and announcements involving an imminent threat to the public health and safety of people in the political subdivision that has arisen after the posting of the agenda. Agenda 06-17-25 1 6) CITIZENS WISHING TO ADDRESS COUNCIL 7) DOCKETED CITY COUNCIL HEARINGS 8) PRESENTATION OF PROCLAMATIONS, AWARDS AND COMMUNITY EVENTS 9) PROPOSALS FOR CITY BUSINESS 10) PRESENTATION OF MINUTES - June 3, 2025-10:00 a.m./Revised May 20, 2025-6:00 p.m. 11) PRESENTATION OF MINUTES OF SPECIAL MEETINGS 12) CONTRACT CHANGE ORDERS 13) PROGRESS PAYMENTS (A) Contractor: Boyer, Inc. Estimate No.: Eleven (11) Amount: $135,111.15 Project: Large Diameter Storm Sewer Rehab Project Project No.: D049 Ordinance No.: 2023-243 (B) Contractor: Brooks Concrete, Inc. Estimate No.: Three (3) Amount: $442,504.77 Project: 2025 Annual Sidewalk Improvements Project No.: S143 Ordinance No.: 2025-002 (C) Contractor: Christensen Building Group Estimate No.: Sixteen (16) Amount: $507,372.60 Project: Pasadena Police Annex Building Project No.: P010 Ordinance No.: 2023-247 (D) Contractor: D & W Contractors, Inc. Estimate No.: Four (4) Amount: $146,998.86 Project: 2025 Annual Paving & Drainage mprovements Project No.: $142 Ordinance No.: 2025-003 E) Contractor: D & W Contractors, Inc. Estimate No.: Four (4) Amount: $88,711.95 Project: 2025 Annual Paving & Drainage Improvements Project No.: D063 Ordinance No.: 2025-003 Agenda 06-17-25 2 Contractor: DL Glover, Inc. Estimate No.: Four (4) Amount: $133,980.40 Project: 2024 Citywide Sanitary Sewer Rehab Project No.: WW070 Ordinance No.: 2024-093 (G) Contractor: DL Glover, Inc. Estimate No.: Two (2) Amount: $155,288.05 Project: Strawberry Rd 15-Inch Sanitary Sewer Repair Project No.: WW101 Ordinance No.: 2024-202 (H) Contractor: JTR Constructors, Inc. Estimate No.: Eighteen & Final (18 & Final) Amount: $74,393.95 Project: Vince Bayou WWTP UV Disinfection Improvement Project No.: WW083 Ordinance No.: 2023-015 Contractor: Mar-Con Services, LLC Estimate No.: Ten (10) Amount: $25,113.15 Project: Red Bluff Road Drainage Improvements Project No.: D066 Ordinance No.: 2024-078 (J) Contractor: Mar-Con Services, LLC Estimate No.: Eleven & Final (11 & Final) Amount: $56,043.31 Project: Red Bluff Road Drainage Improvements Project No.: D066 Ordinance No.: 2024-078 (K) Contractor: Mar-Con Services, LLC Estimate No.: Four (4) Amount: $13,524.14 Project: Flamborough Drive Bridge Repairs Project No.: S198 Ordinance No.: 2024-144 - Contractor: Peltier Brothers Construction, LLC Estimate No.: Three (3) Amount: $353,685.00 Project: Jana Lift Station Rehabilitation Project No.: WW076 Ordinance No.: 2024-101 Agenda 06-17-25 3 (M) Contractor: SER Construction Partners, LLC Estimate No.: Four & Final (4) Amount: $22,945.12 Project: Dabney Storm Interconnect Project No.: D059 Ordinance No.: 2024-203 (N) Contractor: SER Construction Partners, LLC Estimate No.: Eight (8) Amount: $580,340.03 Project: Shaver St. Paving & Drainage Improvements PH II Project No.: S135 Ordinance No.: 2024-130 Contractor: Teamwork Construction Services, Inc. Estimate No.: Eight & Final (8 & Final) Amount: $40,930.00 Project: Construction of Median Cut and Cross Overs Project No.: F011/F014 Ordinance No.: 2024-058 (P Contractor: Way-Tech, Inc. Estimate No.: Ten (10) Amount: $460,465.42 Project: Construction of Fire Station No. 7 Project No.: F014 Ordinance No.: 2024-113 14) FINANCE RESOLUTION NO. 2928 MISC. CLAIMS & INVOICES 15) PERSONNEL CHANGES (A) REGULAR EMPLOYEES (B) FINANCE DEPARTMENT EMPLOYEES (C) ADMINISTRATION CHANGES IN PERSONNEL (D) INTRODUCTION OF NEW CITY EMPLOYEES 16) MAYORAL APPOINTMENTS 17) CITY BOARDS AND COMMISSIONS REPORTS 18) REPORTS OF COMMITTEES 19) MAYOR'S REPORT (A) ORDINANCES Agenda 06-17-25 4 (1) FINAL READINGS (2) FIRST READINGS (A) An Ordinance granting to Bluebonnet Pipeline LLC, the non-exclusive right, privilege, franchise and permit to lay, replace, construct, repair, maintain, operate, and remove a 6- inch Ethylene pipeline within the City of Pasadena routed on and across parcels of land and routes of which are shown as attached and in accordance with plans and specifications heretofore filed with the Department of Public Works, and the Department of Planning; prescribing the terms and conditions under which said right, privilege, franchise, and permit is granted; and providing for acceptance. (PUBLIC WORKS DEPARTMENT) (B) Authorizing the Mayor of the City of Pasadena, on behalf of the Neighborhood Network division of the Community Relations Department, to accept the ExxonMobil Community Grant award in the amount of $5,000.00. NEIGHBORHOOD NETWORK) (C) Authorizing the Pasadena Parks and Recreation Department to accept a Texas Parks & Wildlife Local Parks grant for the amount of $24,968.00. The department was previously authorized to apply for this grant as passed on Resolution 2024-196. To also authorize the Mayor or his designee to sign and accept the agreement on behalf of the City of Pasadena. (PARKS AND RECREATION DEPARTMENT) (3) EMERGENCY READINGS (4) ISSUANCE OF OBLIGATIONS (B) RESOLUTIONS (A) Accepting an in-kind donation of prizes for BINGO event valued at $130.00 from McCunis Fox Health Insurance Brokers for use by the Parks and Recreation Department in connection with Madison Jobe Senior Center. (PARKS AND RECREATION DEPARTMENT) (B) A Resolution setting a public hearing in the City Council Chambers, City Hall, 1149 Ellsworth Drive, Pasadena, Texas, 77506 at 6:00 p.m., July 15, 2025, for the purpose of hearing any interested citizen on the proposed budget for the Crime Control and Prevention District for the budget year beginning October 1, 2025 and ending September 30, 2025. (BUDGET DEPARTMENT) (C) Authorizing the Pasadena Parks and Recreation Department to accept a donation of $1,000.00 from Hancock Pool Services to be used for the annual City of Pasadena 4th Fest event. (PARKS AND RECREATION DEPARTMENT) (D) Accepting a donation of $20,000.00 from Chevron Products Company for use by Neighborhood Network in connection with Team Up to Clean Up 2025 ($10,000.00) and Pasadena Food Drive ($10,000.00). NEIGHBORHOOD NETWORK) Agenda 06-17-25 5 (E) Authorizing the Pasadena Neighborhood Network Division within the Community Relations Department to apply for the Shell Deer Park Community Grant in support of the Team Up to Clean Up 2025 program. NEIGHBORHOOD NETWORK) (F) Authorizing the placement of a bench in Sherwood Park in honor and memory of Charles Culpeppert to recognize his outstanding volunteer services in his community. This recognition serves the public purpose to encourage the citizens to also serve as volunteers to help City of Pasadena to assist and aid their fellow citizens of the City. (PARKS AND RECREATION DEPARTMENT) (G) A Resolution approving the Investment Policy for the City of Pasadena, Texas, for Other Post Employment Benefits (OPEB) Trust. (CITY CONTROLLER) (H) A Resolution certifying the canvassing and returns of the runoff election held in the City of Pasadena, Texas, on June 7, 2025 to elect a Mayor and Counciimembers for Districts A, B and G. (CITY SECRETARY) (H) Una Resolucion que certifica el excrutinio y los resultados de la eleccion de segunda vuelta celebrada en la Ciudad de Pasadena, Texas, EI7 de Junio de 2025, para elegir un alcalde y concejales para los distritos A, BI y G. (CITY SECRETARY) 20) OTHER BUSINESS 21) EXECUTIVE SESSION 22) ADJOURNMENT BY THE PRESIDING OFFICER 00- /S/ AMANDA F. MUELLER /S/ JEFF WAGNER CITY SECRETARY MAYOR Thought for the Week "Love and compassion are necessities, not uxuries. Without them humanity cannot survive." ) Dalai Lama - Agenda 06-17-25 6 FINANCE RESOLUTION NO. 2928 Date: June 17, 2025 Page: 1 of 10 WHEREAS the checks issued by the City Controller of the City of Pasadena, which are annexed hereto and incorporated herein for all purposes, are submitted to the Mayor and City Council of the City of Pasadena, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA, THATt the checks issued by the City Controller of the City of Pasadena, annexed hereto and incorporated herein for all purposes, are hereby ratified and approved, as issued. PASSED by the City Council of the City of Pasadena, Texas, in regular meeting at the City, on this 177H day of June 2025. APPROVED on this 17" day of June 2025 JEFF WAGNER Mayor City of Pasadena, Texas ATTEST: AMANDA MUELLER JAY W. DALE City Secretary City Attorney City of Pasadena, Texas City of Pasadena, Texas Page 1 of 6 CITY CONTROLLERS OFFICE CITY OF PASADENA ACCOUNTS PAYABLE 06/04/2025 THROUGHI 06/17/2025 AMEGY BANK OF TEXAS VENDOR # VENDORI NAME PURPOSE OF PAYMENT AMOUNT L21710 AM FAMILYLIFE ASSURANCE COMPANY EMPLOYEE DEDUCTIONS 12,712.70 121112 EQUI-VESTI LOAN LOCKBOX EMPLOYEE DEDUCTIONS 1,299.49 L21113 INVESCO INVESTMENT SERVICE INC EMPLOYEE DEDUCTIONS 150.00 41381 NEW. JERSEY FAMILY SUPPORT PAYMENT EMPLOYEE DEDUCTIONS 166.00 L21271 OHIO CHILD! SUPPORT PAYMENT CENTRAL EMPLOYEE DEDUCTIONS 70.62 L21742 POLICE AND FIREFIGHTERS ASSOCIATION EMPLOYEE DEDUCTIONS 4,967.72 SUBTOTAL . EMPLOYEE DEDUCTION CHECKS MAILED 6.13.25 19,366.53 41218 WRITE WISE COMMUNICATIONSIIC TRAINING 1,640.00 SUBTOTAL- MANUAL CHECK MAILED 6.6.25 1,640.00 W44497 ALEXANDER TRUCKING COMPANY UBF REFUND 268.27 W44436 ALVAREZ, DULCE MARIA OR UB REFUND 84.81 W44426 AVILA, RAQUEL OR UB REFUND 85.42 W44481 BIPORTACAN, LLC UB REFUND 376.84 W44480 BRINKLEY,SHANNONI LEE UB REFUND 64.96 W44456 BUJAN, RONALDV VERNON UB REFUND 87.72 W44507 CACERES, LUIS ARIELH UB REFUND 20.83 W44491 CANALES, YAZMIN LIZETTE OR UBF REFUND 93.19 W44447 CASAS, RAY UB REFUND 88.44 W44483 CORDOVA, JORGE ARTURO UB REFUNO 66.56 W44484 CORDOVA, JORGE ARTURO UBF REFUND 53.54 W44472 CRAFTED BYI MONI AND MORE UB REFUND 5.27 W44455 DHABALIA, DEEPAK T UB REFUND 20.46 W44479 DOMNICK, BRIANNAAOR UB REFUND 8.92 W44506 DOVALINA, ALBERTO UB REFUND 53.34 W44431 ESCOBAR, XAVIER UB REFUND 67.08 W44475 ESPINAL, ERIC ALBERTO UB REFUND 80.61 W44453 GALLAGA, ENRIQUE ARTURO UB REFUND 75.21 W44429 GARIBAY, NANCY UB REFUND 79.49 W44490 GONZALEZ, RUBEN OR UB REFUND 125.00 W44435 GREEN REALI ESTATE GROUPI LLC UB REFUND 112,33 W44509 GRYCH, ANNSLEYEOR UBF REFUND 104.49 W44495 GUEVARA RAMIREZ, LUIS DANIEL OR UB REFUND 77.15 W44492 GUTIERREZ, JESUS E UB REFUND 118.93 W44451 HARSTON, MARTHA UB REFUND 16.45 W44498 HOGAN, VERNA DUREN UB REFUND 67.23 W44428 KHARBOUCH, BOUCHRA UB REFUND 37.24 W44510 KHARBOUCH, BOUCHRA UB REFUND 69.76 W44478 LAMAS, SERGIO UBF REFUND 79.25 W44457 LEON, OSCAR ANTONIO U8 REFUND 11.77 W44434 LEWIS, PAULA UBF REFUND 61.28 W44427 MALDONADO, BERNARDA OR UBE REFUND 50.54 W44476 MANCHAC, ÇALEB DODSON UB REFUND 44.01 W44454 MORENO, BLANCANELLYOR UB REFUND 81.00 W44471 NGUYEN, KEVIN DUC UBF REFUND 64.96 W44502 NGUYEN, NGAN BICH UBI REFUND 8.40 W44504 NOEL, JOHN OR VENITA UBF REFUND 7.05 W44499 NOYOLAC CASTRO, PAOLA OR UB REFUND 45.17 W44473 OCHOA,STEPHANIE UBF REFUND 89.77 W44446 PEREYRAI DIAZ, BERTO UB REFUND 115.56 W44489 PROCESS SERVICE SPECIALISTS UB REFUND 600.00 W44477 RAMPTON,STEPMEN: RICHARD UBI REFUND 96.27 W44449 RENKEL, KAY URBAN UBI REFUND 13.82 W44450 RIZZO, GINA TERESA UB REFUND 23.82 W44505 RODRIGUEZ, JOAQUIN UB REFUNO 73.79 W44500 RODRIGUEZ, MARIBEL UBI REFUND 14.88 W44482 RODRIGUEZ, SHELBY. JUSTINE UBI REFUND 101.02 W44503 RUIZ, SEBASTIAN SIGIFREDO OR UB REFUND 156.05 W44501 SAGER, ANDREA BREANN UBI REFUND 65.50 W44508 SERRANO, JEANNETTEY YOLANDA UB REFUND 61.28 W44493 SHAH, MAHENDRA ORI MEETA M UB REFUND 5.15 W44433 SIMONTON, JAMES KEITH UB REFUND 70.55 W44458 TEXAS RENTERS.COMI LLC UB REFUND 29.52 W44448 VALDEZ, MIGUEL GONZALEZ U8 REFUND 29.52 W44463 VEGA ESCAMILLA. KARINA UBF REFUND 67.63 W44494 WATSON, MICHAEL UBI REFUND 13.75 W44432 WFI MANAGEMENT, LLC UB REFUND 59.94 SUBTOTAL WATER BILLINGTO BE MAILED FOLLOWING THE COUNCIL MEETING 6.17.25 4,550.79 42137 BRISEYDAI BARAJAS PALO GYM CONTRACTOR 510.00 39760 DANIEL CRUZ. JR TENNIS PRO-JUN 3,915.00 33918 MADELYN DELOSSANTOS PAL GYM CONTRACTOR 60.00 43339 GISELLE ROSE DEL LEON PAL GYM CONTRACTOR 432.00 Page 2of 10 00001284 RUBEN LOPEZ PAL GYM CONTRACTOR 720.00 00006192 RAYMOND PEREZ PAL GYM CONTRACTOR 720.00 36322 ALEXAI DENISE SANCHEZ PAL GYM CONTRACTOR 414.00 31332 VICTORIAI DANIELLE GONZALEZ PAL GYM CONTRACTOR 375.00 SUBTOTAL CONTRACT EMPLOYEES TO BE MAILED FOLLOWING THE COUNCIL MEETING 6.17.25 7,146.00 9772 A&E BI ENVIRONMENTAL: SERVIÇES STORM WATER TESTING 4,556.00 00010879 A& HY WRECKER: SERVICE TOWING CHARGES 2,470.00 9367 AT&T PHONE CHARGES-MAY 717.38 9367 AT&T POTS LINE-MAY 247.68 9367 AT&T ALARM SYSTEM-MAY 123.84 9535 AT&T NODI CHARGES-NOV 280.80 9535 AT&T NOD CHARGES-DEC 280.80 9535 AT&T NOD CHARGES-JAN 280.80 9535 AT&T ADIFORI IPFLEX-MAY 612.98 9535 AT&T INTERNET-JUN 160.00 9535 AT&T VOIP TELEPHONE-MAR 1,654.19 9535 AT&T VOIP TELEPHONE-MAY 1,656.86 9535 AT&T INTERNET-APR 3,862.31 9925 AT&T MONTHLY SERVICE-JAN 2,157.98 32381 AT&T TMOBILITY PHONE CHARGES-MAY 755.06 9289 A-PAL'SLOCKSMITH IMPOUND' VEHICLE KEYS 1,260.00 18117 ACADIAN AMBULANCE SERVICE OF TEXAS 20-051 EMS SVC-JUN 104,323.05 W39733 ACOSTA, LILLIAN DEL CARMEN REPLACE AP CK 00*26 80.20 34787 ACTION BUGGIES GOLF CART RENTAL 890.00 35568 ACTION TOWING, INC TOWING CHARGES 2,043.40 22567 ACUSHNET COMPANY GOLF MERCHANDISE 1,084.06 28849 ADEMCO INCI DBA ADI GLOBAL CAMERA 177.07 B2500228 AGUIRRE, LUIS RAMIRO COURT BONDI REFUND 5.00 22124 ALLEN ANDI KERBERAUTO SUPPLY 25-034 REPAIR PARTS 9,049.58 14460 ALLY GENERAL: SOLUTIONS LLC 25-012 TO! 5/2/25 #1 68,202.00 35080 ALPHA & OMEGA: SOUND STAGE/SETUPI FINAL PMT 1,750.00 14465 CYNTHIAA ALVARADO RENTALI DEPOSIT REFUND 150.00 44486 STEPHANIE ALVARADO VOLLEYBALLI FEE REFUND 40.00 00001792 AMERIÇAN ASSOCIATION OF NOTARIES NOTARY FEE-I DUNN 108.90 W39390 AMPSPECL LLC REPLACE AP CK *00*41 1,050.00 30854 ANGELI, SAMUEL WIND-UP UMPIRE 315.00 W38973 ANGULANO, LUZ EDITH REPLACE AP CK **26 20.28 82300665 ARIAS, LUISA REPLACE AP CK 00040 100.00 9239 ARNOLD OIL COMPANY MYDRAULIC/MOTORI OIL 12,503.89 23846 ATBTMOBILT-FIRST NET PHONE CHARGES-MAY 10,028.78 41403 AVALON EVENT RENTALS TENT RENTAL FINAL PMT 1,025.39 44485 CHRISTINA AVALOS BASKETBALLE REFUND 50.00 39444 SELECTIVE GIFT INSTITUTE, INCO DBA SERVICE AWARDS 660.00 00000765 B&H HP PHOTO VIDEO, INC CAMERAS 294.40 00020117 BAKER &1 TAYLOR-PA 24-240 BOOKS 5,140.48 00000833 BAKER & TAYLOR ENTERTAINMENT 24- 240A AVI MATERIALS 5,508.39 29637 BATTLEGROUND CONCRETE 23-055 CONCRETE 1,834.50 00003689 BAY AREA RENTALS 25-103 CONCRETE 2,294.50 00003545 BAYWAY LINCOLN MERCURY AUTOMOTIVE REPAIRS 1,117.43 40704 BEASLEYT TIRE SERVICE HOUSTON INC TIRES 601.16 9304 BIG ZLUMBER COMPANY WAREHOUSE INVENTORY 2,260.00 9699 BINKLEY & BARFIELD 22-0821 TOC 03/31/25 #32 165,620.60 00020920 BINSWANGER GLASS COMPANY WINDOW REPLACEMENT 1,285.00 41845 BLADE-TECHI HOLSTERS HOLSTER EQUIPMENT 2,549.43 41194 BOVER, INC D049 LARGE DIAMETER! STORM! SEWER REHAB PROJ. 135,111.15 44487 DAVID BRANNEN MILEAGE REIMBURSEMENT 295,40 82500028 BRIEN, GRACEUN VAUGHN COURT BOND REFUND 300.00 82500029 BRIEN, GRACEUN VAUGHN COURT BOND REFUND 300.00 82500030 BRIEN, GRACEUN VAUGHN COURT BONDI REFUND 100.00 00004562 BROOKS CONCRETE INC S143 ANNUALS SIDWALKI IMPROV. 442,504.77 B2400756 BUSTILLOI DOMINGUEZ, ELKIN COURT BONDI REFUND 400.00 B2400757 BUSTILLO DOMINGUEZ, ELKIN COURT BONDI REFUND 100.00 B2400758 BUSTILLO DOMINGUEZ, ELKIN COURT BONDI REFUND 300.00 31599 CADD MICROSYSTEMS, INC. SOFTWARE MAINTENANCE 2,340.00 30351 CALLAWAYO GOLF SALESCO. GOLF MERCHANDISE 1,023.26 00002975 CAMPBELLI PET COMPANY SHELTER SUPPLIES 1,280.00 B2400562 CARDENAS, ARLETH COURT BONDI REFUND 400.00 9420 CARE ATC PHYSICAN/STAFF-JUN: &1 LABE EXPENSES-APR 70,765.83 44139 CATEGORYE FIVE1 TECHNOLOGIESI INCI DBA WATER FOUNTAIN 4,831.14 00004422 CDW GOVERNMENT INC ITI DEVICES & LCENSES 15,411.27 00030833 CHARLIE HINDS PAINT &E BODY REPLACE AP CK +97 3,495.00 42558 CHARLIE HINDS WRECKER SERVICE INC TOWING CHARGES 1,125.00 00003055 CHASTANGS BAYOU CITY FORD TRUCK 25-034 REPAIRI PARTS 3,697.17 00031601 CHLORINATORI MAINTENANCE CO. CHLORINATION MATERIALS 859.60 40241 CHRISTENSEN BUILDING GROUP, LLC P0101 POLICE ANNEX BUILDING 507,372.60 00030043 CITY OF HOUSTON WATER-APR 4,664.77 00031205 CLEAR LAKE CITY WATER AUTHORITY WATER: SERVICE-MAY 31,073.22 35131 CLIFFORD POWER. SYSTEMS, INC 22-131 GENERATOR 5,877.90 00004030 CLUB CAR GOLF CART 8,575.60 00006279 CNPI HOUSTON ELECTRICI LLC 09-143 ROLLOVER: SVCS 1,824.30 10949 COASTAL TANK AND" TESTING, LLC FUEL ISLAND TANK TEST 725.00 Page 3 of 10 34784 CODING WITHAT TWIST SRP PERFORMER 500.00 8608 COMCAST CABLE EQUIPMENT RENTAL-JUN 193.41 8608 COMCAST CABLE SERVICES-JUN 25.78 8608 COMCAST CABLE INTERNET-JUN 150.75 30106 CONSOR ENGINEERS DBA US UNDERWATER ROVI INSPECTION 12,820.00 TO109198 NORA CORTINO EUTHANASIA TRAINING 375.00 11507 SEAN COULTER TUITION REIMBURSEMENT 2,421.68 44441 ANISHA CRISTIAN RENTAL DEPOSIT REFUND 100.00 33662 CUMMINS SOUTHERN PLAINS LLC REPAIR PARTS 107.39 39633 CYPRESS CREEK MOSQUITO CONTROL, uLC MOSQUITOI FOGGING 1,000.00 00000050 D&V W CONTRACTORS INC D063 & $142 DRAINAGE PAVING IMPROV. 235,710.81 00005292 DATAVOX DOOR REPAIR 467.50 B2500242 DAVISON, DELANCEY COURT BONDI REFUND 55.00 35825 AUDRAJOHNSON EVENTE FAÇE PAINTERS 1,875.00 00008317 DBS TEXAS SHIRTS 15,163.51 B2500262 DELAFUENTE, KARLAA AHYLIN COURT BONDI REFUND 25.00 00003537 DELL MARKETING LP 24-269 MONITOR 10,985.00 31387 DLG GLOVERI INC WW070 & WW101 SEWER REPAIR 289,268.45 41497 DUELINGI BROTHERS EVENT AXE THROWING 972.00 00050420 EADY INC TOWING CHARGES 1,520.00 W37909 EATON, SETH DANIEL REPLACE AP CK *10 8.18 24483 EDMINSTER HINSHAW RUSS & ASSOCIATES 24-1521 TO: 1/26/25 #4 26,916.00 00007351 ELEVATOR TRANSPORTATION: SERVICES ELEVATOR SERVICES-JUN 5,457.80 22918 ENTECH CIVIL ENGINEERS, INC 21-171 TO 09/30/24 #24 149,838.82 25524 ERAD GROUP, LLC SUBSCRIPTION FEE 3,000.00 B2400871 ESPITIA, IVAN COURT BOND REFUND 20.00 B2400872 ESPITIA,IVAN COURT BONOD REFUND 300.00 10952 EVERLASTING GREEN LANDSCAPING: SUPPLIES 81.00 43448 EVERONI LLC ALARMI MONITORING 288.56 40692 FAIRMONT PET HOSPITAL 25-035 SPAYS/NEUTERS 8,826.89 00060570 FASTENAL COMPANY WAREHOUSE INVENTORY 27,203.29 00060504 FEDERAL EXPRESS SHIPPING CHARGES 11.71 42064 FEDERAL SIGNAL CORPORATION SIREN INSTALLATION 1,467.01 W38686 FERNANDEZ CASTILLO, VICTOR REPLACE AP CK . *75 125.00 42496 FERTITTA CHEVROLET AUTOMOTIVE REPAIRS 1,490.40 8916 FIRETRON, INC. 25-072 SMOKE DETECTOR 520.00 17961 FORTILINE WATERWORKS WAREHOUSE INVENTORY 6,641.87 40356 FRIEN DSWOODI FRAME & INTERI IC ORS LLC RETIR MENT SHADOW BOXES 696.51 B2500246 GALEANO, JAIME: SAUL HERNANDEZ COURT BOND REFUND 300.00 44188 CLAUDIAL GARCIA RENTAL DEPOSIT REFUND 150.00 82500161 GARZA, MATTHEW JOSEF COURT BOND REFUND 19.00 82500162 GARZA, MATTHEW JOSEF COURT BOND REFUND 12.50 00007047 GCT CUSTOM AWARDS PROMO ITEMS 6,030.00 31452 WCA' WASTE SYSTEMI INC DBA CITIZEN LANDFILL DUMP 2,129.04 44443 EVELIN GOMEZ RENTAL DEPOSIT REFUND 100.00 B2500268 GONZALES, THOMASANTHONY COURT BOND REFUND 70.00 B2500269 GONZALES, THOMAS ANTHONY COURT BOND REFUND 300.00 31646 IMPACT PROMOTIONAL SERVICES DBA 24-189 UNIFORMS 35,891.30 00232307 GRAINGER HAND DRYER 853.22 00070852 GRISWOLD MOWING &I LANDSCAPING WEED MOWING 2,300.00 00071777 GTC DISTRIBUTORS INC POLICE DUTYGEAR 1,358.78 B2500237 GUEL, AMY ELIZABETH COURT BOND REFUND 39.50 B2500238 GUEL, AMY ELIZABETH COURTI BOND REFUND 25.00 39050 EMMANUEL GUERRERO EMSUNEMENTCOMATONE GUERRERO 720.00 10344 GULF COAST PETI FOODS DOGA AND CAT FOOD 3,252.35 9459 HARRIS COUNTY RIDES RIDES-JUL 5,625.00 00004636 HARRIS COUNTY TREASURER 23-102 VOUTH COUNSEL 3,612.75 36717 HAWKINS INC CHEMICALS 1,125.75 36576 HELFMAN FORD, INC 24-005 REPAIR PARTS 553.69 B2500256 HERNANDEZ, JOSUE COURT BOND REFUND 45.00 B2500257 HERNANDEZ, JOSUE COURT BOND REFUND 5.00 44468 VERONICA HERNANDEZ RENTAL DEPOSIT REFUND 150.00 27654 HERRERAL LAW & ASSOCIATES, PLLC R17-064 LEGAL SER MAR 3,867.50 00050524 HUBERTE E WALTON DATE LINE INSTALL 1,881.71 W38225 HOLBROOK, LEE NEWMAN REPLACE AP CK *00 697.65 42807 HOLTTRUCK CENTERS OF TEXAS, LLC REPAIRI PARTS 2,630.78 00005133 HEARST NEWSPAPERS LLC PUBLICATION 3,977.22 00002146 HOUSTONI FREIGHTLINER- -WESTERN STAR TRUCKPARTS 2,324.18 00006890 HOUSTON TRUCKI PARTS INC HEAWY EQUIP. 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DOORI REPLACEMENT 1,044.91 18931 DAVID REYNA DI SERVICE-06-20 350.00 00006319 RICK'S LONE STAR MUFFLER REPAIR PARTS 427.95 11564 RIDLEY'S VACUUM! &. ANITORIAL PARTS 238.96 41767 RISING: STAR RECRUITING PERSONNEL SERVICES 18,367.19 B2500074 ROBLES, VALENTIN! Jr COURTI BOND REFUND 400.00 00006187 ROCIC MEMBERSHIP: SVCFEE 300.00 43386 DANIEL RODRIGUEZ RENTALI DEPOSIT REFUND 100.00 38497 VANESSAI RODRIGUEZ REPLACE AP CK *40 45.00 37965 ROMMELMANNI ENTERPRISES LLC DBA MURIATIC ACID 55GAL 5,791.25 00181515 RON'S TOWING & RECOVERY TOWING CHARGES 760.00 44438 YOLANDAI ROSS REGISTRATION REFUND 70.00 00007383 RICHARD HI ROWLAND! 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BALLISTICA ARMOR 1,160.00 00004250 SMART MATERIALSI INC BANK: SAND 702.00 W38405 SOLTERMACK, MARGARETLOU REPLACE AP CK *53 78.18 H2072 SONIA GALVAN REPLACE AP CK . *92 62.00 44097 SOUND: SOURCE ENTERTAINMENT DISVCS-FINAL-07/04 687.50 20322 CAROL ANNI HARLAN DBA! SPACE CITY BALLOON TWISTERS 1,200.00 41162 SPAY-NEUTER ASSISTANCE PROGRAMI INC 25-035 SPAYS/NEUTERS 1,682.00 29477 SPLASHTACULAR, LLC HOSE. JETS 224.50 10102 SSCI ENVIRONMENTAL REVIEW 2,992.14 00003869 STATE INDUSTRIAL PRODUCTS JANITORIAL CLEANERS 168.80 00021813 STERICYCLE INC MEDI WASTE DISPOSAL 312,44 14420 STORAGE CORRAL UNIT 92. JUL 2025 RENT 145.00 9840 SYSCO HOUSTON INMATES & CONCESSION FOOD 6,319.14 33954 T&V WTIRE, LLC VEHICLE1 TIRES 2,254.44 00002395 TTTECHNOLOGIESI INC REPAIR PARTS 315.79 H1171 VANGELA COLLINS REPLACE. AP CK *91 36.00 42900 TARTAN OILLLC FUEL 71,548.49 40335 TEAMWORK CONSTRUCTION: SERVICES, INC F011/F014 CONSTRUCTION MEDIAN CUT & CROSSOVER 40,930.00 20869 TETRA TECH, INC 24-0411 TO: 2/28/25 #10 92,478.03 00003941 RONALDO C EDWARDS PEST CONTROL 3,930.00 00005913 TEXAS DEPARTMENT OF CORRECTIONS STORAGE BOXES 1,702.50 38221 TEXAS IRRIGATIONS SUPPLY IRRIGATION PARTS 196.59 41234 TEXAS JUMPI NS SPLASH 4THFEST ENTERTAINMENT 16,164.00 32894 TEXAS MATERIALS GROUP, INC DBA 24-245 CONCRETE 6,485.58 00002460 TEXAS STATE COMPTROLLER UNCLAIMED PROPERTY 16,721.72 T0806297 THE BRIDGE OVER TROUBLED WATERS 24-214 SHELTER PROG 9,477.20 8395 THE PLAYWELL GROUPI INC PARKI BENCHES 50,138.26 40792 THE PORTOFINO JUL RENT-APT5101 1,217.00 43945 THERMOFLUIDS, INC OILF RECYCLING 390.00 21154 THIS DEERE DOESN'T NAG WEED/BRUSH CONTROL 1,900.00 38071 TOP GUN TEÇHNOLOGY, INC MAINTENANCE RENEWAL 13,320.00 82500190 TORRES, SALOMON COURT BOND REFUND 100.00 10019 TRAFFICLOGIX SPEED BUMPS MATERIALS 4,625.00 10664 TRANSUNION TLOXP DATABASE SEARCH! 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SHIELD-JUN 1,899.09 00006749 WORTHHYDROCHEM OF HOUSTON MAINTENANCE-UN 1,485.00 44444 TAMA ARAH' WRIGHT RENTALI DEPOSIT REFUND 100.00 26905 XEROXI FINANCIAL SERVICES EQUIPMENT LEASE-MAY 14,961.23 28790 ZOOBEAN, INC BEANSTACK PLUS 3,180.71 SUBTOTAL TO BE MAILED FOLLOWING THE COUNCIL MEETING 6.17.25 5,844,012.78 PERC CHECKF REGISTER CKH) XX8085 -XX8524 $ 5,876,716.10 Page7of10 FOR COUNCILI REVIEW HOUSING CHOICE VOUCHER PROGRAM UTILITY Page 80 of 10 HOUSING DEPARTMENT CITY OF PASADENA HOUSING CHOICE VOUCHERI PROGRAM- UTILITY REIMBURSEMENT 6/1/2025 THROUGH 6/30/2025 AMEGY BANK OF TEXAS HOUSING DEPT INAME PURPOSE OFP PAYMENT AMOUNT TX440 NICOLE LI RUBIO UTILITY REIMBURSEMENT $ 14.00 TX440 ALISHAL CUNNINGHAMI COLORADO UTILITYF REIMBURSEMENT 117.00 TX440 JOIT MATTHEWS UTILITY REIMBURSEMENT 77.00 TX440 SHANAJA Y RICHARDSON UTILITY REIMBURSEMENT 46.00 TX440 ANGELADA ALANIZ UTILITY REIMBURSEMENT 97.00 TX440 VERONICAI MOHAMAD UTILITYF REIMBURSEMENT 84.00 TX440 CYNTHIA G COLE UTILITY REIMBURSEMENT 11.00 TX440 TANGELA COLLINS UTILITY REIMBURSEMENT 16.00 TX440 GINAI M COVARRUBIAS UTILITY REMBURSEMENT 132.00 1X440 MARILYN DORSEY UTILITY REIMBURSEMENT 84.00 1X440 DENISE R GARNER UTILITY REIMBURSEMENT 11.00 TX440 HERLISA GUMBS UTILITY REIMBURSEMENT 11.00 TX440 LISALICON UTILITY REIMBURSEMENT 54.00 TX440 RAYE RMAGALLANES UTILITY REIMBURSEMENT 37.00 TX440 VERONICA ORTIZ UTILITY REIMBURSEMENT 11.00 TX440 TOMMIE BP POLK UTILITY REIMBURSEMENT 61.00 TX440 JOCELYNN SMITH UTILITY REIMBURSEMENT 47.00 TX440 BRIANNAJ HAROLD UTILITY REIMBURSEMENT 4.00 TX440 MONICA' YFLEEKS UTILITY REIMBURSEMENT 138.00 TX440 LAURENTH HOUNMETIN UTILITY REIMBURSEMENT 54.00 TX440 ELIZABETH M GUZMAN UTILITY REIMBURSEL EN MENT 7.00 TX440 KIMBERLY MI FOREMAN UTILITY REIMBURSEMENT 16.00 TX440 KENNETHO CN MARTIN UTILITY REIMBURSEMENT 16.00 TX440 BRITNEYS GORE UTILITY REIMBURSEMENT 18.00 TX440 PRECIOUS CFRANCIS UTILITY REIMBURSEMENT 32.00 TX440 ARIELI MH HALL UTILITY REIMBURSEMENT 32.00 TX440 MARISSA: ZAPATA UTILITY REIMBURSEMENT 31.00 TX440 RYNETTE CJOHNSON UTILITY REIMBURSEMENT 16.00 TX440 KEYARREA N GRACE UTILITY REIMBURSEMENT 84.00 TX440 KIERRA DE RINGER UTILITY REIMBURSEMENT 116.00 TX440 ANTRANEIÇE RI WALKER UTILITY REIMBURSEMENT 117.00 TX440 TIFFANY RC COOPER UTILITY REIMBURSEMENT 54.00 TX440 DORIS JLOPEZ UTILITY REIMBURSEMENT 32.00 TX440 TYTIANNALDORSEY UTILITY REIMBURSEMENT 54.00 TX440 CHALSETTEAR PENNAMON UTILITY REIMBURSEMENT 32.00 TX440 CHANTE MOORE UTILITY REIMBURSEMENT 16.00 TX440 SANDRAI N ALLY UTILITY REIMBURSEMENT 16.00 TX440 DOMINIQUES SMAYS UTILITY REIMBURSEMENT 160.00 TX440 TYTEANAI MILES UTILITY REIMBURSEMENT 54.00 TX440 SYMINTHA! ROBINSON UTILITY REIMBURSEMENT 23.00 TX440 FREDA M SMITH UTILITYI REIMBURSEMENT 111.00 TX440 DAWNTRALL CODEMS UTILITY REIMBURSEMENT 16.00 TX440 CHARITIE ME FLORES UTILITY REIMBURSEMENT 16.00 TX440 JASMINEI L MILES UTILITY REIMBURSEMENT 107.00 TX440 JERMIKA NV WILLIAMS UTILITY REIMBURSEMENT 54.00 TX440 LATREKAEL LAVIGNE UTILITY REIMBURSEMENT 104.00 TX440 NICOLE MI MARKS UTILITY REIMBURSEMENT 97.00 TX440 KENDELYNN RI MARSHALL UTILITY REIMBURSEMENT 123.00 TX440 ODESHAL L WILKINS UTILITY REIMBURSEMENT 12.00 TX440 RICHARD CONTRERAS UTILITY REIMBURSEMENT 32.00 TX440 DORIS LAWS UTILITY REIMBURSEMENT 32.00 TX440 SHIMIKAI DMILES UTILITY REIMBURSEMENT 32.00 TX440 MARION L HALL UTILITY REIMBURSEMENT 61.00 TX440 SHMIYA/ Al MORRISON UTILITY REIMBURSEMENT 16.00 TX440 EVELYN N1 TRISTAN UTILTY REIMBUR EMENT 94.00 TX440 VICTORIAA ALANIZ UTILITY REIMBURSEMENT 13.00 TX440 DESIRA DS SALLIE UTILITY REIMBURSEMENT $4.00 TX440 DEMIL LA AGUIRRE UTILITY REIMBURSEMENT 15.00 X440 MIRANDAI L TERRAL UTILITY REIMBURSEMENT 16.00 TX440 MARQUISEL LARMSTRONG UTILITY REIMBURSEMENT 117.00 TX440 ERNESTINAH HI HURTADO UTILITY REIMBURSEMENT 43.00 TX440 CECILIALFLORES UTILITY REIMBURSEMENT 93.00 TX440 JADAADIAZ UTILITY REIMBURSEMENT 16.00 TX440 TAMARARI DAVIS UTILITY REIMBURSEMENT 95.00 TX440 CRISTAL GUDINO UTILITY REIMBURSEMENT 143.00 TX440 RUBYLOOTSON UTILITY REIMBURSEMENT 138.00 TX440 MARY MADISON UTILITY REIMBURSEMENT 1.00 TX440 LAQUITA ELLIS UTILITY REIMBURSEMENT 32.00 X440 RACHELI MOORE UTILITYR REIMBURSEMENT 84.00 TX440 ALEJANDRA CHAVEZ UTILITY REIMBURSEMENT 81.00 TX440 KLANDRAI FARLEY UTILITY REIMBURSEMENT 132.00 TX440 APRIL VHUGHES UTILIY REIMBURSEMENT 138.00 Page! 9of1 10 VX440 SAMANTHA VILLARREAL UTILITY REIMBURSEMENT 144.00 TX440 CHRISTINAI FFORD UTILITY REIMBURSEMENT 32.00 TX440 JENNIFER BALDERAS UTILITY REIMBURSEMENT 138.00 TX440 LACYE R TREVINO UTILTYI REIMBURSEMENT 32.00 TX440 ALEXIS THUNT UTILITY REMBURSEMENT 330.00 TX440 LETICIA LFLAGG UTILITY REIMBURSEMENT 101.00 TX440 RAVEN B CHRISTIAN UTILITY REIMBURSEMENT 32.00 TX440 RYAISHA DI DAUGHERTY UTILITYF REIMBURSEMENT 32.00 PERC CHECKI REGISTER CK#) XX8525- -XX8604 $ 4,991.00 Utility reimbursement checks willl ber mailed following City Council approval. Page 100 of 10 ITEM ONE PERSONNEL REQUESTS June 17, 2025 A. REGULAR EMPLOYEES 1. RECOMMENDED EMPLOYMENT Maria Guzman Housing Programs Coordinator, Housing Choice Vouchers, 00062-1970-4, $1,661.60 b/w, effective 6/18/25 Eloy Murillo Library Assistant 1, Library, 17110-2150-11, $1,184.00 b/w, effective 6/18/25 Dulce Flores Palacios PT Athletics Pooled Position, Athletics, 15240-2650-1, $12.50/hr., effective 6/18/25 Joshua Rainey Animal Care Technician II, Animal Rescue & Assistance, 16200-1095-11, $1,160.00 b/w, effective 6/18/25 Heli Trevino Utility Worker I, Wastewater Collection, 30200-3700-3, $1,184.00 b/w, effective 6/18/25 2. NOTICE OF SUSPENSIONS 3. NOTICE OF RESIGNATIONS Inmer Baca Jr. Utility Worker II, Wastewater Rehabilitation, effective 5/29/25 Anderson Garcia Safety & Risk Coordinator, Human Resources, effective 6/9/25 Juan Garza Jr. Parks Worker I, Parks, effective 6/22/25 David Gensemer IV PT Pooled Landscaping, Landscaping, effective 5/20/25 Blaise Tedder. Animai Care Technician II, Animal Rescue & Assistance, effective 5/25/25 4. NOTICE OF RETIREMENTS Charles Kevin Traxler Police Officer, Police, effective 5/22/25 5. NOTICE OF DEATHS James Beck PT Pooled Parks, Parks, 5/13/25 B. FINANCE DEPARTMENT 1. RECOMMENDED EMPLOYMENT * 2. REINSTATEMENTS 3. NOTICE. OF SUSPENSIONS 4. NOTICE OF RESIGNATIONS 5. NOTICE OF RETIREMENTS 6. NOTICE OF DEATHS 7. ADMINISTRATIVE CHANGES IN FINANCE PERSONNEL C. ADMINISTRATIVE CHANGES IN PERSONNEL * D. INTRODUCTION OF NEW EMPLOYEES * Require Approval of Council PRE-COUNCIL MEETING CITY OF PASADENA June 3, 2025 = 9:30 a.m. MINUTES CALL TO ORDER Mayor Wagner called the Pre-Council Meeting to order. Proceeded to go over the agenda. Councilmember Van Houte - Invited Mayor Wagner and Council to attend a TML webinar scheduled for Thursday, May 5th, from 10:00 - 11:00 a.m. ADJOURNMENT 9:35 a.m. Mayor Wagner adjourned the Pre-Council Meeting. RECORD OF PROCEEDINGS CITY OF PASADENA June 3, 2025 = 10:00 a.m. CALL TO ORDER The regular Council Meeting of the City of Pasadena, Harris County, Texas, was called to order by Mayor Wagner. ROLL CALL COUNCIL PRESENT: Mayor Jeff Wagner BIANCA VALERIO District B JONATHAN ESTRADA District E EMMANUEL GUERRERO - District C DOLAN DOW District F PAT VAN HOUTE District D THOMAS SCHOENBEIN District H Absent - Counciimembers Ruben Villarreal and Ornaldo Ybarra Also present at the Council table was Amanda Mueller, City Secretary INVOCATION = Alissa Newell, Permit Services Supervisor PLEDGES OF ALLEGIANCE - Councilmember Bianca Valerio COMMUNITY INTEREST COMMENTS IN ACCORDANCE WITH CHAPTER 551.0415 OF THE GOVERNMENT CODE Councilmember Valerio = Passed, no comments City of Pasadena - Council Meeting 1 Minutes: 06-03-25 10:00 a.m. Councimember Guerrero = Welcomed everyone to the meeting. Recognized Dr. DeeAnn Powell in the audience. Councimember Van Houte - Noted there would be a Hurricane Workshop held on Saturday, June 7th, at the Convention Center. Gave information on the various topics that would be covered and guest speakers that would be in attendance. Commented that the Runoff Election for the position of mayor and three councimembers would also be held on Saturday, June 7th, from 7:00 a.m. - 7:00 p.m. Gave update of projects that have been completed in District D. Councimember Estrada - Wished everyone a good moming. Reminded everyone that Saturday would be Election Day. Councimember Dow = Stated it was good to see a lot of familiar faces. Recognized former Councimember Phil Cayten in the audience. Councimember Schoenbein - Wished everyone a good morning. Thanked the Pasadena School Board of Trustees for attending the meeting. Asked everyone to check on the elderly during the summer heat, to practice pool and water safety, and to avoid leaving children and pets in hot cars. CITIZENS WISHING TO ADDRESS COUNCIL Judy Harrison = Thanked Mayor Wagner for his years of service to the city. Erik Sanchez - Spoke on accountability for the death of an inmate who was in the Pasadena Police Department jail in 1976. Richard Collins - Spoke on the death of an inmate who was in the Pasadena Police Department jail in 1976 and the records regarding this incident. Stephen Alvarez = Spoke on corruption. Robert Jeter III - Questioned the role of the city council and city employees. Alan Fowler - Spoke on recent investigative reports during the election. Kenny Fernandez = President, Pasadena ISD Board of Trustees. Thanked Mayor Wagner and Council for helping to build and bridge partnerships with Pasadena ISD. Dr. DeeAnn Powell - Superintendent, Pasadena ISD. Expressed her appreciation to Mayor Wagner for his partnership and support of the Pasadena ISD during his term in office. Roneka Lee Principal, Bondy Intermediate School. Spoke on the Pasadena School District's appreciation of Mayor Wagner's leadership and friendship. Marshall Kendrick - PISD Board Member. Thanked Mayor Wagner for his support of the school district. City of Pasadena - Council Meeting 2 Minutes: 06-03-25 10:00 a.m. Andrew Eubanks Asst. Principal Bondy Intermediate School. Spoke about the partnership between the City of Pasadena and the school district. Thanked Mayor Wagner for being a role model for him and his family. Karen Hickman - Thanked Mayor Wagner and the Council for the hard work and support they have provided to the City of Pasadena and Pasadena ISD. Azell Carter - Emergency Management Coordinator. Encouraged everyone to attend the Community Safety Fair and Hurricane Workshop to be held at the Pasadena Convention Center on Saturday, June 7th. Gave information on vendors, games, food, giveaways, and special guest speakers. DOCKETED CITY COUNCIL HEARINGS PRESENTATION OF PROCLAMATIONS. AWARDS AND COMMUNITY EVENTS PROPOSALS FOR CITY BUSINESS PRESENTATION OF MINUTES - May 20, 2025 = 6:00 p.m. Councilmember Estrada moved, seconded by Councilmember Guerrero that the Minutes from the May 20, 2025 Council Meeting be APPROVED. MOTION CARRIED, UNANIMOUS. PRESENTATION OF MINUTES OF SPECIAL MEETING CONTRACT CHANGE ORDERS PROGRESS PAYMENTS (A) Contractor: Mar-Con Services, LLC Estimate No.: Nine (9) Amount: $146,276.61 Project: Red Bluff Road Drainage Improvements Project No.: D066 Ordinance No.: 2024-078 (B) Contractor: SER Construction Partners, LLC Estimate No.: Three (3) Amount: $119,710.47 Project: Dabney Storm Interconnect Project No.: D059 Ordinance No.: 2024-203 (C) Contractor: TC Construction, LLC Estimate No.: Two (2) Amount: $253,334.94 Project: 2025 Citywide Waterline Replacement Project No.: W074 Ordinance No.: 2025-014 City of Pasadena - Council Meeting 3 Minutes: 06-03-25 10:00 a.m. (D) Contractor: Teamwork Construction Services, Inc. Estimate No.: Thirteen & Final (13 & Final) Amount: $21,523.48 Project: Browning Subdivision Drainage Improvements Project No.: D042 Ordinance No.: 2023-172 Councilmember Schoenbein moved, seconded by Councilmember Guerrero that Progress Payments (A), (B), (C) and (D) be APPROVED. MOTION CARRIED, UNANIMOUS. FINANCE RESOLUTION NO. 2927 MISC. CLAIMS & INVOICES Councilmember Guerrero moved, seconded by Councilmember Dow that Finance Resolution 2927 be APPROVED. "Abstain" - Councilmember Dow abstained from voting on any item on Finance Resolution having to do with "Dow Pipeline and Fencing." MOTION CARRIED, UNANIMOUS. PERSONNEL CHANGES (A) REGULAR EMPLOYEES (B) FINANCE DEPARTMENT EMPLOYEES (C) ADMINISTRATION CHANGES IN PERSONNEL (D) INTRODUCTION OF NEW CITY EMPLOYEES Councimember Guerrero moved, seconded by Councilmember Estrada that Personnel Changes (A) be APPROVED. MOTION CARRIED, UNANIMOUS. MAYORAL APPOINTMENTS CITY BOARDS AND COMMISSIONS REPORTS REPORTS OF COMMITTEES MAYOR'S REPORT ORDINANCES FINAL READINGS ORDINANCE 2025-118 - Authorizing and approving a revised Ballfield License Agreement developed for use by the Parks and Recreation Department. City of Pasadena - Council Meeting 4 Minutes: 06-03-25 10:00 a.m. Councimember Guerrero moved, seconded by Councilmember Schoenbein that Ordinance 2025-118 be passed on second and final reading. MOTION CARRIED, UNANIMOUS. ORDINANCE 2025-119 - An Ordinance abandoning, vacating and closing a 0.0553 acre (2,411 Sq. Ft.) portion of a ten foot (10') wide utility easement, out of lot 2, in block 1 of Spencer Highway Gardens, as recorded in volume 22, page 51 H.C.M.R., the same being out of the W.C.R.R. Co. Survey, Section 5, Abstract 928, Pasadena, Harris County, Texas; finding that the public necessity and convenience no longer requires the continued existence of said easement; and quitclaiming City interest in and to said easement to the legal owners of fee simple title abutting the easement and $5,910 as fair market value for the 2,411 sq. ft. tract of land. Councimember Guerrero moved, seconded by Councilmember Schoenbein that Ordinance 2025-119 be passed on second and final reading. MOTION CARRIED, UNANIMOUS. ORDINANCE 2025-120 - An Ordinance abandoning, vacating and closing a fifteen foot (15') wide unimproved public road easement, being the south 428.0 foot of a 15' wide public road easement in lot 4, block 7 of Golden Acres Annex, as recorded in volume 10, page 35, H.C.M.R., the same being out of the W.C.R.R. Co. Survey, section 6, abstract 1108, Pasadena, Harris County, Texas, as described herein; finding that the public necessity and convenience no longer requires the continued existence of said public road easement; and quitclaiming City interest in and to said public road easement to the legal owners of fee simple title abutting the public road easement and $5,136 as fair market value for the 6,420 sq. ft. tract of land. Councilmember Guerrero moved, seconded by Councilmember Schoenbein that Ordinance 2025-120 be passed on second and final reading. MOTION CARRIED, UNANIMOUS. ORDINANCE 2025-121 - An Ordinance abandoning, vacating and relocating a 0.1081 acre (4,707 sq. ft.) portion of a fifteen foot (15') wide drainage easement, out of lot 1, in block 1 of Kingsdale, as recorded in volume 19, page 38 H.C.M.R., the same being out of the W.C.R.R. Co. survey, section 5, abstract 928, Pasadena, Harris County, Texas; finding that the public necessity and convenience no longer requires the continued existence of said easement at this specific location; and that the easement will be relocated to an alternative site to serve the public interest; and quitclaiming city interest in and to said easement to the legal owners of fee simple title abutting the easement and accepting $11,532 as fair market value for the 4,707 sq. ft. tract of land. Councilmember Guerrero moved, seconded by Councilmember Schoenbein that Ordinance 2025-121 be passed on second and final reading. MOTION CARRIED, UNANIMOUS. FIRST READINGS ORDINANCE 2025-122 - An Ordinance granting to ONEOK NGL Distribution System, LLC, the non-exclusive right, privilege, franchise and permit to lay, replace, construct, repair, maintain, operate, and remove an existing 6-inch Arconol pipeline within the City City of Pasadena - Council Meeting 5 Minutes: 06-03-25 10:00 a.m. of Pasadena routed on and across parcels of land and routes of which are shown as attached and in accordance with plans and specifications heretofore filed with the Department of Public Works, and the Department of Planning; prescribing the terms and conditions under which said right, privilege, franchise, and permit is granted; and providing for acceptance. Councilmember Schoenbein moved, seconded by Councilmember Guerrero that Ordinance 2025-122 be passed on first reading only. MOTION CARRIED, UNANIMOUS. ORDINANCE 2025-123 - An Ordinance granting to Air Liquide Large Industries U.S. LP, the non-exclusive right, privilege, franchise and permit to lay, replace, construct, repair, maintain, operate, and remove an existing 10-inch Hydrogen pipeline within the City of Pasadena routed on and across parcels of land and routes of which are shown as attached and in accordance with plans and specifications heretofore filed with the Department of Public Works, and the Department of Planning; prescribing the terms and conditions under which said right, privilege, franchise, and permit is granted; and providing for acceptance. Councilmember Schoenbein moved, seconded by Councilmember Guerrero that Ordinance 2025-123 be passed on first reading only. MOTION CARRIED, UNANIMOUS. EMERGENCY READINGS ISSUANCE OF OBLIGATIONS RESOLUTIONS RESOLUTION 2025-104 - A Resolution amending Resolution 2024-233, to correct the name of the entity nominated as an Enterprise Project to PCI Nitrogen, LLC, as requested by the Office of the Governor Economic Development and Tourism (EDT) through the Texas Economic Development Bank (Bank). Councilmember Guerrero moved, seconded by Councimember Dow that Resolution 2025-104 be passed, approved and adopted. MOTION CARRIED, UNANIMOUS. OTHER BUSINESS EXECUTIVE SESSION ADJOURNMENT BY THE PRESIDING OFFICER Mayor Wagner - Thanked everyone for coming to the meeting. City of Pasadena - Council Meeting 6 Minutes: 06-03-25 10:00 a.m. PRE-COUNCIL MEETING CITY OF PASADENA May 20, 2025 = 5:34 p.m. REVISED MINUTES CALL TO ORDER Mayor Wagner called the Pre-Council Meeting to order. Proceeded to go over the agenda. 19) - (B) RESOLUTIONS: Item (G) = Councilmember Schoenbein questioned if there had been any discrepancies found during the audit. Short question/answer session followed between Councilmember Schoenbein and Lindsay Koskiniemi, City Controller. ADJOURNMENT 5:40 p.m. - Mayor Wagner adjourned the Pre-Council Meeting. RECORD OF PROCEEDINGS CITY OF PASADENA May 20, 2025 - 6:00 p.m. CALL TO ORDER The regular Council Meeting of the City of Pasadena, Harris County, Texas, was called to order by Mayor Wagner. ROLL CALL COUNCIL PRESENT: Mayor Jeff Wagner RUBEN VILLARREAL District A JONATHAN ESTRADA District E PAT VAN HOUTE District D DOLAN DOW District F THOMAS SCHOENBEIN - District H Absent - Councilmembers Bianca Valerio, Emmanual Guerrero and Ornaldo Ybarra Also present at the Council table was Amanda Mueller, City Secretary INVOCATION = Jason Ross, Interim Parks and Recreation Director PLEDGES OF ALLEGIANCE - Councimember Thomas Schoenbein City of Pasadena - Council Meeting 1 Revised Minutes: 05-20-25 6:00 p.m. COMMUNITY INTEREST COMMENTS IN ACCORDANCE WITH CHAPTER 551.0415 OF THE GOVERNMENT CODE Councilmember Schoenbein Welcomed everyone to the meeting. Congratulated the retirees; and thanked them for their service to the city. Noted there were near record- breaking crowds at the Strawberry Festival. Recognized Conrad Puckett in the audience. Wished Mr. Puckett a happy 97th birthday. Councilmember Villarreal - Passed, no comments. Councilmember Van Houte = Passed, no comments. Councimember Estrada Wished Mr. Puckett a happy birthday. Congratulated the retirees. Recognized the Strawberry Festival group for the hard work they do. Noted that early voting for the runoff election will begin on Tuesday, May 27th. Urged everyone to get out and vote. Councilmember Dow - Passed, no comments. CITIZENS WISHING TO ADDRESS COUNCIL Wayne Dolcefino - Spoke on transparency. Dwight Puckett - Spoke on personnel matters. Michelle Paltin - Spoke on comments made at previous meetings. Stephen Alvarez - Spoke on corruption. Jon M. Mathews - Spoke on the city and its people. Robert Jeter III - Spoke on the 14th Amendment. DOCKETED CITY COUNCIL HEARINGS PRESENTATION OF PROCLAMATIONS. AWARDS AND COMMUNITY EVENTS PROPOSALS FOR CITY BUSINESS PRESENTATION OF MINUTES = May 6, 2025 - 10:00 a.m. Councimember Estrada moved, seconded by Councilmember Schoenbein that the Minutes from the May 6, 2025 Council Meeting be APPROVED. MOTION CARRIED, UNANIMOUS. PRESENTATION OF MINUTES OF SPECIAL MEETING - May 13, 2025 - 6:00 p.m. Councilmember Estrada moved, seconded by Councilmember Van Houte that the Minutes from the May 13, 2025 Special Council Meeting be APPROVED. MOTION CARRIED, UNANIMOUS. City of Pasadena - Council Meeting 2 Revised Minutes: 05-20-25 6:00 p.m. CONTRACT CHANGE ORDERS PROGRESS PAYMENTS (A) Contractor: Brooks Concrete, Inc. Estimate No.: Two (2) Amount: $242,741.20 Project: 2025 Annual Sidewalk Improvements Project No.: $143 Ordinance No.: 2025-002 (B) Contractor: Christensen Building Group Estimate No.: Fifteen (15) Amount: $442,347.82 Project: Pasadena Police Annex Building Project No.: P010 Ordinance No.: 2023-247 (C) Contractor: D & W Contractors, Inc. Estimate No.: Three (3) Amount: $2,850.00 Project: 2025 Annual Paving & Drainage Improvements Project No.: D063 Ordinance No.: 2025-003 (D) Contractor: D& W Contractors, Inc. Estimate No.: Three (3) Amount: $140,225.38 Project: 2025 Annual Paving & Drainage improvements Project No.: S142 Ordinance No.: 2025-003 (E) Contractor: DL Glover, Inc. Estimate No.: One (1) Amount: $49,661.25 Project: Strawberry Rd 15-Inch Sanitary Sewer Repair Project No.: WW101 Ordinance No.: 2024-202 (F) Contractor: Polk Mechanical Company Estimate No.: Two (2) Amount: $256,818.25 Project: City Hall Air Handlers & Automation Phase II Project No.: MO55 Ordinance No.: 2024-023 (G) Contractor: SER Construction Partners, LLC Estimate No.: Seven (7) Amount: $1,073,290.38 Project: Shaver St. Paving & Drainage mprovements PH III City of Pasadena - Council Meeting 3 Revised Minutes: 05-20-25 6:00 p.m. Project No.: $135 Ordinance No.: 2024-130 (H) Contractor: SER Construction Partners, LLC Estimate No.: Two (2) Amount: $613,985.72 Project: Dabney Storm Interconnect Project No.: D059 Ordinance No.: 2024-203 (I) Contractor: T Construction, LLC Estimate No.: One (1) Amount: $270,311.10 Project: 2025 Citywide Waterline Replacement Project No.: W074 Ordinance No.: 2025-014 (J) Contractor: Way-Tech, Inc. Estimate No.: Nine (9) Amount: $690,374.68 Project: Construction of Fire Station No. 7 Project No.: F014 Ordinance No.: 2024-113 Councilmember Dow moved, seconded by Councilmember Estrada that Progress Payments (A), (B), (C), (D), (E), (F), (G), (H), (I) and (J) be APPROVED. MOTION CARRIED, UNANIMOUS. FINANCE RESOLUTION NO. 2926 MISC. CLAIMS & INVOICES Councilmember Schoenbein moved, seconded by Councimember Dow that Finance Resolution 2926 be APPROVED. MOTION CARRIED, UNANIMOUS. PERSONNEL CHANGES (A) REGULAR EMPLOYEES (B) FINANCE DEPARTMENT EMPLOYEES (C) ADMINISTRATION CHANGES IN PERSONNEL (D) INTRODUCTION OF NEW CITY EMPLOYEES Councilmember Estrada moved, seconded by Councimember Villarreal that Personnel Changes (A) be APPROVED. MOTION CARRIED, UNANIMOUS. MAYORAL APPOINTMENTS CITY BOARDS AND COMMISSIONS REPORTS City of Pasadena - Council Meeting 4 Revised Minutes: 05-20-25 6:00 p.m. REPORTS OF COMMITTEES MAYOR'S REPORT ORDINANCES FINAL READINGS FIRST READINGS ORDINANCE 2025-118 - Authorizing and approving a revised Ballfield License Agreement developed for use by the Parks and Recreation Department. Councilmember Estrada moved, seconded by Councilmember Schoenbein that Ordinance 2025-118 be passed on first reading only. MOTION CARRIED, UNANIMOUS. ORDINANCE 2025-119 - An Ordinance abandoning, vacating and closing a 0.0553 acre (2,411 Sq. Ft.) portion of a ten foot (10') wide utility easement, out of lot 2, in block 1 of Spencer Highway Gardens, as recorded in volume 22, page 51 H.C.M.R., the same being out of the W.C.R.R. Co. Survey, Section 5, Abstract 928, Pasadena, Harris County, Texas; finding that the public necessity and convenience no longer requires the continued existence of said easement; and quitclaiming City interest in and to said easement to the legal owners of fee simple title abutting the easement and $5,910 as fair market value for the 2,411 sq. ft. tract of land. Councilmember Estrada moved, seconded by Councilmember Schoenbein that Ordinance 2025-119 be passed on first reading only. MOTION CARRIED, UNANIMOUS. ORDINANCE 2025-120 - An Ordinance abandoning, vacating and closing a fifteen foot (15') wide unimproved public road easement, being the south 428.0 foot of a 15' wide public road easement in lot 4, block 7 of Golden Acres Annex, as recorded in volume 10, page 35, H.C.M.R., the same being out of the W.C.R.R. Co. Survey, section 6, abstract 1108, Pasadena, Harris County, Texas, as described herein; finding that the public necessity and convenience no longer requires the continued existence of said public road easement; and quitclaiming City interest in and to said public road easement to the legal owners of fee simple title abutting the public road easement and $5,136 as fair market value for the 6,420 sq. ft. tract of land. Councilmember Estrada moved, seconded by Councilmember Schoenbein that Ordinance 2025-120 be passed on first reading only. MOTION CARRIED, UNANIMOUS. ORDINANCE 2025-121 - An Ordinance abandoning, vacating and relocating a 0.1081 acre (4,707 sq. ft.) portion of a fifteen foot (15') wide drainage easement, out of lot 1, in block 1 of Kingsdale, as recorded in volume 19, page 38 H.C.M.R., the same being out of the W.C.R.R. Co. survey, section 5, abstract 928, Pasadena, Harris County, Texas; finding that the public necessity and convenience no longer requires the continued existence of said easement at this specific location; and that the easement will be relocated to an alternative site to serve the public interest; and quitclaiming city interest in and to said easement to the legal owners of fee simple title abutting the easement and accepting $11,532 as fair market value for the 4,707 sq. ft. tract of land. City of Pasadena - Council Meeting 5 Revised Minutes: 05-20-25 6:00 p.m. Councilmember Estrada moved, seconded by Councilmember Schoenbein that Ordinance 2025-121 be passed on first reading only. MOTION CARRIED, UNANIMOUS. EMERGENCY READINGS ISSUANCE OF OBLIGATIONS RESOLUTIONS RESOLUTION 2025-097 = A Resolution pursuant to Section 2-147 of the Code of Ordinances of the City of Pasadena, Texas, amended by Ordinance 2025-086, the Chief of Police appoints Jeremy Armstrong, Deputy Code Enforcement Inspector as the Code Official. Councilmember Estrada moved, seconded by Councilmember Dow that Resolution 2025- 097 be passed, approved and adopted. MOTION CARRIED, UNANIMOUS. RESOLUTION 2025-098 = Accepting a monetary donation of $300.00 in the form of an H-E-B gift card from H-E-B for use by the Parks and Recreation Department in connection with the 2025 Wheelchair Wind Up Softball Tournament. Councilmember Estrada moved, seconded by Councilmember Dow that Resolution 2025- 098 be passed, approved and adopted. MOTION CARRIED, UNANIMOUS. RESOLUTION 2025-099 = Accepting a monetary donation in the amount of $1,500.00 and an in-kind donation of a portable misting fan, battery and charger valued at $500.00 from TIRR Memorial Hermann for use by the Parks and Recreation Department in connection with the 2025 Wheelchair Wind Up Softball Tournament. Councilmember Estrada moved, seconded by Councilmember Dow that Resolution 2025- 099 be passed, approved and adopted. MOTION CARRIED, UNANIMOUS. RESOLUTION 2025-100 - A Resolution of the City Council of the City of Pasadena, Texas, authorizing and approving an amendment to the Fiscal Year 2025 Budget (passed by Resolution 2024-143 and 2025-051), for the Pasadena Crime Control and Prevention District as approved by the Board members on May 7th, 2025 and illustrated in Exhibit "A". Councilmember Estrada moved, seconded by Councilmember Dow that Resolution 2025- 100 be passed, approved and adopted. MOTION CARRIED, UNANIMOUS. RESOLUTION 2025-101 - Accepting a donation from Petco Love in the amount of $2,184.00 to be deposited in Account No. 006-243051 for the medical care and life saving measures of the shelter animals. Councilmember Estrada moved, seconded by Councilmember Dow that Resolution 2025- 101 be passed, approved and adopted. MOTION CARRIED, UNANIMOUS. City of Pasadena - Council Meeting 6 Revised Minutes: 05-20-25 6:00 p.m. RESOLUTION 2025-102 - A Resolution nominating Kinder Morgan Liquids Terminals, LLC to the Office of the Governor Economic Development and Tourism (EDT) throughi the Texas Economic Development Bank (Bank) as an Enterprise Project. Councilmember Estrada moved, seconded by Councilmember Dow that Resolution 2025- 102 be passed, approved and adopted. MOTION CARRIED, UNANIMOUS. RESOLUTION 2025-103 Accepting and approving the Comprehensive Annual Financial Report of the City of Pasadena, Texas, for the fiscal year ended September 30, 2024, as prepared by the City Controller's Office and audited by Crowe LLP, Certified Public Accountants. Councilmember Estrada moved, seconded by Councilmember Dow that Resolution 2025- 103 be passed, approved and adopted. Councilmember Schoenbein = Commented that the city received an outstanding report. Thanked the City Controller and staff for all their diligent work. MOTION CARRIED, UNANIMOUS. OTHER BUSINESS EXECUTIVE SESSION ADJOURNMENT BY THE PRESIDING OFFICER Mayor Wagner - Thanked everyone for coming to the meeting. City of Pasadena - Council Meeting 7 Revised Minutes: 05-20-25 6:00 p.m, AGENDA rRas jont" REQUEST ORDINANCE RESOLUTION NO: 2025- 2A CAPTION: GRANT NEW PIPELINE FRANCHISE TO BLUEBONNET PIPELINE LLC FOR ONE (1) 6" INCH PIPELINE RECOMMENDATIONS & JUSTIFICATION. : BLUEBONNET PIPELINE LLC HAS MADE A REQUEST FOR A NEW PIPELINE FRANCHISE AND THE RIGHT, PRIVILEGE, AND PERMIT TO LAY, REPLACE, CONSTRUCT, REPAIR, MAINTAIN, OPERATE, AND REMOVE ONE (1) 6" ETHYLENE PIPELINE. COMMENCING AT THE ROAD CROSSING OF CHANNEL CITY ROAD, ETHYL ROAD, N SOUTH STREET, ALL IN THE CORPORATE LIMITS OF THE CITY OF PASADENA, TEXAS. (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED : COUNCIL DISTRICT (S) AFFECTED : D REQUIRES APPROPRIATIONE: See attached Certification Raann A Uasin,h COUNCIL ACTION Robin S.. Green, Jr. DATE:6 6/2/2025 REQUESTING PARTY (TYPED) FIRST READING: : FINAL READING: : BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED : wwko CITY ATTORNEY DATE DATE GAwr DEFERRED : MAYOR ORDINANCE NO. 25 An Ordinance granting to Bluebonnet Pipeline LLC, the non- exclusive right, privilege, franchise and permit to lay, replace, construct, repair, maintain, operate, and remove an existing 6- inch Ethylene pipeline within the City of Pasadena routed on and across parcels of land and routes of which are shown as attached and in accordance with plans and specifications heretofore filed with the Department of Public Works, and the Department of Planning; prescribing the terms and conditions under which said right, privilege, franchise, and permit is granted; and providing for acceptance. WHEREAS, Bluebonnet Pipeline LLC, has made a request for a new non-exclusive pipeline franchise and the non-exclusive right, privilege, franchise and permit to lay, replace, construct, repair, maintain, operate, and remove a 6-inch Ethylene pipeline; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the City of Pasadena, Texas, hereinafter referred to as "City" or "Grantor", does hereby, subject to all of the provisions herein, grant to Bluebonnet Pipeline LLC, hereinafter referred to as "Grantee", for a term of twenty (20) years from the date of this ordinance, and subject to the terms and conditions herein, the non-exclusive right, privilege, franchise, and permit to lay, replace, construct, repair, maintain, operate, and remove a 6-inch pipeline routed on and across parcels of land and routes of which are shown on the plats and the courses, distances and descriptions as attached hereto and incorporated herein on Exhibit "A", all in the corporate limits of the City of Pasadena, Texas. Said pipeline to be constructed in accordance with plans and specifications filed with the Director of Public Works and Director of City Planning, which shall be for the transportation of ethylene, but not for distribution to end use customers in the City; such plans and specifications being Pipelinerran.Airligidelaryeind.s.s.1P-1OintydPline2s pg. 1 subject to the review and approval of the Director of Public Works and Director of City Planning. SECTION 2. That the grant of this franchise is conditioned upon the terms and conditions herein and Grantee's compliance with all applicable federal, state or other regulatory programs that currently exist or may hereafter be enacted by any regulatory agencies with jurisdiction over Grantee. In carrying out any activities authorized under the privileges granted herein, Grantee shall meet accepted industry standards and comply with all laws of any governmental entity or agency with jurisdiction over the pipeline (s) and its operation, including all laws, rules and regulations existing at the effective date of this franchise or that may be subsequently enacted by any governmental entity or agency with jurisdiction over Grantee and/or the pipeline (s) and facilities. Grantee shall operate, maintain, inspect and test its pipeline (s) and facilities in full compliance with the applicable provisions of all federal, state and local laws, regulations and standards, as now enacted or hereafter amended, and other future laws or regulations applicable to Grantee's pipeline(s) and facilities, products and business operations. SECTION 3. That each of the following terms, provisions, and conditions is a material part of the franchise and permit granted, and Grantee by acceptance of this franchise and permit agrees to perform each and every provision and condition: (a) The franchise and permit herein granted shall and does hereby authorize the Grantee to lay, replace, construct, repair, maintain, operate, and remove that certain pipeline routed on and across parcels of land the route of which is shown on the plat and the courses, distances and description in the attached Exhibit "A", incorporated herein for all purposes, upon the approval of the Director of Public Works as to the points at which the pipeline will cross or run along or underneath any street or Pipelinerran.Airtagdaryetnass pg. 2 streets and right-of-way or rights-ot-way within the City of Pasadena; the depth of the line (s) along or underneath the streets shall be at least six (6') feet measured between the top of the line and natural surface of the ground as evidenced by those detailed plan(s) and profile engineering drawings on file with the Planning and Public Works Departments of the City of Pasadena unless the Director of Public Works recommends in writing that at any particular point or points a lesser depth may be permitted; and further provided that if at any particular point or points the said Director of Public Works recommends that a greater depth be required, such recommendation will be complied with by the Grantee, and further provided that the means and manner of construction must meet with the approval of the Director of Public Works and his recommendations, being in accordance with all current, and subsequently adopted police power right-of-way management ordinances and regulations of the City. (b) The Grantee shall be required to submit to the Director of Public Works and to the Director of City Planning, a plan accurately showing the proposed location, course and alignment of the proposed pipeline(s); and a written application, which shall show the time, manner, means and method of the proposed construction, the particular commodity proposed to be transported through the pipeline(s) and the maximum pressure and maximum temperature under which the same may bel pumped or otherwise caused or permitted to flow through any and all of the particular portions of the pipeline(s). Said plans shall consist not only of the plan but also of a suitable profile, accurately showing the location of all cutoff valves relative to the location of all streets or alleys across or along which the proposed pipeline shall be laid. Two copies thereof along with two copies of the application shall be presented to the Director of City Planning and two copies thereof and two copies of the application shall be presented to the Pipelinerzan.Airtigidilargeind.s.IP-10intydPlineas pg. 3 Director of Public Works. One of the copies of the plan and profile delivered to the Director of Public Works shall be a producible negative. No construction shall begin until such plans have been reviewed and approved by the Director of Public Works and Director of City Planning. (c) When found necessary by the City Council or the Director of Public Works, any such lines or other structures shall be lowered, relocated, or removed promptly, and in all cases no later than 180 days from written request to do SO being made by said Director of Public Works. All such modifications shall be at the sole expense of the Grantee. Any additional cost to the City due to any delays in removal or relocation of such lines shall be paid to the City by Grantee. It is the purpose of this subsection that improvements, changes, and alterations in either existing or future streets, street rights-of-way, water lines, sanitary sewer lines, or storm sewers, shall in no way be hampered, delayed or add additional cost to the City by the lines or other structures of the Grantee. (d) Grantee understands and acknowledges that this is a non- exclusive franchise and the limited rights and privileges granted under said franchise shall in no manner prohibit or limit Grantor's power to perform work upon its rights-of-way, public properties or make any necessary changes, relocations, repairs, maintenance, establishment, improvements thereto, or from using any of the rights-of-way and public properties or any part thereof as the Grantor may deem fit from time to time, including the dedication, establishment, maintenance and improvement of all new rights-of- way and other public properties of every type and description. (e) Grantee accepts any privileges granted by Grantor under this franchise agreement, to the franchise area, public rights-of-way and other public property in an "as is" condition. Grantee agrees that City has made no representations, implied or express Pipelinerran.Airtigadtaryeina.s.1P-1DintydPline2s pg. 4 warranties or guarantees on the suitability, security or safety of Grantee's location of facilities or the facilities themselves in public property or rights-of-way, or possible hazards or dangers arising from other uses of the public rights-ot-way or other public property by the City or the general public. Grantee shall remain solely and separately liable for the function, testing, maintenance, repair, and/or replacement of the pipeline (s) or other activities permitted under this franchise. (f) The grantee shall pay to the City of Pasadena an initial franchise fee in the amount of Three Thousand Five Hundred Dollars ($3,500.00) per pipeline approved by this Ordinance and shall thereafter pay to said City subsequent fees thereafter in the amount of One Thousand Five Hundred Dollars ($1,500.00) per such pipeline per year, and all amounts as may subsequently be set by ordinance or otherwise by the City of Pasadena. After payment of the initial fee, all subsequent fees shall be due and payable on December 31st of each subsequent year for the term of the franchise. Advance payment of the franchise fee for more than one (1) year shall not be permitted. (g) By granting this franchise, City assumes no risks or liabilities, all of which shall be solely and separately borne by Grantee. Nothing in this franchise shall be deemed to impose any duty or obligation upon City to determine the adequacy or sufficiency of Grantee's plans and designs or to ascertain whether Grantee's proposed or actual construction, reconstruction, testing, maintenance, repairs, replacement or removal is adequate or sufficient or in conformance with the plans and specifications provided to City for review. Grantee agrees and covenants, at its sole cost and expense, to protect, support and keep safe from harm its pipeline (s) and/or facilities, or any part thereof, to protect the public health and safety and to be solely and completely responsible for workplace safety and safe working practices on its Pipelinerran.Airligidelargeind.s.1P-1DintydPline2s pg. 5 job sites within the franchise area, including the safety of all persons and property. (h) IN CONSIDERATION OF THE GRANTING OF THIS NON-EXCLUSIVE FRANCHISE, GRANTEE HEREBY AGREES THAT CITY SHALL NOT BE LIABLE OR RESPONSIBLE FOR, AND DOES HEREBY RELEASE, INDEMNIFY AND HOLD HARMLESS THE CITY, ITS OFFICERS, AGENTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL SUITS, ACTIONS, CLAIMS, JUDGMENTS, FINES, PENALTIES, COSTS AND EXPENSES FOR INJURY TO ANY PERSON OR PERSONS, OR DAMAGES TO ANY PROPERTY BROUGHT OR MADE FOR OR ON ACCOUNT OF ANY DEATH, INJURIES TO OR DAMAGES RECEIVED OR SUSTAINED BY ANY PERSON OR PERSONS OR FOR DAMAGE TO OR LOSS OF PROPERTY ARISING OUT OF OR OCCASIONED BY, WHETHER DIRECTLY OR INDIRECTLY, THE CONSTRUCTION, OPERATION OR MAINTENANCE OF SAID PIPELINE (S) . GRANITEE SHALL ADDITIONALLY INDEMNIFY, DEFEND AND HOLD HARMLESS GRANTOR, ITS OFFICERS, AGENTS, EMPLOYEES AND VOLUNTEERS FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES, CAUSES OF ACTION, SUITS AND LIABILITY, INCLUDING COSTS AND ATTORNEYS AND EXPERTS' FEES INCURRED BY CITY IN DEFENSE OF, ARISING DIRECTLY OR INDIRECTLY FROM GRANTEE': S VIOLATION OF ANY ENVIRONMENTAL LAWS APPLICABLE TO THE PIPELINE OR FROM ANY RELEASE OF A HAZARDOUS SUBSTANCE ON OR FROM THE PIPELINE AND/OR FRANCHISE AREA OR FROM ANY OTHER ACTIVITY BY GRANTEE, ITS OFFICERS, AGENTS OR EMPLOYEES RELATED TO THIS FRANCHISE AND THE LIABILITY RESULTING THEREFROM. SAID INDEMNITY IS TO INCLUDE BUT IS NOT LIMITED TO LIABILITY FOR ALL COSTS OF REMOVAL AND REMEDIATION OF HAZARDOUS SUBSTANCES AND ALL DAMAGES TO NATURAL RESOURCES CAUSED BY ANY ENVIRONMENTAL CONTAMINATION, AS DETERMINED BY CITY IN ITS SOLE DISCRETION, INCLUDING THE COSTS OF DIRECT AND INDIRECT DAMAGES, LIABILITY FOR ANY OTHER COSTS OF RESPONDING TO AND MITIGATING THE HAZARDOUS SUBSTANCES, LIABILITY FOR ANY COSTS OF INVESTIGATION, ABATEMENT, CORRECTION, CLEAN UP, FINES, PENALTIES OR OTHER DAMAGES ARISING UNDER ANY ENVIRONMENTAL LAWS, AND LIABILITY FOR ANY AND ALL BODILY Pipelinerran.Airtigidtlargetndt.s.IP-10inlydPline,s pg. 6 OR PERSONAL INJURY, PROPERTY DAMAGE OR ECONOMIC LOSS ARISING UNDER ANY STATUTORY OR COMMON-LAW THEORY. GRANTEE SHALL, IF ANY ACTION OR PROCEEDING IS BROUGHT AGAINST CITY RELATED TO THE PIPELINE OR THE APPURTENANT FACILITIES, DEFEND CITY AT GRANTEE' S SOLE COST AND EXPENSE. (1) THE FRANCHISE AGREEMENT SHALL CONSTITUTE A NET LEASE AND NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, IT IS INTENDED THAT THE FRANCHISE PAYMENT AND ALL OTHER AMOUNTS DUE AND PAYABLE UNDER THE FRANCHISE SHALL BE PAID WITHOUT COUNTERCLAIM, SETOFF, DEDUCTION OR DEFENSE OF ANY KIND AND WITHOUT ABATEMENT, SUSPENSION, DEFERMENT, DIMINUTION OR REDUCTION OF ANY KIND, AND THE GRANTEE' S OBLIGATION TO PAY ALL SUCH AMOUNTS THROUGHOUT THE FRANCHISE TERM IS ABSOLUTE AND UNCONDITIONAL. (2) ANY ENVIRONMENTAL LIABILITY ACCRUING FROM GRANTEE'! S USE OF ITS PIPELINE SHALL BE EXCLUSIVELY BORNE BY THE GRANTEE AS THOUGH IT WERE THE OWNER OF THE PREMISES WHEREIN ALL ENVIRONMENTAL LIABILITY HAS OCCURRED AND RESULTED. (3) GRANTEE SHALL PROVIDE AND MAINTAIN GENERAL AND ENVIRONMENTAL LIABILITY INSURANCE COVERAGES APPLICABLE TO THIS FRANCHISE, AND FOR THE TERM OF THE FRANCHISE, NAME THE CITY OF PASADENA AS AN ADDITIONAL INSURED. SUCH COVERAGES SHALL AT ALL TIMES PROVIDE NO LESS THAN TWO MILLION DOLLARS ($2,000,000.00) IN COMMERCIAL GENERAL LIABILITY COVERAGE PER OCCURRENCE AND FIVE MILLION DOLLARS ($5,000,000.00) IN ENVIRONMENTAL/POLLUTION LIABILITY COVERAGE, COVERING LIABILITY FROM SUDDEN AND ACCIDENTAL OCCURRENCES AS WELL AS UNDISCLOSED ENVIRONMENTAL HAZARDS. GRANTEE FURTHER RELEASES, ACQUITS, AND FOREVER DISCHARGES THE CITY, ITS OFFICERS, AGENTS AND EMPLOYEES FROM ANY AND ALL CLAIMS, DEMANDS, RIGHTS OR CAUSES OF ACTION OF WHATSOEVER CHARACTER OR Pipelinerzan.Airligidearyeind.s.1P-1OintydPline2s pg. 7 NATURE ARISING FROM OR BY REASON OF ANY AND ALL BODILY OR PERSONAL INJURIES, INCLUDING DEATH AND MENTAL ANGUISH, DAMAGE TO PROPERTY AND THE CONSEQUENCES THEREOF, WHICH MAY BE SUSTAINED BY THE GRANTEE, HIS OFFICERS, EMPLOYEES OR AGENTS AND WHICH ARE CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE OF THE CITY, ITS OFFICERS, AGENTS OR EMPLOYEES. GRANTEE SHALL KEEP AND HOLD HARMLESS THE CITY, ITS OFFICERS, AGENTS AND EMPLOYEES FROM ANY AND ALL COSTS, LIABILITY, DAMAGE OR EXPENSE OF ANY NATURE AND HOWSOEVER CAUSED, CLAIMED OR RECOVERED BY ANYONE BY REASON OF INJURY TO OR DEATH OF ANY PERSON OR PERSONS OR DAMAGE TO OR DESTRUCTION OF PROPERTY CAUSED BY OR RESULTING FROM THE NEGLIGENCE OF THE CITY, ITS OFFICERS, AGENTS AND EMPLOYEES ARISING FROM OR IN CONNECTION WITH GRANTEE'S FRANCHISE HEREUNDER. IT IS THE EXPRESSED INTENTION OF BOTH CITY AND THE GRANTEE THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS INDEMNITY BY THE GRANTEE TO INDEMNIFY AND PROTECT THE CITY FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE CITY, ITS OFFICERS, AGENTS OR EMPLOYEES WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, ACTIVE OR PASSIVE. FOR PURPOSES OF THIS INDEMNIFICATION PROVISION, ACTS AND/OR OMISSIONS OF THE GRANTEE' S AGENTS AND EMPLOYEES SHALL BE CONSIDERED THE ACTS AND OMISSIONS OF THE GRANTEE. THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE TERMINATION, EXPIRATION OR CANCELLATION OF THIS AGREEMENT. (i) Grantee shall refill and repair with its own contractor or employees all excavations made by it within the right-of-way of any street or alley in the laying, replacing, constructing, repairing, maintaining, operating, and removing of such pipeline(s) or any part thereof; and if after once refilling such excavation the earth within such excavated area settles sO as to leave a depression, the Grantee shall make further necessary fills from time to time as ordered by the Director of Public Works or by the City Council. Grantee will repair all portions of any street Pipelinerran.Airtiqudetargeind..IP-1DintydPlineas pg. 8 or alley along which its lines are laid and place the same in as good a state of repair and condition as they were in at the time of construction, or when repair or removal was commenced, such repairs to be to the satisfaction of the City Council. (j) All such work of repairing or refilling shall be done under plans and specifications approved by the Director of Public Works and subject to his approval of the completed work; and any excavation along any such street or alley shall be replaced with materials of the same kind as those removed unless the Director of Public Works approves of some other type of fill or material. All roadway crossings shall be bored. Any excavations within the right of way shall be back filled and compacted in 12" lifts to 95% Proctor density. Grantee shall notify the Director of Public Works before commencing at any time an excavation in any portion of any street or alley and shall not wholly close any street or alley but shall at all times maintain a route of travel along and within such roadway area which shall include any sidewalk area, except that in cases of emergency the Director of Public Works, the Mayor, or the City Council may authorize a temporary closing of any street, alley, or sidewalk in order to take care of any break or leakage in the pipeline if in the opinion of the Director of Public Works, the Mayor, or the City Council, such closing is necessary to protect the safety of the public. (k:) If the Grantee fails to commence or thereafter to diligently prosecute any such repair, refilling or other work sO required to be done by it within a reasonable time after being notified by the Director of Public Works, City may cause such work to be done at the expense of the Grantee and may recover all such expenses from Grantee, together with all costs and reasonable attorneys' fees. (1) The Grantee shall provide the necessary automatic pressure release (cutoff) valves which prevent the flow of the commodity in either direction if there should be any break or rupture within Pipelinerran.Airliguularyeindts.s.1P-10intyaPlineas pg. 9 the right-of-way limits of any street or public property. Such valves must meet with the approval of the Director of Public Works. (m) Grantee shall comply with all requirements of state and federal law governing pipelines transporting hazardous materials including, but not limited to federal regulations concerning inspections, investigations and record keeping. More specifically, Grantee agrees that: (1) Officers, employees, or agents authorized by the Associate Administrator for Pipeline Safety, Pipeline and Hazardous Materials Safety Administration (PHMSA), upon presenting appropriate credentials, are authorized to enter upon, inspect, and examine, at reasonable times and in a reasonable manner, the records and properties of persons to the extent such records and properties are relevant to determining the compliance of such persons with the requirements of federal statute 49 U.S.C. 60101 et seg., or regulations or orders issued thereunder. (2) Inspections are ordinarily conducted pursuant to one of the following: (a) Routine scheduling by the Regional Director of the Region in which the facility is located; (b) A complaint received from a member of the public; (c) Information obtained from a previous inspection; (d) Report from a State Agency participating in the Federal Program under 49 U.S.C. 60105; (e) Pipeline accident or incident; or (f) Whenever deemed appropriate by the Administrator, PHMSA or his designee. (3) If, after an inspection, the Associate Administrator of the federal Office of Pipeline Safety (OPS) believes that further information is needed to determine appropriate action, the Associate Administrator, OPS may send the owner or operator a Pipelinerran.Airliguidtargeina.s.1P-1OinydPlinezs pg. 10 "Request for Specific Information" to be answered within 45 days after receipt of the letter. (4) To the extent necessary to carry out the responsibilities under 49 U.S.C. 60101 et seg. the Administrator, PHMSA or the Associate Administrator, OPS may require testing of portions of pipeline facilities that have been involved in, or affected by, an accident. However, before exercising this authority, the Administrator, PHMSA or the Associate Administrator, OPS shall make every effort to negotiate a mutually acceptable plan with the owner of those facilities and, where appropriate, the National Transportation Safety Board for performing the testing. (5) If a representative of the DOT investigates an incident involving a pipeline facility, OPS may request that the operator make available to the representative all records and information that pertain to the incident in any way, including integrity management plans and test results, and that the operator afford all reasonable assistance in the investigation. (6) When the information obtained from an inspection or from other appropriate sources indicates that further OPS action is warranted, the OPS may issue a warning letter under $190.205 or initiate one or more of the enforcement proceedings prescribed in $$190.207 through 190.235 of the Code of Federal Regulations. Furthermore, Grantee agrees that Grantee shall maintain the following records for transmission lines for the periods specified: (a) The date, location, and description of each repair made to pipe (including pipe-to-pipe connections) must be retained for as long as the pipe remains in service. (b) The date, location, and description of each repair made to parts of the pipeline system other than pipe must be retained for at least 5 years. However, repairs Pipelinerran.Airtigdearyeind.tP-1DintydPline2s pg. 11 generated by patrols, surveys, inspections, or tests required by subparts L and M of Title 49, part 192 Code of Federal Regulations must be retained in accordance with paragraph (3) of this section. (c) A record of each patrol, survey, inspection, and test required by subparts L and M of Title 49, part 192 Code of Federal Regulations must be retained for at least 5 years or until the next patrol, survey, inspection, or test is completed, whichever is longer. (7) If federal or state regulators perform an investigation, Grantee shall share the results with the City within sixty (60) days. (n) Grantee shall have in place, at all times during the term of this franchise, a system for remotely monitoring pressures and flows across the franchise area. The remote monitoring must be able to accurately detect pipeline ruptures. In the event of any leak, spill or rupture, Grantee shall notify Grantor within one (1) business day of its observation or detection of any uncontained leak, spill or rupture from its pipeline (s) and/or facilities and be solely responsible for all necessary costs incurred by Grantor in responding to any rupture, spill or leak from Grantee's pipeline (s) and/or facilities, including but not limited to detection and removal of any contaminants from air, earth or water, and all remediation costs. In the event of any leak, spill or rupture from Grantee's pipeline(s) and/or facilities affecting the franchise area, where the cause is not reasonably apparent and where federal or state regulators do not investigate, City may demand the occurrence be investigated by an independent pipeline consultant selected by City. Grantee shall be solely responsible for all costs and expenses associated with investigating the occurrence and reporting the findings. Grantee shall meet and confer with the independent consultant following the consultant's Pipelinerran.Airtiqudtlargetna.s.IP-1OinsydPline2s pg. 12 investigation to address whether any modifications or additions to Grantee's pipeline(s) and/or facilities may be warranted. If the consultant recommends Grantee make modifications or additions, Grantee covenants to consider said recommendations in good faith, and if declining to following the recommendations, Grantee shall provide to City a written report explaining its reasoning for not following said recommendations. Any dispute between City and Grantee regarding implementing recommendations from the Consultant shall be brought before a mediator, selected upon mutual agreement of the Parties, if unable to be resolved by the Parties through mutual consideration, discussion and negotiation. If unable to reach a resolution of the dispute through mediation, either Party may then proceed to any available judicial remedies. SECTION 4. That the limited right, privilege, permission, and non-exclusive franchise hereby granted is subject to the existing Charter and ordinances of the City of Pasadena and such future charters and ordinances which may be hereafter passed, and the right is expressly reserved by the City of Pasadena to amend or otherwise change this ordinance when deemed advisable. The term of this franchise and permit shall be for a period of twenty (20) years from the date of passage of this ordinance, however, the City Council of the City of Pasadena or other governing body reserves the right at all times to change the terms of this ordinance, and if public necessity and convenience should require the removal of these lines, then, in that event, the City Council of the City of Pasadena reserves the absolute right to terminate the rights granted herein. Provided, however, such termination shall be by ordinance and shall not become effective until the Grantee has been given sixty (60) days' written notice by registered mail, addressed as follows: Pipelinerran.Airligudtlasyeindt.s.S.1P-1OintydPlineas pg. 13 Bluebonnet Pipeline LLC Attn: Marc Tausend Agent and Attorney-in-Fact 1100 Louisiana St; Attn: Land Department Houston, Texas 77002 Ph: 713-381-8368 SECTION 5. No transfer of this franchise and permit shall be effective unless it be in writing, in duplicate, signed by the Transferor and by the Transferee, filed with the City Secretary, and the transferee pays a franchise transfer fee of One Thousand Dollars ($1,000.00) per pipeline to the City of Pasadena. The fees for subsequent years shall be payable by the transferee under the same conditions as they had been for the transferor. After consideration of said transfer and the recommendation of the Director of Public Works, the City Council may consider approval by ordinance of the application for transfer. Before any such transfer or attempted transier shall be valid and have any force or effect it must be approved by City Council. If not approved by the City Council, the transfer or attempted transier shall be null and void. SECTION 6. The Grantee shall file its written acceptance, attached as Exhibit "B", of this franchise and permit with the City Secretary of the City of Pasadena within thirty (30) days from the date of passage hereof, and shall be bound by all of the terms and conditions herein. The franchise and permit granted shall commence and inure to the benefit of the Grantee, effective immediately, with the filing of such written acceptance by Grantee. The Grantee shall not commence any work or construction of any type within the right-of-way limits of any street or public property until the final passage and acceptance of this franchise and permit and approval of its completed application and permit by the Director of Public Works. The City Secretary shall give written notice to the Director of Public Works and to the Legal Department upon the Pipelinerran.Airtiqudtaryetnts.S.1P-1intydPlinezs pg. 14 final acceptance of this franchise and permit by the Grantee; further provided that like notice be given upon Grantee's failure to accept. SECTION 7. That Bluebonnet Pipeline LLC, understands and agrees that the permit fee specified under this Ordinance is subject to adjustment by the City of Pasadena to conform to a fee which applies generally to pipeline(s) in the City, as specified in a blanket ordinance which is enacted by the City of Pasadena in the future, provided that if Bluebonnet Pipeline LLC, its successors and assigns, is not making sales from the pipeline in the City, the fee shall not exceed an amount calculated to compensate the City for its reasonable cost associated with such pipeline in the City. SECTION 8. Grantee shall at all times by separate instrument keep the City apprised of valid and functioning emergency and non- emergency address and telephone number (s) by which the City may contact the Grantee when necessary. Such contact information shall be kept current and updated by Grantee in writing sent to the following: 1) City Controller P. O. Box 672 Pasadena, Texas 77501 2) Director of Public Works P. O. Box 672 Pasadena, Texas 77501 3) Fire Chief P. O. Box 672 Pasadena, Texas 77501 (713) 475-5554 Such notice shall be made within a reasonable time after the pipeline transfer, company name change, or other event causing such change but, in no event shall notification to City be more than thirty (30) days after the event causing the change has Pipelinerran.Airtaguidelaryeinat.S.1P-1OintydPlineas pg. 15 occurred. Failure to timely apprise City as required by this section shall result, upon approval by the City Council of the City of Pasadena, Texas, in a penalty of $100 per day for every day the notification is past thirty (30) days after the event causing the change has occurred. SECTION 9. Grantee acknowledges that failure to pay any fees required by this franchise agreement within thirty (30) days of when due and payable shall result in the possible revocation of this franchise agreement. In addition, Grantee agrees that failure to pay any fee amount within thirty (30) days of when due and payable shall require Grantee to pay, in addition to such fee, an amount equal to ten (10) percent of such fee per month until paid, plus all costs of collection including reasonable attorney's fees. Grantee further acknowledges and agrees that City possesses the jurisdictional and legal authority to issue this franchise to Grantee. SECTION 10. That pursuant to the requirements of House Bill 1295, 84th Legislative Session, this contract is contingent upon the business entity's completion of the required Form 1295, Certificate of Interested Parties, if applicable. SECTION 11. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. Pipelimerran.Airtigudtasyeindt.s.1P-10intydPlineas pg. 16 PASSED ON FIRST READING by the City Council of the City of Pasadena, Texas in regular meeting in the City Hall this the day of A.D., 2025. APPROVED this the day of A.D., 2025. JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS PASSED ON SECOND AND FINAL READING by the City Council of the City of Pasadena, Texas in regular meeting in the City Hall this the day of A.D., 2025. APPROVED this the day of A.D., 2025. THOMAS SCHOENBEIN, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS Pipelinerran.Airtiquictaryeina.s.1P-1OintydPlineas pg. 17 ORDINANCE NO. TO THE HONORABLE MAYOR AND CITY COUNCIL OF THE CITY OF PASADENA: The Company for itself, its successors and assigns, hereby accepts the attached ordinance and agrees to be bound by all of its terms and provisions. Bluebonnet Pipeline LLC ATTEST: BY: Secretary President Dated the day of A.D., 2025. THE STATE OF COUNTY OF This instrument was acknowledged before me on 2025, by the of a corporation, on behalf of said corporation. NOTARY PUBLIC IN AND FOR THE STATE OF My Commission expires: Printed Name: THE STATE OF TEXAS COUNTY OF HARRIS I, AMANDA F. MUELLER, the duly appointed, qualified acting City Secretary of the City of Pasadena, Texas, hereby certify that the above and foregoing Acceptance was received and filed in the office of the City Secretary of the City of Pasadena on the day of 2025. Executed under my hand and the official seal of the City of Pasadena, Texas, at said City, this day of A.D., 2024. AMANDA F. MUELLER CITY SECRETARY CITY OF PASADENA, TEXAS Pipelinerran.Airtiguidelargernan.s.IP-TAinMAPIs 1 pg. 18 EXHIBIT "B" 0 - EST. 1893 MAYOR JEFF WAGNER Engineering Department June 2, 2025 Ms. Amanda Mueller City Secretary City of Pasadena Pasadena, TX 77502 RE: Request for a New Pipeline Franchise Agreement/ Bluebonnet Pipeline LLC/ New (1) 6" Ethylene Pipeline Dear Ms. Mueller: This letter is for the purpose of meeting the requirements of Section 27-41 of the Code of Ordinances of the City of Pasadena, which states as follows: Sec. 27-41. Recommendation of directors of public works and planning as to granting or denying. The director of public works and the director of planning shall report to the city council upon their examination of an application and plans filed pursuant to this division (including such changes in the plans as the applicant may have made upon their suggestion) with their recommendations as to the granting or denying of the application. They shall, in their report and recommendation, state whether the depth or depths at which the pipeline is proposed to be laid through undeveloped or unplatted areas is, to the extent economically feasible, consistent with the probable future development of such areas and with the probable location of and opening of future streets and the probable laying of water, sanitary sewer and storm sewer lines incident to such probable future development. Therefore, pursuant to such ordinance, as the Public Works Director for the City of Pasadena, Texas, I am hereby reporting upon my examination of the application and site plan filed pursuant to the ordinances of the City of Pasadena in regard to the application for a new pipeline franchise agreement by Andrew McKay on behalf of Bluebonnet Pipeline LLC, for the installation of a new 6" inch Pipeline that will transport Ethylene within the City of Pasadena. It is my recommendation that the pipeline franchise requested be granted by the Pasadena City Council. Furthermore, I state that the depth or depths at which the pipeline is going to be laid was reviewed and approved. The portions of the pipeline that are laid across undeveloped or unplatted areas are, to the extent economically feasible, consistent with the probable future development of such areas and with the probable location of and opening of future streets and the probable laying of water, sanitary sewer and storm sewer lines incident to such probable future development. Please let me know if you have any questions. rkis J., Mn,h. Robin S. Green, Jr., PE Public Works Director RG: MT Cc: Andrew McKay City of Pasadena, Texas P.O. Box 672 Pasadena, TX: 77501 713-477-1511 www.pasadenatxgov - o EST. 1893 4 D MAYOR JEFF WAGNER Planning Department June 3, 2025 City Secretary City of Pasadena Pasadena, TX 77506 RE: Request for a new Pipeline Franchise Request/Bluebonnet Pipeline, LLC/New 6" Ethylene Pipeline Dear City Secretary: This letter is for the purpose of meeting the requirements of Section 27-41 of the Code of Ordinances of the City of Pasadena, which states as follows: Sec. 27-41. Recommendation of Directors of Public Works and Planning as to granting or denying. The Director of Public Works and the Director of Planning shall report to the city council upon their examination of an application and plans filed pursuant to this division (including such changes in the plans as the applicant may have made upon their suggestion) with their recommendations as to the granting or denying of the application. They shall, in their report and recommendation, state whether the depth or depths at which the pipeline is proposed to be laid through undeveloped or unplatted areas is, to the extent economically feasible, consistent with the probable future development of such areas and with the probable location of and opening of future streets and the probable laying of water, sanitary sewer and storm sewer lines incident to such probable future development. Therefore, pursuant to such ordinance, as the Planning Director for the City of Pasadena, Texas, I am hereby reporting upon my examination of the application and site plan filed pursuant to the ordinances of the City of Pasadena in regard to the application for a new pipeline franchise agreement from Andrew McKay on behalf of Bluebonnett Pipeline, LLC for the installation of a 6 inch ethylene pipeline, it is my recommendation that the pipeline franchise requested be granted by the Pasadena City Council. The portions of the pipeline that are laid across undeveloped or unplatted areas are, to the extent economically feasible, consistent with the probable future development of such areas and with the probable location of and opening of future streets and the probable laying of water, sanitary sewer and storm sewer lines incident to such probable future development. Please let me know if you have any questions. Sincerely, Malisa lamez Mélissa Tamez Planning Director Cc: Jay Dale City of Pasadena, Texas P.O. Box 672 Pasadena, TX7 77501 713-477-1511 wwwpasadenatexasnet RECETV APR 2 3 2025 BY: Controller's Office Interoffice Memorandum TO: Legal Department DATE: April 22, 2025 CC: Robin Green - Director of Public Works CC: Melissa Tamez - Director of Planning FROM: Shannon Lowery SUBJECT: Pipeline Franchise New Ordinance Request = Bluebonnet Pipeline LLC Please find attached a copy of a request letter from Bluebonnet Pipeline LLC requesting a new Pipeline Franchise for (1) 6" Ethylene pipeline. Also received, check 6897 in the amount of $3500 to pay for the new Ordinance fee. Please proceed in your usual manner. Snovwnu Pouruz Shannon Lowery Controller's Office Page 1 of 1 Land Department 12.028 1100 Louisiana Street Houston, Texas 77002 713-381-8368, (Office) 713-557-9665 (Cell) mtausend@eprd.com From: Michael Walker MichaeWalkerePinnaclelanderoupcom> Sent: Thursday, May 1, 2025 3:30 PM To: Tausend, Marc MausendPeproacomy: Stephens, Scheri <nschmidteeprodcom> Cc: drewmcavyyahoo.com: Monica Semmes <MonicasePinnarclelndgroup.com> Subject: EXTERNAL) FW: Next Wave. City of Pasadena House Bill 1295-Pipeline request for Bluebonnet Pipeline LLC Importance: High Use caution with links/attachments) Marc/Scheri, Time sensitive, the city of Pasadena is requiring a HB1295 from like the port of Houston does when they issue their license agreements. Can you confirm the below in red text and order a HB1295 for the city of Pasadena? We have received your request for a renewal pipeline franchise, and we require the following information: 1 Contact Person and Title: Marc D. Tausend, Agent and Attorney-in-Fact CORRECT 2. Mailing Address 1100 Louisiana Street, Attn: Land Department, Houston, Texas 77002 CORRECT 3. Phone Number 713-381-8368 CORRECT 4. Title of Authorized Representativel Representative to sign. Marc D. Tausend, Agent and Attorney-in-Fact CORRECT 5.HB 1295 Form- See request above Please see below for information regarding your 1295 form. This is the only method that is acceptable by the State for submission of the form. Make sure to enter "City of Pasadena", when prompted to name the governmental entity with whom your firm is contracting. In the case of your firm's contract, when prompted for the identification number and description, enter "2025-" and Bluebonnet Pipeline LLC / New Pipeline Franchise Request/6" Ethylene Pipeline. It is imperative that at least the faxed/emailed copy be received by the City no later than 8:00 AM CST on May 5th, 2025, to ensure the successful approval of your contract with the City. Any item approved by the Council will be subject to completion of the required form. Failure to submit this form will result in delaying the franchise request. htps/honsehiesstale.stalelkushwhalsnewlal. info form1295.htm Michael Walker <image001.png> Project Manager 337-739-0535 Cell From: Andrew McKay rewmcayPahoo.om Sent: Tuesday, April 29, 2025 3:45 PM To: Michael Walker MichaelWalerePinadlelandgroupcom> Subject: Next Wave. City of Pasadena House Bill 1295-Pipeline request for Bluebonnet Pipeline LLC Michael, PINNACLE RESOURCES GROUP LLC A FULL SERVICE LAND-COMPANY Andrew, Please see enclosed, containing: 1. Check for $3,500 for the City of Pasadena 2. 11x17" Copy of our Proposed Plans for a 6" Ethylene Pipeline 3. USB containing our Plans for a 6" Ethylene Pipeline. Please let us know if you need anything additional. -Josh Menard (337) 654-2350 Bluebonnet Pipeline LLC P.O. Box 4324 Houston, Texas 77210-4324 713.381.6500 wwantepisprodluctscon April 15, 2025 City of Pasadena Texas, Attention, City. Attorney 1149 Ellsworth Drive Pasadena, TX 77506 RE: Bluebonnet Pipeline LLC's proposed road crossing of Channel City Road, Ethyl Road, N South Street and Request for Ordinance from City of Pasadena. Bluebonnet Pipeline LLC is requesting approval to install a 6" Ethylene Pipeline under Channel City Road, Ethyl Road, & N South Street, to provide Ethylene to multiple refinery end users in The City of Pasadena, TX, using the best industry standards and practices for pipeline construction and safety. See attached Next Wave Ethylene Pipeline Plans for full scope of work to be completed within the Extra- Territorial Jurisdiction of the City of Pasadena, Texas. Bluebonnet Pipeline LLC comes now to request the passage of an ordinance granting a trunk line franchise. Please see accompanying Next Wave Ethylene Pipeline Proposed Plans for Project Details with regards to the proposed location, course and alignment of the proposed pipeline. Information requested in City of Pasadena, TX Code Chapter 27 (Section 27-40). is listed below: -Owner: Bluebonnet Pipeline LLC -Mailing Address: 1100 Louisiana Street, Houston, TX 77002 -The 24 Hour Number is 1-832-501-4334 or 1-800-277-9376 -The Pipeline will Transport Ethylene -Depth Requirement: 48" Minimum within City of Pasadena City Limits and 72" at all Road Crossings -Maximum Pressure is 2160 PSIG -Maximum Pressure is 100F. -The proposed pipeline crossing will be constructed 6 minimum below Channel City Road, Ethyl Road, N South Street. -The Nearest Valves are 3/4 Mile from Channel City Road on the West, 1/4 Mile from Ethyl Road on the East, 1/4 Mile from N South Street on the West, 3/4 Mile from Channel City Road on the West Proposed Construction is Q3 Q4 2025 Should you have any questions, please feel from to contact me at 1-713-381-8368 or email at mtausend@eprodcom Sincerely, ha . / : Marc D. 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RECOMMENDATIONS & JUSTIFICATION: The ExxonMobil Community Grant will be used by Neighborhood Network for Team Up to Clean Up 2025, authorized under resolution No.2025-064. (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED: COUNCIL DISTRICT (S) AFFECTED: REQUIRES APPROPRIATION: See attached Certification Kul U. Kbusko COUNCIL ACTION Neighborhood EEWOPADATE:S/2B/2DAS REQUESTING PARTY / Hal Burke FIRST READING: FINAL READING: Suny Oonas BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED: : wwlo CITY VATTORNEY DATE DATE a Awhyw DEFERRED: : MAYOR ORDINANCE NO. 2025- An Ordinance authorizing the Mayor of the City of Pasadena, on behalf of the Neighborhood Network division of the Community Relations Department to accept the ExxonMobil Community Grant award in the amount of Five Thousand and No/100 ($5,000.00) Dollars. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That ExxonMobil's Community Grant award in the amount of Five Thousand and No/100 ($5,000.00) Dollars is hereby accepted. SECTION 2. That the City Council of the City of Pasadena, Texas hereby authorizes the Mayor, or his designee, to accept, reject or alter such grant consistent herewith. SECTION 3. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. (SIGNATURE AND APPROVAL NEXT PAGE) GrantAcepe.Exsonobil-rurcu2s. dOcTUTCU25 PASSED ON FIRST READING by the City Council of the City of Pasadena, Texas in regular meeting in the City Hall this the day of A.D., 2025. APPROVED this the day of A.D., 2025. JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS PASSED ON SECOND AND FINAL READING by the City Council of the City of Pasadena, Texas in regular meeting in the City Hall this the day of A.D., 2025. APPROVED this the day of A.D.y 2025. THOMAS SCHOENBEIN, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS GrantAcceptN. ExonMobil-TUrCU2S. docTUTCU25 ExonMobil Lauren Mitchell Neighborhood Network Specialist Community Relations Department 1149 Ellsworth Drive Pasadena, TX7 77506 Dear Lauren Mitchell: We are pleased to inform you of a pending payment in the amount of $5,000.00 to Team Up to Clean Up for the 2025 ExxonMobil Good Neighbor Grant. For tax purposes, you will soon receive an acknowledgement form via email to complete. We ask that you acknowledge receipt of this payment, indicating the date and amount received, as well as any goods or services provided to Exxon Mobil Corporation. Sincerely, Victoria Simerskey Administrative Specialist ExxonMobil Giving Victoriaasimerskeygexsonmobil.com 625 AGENDA REQUEST Morhla ORDINANCE 2 RESOLUTION Resot H NO: 2025-064 CAPTION: A resolution authorizing the Neighborhood Network division within the Community Relations department to apply for the 2025 ExxonMobil Good Neighbor Grant, to benefit the Team Up to Clean UP program. RECOXMENDATIONS & JUSTIFICATION: Requesting approval to apply for the 2025 ExxonMobil Good Neighbor Grant in the amount of $10,000 to be allotted to Neighborhood Network for TeamUp to Clean UP 2025. (IPADDITIONALI SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED: COUNCIL DISTRICT(S) AFFECTED: REQUIRES APPROPRIATION: See attached Certification Hal 4 Bnke COUNCIL ACTION Neighborhood Network DATE:2/17/25 REQUESTING PARTY / Hal Burke FIRST READING: FINAL READING: ne Ocma Dow BUDGET DEPARTMENT MOTION MOTION Valerio PURCHASING DEPARTMENT SECOND SECOND APPROVED: bor 03-18-2S CITY ATIORNET DATE DATE Aw DEFERRED: MAYOR RESOLUTION NO. 2025-064 A Resolution authorizing the Pasadena Neighborhood Network Division within the Community Relations Department to apply for the 2025 ExxonMobil Good Neighbor Grant to benefit the Neighborhood Network Team Up to Clean Up 2025 program. WHEREAS, Neighborhood Network is requesting approval to apply for the 2025 ExxonMobil Good Neighbor Grant in the amount of $10,000.00 to be allotted to Neighborhood Network for Team Up to Clean Up 2025; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the City of Pasadena Neighborhood Network is hereby authorized to seek $10,000.00 in funding from 2025 ExxonMobil Good Neighbor Grant to use for Team Up to Clean Up 2025. SECTION 2. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. (SIGNATURE AND APPROVAL - NEXT PAGE) GrantAppNN. EsonsbilcoodieigaorrcantProyrvacu2s PASSED, APPROVED AND ADOPTED THIS THE A. D., 1g4h day of Marck 2025. ACA Awrypw JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: Aretbheo Omanda Syuelle AMANDA F. MUELLER JAY W.D DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OE PASADENA, TEXAS - GrantAppNN. EasonobltpodNeignsorcrantrepuacus RECEIVED 557 FEB 2 1 2025 City of Pasadena Grant Request Form BY: Requesting Department: Community Relations Date: 2/17/2025 Contact Name:! Lauren Mitchell Contact Phone: 713-920-7930 Contact E-mail: mitchei@pasadenaugow Grantor/Funding Agency: ExxonMobil Good Neighbor Grant Program Grant Amount: $10,000 Federal: State: Private Agency: Type of Grant (select): MOU: Pass-Through: Application submission deadline: ongoing Duration of Grant: 1 year Anticipated Costs: No additional costs anticipated. Match Requirements: Ves: No: Amount/Percentage: If Matching required, are funds available? Yes: No: Fund #: Type of Reporting Requirements: Ves: No: Financial: Compliance: Reporting: Other departments impacted by use of Grant Ves: No: Specify Departments: Volunteer Pasadena CFDA # Purpose/lustification of Grant (need/benefit; alignment with City Strategic Plan; etc): Funds from this grant would be used for a specific program that Neighborhood Network offers. Team Up to Clean Up is a program designed to assist Pasadena homeowners with outdoor and exterior home projects that may otherwise go unfinished, due to physical or financial hardship. The City of Pasadena, Neighborhood Network, Pasadena Industrial Community Network, and Volunteer Pasadena collaborate during this annual program, with a common goal of helping citizens revitalize their properties, with some assistance from willing hands. An application process and vetting committee are in place, to ensure that eligible homeowners are given an equal chance to benefit from the Team Up to Clean Up program. Before and after photos are taken of each project site, to showçase the amazing work that nearly 200 volunteers and 15 community partner groups accomplish in a single day. This program is a benefit to many, as it helps maintain home values and the City's appearance, while connecting Pasadena citizens with their local government. Impact to Fiscal Year Budget: Additional Employees Required: Yes: No: # Required: Total anticipated Salary Expense: Total Anticipated Benefit Expense: Contractual Services Required: Ves: No: Anticipated cost: Materials/supplies anticipated cost: Requestor Signature lawce vkhetb Date: Approvals: an/25 Budget Director: Date: 2/29/25 Compliance Officer: 1 Wwec Date: Controller: a280225 Date: 04 MAR: 2035 PLEASE SAVE A COPY OF THIS DOCUMENT AS CHANGES WILL NOT BE AUTOMATIÇALIY SAVED. City of Pasadena Grant Benefits and Cost Analysis Fund Source: ExxonMobile Pipeline Company Grant Title: Good Neighbor Grant Program Grant Application Due Date by Grantor: Ongoing Please answer each of the following questions to support the Grant Benefit and Cost Analysis. 1. What is the purpose of the grant and describe its consistency with the identified City goals and objectives: ExxonMobir's website states the following of it's Good Neighbor Grant Program, "ExxonMobil Pipeline Company takes pride in supporting local organizations. educational initiatives and safety programs in the communities where we work and live". The Good Neighbor Grant Program is open to both government organizations and officially recognized 501(c)(3) nonprofit organizations in relative proximity to an ExxonMobil Pipeline Company Asset. Our Team Up to Clean Up programi is open to homeowners in Pasadena which houses one of ExxonMobil's plants 2. Describe any additional staffing, office space, facilities, supplies, or equipment that will be required if the grant is awarded: No additional resources will be required to maintain this grant. 3. Will there be any ongoing impacts of the grant program after is completed?: In addition to cleaning up yards, painting houses, and building accessible ramps, this program brings City of Pasadena employees, citizens, partners, and donors together, to strengthen relationships within our community. The Team Up to Clean Up program will continue on regardless of being awarded the ExxonMobil Good Neighbor Grant. Many industry and local business partners support this program. 4. List the responsibilities of other departments (if any) and impacts on them in preparing the grant application or performing the scope of work if the grant is awarded: The grant application will be completed by me, Lauren Mitchell, with all sections reviewed by coworkers prior to submission. IfTeam Up to Clean Upi is awarded this grant, our Volunteer Pasadena department, managed by Lorrie Jowell, may be asked to recruit additional volunteers, as the program would be able to assist additional Pasadena homeowners. Lorrie is aware and is willing to assist in whatever way she can. 5. Total program costs, including portion funded through grant revenues and any required City Contribution: Our proposed budget for the 2025 Team Up to Clean Up program is $35,000. The projected increase in this year's budget is designed to cover increases in the cost of skilled laborers, materials and rentals, purchasing lunch for volunteers, ordering event shirts, and ordering new banners/signs for marketing purposes. This program is funded by donations only, therefore city funds are not used in the purchasing of materials, supplies, food, etc to implement the program. 6. Source of funding for any required City Share: n/a. 7. Compliance and audit requirements, paying special attention to the grantor's administrative procedures (reporting requirements, wage requirements, time and effort reporting, etc.): The ExxonMobile Good Neighbor Grant website does not go into detail about what type of reporting requirements will be necessary for compliance if we are awarded a grant. We are prepared to submit monthly/quarterly documentation regarding the budgeting of funds, project timelines, individuals served, any programmatic difficulties, etc., as we have in the past. PLEASE SAVE A COPY OF THIS DOCUMENT AS CHANGES WILL NOT BE AUTOMATIÇALLY SAVED. ExonMobil Overview ExxonMobil Pipeline Company strives to be a good neighbor in the communities where we work and operate our pipeline system. Through our Good Neighbor Grant Program, we provide funds to local tax-exempt organizations that support community programs, educational initiatives or environmental projects. These funds must be used within one year of receipt to complete a project that will benefit a community near an ExxonMobil Pipeline Company asset. Grants range in value from $250 to $10,000, although some exceptions may be made. Who is Eligible? The Good Neighbor Grant Program is open to both government organizations and officially recognized 501(c)(3) nonprofit organizations in relative proximity to an ExxonMobil Pipeline Company Asset. Applicants should demonstrate that a grant will provide a lasting, measurable impact to the community. Examples of Eligible Grant Applicants First Responders: Groups that provide for the safety of their community 0 Examples: Fire Departments (volunteer or paid), Police Departments and Emergency Preparedness Organizations Educational Organizations: Entities that support educational enrichment in their communities, especially those with a focus on STEM (Science, Technology, Engineering and Mathematics) Examples: Public Schools, After-School Programs and Professional Development, for Educators Environmental Organizations: Groups that encourage conservation and appreciation of our natural assets Examples: Wildlife Rescue and Rehabilitation Centers, River Conservation Authorities and Nature Centers exxommobippeline.com 2025 Good Neighbor Grant Application Section 1. Organization Details Legal name of organization (as it appears on IRS documents): Street address of entity: City: State: ZIP: Organization federal tax ID* #: *A Tax ID number is a 9 digit number with a "." between the second and third digits. This number can be found on your IRS 501(c) (3) determination letter. Government organizations may not have this number. Section 2. Applicant Details Applicant Name: Applicant Title: Applicant Email Address: Telephone #: Fax # (if applicable): Organization Website URL: Section 3. Request Details Requested donation amount: USSL Reason for request (What would your organization do with these funds?) 3 exxonmoblpipelinecom Community programs ExoxonMobil Pipeline Company takes pride in: supporting local organizations, educational initiatives and safety programs in the communities where we work and live. Grants and giving Education initiatives First responders Read more 2 Read more 2 Read more 2 Community Overview Public awareness Landowners Community programs Grants and giving Education initiatives First responders - Community programs 3 Good Neighbon Grants We are committed to giving back to our communities. Through our Good Neighbor Grant program, ExxonMobil Pipeline Company is able to support local tax-exempt community programs, education initiatives or environmental projects. This includes charitable contributions to police and fire departments, school programs and wildlife education. Good Neighbor Grant recipients ExxonMobil presents Good Neighbor Grants to local schools, businesses and first responders to help fund the safety and support of our communities. Some of our recipients over the years can be found below. 2020 2021 Gity of Baytown Bella Cameron Elementary School Johnson Neighborhood Library Community Against Drugs & MSA(Mathematics, Science and the Violence Arts) - East Academy Hearts & Hands of Baytown Pasadena Independent School Louisiana Wildlife and Fisheries District Foundation Texas Parks and Wildlife West Baton Rouge Homeland Moret than 25 first responder Security organizations in our communities Nearly 20 first responder including the Webster Fire organizations in our communities Department and the Port Neches including the North Vacherie Police Department Volunteer Fire Department and the La Porte Police Department Overview ExxonMobil Pipeline Company strives to be a good neighbor in the communities where we work and operate our pipeline system. Through our Good Neighbor Grant Program, we provide funds to local tax-exempt organizations that support community programs, educational initiatives or environmental projects. These funds must be used within one year ofreceipt to complete a project that will benefit a community near an ExxonMobil Pipeline Company asset. Grants range in value from $250 to $10,000, although some exceptions may be made. Who is Eligible? The Good Neighbor Grant Programis open to both government organizationfand fofficially recognized 501(C(3) nonprofit organizations relative proximity to an ExxonMobil Pipeline Company Asset. Applicants should demonstrate that a grant will provide al lasting, measurable impact to the community. Examples of Eligible Grant Applicants Government Organizations: First Responders: Groups that provide for the safety oftheir community Examples: Fire Departments (volunteer or paid), Police Departments and Emergency Preparedness Organizations Educational Organizations: Entities that support educational enrichment in their communities, especially those with a focus on STEM (Science, Technology, Engineering and Mathematics) Examples: Public Schools, After-School Programs and Professional Development for Educators Environmental Organizations: Groups that encourage conservation and appreciation of our natural assets Examples: Wildlife Rescue and Rehabilitation Centers, River Conservation Authorities and Nature Centers The program is not intended to support: Individuals or families Ongoing annual funding Organizations that are not near ExxonMobil Pipeline Company Assets Political, labor, fraternal organizations or civic clubs and any organization that distributes political messages or otherwise attempts to influence legislation Athletic or sporting event sponsorships unless directly related to supporting community public safety, emergency preparedness or charitable purposes Exceptions may be made at ExxonMobil Pipeline Company's sole discretion. Application Requirements Grant applications must be submitted with all required items described below. Since the organization's information must align with data provided by U.S. Internal Revenue Service (IRS), accuracy and completeness is crucial. Applications that are inaccurate or incomplete will be rejected. Required Items: 1. Complete and accurate application form (Included below) 2. Current W9 3. Current IRS Nonprofit Determination letter (ifapplicant is not a government organization) 4. Written estimate from vendor, ifapplicable, substantiating the value of the grant requested How to Apply Please provide all information requested below exactly as it appears on your organization's offiçial tax information. Applications that are incomplete or inaccurate will be rejected. All decisions regarding the process and grant awards will be made at the discretion of ExxonMobil Pipeline Company 2025 Good Neighbor Grant Application Section10 Organization Details Legal name a organization (as it appears on IRS documents): City of Pasadena, Texas Streetaddress ofentitypo Box 672 City: State: ZIP: Pasadena, TX 77501 Organization federalt tax ID: #: 74-6001846 "A Tax ID number is a 9 digit number with a' "-" between the second and third digits. This number can be found on your IRS 501(c) (3) determination letter. Government organizations may not have this number. Sertion 2. Applicant Details Applicant Name: Lauren Mitchell Applicant' Title: Neighborhood Network Specialist Applicant Email staiepmmupe Telephone #: 713-920-7930 Fax # (if applicable): Organization' Website URL: htps//wwwpasadenargw/38/Neghiorhod-Network Section 3. Reqyest Details Requested donation amount: US $10,000 Reason for request (What would your organization do with these funds?) "*Neighborhood Networki Is an entity that functions within the City ofP Pasadena's Community Relations Department. As employees of Neighborhood Network, we work as the people who provide al bridge of connection between the citizens of Pasadena and City Hall officials. Neighborhood Network has a program called Team Up to Clean Up, designed to assist eligible Pasadena homeowners with outdoor and exterior homeprojects, that may otherwise go unfinished due to physical or financial hardship. The City of Pasadena, Neighborhood Network, Pasadena Industrial Community Network, and Volunteer Pasadena collaborate during this annual program, with a common goal of helping citizens revitalize their properties, with some assistance from willing hands. An application process and vetting committee are in place, to ensure eligible homeowners are 1 given an equal chance to benefit from the Team Up to Clean Up program. To qualify for assistance, Pasadena homeowners need to prove just one of the following: they are age 65 or older, have a low-income status, are a military veteran or family, or have a disability. This program strives to assist every applicant, as long as they meet the qualifications and we have secured adequate funding. The support and financial commitment of ExxonMobil's Good Neighbor Grant will poise our team to assist an additional 5-10 homeowners in the next year. To these citizens, Team Up to Clean Up is not just about painting a house or repairing a fence; it's about relieving financial stress, restoring peace of mind, and trusting that people will be honest and fair. Before and after photos are taken of each project site, to showcase the amazing work that nearly 200 volunteers and 15 community partner groups accomplish in a single day. In addition to cleaning up yards, painting houses, and building accessible ramps, this program brings the City ofPasadena employees, citizens, partners, and donors together, to cultivate lasting relationships within our community. How will these funds improve your organization's ability to operate or serve your community? Please explain who will benet. "*Neighborhood Network's mission is dedicated to enhancing the quality ofl life for our citizens by providing impactful resources, programs, and partnerships. With our residents, community leaders, businesses, schools, and local industry, we seek to create a more vibrant and thriving neighborhood for all. We believe this mission aligns with ExxonMobil's efforts to be a good neighbor in the communities where you work and operate pipeline systems. Funding from the Good Neighbor Grant Program will directly impact residents of Pasadena. In 2024, five homeowners who received assistance from the Team Up to Clean Up program share the same zip code, 77503, as the ExxonMobil Pipeline Station just off the Pasadena Freeway. There is a pressing need for this program in our community, based on the number of senior citizens, veterans, individuals with disabilities, and low-income homeowners living within Pasadena city limits. According to the United States Census Bureau, in 2022 our population was marked at 147,662 residents. Ofthat population, 18.0% were recorded as low-income, 11.2% were seniors 65 and older, 8.4% reported having a disability under the age of 65, and 2.8% were veterans. In total, the Team Up to Clean Up program offers assistance to just over 40% of the City's population, by meeting just one ofthe demographics listed above. The long-term impact ofTeam Up to Clean Upi is to keep Pasadena looking and feeling like the vibrant and diverse community itis. With nearly 50,000 homes in this community, there will always be some dwellings that need repair or tidying up. One homeowner at a time and one dwelling at a time, our Team Up to Clean Up program aims to revitalize properties, by use of donated funds, skilled labor partners, and volunteer manpower. Ideally, this program positively impacts property values in the City, by maintaining or improving them. We know that one run-down house with an overgrown lawn can, and will, affect the surrounding property values. This home may potentially prolong the sale of other homes on the same street, or cause several homes to be put on the market in a short amount of time. We feel that our Team Up to Clean Up program can help limit these situations when the homeowner, or even a neighbor, knows that help exists. Keeping a small-town feel in a large city is difficult, but ifanyone can do it, Pasadena 3 can! When residents have a positive connection with their city government, they feel heard and understood and are more willing to engage with other citizens in their community. We hope that by having neighbors and volunteers register to help revitalize homes in Pasadena, we are bridging gaps. We want those needing help to feel no shame when applying for assistance. We want those physically able to assist, to do sO humbly and graciously. We want people to get to know their neighbors again, and we want our city government to continue generating opportunities like Team Up to Clean Up, for relationships to foster, and for empathy to be felt; THIS is truly the greatest impact. Timeline for implementation: This program kicks off in October with a Team Up to Clean Up event day and singular special projects run through September oft the following year. Our department is confident that all awarded funds will be used within 12 months of receiving grant funds and in compliance with the Good Neighbor Grant Program guidelines. Please see our attached 2025 timeline for implementation. Other relevant details: Cost estimates depend heavily on the number of applications we receive and the types of projects that require our assistance. To supplement a written estimate from a vendor, we are providing our year-end 2024 Budget Overview. Our department does an excellent job of making contacts and partners across our City and being good stewards of donated funds. Attached you will also find Before & After photos from a few properties that benefited from our 2024 Team Up to Clean Up program, as well as a Homeowner's Testimony. We hope these additional supporting documents help portray a well-rounded vision of our Team Up to Clean Up program. Referral Code (ifapplicable): Are any government officials involved in al leadership role in this organizationfyes. please provide details: No Pleasei include a current W9, IRS determination letter (if appliçable) and cost estimate with this application.. Applications missing this information will not be considered. Please send your completed form and other required documents to: ublicawareness@exxonmobil.com Ifyou have any questions about the application process, please email asiase-maNiae or call 1-888-804-4788 H ExonMobil 2025 Good Neighbor Grant Application Section 1. Organization Details City of Pasadena, Texas P.O. Box 672 Pasadena, TX 77501 Tax ID # 74-6001846 Section 2. Applicant Details Lauren Mitchell Neighborhood Network Specialist mitchell@pasadenatx.gov P: 713-920-7930 F: 713-475-4871 htps.lwww.pasadenatx.gow39Team-Up-To-Clean-up Section 3. Request Details Requested Donation Amount: $10,000 2025 EST. 1893 Team o A - JP to Clean A Neighborhood Network Program Section 3. Request Details (continued) Reason for your request (What would your organization do with these funds?) Neighborhood Network is a division of the City of Pasadena's Community Relations Department. As employees of Neighborhood Network, we work as the people who provide a connecting bridge between the citizens of Pasadena and City Hall officials. We have a program called Team Up to Clean Up, designed to assist eligible Pasadena homeowners with outdoor and exterior home projects, that may otherwise go unfinished due to physical or financial hardship. The support and financial commitment of ExxonMobil's Good Neighbor Grant will poise our team to assist an additional 5-10 homeowners in the next year. Purchasing materials and supplies for each project totaled close to $15,000 last year, and with the increase in cost of living, we expect our materials expenses to rise as well. The City of Pasadena, Neighborhood Network, Pasadena Industrial Community Network, and Volunteer Pasadena collaborate during this annual program, with a common goal of helping citizens revitalize their properties, with some assistance from willing hands. An application process and vetting committee are in place to ensure eligible homeowners are given an equal chance to benefit from the Team Up to Clean Up program. To qualify for assistance, Pasadena homeowners must prove one of the following: they are age 65 or older, have a low-income status, are a military veteran or family, or have a disability. This program strives to assist every applicant, if they meet the qualifications, and we have secured adequate funding. To these citizens, Team Up to Clean Up is not just about painting a house or repairing a fence; it's about relieving financial stress, restoring peace of mind, and trusting that people will be honest and fair. Before and after photos are taken of each project site to showcase the amazing work that nearly 200 volunteers and 15 community partner groups accomplish in a single day. In addition to cleaning up yards, painting houses, and building wheelchair ramps, this program brings the City of Pasadena employees, citizens, partners, and donors together, to cultivate lasting relationships within our community. How will these funds improve your organization's ability to operate or serve your community? Please explain who will benefit. Neighborhood Network's mission is dedicated to enhancing the quality of life for our citizens by providing impactful resources, programs, and partnerships. With our residents, community leaders, businesses, schools, and local industry, we seek to create a more vibrant and thriving neighborhood for all. We believe this mission aligns with ExxonMobil's efforts to be a "good neighbor" in the communities where you work and operate your pipeline systems. Funding from the Good Neighbor Grant Program will directly impact residents of Pasadena. In 2024, five homeowners who received assistance from our Team Up to Clean Up program share the same zip code, 77503, as the ExxonMobil Pipeline Station just off the Pasadena Freeway. There is a pressing need for this program in our community, based on the number of senior citizens, veterans, individuals with disabilities, and low-income homeowners living within Pasadena city limits. According to the United States Census Bureau, in 2022 our population was marked at 147,662 residents. Of that population, 18.0% were recorded as low-income, 11.2% were seniors 65 and older, 8.4% reported having a disability under the age of 65, and 2.8% were veterans. In total, the Team Up to Clean Up program offers assistance to just over 40% of the City's population, by meeting just one of the demographics previously listed. The long-term impact of Team Up to Clean Upis that this program keeps Pasadena looking and feeling like its vibrant and diverse community. With nearly 50,000 homes in this community, there will always be some dwellings that need repair or tidying up. One homeowner at a time and one dwelling at a time, our Team Up to Clean Up program aims to revitalize properties, by use of donated funds, skilled labor partners, and volunteer manpower. Ideally, this program positively impacts property values in the City, by maintaining or improving them. We know that one run-down house with an overgrown lawn can, and will, affect the surrounding property values. This home may also prolong the sale of other homes on the same street or cause several homes to be put up for sale in a short amount of time. We feel that our Team Up to Clean Up program can help limit these situations when the homeowner, or even a neighbor, knows that help exists. Keeping a small-town feel in a large city is difficult, but if anyone can do it, Pasadena can! We hope that by having neighbors and volunteers help revitalize homes in Pasadena, we are bridging gaps. We want those needing help to feel no shame when applying for assistance. We want those physically able to assist, to do SO humbly and graciously. We want people talking to their neighbors again, and we want our city government to continue generating opportunities like Team Up to Clean Up, for relationships to foster, and for empathy to be felt; THIS is truly the greatest impact. Timeline for implementation: This program kicks off in October with a Team Up to Clean Up event day and singular special projects run through September of the following year. Our department is confident that all awarded funds will be used within 12 months of receiving the grant and done SO in compliance with the Good Neighbor Grant Program guidelines. Please see our attached 2025 timelines for program implementation and for homeowners receiving assistance. Other relevant details: Cost estimates depend heavily on the number of applications we receive and the types of projects that require our attention. To supplement a written estimate from a vendor, we are providing our year-end 2024 Budget Overview. Our department does an excellent job of making contacts and partners across our city and being good stewards of donated funds. Attached you will also find Before & After photos from a few properties that benefited from our 2024 Team Up to Clean Up program, as well as a Homeowner's Testimony. We hope these supporting documents help portray a well-rounded image of our Team Up to Clean Up program. Referral Code (if applicable): N/A Are any government officials involved in a leadership role in this organization? No Please include a current W9, IRS determination letter (if applicable), and cost estimate with this application: Please see the attached documents to satisfy this request. Request for Taxpayer Give Form to the Form W-9 Identification Number and Certification requester. Do not (Rev. November 2017) send to the IRS. Depatment Inlemal Revenue af thel Service Treasury Got to www.n.gowiFammw for inatructiona and the latest information. 1 Name (as shown on your Income tar retum). Name ls required on the Ine: dor nol leave thst Inet btank. CITY OF PASADENA, TEXAS 2 Buainessr nama/distegarded entity name, Hofferenti from above ei 3 Chack appropriate box for federsi lax classificationt of thep person whose name Is entered on line Check anly one of the 4 Exemptions (codes not Individuals: apply only to & following seven boxes. certaln Instructions entitien. onp page 3): see 8 Individual/sole propristor or CC Corporation s Corporation Partnership Trustestate single-member LLC Exempt payee code (t anyl, 3 Umlted Habikty company. Enter the tax classification (C-C corporation, S.s corporaton, P-Partnership) A Note: Check the appropriate box in the ine above fort the tax claseification ofl the single member owner. Do not check Exemption from FATCA reporling uciuel ucH ls classlfied as as single-member LLC Uuat ks daregarded from the owner unless the ownar of the! ucI is code (t any) another LLC that la not disregarded fom thes owner for u.s. federal taxp purposes. Otherwise, a single-member LLC that) ls disregarded from the owmer should check the appropriale box for the tax clasalfication oll la owner. Ouer (see Instrvctions)" * MUNICIPAL GOVERNMENT Mtos o Kows an neus) 6 Address (number, strest, and spt. or suiter no.) See instructions. Raquesier's name and address (optiona) 8 P o BOX 672 6 Ciy, state. and ZIP code PASADENA TX 77501 7 Ust account numberfs) here (optional) Partl Taxpayer Identification! Number (TIN) Enler your TIN in the appropriate box, The TIN provided must matcht the name given on Ine 1 to avold Bociel security number backup withholding. Fork Individumis, this Is ganerally your social security number (SSN). However, for a resident alien, sole proprietor, or diaregarded entity, seet the Instructions for Partl 4, later. For other antities, It Is your employer Identillcation number (ÉIN). I you do not have a number, see How to get a TIN, later. or Note: I the account! Is In more than one name, see the Instructions for line 1. Also see What Name and Employer ldentificationt number Number To Give the Requester for guldelines on whose number to enter. 7 4 6 0 o - B 4 6 Part I Certification Under penalles of perjury, certifyt that: 1.1 The number shown ont this form ls my correct taxpayer Identifiçation number (or am waiting for a number to bo Issued to me); and 2. Lam not subject to! backup withholding because: (a)l am exempt from backup withholding. or (b)! have not been nolified by! the notifled Intemal Revenue Service (RS) that Iam subject to backup withholding as a resuit of a failure to report all interest or dividends, or (c) the IRS has me that am no longer subject lo backup withholding: and 3.lama a U.S. citizen or other U.S. person (delined below): and 4. The FATÇA code(s) entored on this form (fa any Indicating that am exempt from FATCA reporting Is correct. Certification Instructions. You must Cross outi Hlem 2 abovel If youl havel been nolfied by the IRS that are currently subject lot backup withholding because you! have failed to report all interest and dividends on) your tax retum. For real estale transactions, Item 240 does nat apply. For morigage interest paid, acquisition or abandonment ol) ecured progprty. cançelation of debt, contributions to ani individual retrement amangement ORAI. and generally. payments TIM I, other than Interest and dividens you arer no requinfd lo sign the cartification, but your must provide your correct Cep the Instructions for Part later. Sign Here Signeture US. parce % Detel * . Form 1099-DIV (div dends, Including those from stocks or mutual General Instructions funds) Section references are to the Internal Revenue Code uniess atherwise Form 1099-MISC (various types ofi income. prizes. awards, or gross noted. proceeds) Future developments. For the latest Information about developments Form 1099-B (stock or mutual fund sales and certain other related to Form W-9 and its Instructiona, such as legislation enacted transactions by brokers) alter they were published, go to www.r govFormws. Form 1099-S (proceeds from real estate transactions) Purpose of Form Fom 1099-K (merchant card snd third party network transactions) Sile Form 1098 (home mortgage Interest), 1098-E (student loan interest), An individual or entity (Form W-9 requester) who is required to an 1098-T (lultion) information retumy with the IRS must oblainy your correct taxpayer Fomm 1099-C (canceled debl) identification number (TIN) which may! be your social securilyr number (SSN). Individual taxpayer Identiication number (TIN). adoption Form 1099-A (acquisition or abandonment of secured property) laxpayer ldentilfiçation number (ATIN), or employer identification number Use Form W-9 only! Ify you are a U.S. person (including a resldent (EIN). to report on an! Information retum the amount paid toy you, or other alien). to provide your corect TIN. amount reportable on an Information retum. Examples of Information do not Form W-9 to the requester with a TIN, you might retums include, but are not limited to, the lollowing. be Hyou subject to backup retum wilhholding. See What Is backup withholding. Form 1099-INT (nterest eamed or pald) later. Cat. Na. 10231X Fom W-9 Rev. 11-2017) % 01-339 (Back) (Rev.4-13/8) Texas Sales and Use Tax Exemption Certification This certificate does not require a number to be valid. Name ofp purchaser, firm ora agency City of Pasadena, Texas Address (Sirset &i number, P.O. Box orRouter number) Phone (Area code andnumber) P.O. Box 672 713-475-5530 City, State, ZIP code Pasadena, TX1 77501 1, the purchaser named above, claim an exemption from payment of sales and use taxes (for the purchase of taxable items described below or on the attached order or invoice) from: Seller: Street address: City, State, ZIP code:. Description of items to be purchased or on the attached order or invoice: Any items/services purchased by City employees Purchaser claims this exemption for the following reason: Municipal Government Federal ID# 74-6001846 understand that Iwill be liable for payment of all state and local sales or use taxes which may become due for failure to comply with the provisions of the Tax Code and/or all applicable law. unountaninatsscimnapowmspinntaspnamiswlsrmabelmshelkow, atthe timeofpurchase, wbuadhamameraherhwamnsoashmamaaApaaiyaNnnaamountolmremcad. theoffensemayrange from a Class C misdemeanor to a felony of the second degree. Purchaser Tite Date sign ) here KAbr WaDace Purchasing Manager NOTE: This certificate cannot be issued for the purchase, lease, or rental of a motor vehicle. THIS CERTIFICATE DOES NOT REQUIRE A NUMBER TO BE VALID. Sales and Use Tax' "Exemption Numbers" or "Tax Exempt" Numbers do not exist. This certificate should be furnished to the supplier. Do not send the completed certificate to the Comptroller of Public Accounts. 2025 TU2CU Timeline Team Tuesday April 1 Applications Open to UP Clean Monday June 30 Applications Close aBs SC - - - Tue-Thurs July 1-3 Organize & Filter Applications Mon-Mon July 14-21 Property Walk-Throughs & Before Photos Weds-Thurs Aug 6-7 Present Apps to Vetting Committee Monday Aug 18 Notify All Applicants Tues-Fri Aug 19-22 Project Sites for Needs Assessments Friday Aug 29 Sponsorship & Logo Deadline Tue-Fri Sept 2-5 Create Project Folders & Before Photos Friday Sept 5 Place T-Shirt Order with Sponsors Friday Sept 12 Place Banner & Yard Sign Orders Mon-Tues Sept 15-16 Materials into Online Lowe's Carts Thursday Sept 18 Kick-OffParty, City Hall, Time TBD Mon-Mon Sept 22-29 Team Lead Site Visits Friday Sept 26 Volunteer Waivers Due, Pay Lowe's Carts/Delivery Mon-Tues October 6-7 Conex Materials Sorted & Labeled by Project Friday October 10 Ant Hills & Poison Ivy Prep Work Completed Mon-Thurs Oct 13-16 Lowe's & Conex Deliveries to Sites Friday October 17 Tie Up Loose Ends Saturday October 18 TU2CU Event Day! Mon-Thurs Oct 20-23 After Photos & Pick-Up Excess Materials o 2024TU2CU Program: Donations & Expenditures PERIOD 2 STARTING BALANCE $ 6,650.00 Chevron Phillips Chem Co $ 10,000.00 Donation ITC $ 500.00 Donation ONE Chur/Falthin-Action $ 1,500.00 Donation Chevron $ 10,000.00 Donation Nippon Chemical Texas Inc $ 2,500.00 Donation OxyChem $ 5,000.00 Donation T-Shirts/Recognition Plaques ($2,996.00) Expense Food/Hydration ($2,346.00) Expense Project/Materials Cost at Lowe's ($14,763.00) Expense Sponsors Banner/Vard Signs ($645.00) Expense Rental Deposits ($490.00) Expense Safety Supplies ($174.00) Expense Misc Project Supplies ($169.00) Expense PER2 END BALANCE AS OF 9/30/24 $ 14,567.00 PERIOD 3 STARTING BALANCE $ 14,567.00 BTC (Bob's Truck Care) $ 500.00 Donation Port Houston Community Grant $ 11,250.00 Donation Port Houston Community Grant $ 3,750.00 Donation Tree Services for TU2CU ($16,500.00) Expense Fencing Services for TU2CU ($5,805. 00) Expense Ramp Bullding Services for TU2CU ($4,945.00) Expense PER: 3 END BALANCE AS OF 12/31/24s 2,817.00 PERIOD 4 STARTING BALANCE $ 2,817.00 Materials for Ramp at Lowe's ($987. 00) Expense Returned Excess Materlals from Ramp $ 289.00 "Refund PER 4 END BALANCE AS OF 1/31/25 $ 2,119.00 C CITY OF PASADENA PURCHASE ORDER NO. 00113557 P.O. BOX 672 PASADENA, TX 77501 PAGE NO. 1 S V H CITY HALL a 1149 ELLSWORTH N P PASADENA, TX 77506 PASADENA TX 77501 T R o ATTN: '24 TU2CU TREES ORDER DATE:0 09/25/24 BUYER: LAUREN MITCHELL REQ. NO.0 00059591AEO.D DATE 09/24/24 TERMS: NET 30 DAYS F.0.B.: DESC.: 2024 TU2CU TREE TRIMMING (TEMI OUANTITY UOM DESCRIPTION UNIT PRICE EXTENSION 93 1.008 - ESTIMATE #167 FOR OAK STREET 3 099) sogpo 5,000.p0 REMOVAL OF BIG OAK TRRE NEXT TO DRIVEWA AND SMALL TREBS ALONG STREET, SMALL TREES TRIMMED 2 1.00 ESTIMATE #165 FOR LAFFERTY RD 00 2,500.p0 % BtG OAK TRIMMING, REMOVAL OF SICK TREE a HEAVY TRIMMING ON OAK TREB BEHIND HOUSE 1.00 ESTIMATE # 164 FOR W. BROADWAY AVE 9 0 2,500.po TRIM 2 MAGNQLIA TREBS IN FRONT, TRIM SEVERAL OAK TREES ON PROPERTY 1.00 ESTIMATE #163 FOR WAFER STREBT U 1,000.p0 TREE MAINTENANCE OF RAISE CANOPY, TREE MAINTENANCE'OF TREE NEXT TO SIDEWALK lualtclor Planpangi à aut ço! lojlo/a4 Lalchedd ITEMA ACLOUNT AMOUNT PROJECT COOE PAGE TOTAL E 11,000.p0 TOTAL 6 11,000.p0 01 00.6 243 5,000.do 02 006 243 2,500.do 03 006 243 2,500.do 04 006 243 1,000.d0 APPROVED BY Kaerthdlacg Auigne. PORCHABING MANAGER MAYOR 1 Vendor Copy CITY OF PASADENA PURCHASE ORDER NO. 00113545 PASADENA, TX PAGE NO. 1 V s CITY HALL H - 1149 ELLSWORTH N P PASADENA, TX 775C6 HOUSTON TX 77087 T ATTN: 2024 TU2CU FENCES OADER DATE: 09/24/24 BUYER LAUREN MITCHELL REQ NO.: 00059590 REQ. DATE: 09/25/24 TERMS: NET 30 DAYS IF.OB.: DESC : TU2CU FENCE & GATE REPAIR ITEMA QUANTITY UOM DESCRIPTION UNIT PRICE EXT TENSION 01 1.00 BA ESTIMATE #235 FOR WASHINGTON 1260.0000 1,260.p0 REPLACE 84 PEET OF FENCE 02 1.00 EA ESTIMATE # 229 FOR KENWICK PLACE 450.0000 450.pc NEW WOOD GATB ASSEMRLY AND SET POST 03 1.00 EA ESTIMATE # 232 FOR ARAPAJO STREET 900.0000 900.p0 REPLACE 60 PEBT OF FENCE AND SET NEW POSTS 04 1.00 EA ESTIMATE # 233 FOR LAFFERTY RD 995.0000 995.00 REPLACE 43 FEET OF FENCE BUILD 1 WOOD GATE 05 1.00 EA ESTIMATE #237 FOR FERN ST 899.0000 899.00 REPLACE 58 FEET OF FENCE 06 1.00 EA ESTIMATE #239 FOR DGEPIELD DR 500,0000 500.p0 REPLAÇE 10 FEET OF FENCE BUILD 1 WOOD GATE 07 1.00 EA ESTIMATE #242 FOR OAK STREET 800.0000 800.p0 FENCE REPAIR & BUILD 2 WOOD GATES ITEMA ACCOUNT AMOUNT PROJECT CODE PAGE TOTAL $ 5,804.00 TOTAL $ 5,804.p0 C1 006 243 1,260.0o C2 006 243 450.0o 03 006 243 900.do Kto C4 006 243 995.do 05 C06 243 899.00 06 006 243 500.0o 07 006 243 800.d0 Tacey Clayw 3 - Receiving Copy 1/14124 PURCHASE ORDER NO. 00114682 CITY OF PASADENA PASADENA. TX PAGE NO. 1 V sro H CITY HALL E 1149 ELLSWORTH N P PASADENA, TX 77506 D HOUSTON TX 77016 C T e ATTN: QUOTE # 275 ORDER DATE: 12/31/24 BUYER: LAUREN MITCHELL REO. NO: 00060742/REO DATE: 01/02/25 TERMS: NET 30 DAYS F.O.B.: DESC.: TU2CU RAMP WASHINGT ITEMA QUANTITY UOM DESC"TION UNIT PRICE EXTENSION TU2CU RAMP FOR WASHINGTON ST IN JANUARY 2025 01 1.00 BA 232 SQFT WHEELCHAIR AÇCESS RAMP BUILD. 2945.2500 2,945.5 ROUGH DIMENSIONS 12' X 12' PLATFORM, 23'X 3.5' OF WALKWAY AND RAMP. ALL MATERIAL PROVIDED BY TU2CO PROGRAM. 6 J esis ey AP APA ACLOUNI AMOUNT PROJECT CODE PAGE TOTAL $ 2,945. ENA, TOTAL 6 2,945. 01 006 243 2,945.25 3 - Receiving Copy AGENDA REQUEST LAPRS aret ORDINANCE RESOLUTION aC NO: 2025- CAPTION: An ordinance authorizing the Pasadena Parks and Recreation Department to accept a Texas Parks & Wildlife Local Parks grant in the amount of $24,968.00. To authorize the Mayor to sign and accept the agreement on behalf of the City of Pasadena. RECOMMENDATIONS & JUSTIFICATION: The grant funding will be used for outdoor camping in Texas State Parks, recreation, field trips, fishing, bird watching, photography and astronomy experiences for youth, seniors and people living with disabilities. (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED: COUNCIL DISTRICT (S) AFFECTED: : REQUIRES APPROPRIATION: See attached Certification COUNCIL ACTION honk DATE: : 5/12/2025 Jason Ross FIRST READING: FINAL READING: Sunl (ba BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED : 4 CITY ATTORNEY DATE DATE AGfawrn DEFERRED : MAYOR ORDINANCE NO. 2025- An Ordinance authorizing the Pasadena Parks and Recreation Department to accept a Texas Parks & Wildlife Local Parks grant for the amount of $24,968.00. The department was previously authorized to apply for this grant as passed on Resolution 2024-196. To also authorize the Mayor or his designee to sign and accept the agreement on behalf of the City of Pasadena. WHEREAS, the grant request of $24,968.00 will be used for outdoor camping in Texas State Parks, recreation, field trips, fishing, bird watching, photography and astronomy experiences for youth, seniors and people living with disabilities; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the acceptance of a Texas Parks and Wildlife Local Parks grant in the amount of $24,968.00, to be used by the Parks and Recreation Department is hereby approved and the Mayor, or his designee, is hereby authorized and directed to execute for and on behalf of the City all documents necessary to its implementation. SECTION 2. That the City Council of the City of Pasadena, Texas hereby authorizes the Mayor, or his designee, the power to accept, reject or alter such grant. SECTION 3. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at thei City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, FAMEACPEPAN.TMLasalarhagrantzi.dec Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof.. (SIGNATURE AND APPROVAL NEXT PAGE) GMAntAceP:PAR.TPLoairarkasramtzs.dre PASSED ON FIRST READING by the City Council of the City of Pasadena, Texas in regular meeting in the City Hall this the day of A.D., 2025. APPROVED this the day of A.D., 2025. JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS PASSED ON SECOND AND FINAL READING by the City Council of the City of Pasadena, Texas in regular meeting in the City Hall this the day of A.D., 2025. APPROVED this the day of A.D., 2025. THOMAS SCHOENBEIN, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS CraRtAcPtPeA.TMLealrarksamtzi.dee TEXAS PARKS AND WILDLIFE Recreation Grants Branch Community Outdoor Outreach Program GRANT AGREEMENT Department Contract Number: CA-0007586 Grant Project Number: 52-2505 Recipient Name (Must match UEI): City of Pasadena - Parks and Recreation Recipient Unique Entity dentifier: UNKC66VKKM5 Project Name: Into the W.I.L.D. - Welcoming Inclusivity into Learning & Discovery Award Date: 03/01/2025 Period of Performance: 03/01/2025 - 09/01/2026 Grant Award (Amount of State Funds): $24,968.00 City of Pasadena - Parks and Recreation- 1 SECTION 1 - PROJECT DESCRIPTION AND PERFORMANCE GOALS This Grant Agreement is entered into by the Texas Parks and Wildlife Department (Department), and the City of Pasadena - Parks and Recreation (Recipient). This award is funded through the Department under the authority of Chapter 24 of the Parks and Wildlife Code. The scope of the grant agreement includes: This amended agreement supersedes and replaces the agreement between the parties executed on May 09, 2025. As described in the Recipient grant application, the City of Pasadena - Parks and Recreation will deliver the Into the W.I.L.D. project to provide Department Project WILD training for recreation program staff and deliver multiple day trips and an overnight campout at various Texas State Parks. The project will visit Department sites, use Department outreach programs and/or partner with Department personnel as described in the Recipient application to develop and enhance participants' relationship with the Department. Performance Goals include: Goal 1: Coordinate a one-day trip to Sheldon Lake State Park in the spring of 2025 to include fishing, hiking, Naturalist instruction, and nature photography to engage 50 participants. Goal 2: Coordinate a one-day trip to Stephen F. Austin State Park in the fall of 2025 to include orienteering, First Saturday Nature Walk, and photography to engage 20 participants. Goal 3: Coordinate a one-day trip to Galveston State Park in the fall of 2025 to include beach hiking, bird watching, and fishing to engage 15 participants. Goal 4: Coordinate a one-day trip to Galveston State Park in January 2026 to include winter birding, biking, hiking, and photography to engage 50 participants. Goal 5: Coordinate one overnight camping trip to Brazos Bend State Park in the spring of 2026, to include camping, cooking, and nature photography to engage 20 participants. Goal 6: Coordinate a one-day trip to Brazos Bend State Park in the spring of 2026, to include hiking, bird watching, and alligator observation for 10 participants. Goal 7: Train 10-15 recreational center staff in the Department Project WILD Suite curriculum in the spring of 2025. Upon completion, staff will deliver at least 10 Project WILD classes throughout the 2025-2026 grant period with at least 50 participants. Total un-duplicated participants served: 100 This Grant Agreement is not for research and development. SECTION 2 - SPECIFIC CONDITIONS N/A SECTION 3 - KEY OFFICIALS Key officials are essential to ensure maximum coordination and communications between the parties and the work being performed. They are: FOR TEXAS PARKS AND WILDLIFE DEPARTMENT: City of Pasadena - Parks and Recreation- 2 Dana Lagarde Director of Recreation Grants 4200 Smith School Road Austin, Texas 78744 Grant Manager: Rena Beyer Recreation Grants Branch 4200 Smith School Road Austin, Texas 78744 512) 389-8224 mabeyeretpwdlesaigw Grant Coordinator: Jessica Lagalo Recreation Grants Branch 4200 Smith School Road Austin, Texas 78744 (512) 389-8224 essica.agalo@tpwd.texas.ov Audit Team Lead: Marcy Cavazos Colunga Recreation Grants Branch 4200 Smith School Road Austin, Texas 78744 512)389-8224 Marcy.Cavazosunga@tpwa.texas.gov FOR GRANT RECIPIENT: The Recipient must request prior written approval from the Department for a change in key personnel identified below. Official Point of Contact Tammy DeLosSantos Grant Writer 3111 San Augustine Pasadena, Texas, 77503 (713) 475-7048 tdelossantos@pasadenatx.gov Project Coordinator Trina Rodriguez Recreation Manager 3111 San Augustine Pasadena, Texas, 77503 (713) 475-7048 DAgue/CpaseTAIgPN Fiscal Contract Lindsay Koskiniemi City Controller 3111 San Augustine Pasadena, Texas, 77503 (713) 475-4804 osinemi@nsacenatgos City of Pasadena - Parks and Recreation- 3 SECTION 4 - STANDARD FINANCIAL MANAGEMENT CONDITIONS The term "financial management conditions" refers to generally applicable policies and procedures for the accounting, reporting, and management of grant funds. Failure to follow a state or federal law applicable to the disbursement of grant funds may subject the Recipient to statutory, common law, and contractual remedies that may include administrative action, suspension of grant payments, termination, and in-eligibility for future grants. Recipients must comply with the Standard Financial Management Conditions for State Grant Programs listed in the Texas Grant Management Standards, attached. SECTION 5 - AWARD AND PAYMENT A. The Department will provide funding to the Recipient in an amount not to exceed $24,968.00 for the project described under Project Description and Location above and in accordance with the Department-approved Budget Summary, attached. B. The Recipient shall obtain prior approval from the Department for budget and program revisions and shall request payment via the Department's Recreation Grants Online Grant Management System. C. The Recipient may charge the state award only allowable costs incurred during the period of performance. D. Sub awarding is not allowed. E. Indirect costs are not allowed. F. There is no cost-share required under this Grant Agreement. G. Reimbursement will be the default method of payment. H. Any state funds paid to the Recipient exceeding the amount that the Recipient is determined to be entitled to under the state award constitutes a debt to the State of Texas and must be returned. I. Payments made for costs determined to be unallowable by the Department must be refunded to the Department. SECTION 6 - PROGRAM INCOME Program income" refers to gross income directly generated by a supporting activity during the period of performance. Program income must be used for the original purpose of the State award. Program income earned during the period of performance may only be used for costs incurred during the period of performance or allowable closeout costs. SECTION 7 - PERFORMANCE REPORTING The Recipient must submit quarterly performance reports through the Recreation Grants Online System within 30 calendar days after the reporting period. Recipient must submit the final performance report 45 calendar days after the conclusion of the period of performance. The Department may extend the due date for any performance report with justification from the Recipient. When a significant development that could impact the state award occurs between performance reporting due dates, the Recipient must notify the Department. When significant developments occur that negatively impact the state award, the Recipient must include information on its plan for corrective action and any assistance needed to resolve the situation. City of Pasadena - Parks and Recreation- 4 SECTION 8 - DEVIATIONS AND MODIFICATIONS The Recipient is required to report deviations from the approved budget, project or program scope, or objective, and request prior approval from the Department for budget and program plan revisions, in accordance with the Texas Grant Management Standards, attached. SECTION 9 - REMEDIES FOR NON-COMPLIANCE The Department may implement specific conditions if the Recipient fails to comply with statutes, rules, or the terms and conditions of the state award, under the following circumstances: (1) Recipient has a history of failure to comply with the terms and conditions of state awards; (2) Recipient fails to meet expected performance goals contained in the state award; or (3) Recipient has inadequate financial capability to perform the state award. Specific conditions may include the following: (1) requiring payments as reimbursements rather than advance payments; (2) withholding authority to proceed to the next phase until receipt of evidence of acceptable performance; (3) requiring additional or more detailed financial reports; (4) requiring additional project monitoring; (5) requiring the Recipient to obtain technical or management assistance; or (6) establishing additional prior approvals. Prior to imposing specific conditions, the Department must notify the Recipient as to: (1) the nature of the specific conditions; (2) the reason why the specific conditions are being imposed; (3) the nature of the action needed to remove specific conditions; (4) the time allowed for completing the actions; and (5) the method for requesting the Department to reconsider imposing a specific condition. Once the circumstances that prompted the imposition of the specific conditions have been corrected, the Department may remove the specific conditions(s) upon written request of the Recipient. If the Department determines that noncompliance cannot be remedied by imposing additional conditions, the Department may take one or more of the following actions, as appropriate in the circumstances: (1) Temporarily withhold payments until the Recipient takes corrective action; (2) Disallow costs for all or part of the activity associated with the noncompliance of the Recipient; (3) Suspend or terminate the state award in part or in its entirety; (4) Withhold further state funds (new awards or continuation funding) for the project or program; and (5) Pursue other legally available remedies. City of Pasadena - Parks and Recreation- 5 SECTION 10 - TERMINATION The state award may be terminated in part or in its entirety as follows: (1) By the Department if the Recipient fails to comply with the terms and conditions of the state award. (2) By the Department with the consent of the Recipient, in which case the two parties must agree upon the termination conditions. These conditions include the effective date and, in the case of partial termination, the portion to be terminated. (3) By the Recipient upon sending the Department a written notification of the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if the Department determines that the remaining portion of the state award will not accomplish the purposes for which the state award was made, the Department may terminate the state award in its entirety. (4) By the Department for cause. (5) By the Department for convenience. When the state award is terminated in part or its entirety, the Department and the Recipient remain responsible for compliance with the requirements set forth in the Closeout and Post- Closeout Adjustments and Continuing Responsibillties sections of the Texas Grant Management Standards, attached. Notification of Termination Requirement The Department must provide written notice of termination to the Recipient unless the state award is being terminated by the Recipient. If the Recipient initiates the termination of the state award, then the Recipient must provide written notice of the termination to the Department. The written notice of termination should include the reasons for termination, the effective date, and the portion of the state award to be terminated, if applicable. Opportunities to Object, Hearings, and Appeals Upon initiating a remedy for noncompliance (for example, disallowed costs, a corrective action plan, or termination), the Department must provide the Recipient with an opportunity to object and provide information challenging the action. The Department will comply with any requirements for hearings, appeals, or other administrative proceedings to which the Recipient is entitled under any statute or rule applicable to the action. Effects of Suspension and Termination Costs to the Recipient resulting from obligations incurred by the Recipient during a suspension or after the termination of a state award are not allowable unless the Department expressly authorizes them in the notice of suspension or termination or subsequently. However, costs during suspension or after termination are allowable if: (1) the costs result from obligations that were properly incurred by the Recipient before the effective date of suspension or termination, and not in anticipation of it; and (2) the costs would be allowable if the state award was not suspended or expired normally at the end of the period of performance in which the termination takes effect. SECTION 11 - CLOSEOUT The Department will close out the grant award when it determines that all applicable administrative actions and all required work of the grant have been completed by the Recipient. The Recipient must submit all financial, performance, and other reports as required by the terms and conditions of the grant award. The Recipient must promptly refund any balances of unobligated cash that Department paid in advance or paid and that are not authorized to be retained by the Recipient for use in other projects. Liquidation of all costs must occur within 90 days of performance period end date. The Department may approve extensions. City of Pasadena. Parks and Recreation- 6 SECTION 12 - RECORDS RETENTION AND ACCESS The Recipient must maintain and retain records (for example, financial records, performance records, supporting documents) until the third anniversary of the later date of (1) the grant completion or expiration or (2) the resolution of all issues that arose from any litigation, claim, negotiation, audit, open records request, administrative review, or other action involving the grant or documents. The Department, the State Auditor's Office, or any of their authorized representatives, must have the right to access any documents, papers, financial statements, or other records of the Recipient pertinent to the state award, to perform audits, execute site visits, or for any other official use. This right also includes timely and reasonable access to the Recipient's personnel for the purpose of interviewing and discussion related to such documents or the state award in general. This right of access is not limited to the required retention period but lasts as long as the records are retained. SECTION 13 - TERMS OF ACCEPTANCE By accepting funds under this award, the Recipient agrees to comply with the terms and conditions of this Grant Agreement, the CO-OP Program Guidance, and the Texas Grant Management Standards. Recipient also agrees to comply with assurances and certifications made in its approved grant application, and applicable federal statutes, regulations and guidelines. Recipient agrees to fulfill the grant in accordance with the approved grant application, budgets, supporting documents, and all other representations made in support of the approved grant application. Any change in local, state, and federal rules, regulations, or laws applicable to the Community Outdoor Outreach Program that occurs during the term of the Grant Agreement shall be automatically incorporated into the Grant Agreement without written amendment and shall become a part of the Agreement as of the effective date of the rule, regulation, or law. Signature Authority The person or persons signing this Grant Agreement on behalf of the Recipient hereby warrant and guarantee that they are duly authorized by the Recipient to execute this Grant Agreement on behalf of the Recipient and to validly and legally bind the Recipient to all the terms of this Grant Agreement. Grant Agreement: Modifications Must Be in Writing This Grant Agreement and each of its provisions will be binding upon the parties and may not be waived, modified, amended or altered unless with prior written approval by both parties. Venue; Governing Law This Grant Agreement shall be governed by the laws of the State of Texas. The proper place of venue for suit on or in respect of the Grant Agreement shall be Travis County. SECTION 14 - ATTACHMENTS INCORPORATED BY REFERENCE The following completed documents are attached to and made part of this Agreement: Approved Grant Award Budget 2025-26 CO-OP Program Guidance TPWD Logo Use Agreement Assurance for State Funded Awards Texas Grant Management Standards Grant Monitoring Plan City of Pasadena - Parks and Recreation- 7 SECTION 15 - SIGNATURES The signed Grant Agreement must be submitted to Recreation Grants Online within 30 days of the Recipient's date of signature. If not returned within 120 days of the Date of Issuance, this Grant Agreement is null and void. IN WITNESS WHEREOF, the parties hereto have executed this Grant Agreement on the date(s) set forth below. TEXAS PARKS AND WILDLIFE DEPARTMENT Signature: Dana Lagarde Title: Director of Recreation Grants Date of Issuance: 05/28/2025 SAM Number, Date, Initials: 05/27/2025 I R.B. RECIPIENT NAME: City of Pasadena - Parks and Recreation Signature of Authorized Representative: Name and Title: Email: Phone: Date: City of Pasadena - Parks and Recreation- 8 AGENDA REQUEST 1ovgs Maas ORDINANCE RESOLUTION Reso D NO: 2024-1 19lo CAPTION: A resolution to apply for the Texas Parks & Wildlife Department (TPWD) CO-OP grant to fund outdoor programs for Pasadena Parks and Recreation. RECOMMENDATIONS & JUSTIFICATION: The grant request of $24,968 will be used for outdoor camping in Texas State Parks, recreation, field trips, fishing, bird watching, photography and astronomy experiences for youth, Seniors and people living with disabilities. (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED: COUNCIL DISTRICT (S) AFFECTED : REQUIRES APPROPRIATION: See attached Certification COUNCIL ACTION Jed Aplaca DATE:10/01/2024 REQUESTING PARTY (TYPED) FIRST READING: : FINAL READING: Ybarra BUDGET DEPARTMENT MOTION MOTION Estrada PURCHASING DEPARTMENT SECONI SECOND APPROVED: : o 0 10-15-24 CITY ATTORNEY DATE DATE EE Awrpe DEFERRED: : MAYOR RESOLUTION NO. 2024-196 A Resolution authorizing the Pasadena Parks and Recreation Department to apply for Texas Parks & Wildlife Department (TPWD) Co-Op grant for the amount of $24,968.00; and authorize the Director of Parks and Recreation to act on behalf of the City of Pasadena in working with the Texas Parks & Wildlife Department for the purposes of the Local Parks Grant. WHEREAS, the grant request of $24,968.00 will be used for outdoor camping in Texas State Parks, recreation, field trip, fishing, bird watching, photography and astronomy experiences for youth, Seniors and people living with disabilities; and WHEREAS, the Community Outdoor Outreach Program Resolution authorizing application attached is attached hereto as Exhibit "A"; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That Pasadena Parks and Recreation Department is hereby authorized to seek funding from the Texas Parks & Wildlife Department (TPWD), upon the terms and conditions set forth in the attached Exhibit "A", incorporated herein for all purposes. SECTION 2. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been GFantApPaR.TXParkauwildlioaiParkaz4 discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. 1 PASSED, APPROVED AND ADOPTED THIS THE day of Octobet A.D., 2024. & * - Awryw JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED; - au AMANDA MUELLER Omandamuell F. JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS GrantAppPER. TxParkstwildLocalParks24 - City of Pasadena Grant Request Form 5 Requesting Department: Parks Date:1 10/1/24 Contact Name: Tammy DeLosSantos Contact Phone: 7139480322 Contact E-mail: dabsanos@pasadnarx gov Grantor/Funding Agency: TPWD CoOp Grant Amount: $24,968 Federal: State: Private Agency: Type of Grant (select): MOU: Pass-Through: Application submission deadline: 11/1/24 Duration of Grant: 3/1/25 - 9/1/26 Anticipated Costs: $24,968 Match Requirements: Ves: No: Amount/Percentage: If Matching required, are funds available? Yes: No: Fund #: Type of Reporting Requirements: Yes: No: Financial: Compliance: Reporting: Other departments impacted by use of Grant Yes: No: Specify Departments: CFDA # Purpose/lustification of Grant (need/benefit; allgnment with City Strategic Plan; etc): This grant will help the Parks & Requity program to include more participation in outdoor recreation field trips to State Parks * camping skills, fishing, bird watching, and astronomy experiences. Impact to Fiscal Year Budget: Additional Employees Required: Yes: No: V #F Required: Total anticipated Salary Expense: Total Anticipated Benefit Expense: Contractual Services Required: Yes: No: Anticipated cost. Materials/supplies anticipated cost: Requestor Signature Date: lpy Approvals: Budget Director: L V - Date: 1ol2z/zy Compliance Officer: Date: Controller: Date: PLEASE SAVE A COPY OF THIS DOCUMENT AS CHANGES WILLI NOT BE AUTOMATIÇALLY SAVED. City of Pasadena Grant Benefits and Cost Analysis Fund Source: TPWD Grant Title: TPWD Co Op Grant Application Due Date by Grantor: 10/1/24 Please answer each of the following questions to support the Grant Benefit and Cost Analysis. 1. What is the purpose of the grant and describe its consistency with the identified City goals and objectives: This grant will help the Parks & Requity program to include more participation in outdoor recreation field trips to State Parks I camping skills, fishing, bird watching, and astronomy experiences. 2. Describe any additional staffing, office space, facilities, supplies, or equipment that will be required if the grant is awarded: N/A 3. Will there be any ongoing impacts of the grant program after is completed?: We hope to continue to support ongoing efforts after the grant ends with the eligible items we purchase with the grant funding. 4. List the responsibilities of other departments (if any) and impacts on them in preparing the grant application or performing the scope of work if the grant is awarded: N/A 5. Total program costs, including portion funded through grant revenues and any required City Contribution: $24,968 6. Source of funding for any required City Share: N/A 7. Compliance and audit requirements, paying special attention to the grantor's administrative procedures (reporting requirements, wage requirements, time and effort reporting, etc.): Quarterly reports are required PLEASE SAVE A COPY OF THIS DOCUMENT AS CHANGES WILLI NOT BE AUTOMATIÇALLY SAVED. TEXAS PARKS8 Community Outdoor Outreach Program WILDLIFE Resolution Authorizing Application A resolution of the City of Pasadena Parks & Recreation Department as hereinafter referred to as "Applicant, ' designating certain officials as being responsible for, acting for, and on behalf of the Applicant in dealing with the Texas Parks & Wildlife Department, hereinafter referred to as Department, " for the purpose of participating in the Community Outdoor Outreach Program, hereinafter referred to as the "Program": certifying that the Applicant is eligible to receive program assistance WHEREAS, the Applicant is fully eligible to receive assistance under the Program; and WHEREAS, the Applicant is desirous of authorizing an official to represent and act for the Applicant in dealing with the Department concerning the Program; BE IT RESOLVED BY THE APPLICANT: SECTION 1: That the Applicant hereby certifies that they are eligible to reçeive assistance under the Program. SECTION 2: That the Applicant hereby authorizes and directs the Director to act for the Applicant in dealing with the Department for the purposes of the Program, and that Jed Aplaca is hereby officially designated as the representative in this regard. SECTION 3: That the Applicant is hereby applying for a grant from the Program in the amount of $24,968.00; Introduced, read and passed by an affirmative vote of the Applicant" on this 15th day of October, 2024. * Signature oyLocal Authority Jed Aplaca, Director of Parks & Recreation Typed Name and Title ATTEST: CAwr Signature Jeff Wagner, Mayor of the City of Pasadena Typed Name and Title Project Budget Details Sponsor: City of Pasadena - Parks and Recreation Project Name: Into the W.I.L.D. - Welcoming Inclusivity into Learning & Discovery Project Number: 52-2505 Approved TPWD Cost PROJECT COSTS Bus Rental and Transportation Fees $750.00 State Park fees: Entry, Camping (All Trips Combined) $985.00 State Park Facility Fee (Group Hall) $150.00 Cargo Craft 7X12X6.6 D/DR $6,600.00 Trailer Bicycle Racks & Bicycles, Bicycle $2,099.92 repair items Safety items (walking sticks, fans, water $2,093.21 botttles, hydration packs, sunscreen) Canon EOS R100 $2,499.95 Mirrorless Camera Trailer Hitch $200.00 Fishing Lure $325.00 Covers Celestron Nature $4,445.00 8X42 Binoculars Celestron Outland 8X25 Roof $649.50 Binoculars Celestron Travel Scope 70 DX $359.85 Portable Telescope Celestron Star Sense Explorer $399.90 Telescope Orienteering $320.00 Compasses Garmin Rugged $1,710.00 Handheld GPS Approved TPWD Cost PROJECT COSTS Foldable Aluminum $899.80 Camping Chairs Igloo MaxCold Glide 110qt Full- $259.98 Size Wheeled Cooler Heavy Duty Hitch Mount Cargo $220.00 Carrier TOTAL GRANT FUNDS APPROVED $24,968.00 TEXAS PARKS & WILDLIFE COMMUNITY OUTDOOR OUTREACH PROGRAM PROGRAM GUIDANCE TEXAS ST7FTE PARKS Updated March 2025 This document replaçes all previous guides. 1 TABLE OF CONTENTS CONTENTS TABLE OF CONTENTS 2 TPWD MISSION STATEMENT. 3 CO-OP PURPOSE 3 PRIORITIES 3 APPLYING FOR A GRANT 4 ELIGIBILITY REQUIREMENTS. 4 ELIGIBLE ACTIVITIES. 4 DIRECT TPWD RELATIONSHIPS. 5 TIMELINE & GRANT EXPECTATIONS 6 PARTICIPANT DEMOGRAPHICS, 6 CO-OP SCORING CRITERIA. 8 MANAGING A GRANT AWARD 10 GRANT AGREEMENT. 10 REPORTING REQUIREMENTS. 10 Allowable Expenses 11 Cost Principles 15 PAYMENT PROCEDURES. 17 Documentation Required for Payment 17 Payment Request Flowchart: Understanding the State of Texas Payment Process 18 AMENDMENTS & BUDGET REVISIONS 20 CLOSEOUT PROCEDURES. 20 POLICIES & REGULATIONS. 21 RESOURCES. 22 CONTACT INFORMATION 22 2 About the Community Outdoor Outreach Program (CO-OP) TPWD MISSION STATEMENT CO-OP PURPOSE To manage and conserve the To provide funding to tax-exempt natural and cultural resources of organizations for programming Texas and to provide hunting, that engages under-served fishing, and outdoor recreation communities in TPWD mission- opportunities for the use and oriented outdoor recreation, enjoyment of present and future conservation, and environmental generations. education activities. FUNDING AND AUTHORIZATION The Community Outdoor Outreach Program (CO-OP) is a reimbursement grant authorized by the Texas State Legislature in Chapter 24 of the Parks and Wildlife Code. The CO-OP grant is funded in the Texas Parks & Wildlife Department (TPWD) appropriation budget as a specialized component of the Texas Recreation and Parks Account and the Large County and Municipality Parks Account Programs. Funds are derived from a dedicated portion of the state sales tax collected on sporting goods. PRIORITIES The CO-OP grant program prioritizes direct connections between participants of grant funded programs and TPWD sites, programs, and staff. The program seeks to engage under-served participants in outdoor activities and stewardship of Texas lands, while promoting awareness of the Texas Parks and Wildlife mission. The participant focus includes: Minorities Females of any age Low income households Individuals with a disability CO-OP grant priorities engage the above underrepresented audiences in the following: Outdoor Recreation: * Support high-quality participation and skill building in mission-oriented outdoor recreation activities. * Facilitate access to TPWD owned and operated facilities including State Parks, Wildlife Management Areas, State Natural Areas, State Historical Sites, and Fish Hatcheries & Centers. Environmenta Education: * Provide hands-on environmental & cultural resource education for Texas natural resources & ecosystems. * Utilize TPWD education programs to develop life-long behaviors consistent with the Agency's mission. Conservation: * Cultivate citizen participation in science-based stewardship of natural and cultural resources that result in tangible conservation benefits. * Develop the next generation of TPWD natural resource leaders and professionals. 3 APPLYING FOR A GRANT ELIGIBILITY REQUIREMENTS Applicant is a non-political subdivision or non-profit corporation as defined by Chapter 24 of the Parks and Wildlife Code, and all proposed activities take place in the state of Texas. Non-profits must provide a current IRS designation letter with this application. The organization is in good standing with the Texas Comptroller of Public Accounts and the Federal System of Award Management (SAM). The organization has been issued a valid Unique Entity dentification (UEI) number at the time of application. Grant funds requested for projects range between $5,000 - $100,000. Applicant must provide a Resolution signed by a governing board or authorized official, dated within 1 year of application, and contains authorization for application submission. The project has a minimum of one direct relationship to TPWD, as listed in the Approved TPWD Relationships for CO-OP Grant Projects document. This includes visiting TPWD facilities, oarticipation in TPWD programs, trainings, or participants working directly with TPWD personnel. For previously funded grant recipients, all final closing documentation was received prior to the November 15t grant deadline and the organization did not receive grant funds in the past funding cycle. Only one active grant award is allowed per organization. The applicant understands this is a reimbursement grant and sponsor organization has the fiscal capacity to submit required receipts/ documentation for grant funds to be paid out by TPWD on a reimbursement basis. ELIGIBLE ACTIVITIES The below listed activities are not exhaustive, contact CO-OP staff for questions related to allowable activities. Refer to the Allowable Expenses section in this Guidance for information about eligible and ineligible expenses. ELIGIBLE ACTIVITIES Adaptive Outdoor Recreation Geology/Rocks & Fossils Angler Education/Fishing Hiking/Backpacking Archery Hunting & Related Shooting Sports Astronomy Mountain Biking Birding/Wildlife Viewing Nature Photography Camping/ Campcraft Skills Natural Resouree/Conservation Careers Citizen Science Projects Orienteering / Geocaching Conservation Service Projects Paddling/ Boating/SUP Cultural Resource Exploration Related to TPWD Rock Climbing/Caving Environmental Education Trail Riding (Horseback) INELIGIBLE ACTIVITIES Arts & Crafts Religious-Based Instruction and Activities Construction Projects/Trail Building Research Projects Coumsein/Phern/Mediatien Special Events/Festvals/Expos (open to general public) Exhibits/Signage Teambuilding/ Retreats Farming/Animal Husbandry/ Agriculture Tournaments or Competitive Events (Hosting) Indoor Classroom or Online-only Projects Traditional Sports/Fitness Programs (Baseball, Soccer, etc.) landscaping/Vegetable Gardening Video Production Marketing/Recruitment/Advertising Woodworking, Axe Throwing MushaterDame/oVes Zipline/Ropes or Obstacle Courses /Amusement Parks Out-of-State Travel Zoos/Exotic Safaris (non-native) 4 DIRECT TPWD RELATIONSHIPS: The CO-OP grant program prioritizes relationships and direct engagement between project participants and TPWD sites, programs, and staff. Proposed projects must have at least one eligible direct relationship, as listed in the Approved TPWD Relationships for CO-OP Grant Projects document. Eligible direct relationships include visiting TPWD owned and operated facilities, participation in TPWD education, training, and outreach programs, and participants working directly with TPWD personnel. Many TPWD relationships require prior communication to request a Commitment Letter from TPWD staff and programs to ensure the planned TPWD project elements can be implemented within limited capacity. A TPWD Letter of Commitment Request template can be found in the RGO Resources section. All grant activities within the scope don't need to incorporate TPWD, but projects with in- depth Agency relationships may be more competitive. * Programs with this star REQUIRE a dated and signed letter of commitment from TPWD that details the specific program partnership being requested in the grant project. Letters must be uploaded at the time of application submittal. Please give TPWD staff a minimum two-week notice of a letter request and last minute requests may not be honored. Ifa TPWD staff member is not able to commit to your project, please do not include this relationship in your project application. TPWD Volunteers may not provide Letters of Commitment. Texas State Parks and State Natural Areas TPWD Instructor Trainings (Certification) Overnight Camping/Lodging Project WILD Suite Curriculum Training Day Trip (Public Workshops) Interpretive Ranger Program (Public) Project WILD Suite Curriculum Training Interpretive Ranger Program (Private Field Trip or (Private Group Workshop)* Group Tour)* TPWD Angler Education Volunteer Service Project on-site* Instructor Training (Public Workshops) TPWD Angler Education Instructor Training TPWD Owned Sites (Private Group Workshop)* TPWD Official Paddling Trails TPWD Community Archery Instructor TPWD Wildlife Management Areas (WMA) Training* - TX: State Fish Hatcheries TPWD National Archery in Schools (NASP) TPWD Sea Center (Lake. Jackson, TX) Instructor Training* TX Freshwater Fisheries Center (Athens, TX) Texas Aquatic Science Curriculum Instructor (Public Workshops) TPWD Outreach Programs Texas Aquatic Science Curriculum Instructor Buffalo Soldier Heritage Outreach Program* (Private Workshops)* TPWDiscover Distance! Virtual Learning Programs* Texas Waters Specialist Certification Program* Texas Outdoor Family Community Campout TPWD Texas Nature Tracker/Citizen Science Partnership Program* Training (Wildlife Division)* NOTE: Participation in this program requires an application submitted directly to the TOF Community Partner program staff. TPWD Education Courses A dated and: signed Partnership. Agreement with TOF: should be (Certification) uploaded with the Commitment letter from TOF Staff. - TX Hunter Education (age 9 or older) TX Hunter Education Instructor Course TPWD Staff Partnerships TX Boater Education (age 13 or older) Please note that TPWD Volunteers are not eligible as the primary TPWD relationship. Other Approved Direct TPWD Relationship: TPWD Urban Biologists* Please reach out to CO-OP Grant staff to Texas Game Warden* discuss if other TPWD relationships are eligible TPWD Conservation Careers/Human Resources' for CO-OP projects. Scoring credit may not be (career fairs) given without prior approval. Other TPWD In-person Staff Visit* 5 TIMELINE & GRANT EXPECTATIONS Approved projects shall be pursued in a timely manner by the applicant, unless delays result from extraordinary circumstances beyond the applicant's control. It is imperative that applicants submit a proposal that is feasible and realistic to implement within the allowable timeline. Since grants are competitively scored and awarded based on these scores, all aspects of the grant proposal, unless otherwise disallowed by CO-OP staff, will be required per the Grant Agreement if funded. Project Schedule Guidelines ACTIVITY TIME FRAME Applications open August 1, 2024 Application Deadline November 1, 2024, 5:00 pm CST Awards Announced March 1, 2025 -Grant Agreement Phase March 1- April 15, 2025 (funds not disbursed during this time) Grant Period of Performance March 1, 2025 - September 1, 2026 (18 months) Quarterly Status Reports (90 Days) On or before July 30, October 30, January 30, and April 30 Final Reporting Due No later than 45 days after the period of performance ends Applications selected for funding will be announced by March 15t and programs may begin, however funds will not be available for disbursement during the Grant Agreement Phase until the signed grant agreement has been fully executed. This includes requests for the one-time Start-Up Advance. Applicants are encouraged to take this into consideration when planning activities in the spring following the application deadline. PARTICIPANT DEMOGRAPHICS CO-OP's primary purpose is to connect new audiences to TPWD sites, programs, and resources, and engage underserved participants in outdoor education and conservation. A minimum of 50% of grant funded program participants must meet at least one of the demographic categories below: Participants A Minimum of 50% of at least one category Traditionally underrepresented in outdoor recreation and within TPWD sites and programs such as Black/African American, Hispanic/Latin, Minority American Indian/Alaska Native, Asian, Native Hawaian/Pacific Islander. Female Female participants of any age. Defined by USDA Food Eligibility Guidelines for the Free & Reduced Low Income School Lunch Program or by federal/local poverty guidelines. Includes physical, intellectual, behavioral, developmental, learning, Individuals w/ a disability and other disabilities. Includes caretakers or family of disabled individuals. In the grant application, sponsors must provide a breakout of participant demographics, along with a detailed explanation for how the percentage was estimated, and how this percentage of participants will be served. Data specific to the population served must be used and general census data, including zip ode/dtly/neghborhood data are not specific enough to award participant demographic and assurance points in the review process. 6 How To Collect Demographic Data Ideal examples of estimating participant demographics include: Partner school demographics if the majority of participants are recruited through that school. In most circumstances, general school district demographics are not specific enough to provide assurances. Commitments from partner organizations to provide participants, who collect similar demographic information and are willing to share this data. Past demographic data collected by your organization for the proposed or other similar programs. Self-reported data from individuals expected to participate in the proposed scope of work, such as a registration form that collects the required demographic data. If awarded a grant, applicants will be required to report demographics for the actual participants served ifproposing at least 50% or more of any category, meaning there must be a method of collecting demographic information specific to those individuals served such as registration forms, surveys, partners collecting data, etc., rather than using the general estimated demographics. If not claiming to serve at least 50%, or if applicants are unable to collect data for certain demographics, enter 0% in the application for that demographic category. Supporting documentation must be available upon request and subject to audit. $ 3 6 7 CO-OP SCORING CRITERIA A committee of TPWD personnel will score each project against the criteria outlined below. Grant funds will be distributed to those projects who score the highest until the funds have been exhausted. CO-OP Priorities (15 points) The quality and efficacy of proposed project outcomes relative to CO-OP Priorities. The quality of the proposed project's involvement of participants in sustained direct connections to Texas Parks and Wildlife sites, programs, and personnel described in the proposed project. The potential for participants to build awareness and continue a relationship with Texas Parks and Wildlife. Underserved Populations (30 points) The extent to which the proposed project includes underserved populations. A clearly articulated plan demonstrating a reasonable probability that the proposed project will reach the target demographic, and a feasible plan to track and report demographic information. The quality and depth of exposure for project participants to engage in direct connections to Texas Parks and Wildlife sites, programs, and personnel. Expected Impact (30 points). A project narrative supporting fully developed program goals that are specific, measurable, attainable, relevant, timebound and present a high potential for success. The extent to which the project will develop life-long behaviors consistent with program mission, with preference for projects that engage participants in multiple experiences over an extended period of time. The extent to which the proposed project will contribute to the development of successive generations of natural resource and outdoor recreation leaders or professionals. Activities utilize a hands-on, active engagement approach to skill development. The quality of the tangible environmental benefits resulting from the activities conducted by participants. Timeline and Budget (20 points) The project has an well developed timeline that accounts for all project phases, is achievable and correlates with the project narrative. The identified budget items are allowable under the administrative guidelines, are reasonable, and clearly support the proposed activities. The budget reflects consciousness of cost effectiveness and provides a reasonable return on investment with respect to participant impact. Organizationdl Capacity (5 points). The proposed project is within the scope oft the applicant's mission. The applicant demonstrates to the department's satisfaction that qualified staff and resources are in place to manage the grant from inception to completion, or, alternatively, evidence that the applicant is partnered with an entity to provide staff and/or resources necessary to manage the grant from inception to completion. The organization plans to continue similar activities and will maintain grant supported supplies and equipment after the grant period ends. Past Performance (20 point max deduction) A scoring deduction will be imposed if the applicant is not in compliance with the conditions of previously funded grants awarded by the Recreation Grants Department. Non-compliance includes failure to spend CO-OP funds, unfulfilled project elements or Grant Agreement requirements, unresponsiveness to department requests for information, and consistently missing, late or incomplete reports required by agreement with the department. 8 APPLICATION ASSISTANCE Grant Application Workshops are coordinated each year to assist organizations in applying for grant funds. These workshops outline eligibility requirements, expectations of the grant, and walk applicants through the steps to submit an online application. Stay current on all grant announcements and upcoming Grant Writing Workshops by signing up for "grants information" through the Texas Parks & Wildlife Department E-newsletter updates at htpr/palicodelwen.epmAscsneDAbxrbet/hewfloate id=TXPWD 299. Start the application process early. Review the Program Guidance and CO-OP Application well in advance before submitting a proposal for grant funds. Projects that demonstrate fully developed program plans and align with grant intent will be more competitive. Some aspects of the grant application include Commitment and/or Partnership letters that may require time to be received from project partners. Take this into account when preparing an application and provide project partners with plenty of time to submit these documents before the application deadline. Late, missing, or incomplete documents will not be accepted after the grant deadline. Unique Entity Identifier (UEI) Number (REQUIRED) A Unique Entity Identifier (UEI) is a 12-digit number that the federal government assigns to entities that want to do business with governmental agencies, including state funded grants. This number is required for all entities, including public and private companies, individuals, institutions, and organizations. The System for Award Management (SAM.gov) generates and distributes UEIs for free at www.SAM.gov. Organizations are encouraged to apply for a UEI early in the application process to allow for delays or further documentation that may be required by SAM. Only the UEI is required for the CO-OP application, not a full entity registration. TPWD does not issue, administer, or facilitate the UEI process. Please reference the UEI Quick Start Guide and help line available at www.SAM.gov for more information. CO-OP utilizes an online application process through Recreation Grants Online (RGO). Paper grant applications will not be accepted. To access the online grant application, please visit the CO-OP website located at httpsl/tpwd.texas.gov/businesgrants/fecreation-grants/community-ourdoor-ouroutreach-programeco-op-grants. Additional information resources and templates can be found in the 'resources" section of RGO, including instructions on how to set up an account, submit applications, and manage active projects. The resources section is located at htps/tpwdregrantsihnteligantscom.Peraaasp.BatD-15 All applicants will receive an email on or around March 1 through the RGO system with notification of their award status. If you have any technical questions about how to use the site, please contact us. Technical support is available Monday through Friday, 8:00 a.m. to 5:00 p.m. CST: Recreation Grants (512) 389-8224 ecGansetowdiessew 9 MANAGING A GRANT AWARD GRANT AGREEMENT Applications selected for funding will be announced by March 15t and programs may begin, however funds will not be available for disbursement during the Grant Agreement Phase until the grant agreement has been fully executed and signed by both parties. Applicants are encouraged to take this into consideration when planning activities in the spring following the application deadline. The Grant Agreement is a binding legal document outlining the terms, conditions, approved budget, and all programmatic requirements fort the project. Ifan activityi is not included in the scope of work, is listed as disallowed in the Special Conditions section of the Grant Agreement or not included in the approved budget; CO-OP will not support that component per the Grant Agreement. Failure to meet Grant Agreement requirements may result in termination of the Grant Agreement or could affect scoring penalties for future grant proposals. Since, grants are competitively scored and awarded based on these scores, all approved aspects oft the grant proposal will be required per the Grant Agreement. This includes, but is not limited to, proposed SMART goals, activity timeline, relationships with TPWD, service project elements, and leadership development components. SMART goals are required in the CO-OP application to assist grant reviewers in understanding the proposed deliverables for the project. If awarded, the proposed SMART goals and additional elements listed above will be incorporated into the Grant Agreement requirements. Progress reports will be assessed to determine if the deliverables and SMART goals are being met for each project. REPORTING REQUIREMENTS Reporting allows staff to evaluate project goals and accomplishments throughout the period of performance. Quarterly reports are due within 30 days of each quarter's end. Final reimbursement requests and final reports are due within 45 days after the project period end date. Quarterly reports must be submitted regardless of grant inactivity for that quarter and are late if received after the due date. Grant Payments may be placed on hold if reports are delinquent. Report Date Due Reporting Period July 30, 2025 March 1 - June 30 October 30, 2025 July 1 - September 30 January 30, 2026 October 1 - December 31 April 30th, 2026 January 1 - March 31st July 30, 2026 April 1 - June 30 September 1, 2026 Performance Period Ends (12am CST) October 15th, 2026 Final Deadline for Final Reimbursement Request and submission of Final Program Report: Comprehensive for entire 18-month period of performance. Quarterly and final reports are submitted through the Recreation Grants Online (RGO) system. Reports include a narrative detailing the progress made towards achieving each grant goal, overall progress of the grant project, demographic data for unduplicated participants, and chronological listing of all activities that occurred in the reporting period. The final report will be comprehensive to include all activities that were supported during the grant period. Unduplicated participants and their associated demographics will be provided in the report narrative. 10 Counting Participants Duplicated Participants - The total participant count. If participants attend multiple events and are counted in each event, it becomes a duplicated count of participants. Duplicated participants are listed in the activity spreadsheet within reports. Unduplicated Participants The actual number of individual participants served. Participants may attend multiple events, but they are counted only once as unduplicated. ALLOWABLE EXPENSES & COST PRINCIPLES This section details the allowable expenses and cost principles for CO-OP grants. Read this section carefully as any non-allowable expenses on the proposed budget will be removed during staff review and organizations will be unable to replace those items with other allowable expenses. Purchases must directly support participant activities throughout the period of performance and large end of grant purchases used only in post-grant activities will be disallowed. Allowable Expenses Personnel & Contractors Personnel expenses are allowed for salaried, hourly, and temporary employees as well as their associated federal payroll taxes required by the Federal Insurance Contributions Act (FICA). Expenses for contractors, substitute teachers, stipends and interns are allowed as well. Personnel expenses will only be reimbursed for people who directly support the approved project activities, not general administrative support staff. Rates for services must be considered reasonable. Documentation showing the proof of payment for each employee or contract staff must be included with the reimbursement request. Sample invoices or timesheets are found in the Fiscal Resources section of RGO. Personnel Best Practices to include Type Work records timesheets) should include the employee's name, hours worked on the grant each day, total hours worked on the grant project during the pay period, charged hourly rate, Employees and be approved electronically or signed by the authorized supervisor. For salaried Salaried or employees, use a salary calculator to convert to an hourly rate. Federal Insurance Hourly Contributions Act (FICA) are allowable expenses and should be calculated using the current federal rate of 7.65%. For guidance on how to calculate FICA, please see the sample document in the Fiscal Resource section of RGO. Expenses can be claimed by submission of invoices. The invoice provided by the contract staff Contract Staff should include the amount, the description of services or activities, the date of services or activities, address, and telephone number. Stipend or Stipend or Interns pay should be reported similar to either 1) Salaried or Hourly or 2) Contract Intern Staff, whichever their pay is most reflective of. Food Approved food expenses are intended to provide meals, snacks, and beverages during programs and/or groceries for cooking meals during programs. Expenses claimed for food must directly support grant-reported activities, and must be considered reasonable, such as box lunches and groceries for meal preparation. Expenses such as fast food, gas station snacks, catered meals/sit-down restaurant expenses for large groups are discouraged. These costs may be disallowed if there are reasonable alternatives and pre-approval by CO-OP staff is required. Receipts for food expenses should be itemized and include what was purchased, vendor, address, phone, date, amount and linked to a grant activity. Sales Tax, Alcohol, Gratuity, both automatically or manually included, are not allowable and need to be removed from payment documentation prior to submission. 11 Travel Travel can include gas purchased for the activity, mileage, rental vehicles or trailers, use of school or charter buses, or other travel expenses directly related to project activities. The purchase of vehicles is prohibited with CO-OP funds. Payment can be requested for mileage or for gas, but not for both costs. If requesting payment for mileage for fleet or personal vehicle use, include a vehicle mileage log and the rate must followthe IRS business mileage rate at time of travel found at ntps/www.sgovlesonastnstandarc-mleaerates For personal vehicle use, those individuals should be reimbursed bythe organization using a mileage log before a reimbursement is requested by TPWD. Mileage logs should include the date the vehicle was used, starting and ending addresses, explanation on how the vehicle was being used to support the grant, total miles claimed, the IRS standard mileage rate, and the total claimed. A Google map for point-to-point travel mileage calculation may be submitted in lieu of a mileage log. Lodging and Facilities Expenses to cover park campsites and park facilities such as barracks, shelters, or group halls are allowed. Requests for lodging costs for hotels must be pre-approved, should be limited, provide a justification of need, and demonstrate reasonable cost. In the spirit of the grant and engaging participants in the outdoors, privately-owned rentals sites such as Airbnb, VRBO, Hipcamps, etc. are allowed only in special circumstances and require pre-approval from CO-OP staff. Sales tax is not reimbursable; however, hotel/occupancy tax may be reimbursed. Itemized receipts or invoices are required and should include the date of stay, night rate, number of rooms per night, name of establishment, proof of payment, and zero outstanding balance. Recipients should consult State guidelines regarding lodging rates found at ntp/wwsagPV/pora/conteny/04877 if applicable to their organization, otherwise reasonable lodging rates should be utilized. Tax Types: Anything submitted as Sales Tax is not reimbursable - whether manually or automaticaly included. Examples of non-sales taxes and fees that are permissible include: Hotel Occupancy tax, Hotel State tax, Hotel County tax, motor vehicle rental taxes, concession fee, consolidated facility charge. Fees (Park, Program, liability insurance and training) A variety of park, activity, and program fees are allowed through this grant. Examples include but are not limited to fees for park entrance, site reservations, entrance fees (nature centers, national parks, etc.), and activity fees (rock climbing gyms, education programs, tours, etc.). Please note that state parks are not required to waive entry or camping fees and these costs should be included in your budget. State Park Group Passes are eligible for funding, and all pass policies must be followed. Individual State Park Passes may not be purchased to be given to program participants for their own use with grant funds. Payment requests for reservation fees can be submitted once the reservation has been purchased, recipients do not need to wait until the event takes place to request reimbursement. Lump sum, general program fees paid directly to the Recipient for their own programs are not eligible, including scholarships. General liability insurance for participants, staff, and volunteers supported by the approved project is allowed. Insurance can only be purchased for the Project Recipient, not third parties associated with the project. Liability insurance costs must be pro-rated to only account fort the activities supported with CO-OP grant funds. The Recipient must determine how to allocate liability insurance costs between their programs if the other programs are not supported by the current CO-OP grant. Examples on how to allocate could include dividing cost per personnel headcount between programs, byt total participants served, or byt total project expenditures. Written policies should be developed for how general liability insurance is tracked and split between programs, which may be requested during the payment process. If requesting liability insurance in the proposed budget, provide an explanation of the above calculations in the Budget Summary portion of the application. When submitting a payment request, the amount requested is based on actual cost incurred. Other types of insurance such as Directors & Officers, vehicle, and property insurance are not allowed through this program. 12 Vehicle rental agencies offer an optional collision damage waiver (CDW), which helps pay for damage to the rented vehicles. The waiver's cost depends on various factors, including the rental car type and where the vehicle is being driven. CDW's are eligible for reimbursement if the vehicle rental is used for program specific activities. Training to develop staff and volunteers must directly support CO-OP grant-related activities and if proposed as needed to implement programming, should be completed prior to program delivery If the training is not offered in Texas, out-of-state training will be allowed with justification of need and approval from CO-OP staff National Conferences and general professional development are not allowed. Examples of supported training include CPR, Wilderness First Aid, ACA kayak certifications, TPWD training fees (Project WILD, Angler Education Instructor certification, Hunter or Boater Education Courses, etc.). Advanced Training such as rock-climbing certifications, lifeguard training, or Wilderness First Responder should demonstrate a reasonable program need to support participants. Outdoor Service Project Expenses The cost of materials for outdoor service projects related to environmental education and conservation is allowed. Examples of expenses include garbage bags, gloves, native plants, mulch, shovels, etc. Only native plants and trees can be purchased as invasive or non-native species will not be supported. The creation of pollinator gardens or native habits should clearly demonstrate a program need and not be used as landscaping. Irrigation systems, fencing, and greenhouses are not allowable expenses. Please note that no activities or expenses relatedi to vegetable gardens or sustainable agriculture are allowed. Supplies & Equipment Supplies are defined as tangible personal property with a per-unit cost of less than $10,000. For CO-OP, examples include gear required for approved program activities such as tents, kayaks, fishing poles, hunting rifles, t-shirts, environmental science materials, adaptive recreation supplies, etc. Computers and electronics, including drones, are allowed if necessary to complete allowable grant activities. All supplies purchased with grant funds must remain with the organization and can't be given to participants for personal benefit, except certain safety items such as t- shirts, water bottles, hats, etc. Purchases must directly support participant activities throughout the period of performance and large end of grant purchases used only in post-grant activities will be disallowed. Guidelines Required When Purchasing Supplies with State Grant Funds Supplies purchased must be directly used for eligible grant-supported activities within the grant period of performance. Title to supplies will vest with the Recipient upon acquisition who must use, manage, and dispose of supplies acquired from a CO-OP grant in accordance with applicable State laws. Ifthere is a residual inventory of unused supplies exceeding $10,000 in total aggregate value upon termination or completion of the project, the Recipient must either sell the supplies Supplies or retain them for use on other activities and compensate CO-OP for its share of the value. As long as CO-OP retains an interest in the supplies, the Recipient must not use supplies acquired under a CO-OP grant to provide services to other organizations for a fee that is less than private companies charge for equivalent services, unless prior written approval from CO-OP staff is obtained. Trailer purchases are a common expense. For trailers, a Bill of Sale invoice, which includes the VIN number is required. Trailers must be purchased from a business with a motor vehicle sales permit and proof of payment. The title must be in the organization's name and motor vehicle sales tax, which is different from the standard sales tax, is allowed. Equipment is defined as tangible personal property, having a useful life of more than one year and a per-unit cost which equals or exceeds $10,000. 13 Guidelines Required When Purchasing Equipment with State Grant Funds Equipment must be used by the Recipient in the program for which it was acquired as long as needed, whether or not the program continues to be supported by a CO-OP grant. Prior written approval by CO-OP staff is required ift the Recipient desires to use the equipment (1) for activities in support of other programs (2) to provide services for a fee that is less than private companies charge for equivalent services, and (3) as a trade-in with the proceeds to offset the cost of replacement property. The Recipient must obtain written disposition instructions from CO-OP staff when the original or replacement equipment acquired under a state award is no longer needed for the original program, unless the per unit fair market value of the equipment is less than $10,000 The Recipient will manage equipment with the following guidelines: a) Property records must be maintained that include a description of the property, a serial Equipment number or other identification number, the source of funding for the property, who holds title, the acquisition date, cost of the property, percentage of State participation in the cost of property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. b) A physical inventory of the property must be taken by the Recipient at least every two years. C) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be investigated. d) Adequate maintenance procedures must be developed to keep the property in good condition. e) If the Recipient is authorized to sell the property, proper sales procedures must be established to ensure the highest possible return. A a 14 Disallowed Expenses All items must be listed on the approved budget received upon award to be eligible for payment. Expenses listed in the budget should be supported by activities detailed throughout the proposed application and quarterly reporting. Purchases should directly support participant activities throughout the period of performance and large end of grant supply or equipment purchases not directly associated with delivered participant activities are not allowed. Refer to the Allowable Expenses section in this Guidance for information about eligible and ineligible expenses. COMMON DISALLOWED COSTS INCLUDE BUT ARE NOT LIMITED TO: Advertising, marketing, promotional items (brochures, Live animals or fish stocking flyers, swag, vehicle wraps, etc.) Alcoholic beverages Membership Fees, unless otherwise approved Arts and crafts materials (unless related to Office or Property Leasing environmental education activities) Climbing Walls (purchased or constructed) Per diem or Honorarium Computer games, software, licenses, or website Personnel benefits outside of FICA development Curriculum development or design consultants** Prizes, Awards, or Certificates Entertainment, end of year parties, ceremony Program Fees or Scholarships paid directly to recipient expenses Exhibits/ Signage (purchased or constructed) Religious items or activities Expenses incurred before or after the grant period Sales Tax Facility/Grounds maintenance, Landscaping (including Stages, speakers, amplification devices for large public irrigation, fencing, etc.) events or podcasting equipment Gift cards or Gas cards for personnel, participants, or Storage buildings or boat/vehicle storage fees volunteers AASupplies or equipment given directly to participants Gratuity (automatically or manually included) (tents, books, hygiene items, backpacks, park passes) Greenhouses and Sheds Vegetable Gardens Indirect costs (phone, internet/hotspots, utilities) Vehicle or Boat Maintenance Insurance- D&0, vehicle or property (participant Vehicles, motorboats, golf carts, e-bikes (items w/a liability allowed) motor) Video and camera equipment, unless directly and Interest or late fee expenses significantly used by program participants **Certain curriculum development or design could be included on a case-by-case basis if approved by CO-OP staff but must be directly related to natural resources/envronmenta: education. Most of the grant scope of work must be focused on direct participant activities. AAAII supplies and park passes purchased with grant funds must remain with the organization and can't be given to participants for personal benefit, with the exception of certain justifiable and reasonable safety items such as T- shirts, sun hats, or water bottles. Please contact CO-OP staff if your project requires specific exceptions for low- income or disabled participants. 15 Cost Principles CO-OP grant dollars are derived from State funds and must follow the requirements outlined in the Texas Grant Management Standards as designated by the Texas Comptroller of Public Accounts. For more information on disallowed expenses, Cost Principles and other requirements, review Texas Grant Management Standards. Allowability of Costs Except where otherwise authorized by statute, costs must meet the following general criteria to be allowable under state awards: 1. Be necessary and reasonable for the performance of the state award and be allocable thereto under these principles. 2. Conform to any limitations or exclusions set forth in these principles or in the state award as to types or amount of cost items 3. Be consistent with policies and procedures that apply uniformly to both state-financed and other activities of the recipient. 4. Be accorded consistent treatment. A cost may not be assigned to a state award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the state award as an indirect cost. 5. Be determined in accordance with GASB standards. 6. Not be included as a cost or used to meet cost sharing or matching requirements of any other state financed program in either the current or a prior period. 7. Be adequately documented. See the Standards for Financial and Program Management section of Texas Grant Management Standards. Reasonable Costs A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. In determining reasonableness of a given cost, consideration must be given to: 1. Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the recipient or the proper and efficient performance of the state award. 2. The restraints or requirements imposed by such factors as sound business practices; arm's-length bargaining; federal, state, local, tribal, and other laws and regulations; and terms and conditions of the state award. 3. Market prices for comparable goods or services for the geographic area. 4. Whether the individuals concerned acted with prudence in the circumstances considering their responsibilities to the recipient, its employees, where applicable its students or membership, the public at large, and the state government. 5. Whether the recipient significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the state award' S costs. Allocable Costs A cost is allocable to a particular state award or other cost objective in the goods or services involved are chargeable or assignable to that state award or cost objective in accordance with relative benefits received. This standard is met if the cost: 1. Is incurred specifically for the state award; 2. Benefits both the state award and other work of the recipient and can be distributed in proportions that may be approximated using reasonable methods; and 3. Is necessary to the overall operation of the recipient and is assignable in part to the state award in accordance with the principles in the Cost Principles section. 16 PAYMENT PROCEDURES Prior to purchasing expenses towards the grant, Recipients should check their Approved Budget to make sure the expense is listed with an associated "Approved TPWD Cost" dollar value. Items listed in the application are not always approved. Expenses incurred before or after the period of performance dates are not eligible for payment. CO-OP is a state funded reimbursement grant program where payments may take up to 30 days to be processed upon receipt of all required documentation. The recipient organization applying must have the financial and administrative resources to purchase expenses upfront and receive reimbursement payment by submitting the required receipts and documentation. Under special circumstances, a one-time Start Up Advance payment of up to 10% of the total grant may be requested by the recipient to assist with start-up costs after the grant agreement and all required documents have been fully signed and executed. The one-time Start Up Advance request may take up to 30 days to process. issuance is not guaranteed and is dependent on risk assessment factors, approval of the recipient's fiscal systems, and justified need. Grant Payment Types The CO-OP grant program is a reimbursement grant. Under this process, applicants Reimbursement are required to purchase the item(s) first, then request a reimbursement payment after the transaction is complete and all required documentation has been provided. Under special circumstances only, CO-OP grant recipients may submit a one-time Start Up Advance Payment request for up to 10% of the approved grant amount to assist with initial start-up costs for the grant-funded program. Requests need to be One-time submitted in the RGO system and can only be requested upon full execution of the Start Up Advance signed grant agreement and once the grant is in active status. Full instructions can be located in the RGO Resources section, where the "Advanced Funds Request Form and Projected Expenditures" form can be located. Request for payment should be submitted on a regular basis, preferably quarterly if expenses were incurred during that quarter. Payment requests must be submitted through Recreation Grants Online. Instructions on how to submit a payment request are detailed in the Awarded Project Resources page. No matter what payment type used, payments may take up to 30 days to process and could be longer if all documentation was not received. First payments (even after a direct deposit form has been filed) may come in the form of a check. Documentation Required for Payment To receive payment for funds, the following backup documentation must be provided: 1. Receipt, Invoice, or Employee Work Record: A copy of each invoice, receipt, or work record is required and must be legible. The receipt should clearly show the date of purchase, vendor name, and itemization of items purchased. All sales tax will be disallowed. Handwritten receipts generated by purchases at smaller stores must include the name of company, address and phone number, date of purchase, items purchased, amount paid, type of payment, and signature of the merchant. For details on specific requirements, such as employee work records, please refer to the Budget and Allowable Expenses section above. 2. Proof ofPayment: Provide the below proof of payment documentation depending on the purchase type. i. Digital Check Copy: copy of front side of check containing check amount digitally printed by bank under the signature line or copy of non-canceled check with bank statement showing check cleared account. Electronic copies of checks obtained online are acceptable. ii. Credit Card: copy of credit card statement showing the payment for the expenditure and copy of digital check copy showing the payment of that statement. 17 iii. Debit Card: copy of the bank statement showing the debit payment for the expenditure. iv. Petty Cash or Gift Card Transaction: an itemization for the cash being withdrawn from the petty cash account during the specified period in which the expenditure occurs and copy of digital check copy showing the replenishment of those funds. Transactions paid for by donated gift cards are not eligible for reimbursement. V. Personal Funds: a copy of the receipt as well as a copy of the digital check, used to reimburse the individual will be required for reimbursement. vi. Direct Deposit or Electronic Fund Transfers (EFT): receipt or timesheet and proof of payment. Proof of payment may be from a bank statement, or the payroll system used to complete the transaction. For detailed information on documentation required for payment, refer to Texas Grant Management Standards. 18 Payment Request Flowchart: Understanding the State of Texas Payment Process A. For Reimbursement. Requests Recipient Submits Documents TPWD Fiscal Team Reviews If Additional Information is Backup Documentation Required from Recipient V Recipient Signs Payment Certification Form TPWD Final Review & Sends to AP for Payment y Payment Received by Recipient B. For One-time Start Up Advance Request Can begin once the grant agreement is fully executed/signed by all parties and the grant is in ACTIVE status. Recipient Submits "Advanced Funds Request Form and Projected Expenditures" form Director Review/Approval Advanced Payment Payment Certification form Is Complete sent to Recipient Recipient Signs Payment TPWD Fiscal Team Certification Form Approves Request TPWD Final Review & Sends TPWD Fiscal Team Reviews Additional Information to AP for Payment Backup Documentation Required from Recipient Payment Received by Recipient Submits Backup Recipient Documentation 19 AMENDMENTS & BUDGET REVISIONS Any changes to the Grant Agreement requirements must be approved by CO-OP staff via an amendment or budget revision process, both of which are executed through the online grant management system. For specific instructions on how to submit an amendment or budget revision request, visit the Awarded Project Resources page. Neither budget amendments nor revisions will increase the total grant amount. Budget amendments are used to add a new item that is not currently listed on the approved grant budget. Budgetrevisions are used to transfer funds from one budget category to another budget category on the approved budget. For budget revision requests, include the new item to be added, its' associated cost, and which existing line item(s) will be decreased to offset the cost. No signatures are required. They can be requested after the new item is purchased; however, it's highly recommended to complete budget revisions before the expense is incurred in case approval is denied. Amendments require signatures from both parties and must be completely executed before the modification is incorporated. Amendment requests should be completed under the following circumstances: 1. To request an extension to the grant period. A 6-month extension can be requested for projects that need additional time to fulfill the programming for the grant, most often due to weather or unforeseen circumstances. The request must be made in the RGO system at least 45 days prior to the end of the performance period. If approved, a new grant agreement will be issued and must be executed and signed by TPWD and the recipient before the end of the performance period. Projects that need to extend the performance period are not eligible to apply for another CO-OP grant until the following year's cycle opens in August. 2. To request a change in project scope. Note that a change in project scope is rare and only approved because of extraordinary circumstances that are beyond the grantee's control. CLOSEOUT PROCEDURES The grant period of performance is 18 months, from March 1 to the following September 15t and is listed in the Grant Agreement. All activities and purchases must be incurred within the period of performance. The closeout process can begin once all grant activities are complete. Notify CO-OP grant staff when you're ready to begin the closeout process and the project will be moved into the closeout workflow in RGO where a comprehensive final report will become available. The final report is comprehensive and must include ALL grant-funded programs that took place during the grant period, in chronological order, over the 18-month period. The Final Program Report will address the status of each grant goal, as listed in your signed grant agreement, as well as report the demographic data for all unduplicated participants. Your Final Grant Report should align with all submitted quarterly reporting data. Ify you have partnered with other CO-OP grantees, please ensure only (1) organization is reporting those programs and participants. Final payment requests and the final report are due no later than 45 days after the end of the period of performance listed in the Grant Agreement. Submit your final payment requests early and don't wait until the last minute. Some items may be ineligible for payment or more documentation may be needed. Failure to spend significant grant funds may negatively impact future grant review scores. The final report and final payment request will be reviewed to determine if all requirements have been met. Once the final payment is complete and the final report reviewed, the grant will officially close. An email notification will be sent via Recreation Grants Online stating the grant has closed. 20 POLICIES & REGULATIONS Logo Use & Marketing Ify you would like to utilize the Texas Parks & Wildlife logo on any of your grant-related materials, you must abide by the specifications listed on the Logo Use Agreement. Grantees are authorized to use the TPWD Proud Partner logos only. Please note that grantees must provide a sample ofthe graphic with the logo on the product to CO-OP program staff for approval before use. Record Keeping & Retention Unless otherwise directed by the state agency, the recipient must maintain and retain records (for example, financial records, performance records, supporting documents) until the third anniversary of the later date of (1) the grant completion or expiration or (2) the resolution of all issues that arose from any litigation, claim, negotiation, audit, open records request, administrative review, or other action involving the grant or documents State Regulations The recipient is obligated to adhere to all requirements of the Texas Grant Management Standards (TXGMS) established by the Texas Comptroller of Public Accounts sp/comptolslessseaspVpurdasnygent management/. Texas Administrative Code The recipient is obligated to adhere to all requirements established in the Parks and Wildlife Code Chapter 24 and the Texas Recreation and Parks Account program including program guidelines set out at 31 TAC Sec. 61 Subchapter E. 21 RESOURCES CONTACT INFORMATION Questions concerning the CO-OP grant application, Program Guidance, or any aspect of grant management should be directed to: Recreation Grants Branch Texas Parks & Wildlife Department 4200 Smith School Road Austin, Texas 78744 (512) 389-8224 tpwwwpwdessseasgo/pusinesfgrants, CO-OP Program Staff Rena Beyer CO-OP Grant Manager (737) 701-4769 mmabeyeretowdieaisoy Jessica Lagalo CO-OP Grant Coordinator (512) 389-8254 SBBRARPpMEaNseN If you have any technical questions about how to use the online grant management system, please contact BepowEEpNdIeaNsOA Technical support is available Monday through Friday, 8:00 a.m. to 5:00 p.m. CST. To be notified of upcoming TPWD grant deadlines, workshops, and public hearings go to our website https:lIservice.govdelverycom/arcounts/vypwd/subscriber/new to register your email and select "Grant Opportunities." For information about TPWD State Parks, TPWD facilities, programs, and activities go to our website at www.tpwdtexasgov 22 Recreational Grants Logo Use Agreement TEXAS PARKS & Between Grant Recipients and Texas Parks and WILDLIFE Wildlife TERM The Logo Use Agreement will begin upon signatures by both parties and will be in effect during the period of performance listed in the grant agreement, or until within thirty days of any decision made by Texas Parks and Wildlife Department to terminate this agreement, whichever comes first. LICENSE OF TPWD MARK Texas Parks and Wildlife Department referred to hereinafter as TPWD, hereby grants to the Recreational Grant Recipient or CO-OP Grantee, referred to hereinafter as the Requestor, a non-exclusive right, license and privilege of utilization of the TPWD logo with Proud Partner designation, hereinafter referred to as the MARK, as shown on Exhibit A. USAGE The MARK may be used by the Requestor only in connection with activities or projects related directly to the grant received from TPWD and is not to be used in any context or in any manner as to suggest TPWD's endorsement of the organization. The MARK can only be used in context of the Grant's funded activity(s) or Project(s) and is only for the following specific uses: T-shirts, hats, water bottles, promotional materials, or other similar grant-related items. Grantee recognizes and agrees that all goodwill associated or to be associated with the MARK belongs exclusively to TPWD in any form or embodiment thereof. The Grantee hereby agrees that every use of the MARK shall inure to the benefit of TPWD and that shall not at any time acquire any rights in such MARK by virtue of any use it may make of such MARK. The Grantee shall not, at any time, do or suffer to be done any act or thing which may in any way adversely affect any rights of TPWD in and to the MARK of any registrations thereof. The MARK should not be distorted or altered. All use must adhere to the identity standards as defined in Exhibit A. This logo release agreement has been reviewed and approved by Texas Parks and Wildlife Marketing Director or the Communications: Director or their designee. The Recreation Grants Branch Director is authorized by the Communications Director as a designee to provide final approval of this agreement and will provide to the Grantee high resolution digital files of the TPWD logo with Proud Partner Designation, in ooth color and black and white, upon execution of this logo use agreement. It is understood that use of the logo other than what has been specified herein must be submitted as a separate request directly to logo eguest@pAdlexas.ov and must be approved prior to use. A: sample of all uses of the MARK during the agreement period should be submitted by email to the TPWD Recreation Grants Director or their designee, who provides final approval of this agreement SO that TPWD may 0 retain a record of how its logo has been used and can address any incorrect uses of the logo if such occurs. e > TPWD reserves the right to terminate this agreement upon written notification. Grant Recipient Signature lagaole Director of Recreation Grants Signature Exhibit A of Proud Partner TEXAS TEXAS PARKS & PARKS & WILDLIFE WILDLIFE Life's better outside. Life's better outside. PROUD PARTNER PROUD PARTNER Texas Parks and Wildlife Department maintains the information collected through this form. With few exceptions, you are entitled to be informed about the information we collect. Under Sections 552.021 and 553.023 of the Texas Government Code, you are also entitled to receive and review thei information. Under Section 559.004, you are also entitled tol have this information corrected. TPWD, 4200 Smith School Road, Austin, TX 78744, 800-792-1112, wwwlpwdlexas.ov Uniform Assurances for State Funded Awards 01/01/2025 Texas Parks and Wildlife Department Recreation Grants Branch Uniform Assurances for State Funded Awards UNIFORM ASSURANCES Child Support Obligation Recipient represents and warrants that it will include the following clause in the award documents for every subcontract and will require contractors to certify accordingly: "Under Section 231.006 of the Family Code, the vendor or applicant certifies that the individual or business entity named in this contract, bid or application is not ineligible to receive the specified payment and acknowledges that this contract may be terminated and payment may be withheld if this certification is inaccurate. A bid or an application for a contract paid from state funds must include the name and social security number of the individual or sole proprietor and each partner, shareholder, or owner with an ownership interest of at least 25 percent of the business entity submitting the bid or application." Cybersecurity Training Program Recipient represents and certifies its compliance with Section 2054.5191 of the Texas Government Code relating to the cybersecurity training program for local government employees who have access to a local government computer system or database. If Recipient has access to any state computer system or database, Recipient shall complete cybersecurity training and verify completion of the training program to the Department pursuant to and in accordance with Section 2054.5192 of the Government Code. Debarment and Suspension Recipient certifies that it and its principals are not suspended or debarred from doing business with the state or federal government as listed on the State of Texas Debarred Vendor List maintained by the Texas Comptroller of Public Accounts and the System for Award Management (SAM) maintained by the General Services Administration. Debts and Delinquencies With the exception of a Texas State Agency, Recipient agrees that any payments due under the contract or grant shall be applied towards any debt or delinquency that is owed to the State of Texas. Disclosure Protections for Certain Charitable Organizations, Charitable Trusts and Private Foundations Recipient represents and certifies that it will comply with Section 2252.906 of the Texas Government Code relating to disclosure protections for certain charitable organizations, charitable trusts, and private foundations. Dispute Resolution The dispute resolution process provided in Chapter 2009 of the Texas Government Code is available to the parties to resolve any dispute arising under the agreement. Page 1 of5 5 Uniform Assurances for State Funded Awards 01/01/2025 Excluded Parties Recipient certifies that it is not listed in the prohibited vendors list authorized by Executive Order No. 13224, "Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism", published by the United States Department of the Treasury, Office of Foreign Assets Control. Executive Head of a State Agency Affirmation Under Section 669.003 of the Texas Government Code, Recipient certifies that it does not employ, or has disclosed its employment of, any former executive head of the Agency. Funding Limitation Recipient agrees that nothing in this Grant Agreement will be interpreted to create an obligation or liability of the Department in excess of the funds delineated in this Grant Agreement. Recipient agrees that funding for this Grant Agreement is subject to the actual receipt by the Department of grant funds appropriated to the Department. Recipient agrees that the grant funds, if any, received from the Department may be limited by the term of each state biennium and by specific appropriation authority to and the spending authority of the Department for the purpose of this Grant Agreement. Recipient agrees that notwithstanding any other provision of this Grant Agreement, if the Department is not appropriated the funds or if the Department does not receive the appropriated funds for this grant program, or if the funds appropriated to the Department for this grant program are required to be reallocated to fund other federal or state programs or purposes, the Department is not liable to pay the Recipient any remaining balance on this grant. Indemnification To the extent permitted by the laws and constitution of the State of Texas, Recipient SHALL DEFEND, INDEMNIFY AND HOLD HARMLESS THE STATE OF TEXAS AND DEPARTMENT, AND/OR THEIR OFFICERS, AGENTS, EMPLOYEES, REPRESENTATIVES, CONTRACTORS, ASSIGNEES, AND/OR DESIGNEES FROM ANY AND ALL LIABILITY, ACTIONS, CLAIMS, DEMANDS, OR SUITS, AND ALL RELATED COSTS, ATTORNEY FEES, AND EXPENSES ARISING OUT OF, OR RESULTING FROM ANY ACTS OR OMISSIONS OF Recipient OR ITS AGENTS, EMPLOYEES, SUBCONTRACTORS, ORDER FULFILLERS, OR SUPPLIERS OF SUBCONTRACTORS IN THE EXECUTION OR PERFORMANCE OF THE CONTRACT and any Purchase orders issued under THE CONTRACT. THE DEFENSE SHALL BE COORDINATED BY Recipient WITH THE OFFICE OF THE TEXAS ATTORNEY GENERAL WHEN TEXAS STATE AGENCIES ARE NAMED DEFENDANTS IN ANY LAWSUIT AND Recipient MAY NOT AGREE TO ANY SETTLEMENT WITHOUT FIRST OBTAINING THE CONCURRENCE FROM THE OFFICE OF THE TEXAS ATTORNEY GENERAL. Recipient AND DEPARTMENT AGREE TO FURNISH TIMELY WRITTEN NOTICE TO EACH OTHER OF ANY SUCH CLAIM. Law Enforcement Agency Grant Restriction If Recipient is a law enforcement agency regulated by Chapter 1701 of the Texas Occupations Code, Recipient represents and certifies that it will not use appropriated money unless the law enforcement agency is in compliance with all rules adopted Page 2 of 5 Uniform Assurances for State Funded Awards 01/01/2025 by the Texas Commission on Law Enforcement (TCOLE), or TCOLE certifies that it is in the process of achieving compliance with such rules. Legal Authority Recipient represents that it possesses legal authority to apply for the grant. A resolution, motion or similar action has been duly adopted or passed as an official act of the Recipient's governing body, authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative, or the designee of Recipient to act in connection with the application and to provide such additional information as may be required. Limitations on Grants to Units of Local Governments Recipient acknowledges and agrees that appropriated funds may not be expended in the form of a grant to, or contract with, a unit of local government unless the terms of the grant or contract require that the funds received under the grant or contract will be expended subject to the limitations and reporting requirements similar to those provided by the following: . Parts 2 and 3 of the Texas General Appropriations Act, Art. IX, except there is no requirement for increased salaries for local government employees; Sections 556.004, 556.005, and 556.006 of the Texas Government Code; and Sections 2113.012 and 2113.101 of the Texas Government Code. Lobbying Expenditure Restriction Recipient represents and certifies that Department's payments to Recipient and Recipient's receipt of appropriated or other funds under the grant are not prohibited by Sections 403.1067 or 556.0055 of the Texas Government Code which restrict lobbying expenditures. No Conflicts of Interest Recipient represents and certifies that performance under the grant will not constitute an actual or potential conflict of interest or reasonably create an appearance of impropriety. Further, Recipient represents and certifies that in the administration of the grant, it will comply with all conflict of interest prohibitions and disclosure requirements required by applicable law, rules, and policies, including Chapter 176 of the Texas Local Government Code. If circumstances change during the course of the grant, Recipient shall promptly notify Agency. No Waiver of Sovereign Immunity The Parties expressly agree that no provision of the Grant Agreement is in any way intended to constitute a waiver by the Department or the State of Texas of any immunities from suit or from liability that the Department or the State of Texas may have by operation of law. Page 3 of5 5 Uniform Assurances for State Funded Awards 01/01/2025 Open Meetings If the Recipient is a governmental entity, Recipient represents and certifies its compliance with Chapter 551 of the Texas Government Code which requires all regular, special or called meeting of a governmental body to be open to the public, except as otherwise provided by law. Political Polling Prohibition Recipient represents and certifies that it does not perform political polling and acknowledges that appropriated funds may not be granted to, or expended by, any entity which performs political polling. Public Camping Ban Recipient certifies that it has not received a final judicial determination finding it intentionally adopted or enforced a policy that prohibited or discouraged the enforcement of a public camping ban in an action brought by the Attorney General under Local Government Code $364.003. If Recipient is currently being sued under the provisions of Local Government Code $364.003, or is sued under this section at any point during the duration of this grant, Recipient must immediately disclose the lawsuit and its current posture to the Agency. Records Retention Recipient shall maintain and retain all records relating to the performance of the grant including supporting fiscal documents adequate to ensure that claims for grant funds are in accordance with applicable State of Texas requirements. These records will be maintained and retained by Recipient for a period of four (4) years after the grant expiration date or until all audit, claim, and litigation matters are resolved, whichever is later. Agency reserves the right to direct a Recipient to retain documents for a longer period of time or transfer certain records to Agency custody when it is determined the records possess longer term retention value. Recipient must include the substance of this clause in all subawards and subcontracts. Texas Public Information Act Recipient understands that Department will comply with the Texas Public Information Act (Chapter 552 of the Texas Government Code) as interpreted by judicial rulings and opinions of the Attorney General of the State of Texas. Information, documentation, and other material in connection with this Grant Agreement or any resulting contract or grant may be subject to public disclosure pursuant to the Texas Public Information Act. In accordance with Section 2252.907 of the Texas Government Code, Recipient is required to make any information created or exchanged with the State pursuant to the contract, and not otherwise excepted from disclosure under the Texas Public Information Act, available in a format that is accessible by the public at no additional charge to the State. Reporting Compliance Recipient represents and certifies that it will submit timely, complete, and accurate reports in accordance with the grant and maintain appropriate backup documentation to support the reports. Page 4 of5 Uniform Assurances for State Funded Awards 01/01/2025 Reporting Suspected Fraud and Unlawful Conduct Recipient represents and certifies that it will comply with Section 321.022 of the Texas Government Code which requires that suspected fraud and unlawful conduct be reported to the State Auditor's Office. State Auditor's Right to Audit The state auditor may conduct an audit or investigation of any entity receiving funds from the state directly under the contract or indirectly through a subcontract under the contract. The acceptance offunds directly under the contract or indirectly through a subcontract under the contract acts as acceptance of the authority of the state auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. Under the direction of the legislative audit committee, an entity that is the subject of an audit or investigation by the state auditor must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. a 6 RECIPIENT NAME : Signature: Name and Title: Date: Page 5 of5 TEXAS GRANT MANAGEMENT STANDARDS STATEWIDE PROCUREMENT DIVISION I - Version 2.0 - E - RE - AF E - Glenn Hegar Texas Comptroller of Public Accounts STATEWIDE PROCUREMENT DIVISION TABLE OF CONTENTS INTRODUCTION . 1 BACKGROUND. . 2 SCOPE . 2 Applicability to Certain Transactions 2 Authorization of Agency-Specific Variation - 3 Incorporation of Federal Uniform Guidance and Implementing Regulations 4 KEY CONCEPTS = STATE AGENCY GRANTS. 5 Grant-Making Authority 5 Appropriated Funds 5 Grants and Contracts. 5 State Fiscal Management . 6 Overview . 6 Certain Fiscal Policies 6 Withholding and Offset 6 Use of State Money or Property for Private Purposes 6 Distribution of Grant Funds. 7 Statewide Single Audit 7 Statewide Cost Allocation Plan. 7 State Ethics Laws 8 Transparency and Accountability 8 Grant Opportunity Announcements . 8 Agency Website - 8 Grant Opportunities on the Electronic State Business Daily (ESBD) and eGrants. 8 Grantee Selection 9 State Agency Procurement - 9 Reporting Requirements 9 Intergovernmental Coordination 9 Federal Uniform Guidance . 10 UNIFORM ASSURANCES . 11 STANDARD FINANCIAL MANAGEMENT CONDITIONS . 11 Overview 11 Federal Grant Programs * 11 State Grant Programs. 12 Overview 12 Texas Grant Management Standards Version 2.0 - STATEWIDE PROCUREMENT DIVISION Grant Award to Local Government. 12 Standards for Financial and Program Management 12 Statutory and Policy Requirements 12 Performance Measurement 12 Financial Management . 12 Internal Controls 13 Bonds and Insurance - 13 Payment . 13 Cost Sharing 14 Program Income 16 Revision of Budget and Program Plans 16 Period of Performance 17 Grantee Subawards and Contracts 17 Sub-grantee and Contractor Determination 17 Procurement Contracts . 18 GENERALI PROCUREMENT STANDARDS 18 COMPETITION 19 CONTRACT COST AND PRICE 20 STATE AGENCY REVIEW 20 BONDING REQUIREMENTS 21 CONTRACT PROVISIONS 21 Subaward Procedures 21 REQUIREMENTS! FOR PASS'THROUGHENTTIES 21 FIXED. AMOUNT AWARDS 21 PRE-AWARD RISK REVIEW OF APPLICANTS 22 SPECIFIC CONDITIONS. 23 INFORMATION CONTAINED IN A SUBAWARD 23 EVALUATION OF SUB-GRANTEE'S RISK OF NONCOMPLIANCE, 24 SUB-GRANTEE MONITORING AND MANAGEMENT 24 Property Standards .25 Insurance Coverage .25 Real Property .25 State-owned Property .25 Equipment . .25 Supplies * .26 Intangible Property .26 Property Trust Relationship .26 Performance and Financial Monitoring and Reporting. .27 Financial Reporting 27 Monitoring and Reporting Program Performance. 27 Reporting on Real Property .28 ii Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Records Retention and Access. 28 Remedies for Noncompliance . 28 Additional Specific Conditions and Corrective Action .28 Termination . 29 Notification of Termination Requirement .29 Opportunities to Object, Hearings, and Appeals 29 Effects of Suspension and Termination .30 Closeout. .30 Post-Closeout Adjustments and Continuing Responsibilities 30 Collection of Amounts Due. 31 Cost Principles 31 General Provisions 31 POLICY GUIDE 31 APPLICATION. 31 Basic Considerations . 31 COMPOSITION OF COSTS 31 FACTORS AFFECTING ALLOWABILITY OF COSTS 31 REASONABLE COSTS. 32 ALLOCABLE COSTS. 32 APPLICABLE CREDITS 32 PRIORI WRITTEN APPROVAL 33 LIMITATION ON ALLOWABILITY OF COSTS 33 SPECIAL CONSIDERATIONS 33 COLLECTION OF UNALLOWABLE COSTS 34 ADJUSTMENT OF PREVIOUSLY NEGOTIATED INDIRECT COST RATES CONTAINING UNALLOWABLE COSTS. 4 Classification of Costs 34 Direct Costs . .34 Indirect Costs . 35 Required Certifications . .37 CERTIFICATE OF COST ALLOCATION PLAN 37 CERTIFICATE OF INDIRECT COSTS. 37 General Provisions for Selected Items of Cost 38 CONSIDERATIONS FOR SELECTED ITEMS OF COST 38 SELECTED ITEMS OF COST .38 Audits . 38 Audit Requirements .38 AUDIT REQUIRED. 38 MAJOR PROGRAM DETERMINATION .39 FINANCIAL: AUDIT .40 PROGRAMISPECIFIC: AUDIT 40 COORDINATED: AUDIT 41 Texas Grant Management Standards Version 2.0 ii STATEWIDE PROCUREMENT DIVISION SUB-GRANTEES AND CONTRACTORS. 41 COMPLIANCE RESPONSIBILITY FOR CONTRACTORS. 42 Relation to Other Audit Requirements 42 Remedies for Audit Noncompliance .42 Auditees . 42 AUDITEE RESPONSIBILITIES 42 AUDITOR SELECTION. +Z FINANCIAL STATEMENTS. 42 AUDIT FINDINGS FOLLOW-UP 43 REPORT SUBMISSION TO: STATE. AGENCY. 44 Awarding State Agency Responsibilities. 44 Auditors . 44 AUDIT REPORTING FOR FINANCIAL AUDIT 44 AUDIT FINDINGS FOR FINANCIAL AUDIT 45 AUDIT DOCUMENTATION 46 CRITERIA FOR STATE PROGRAM RISK. 46 Management Decisions. 47 VERSION HISTORY 48 APPENDIX 1 = ACRONYMS AND ABBREVIATIONS 49 APPENDIX 2 - GLOSSARY . 51 APPENDIX 3 = ADDITIONAL RESOURCES. 59 APPENDIX 4 = TYPES OF RELATIONSHIPS IN FEDERAL GRANT AWARDS 61 APPENDIX 5 - TYPES OF RELATIONSHIPS IN STATE GRANT AWARDS. 63 APPENDIX 6 = UNIFORM ASSURANCES BY LOCAL GOVERNMENTS 65 APPENDIX 7 = SELECTED ITEMS OF COST SUPPLEMENT CHART. . 93 APPENDIX 8 = SAMPLE PERSONNEL ACTIVITY REPORT . .131 APPENDIX 9 = SAMPLE REQUEST FOR APPLICATION CHECKLIST . 133 iv Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION INTRODUCTION The Comptroller of Public Accounts Statewide Procurement Divi- and federal law as well as the best practices implemented by their sion (SPD) publishes the Texas Grant Management Standards agency. (TXGMS), developed under the authority of Chapter 783 of the TxGMS (version 2.0) applies to and contracts that begin on Texas Government Code, to promote the efficient use of public grants or after October 1, 2024. If a state agency adds funds to a grant funds in local government and in programs requiring cooperation that existed before September 1, 2025, TxGMS (version 2.0) will among local, state, and federal agencies. apply to it from that point forward, unless the state agency specifi- TxGMS, as required by Chapter 783 oft the Texas Government Code, cally indicates that TxGMS (version 2.0) will not apply. TxGMS may includes (1) uniform and concise language for any assurances that also be applied to grants and contracts by agreement between a local government is required to make to a state agency and (2) the parties. a compilation of standard financial management conditions that TxGMS superseded the State of Texas Uniform Grant Management comprise generally applicable policies and procedures for the Standards (UGMS) issued by the former Texas Procurement and accounting, reporting, and management of funds that state agen- Support Services (TPASS) division of the Comptroller. SPD is the cies require local governments to follow in the administration of successor to TPASS. Consequently, reference to TPASS in grants and contracts. 2 The term "assurance" refers to a statement any forms, templates, or other publications held by a state agency is of compliance with federal or state law that is required of a local now a reference to SPD. All published materials and informal guid- government as a condition for the receipt of grant or contract funds.3 ance issued by TPASS are no longer current, and state agencies are directed to update and, as applicable, replace the outdated TxGMS applies only to transactions subject to Chapter 783 of the materials with the current SPD documents. Texas Government Code. Accordingly, TxGMS is not an exhaustive In January 2021, TxGMS was first published as Version 1.0. Modi- compilation of every statute, rule, and policy that may pertain to fications made to these standards are described in the Version a particular grant. Although TxGMS provides Uniform Assurances History in each subsequent edition. A current version of TxGMS is and Standard Financial Management Conditions, TxGMS does not maintained by SPD and is available on the Comptroller's website. 4 provide step-by-step guidance to agencies for general grant man- agement. SPD will periodically review and update this publication. SPD may post ar notification on the Comptroller's Office website of occur- The term "grant program manager" as used in TxGMS refers to any rence (for example, change in law) that affects these standards any state agency personnel who are involved in the administra- prior to the formal update to TxGMS. Inquiries regarding TxGMS tion of grant programs. Grant program managers are expected should be directed to SPD via email at xgms@cpalexas.ov. to have a practical understanding of the fundamental aspects of grant management and be familiar with the associated terminol- ogy. Certain key concepts and policies for grants and contracts, therefore, are provided only for the limited purpose of facilitating the use of TxGMS. Legal citations are included throughout TXGMS to provide assistance to the reader. Also, a list of acronyms and abbreviations, a glossary of terms, and additional resources are orovided in Appendix 1 Appendix 2, and Appendix 3, respectively. TxGMS is not legal advice. Agencies are expected to be knowl- edgeable about legal requirements within their enabling statutes and any state or federal law associated with their operations. Grant program managers are advised to seek assistance from their agency legal counsel to ensure compliance with applicable state TEX. GOVT CODE SS 783.002, 783.004. The Comptroller's website is located at comptroleztexas.oy TEX. GOVT CODE SS 783.003, 783.005-006. TEX. GOVT CODE S 783.003. Texas Grant Management Standards - Version 2.0 1 STATEWIDE PROCUREMENT DIVISION BACKGROUND SCOPE The Uniform Grant and Contract Management Act was enacted in 1981 and codified in 1991 as Chapter 783 of the Texas Government Applicability to Certain Transactions Code. The Uniform Grant Management Standards (UGMS), first State agencies, unless specifically excluded by statute," are published by the Office of the Governor in June 1982, addressed required to use the Uniform Assurances and the Standard Finan- the U.S. Office of Management and Budget (OMB) Circulars A-102 cial Management Conditions, developed under Chapter 783 of the (Grants and Cooperative Agreements With State and Local Gov- Texas Government Code, in their grants and contracts with local ernments), A-87 (Cost Principles for State, Local and Indian Tribal governments. For purposes of Chapter 783 of the Texas Govern- Governments), and A-128 (Audits of State and Local Governments). ment Code, a' "state agency" is a state board, commission, depart- The UGMS were periodically modified over the years for consis- ment, or office having statewide jurisdiction, but does not include tency with various OMB circulars and conformance with state law a state college or university.? The term "local government" refers and practices. to a municipality, county, or other political subdivision of the state, The administration of the Uniform Grant and Contract Manage- but does not include a school district or other special-purpose ment Act transferred from the Office of the Governor to the Comp- district.8 troller in 2011. In 2014, the OMB streamlined the requirements of Chapter 783 oft the Texas Government Code, by its terms, does not eight circulars into one consolidated set of federal guidance titled apply to all grant programs. However, compliance with all or part "Uniform Administrative Requirements, Cost Principles and Audit of Chapter 783 of the Texas Government Code may be mandated Requirements for Federal Awards" commonly referred to as the by other state law. Chapter 2105 of the Texas Government Code, Uniform Guidance. For federal grant programs governed by 2 for instance, states that "Chapter 783 applies to agencies and pro- CFR Part 200, TxGMS incorporates the Uniform Guidance and the viders for the purpose of block grant administration. "9 implementing regulations of the Federal agencies. TXGMS (ver- sion 2.0) incorporates substantive changes to 2 CFR Part 200 that Care should be taken when construing a statute to determine the went into effect October 1, 2024. particular entities and types of transactions governed by Chapter 783 of the Texas Government Code because the defined terms of various statutes may not be consistent.0 By way of example, the definition for "agency" found in Chapter 2105 of the Texas Government Code is not the same as the "state agency" defini- Fore example, see Section 15.008 oft the Texas Water Code thatp provides: "Thel law regarding uniform grants and contract management, Chapter 783, Government Code, does not apply to a contract under Subchapter F, H, I, K or P, or to a contract relatingt to an economically distressed area or nonborder colonia under Subchapter C." Similarly, Section 231.002(c) ofti thel Texas Family Code provides: "The agreements or contracts between the [Title IV-D agencyl and other state agencies or political subdivisions oft this ora another state, includinga consortium of multiple states, and agreements or contracts with vendors for the delivery of program services arer not subject to Chapter 771 or 783, Government Code." TEX. GOVTCODE S 783.007(a). TEX. GOVT CODE S 783.003. TEX. GOVTO CODE S 783.003. TEX. GOVTCODE $2 2105.008. 10 Fore example, Section 32.045(c) of the Texas Health and Safety Code provides in pertinent part: "Ag grant awarded under this section is governed by Chapter 783, Government Code, andi rules adopted undert that chapter."S Some statutes, on the otherh hand, only applyt the cost provisions. Fori instance, Section 7.067(c) ofthe Texas Water Code requires that Money used fora administrative costs under this subsection must! be used in accordance with Chapter 783, Government Code." 2 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION tion from Chapter 783 of the Texas Government Code." Likewise, A determination as to whether TxGMS applies to a particular trans- a "provider" for administering state block grants'2 comprises a action involves the application of statutorily defined terms to pro- larger number of entities than the local governments identified in gram-specific facts. In the event of a conflict between TxGMS and Chapter 783 of the Texas Government Code.3 applicable federal or state law, federal law generally prevails over state law and state law prevails over TxGMS. To further consistency TxGMS, which includes the Uniform Assurances and the and accountability across federal and state grant programs, some Standard Financial Management Conditions, may not apply to state agencies may choose to apply TxGMS by rule or contract to every state agency grant program or public sector financial all entities that receive grant funds regardless of whether TxGMS assistance programs. TxGMS applies to state grants that are is mandated by statute. Consultation with agency legal counsel, made to local governments (per Government Code Chapter 783). therefore, is recommended when a state agency is determining The Comptroller does not publish guidelines for state grants to whether and to what extent the agency, grantees, subrecipients, other entities, such as non-profits and individuals. Many agencies and contractors are required to comply with TxGMS. choose to adopt TXGMS standards for other grant processes (for example, grants to non-profits), but these are administered Authorization of through grant agreements, not through a statutory requirement. Agency-Specific Consequently, unless state law-other than Chapter 783 of the Variation Texas Government Code--specifies compliance with Chapter 783 of the Texas Government Code, TxGMS does not apply to the A state agency subject to Chapter 783 of the Texas Government following types of financial assistance: Code is required to use the Uniform Assurances and the Standard Financial Management Conditions in its grants and contracts with cooperative agreements; local governments unless a federal statute or regulation or a state non-cash contributions or donations of property (including statute requires or specifically authorizes a variation.4 A state donated surplus property); agency may establish a variation from the Uniform Assurances direct appropriations; or Standard Financial Management Conditions set forth in TXGMS foodo commodities; only by rulei in accordance with Chapter 2001 of the Texas Govern- loans; ment Code.5 If a state agency desires to establish a variation to the Uniform Assurances and the Standard Financial Management loang guarantees; Conditions, the state agency must (1) state a reason for the varia- interests subsidies; or tion along with the proposed rule, and the reason. must be based insurance. on the applicable federal statute or regulation or state statute and (2) file a notice of each proposed rule that establishes a variation from Uniform Assurances or Standard Financial Management Con- ditions with SPD.6 1 Chapter 2105 of the Texas Government Code defines "agency" as the Health and Human Services Commission, the Department of State Health Services, the Texas Department of Housing and Community Affairs, the Texas Education Agency, the Department of Aging and Disability Services, and any other commission, board, department, or state agency designated to receive block grantfunds.1 TEX. GOVTCODES $2105.001. 12. The term "block grant" means a program resulting from the consolidation or transfer. of separate federal grant programs, including federal categorical programs, so that the state determines the amounts to be allocated or the method of allocating the amounts to various agencies or programs from the combined amounts, includinga a program consolidated ort transferred under the Omnibus Budget Reconciliation Act of 1981 (Pub. L. No. 97-35). TEX. GOVT CODE $2105.001. 13 A "provider" refers to any a public or private organization that receives block grant funds or may be eligiblet to receive block grant funds to provide services or benefits to the public, including a council of government, a community action agency, or a private new community developer or nonprofit community 14 association in a community originally established as a new community TEX. GOVTCODE S 783.007(a). development program. under the former Urban Growth and New Community 15 TEX. GOVTO CODE S 783.007(b). Development. Act of 1970 (42 U.S.C. Section 4511 et seq.). TEX. GOVTCODE S 16 TEX. GOVT CODE S 783.007(c)-(d). Submit a notice of each proposed rule to 2105.001. bgms@cpaleras.goV Texas Grant Management Standards = Version 2.0 - 3 STATEWIDE PROCUREMENT DIVISION Incorporation of Federal Uniform Guidance and Implementing Regulations For federal grant programs governed by 2 CFR Part 200, TxGMS incorporates the Uniform Guidance and the implementing regula- tions of the federal agencies that are effective on TxGMS publica- tion date. To ensure a seamless adoption of changes to federal law and regulation, TxGMS is automatically amended to include all modifications to the Uniform Guidance and any associated federal agency implementing regulations that occur: subsequent to TxGMS publication date. 4 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION KEY CONCEPTS - STATE AGENCY GRANTS state in exchange for the funds. 20 The term "grant" may also refer Grant-Making Authority to a legally enforceable document tied to such an expenditure. For Chapter 783 of the Texas Government Code regulates the inter- federal grant programs subject to the Uniform Guidance, a grant coordination contract agreement is a legal instrument of financial assistance petween a governmental of grant and management activities between certain state agencies and local governments. federal agency and a recipient or between a pass-through entity Chapter 783 does not authorize any state agency or local gov- and a subrecipient that is used to enter into a relationship, the ernment administer funds. principal purpose of which is to transfer anything of value to carry to accept or grant Accordingly, the authority for a particular state agency or unit of local government out a public purpose authorized by a law of the United States.2 21 to apply for, receive, administer, and make grants is found in law Grants may be awarded to fund a specific need or to further other than Chapter 783. policy by incentivizing specific programs. Grants may be awarded through non-competitive processes, where recipients demon- Appropriated Funds strate they meet the minimum qualifications to receive available funds, or through a competitive selection process where qualified A state agency grant program may be financed by more than one applicants are evaluated through a selection process to receive source, such as state money, federal money, gifts, and donations. grant awards. Agencies should review all legal requirements that Grant funds, depending on the particular grant program, may may apply to the selection of grantees. All grants are subject to be held within the State Treasury or outside the State Treasury. compliance reporting, which, under the terms of the grant award Iti is important to note that federal money deposited in the State closeout, may continue beyond the term of the grant. Treasury does not become "state funds" in the sense that state law and only state law thereafter governs its disposition." When The state agency or pass-through entity is responsible for mak- the General Appropriations Act (GAA) authorizes a state agency to ing case-by-case determinations to determine whether the entity accept federal funds, the funds are appropriated to the receiving receiving the state funds is a sub-grantee or a contractor.22 The agency and the agency may expend the funds for the purposes for distinguishing characteristics of the subrecipient and contrac- which federal grant, allocation, aid, payment, or reimbursement tor roles are. based on the substance of the relationship and not was made.18. the term used by the parties to describe their relationship. 23 It is imperative that the role of subrecipient and contractor be correctly determined for each transaction in order to ensure compliance Grants and Contracts with the laws and rules applicable to the relationship. Illustrations of the possible relationships resulting from federal grant awards In the administration of state and federal grant programs, the and state grant awards are provided, respectively, in Appendix 4 terms "grant" and "contract" are not synonymous. The decision and Appendix! 5. whether to use a grant agreement or a procurement contract to formalize the transaction between the state agency and the entity receiving the program funds depends on the nature of the parties' relationship. For purposes of TxGMS, the term "contract" refers to the legal 20 Miscellaneous Expenditures Grants and Honoraria policy located in eXpendit State Purchasel Policies sttus/Am:matmsc.tmnsurhaiamis. instrument by which a recipient or subrecipient conducts procure- Tastiorgatsase-gaNs ment transactions under a state or federal grant.9 Unless other- 21 See generally 2 CFR S 200.1. wise defined by applicable Texas law, the term "grant" refers to an 22 See generally the Reporting Requirements for the Annual Financial Reports expenditure of funds from the State Treasury to a person or entity of State Agencies and Universities related to State Pass-Throughs at https:!L fmx. .cpa. texas. AeeAtMaasaeASARSNEE that does not directly provide consideration or a benefit to the muDiaNEsaNatsNE 2 CFR S 200.331 (distinguishing subrecipient and contractor relationships). For federal grants, a Subrecipient Vs. Vendor Determination Checklist is available for state agencies on the 17 Tex. Att'y Gen. Op. No. S-100(1953). Comptroller's website at: hts/Amucmateasg/m.nd, 8 General Appropriations Act, House Bill 1, 88th R.S. atArticlel IX, Section 13.01. sams-atacemisast 9 Sees generally2 2 CFR S 200.1. 23 2CFRS200.331. Texas Grant Management Standards - Version 2.0 5 STATEWIDE PROCUREMENT DIVISION State Fiscal Management the contract requires the agency's payments under the con- tract to be applied directly toward eliminating the person's debt or delinquency, and Overview 2) the requirement described in paragraph (1) specifically One of the duties of the Comptroller is keeping the state's books. applies to any debt or delinquency, regardless of when it arises.28 The Fiscal Management Division acts as the state's chief accoun- tant. The Fiscal Management Division's general accounting duties Payments made through the Uniform Statewide Accounting Sys- include the maintenance of accounts to show the purposes for tem (USAS). are automatically checked for holds. However, for writ- which expenditures are made and the provision of proper account- ten contracts paid with funds outside the State Treasury, the state ing controls to protect state finances. In order for the Comptrol- agency must manually conduct the warrant hold status check. ler to issue a warrant or initiate an electronic funds transfer, the The Comptroller is authorized to offset state claim agency submitting the must properly audit the claim and payments against a person's state debt and issue a payment to the person for any verify the payment would serve a proper public purpose. The Fis- remaining amount. Disbursements of state grant funds are: subject cal Management Division conducts post-payment audits of agen- to warrant hold and may be used to offset state debt. cies' expenditures to ensure compliance with applicable laws, rules, and policies. Payments made in whole or in part with federal funds or required by federal law, on the other hand, are exempti from the state's war- Information regarding state expenditures is located on the Fiscal rant hold program.29 To prevent warrant offset, the paying state Management Division's website, FMX.24 FMX includes citations agency must release the warrants within 30 days of the payment to relevant statutes, administrative rules, judicial decisions, and date. For federal grant programs, the state agency issuing the attorney general opinions. Inquiries from state agencies regard- pay- ment should (1) review the TINS 6204 Report (Held Warrant Report ing expenditure matters may be directed to the Expenditure for Issuing Agency) every day to identify any warrants that are Assistance Section within the Fiscal Management Division at on hold and issued with. federal funds and (2) promptly complete ependitureassistance@cpatexasov. or 512-475-0966. the "Warrant Release or Reinstatement Request Form" for each held warrant that includes federal funds. The Assistance Listings Certain Fiscal Policies Number (ALN) or appropriate federal statutory reference must be provided on the warrant release form.30 Withholding and Offset The Comptroller is generally prohibited from issuing payment to Use of State Money or Property for Private a person who has been properly reported to the Comptroller as Purposes being indebted to the state or having a tax delinquency. State The Texas Constitution generally prohibits giving away state agencies must verify a person's hold status for (1) payments made money or property or using state resources for private with local outside purposes." funds (funds held the State Treasury and (2) pay- An expenditure of public funds for a legitimate public purpose to ment card purchases over $500.25 obtain a clear public benefit, however, is not a prohibited grant of Verification of warrant hold status within seven days of contract publici funds, 32 as long as there are: sufficient controls on the trans- execution is not required if a contract will be paid using funds held in the Treasury. 26 State agencies must not proceed with purchases 28 TEX. GOVTCODE S: 2252.903(b). made with local funds or payment card purchases over $500 until 29 TEX. GOVT CODE S 403.055(1). the warrant hold has been released, unless:27 30 Releasing Held Warrants Federal Funds policy located in the TexPayment Resource Guide at htpsy/Imucmateasaulim/nutsmmemtwar. hold/ ndsatohvmhaaha-acea 31 Tex. Const. art. Ill, S 51 ("Legislature shall have no power to make any grant or 24 The Comptroller's FMX website is located at! https://fmx. cpa.t texas. gov/fmx. authorizet ther making ofa any grant ofp public moneys to anyi individual, association 25 Restricted Expenditures Persons Indebted to State policy located in eXpendit ofi individuals, municipal or other corporations whatsoever.");T Tex. Const. art. Il, State Purchase Policies posted at https://fmx.cpa texas.v/fm/pubs/ S5 52( ("Legislature: shall have no power to authorize any county, city, town or other urchassucadfastu-netasdouEraN. indebted. political corporation or subdivision ofthe Statet tol lendi its credit ort to grantp public 26 TEX. GOVTC CODE $2 2252.903(a). money or thingo ofv valuei in aid of, or to any individual, association or corporation 27 Restricted! Expenditures Persons Indebted to State policy located in eXpendit whatsoever."); and Tex. Const. art. XVI, S 6 ("No appropriation for private or State Purchase Policies posted at wAmmimsdlini. individual purposes shall ber made, unless authorized byt this Constitution."). purchasaimststeadmdean. 32 See Edgewood Indep. Sch. Dist. V. Meno, 917S.W.2d: 717, 740(Tex. 1995). 6 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION action to ensure that the public purpose is carried out.3 State law Statewide Single Audit also prohibits the misuse of governmental resources. 34 Examples Each year, the State Auditor's Office conducts a Statewide Single of misuse of state money or property includet the payment of gratu- Audit for the State of Texas. The Statewide Single Audit both sup- ities and making purchases without statutory authority,5 ports the Annual Comprehensive Financial Report (ACFR) provided to the Governor and constitutes an organization-wide audit of the Distribution of Grant Funds state for purposes of the Uniform Guidance.39 Distributions of state and federal grant funds must comply with For the federal compliance portion of the Statewide Single Audit, applicable laws and rules, including applicable fiscal policies. the State Auditor's Office audits the Schedule of Expenditures of State agencies are responsible for ensuring that expenditures are Federal Awards (SEFA) in relation to the ACFR. The SEFA captures not made for unauthorized purposes. Information regarding per- federal funds expended by state agencies. Each state agency that mitted and prohibited expenditures is located on the Comptroller's makes federal expenditures during the fiscal year is required to Fiscal Management Division website (FMX). submit its federal expenditures in the SEFA web application. 40 The A disbursement of grant funds occurs either as a reimbursement Comptroller prepares the SEFA by using the self-reported SEFA or an advance. Under the reimbursement method, the grantee is data. In addition, grant money passed between state agencies repaid for money actually spent on allowable expenses. In con- must be reported on the State Grant Pass-Through Schedule using trast, the advance method off funding provides that grant funds are the State Pass-Through Reporting (SPTR) web application. State disbursed in advance of the grantee incurring expenses. A state agencies receiving federal awards from non-state agencies may agency must distribute appropriated grant money on a reimburse- have additional obligations under the Uniform Guidance.4 ment or an as-needed basis unless: Statewide Cost Allocation Plan otherwise provided by statute, or the agency determines another distribution method is neces- Certain state agencies provide accounting, computing, payroll and saryf for the purposes of the grant.? 36 other statewide support services as centralized service costs. To ensure that the costs incurred for these central governmental ser- For federal grant programs, state law may not apply to a particular vices are accounted for appropriately, the Office of the Governor expenditure to the extent necessary to avoid conflict with an appli- prepares a Statewide Cost Allocation Plan (SWCAP) each year that cable federal law or regulation.7 In the event an expenditure is not explicitly addressed by state law, rule, or fiscal policy, the state identifies the costs of providing statewide support services agency's expenditure must comply with Governmental Accounting to each state agency; Standard Board (GASB) standards.38 (2) allocates to each state agency an appropriate portion of the total costs of statewide support services; identifies, to the extent possible, the amount of federally 33 Tex.A Att'yGen. Op. No.J J-0484 (2002). reimbursable indirect costs in each allocated portion; and 34 TEX. PENAL CODE $3 39.02(a)(2). 5 (4) develops and a procedure that ensures - Restricted Expenditures Misuse of State Money or Property policy located in prescribes billing the eXpendit State Purchase Policies at Amams.Nni, each state agency is billed for all costs allocated to the purchase/estced/mde.n aCsseasiNcEeNz misuse. agency for which the agency is not obligated to pay another Miscellaneous Expenditures Grants and Honoraria policy located in state agency under other law.2 eXpendit State Purchase Policies posted at Mts/Am.malescaum abnundasmisasor-atsapsesans See generally 2 CFR S5 200.305(b), 200.208(b)(1) for circumstances where advance payment is the defaultp payment method for federal grant programs. 37 Seel TEX. GOVTCODE! S 660.0030Atravel expense may bep paid or reimbursed according to the requirements of an applicable federal law or regulation, and this chapter does not apply to the extent necessary to avoid conflict with an 39 applicable federal law orr regulation."). TEX.G GOVTCODE S 403.013(c); 2 CFR Part2 200, SubpartF. 8 Texas law requires compliance with GASB Standards. TEX. GOVT CODE SS See generally Reporting Requirements fort the Annual Financial Reports of State 321.013(b), 403.013(c). Texas also follows the requirements and guidelines Agencies and Universities related to Federal Pass-Throughs at https://fmx. provided in GASB pronouncements (statements, interpretations; technical ManNdsNNsahasNs bulletins and concepts statements). See the Reporting Requirements for tmoughoage-nas-touh the Annual Financial Reports of State Agencies and Universities related to 41 See Single Audit Report Package at https://fmx.cpa.t tesas.gov/fm/irpt Governmental, Accounting Standards Board at tus/Aimsateasgu.im, singleaudit/. atuahNmasiacaNssaNisNEaN 42 TEX. GOVTCODE $2106.002. Texas Grant Management Standards - Version 2.0 7 STATEWIDE PROCUREMENT DIVISION The Comptroller bills each agency for the allocated portion of Transparency and statewide Accountability costs based on the SWCAP. The SWCAP is also used to obtain reimbursement from the federal government for allowable costs incurred by central service agencies for services allocable to Grant Opportunity Announcements federal programs. 43 Agency Website State Ethics Laws Iti is customary for a state agency to announce grant opportunities As state officer4 or state employee45s may not have a direct or indi- on its public website. As state agencyso that awards a state grant in rect interest, including financial and other interests, or engage in an amount greater than $25,000 from funds appropriated through a business transaction or professional activity, or incur an obliga- the General Appropriations Act must publish the purpose for which tion of any nature that is in substantial conflict with the proper the grant was awarded on its public website. 51 In addition, the discharge of the officer or employee's duties in the public inter- state agency must provide its webpage link to the Comptroller SO est. 46 By statute, state officers and employees must comply with that a master list of grant information webpages may be posted on certain ethical responsibilities and disclosure obligations. 47 The the Comptroller's website.52 consequences for noncompliance may include a void contract,* 48 personal liability for ultra vires acts, or a criminal penalty.9 For Grant Opportunities on the Electronic State specific information regarding the professional standards appli- Business Daily (ESBD) and eGrants cable to a particular agency or a position within an agency, state SPD encourages state agencies to post grant opportunities on the employees or officers may consult with their agency legal counsel. Electronic State Business Daily (ESBD) in the Grant Opportunities section.53 Beginning fall 2024, the ESBD replaces the Texas.gov eGrants website as the centralized statewide location for grant opportunities offered by state agencies. ESBD users can search for, view details of, and find links and contact information for grant opportunities posted by state agencies. The Department of Information Resources (DIR) will suspend new postings in the eGrants portal; state agencies that have current or recent post- ings in eGrants should ensure all postings required for contract file documentation have been recorded pending retirement of the eGrants portal.54 50 Fort the purpose of Section 403.0245, relating to the availability on the internet 43 tos/Imsmatmassau.imukssaA02 002.php ofc certaini information on state grants, 'state agency" means: A" "state officer" is an elected officer, an appointed officer, a salaried appointed officer, an appointed officer of a majors state agency, ort the executive head of a (1) any department, commission, board, office, or other agencyi int thee executive state agency. TEX. GOVT CODE $572.002(12). or legislative branch of state government created by the constitution or a statute oft this state; A"statee employee"i isani individual, otherthana as state officer, whoi is employed by Texas 4) the Supreme Court of Texas, the Court of Criminal Appeals of1 Texas, a court as state agency, Texas appellate courts ort the Judicial Council, eitherh house ofa appeals, thel Texas Civil Judicial Council, the Office of CourtA Administration oft the Texas legislature or al legislative agency, council, or committee, including oft the Texas Judicial System, the State Bar of Texas, or another state judicial the Legislative Budget Board, Texas Legislative Council, State Auditor's Office, and Legislative Reference Library. TEX. GOVTCODE $572.002(11). agency created by the constitution or a: statute of this state; (3) au university systemo ora an institution ofhighere education as defined by Section TEXGOVT CODE S 572.001(a). 61.003, Education or 7 Code;o Eg, TEX GOVT CODE S 572.051 (Standards of Conduct); TEX. PENAL CODE S (4) another governmental organization that the comptroller determines to be a 36.02 (Bribery); TEX. PENAL CODE S 36.08 (Gift to Public Servant by Person component unit ofstate governmentf forp purposes offinancialr reportingunder Subject to His Jurisdiction); TEX. PENAL CODE S 39.06 (Misuse of Official the provisions oft this section. Information). TEX. GOVTCODE SS 403.0245(a), 403.013(a). If an officer of a governmental body has a direct or indirect pecuniary interest in a grant before the body, the contract is void. Tex. Att'y Gen. Op. No.. JC-0484 1 TEX. GOVT CODE S 403.0245(b). See also Fiscal Policy and Procedure No. FPP (2002). S.010 (Requirement to Publish Purpose of State Grants) at https://fmx.cpa. A public servant faces criminal liability if, with intent to obtain a benefit or with texas.ov/fm/grants/ intent to harm or defraud another, the personi intentionally or knowinglyr misuses 52 The Comptroller'sStatel GrantListingis! locateda at! mtps/comeolsieasew. anything of value belongingt to the government that has come into the person's amsass.mamesamtsaNe custody or possession! byy virtued ofthe person'soffice ore employment. TEX. PENAL 53 TEX. GOVT CODE S2 2155.083. CODE S 39.02(a)(2). TEX. GOVT CODE s: 2055.202. 8 Texas Grant Management Standards = Version 2.0 STATEWIDE PROCUREMENT DIVISION Grantee Selection agency purchases funded by grants. SPD has published the State of Texas Procurement and Contract Management Guide59 as an The Legislature intends for state agencies to exercise their legal aid to procurement professionals in the execution of their duties. authority in a fiscally responsible manner.55 State agencies are therefore responsible for ensuring the transparency, objectivity, and integrity of the grantee selection process. Written procedures Reporting Requirements should address the evaluation of applications and the award of State agency grant agreements may! be subject to variousreporting grants as well as any conflict of interest disclosure requirements requirements depending on the transaction value and source of applicable to the individuals involved in the grant award process. funds. For example, grant agreements with a value greater than Adequate documentation should also be retained by the state $50,000 must be reported to the Legislative Budget Board (LBB) agency to support the evaluation scores, including justifications Contracts Database. 60 There are also notification requirements for any deviations tot the established application scoring methodol- for certain federally funded programs. 61 Grant program managers ogy. In addition, agencies should mplement internal controls suf- are encouraged to consult with agency legal counsel to ensure ficient to ensure that all grant evaluation and award procedures compliance with applicable reporting requirements. are consistently followed. Intergovernmenta) Coordination State Agency Procurement The Office of State-Federal Relations acts as a liaison between State agency procurements financed by grant funds must comply Texas and the federal government. The duties of this state agency, with applicable state purchasing laws6 as well as the grant agree- administratively attached to the Governor's Office, include ment. SPD and DIR each operate statewide centralized purchas- and the state's to helping to coordinate state and federal programs dealing ing programs leverage buying power provide with the same subject; cost-effective products and services. State agencies must use SPD and DIR designated procurement methods unless the purchase informing the Governor and the Legislature of federal pro- grams that may be carried out in the state or that affect state falls within a statutory exclusion or exemption. For state agencies programs; subject to SPD's procurement authority, state agency purchases providing federal agencies and the United States Congress made from grant funds must comply with SPD rules unless the with information about state policy and state conditions on purchase is made in support of research.57 Procurements of goods federal matters that concern the government; or services that are not made under SPD's purchasing authority 58 responding to requests for information from the Legislature, may be subject to Chapter 2261 of the Texas Government Code. the United States Congress, and federal agencies; and ESBD posting requirements, Contract Advisory Team (CAT) coordinating with the Legislative Budget Board regarding the reviews, Quality Assurance Team (QAT) reviews, and Legislative effects of federal funding on the state budget. 62 Budget Board (LBB) contracts database reporting may apply to To assist in a coordinated communication of the State's interests, 55 General Provisions - Responsibilities of State Agencies, Fiscal Responsibility of an agency or political subdivision of the state must report to Payments Policy located in eXpendit State Purchase Policies at https://fmx.cpa. the Office of State-Federal Relations any contract between the leaseu/m.mubsurhasA sem/mdesptolsestion-esgonsbiiesosce agency or subdivision and a federal-level government relations iscalresponsibility. See also TEX. GOVT CODE SS 321.013(f), 321.0133 (SAO mayo conduct economy and efficiencya auditt to determine whether state agencyi is consultant.63 managingo or utilizingr resourcesi in economical and efficientr manner); TEX. GOVT CODE S 321.022(a) (administrativel head ofs state agencys shall reportreasonable The Governor, as the chief planning officer of the State, has estab- cause tot believe that money was lost, misappropriated, or misused to SAO). lished a Division and 64 56 of Budget Policy. Among other responsibili- See generally Title 10, Subtitle D of the Texas Govemment Code for the State Purchasing and General Services Act; 2 CFR S 200.317 (state agency ties, this division serves as the clearinghouse for all state agency procurementt transactions for federal grant programs must follow same policies and procedures usedf for procurement from non-federal funds). The Texas Procurement and Contract Management Guide is published on the 7 TEX. GOVT CODE S 2155.140 ("The commission's authority does not apply to Comptroller's website at ComptolleTerasGoy ap purchase of goods or services from a gift or grant, including an industrial or General Appropriations Act, House Bill 1, 88th R.S. at Article IX, Section 7.04. federal grant or contracti in support of research."). 58 TEX.G GOVTCODE: S 2261.001(a) ("This chapter, othert than SubchapterF, applies General Appropriations Act, House Bill 1,8 88th R.S. atArticle IX, Section 13.02. only to each procurement of goods or services made by a state agency thati is TEX. GOVT CODE SS 751.002, 751.005. neither made byt the comptroller nor made under purchasing authority delegated 03 TEX. GOVT CODE S 751.016. to the agency by or under Section 51.9335 or 73.115, Education Code, or 64 Office of the Governor, Division of Budget and Policy website is located at Section 2155.131 or2155.132."). EImABapaNNSSN Texas Grant Management Standards - Version 2.0 9 STATEWIDE PROCUREMENT DIVISION applications for federal grant or loan assistance. 65 A state agency encouraging non-federal entities to have family-friendly is required to notify the Division of Budget and Policy of each policies; application for federal grant or loan assistance before the agency strengthening oversight; and submits the application. 66 targeting audit requirements on risk of waste, fraud, and abuse.0 The Governor may also provide planning assistance to political subdivisions. At the request of the governing body of a political Although the Uniform Guidance is intended to be the government- subdivision or the authorized agency of a group of political subdi- wide framework for federal grants management," some federal visions, the Governor may (1) arrange planning assistance, includ- programs mayl have exemptions or requirements in addition to the ing surveys, community renewal plans, technical services, and Uniform Guidance.? 72 Grant program managers, therefore, must not other planning and (2) arrange for a study or report on a planning only be familiar with the Uniform Guidance but also the associ- problem submitted to the Governor.67 In addition, the Governor, or ated federal agency implementing regulations set forth in Subtitle a state agency designated by the Governor, may provide techni- B of Title 2 of the Code of Federal Regulations, the federal pro- cal assistance and coordinate the actions of a local government gram legislation and associated regulations, any federal agency participating in a federal assistance program. 68 The governing issued information bulletins and policy statements regarding the body of a local government by order or resolution may request program, any applicable state law and policies, and the terms an that the Governor, or the designated state agency, act on behalf of conditions of the federal award. the local government in any matter relating to a request for federal financial assistance or an agreement, assurance of compliance, requirement, or enforcement action relating to the request. 69 Federal Uniform Guidance The U.S. Office of Management and Budget (OMB) guidance titled "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards," commonly referred to as the Uniform Guidance, is located in Subtitle A of Title 2 of the Code of Federal Regulations. The policy reforms in the Uniform Guidance include eliminating duplicative and conflicting guidance; focusing on performance over compliance for accountability; encouraging efficient use of information technology and shared services; providing for consistent and transparent treatment of costs; limiting allowable costs to make the best use of federal resources; setting standard business processes using data definitions; 65 TEX. GOVTCODE S 772.009(a). 6 TEX. GOVTCODE S 772.005. TEX. GOVTO CODE S 772.008(a). 70 Uniform Guidance (Final Guidance) 78 Fed. Reg. 248, 78591-78593 (2013). TEX.G GOVTCODE SS 742.001, 742.003(a). 71 Uniform Guidance (Final Guidance), 78 Fed. Reg. 248, 78590 (2013). TEX. GOVT CODE S 742.004(a). 72 See 2 CFR S: 200.101. 10 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION UNIFORM ASSURANCES STANDARD FINANCIAL TXGMS, as required by Chapter 783 of the Texas Government MANAGEMENT CONDITIONS Code, includes uniform and concise language for any assurances that a local government is required to make to a state agency.?3 Overview The term "assurance" refers to a statement of compliance with federal or state law that is required of a local government as a TxGMS, as required by Chapter 783 of the Texas Government condition for the receipt of grant or contract funds.74 A list of the Code, includes a compilation of Standard Financial Management Uniform Assurances to be made by local governments to state Conditions.5 The term "financial management conditions" refers agencies is provided in Appendix 6. to generally applicable policies and procedures for the account- ing, reporting, and management of funds that state agencies Because the Uniform Assurances are meant to be of general appli- require local governments to follow in the administration of grants cability to units of local government, the Uniform Assurances do and contracts. 76 not include certifications based on the following: federal or state program legislation, program-specific requirements contained The financial management conditions vary depending on the fund- in the federal or state award, or specific conditions tailored to a ing source and type of transaction. Therefore, in accordance with particular subrecipient. Accordingly, state agencies may include Section 783.006(d) of the Texas Government Code," the Standard certifications in their grant agreements and procurement contracts Financial Management Conditions are categorized according to with local governments that are in addition to the Uniform Assur- federal grant programs and state grant programs. ances to ensure compliance with applicable law or rule. Failure to follow a state or federal law applicable to the disburse- ment of grant funds may: subject the local government to statutory, common law, and contractual remedies that may include admin- istrative action, suspension of grant payments, termination, and ineligibility for future grants. Federal Grant Programs For federally funded grant programs administered by the state, a local government subrecipient must comply with the Standard Financial Management Conditions that comprise the following: the federal program legislation as well as any associated regulations and program-specific policy statements issued by the federal agency; the Uniform Guidance and any applicable federal agency regulations located in Subtitle B of Title 2 of the Code of Fed- eral Regulations; as permitted by the Uniform Guidance, a state agency's sub- award may include additional specific award conditions,? 78 : and 75 TEX. GOVTO CODE S 783.006. 76 TEX. GOVTO CODE S 783.003. 73 TEX. GOVTCODE S 783.005(a). 77 TEX.G GOVTCODE S 783.006(d). 74 TEX. GOVTCODE S 783.003. 78 2 CFR $2 200.207. Texas Grant Management Standards - Version 2.0 11 STATEWIDE PROCUREMENT DIVISION requirements the state agency imposes on the subrecipient gram specific requirements, relevant public policy requirements, for the state agency to meet its responsibilities under the including General Appropriations Act provisions, and specific federal award?9 (for example, the applicable terms and condi- conditions tailored to the local government. tions oft the federal agency's award). In addition, state agencies must comply with applicable state Standards for Financial and Program law and fiscal policyi in the administration off federal grant pro- Management grams (for example, Chapter 783 of the Texas Government Code). Statutory and Policy Requirements State Grant Programs The local government ist responsible for complying with all require- ments oft the: state award. The local government must manage. and administer the state award in a manner to ensure that funding Overview provided through the state award is expended and associated For grant programs wholly funded by the State, a local govern- programs are implemented in full accordance with state law and ment grantee under a grant from a state agency must comply with public policy requirements. the following Standard Financial Management Conditions: Grant Award to Local Government; Performance Measurement Standards for Financial and Program Management; As required by the performance goals, indicators, and milestones Grantee Subawards and Contracts; in the state award, the local government must relate financial Property Standards; data to performance accomplishments of the state award. When applicable, the local government must also provide cost informa- Performance and Financial Monitoring and Reporting; tion such as unit cost data to demonstrate cost effectiveness. The Records Retention and Access; local government's performance should be measured in a way that Remedies for Noncompliance; will help the state agency to improve program outcomes, share Closeout; lessons learned, and spread the adoption of promising practices. Post-Closeout Adjustments and Continuing Responsibilities; When establishing performance reporting frequency and content, Collection of Amounts Due; the state agency should consider what information will be nec- CostF Principles; and essary to measure the grantee's progress, to identify promising practices of grantees, and to build the evidence upon which the Audits. state agency makes program and performance decisions. The Grant program managers should not presume that the laws and state agency should not require additional information that is not policies applicable tof federal grant programs apply tos state-funded necessary for measuring program performance and evaluation. grant programs. To assist grant program managers in identifying similarities and differences between the administration of state Financial Management and federal grant programs, the Standard Financial Management Conditions for state grant programs generally follow the organiza- Each local government must expend and account for the state tional structure of the Uniform Guidance. In addition, a Selected award in accordance with applicable laws for expending and Items of Cost Supplement Chart is provided in Appendix7. accounting for the local government's funds. All local government financial management systems, including records documenting compliance with applicable statutes, regulations, and the terms Grant Award to Local Government and conditions of the state award, must be sufficient to permit the The local government must enter into a written grant agreement preparation of reports required by the terms and conditions, and with the state agency grantor. The terms and conditions of the tracking expenditures adequate to establish that funds have been state agency grant agreement with the local government must used in accordance with the applicable laws, rules, and terms and address, as applicable, the following: Uniform Assurances, Stan- conditions of the state award. dard Financial Management Conditions, program legislation, pro- The local government's financial management system must pro- 79 2CFR S2 200.332(a)(3). vide for the following: 12 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Identification of all state awards received and expended and (5) take reasonable cybersecurity and other measures to the state programs under which they were received. State safeguard information including protected personally iden- program and state award identification must include, as tifiable information (PII) and other types of information. This applicable, the state award identification number, year the also includes information the state agency designates as state award was issued, and name of the state agency or sensitive or the local government considers sensitive and pass-through entity. is consistent with applicable federal, state, and local laws (2) Accurate, current, and complete disclosure of the financial regarding privacy and obligations of confidentiality. results of each state award or program in accordance with the reporting requirements in the Financial Reporting and Bonds and Insurance Monitoring and Reporting Program Performance sections. Where the state government guarantees or insures the When a state agency or pass-through entity requires report- repayment of money borrowed by the local government, the ing on an accrual basis from a local government that main- state agency may require adequate bonding andi insurance if tains its records other than on an accrual basis, the local the bonding and insurance requirements of the local govern- government must not be required to establish an accrual ment are not deemed adequate to protect the interest of the accounting system. This local government may develop state government. accrual data for its reports based on an analysis of the docu- mentation on hand. (2) The state agency may require adequate fidelity bond cover- age where the local government lacks coverage to protect (3) Maintaining records that sufficiently identify the amount, the interest of the state government. source, and expenditure of state funds for state awards. These records must contain information necessarytoidentily (3) Where bonds, insurance, or both are required in the situ- ations described in this section, the bonds and insurance state awards, authorizations, obligations, unobligated bal- must be obtained from companies licensed in Texas with an ances, as well as assets, expenditures, income, and interest. All records must be supported by source documentation. "A-" rating or better from A.M. Best Company holding certifi- cates of authority. (4) Effective control over, and accountability for, all funds, prop- erty, and assets. The local government must safeguard all Payment assets and ensure they are used solely for authorized pur- poses. A state agency must distribute grant money on a reimbursement (5) Comparison of expenditures with budget amounts for each or an as-needed basis unless (1) otherwise provided by statute or state award. (2) the agency determines another distribution method is neces- (6) Written procedures to implement the requirements of the sary for the purposes of the grant. Payment section. If payments are made in advance, payment methods utilized by Written procedures for determining the allowability of costs the state agency must minimize the time elapsing between the in accordance with the Cost Principles section and the terms transfer of funds from the state agency and the disbursement of and conditions of the state award. funds by the local government whether the payment is made by electronic funds transfer or by other means. Internal Controls The local government be paid in advance, provided it The local government must may maintains or demonstrates the willingness to maintain both establish, document, and maintain effective internal control written procedures that minimize the time elapsing between over the state award that provides reasonable assurance the transfer of funds and disbursement by the local govern- that the local government is managing the state award in ment, and financial management systems that meet the compliance with statutes, rules, and the terms and condi- standards for fund control and accountability as established tions of the state award; in TxGMS. Advance payments to a local government must be limited to the minimum amounts needed and be timed with 4) comply with statutes, rules, and the terms and conditions of actual, immediate cash requirements of the local govern- the: state award; ment in carrying out the purpose of the approved program 3) evaluate and monitor the local government's compliance or project. The timing and amount of advance payments with statutes, rules, and the terms and conditions of state must be as close as is administratively feasible to the actual awards; disbursements by the local government for direct program (4) take prompt action when instances of noncompliance are or project costs and the proportionate share of any allow- identified; and able indirect costs. The local government must make timely Texas Grant Management Standards - Version 2.0 13 STATEWIDE PROCUREMENT DIVISION payments to contractors in accordance with the contract The local government has failed to comply with the provisions. terms and conditions of the state award. (2) Whenever possible, advance payment requests by the local () The local government is delinquent in a debt to the government must be consolidated to cover anticipated cash state. needs for all state awards received by the recipient from the (7) Ap payment withheld for failure to comply with the terms and awarding state agency or pass-through entity. conditions of the state award must be released to the local Advance payment mechanisms must comply with government upon subsequent compliance. When a state applicable state law and fiscal policy and include, award is suspended, payment adjustments must be made in but are not limited to, warrants and electronic funds accordance with the requirements of the Effects of Suspen- transfers. sion and Termination section. () Unless state law provides otherwise, requests by (8) A payment must not be made to a local government for local governments for advance payments and reim- amounts that the local government withholds from contrac- bursements may be submitted monthly or, if autho- tors to ensure: satisfactory completion ofv work. Payment must rized by the state agency, on a more frequent basis. be made when the local government disburses the withheld (3) When the reimbursement method is used, the state agency funds to the contractors or to escrow accounts established or pass-through entity must make payment within 30 calen- to ensure satisfactory completion of work. dar days after receipt of a complete and correct request for (9) The use of banks and other institutions as depositories of payment. A state agency shall notify the local government advance payments under state awards must comply with the of an error in a request for payment, including incomplete standards prescribed by applicable law. supporting documentation, not later than the 21st day after (10) The determination as to whether the local government must the date the invoice is received. maintain advance payments of state awards inj interest-bear- (4) If the local government cannot meet the criteria for advance ing accounts must comply with the standards prescribed by payments and the state agency has determined that reim- applicable law. bursement is not feasible because the local government (11) The determination as to whether the local government may lacks sufficient working capital, the state agency may retain interest earned on advance payment amounts and provide cash on a working capital advance basis if the whether the retained interest is subject to any restrictions procedure is authorized by state law. Under this procedure, (for example, monetary cap, expenditure limitation, annual the state agency must advance cash payments to the local remittance) must comply with the standards prescribed by government to cover its estimated disbursement needs for applicable law. an initial period generally aligned to the local government's disbursing cycle. After that, the state agency must reimburse Cost Sharing the local government for its actual cash disbursements. Use of the working capital advance method. of payment requires Unless otherwise provided in state law, voluntary committed cost that the pass-through entity provide timely advance pay- sharing is not expected under state research grants. The state ments to anysub-grantees in order to meett the sub-grantee's agency may not use voluntary committed cost sharing as a fac- actual cash disbursements. The pass-through entity must not review tor during the merit of applications or proposals for state use the working capital advance method of payment if the research grants unless authorized by state: statutes or state agency reason for using this method is the unwilingness or inability of the pass-through entity to provide timely advance pay- regulations and specified in the notice of funding opportunity. ments to the sub-grantee to meet the sub-grantee's actual State agencies are also discouraged from using voluntary commit- cash disbursements. ted cost sharing as a factor during the merit review of applications (5) If available, the local government must disburse funds for other state assistance programs. If voluntary committed cost available from program income (including repayments to sharing is used for this purpose for other programs, the notice of a revolving fund), rebates, refunds, contract settlements, funding opportunity must specify how an applicant's proposed audit recoveries, and interest earned on: state funds before cost sharing will be considered. requesting additional cash payments. For all state awards, the state agency or pass-through entity must (6) Payment for allowable costs must not be withheld at any time during the period of performance unless required by accept any cost sharing funds (including cash and third-party in- the specific conditions of the award, remedies for noncom- kind contributions, and also including funds committed by the pliance, or in one or more of the following instances: 14 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION local government, sub-grantee, or third parties) as part of the local sistent with those paid for similar work in the labor market where government's contributions to a program when the funds the local government competes for the services involved. In either case, fringe benefits that are allowable, allocable, and reasonable are verifiable in the local government's records; may be included in the valuation. are not included as contributions for any other state award; and reasonable When a third-party organization furnishes the services of an (3) are necessary for achieving the objectives of the: state award; employee, these services must be valued at the employee's regu- lar rate of pay plus an amount of fringe benefits that is reasonable, (4) are allowable under the Cost Principles section; necessary, allocable, and otherwise allowable, and indirect costs (5) are not paid by the state government under another state at the third-party organization's approved negotiated indirect award, except where the program's state authorizing stat- cost rate, or a rate in accordance with the Indirect Costs section ute specifically provides that state funds made available for provided these services employ the same skills for which the the program can be applied to cost sharing requirements of other state programs; employee is normally paid. Where donated services are treated as indirect costs, indirect cost rates will separate the value of the 6) are provided for in the approved budget when required by the state and donated services SO that reimbursement for the donated services agency; will not be made. conform to other applicable provisions of TxGMS. Unrecovered indirect costs, including indirect costs on cost shar- Donated property from third parties may include items such as ing, may be included as part of cost sharing with the prior approval equipment, office supplies, laboratory supplies, or workshop of the state agency or pass-through entity. Unrecovered indirect and classroom supplies. The assessed value of donated property cost means the difference between the amount charged to the included as cost sharing must not exceed the property's fair mar- state award and the amount that could have been charged to the ket value at the time of the donation. state award under the local government's approved negotiated The method used for determining the value of donated equipment, indirect cost rate. buildings, and land for which title passes to the local government Values for local government contributions of services and prop- may differ according to the following: erty must be established in accordance with the Cost Principles (1) Ifthep purpose of the state award ist to assist the local govern- section. When a state agency or pass-through entity authorizes ment in acquiring equipment, buildings, or land, the aggre- the local government to donate buildings or land for construction gate value of the donated property may be claimed as cost projects, facilities acquisition projects, or long-term use, the value sharing. of the donated property for cost sharing must be the lesser of (2) Ift the purpose of the state award is to support activities that paragraphs (1) or (2): require the use of equipment, buildings, or land, only depre- ciation charges for equipment and buildings may be made. The value of the remaining life of the property recorded in the local government's accounting records at the time of However, the fair market value of equipment or other capital donation. assets and fair rental charges for land may be allowed if provided The current fair market value. in the terms and conditions of the state award. However, when there is sufficient justification, the state agency or The value of donated property must be determined in accordance pass-through may approve using the current fair market value of with the accounting policies of the local government with the fol- the donated property, even if it exceeds the value described in (1) lowing qualifications: above at the time of donation. The value of donated land and buildings must not exceed Volunteer services furnished by third-party professional and tech- its fair market value at the time of donation to the local nical personnel, consultants, and others may be counted as cost government as established by an independent appraiser (for sharing if the service is necessaryf for the program. Rates for third- example, certified real property appraiser) and certified by a responsible official of the local government. party volunteer services must be consistent with those paid for similar work by the local government. When the required skills are (2) The value of donated equipment must not exceed the fair not found in the local government's workforce, rates must be con- market value at the time of donation. Texas Grant Management Standards - Version 2.0 15 STATEWIDE PROCUREMENT DIVISION (3) The value of donated space must not exceed the fair rental The local government is required to report deviations from the value of comparable space as established by an indepen- approved budget, project or program scope, or objective, and dent appraisal of comparable space and facilities in a pri- request prior approval from the state agency for budget and pro- vately owned building in the same locality. gram plan revisions, in accordance with this section. (4) The value of loaned equipment must not exceed its fair rentalvalue. When requesting approval for budget revisions, the local govern- ment must use the same format for budget information that was The fair market value of third-party in-kind contributions must be used in its application, unless the state agency has approved an documented and, to the extent feasible, supported by the same alternative format. methods used internally by the local government. The local government must request prior written approval from the Program Income state agency or pass-through entity for one or more of the follow- ing programs and budget-related reasons: Unless a state law provides otherwise, the local government shall comply with the terms of the state award regarding the genera- Change in the scope or the objective of the project or pro- tion and use of program income. For purposes of TXGMS, the term gram (even if there is no associated budget revision requir- "program income" includes, but is not limited to, income from ing prior written approval). fees for services performed, the use or rental of real or personal 2) Change in key personnel (including employees and con- property acquired under state awards, the sale of commodities or tractors) that are identified by name or position in the state items fabricated under a state award, license fees, and royalties award. on patents and copyrights, and principal and interest on loans (3) The disengagement from a project for more than three made with state award funds. "Program income" refers to gross months, or a 25 percent reduction in time and effort devoted income directly generated by a supporting activity during the to the state award over the course of the period of perfor- period of performance. Costs incidental to the generation of pro- mance, by the approved project director or principal inves- gram income may be deducted from gross income to determine tigator. program income only if (1) deduction is authorized by the award (4) The inclusion, unless waived in writing by the state agency and (2) the costs to be deducted are not charged to the award. or pass-through entity, of costs that require prior approval in accordance with TxGMS. Except as otherwise provided in state statutes, regulations, or the terms and conditions of the state award, program income does (5) The transfer of funds budgeted for participant support costs not include rebates, credits, discounts, andi interest earned on any to other budget categories. of them. Taxes, special assessments, levies, fines, and similar rev- (6) Subaward activities not proposed in the application and enues a local government raised are not program income unless approved in the state award. A change of sub-grantee only the revenues are specifically identified in the state award or state requires prior approval if the state agency or pass-through entity includes the requirement in the terms and conditions agency regulations as program income. Proceeds from the sale of the state award. In general, a state agency or pass- of real property, equipment, or supplies are not program income; through entity should not require prior approval of a change such proceeds must be handled in accordance with the Prop: of sub-grantee unless the inclusion was a determining factor erty Standards section. Unless the agency specifies or approves in the merit review or eligibility process. This requirement another use of program income, program income is deducted from does not apply to the procurement transactions for goods total allowable costs, reducing the overall total amount of the state and services. award. Changes in the total approved cost sharing amount. 8) The need arises for additional state funds to complete the Revision of Budget and Program Plans project. The approved budget for the state award summarizes the financial (9) Transferring funds between the construction and non-con- aspects of the project or program as approved during the state struction work under the state award. award process. It mayinclude either the state share and non-state (10)A no-cost extension (meaning, an extension of time that share or only the state share as determined by the state agency or does not require the obligation of additional state funds) pass-through entity. of the period of performance than any one-time extension authorized by the state agency in accordance with the state 16 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION award. All requests for no-cost extensions should be submit- Grantee Subawards and Contracts ted at least 10 calendar days before the conclusion of the period of performance. The state agency may approve mul- Sub-grantee and Contractor Determination tiple no-cost extensions under a state award if not prohibited by state statute or rule. In the event of a subaward or procurement contract, the local (11) Other circumstances specified in the state award. government is responsible for making case-by-case determina- tions to determine whether the entity receiving state funds is a The state agency must not permit a transfer of funds that would sub-grantee or a contractor. The state agency may require the cause any state appropriation to be used for purposes other than local government to comply with additional guidance to make those consistent with the appropriation. The state agency may these determinations, provided such guidance does not conflict also, at its option, restrict the transfer of funds among direct cost with this section. The table below sets forth criteria to be used to categories (for example, personnel, travel, and supplies) or pro- distinguish sub-grantees from contractors in state grant programs. grams, functions, and activities when: the: state share of the state award exceeds the Texas Acquisi- tion Threshold; and the cumulative amount of a transfer exceeds or is expected to exceed 10 percent of the total budget, including cost share, as last approved by the state agency. Period of Performance A local government may charge to the state award only allowable costs incurred during the period of performance and any costs incurred before the state agency made the state award that were authorized by the state agency. See Pre-award Costs in Appendix7. STATE GRANT PROGRAM Sub-grantee/Subrecipient and Contractor Determination Sub.gantee/Subiecpent Contractor Characteristics thats support the classification oft the entity as a Characteristics that support a procurement relationship between sub-grantee include, but are not limited to, when the entity: the local government or sub-grantee a contractor include, buta are not limited to, when the contractor: (1) determines who is eligible to receive what financial (1) provides the goods and services within normal business assistance; operations; (2) has its performance measured in relation to whether the objectives of a grant program were met; (2) provides similar goods or services to many different (3) has responsibility for programmatic decision making; purchasers; (4) is responsible for adherence to applicable grant program (3) normally operates in a competitive environment; requirements: specified ini the state award; and (4) provides goods or services that are ancillary to the (5) implements aj program for a public purpose specified in implementation of a grant program; and authorizing statute, as opposed to providing goods or (5) is not subject to compliance requirements of a state grant services for the benefit oft the local government. program as a result of the agreement. However, similar requirements may applyf for other reasons. Texas Grant Management Standards - Version 2.0 17 STATEWIDE PROCUREMENT DIVISION Procurement Contracts grantee or sub-grantee must document and provide justification for all bids it rejects. GENERAL PROCUREMENT STANDARDS Procurement Methods Procurement by competitive proposals This is a procurement method used when conditions are not When procuring property and services under a state award, the local government must follow the same documented policies and appropriate for using sealed bids. This procurement method procedures, including conflict of interest standards, it uses for pro- may result in either a fixed-price or cost-reimbursement contract. curements from its non-state funds as well as comply with TxGMS Requests for proposals require public notice, and all evaluation factors and their relative importance must be identified. Proposals and applicable law. The local government shall use the procure- ment methods in this section unless another method is approved must be solicited from multiple qualified entities. To the maximum extent practicable, any proposals to the public notice must be by the state agency. considered. The procuring entity must have written procedures for Procurement by micro-purchases conducting technical evaluations and for selecting contractors. A Procurement by micro-purchase ist the aggregate dollar amount of contract must be awarded to the responsible firm whose proposal which does not exceed $10,000. Micro-purchases may be awarded is most advantageous to the program, with price and other factors without soliciting competitive quotations if the local government considered. considers the price to be reasonable. Procurement of architecturelengneerng services by competi- Procurement by simplified acquisition procedures tive proposals Small purchase procedures are those relatively simple and infor- Competitive proposal procedures may be used for procurement mal procurement methods for securing services, supplies, or of architecturalengneering (A/E) professional services using an other property that do not cost more than the Texas Acquisition alternate evaluation method where the price is not a selection fac- Threshold. If simplified acquisition procedures are used, price or tor. Instead of considering price, competitors' qualifications may rate quotations must be obtained from an adequate number of be evaluated and the most qualified competitor selected. Contract qualified entities. award is subject to negotiation of fair and reasonable compen- sation. The method can only be used to procure architectural/ Procurement by sealed bids (formal advertising) engineering professional services. It cannot be used to purchase Sealed biddingi ist feasible onlyif( (1)a complete, adequate, and real- other services provided by A/E firms that are a potential source to istic specification or purchase description is available; (2) two or perform the proposed work. more responsible bidders have been identified as willing and able Procurement by noncompetitive proposals to compete effectively for the business; (3) the procurement lends itself to a firm-fixed-price contract; and (4) the selection of the suc- Procurement through solicitation of a proposal from only one cessful bidder can be made principally based on price. If sealed source may be used only when one or more of the following cir- bids are used, bids must be solicited from an adequate number cumstances apply: (1) the procurement transaction can be fulfilled of known suppliers, providing them with sufficient response time by a single source; (2) the public exigency or emergency for the prior to the date set for opening the bids. Unless specified by the requirement will not permit a delay resulting from providing pub- state agency, the grantee or sub-grantee may exercise judgment lic notice of a competitive solicitation; (3) the local government in determining what number is adequate. For local governments, requests in writing to use a noncompetitive proposals; or (4) after the invitation for bids must be publicly advertised. The invitation solicitation of a number of sources, competition is determined for bids must define the items or services in order for the bidder to inadequate. properly respond. All bids must be opened at the time and place Procurement Considerations prescribed in the invitation for bids. A firm-fixed-price contract is The purchase procedures must avoid acquisition of unnecessary awarded to the lowest responsive and responsible bidder. When or duplicative items. Consideration should be given to consolidat- specified in the solicitation, factors such as discounts, transporta- ing or breaking out procurements to obtain a more economical tion cost, and life-cycle costs must be considered in determining purchase. When appropriate, an analysis should be made between which bid is the lowest. Payment discounts may only be used to leasing and ourchasing property or equipment to determine the determine the low bid when the grantee or sub-grantee deter- most economical approach. mines they are a valid factor based on prior experience. The 18 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Time and Materials Contracts family, their partner, or an organization that employs ori is about to employ any of the parties indicated herein, has a financial or other At time and materials contract is a contract in which the contractor interest in or a tangible personal benefit from an considered sum of is paid the (1) actual cost of materials used and (2) a fixed entity for a contract. An employee, officer, agent, and board member of hourly rate for labor. Int the event the local government uses a time and materials contract, each contract must set a ceiling price that the local government or subgrantee may neither solicit nor accept the contractor exceeds at its own risk. Further, the local govern- gratuities, favors, or anything of monetary value from contractors. However, an unsolicited item of nominal value may be accepted ment awarding such a contract must assert a high degree of over- under a written policy of the local government or sub-grantee. sight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. Because the If the local government or sub-grantee has a parent, affiliate, or subsidiary organization that is not a state, local government, or contractor will have no incentive to control the cost of materials, a time and materials contract is appropriate only if no other contract Indian Tribe, the local government or sub-grantee must also main- tain written standards of conduct covering organizational conflicts is suitable. of interest. Organizational conflicts of interest mean that because Administrative Efficiency of relationships with a parent company, affiliate, or subsidiary When appropriate for procurement or use of common or shared organization, the local government or sub-grantee is unable or goods and services, the local government is encouraged to enter appears to be unable to be impartial in conducting a procurement into intergovernmental agreements80 and utilize the cooperative action involving a related organization. At a minimum, the local purchasing programs established by SPD or DIR for procurement government or sub-grantee's conflict of interest standards and transactions. In addition, the local government is encouraged to associated disclosure requirements must comply with applicable use federal, state, and local surplus property instead of purchas- law, TXGMS, and the terms and conditions of the state award. ing new equipment and property when it is feasible and reduces Oversight project costs. The local government must maintain oversight to ensure that Award Considerations and Procurement Records contractors perform in accordance with the terms, conditions, and The local government must award contracts to responsible con- specifications of their contracts and purchase orders. The local tractors that possess the ability to perform successfully under the government isr responsible for the settlement of all contractual and terms and conditions of a proposed contract. The local govern- administrative issues arising out of its procurement transactions. ment must consider contractor integrity, public policy compliance, These issues include, but are not limited to, source evaluation, proper classification of employees past performance record, and protests, disputes, and claims. These standards do not relieve financial and technical resources when conducting a procurement the local government of any contractual responsibilities under its transaction. The local government must maintain records suffi- contracts. cient to detail the history of each procurement transaction. These COMPETITION records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the All procurement transactions must be conducted in a manner basis for the contract price. that provides full and open competition and is consistent with the standards of this section and applicable state. law. To ensure Conflict of Interest Standards objective contractor performance and eliminate unfair competi- The local government or sub-grantee must maintain written stan- tive advantage, contractors that develop or draft specifications, dards of conduct covering conflicts of interest and governing the requirements, statements of work, or invitations for bids must be actions of its employees engaged in the selection, award, and excluded from competing on those procurements. Some examples administration of contracts. No employee, officer, or agent, board of situations that may restrict competition include, but are not member with real ora apparent conflict ofi interest may participate in limited to the selection, award, or administration of a contract supported by the state award. A conflict ofi interest includes when the employee, (1) placing unreasonable requirements on firms for them to qualify to do business; officer, agent, or board member, any member of their immediate (2) requiring unnecessary experience and excessive bonding; 80 Ani intergovernmental. agreement is an agreement! between governmental entities to exchange goods and services at cost, or the nearest practicable estimate thereof.A Ani intergovernmental. agreementi is notap procurement contract. Texas Grant Management Standards Version 2.0 19 STATEWIDE PROCUREMENT DIVISION (3) noncompetitive pricing practices between firms or between transaction will displace public sector employees. However, as a affiliated companies; starting point, the local government must make independent esti- (4) noncompetitive contracts to consultants that are on retainer- mates before receiving bids or proposals. contracts; Costs or prices based on estimated costs for contracts under the (5) organizational conflicts of interest; state award are allowable onlyt to the extent that the costs incurred (6) specifying only a "brand name" product instead of allowing or cost estimates included ini negotiated prices would be allowable "an equal" product to be offered and describing the perfor- for the local government under the Cost Principles section. The mance or other relevant requirements of the procurement; local government may reference its own cost principles as long and as they comply with TxGMS cost principles. The local government ) any arbitrary action in the procurement process. must not use the "cost plus a percentage of cost" and percentage The local government must have written procedures for of construction costs" methods of contracting. procurement transactions. These procedures must ensure that all solicitations STATE AGENCY REVIEW Specifications Review 1) Incorporate a clear and accurate description of the technical requirements for the property, equipment or service being The state agency or pass-through entity may review the techni- procured. The description may include a statement of the cal specifications of proposed procurements under the state qualitative nature of the property, equipment, or service to award if the state agency believes the review is needed to ensure be procured. When necessary, the description must provide that the item or service specified is the one being proposed for minimum essential characteristics and standards to which acquisition. The local government or sub-grantee must submit the the property, equipment, or service must conform. Detailed technical specification of proposed procurements when requested product specifications should be avoided if at all possible. by the federal agency or pass-through entity. This review should When it is impractical or uneconomical to clearly and accurately describe the technical requirements, a "brand take place prior to the time the specifications are incorporated name or equivalent" description of features may be used to into a solicitation document. When the local government or sub- provide procurement requirements. The specific features of grantee desires to accomplish the review after a solicitation has the named brand must be clearly stated. been developed, the state agency or pass-through entity may still (2) Identify any additional requirements that the offerors must review the specifications. In those cases, the review should be fulfill and all other factors that willl be used in evaluating bids limited to the technical aspects of the proposed purchase. or proposals. Pre-procurement Document Review The local government must ensure that all prequalified lists of When requested, the local government or sub-grantee must pro- persons, firms, or products used in procurement transactions are vide procurement documents (such as requests for proposals, invi- current and include enough qualified sources to ensure maximum tations for bids, or independent cost estimates) to the state agency open competition. When establishing or amending prequalified for pre-procurement review. The state agency or pass-through lists, the local government must consider objective factors that entity may conduct a pre-procurement review when evaluate price and cost to maximize competition. The local government must not preclude potential bidders from qualifying the local government's procurement procedures or opera- during the solicitation period. tion fails to comply with the procurement standards set forth in TxGMS; CONTRACT COST AND PRICE (2) the procurement is expected to exceed the Texas Acquisition The local government must perform a cost or price analysis for Threshold and ist to be awarded without competition or only procurement contract modifications, one bid is expected to be received in response to a solicita- every transaction, including tion; in excess of the Texas Acquisition Threshold including contract modifications. The method and degree of analysis conducted (3) the procurement is expected to exceed the Texas Acquisition Threshold, and specifies a "brand name" depend on the facts surrounding the particular procurement product; transaction. For example, the local government should consider (4) the procurement is expected to exceed the Texas Acquisition potential workforce impacts in its analysis if the procurement Threshold and a sealed bid procurement is to be awarded to an entity other than the apparent low bidder; or 20 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION (5) a proposed contract modification changes the scope of a CONTRACT PROVISIONS contract or increases the contract amount and the resulting The local government's contracts must contain applicable contract contract value exceeds the Texas Acquisition Threshold. provisions from Appendix 6 as well as any additional provisions The local government is exempt from the pre-procurement review necessary for compliance with law and the terms of the state required by this section if the state agency determines that its award. procurement systems comply with TxGMS. The local government may request that the state agency review its procurement system Subaward Procedures to determine whether it meets these standards for its system to be certified. Generally, these reviews must occur where there is con- REQUIREMENTS FOR PASS-THROUGH ENTITIES tinuous high-dollar funding and third-party contracts are awarded A local government must ensure that every subaward is clearly regularly. identified as a subaward and that the subaward complies with the The local government may self-certify its procurement system. terms and conditions of the state award and TxGMS. The standards However, self-certification does not limit the state agency's or required by TxGMS flow down to the sub-grantees through the pass-through entity's right to review the system. Under a self- subawards unless the context clearly indicates otherwise. certification procedure, the state agency or pass-through entity Many of the standards in TxGMS are presented from the perspec- may rely on written assurances from the local government that it tive of the grantor (state agency) and grantee (local government) is complying with the standards of this part. The local government relationship. To determine the respective duties and obligations must cite specific policies, procedures, regulations, or standards in the subaward context, the local government in its role as the as complying with these requirements and have its system avail- pass-through entity will stand in the shoes of the grantor (state able for review. agency) and the sub-grantee will comply with the requirements of the grantee (local government) unless alternate text BONDING REQUIREMENTS specifies requirements for a particular category of sub-grantees (for exam- The state agency or pass-through entity may accept the recipient's ple, nonprofit organizations, institutions of higher education). In its or subrecipient's bonding policy and requirements for construc- role as a pass-through entity, the local government will facilitate tion or facility improvement contracts or subcontracts exceeding the communications between the sub-grantees and state agency the Texas Acquisition Threshold. Before doing so, the state agency that are necessary for the timely evaluation of matters requiring must determine that the state interest is adequately protected. If the approval of the state agency. Unless the award provides other- such a determination has not been made, the minimum require- wise, any matter that would require approval of the state agency ments must be as follows: grantor if carried out by the local government grantee must still be (1) A bid guarantee from each bidder equivalent to 5 percent approved by the state agency grantor, even though it is carried out of the bid price. The bid guarantee must consist of a firm by a sub-grantee. commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance FIXED AMOUNT AWARDS that the bidder will, upon acceptance of the bid, execute A fixed amount award is a type of grant agreement pursuant to any required contractual documents within the specified which the state agency or pass-through entity provides a specific timeframe. amount of funding without regard to actual costs incurred under (2) Aperformance bond on the contractor's part for 100 percent the state award. Fixed amount awards are appropriate when oft the contract price. Aj performance bond is a bond executed the work that is to be performed can be priced with a reason- in connection with a contract to secure the fulfillment of all the contractor's obligations under a contract. able degree of certainty. Samples of appropriate mechanisms to establish an appropriate price include the local government's past (3) A payment bond on contractor's the part for 100 percent of with similar experience types of work for which outcomes and its the contract price. A payment bond is a bond executed in connection with a contract to assure payment as required costs can be reliably predicted, or the local government can easily by the law of all persons supplying labor and material in the obtain price estimates for significant cost elements. execution of the work provided for under a contract. This type of state award reduces some of the administrative burden and ecord-keeping requirements for both the local gov- Texas Grant Management Standards Version 2.0 21 STATEWIDE PROCUREMENT DIVISION ernment and state agency. Accountability is based primarily on reduced by the amount that reflects the activities that were performance and results. With prior written approval from the not completed in accordance with the state award. When the state agency, a pass-through entity may provide subawards based required activities were completed in accordance with the on1 fixed amounts upt to $500,000, providedi the subawards comply terms and conditions of the state award, the local govern- ment is entitled to any unexpended funds. with the requirements of this section and the state award. The fol- lowing conditions apply to fixed amount awards: Periodicreports may be established fort fixed amount awards. (8) For prior approval requirements that apply to fixed amount The state award amount is negotiated using the cost prin- awards, see Revision of Budget and Program Plans and ciples (or other pricing information) as a guide. The state Fixed Amount Awards. agency or pass-through entity may use fixed amount awards ifthe project scope is specific and if accurate cost, historical, PRE-AWARD RISK REVIEW OF APPLICANTS or unit pricing data is available to establish a fixed budget based on a reasonable estimate of actual costs. Budgets for Prior to making a subaward, the local government must review the fixed amount awards are negotiated with the local govern- risk posed by grant applicants. ment and the totala amount oft the: state funding is determined in accordance with the local government's proposal, avail- The local government as part of its pre-award risk review may able pricing data, and Cost Principles section. Accountability review eligibility qualifications and financial integrity information must be based on performance and results, which can be available through government repositories such as the System for communicated in performance reports or through routine Award Management (SAM.gov). Awards may not be made to enti- monitoring. There is no expected routine monitoring of ties that are subject to suspension or debarment as indicated on the actual costs incurred by the local government under the Texas Debarred Vendor List or System for Award Management. the state award. Therefore, the state agency may choose not to require financial reporting. This does not absolve The local government must establish and maintain policies and the local government from the record retention nor does it procedures for conducting a risk assessment to evaluate the absolve the local government of the responsibilities of mak- ing records available for review during an audit. Payments risks posed by applicants before issuing state subawards. This must be based on meeting specific requirements oft the state assessment helps identify risks that may affect the advancement award. Some of the ways. in which the state award may be toward or the achievement of a project's goals and objectives. paid include, but are not limited to, the following: Risk assessments assist grant program managers in determining (a) In several partial payments. The amount of each pay- appropriate resources and time to devote to project oversight and ment as well as the "milestone" or event triggering the monitor recipient progress. This assessment may incorporate ele- payment, should be agreed to in advance and included ments such as the quality of the application, award amount, risk in the state award. associated with the program, cybersecurity risks, fraud risks, and (b) On a unit price basis. The defined unit prices should be impacts on local jobs and the community. If the local government agreed to in advance and included in the state award. determines that a subaward will be made, specific conditions that (c) In one payment at the completion of the state award. correspond to the degree of risk assessed may be applied to the subaward agreement. The risk criteria to be evaluated must be (4) A fixed amount award must not be used in programs that described ini the announcement of the funding opportunity. require cost sharing. (5) A fixed amount award may generate and use program In evaluating risks posed by applicants, the local government may income in accordance with the terms and conditions of the consider the following: state award; however, the requirements of Program Income section of TxGMS do not apply. (a) financial stability; (6) At the end of a fixed amount award, the local government (b) the applicant's record of effectively managing financial risks, must certify in writing to the state agency or pass-through assets, and resources; entity that the project was completed as agreed to in the (c) quality of management systems and ability to meet the man- state award, or identify those activities that were not com- agement standards; pleted, and that all expenditures were incurred in accor- dance with Factors Affecting Allowability of Costs. When (d) the applicant's record of managing previous and current the required activities were not carried out, including fixed awards, including compliance with reporting requirements amount awards paid on unit price basis under paragraph (1) and conformance to the terms and conditions of state and (b) of this section, the amount of the state award must be federal awards, if applicable; 22 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION (e) reports and findings from audits performed, if applicable; and through subawards to sub-grantees, the local government must () the applicant's ability to effectively implement statutory, include the following information in the subaward: regulatory, or other requirements imposed on the grantee Subaward Information and sub-grantees of state awards. The local government must include the following information in SPECIFIC CONDITIONS each subaward: The local government may impose additional specific conditions (a) Sub-grantee's name (which must match registered name in based on an analysis of the following factors: SAM or DUNS); 1) its risk assessment as described in the Pre-award Risk (b) Sub-grantee's unique entity identifier or DUNS number; Review of Applicants section; (c) Funding opportunity number (if the local government has assigned a number to the funding opportunity); 4) the sub-grantee's history of compliance with the terms and conditions of a state or federal award; (d) Award date; (3). the sub-grantee's ability to meet expected performance (e) Period of performance (start and end date); goals as described ini the subaward; or (f) Amount of state funds obligated in the subaward; (4) a responsibility determination of a sub-grantee. (g) Total amount of state funds obligated to the sub-grantee by These specific conditions may include the following: the local government, including the current obligation; (h) Total amount of each state award committed to the sub- requiring payments as reimbursements rather than advance grantee by the local government; payments; Total required cost sharing, if applicable; (2) withholding authority to proceed to the next phase until receipt of evidence of acceptable performance; Project description; 3) requiring additional or more detailed financial reports; (k) Name of local government and contact information for award- ing official; and (4) requiring additional project monitoring; Indirect cost rate for the subaward. (5) requiring the grantee or sub-grantee to obtain technical or management assistance; or Terms and Conditions (6) establishing additional prior approvals. The local government must incorporate all the general terms and Prior to imposing specific conditions, the local government must conditions (for example, administrative requirements, statutes and notify the sub-grantee as to rules) applicable to the award. the nature of the: specific conditions; If the subaward includes terms and conditions incorporated by 2) the reason why the specific conditions are being imposed; reference, the subaward must include wording that expressly 3) the nature of the action needed to remove the specific con-: incorporates, by reference, the applicable information and speci- ditions, ifa applicable; fies a publicly available website where the information may be accessed. The local government must provide a copy of the full (4) the time allowed for completing the actions; and text of such information promptly if a sub-grantee requests it. 5) the method for requesting the local government to recon- The local government must also maintain an archive of previous sider imposing a specific condition. versions of the incorporated by reference terms and conditions, Any specific conditions must be promptly removed once. the condi- with effective dates, for use by the sub-grantees, auditors, or tions that prompted them have been corrected. others. The archive should be located on the local government's website int the same place where current terms and conditions are INFORMATION CONTAINED IN A SUBAWARD available. The local government shall ensure that each subaward is clearly Additional Requirements identified to the sub-grantee as a subaward and that each sub- award is formalized by written agreement. In addition to any The local government must include any additional requirements applicable terms and conditions of the state award that flow down necessary for the local government to meet its responsibilities under the state award. This includes information and certifications Texas Grant Management Standards - Version 2.0 23 STATEWIDE PROCUREMENT DIVISION required for submitting financial and performance reports that the (2) The results of previous audits. This includes considering local government must provide to the state agency. whether or not the sub-grantee receives a Single Audit prepared in compliance with the Uniform Guidance, and the (a) State Agency, Program, or Award-Specific Terms extent to which the same or similar subawards have been and Conditions. The local government may include in audited; each subaward any specific terms and conditions that (3) Whether the sub-grantee has new personnel or new or sub- are in addition to the general terms and conditions. stantially changed systems; and Whenever practicable, these specific terms and condi- tions also should be available on a public website and (4) The extent and results of state agency monitoring (for exam- in notices of funding opportunities in addition to being ple, if the sub-grantee also receives state awards directly included in a subaward. from the state agency). (b) Subaward Performance Goals. The local govern- If appropriate, the local government will consider implementing ment must include in the subaward an indication of specific conditions in a subaward and notify the state agency of the timing and scope of expected performance by the the specific conditions. sub-grantee as related to the outcomes intended to be achieved by the program. In: some instances (for exam- SUB-GRANTEE MONITORING AND MANAGEMENT ple, discretionary research awards), this may be limited to the requirement to submit technical performance The local government must monitor the activities of a sub-grantee reports (to be evaluated in accordance with local as necessary to ensure that the sub-grantee complies with state government policy). Where appropriate, the subaward law and the terms and conditions of the subaward. The local gov- may include specific performance goals, indicators, ernment is responsible for monitoring the overall performance milestones, or expected outcomes (such as outputs, or of a subrecipient to ensure that the goals and objectives of the services performed or public impacts of any of these) subaward are achieved. In monitoring a sub-grantee, a local gov- with an expected timeline for accomplishment. Report- ernment must: ing requirements must be clearly articulated such that, where appropriate, performance during the execution 1) Review financial and performance reports. of the subaward has a standard against which sub- (2) Ensure that the sub-grantee takes corrective action on all grantee performance can be measured. The local gov- significant developments that negatively affect the sub- ernment may include program-specific requirements, award. Significant developments include Audit find- as applicable. These requirements should be aligned Single ings related to the subaward, other audit findings, site visits, with strategic goals, strategic objectives or perfor- and written notifications from a subrecipient of adverse mance goals that are relevant to the program. condition that will impact its ability to meet the milestones (4) The subaward shall include the indirect cost rate for the sub- or the objectives of a subaward. When significant develop- award that is either a negotiated rate or a de minimis rate as ments negatively impact the subaward, a sub-grantee must defined in the Indirect Costs section. provide the local government with information on its plan 5) The subaward shall include a requirement that the sub- for corrective action and any assistance needed to resolve grantee permit the local government and auditors to access the situation. the sub-grantee's records and financial statements for the (3) Issue a management decision for audit findings pertain- local government to fulfill its monitoring requirements. ing to the subaward provided to the sub-grantee from (6) The subaward shall include appropriate terms and condi- the local government as required by the Management Deci- tions concerning the closeout of the subaward. sion section. EVALUATION OF SUB-GRANTEES RISK OF Depending upon the local government's assessment of the risk NONCOMPLIANCE posed by the sub-grantee as described in the Evaluation of Sub- grantee's Risk of Noncompliance section, the following monitoring The local government shall evaluate each sub-grantee's fraud tools may be useful for the local government to ensure proper risk and risk of noncompliance with a subaward to determine accountability and compliance with program requirements and the appropriate sub-grantee monitoring. When evaluating a sub- achievement of performance goals: grantee's risk, a local government should consider the following: (1) providing sub-grantees with and technical assis- 1 training The sub-grantee's prior experience with the same or similar tance on program-related matters; subawards; 24 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION (2) performing site visits to review the sub-grantee's program the: state agency or pass-through entity upon the completion of the operations; and state award or when the property is no longer needed. (3) arranging for audit services. The local government must verify that a sub-grantee is audited as Equipment required by TxGMS. Further, the local government must consider Title to equipment acquired under the state award will vest upon whether the results of a sub-grantee's audit, site visits, or other acquisition in the local government subject toi the conditions oft this monitoring necessitate adjustments to the local government's section. This title must be a conditional title unless a state statute records. The local government must consider taking enforcement specifically authorizes the state agency to vest title in the local action against noncompliant sub-grantees as described in the government without further responsibility to the state government Remedies for Noncompliance section and permitted by the sub- and the state agency elects to do SO. A conditional title means award. a clear title is withheld by the state agency until conditions and requirements specified in the terms and conditions of a state Property Standards award have been fulfilled. The local government or sub-grantee must use equipment for the Insurance Coverage project or program for which it was acquired and for as long as The local government must, at a minimum, provide the equivalent needed, whether or not the project or program continues to be insurance coverage for real property and equipment acquired or supported by the state award. The local government must not improved with state funds as provided to property and equipment encumber the equipment without prior written approval of the owned by the local government. Insurance is not required for state state agency or pass-through entity. owned property unless required by the terms and conditions of the state award. Prior written approval by the state agency is required if the local government desires to use the equipment (1) for activities in sup- port of other grant programs, (2) to provide services for a fee that Real Property is less than a private company would charge for similar services, Subject to the obligations and conditions set forth in state law, title and (3) as at trade-in with the proceeds to offset the cost of replace- to real property acquired or improved under the state award will ment equipment. vest upon acquisition in the local government. See the Property Trust Relationship section. Prior approval of the state agency Regardless of whether equipment is acquired inj part or its entirety is required, prior to the acquisition of real property by the local under the state award, the local government must manage equip- government using grant funds. Except as otherwise provided by ment (including replacement equipment) utilizing procedures that state statutes or the state agency, real property must be used for meet the following requirements: the originally authorized purpose as long as it is needed for that Property records must include a description of the property, purpose a serial number or another identification number, the source of funding for the property the title holder, the acquisition Al local government must use, manage, and dispose of real prop- date, the cost of the property, the percentage of the state erty acquired under a state award in accordance with applicable agency contribution towards the original purchase, the loca- law. When real property is no longer needed for the originally tion, use and condition of the property, and any disposition authorized purpose or the state award expires or terminates, the data including the date of disposal and sale price of the local government must obtain written disposition instructions from property. The local government and sub-grantee are respon- the state agency. sible for maintaining and updating property records when there is a change in the status of the property. (2) Al physical inventory of the property must be conducted, and State-owned Property the results must be reconciled with the property records at Title to state-owned property remains vested with the state gov- least once every two years, and more frequently if required ernment. The local government must submit an inventory of all by statute or the award. state-owned property in its custody to the state agency annually. (3) A control system must be in place to ensure safeguards for The local government must request disposition instructions from preventing property loss, damage, or theft. Any loss, dam- Texas Grant Management Standards Version 2.0 25 STATEWIDE PROCUREMENT DIVISION age, or theft of equipment must be investigated. The local expressly authorized by state statute, the local government must government or sub-grantee must notify the state agency or not use supplies acquired with the state award to provide services pass-through entity of any loss, damage, or theft of equip- fora a fee that is less than a private company would charge for simi- ment that will have an impact on the program. lar services, unless prior written approval from the state agency is (4) Regular maintenance procedures must be in place to ensure obtained. the property isi in proper working condition. (5) If the local government is authorized or required to sell Intangible Property the property, proper sales procedures must be in place to ensure the highest possible return. Title to intangible property acquired under a state award vests (6) The state agency may specify additional requirements for upon acquisition in the local government. The local government Controlled Assets or other items of equipment, regardless of must use the intangible property for the originally authorized pur- cost, with a high potential for loss. pose and must not encumber the property without the approval of the state agency. A local government must use, manage, and dispose of equip- ment acquired under a state award by the local government in Al local government must use, manage, and dispose of intangible accordance with applicable law. The local government must obtain property acquired under a state award by the local government in written disposition instructions from the state agency when the accordance with applicable law. If expressly provided in the state original or replacement equipment acquired under a state award award, the local government may copyright any work that is sub- is no longer needed for the original project, program, or other ject to copyright and was developed, or for which ownership was authorized purpose, or when the state award expires or termi- acquired, under a state award. The state agency reserves a royalty- nates, unless the per unit fair market value of the equipment is free, nonexclusive, and irrevocable right to reproduce, publish, or less than $10,000 or disposition instructions have been previously otherwise use the work for state purposes and to authorize others provided. to dos SO. This includes the right to require local governments and sub-grantees to make such works available through government Supplies repositories. Title to supplies acquired under the state award will vest upon When no longer needed for the originally authorized purpose or acquisition in the local government. A local government must use, when the state award expires or terminates, the local government manage, and dispose of supplies acquired under a state award by must obtain written disposition instructions from the state agency. the local government in accordance with applicable law. The state Absent statutory authority and specific terms and conditions in the agency may specify additional requirements for Controlled Assets state award, the local government will execute all papers and to or other types of supplies, regardless of cost, with a high potential perform such other property rights as necessary to transfer the for loss. intangible property to the state agency. When there is a residual inventory of unused supplies exceed- ing $10,000 in aggregate value at the end of the period of per- Property Trust Relationship formance, and the supplies are not needed for any other state Real property, equipment, and intangible property acquired or award, the local government may retain or sell the unused sup- improved with the state award must be held in trust by the local plies. Unused supplies mean supplies that are in new condition, government as trustee for the beneficiaries of the project or pro- not having been used or opened before. The aggregate value of gram under which the property was acquired or improved. The unused supplies consists of all supply types, not just like-item sup- state agency or pass-through entity may require the local govern- plies. The state agency or pass-through entity is entitled to com- ment to record liens or other appropriate notices of record to indi- pensation in an amount calculated by multiplying the percentage cate that personal or real property has been acquired or improved of the state agency's or pass-through entity's contribution towards with a state award and that use and disposition conditions apply the cost of the original purchases by the current market value or to the property. Absent statutory authority and specific terms and proceeds from the sale. If the supplies are sold, the state agency conditions in the state award, property acquired under the state or pass-through entity may permit the local government to retain, award is state property. from the state share, $1,000 of the proceeds to cover expenses associated with the selling and handling of the supplies. Unless 26 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Records pertaining to state property must be complete, accurate, or pass-through entity may extend the due date for any financial and detailed. 81 Depending on the transaction, property purchased report with justification from the local government or sub-grantee. with state grant funds may be subject to the Statewide Property Accounting (SPA) system reporting requirements.2 As general Monitoring and Reporting Program guidance, for a capital asset purchased with state grant funds Performance to be reported by a state agency in the SPA system, the capital Monitoring by the Local Government asset must be (1) placed into service by the state agency and (2) in the state agency's possession. The term "capital asset" is The local government must be responsible for the oversight of defined to be a possession of the state that has an estimated use- the state award. The local government must monitor its activities ful life of more. than one year. 83 Grant program managers should under state awards to ensure they are compliant with all require- consult with the Comptroller's Fiscal Management Division at ments and meeting performance expectations. Monitoring by the spa@cpa.texas.gov to determine whether property purchased local government must cover each program, function, or activity. using state grant funds is to be reported in the SPA: system.84 Submitting Performance Reports The local government must submit performance reports as Performance and Financial Monitoring and required by the state award. Intervals are no less frequently Reporting than annually nor more frequently than quarterly except if specific conditions are applied, and preferably in coordina- Financial tion with performance reporting. The local government must Reporting submit annual reports 90 calendar days after the reporting The local government or sub-grantee will provide financial reports period unless otherwise specified in the state award and in the form and format prescribed by the state agency. must submit quarterly or semiannual reports 30 calendar days after the reporting period unless otherwise specified in The state agency or pass-through entity must collect financial the state award. Alternatively, the state agency may require reports no less than annually. The local government may not col- annual reports before the anniversary dates of multiple-year lect financial reports more frequently than quarterly unless a spe- state awards. The local government must submit the final cific condition has been implemented in accordance with specific performance report 90 calendar days after the conclusion of conditions. To the extent practicable, the local government should the period of performance. The state agency or pass-through entity may extend the due date for any performance report collect financial reports in coordination with performance reports. with justification from the local government or sub-grantee. The local government or sub-grantee must submit financial reports (2) The local government must submit performance reports in as required by the state award. Reports submitted annually by the a form and format approved by the state agency. The per- local government or sub-grantee must be due no later than 90 cal- formance reports should contain, for each state award, brief endar days after the reporting period. Reports submitted quarterly information on the following as well as any other information specified by the state agency in the state award: or semiannually must be due no later than 30 calendar days after the reporting period. (a) A comparison of accomplishments to the objectives of the state award established for the reporting period (for The final financial report submitted by the local government must example, comparing costs to units of accomplishment. be due no later than 120 calendar days after the conclusion of the Where performance trend data and analysis would period of performance. As sub-grantee must: submit a final financial be informative to the state agency program, the state agency should include this as a performance reporting report to a local government no later than 90 calendar days after requirement. the conclusion of the period of performance. The state agency (b) Explanations on why established goals or objectives 81 See generally Chapter 403, Subchapter L of the Texas Government Code for were. not met. propertya accounting requirements for property! belongingtot the State and: 341 TAC $5.2001 forr rule pertaining tot the Statewide Property Accounting System. (c) Additional information including, when appropriate, 12 TEX. GOVTCODE S 403.272. analysis and explanation of cost overruns or higher-than- 34TACS S 5.200(a). expected unit costs. See generally 34 TAC S 5.200(b) for certain exemptions to the SPA system reporting requirements. Texas Grant Management Standards - Version 2.0 27 STATEWIDE PROCUREMENT DIVISION Construction Performance Reports litigation, claim, negotiation, audit, open records request, admin- istrative review, or other action involving the grant or documents.85 State agencies or pass-through entities rely on on-site technical inspections and certified percentage of completion data to monitor The state agency may determine that records must be maintained progress under state awards for construction. Therefore, the state by the state agency,86 Upon written request by the state agency, agency may require additional performance reports when neces- the local government will promptly andi in as secure manner transfer sary to ensure. the goals and objectives of the state awards are designated records into the custody of the state agency. However, met. The local government will provide performance information the state agency may arrange for the local government to access int the form, format, and frequency prescribed by the state agency. the records that have long-term retention value SO long as they are Significant Developments continuously available to the state government. When a significant development that could impact the state The state agency, the State Auditor's Office, or any of their award occurs between performance reporting due dates, the authorized representatives, must have the right of access to any local government must notify the state agency or pass-through documents, papers, financial statements, or other records of the entity. Significant developments include events that enable meet- local government pertinent to the state award, to perform audits, ing milestones and objectives sooner or at less cost than antici- execute site visits, or for any other official use. This right also pated or that produce different beneficial results than originally includes timely and reasonable access to the local government's planned. Significant developments also include problems, delays, personnel for the purpose of interview and discussion related to or adverse conditions that will impact the local government's such documents ort the: state award in general. This right of access ability to meet milestones or the objectives of the state award. is not limited to the required retention period but lasts as long as When significant developments occur that negatively impact the the records are retained. state award, the local government must include information on its plan for corrective action and any assistance needed to resolve The local government shall comply with the requirements of the the situation. Texas Public Information Act, if the local government is subject to it.87 If the local government receives a public information request Site Visits for information related to the state award, the local government, The state agency or pass-through entity may conduct in-person or unless the grant agreement directs otherwise, will provide notice virtual site visits as warranted. of such request to the state agency under Section 552.305(b) of the Texas Government Code. If the local government receives a Waiver court order or a subpoena requiring the production and disclosure The state agency may waive any performance report that is not of records related to the state award, then the local government, necessary to ensure the goals and objectives of the state award if not otherwise prohibited under the terms of the order or sub- are being achieved. poena, will provide prompt written notice to the state agency of the order or subpoena. Reporting on Real Property Unless waived by the state agency, the local government will sub- Remedies for Noncompliance mit reports at least annually on the status of real property in which the state government retains an interest. Additional Specific Conditions and Corrective Action Records Retention and Access The state agency or pass-through entity may implement specific conditions if the local government fails to comply with statutes, Unless otherwise directed by the state agency, the local govern- ment must maintain and retain records (for example, financial 85 Ina accordances with thel Texas State Records Retention Schedule, 13 TAC S 6.10, records, performance records, supporting documents) until the the retention period specified in Section 441.1855 of the Texas Government third anniversary of the later date of (1) the grant completion or Code does not apply to grant agreements. expiration or (2) the resolution of all issues that arose from any Cf. 13 TAC S 6.94(a)(9) (stating that each state agency must require all third- party custodians ofrecords to providet the state agency with descriptions oftheir business continuity and/or disaster recovery plans as regards to the protection oft thes state agency'sv vital state records). 37 Chapter 552 oft the Texas Government Code. 28 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION rules, or the terms and conditions of the state award, under the 5) Pursue other legally available remedies. following circumstances: Termination when a sub-grantee has a history of failure to comply with the terms and conditions of state. awards; The state award may be terminated in part or in its entirety as 2) when a sub-grantee fails to meet expected performance follows: goals contained in state award; or (1) By the state agency if the local government fails to comply (3) when a sub-grantee has inadequate financial capability to with the terms and conditions of the state award. perform the state award. (2) By the state agency with the consent of the local govern- Specific conditions may include the following: ment, in which case the two parties must agree upon the termination conditions. These conditions include the effec- 1) requiring payments as reimbursements rather than advance tive date and, in the case of partial termination, the portion payments; to be terminated. (2) withholding authority to proceed to the next phase until (3) By the local government upon sending the state agency receipt of evidence of acceptable performance; a written notification of the reasons for such termination, (3) requiring additional or more detailed financial reports; the effective date, and, in the case of partial termination, the portion to be terminated. However, if the state agency (4) requiring additional project monitoring; determines that the remaining portion of the state award will (5) requiring the sub-grantee to obtain technical or manage- not accomplish the purposes for which the state award was ment assistance; or made, the state agency may terminate the state award in its (6) establishing additional prior approvals. entirety. (4) By the state agency for cause. Prior to imposing specific conditions, the state agency must notify the local government as to: (5) By the state agency for convenience. When the state award is terminated in part ori its entirety, the state the nature of the specific conditions; agency and the local government remain responsible for compli- (2) the reason why the specific conditions are being imposed; ance with the requirements set forth in the Closeout and Post- (3) the nature of the action needed to remove specific condi- Closeout Adjustments and Continuing Responsibilities sections. tions; (4) the time allowed for completing the actions; and Notification of Termination Requirement (5) the method for requesting the state agency or pass-through The state agency must provide written notice of termination to the entity to reconsider imposing a specific condition. local government unless the state award is being terminated by Once the circumstances that prompted the imposition of the spe- the local government. Ift the local government initiates the termina- cific conditions have been corrected, the state agency will remove tion of the state award, then the local government must provide the specific condition(s) upon written request of the local govern- written notice of the termination to the state agency. The written ment. notice of termination should include the reasons for termination, the effective date, and the portion of the state award to be termi- If the state agency determines that noncompliance cannot be remedied by imposing additional conditions, the state agency may nated, if applicable. take one or more of the following actions, as appropriate in the circumstances: Opportunities to Object, Hearings, and Appeals Temporarily withhold payments until the local government takes corrective action; The state agency must maintain written procedures for process- 2) Disallow costs for all or part of the activity associated with ing objections, hearings, and appeals. Upon initiating a remedy the noncompliant of the local government; for noncompliance (for example, disallowed costs, a corrective action plan, or termination), the state agency must the terminate (3) Suspend ort the state awardi in part ori in its entirety; provide local government with an opportunity to object and provide infor- (4) Withhold further state funds (new awards or continuation mation challenging the action. The state agency will comply with funding) for the project or program; and Texas Grant Management Standards - Version 2.0 29 STATEWIDE PROCUREMENT DIVISION any requirements for hearings, appeals, or other administrative and local government). When justified, the state agency or proceedings to which the local government is entitled under any pass-through entity may approve extensions for the local statute or rule applicable to the action. government or sub-grantee. (3) Closeout activities are not complete if payment by the state agency to the local government is outstanding for allowable Effects of Suspension and Termination reimbursable costs under the state award being closed out. Costs to the local government resulting from obligations incurred (4) The local government must promptly refund any unobligated by the local government during a suspension or after the termina- funds that the state agency paid and that are not authorized tion of a state award are not allowable unless the state agency to be retained. expressly authorizes them in the notice of suspension or termina- (5) Consistent with the terms and conditions of the state award, tion or subsequently. However, costs during suspension or after the state agency must make all necessary adjustments to termination are allowable if the state share of costs after closeout reports are received (for example, to reflect the disallowance of any costs or the the costs result from obligations that were properly incurred deobligation of an unliquidated balance). by the local government before the effective date ofs suspen- sion or termination, and not in anticipation of it; and (6) The local government must account for any property acquired with state funds or received from the state govern- 2) the costs would be allowable if the state award was not ment in accordance with the Property Standards and Per- suspended or expired normally at the end of the period of formance and Financial Monitoring and Reporting sections. performance in which the termination takes effect. The state agency should complete all closeout actions for state awards no later than one year after receipt and accep- Closeout tance of all required final reports. The state agency will close out the state award wheni it determines that all applicable administrative actions and all required work of Post-Closeout Adjustments and Continuing the state award have been completed by the local government. Responsibilities Closeout activities include the following: The closeout of the state award does not affect any of the follow- Thel local government must submit all reports (financial, per- ing: formance, and other reports required by the state agency) no later than 90 calendar days after the conclusion of the 1) The right of the state agency to disallow costs and recover period of performance or an earlier due date if specified funds based on a later audit or review. However, the state by the state award. A sub-grantee must submit all reports agency must make determinations to disallow costs and (financial, performance, and other reports required by a sub- notify the local government within the record retention award) to the pass-through entity no later than 90 calendar period. days after the conclusion of the period of performance by 4) The local government's obligations to return funds or right the subaward (or an earlier due date as agreed upon by to receive any remaining and available funds as a result the pass-through entity). When justified, the state agency of refunds, corrections, final indirect cost rate adjustments or pass-through entity may approve extensions for the local (unless the state award is closed in accordance with the government or sub-grantee. When the local government Closeout section), or other transactions. does not have at final indirect cost rate covering the period of of TxGMS. (3) Audit Requirements performance, a final financial report must still be submitted to fulfill the requirements of this section. The local govern- (4) Property management and disposition requirements speci- ment must submit a revised final financial report when all fied in the Property Standards section. applicable indirect cost rates have been finalized. 5) Records retention as required by the, Records Retention and (2) The local government must liquidate all obligations incurred Access section. under the: state award no later than the liquidation date indi- After the closeout of the state award, a relationship created under cated in the state award or 90 calendar days after the con- the state award may be modified or ended in whole or in part. clusion of the period of performance. A sub-grantee must This may only be done with the consent of the state agency and liquidate all financial obligations incurred under a subaward no later than 90 calendar days after the conclusion of the the local government, provided the responsibilities of the local period of performance of the subaward (or an earlier date government referred to in this section, including those for prop- as agreed. upon by the state agency or pass-through entity 30 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION erty management as applicable, are considered and provisions (6) For local governments that educate and engage students are made for continuing responsibilities of the local government, in research, the dual role of students as both trainees and as appropriate. employees (including pre-and post-doctoral staff) contribut- ing to the completion of state awards for research must be recognized in the application of these principles. Collection of Amounts Due The local government may not earn or keep any profit result- Any state funds paid to the local government in excess of the ing from state financial assistance, unless explicitly autho- amount that the local government is determined to be entitled to rized by state law and the terms and conditions of the state under the state award constitute a debt to the State of Texas. The award. See the Program Income section of TxGMS. When the required activities of a fixed amount award were completed state agency must collect all debts arising out of its state awards in accordance with the terms and conditions of the award, in accordance with Chapter 2251 of the Texas Government Code, the unexpended funds retained by the local government are ifita applies. not considered profit. APPLICATION Cost Principles The local government must apply these principles in determin- General Provisions ing allowable costs under state awards of grant funds. The local government must also use these principles as a guide in pricing POLICY GUIDE fixed-price contracts and subcontracts when costs are used in The application of these Cost Principles is based on the following determining the appropriate price. These cost principles do not fundamental premises: apply to (1) fixed amount awards or (2) other awards under which thel local government is not required to account to the: state agency The local government is responsible for the efficient and for actual costs incurred. effective administration of the state award through sound management practices. Some nonprofit organizations, because of their size and nature of (2) The local government assumes responsibility for administer- operations, can be considered by awarding entities to be similart to ing state funds in a manner consistent with state statutes, for-profit organizations in terms of the applicability of cost princi- regulations, and the terms and conditions of the state award. ples. Ift the parties agree, such nonprofit organizations must oper- (3) The local government, in recognition of its unique combi- ate under TxGMS cost principles applicable to for-profit entities. nation of staff, facilities, and experience, is responsible for employing organization and management techniques nec- Some of these principles apply exclusively to entities other than essary to ensure the proper and efficient administration of local governments. The purpose of including those ist twofold. One, the state award. any parties may agree to apply TxGMS to a particular grant. Two, (4) The accounting practices of the local government must entities other than local governments may be subject to TxGMS as be consistent with these cost principles and support the subrecipients of grants to which TxGMS applies. accumulation of costs as required by these cost principles, including maintaining adequate documentation to support Basic Considerations costs charged to the state award. As an example, where records do not meet the standards set forth in TxGMS to COMPOSITION OF COSTS support compensation for fringe benefits, the state agency require documentation in a format similar to the sample The total cost of a state award is the sum of the allowable direct may personnel activity report provided in Appendix 8. and allocable indirect costs minus any applicable credits. (5) When reviewing, negotiating, and approving cost allocation FACTORS AFFECTING ALLOWABILITY OF COSTS plans or indirect cost proposals, the state agency should ensure that the local government consistently applies these Except where otherwise authorized by statute, costs must meet cost principles. Where wide variations exist in the treatment the following criteria to be allowable under state awards: of a given cost item by the local government, the reason- ableness and equity of such treatments should be fully 1) Be necessary and reasonable for the performance of the considered. state award and be allocable thereto under these principles. Texas Grant Management Standards - Version 2.0 31 STATEWIDE PROCUREMENT DIVISION 2) Conform to any limitations or exclusions set forth in these isi incurred specifically for the state award; principles or in the state award as to types or amount of cost (2) benefits both the state award and other work of the local items. government and can be distributed in proportions that may 3) Be consistent with policies and procedures that apply uni- be approximated using reasonable methods; or formly to both state-financed and other activities of the local (3) is necessary to the overall operation of the local government government. and is assignable in part to the state award in accordance (4) Be accorded consistent treatment. For example, a cost must with these cost principles. not be assigned to a state award as a direct cost if any other cost incurred for the same purpose in like circumstances has Appropriate Allocation been allocated to the state award as an indirect cost. All activities that benefit from the local government's indirect cost, (5) Be determined in accordance with GASB standards. including unallowable activities and donated services by the local (6) Not be included as a cost or used to meet cost sharing government or third parties, will receive an appropriate allocation requirements of any other state financed program in either of indirect costs. the current or a prior period. Restriction (7) Be adequately documented. See the Standards for Financial and Program Management section. A cost allocable to a particular state award may not be charged to other state awards (for example, to overcome fund deficiencies REASONABLE COSTS or to avoid restrictions imposed by statutes, rules, or the terms and conditions of the state awards). However, this prohibition Acosti is reasonable ifi it does not exceed an amount that a prudent would not preclude the local government from shifting costs that person would incur under the circumstances prevailing when the are allowable under two or more state awards in accordance with decision was made to incur the cost. In determining the reason- existing statutes, rules, or the terms and conditions of the state ableness of a given cost, consideration must be given to the fol- awards. lowing: Direct Cost Allocation Principles whether the cost generally recognized as ordinary and nec- essary for the local government's operation or the proper Ifa a cost benefits two or more projects or activities in proportions and efficient performance of the state award; that can be determined without undue effort or cost, the cost must (2) the restraints or requirements imposed by such factors as be allocated to the projects based on the proportional benefit. sound business practices; arm's-length pargaining; federal, However, when those proportions cannot be determined because state, local, tribal, and other laws and regulations; and terms of the interrelationship of the work involved, then, notwithstand- and conditions of the state award; ing the Restriction paragraph in this section, the costs may be (3) market prices for comparable costs for the geographic area; allocated or transferred to benefitted projects on any reasonable documented basis. Where the purchase of equipment or other (4) whether the individuals concerned acted with prudence in the circumstances considering their responsibilities to the capital asset is specifically authorized under a state award, the local government, its employees, its students or member- costs are assignable to the state award regardless of the use that ship (f applicable), the public at large, and the: state govern- may be made of the equipment or other capital asset involved ment; and when no longer needed for the purpose for which it was originally (5) whether the cost represents a deviation from the govern- required. See also the Property Standards and Equipment and ment's established written policies and procedures for Other Capital Expenditures sections. incurring costs. APPLICABLE CREDITS ALLOCABLE COSTS Applicable credits refer to transactions that offset direct or indirect Allocable Costs in General costs allocable to state award. Examples of such transactions are A cost is allocable to a state award or other cost objective if the purchase discounts, rebates or allowances, recoveries or indem- cost is assignable to that state award or other cost objective in nities on losses, insurance refunds or rebates, and adjustments accordance with the relative benefits received. This standard is of overpayments or erroneous charges. To the extent that such met if the cost satisfies any of the following criteria: credits accruing to or received by the local government relate to 32 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION allowable costs, they must be credited to the state award either as LIMITATION ON ALLOWABILITY OF COSTS a cost reduction or cash refund, as appropriate. Statutes may limit the allowability of costs. Any costs that exceed In some instances, the amounts received from the state govern- the maximum allowed by statute may not be charged to the state ment to finance activities or service operations of the local gov- award. ernment should be treated as applicable credits. Specifically, the SPECIAL CONSIDERATIONS concept of netting such credit items (including any amounts used Overview to meet cost sharing requirements) must be recognized in deter- mining the rates or amounts to be charged to the state award. Other sections in this part describe special considerations and requirements applicable to certain types of non-state entities (for PRIOR WRITTEN APPROVAL example, local government, IHES, and Indian Tribes). The reasonableness and allocability of certain costs under state Cost Allocation Plans and Indirect Costs Proposals for States, awards may be difficult to determine. To avoid subsequent disal- Local Governments, and Indian Tribes lowance or dispute based on unreasonableness: or non-allocabil- Awards to states, local governments, and Indian Tribes are often ity, the local government may seek the prior written approval of implemented at the level of department within the state, local the state agency before incurring the cost. The absence of prior government, or Indian Tribe. A central service cost allocation plan written approval on any element of cost will not, in itself, affect is established to allow such department to a claim a portion of the reasonableness or allocability of that element, unless prior centralized basis service costs that are incurred in proportion to approvali iss specifically required for allowability as described under the award's activities. Examples of centralized service costs may certain circumstances in the following: include motor pools, computer centers, purchasing, accounting, Changes inj principal investigator, project leader, project part- etc. Because state awards are performed within the individual ner, or scope ofe effort must receive the prior written approval operating agencies, there needs to be a process whereby these oft the state agency or pass-through entity; central service costs can be identified and assigned to benefitted Costs sharing; activities on a reasonable and consistent basis. The central service Program income; cost allocation plan establishes this process. Revision of budget and program plans; Individual departments typically charge state awards for indirect Compensation-personal services; costs through an indirect cost rate. A separate indirect cost rate Compensation-fringe benefits; proposal for each operating department is ysually necessary to Contingency provisions; claim indirect costs under state awards. Indirect costs include Depreciation; 1) The indirect costs originating in each operating department Equipment and other capital expenditures; of the state, local government, or Indian Tribe carrying out Exchange rates; state awards; and Fines, penalties, damages and other settlements; (2) The costs of central governmental services distributed Fixeda amount subawards; through the central service cost allocation plan and not oth- erwise treated as direct costs. Fundr raising and investment management costs; (3) For purposes of a state award, the general requirements for Goods or services for personal use; developing and submitting cost allocation plans (for central Insurance and indemnification; service costs) andi indirect cost rate proposals for submission Organization costs; to the state agency or pass-through entity are comparable to the requirements found in Appendices IV (Indirect (F & A) Pre-award costs; Costs Identification and Assignment, and Rate Determination Rearrangement and reconversion costs; for Nonprofit Organizations), V (State/Local Governmentwide Scholarships and student aid; and Central Service Cost Allocation Plans), and VII (States and Traveld costs. Local Government and Indian Tribe Indirect Cost Proposals) to the Uniform Guidance. Texas Grant Management Standards - Version 2.0 33 STATEWIDE PROCUREMENT DIVISION Interagency Service in accordance with the requirements of this section. These adjustments or refunds arei intendedi to correct the proposals An operating department may provide services to another oper- used to establish the rates and do not constitute a reopening ating department of the same state, local government, or Indian of the rate negotiation. The adjustments or refunds will be Tribe. In these instances, the cost of services provided may made regardless of the type of rate negotiated (predeter- include allowable direct costs of the: service plus a pro-rated: share mined, final, fixed, or provisional). of indirect costs. A standard indirect cost allowance equal to 15 For rates covering a future fiscal year of the local government, the percent of the direct salaries and wages for providing the service unallowable costs must be removed from the indirect cost pools (excluding overtime, shift premiums, and fringe benefits) may be and the rates must be adjusted. used instead of determining the actual indirect costs of the ser- vice. These services do not include centralized services that are For rates covering a past period, the state share of the unallow- included in central service cost allocation plans. able costs must be computed for each year involved, and a cash refund (including interest) must be made to the state government Costs Incurred or Paid by a State or Local Government in accordance with the directions provided by the state agency. Costs incurred or paid by a state or local government on behalf of When cash refunds are made for past periods covered by provi- and in direct benefit to its IHEs are allowable. These costs include sional or fixed rates, appropriate adjustments must be made when but are not limited to fringe benefit programs, such as pension the rates are finalized to avoid duplicate recovery of the unallow- costs and Federal Insurance Contributions Act (FICA) costs. These able. costs are allowable costs regardless of whether they are recorded in the accounting records of the institutions, subject to the follow- For rates covering the current period, either a rate adjustment or a ing conditions: refund, as described in this section, must be required by the state agency. The choice of method must be at the discretion of the The costs meet the requirements of the Basic Considerations state agency, based on its judgment as to which method would section; be most practical. The costs are properly supported by approved cost alloca- The amount or proportion of unallowable costs included in each tion plans in accordance with the applicable cost accounting year's rate will be assumed to be the same as the amount or pro- principles in TXGMS; and portion of unallowable costs included in the base year proposal 3) The costs are not otherwise borne directly or indirectly by used to establish the rate. the state government. COLLECTION OF UNALLOWABLE COSTS Classification of Costs Payments made for costs determined to be unallowable by the There is no universal rule for classifying certain costs as direct or awarding state agency or pass-through entity must be refunded indirect. A cost may be direct for some specific service or function (with interest) to the state government. Unless directed by state but indirect the state award or other final cost objective. Therefore, statute or rule, repayments must be made in accordance with the each cost incurred for the same purpose in like circumstances instructions provided by the state agency or pass-through entity must be treated consistently either as a direct or an indirect cost that made the allowability determination. See also the Standards to avoid possible double-charging of state awards. Guidelines for for Financial and Program Management section. determining direct and indirect costs charged to federal awards are provided in TxGMS. ADJUSTMENT OF PREVIOUSLY NEGOTIATED INDIRECT COST RATES CONTAINING Direct Costs UNALLOWABLE COSTS General Negotiated indirect cost rates based on a proposal later found to Direct costs are those costs that can be identified: specifically with a have included costs that particular final cost objective, such as a: state award, or other inter- are unallowable as specified by state statutes, rules, or the nally or externally funded ac tivity, or that can be directly assigned terms and conditions of a state award; or to such activities relatively easily with a high degree of accuracy. Z are unallowable because they are not allocable to the Costs incurred fori the same purpose in like circumstances must be state award, must be adjusted, or a refund must be made, treated consistently as direct or indirect costs. 34 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Application to State Awards whether or not allowable and be allocated an equitable share of indirect costs. Some examples of these types of activities include The association of costs with a state award determines whether costs are direct or indirect. Costs charged directly to a state award maintenance of membership rolls, subscriptions, publica- are typically incurred specifically for that state award, including tions, and related functions. See Memberships, Subscrip- supplies needed to achieve the award's objectives and the pro- tions, and Professional Activity Costs. portion of employee compensation and fringe benefits expended (2) providing services and information to members, the govern- in relation to that specific award. Costs that otherwise would be ment, or the public. See Memberships, Subscriptions, and treated as indirect costs if they are directly related to a specific Professional Activity Costs and Lobbying. award may also include extraordinary utility consumption, the (3) promotion, lobbying, and other forms of public relations.. See cost of materials supplied from stock or services rendered by Advertising and Public Relations and Lobbying. specialized facilities, cybersecurity, integrated data systems, asset (4) conferences except those held to conduct the general management systems, performance management costs, or other administration of the nonprofit organization. See also Con- institutional service operations. ferences. Administrative and Clerical Staff Salaries (5) maintenance, protection, and investment of special funds not used in the nonprofit organization. See also Fundraising Administrative and clerical staff salaries should normally be and Investment Management Costs. treated as indirect costs. Direct charging of these costs may be (6) administration of benefits on behalf of members or clients, appropriate only if they meet all of the following conditions: and retirement including life hospital insurance, annuity or the administrative or clerical services are integral to a state plans, and financial aid. See also Compensation Fringe award; Benefits. (2) individuals involved can be specifically identified witha a: state Indirect Costs award; and General (3) the costs are not also recovered as indirect costs. Indirect costs are those costs incurred for a common or joint Minor Items purpose benefitting more than one cost objective, and not readily A direct cost of a minor amount may be treated as an indirect cost, assignable to the cost objectives specifically benefitted, without for reasons of practicality, provided that it is treated consistently effort disproportionate to the results achieved. for all state and non-state purposes. Facilities and Administration Classification Treatment of Unallowable Costs in Determining Indirect Cost For major IHES and major nonprofit organizations, indirect costs Rates must be classified within two broad categories: Facilities" The costs of certain activities are not allowable as charges to state and Administration." "Facilities" is defined as depreciation on awards. Even though these costs are, they must be treated as buildings, equipment and capital improvements, interest on direct costs for purposes of determining indirect cost rates and be debt associated with certain buildings, equipment and capital allocated their equitable share of the local government's indirect improvements, and operations and maintenance expenses. costs ift they represent activities that Administration" is defined as general administration and general 1) include the salaries of personnel; expenses such as the director's office, accounting, personnel and all other types of expenditures not listed specifically under one 2) occupy space; and of the subcategories of "Facilities" (including cross allocations (3) benefit from the local government's indirect costs. from other pools, where applicable). For nonprofit organizations, Treatment of Certain Costs for Nonprofit Organizations library expenses are included in the "Administration" category; for institutions of higher education, they are included in For nonprofit organizations, the costs of activities performed by the "Facilities" category. Major IHES are defined as those the nonprofit organization primarily as a service to members, required to use the Standard Format for Submission as clients, or the general public when: significant and necessary tot the noted in Appendix III to 2 CFR Part 200. Major nonprofit 0 nonprofit organization's mission must be treated as direct costs rganizations are those that receive more than $10 million in direct Federal funding. Texas Grant Management Standards - Version 2.0 35 STATEWIDE PROCUREMENT DIVISION Diversity of Nonprofit Organizations Predetermined rate means an indirect cost rate, appli- cable to a specified current or future period, usually Iti is not always possible to specify the types of costs that may! be the organization's fiscal year. The rate is based on an classified as indirect costs for nonprofit organizations due to the estimate of the costs to be incurred during the period. diversity of their accounting practices. The association of a cost Ap predetermined rate is not subject to adjustment. with a state award is the determining factor in distinguishing Fixedn rate means an indirect cost rate that has the same direct from indirect costs. However, typical examples of indirect characteristics as a predetermined rate, except that cost for many nonprofit organizations may include depreciation the difference between the estimated costs and the on buildings and equipment, the costs of operating and maintain- actual costs of the period covered by the rate is carried ing facilities, and general administration and general expenses, forward as an adjustment to the rate computation of a such as the salaries and expenses of executive officers, personnel subsequent period. administration, and accounting. Final rate means an indirect cost rate applicable to a specified past period that is based on the actual costs Negotiated Indirect Cost Rate of the period. At final rate is not subject to adjustment. () A grantee may elect to negotiate an indirect cost rate with Provisional rate or billing rate means a temporary indi- the state agency by submitting an Indirect Cost Rate Pro- rect cost rate applicable to a specified period that is posal accompanied by the appropriate required certification. used for funding, interim reimbursement, and reporting (2) If the grantee desires to leverage its approved federally indirect costs on state awards pending the establish- negotiated indirect cost rate, the grantee may submit to ment of a final rate for the period. the state agency a copy of the federal cognizant agency approved indirect cost proposal. 15 percent de minimis Indirect Cost Rate (3) The state agency will review the proposal to ensure the rate 1 A de minimis rate of 15 percent of Modified Total Direct Costs complies with state law and the documentation upon which (MTDC) is available to grantees under the following circum- the plan was negotiated is not inaccurate, materially incom- stances: plete, or out of date. The state agency may consult with the (a) A grantee that has never received a state or federal federal cognizant agency for indirect costs. The state agency negotiated indirect cost rate may elect to charge the de should make publicly available the policies, procedures and minimis rate. general decision-making criteria that its programs will follow (b) Ifa approved by the state agency, a grantee may charge to seek and justify deviations from negotiated rates. the de minimis rate if the grantee provides evidence (4) A state agency may use a rate different from the negoti- of an out-of-date state or federal approved negotiated ated rate approved by the federal cognizant agency when indirect cost rate of 15 percent or less. required by statute or rule, or when approved by a state (c) Unless approved by the state agency, entities that expe- agency based on a written explanation justifying the devia- rience a break in the state relationship (for example, tiont from the federal negotiated rate. expiration or termination of all awards with the state 5) The results of the negotiation will be formalized in a written agency) are not eligible to receive the de minimis rate agreement between the state agency and the local govern- for a new award. ment. (d) Unless approved by the state agency, a governmental (6) One-time extension of indirect rates. A grantee with a cur- department or agency unit that receives more than $35 rent negotiated indirect cost rate with a state agency may million in direct federal funding per the grantee's fiscal apply for an extension oft that agreement for upt to four years. year is not eligible fori the de minimis rate. The indirect cost rate extension request will be subject to (2) MTDC means all direct salaries and wages, applicable fringe the review and approval of the state agency. If this exten- benefits, materials and supplies, services, travel, and up sion is granted, the grantee may not request a rate review to the first $50,000 of each subaward (regardless of the until the extension period ends. The grantee must re-apply period of performance of the subawards under the award). to negotiate a new rate when the extension ends. After a MTDC excludes equipment, capital expenditures, charges new rate has been negotiated, the grantee may again apply for patient care, rental costs, tuition remission, scholarships for a one-time extension of the new rate in accordance with andi fellowships, participant support costs and the portion of this paragraph. each subaward in excess of $50,000. Other items may only Types of Negotiated Rates: be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the state agency. 36 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION 3) The availability of the de minimis rate is generally limited by the local government using the Certificate of Cost to a grantee that has never received a negotiated indirect Allocation Plan or Certificate of Indirect Costs as set cost rate. It is expected that entities that have experience forth below. The certificate must be signed on behalf of developing and negotiating rates have adequate resources the local government by an individual at a level no lower to develop a new indirect cost rate. than the executive director or chief financial officer of (4) As described in Factors Affecting Allowability of Costs sec- the local government that submits the proposal. tion, when applying the de minimis rate, costs must be con- CERTIFICATE OF COST ALLOCATION PLAN sistently charged as either direct or indirect costs, and may not be double charged or inconsistently charged as both. This is to certify that have reviewed the cost allocation plan sub- The de minimis rate does not require documentation to jus- mitted herewith and to the best of my knowledge and belief: tify its use and may be used indefinitely. Once elected, the 1) All costs included in this estab- local government must use the de minimis rate for all state proposal [identify date] to awards until such time as a grantee chooses to negotiate for lish cost allocations or billings for [identify period covered ar rate, which the grantee may apply to do at any time. by plan] are allowable in accordance with the requirements of TxGMS and the state award(s) to which they apply. Unal- Voluntary Waiver or Under-Charge of Indirect Cost Rate lowable costs have been adjusted for in allocating costs as indicated in the cost allocation plan. A grantee may voluntarily under-charge or waive the indirect cost rate to allow for a greater share of the state program funds to be (2) All costs included in this proposal are properly allocable used for the direct program costs. to state awards based on a beneficial or causal relation- ship between the expenses incurred and the state awards Refunds to which they are allocated in accordance. with applicable requirements. Further, the same costs thathavebeentreated Refunds must be made under every applicable award if proposals as indirect costs have not been claimed as direct costs are later found to have included costs that (a) are unallowable () as specified by law or regulation, (i) as identified in Considerations declare that the foregoing is true and correct. for Selected Items of Cost, or (ii) by the terms and conditions oft the Governmental Unit: state award, or (b) are unallowable because they are clearly not Signature: allocable to the state award. These adjustments or refunds must Name of Official: be made regardless of the type of rate negotiated predetermined, Title: final, fixed, or provisional). Date of Execution: Required Certifications CERTIFICATE OF INDIRECT COSTS Required certifications include: This is to certify thatl have reviewed the indirect cost rate proposal submitted herewith and to the best of my knowledge and belief: Financial reports must include a certification, signed by an official who is authorized to legally bind the local govern- 1 All costs included in this proposal [identify date]t to establish ment, which reads as follows: "Bys signing this report, certify billing or final indirect costs rates for [identify period covered to the best ofr my knowledge and! beliefthatt the reporti ist true, by rate] are allowable in accordance with the requirements complete, and accurate, and the expenditures, disburse- of the state award(s) to which they apply and the provisions ments and cash receipts are for the purposes and objectives of TxGMS. Unallowable costs have been adjusted for in allo- set forth in the terms and conditions of the state award. I cating costs as indicated in the indirect cost proposal. am aware that any false, fictitious, or fraudulent informa- (2) All costs included in this proposal are properly allocable tion, or the omission of any material fact, may subject me to state awards based on a beneficial or causal relation- to criminal, civil or administrative penalties for fraud, false ship between the expenses incurred and the agreements statements, false claims or otherwise." to which they are allocated in accordance with applicable (2) Certification of cost allocation plan or indirect cost rate pro- requirements. Further, the: same costs that have been treated posal. Each cost allocation plan or indirect cost rate proposal as indirect costs have not been claimed as direct costs. must comply with the following: Similar types of costs have been accounted for consistently (a) A proposal to establish a cost allocation plan or an indi- and the state government will be notified of any account- rect cost rate, submitted to the state agency or main- ing changes that would affect the predetermined rate. tained on file by the local government, must be certified Texas Grant Management Standards - Version 2.0 37 STATEWIDE PROCUREMENT DIVISION Ideclare that the foregoing is true and correct. either allowable or unallowable; rather, determination as to allow- Governmental Unit: ability in each case. should be based on the treatment provided for similar or related items of cost and based on the principles Signature: described in the Basic Considerations section. Name of Official: Title: SELECTED ITEMS OF COST Date of Execution: The selected items of cost are listed in Appendix 7, with a supple- (a) The state government may either disallow all indirect ment of additional requirements applicable to certain state grant costs or unilaterally establish an indirect cost rate when items program cost that are prescribed by the Comptroller under the local government fails to submit a certified proposal the authority of Chapter 783 of the Texas Government Code. In for establishing a rate. This rate should be based upon audited historical data or other data furnished to the case of a discrepancy between a specific state law and state state agency and for which it can be demonstrated that policy, the state law governs. all unallowable costs have been excluded. The rate established must ensure that potentially unallowable Audits costs are not reimbursed. Alternatively, the recipient may use the de minimis indirect cost rate. Audit Requirements (3). Nonprofit organizations must certify that they did not meet the definition of a major nonprofit organization as defined in AUDIT REQUIRED the Indirect Costs section, f applicable. General A local government that expends more than $1 million during its General Provisions for Selected Items of Cost fiscal year in state awards must have either a Financial Audit or CONSIDERATIONS FOR SELECTED ITEMS OF COST Program-specific Audit conducted for that year in accordance with the provisions of this section. As noted in Relation to Other Audit This section provides principles to be applied in establishing the Requirements, the state agency may also require an independent allowability of certain items involved in determining cost in addi- audit to be conducted based factors other than monetary thresh- tion to other requirements set forth in the Basic Considerations old. All audits must be conducted in accordance with GAGAS. section that include the following: Composition of Costs A local government that is exempt from state audit requirements must keep its records available for review or audit by appropriate Factors Affecting Allowability of Costs officials of the state agency, pass-through entity, and the State Reasonable Costs Auditor's Office. Allocable Costs Frequency of Audit Applicable Credits Prior Written Approval Required audits will be performed on an annual basis. If the audi- tee is required by statute to undergo its audits less frequently than Limitation on Allowance of Costs annually, then the auditee shall perform its audit biennially. Special Considerations Collection of Unallowable Costs Federal Single Audit Adjustment of Previously Negotiated Indirect Cost Rates Con- Instead of a Financial Audit or Program-specific Audit, a state taining Unallowable Costs agency, at its discretion, may accept the single audit of the local These principles apply whether or not a particular item of cost is government prepared in compliance with the Uniform Guidance if properly treated as direct cost or indirect cost. The sections listed the state agency determines that the state single audit sufficiently in Appendix 7 are not intended to be a comprehensive list of addresses internal controls and other grant requirements as they potential items of cost encountered under state awards. Failure to relate to the particular state award. mention a particular item of cost is not intended to imply that it is Agreed-upon Procedures Audit 38 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Instead of a Financial Audit or Program-specific Audit, a state state programs are major programs using a risk-based approach agency may accept an agreed-upon procedures audit if it deter- that must consider mines that the audit sufficiently reviews financial processes and current and prior audit experience; controls of the local government and adopts an administrative rule containing requirements for the audit. oversight by a state agency or other pass-through entities; and MAJOR PROGRAM DETERMINATION thei inherent risk of the state program. General The auditor will identify and label the major programs as either To determine audit requirements, an auditor must determine if the Type A or Type B depending on state award expended and other state grant is a major program. Auditors must determine which identified program risks. TABLE 1: MAJOR PROGRAM DETERMINATION Total State Awards Expended Type A Threshold Equal to or exceed $1 million but less than or equal to $34 $1 million million Exceed $34 million but less than or equal to $100 million Total state awards expended multiplied by 0.03 Exceed $100 million but less than or equal to $1 billion $3 million Exceed $1 billion but less than or equal to $10 billion Total state awards expended multiplied by 0.003 Exceed $10 billion but less than or equal $20 billion $30 million Exceed $20 billion Total state awards expended multiplied by 0.0015 Type A programs Type B programs Type A programs are identified as those major programs with state Auditors must identify Type By programs that are high risk. Auditors awards expended during the audit period exceeding the levels out- are not required to identify more high-risk Type B programs than lined in Table 1.1 Those state programs not labeled as Type Al based at least one-fourth the number of Type A programs identified as on Table 11 must be labeled Type By programs. low risk. Low risk Minimum Audit Requirements for Major Programs Auditors must identify Type A programs that are low risk. To be An auditor must audit all the following as major programs: considered low risk, a program must have All Type Aj programs not identified as low risk. been audited as a major program in at least one of two most All Type B programs identified as high risk. recent audit periods; and Additional programs as necessary to comply with the percent- not have had internal control deficiencies (identified as mate- age of coverage. rial weaknesses), a modified opinion on the program, or known or likely questioned costs that exceed 5 percent of the Percentage of Coverage total state awards expended for the program. When a local government's Type A major programs are designated A: state agency may require that a Type A program not be consid- as low risk, an auditor only needs to audit those Type B major ered low risk for a specific recipient. programs that are identified as high risk as well as other state programs with state awards expended that, in the aggregate, all major programs encompass at least 20 percent (0.20) of total state Texas Grant Management Standards - Version 2.0 39 STATEWIDE PROCUREMENT DIVISION funds expended. Otherwise, an auditor must audit all the major Program-specific Audit Guide Not Available programs identified as high risk, as well as other state programs When a current program-specific audit guide is not available, the with state awards expended that, in the aggregate, all major auditee and auditor must comply with the following standards: programs encompass at least 40 percent (0.40) of the total state awards expended. 1) Financial Statements: The auditee must prepare the finan- cial statements for the state program that includes, at a FINANCIAL AUDIT minimum, the following: (1) a description of the significant accounting policies used, (2) a summary schedule of prior The Financial Auditi must covert the entire operations oft the auditee, audit findings, and (3) a corrective action plan. or, at the option of the auditee, such audit must include a series (2) Auditor's Responsibilities: The auditor must: of audits that cover departments, agencies, and other organiza- tional units that expended or otherwise administered state awards (a) Perform an audit of the financial statements for the state during the audit period. In these instances, the audit must include program in accordance with GAGAS. the Financial Statements and Schedule of Expenditures of State (b) Obtain an understanding. of internal controls and perform Awards for each such department, agency, and other organiza- tests of internal controls over the state program. The audi- tional unit, which must be considered to be a non-state entity. The tor must report a significant deficiency or material weak- ness, assess the related control risk at the maximum, and financial statements and schedule ofe expenditures of state awards consider whether additional compliance tests are required must be for the same audit period. because ofi ineffective internal control. PROGRAM-SPECIFIC AUDIT (c) Determine whether the auditee has complied with state and federal laws, rules, and the terms and conditions of General state awards that could have a direct and material effect An auditee may elect to have a program-specific audit conducted ont the: state program. The compliance testing mustinclude in accordance with this section if the following conditions are met: tests of transactions and such other auditing procedures necessary to provide the auditor sufficient appropriate The auditee expends state awards under only one state audit evidence to support an opinion on compliance. program, excluding research and development (R&D); and (d) Follow up on prior audit findings and perform procedures The state program's statutes or rules, or terms and condi- to assess the reasonableness of the summary schedule tions of the state award, do not require a financial statement of prior audit findings prepared by the auditee. When the audit of the auditee. auditor concludes that the summary schedule of prior audit findings materially misrepresents the status of An auditee may elect to have a program-specific audit for research any prior audit finding, the auditor must report this condition and development conducted, but only if all of the following condi- as a current-year: audit finding. tions are met: (e) Report any audit findings consistent with the require- The auditee expends state awards under only from the same ments of the Audit Findings section. state agency, or the same state agency and the same pass- (3) Audit Reporting: The auditor's reports may be in the form of through entity; and either combined or separate reports. It may be organized (2) The state agency, or pass-through entity approves a pro- differently from the manner presented in this section. The gram-specific audit in advance. auditor's reports must state that the audit was conducted in accordance with this section andi include the following: Program-specific Audit Guide Available (a) an opinion (or disclaimer of opinion) on whether the finan- In some cases, a program-specific audit guide will be available to cial statements of the state program is presented fairly provide specific guidance to the auditor concerning internal con- in all material respects in accordance with the stated trols, compliance requirements, suggested audit procedures, and accounting policies; audit reporting requirements. The auditor will contact the state (b) a report on internal control related to the state program, agency to determine whether such a guide is available. When which must describe the scope of internal control testing a current program-specific audit guide is available, the auditor and the results of the tests; must follow Generally Accepted Government Auditing Standards (c) a report on compliance that includes an opinion (or dis- (GAGAS) and the guide when performing a program-specific audit. claimer of opinion) as to whether the auditee complied with laws, rules, and the terms and conditions of state 40 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION awards that could have a direct and material effect on the (a) The audit must be completed and the reporting package state program; and must be submitted by the auditee within 30 calendar (d) a schedule of findings and questioned costs for the state days after receipt of the auditor's report or nine months program that includes a summary of the auditor's results after the end of the audit period (whichever is earlier). relative to the state program and findings and questioned The state agency may authorize an extension when the costs consistent with the following: nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, 1. Asummaryo oft the auditorsresults, which musti include: or state holiday, the reporting package is due the next The type of report the auditor issued (unmodi- business day. fied opinion, qualified opinion, adverse opinion, (b) The auditee must make copies available for public or disclaimer of opinion) on whether the audited inspection unless restricted by law or rule. Auditees and financial statements were prepared in accor- auditors must ensure that their respective parts of the dance with GAAP; reporting package do not include protected personally (i) A: statement about whether significant deficien- identifiable information. cies or material weaknesses in internal control (c) The reporting package for a program-specific audit must were disclosed by the audit of the financial state- consist of the financial statements of the state program, ments; a Summary Schedule of Prior Audit Findings, a corrective (ii) A statement as to whether the audit disclosed action plan, and the auditor's report. any noncompliance that is material to the finan- cial statements of the auditee; COORDINATED AUDIT (iv) A statement about whether significant deficien- Instead of multiple audits of individual programs, a local govern- cies or material weaknesses in internal control ment receiving state-administered assistance may request by over major programs were disclosed by the audit; action of its governing body a single audit or coordinated audits by (V) Thei type of report the auditor issued (unmodified all state agencies from which it receives funds. 88 The local govern- opinion, qualified opinion, adverse opinion, or ment's request for a single audit or audit coordination should be disclaimer of opinion) on compliance for major directed to SPD via email at xgms@cpatexas.Qov. On receipt of a programs; request for a single audit or audit coordination, the Comptroller, (vi) A statement as to whether the audit disclosed in consultation with SAO, must not later than the 30th day after any audit findings that the auditor is required to the date of the request designate a single state agency to coor- report under the Audit Findings section; and 89 dinate state audits of the local government." With the exception (vi) An identification of each individual program. of audits conducted by the Comptroller and SAO, the designated 2. Findings and questioned costs for state awards that state agency must, to the extent practicable, assure single or coor- must include audit findings and be reported in the fol- dinated: state. audits of the local government for asl long as the des- lowing manner: ignation remains in effect or until the local government by action of Audit findings (for example, internal control find- its governing body withdraws its request for audit coordination. 90 ings, compliance findings, questioned costs, or fraud) that relate to the same issue must SUB-GRANTEES AND CONTRACTORS be presented as a single audit finding. Where An auditee may: simultaneously, be a grantee, a sub-grantee, and practical, audit findings should be organized by a contractor. Unless a program is exempt by state statute, state state agency. awards expended as a grantee or a sub-grantee are subject to ) Audit findings that relate to both the financial audit under this section. Payments received for goods or services statements and state awards must be reported provided as a contractor under a state award. Refer to the Sub- in both sections of the schedule. However, the grantee and Contractor Determination section for the consid- reporting in one section of the schedule may be in summary form and reference a detailed erations in determining whether payments constitute a federal reporting in the other section. TEX. GOVTCODE S 783.008(a). (4) Report Submission to State Agency. Report submission TEX. GOVT CODE S7 783.008(b). requirements for program-specific audits include the follow- 0 TEX. GOVT CODE SS 783.008(c)-(d). ing: Texas Grant Management Standards - Version 2.0 41 STATEWIDE PROCUREMENT DIVISION award or a payment for goods or services provided as a contractor. (4) Provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other informa- COMPLIANCE RESPONSIBILITY FOR CONTRACTORS tion needed for the auditor to perform the audit required by TxGMS. In most cases, the auditee's compliance responsibility for con- tractors is to ensure that the procurement, receipt, and payment AUDITOR SELECTION for goods and services comply with state statutes, rules, and the Auditor Procurement terms and conditions of a state award. State award compliance requirements normally do not flow down to contractors. However, When procuring audit services, the auditee must follow its own for procurement transactions in which the contractor is made documented procurement procedures that reflect applicable state responsible for meeting program requirements, the auditee must law (for example, Chapter 2254, Subchapter B of the Texas Gov- ensure those requirements are met, including by clearly stating ernment Code), including conflict ofi interest standards. When pro- the contractor's esponsibilities within the contract and reviewing curing audit services, the objective is to obtain high-quality audits. the contractor's records to determine compliance. When requesting proposals for audit services, the objectives and scope of the audit must be made clear, and the local government Relation to Other Audit Requirements must request a copy of the audit organization's peer review report, which the auditor must provide under GAGAS. Ifnot otherwise pre- TxGMS do not limit the authority of state agencies to conduct, or scribed by applicable law, factors to be considered in evaluating arrange for the conduct of, audits and evaluations of state awards, each proposal for audit services include the responsiveness to the nor limit the authority of any state agency officials. The state request for proposal, relevant experience, availability of staff with agency, the state agency's authorized auditors, and the SAO may professional qualifications and technical abilities, the results of conduct or arrange for additional audits that may be necessary to peer and external quality control reviews, and price. When procur- carry out the state agency's responsibilities under state statutes, ing audit: services, the auditee shall follow applicable provisions of rules, or the terms and conditions of the state award. Any addi- Chapter 2161 of the Texas Government Code. tional audits should be planned and performed in such a way as tol build upon work performed, including the audit documentation, Restriction on Auditor Preparing Indirect Cost Proposals sampling, and testing already performed, by other auditors. To the In addition to any state law restrictions, an auditor or audit orga- extent a recent audit meets the state agency's needs, the state nization who prepares the indirect cost proposal or cost allocation agency may rely upon and use the prior audit. plan may not be selected to perform the audit required by TXGMS when the indirect costs recovered by the auditee during the prior Remedies for Audit Noncompliance year exceed $1 million. This restriction applies to the base year used to prepare the indirect cost proposal or cost allocation plan Inc cases of continued inability or unwillingness of a grantee or sub- and any subsequent years in which the resulting indirect cost grantee to have an audit conducted in accordance with this part, agreement or cost allocation plan is used to recover costs. the state agency or pass-through entities must take appropriate action as provided in the Remedies for Noncompliance section. Restriction Relating to Non-Audit Services In addition to any state law restrictions, an auditor or audit orga- Auditees nization providing non-audit services to the auditee may not also be selected to perform the audit required by TxGMS if provision of AUDITEE RESPONSIBILITIES such services impairs auditor independence in accordance with The auditee must GAGAS. Arrange for the audit required by the Auditor Selection sec- Use of State Auditors tion and ensure it is properly performed and submitted; State auditors may perform all or part of the work required under 2) Prepare financial statements in accordance with the Finan- this parti if they fully comply with the requirements of this section. cial Statements section; 3) Promptly follow up and take corrective action on audit find- FINANCIAL STATEMENTS ings. This includes preparing a Summary Schedule of Prior Financial Statements Audit Findings and a Corrective Action Plan; and The auditee must prepare financial statements that reflect its 42 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION financial position, results of operations or changes in net assets, fiscal year in which the finding initially occurred. The corrective and, where appropriate, cash flows for the fiscal year audited. action plan and summary schedule of prior audit findings must The financial statements must be for the same organizational unit include financial statement findings that the auditor was required and fiscal year chosen to meet this section's requirements. How- to report in accordance with GAGAS. ever, the organization-wide financial statements may also include Summary Schedule of Prior Audit Findings departments, agencies, and other organizational units that have separate audits and prepare separate financial statements. The Summary Schedule of Prior Audit Findings must report the status of all audit findings included in the prior audit's schedule of Schedule of Expenditures of State. Awards findings and questioned costs. The summary schedule must also The auditee must also prepare a schedule of expenditures of state include audit findings reported in the prior audit's summary sched- awards for the period covered by the auditee's financial state- ule of prior audit findings except audit findings listed as corrected ments that must include the total awards expended. The auditee in clause (1) or no longer valid or not warranting further action in may choose to provide information requested by state agencies clause (3) as described below: or pass-through entities to make the schedule easier to use. For (1) When audit findings were fully corrected, the summary example, when a state program has multiple state awardy years, the schedule need only list the audit findings and state that cor- auditee may separately list the amount of state awards expended rective action was taken. for each year of a state award. The schedule must: (2) When audit findings were not corrected or only partially cor- list individual state programs by state agency. Fora a cluster of rected, the summary schedule must describe the reasons programs, the auditee must provide the cluster name, a list for the finding's recurrence, planned corrective action, and of individual state programs within the cluster, and provide any partial corrective action taken. When the corrective the: state agency name. For research and development, total action taken significantly differs from the corrective action state awards expended must be shown either by individual previously reported in a corrective action plan or the state state award or by state agency and major subdivision within agency's management decision, the summary schedule the state agency. must provide an explanation. 2) for state awards received as a sub-grantee, the name of the (3) When the auditee believes the audit findings are no longer pass-through entity and identifying number assigned by the valid or do not warrant further action, the reasons for this pass-through entity must be included. position must be described in the summary schedule. A valid reason for considering an audit finding as not warranting (3) provide total state awards expended for each individual further action is that all of the following have occurred: state program and state grant identifying number. For a cluster of programs, the auditee. must also provide the total two years have passed since the audit report in which for the cluster. the finding occurred was submitted to the: state agency, pass-through entity, or oversight agency for the federal (4) include the total amount provided to: sub-grantees from each single audit; state program. the state agency, pass-through entity, or oversight (5) include notes describing the significant accounting policies agency for the federal single audit is not currently fol- used in preparing the schedule and whether the auditee auditee lowing up with the on the audit finding; and elected to use the de minimis indirect cost rate. a management decision was not issued. AUDIT FINDINGS FOLLOW-UP Corrective Action Plan General At the completion of the audit, the auditee must prepare a correc- The auditee is responsible for follow-up and corrective action on tive action plan to address each audit finding included in the audi- all audit findings. As part of this responsibility, the auditee must tor's report for the current year. The corrective action plan must prepare a Summary Schedule of Prior Audit Findings. The auditee be a document separate from the auditor's findings described in must also prepare a Corrective Action Plan for current year audit the Audit Findings section. The corrective action plan must also findings. The Summary Schedule of Prior Audit Findings and the provide the name of the contact person responsible for the correc- Corrective Action Plan must include the reference numbers the tive action, the corrective action to be taken, and the anticipated auditor assigns to audit findings. Because the summary schedule completion date. When the auditee does not agree with the audit may include audit findings from multiple years, it must include the Texas Grant Management Standards Version 2.0 43 STATEWIDE PROCUREMENT DIVISION findings or believes corrective action is not required, the correc- 4) Provide technical advice and assistance to auditees and tive action plan must include a detailed explanation oft the reasons. auditors. (3) Follow up on audit findings to ensure that local governments REPORT SUBMISSION TO STATE AGENCY take appropriate and timely corrective action. Follow-up General includes: The audit and the reporting package must be submitted by the (a). issuing a management decision in accordance with the auditee within 30 calendar days after the auditee receives the Management Decision section; auditor's report, or nine months after the end of the audit period (b) monitoring the local government's progress imple- (whichever is earlier). The state agency may authorize an exten- menting a corrective action; sion when the nine-month timeframe would place an undue bur- C using audit follow-up techniques as appropriate, to den on the auditee. If the due date falls on a Saturday, Sunday, improve state program outcomes through better audit or state holiday, the reporting package is due the next business resolution, follow-up, and corrective action. day. The auditee must make copies available for public inspection unless restricted by law or rule. Auditees and auditors must ensure Auditors that their respective parts of the reporting package do not include AUDIT REPORTING FOR FINANCIAL AUDIT protected personally identifiable information. The auditor's report may be in the form of either combined or Reporting Package separate reports. It may be organized differently from the manner The reporting package must include the following: presented in this section. The auditor's report must state that the audit was conducted in accordance with this part and include the Financial Statements and Schedule of Expenditures of State following: Awards discussed in the Financial Statements section; Summary Schedule of Prior Audit Findings discussed in the (1) An opinion (or disclaimer of opinion) on whether the finan- Audit Findings Follow-up section; cial statements are presented fairly in all material respects in accordance with generally accepted accounting principles Auditor's report discussed in the Audit Reporting section; and and an opinion (or disclaimer of opinion) as to whether the (4) Corrective action plan discussed in the Audit Findings schedule of expenditures of state awards is fairly stated in Follow-up section. all material respects in relation to the financial statements as a whole. Requests for Management Letters Issued by the Auditor (2) Ar report on internal control over financial reporting and com- Auditees must submit, when requested by a state agency or pass- pliance with provisions of laws, regulations, contracts, and through entity, a copy of any management letters issued by the award agreements, noncompliance with which could have auditor. a material effect on the financial statements. This report must describe the scope of internal control and compliance Report Retention Requirements testing and the results of the tests. Where applicable, the Auditees must retain a copy of the reporting package described report must refer to the separate schedule of findings and questioned costs described int this section. in this section on file until the third anniversary of the later date of (1) the contract completion or expiration or (2) the resolution (3) A report on compliance for each program and a report on of all issues that arose from any litigation, claim, negotiation, internal control over compliance. This report must describe audit, open records request, administrative review, or other action. the scope oft testing of internal control over compliance and include an opinion (or disclaimer of opinion) on whether the involving the contract or documents. auditee complied with statutes, regulations, and the terms and conditions of state awards that could have a direct and Awarding State Agency Responsibilities material effect on each program and refer to the separate schedule of findings and questioned costs described in this In additional to all other requirements of this part, the state agency section. must (4) A schedule of findings and questioned costs that must Ensure that audits are completed, and reports are received include the following three components: in a timely manner in accordance with the requirements of (a) As summary of the auditor's results, which must include: TxGMS. 44 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION The type of report the auditor issued (unmodified AUDIT FINDINGS FOR FINANCIAL AUDIT opinion, qualified opinion, adverse opinion, or dis- Audit Findings Reported claimer of opinion) on whether the audited financial statements were. prepared in accordance with The auditor must report the following as an audit finding in the GAAP; schedule of findings and questioned costs: () A statement about whether significant deficiencies 1 Significant deficiencies and material weaknesses in internal or material weaknesses in internal control were control over major programs. disclosed by the audit of the financial statements; (2) Material noncompliance with the provisions of state or fed- (ii) A statement as to whether the audit disclosed any eral law, rules, or the terms and conditions of state awards. noncompliance that is material to the financial statements of the auditee; (3) Known questioned costs when either known or likely ques- tioned costs are greater than $25,000 for a type of com- iv) A: statement about whether significant deficiencies pliance requirement for a major program. When reporting or material weaknesses in internal control over the questioned costs, the auditor must include information to programs were disclosed by the audit; provide proper perspective for evaluating the prevalence (V) The type of report the auditor issued (unmodi- and consequences of the questioned costs. If the known fied opinion, qualified opinion, adverse opinion, questioned costs are greater than $25,000 for a state pro- or disclaimer of opinion) on compliance for major gram that is not being audited as a major program, no audit programs; finding needs to be reported (unless the auditor is made statement aware of the questioned costs as a result of an audit follow- (vi) A: as to whether the audit disclosed any audit findings that the auditor is required to report up or other audit procedure). under the Audit Findings section; and (4) The circumstances concerning why the auditor's report on (viiAn identification of programs by listing each indi- compliance for each program is other than an unmodified vidual program; however, in the case of a cluster opinion. This must be included unless the circumstances are of programs, only the cluster name as shown on otherwise reported as audit findings in the schedule of find- the schedule of expenditures of state awards is ings and questioned costs. required. (5) Known or likely fraud affecting a state award, unless the (b) Findings relating tot thei financial statements required to fraud is otherwise reported as an audit finding in the sched- be reported in accordance with GAGAS. ule of findings and questioned costs. This paragraph does not require the auditor to publicly report information that (c) Findings and questioned costs for state awards that could compromise investigative or legal proceedings or to must include audit findings as defined in the Audit Find- make an additional reporting when the auditor confirms that ings section and be reported in the following manner: the fraud was reported outside the auditor's reports under Audit findings (for example, internal control find- the direct reporting requirements of GAGAS. ings, compliance findings, questioned costs, (6) Instances where the results of audit follow-up procedures or fraud) that relate to the same issue must be disclosed that the Summary Schedule of Prior Audit Findings presented as a single audit finding. Where prac- prepared by the auditee materially misrepresents the status tical, audit findings should be organized by state of any prior audit finding. agency or pass-through entity. Audit Finding Detail and Clarity () Audit findings that relate to both the financial statements paragraph (4)b) of this section) Audit findings must be presented with sufficient detail and clarity and state awards (this paragraph (4)(c)) must be for the auditee to prepare a corrective action plan andi take correc- reported in both sections of the schedule. How- tive action and for state agencies to arrive at a management deci- ever, the reporting in one section of the schedule sion. As applicable, the following information must be included in may be in summary form and reference a detailed audit findings: reporting in the other section. The state program and specific state award identification, including the program title and number, state award identi- fication number, if applicable, and year, and the name of the state agency. When information, such as the program title and number or state award identification number, is unavail- Texas Grant Management Standards Version 2.0 45 STATEWIDE PROCUREMENT DIVISION able, the auditor must provide the best information available AUDIT DOCUMENTATION to describe the state award. Retention of Audit Documentation The criteria or specific requirement for the audit finding (for example, the specific state and federal law, rule, or term and The auditor must retain audit documentation and reports until the condition oft the state award). The criteria or specific require- third anniversary of the later date of (1) the contract completion or ment provides a context for evaluating evidence and under- standing findings. The criteria should generally identify the expiration, or (2) the resolution of all issues that arose from any required or desired state or expectation with respect to the litigation, claim, negotiation, audit, open records request, adminis- program or operation. trative review, or other action involving the contract or documents. When auditor 3) The condition found, including facts that support the defi- the is aware that the state agency or auditee is ciency identified in the audit finding. contesting an audit finding, the auditor must contact the parties contesting the audit finding for guidance prior to the destruction (4) A statement of cause that identifies the eason or explana- of the audit documentation and reports. tion for the condition or the factors responsible for the dif- ference between the situation that exists (condition) and the required or desired state (criteria), which may also serve as a Access to Audit Documentation basis for recommendations for corrective action. Audit documentation must be made available upon request to the 5) The possible asserted effect to provide sufficient information state agency or State. Auditor's Office to resolve audit findings, or to the auditee and state agency to permit them to determine to carry out oversight responsibilities. Access to audit documenta- the cause and effect to facilitate prompt and proper cor- rective action. A: statement of the effect or potential effect tion includes the right of state agencies to obtain copies of audit should provide a clear, logical link to establish the impact documentation, as is reasonable and necessary- or potential impact of the difference between the condition and the criteria. CRITERIA FOR STATE PROGRAM RISK (6) The identification of known questioned costs, by applicable General state program name and state award identification number, The auditor's determination should be based on an overall evalua- and how these questioned costs were computed. tion of the risk of noncompliance occurring that could be material When there are known questioned costs but the dollar to the state program. The auditor must consider criteria, such as amount is undetermined or not reported, a description those described in oft this section, to identify risk ins state programs. of why the dollar amount was undetermined or otherwise Also, as part of the risk analysis, the auditor may wish to discuss a could not be reported. particular state program with auditee management and the state (8) Information to provide proper perspective for evaluating agency. the orevalence and consequences of the audit finding. For example, whether the audit finding represents an iso- Current and Prior Audit Experience lated instance or a systemic problem. Where appropriate, Weaknesses in internal control over state programs would instances identified must be related to the universe and indicate higher risk. Therefore, consideration should be the number of cases examined and be quantified in terms given to the control environment over state programs. of dollar value. In addition, the audit finding should indicate This includes considering factors such as the expectation whether the sampling was a statistically valid sample. of management's adherence to state and federal statutes, (9) Thei identification of whether the audit findingi is a repeat of a rules, and the terms and conditions of state awards, and the finding in the immediately prior audit. The audit finding must competence and experience of personnel who administer identify the applicable prior year audit finding reference the state programs. numbers in these instances. (a) A: state program administered under multiple internal (10) Recommendations to prevent future occurrences of the defi- control structures may have higher risk. When assess- ciency identified in the audit finding. ing riski ina a large single audit, the auditor must consider whether weaknesses are isolated in a single (11) Views of responsible officials of the auditee. operating unit (for example, one college campus) or pervasive Reference Numbers throughout the entity. Each audit finding in the schedule of findings and questioned costs (b) Av weak system for monitoring sub-grantees would indi- must include a reference number. cate higher risk when significant parts of a state pro- gram are passed to sub-grantees through subawards. 46 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION (2) Prior audit findings would indicate higher risk, especially 2) The phase of a state program in its lifecycle at the auditee when the situations identified in the audit findings could mayindicate risk. For example, during the first and last years significantly impact a state program or have not been cor- that an auditee participates in a state program, the risk rected. may be higher due to the start-up or closeout of program activities and staff. Oversight Exercised by State Agencies 1) The oversight exercised by state agencies may be used to Management Decisions assess risk. For example, recent monitoring or other reviews performed by an oversight entity that disclosed no significant The management decision must clearly state whether or not the problems would indicate lower risk, whereas monitoring that audit finding is sustained, the reasons for the decision, and the disclosed significant problems would indicate higher risk. expected auditee action to repay disallowed costs, make financial (2) State agencies may identify state programs that are higher adjustments, or take other action. If the auditee has not com- risk. pleted corrective action, a timetable for follow-up should be given. Prior to issuing the management decision, the state agency may Inherent Risk of the State Program request additional information or documentation from the auditee, The nature of a state program may indicate risk. Consideration including a request for auditor assurance related to the documen- should be given to the complexity of the program and the extent tation, as a way of mitigating disallowed costs. The management to which the state program contracts for goods and services. For decision should describe any appeal process available to the audi- example, state programs that disburse funds through third-party tee. The state agency may also issue a management decision on contracts or have eligibility criteria may be higher risk. findings relating to the financial statements, that are required to The phase of a state program in its lifecycle at the state be reported in accordance with GAGAS. The state agency respon- agency mayi indicate risk. For example, a new state program sible for issuing the management decision should do: SO within six with new or interim regulations may have higher risk than an months of receipt of the report. established program with time-tested regulations. Also, sig- nificant changes in state programs, statutes, regulations, or the terms and conditions of state awards may increase risk. Texas Grant Management Standards - Version 2.0 47 STATEWIDE PROCUREMENT DIVISION VERSION HISTORY Release/Revision Date Version Summary of Revisions January 1, 2020 1.0 Publication Date ofl TXGMS. December 17, 2021 1.1 Non-substantive modifications (e.g., format adjustments, inclusion of hyperlinks, correction oftypographical errors) throughout the TXGMS. Substantive revisions to thei following sections: Audits, Appendices 2, 6, and 9. October 1, 2024 2.0 Non-substantive modifications (e.g., format adjustments, correction of typographical errors) throughout the TxGMS. Non-substantive clarifications to the following sections: Throughout the TXGMS to align with 2 CFR Part200. Substantive revisions to the following sections: Standard for Financial and Program Management: Internal Controls - Subaward Procedures: Fixed Amount Awards Property Standards: Equipment Supplies - Closeout - Indirect Costs: 15 percent de minimis Indirect Cost Rate Audits: Audit Requirements Appendices 2, 6, and 7 48 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION APPENDIX1 ACRONYMS AND ABBREVIATIONS ACFR Annual Comprehensive Financial Report ALN Assistance Listing Number CFR Code of Federal Regulations DUNS Data Universal Numbering System ESBD Electronic State Business Daily F&A Facilities and Administration FMX Fiscal Management Division website GAA General Appropriations Act (state) GAAP Generally Accepted Accounting Principles GAGAS Generally Accepted Government Auditing Standards GASB Governmental. Accounting Standards Board IHE Institutions of Higher Education LBB Legislative Budget Board OMB Office of Management and Budget (federal) R&D Research and Development RFA Request for Applications SAM System for Award Management (federal) SAO State Auditor's Office SEFA Schedule of Expenditures Federal Awards SPA State Property Accounting SPD Statewide Procurement Division SPTR State Pass-Through Reconciliation SWCAP Statewide Cost Allocation Plan TAC Texas Administrative Code TxGMS Texas Grant Management Standards UGMS Uniform Grant Management Standards USAS Uniform Statewide Accounting System U.S.C. United States Code Texas Grant Management Standards - Version 2.0 49 STATEWIDE PROCUREMENT DIVISION 50 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION APPENDIX 2 GLOSSARY This Glossary provides definitions for terminology commonly used in state grant programs and the Chapter 783 Supplement for State Grant Programs. Other definitions may be found in state statutes, rules, or fiscal policies that apply more specifically to particular programs or activities. Because certain words found in state grant programs may have meanings that are the same, similar, or different to those found in federal grant programs, care should be taken to utilize the definition that is appropriate to the transaction. For definitions associated with terms found in federal grant programs, grant program managers must refer to 2 CFR Part 200 and any federal agency issued guidance. This Glossary does not provide guidance for terms found in federal grant programs. Acquisition Cost Appropriation The (total) cost of the asset including the cost to ready the asset Legislative authorization to expend public funds for a specific for its intended use. For example, acquisition cost for equipment, purpose. means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary Assignment apparatus necessary to make it usable for the purpose for which Transfer of contractual rights from one party to another party. it is acquired. Acquisition costs for software includes those development costs capitalized in accordance with generally Auditee accepted accounting principles (GAAP). Ancillary charges, such as Any non-state entity that expends state awards that must be taxes, duty, protective ini transit insurance, freight, andi installation audited under TxGMS. may be included in or excluded from the acquisition cost in accordance with the grantee's or sub-grantee's regular accounting Auditor practices. Auditor means an auditor who is a public accountant or a federal, state, local government, or Indian Tribe audit organization that Advance Payment meets the general standards specified for external auditors in A payment that a state agency or pass-through entity makes by generally accepted government auditing standards (GAGAS). any appropriate payment mechanism and payment method before The term auditor does not include internal auditors of nonprofit the local government disburses the funds for program purposes. organizations. Allocation Biennium The process of assigning a cost, or a group of costs, to one or For the State of Texas, a period of 24 consecutive months more cost objective(s), in reasonable proportion to the benefit beginning on September 1of each odd-numbered year. Example: provided or other equitable relationship. The process may entail September 1, 2025, through August 31, 2027. assigning a cost(s) directly to a final cost objective or through one or more intermediate cost objectives. Budget The financial plan for the project or program that the: state agency Annual Comprehensive Financial Report (ACFR) or pass-through entity approves during the award process or in A statewide financial report that encompasses all funds and subsequent amendments to the award. It may include the State component units of the State of Texas, prepared in conformance and non-state share or only the state share, as determined by the with Generally Accepted Accounting Principles (GAAP) and state agency or pass-through entity. Governmental Accounting Standards Board (GASB) requirements. Formerly known as Comprehensive Annual Financial Report Capital Asset (CAFR). Ap possession of the State that has an estimated useful life of more than one year. Capital assets may or may not be capitalized for Application financial reporting purposes. The document(s) submitted in response to a Request for Applications or other notice of funding opportunity for financial Capital Expenditure assistance. Expenditures to acquire capital assets or expenditures to make additions, improvements, modifications, replacements, Texas Grant Management Standards - Version 2.0 51 STATEWIDE PROCUREMENT DIVISION rearrangements, reinstallations, renovations, or alterations to Contractor capital assets that materially increase their value or useful life. An entity that receives a contract. Central Service Cost Allocation Plan Controlled Asset The documentation identifying, accumulating, and allocating or An agency asset the State has determined as high loss risk to be developing billing rates based on the allowable costs of services secured and tracked because of the nature of the possession. provided by a state, local government, or Indian Tribe to its The term does not include a capitalized asset, real property, an departments and agencies on a centralized basis. The costs of improvement to real property, or infrastructure. If the controlled these services may be allocated or billed to users. asset is required to be reported to the SPA system, additional information may be found in the SPAI Process User's Guide located Closeout on the Comptroller's FMX website. The process by which the awarding agency or pass-through entity determines that all applicable administrative actions and Corrective Action all required work of the award have been completed and takes Action taken by the auditee that: actions as described in Texas Grant Management Standards. Final activity under contract management to ensure all deliverable, 1) Corrects identified deficiencies; payment and capital equipment disposition activities have been (2) Produces recommended improvements; or appropriately completed. In: some grant opportunities the actions (3) Demonstrates that audit findings are either invalid or do not associated with a Closeout all occur at the same time. However, warrant auditee action. there are other grant opportunities where the actions associated with Closeout may occur at different times. Sometimes the fiscal Cost Allocation Plan actions and the performance actions may reach Closeout years A central service or public assistance cost allocation plan. apart to achieve program goals. Cost Objective Cluster of Programs A program, function, activity, award, organizational subdivision, A grouping of closely related programs that share common contract, or work unit for which cost data are desired and for compliance requirements. The types of clusters of programs which provision is made to accumulate and measure the cost of are research and development, student financial aid, and other processes, products, jobs, and capital projects. A cost objective clusters. may be a major function oft the grantee or sub-grantee, a particular service or project, a state award, ors an indirect cost activity. See Code of Federal Regulations (CFR) also Final Cost Objective and Intermediate Cost Objective. A codification of the federal rules that have been previously published in the Federal Register. The CFR is divided into 50 titles Cost Sharing that cover broad areas subject to federal regulation. The portion of project costs contributed by the grantee (unless otherwise authorized by state statute). Computing Devices Machines that acquire, store, analyze, process, and publish Data Universal Numbering System (DUNS) data and other information electronically, including accessories A system that assigns a unique nine-digit identification number, (or peripherals") for printing, transmitting and receiving, or provided by Dun & Bradstreet (D&B). storing electronic information. See also Supplies and Information Technology Systems. Disallowed costs Charges to a state award that the state agency or pass-through Continuation Funding entity determines to be unallowable, in accordance with the The second or subsequent budget period within an identified applicable statutes, regulations, or the terms and conditions of period of performance. the state award. Contract ECA Assistance Listings The legal instrument used to enter into a procurement relationship A compilation ofi federal programs, projects, services and activities with a contractor (e.g., private sector vendor, public sector entity) providing assistance or benefits to the American public. Ito contains to acquire goods and services that are needed to carry out the financial and nonfinancial assistance programs administered by project or program under a state grant. 52 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION various federal government agencies. The ECA Assistance Listings (i) Services performed by employees, contractors, sub- are available online under the Assistance Listings at sam.gov. grantees, and other payees; and (ii) Programs for which no current: services or performance Enabling Legislation are required such as annuities, insurance claims, or Federal or State statute that gives entities the authority to other benefit payments. establish grant programs. This legislation usually includes the broad parameters that the entity shall followi in the implementation Final Cost Objective of the grant program. A cost objective that has allocated to it both direct and indirect costs and, in the grantee's or sub-grantee's accumulation system, Electronic State Business Daily (ESBD) is one of the final accumulation points, such as a particular award, An online directory, administered by SPD, that publishes internal project, or other direct activity of a grantee or sub- solicitations, contract awards, and grant opportunities for the grantee. See also Cost Objective and Intermediate Cost Objective. purpose of informing the public. Fiscal Year Equipment For the State of Texas, a period of 12 consecutive months Tangible personal property (including information technology beginning September 1 of each year and ending August 31 of the systems) having a useful life of more than one year and a per- next year. unit acquisition cost that equals or exceeds the lesser of the capitalization level established by the grantee or sub-grantee for FMX financial statement purposes, or $10,000. See also Capital Assets, The Comptroller's Fiscal Management Division website that assists Computing Devices, General Purpose Equipment, Information state agencies and institutions of higher education to efficiently Technology Systems, Special Purpose Equipment, and Supplies. and effectively manage their appropriations, financial reporting, purchase and travel expenditures, payrolls and personnel. Expenditures Charges made by a grantee or sub-grantee to a project or General Purpose Equipment program for which a state award was received. Equipment that is not limited to research, medical, scientific or (a) The charges may be reported on: a cash or accrual basis, asl long other technical activities. Examples include office equipment and as the methodology is disclosed and is consistently applied. furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, (b) For reports prepared on a cash basis, expenditures are the sum reproduction and printing equipment, and motor vehicles. See of also Equipment and Special Purpose Equipment. (1) Cash disbursements for direct charges for property and services; Generally Accepted Accounting Principles (GAAP) Conventions, rules and procedures that serve as the norm for the (2) The amount of indirect expense charged; fair presentation of financial statements. (3) The value oft third-party in-kind contributions applied; and (4) The amount of cash advance payments and payments made Generally Accepted Government Auditing Standards tos sub-grantees. (GAGAS) Generally accepted government auditing standards issued by the (c) For reports prepared on an accrual basis, expenditures are the Comptroller General of the United States, which apply to financial sum of audits. Also known as the Yellow Book. (1) Cash disbursements for direct charges for property and services; Governmental Accounting Standards Board (GASB) (2) The amount ofi indirect expense incurred; A component of the Financial Accounting Foundation (FAF) = a private sector, nonprofit organization. GASB is not a governmental (3) The value oft third-party in-kind contributions applied; and entity. GASB provides authoritative guidance on accounting (4) The net increase or decrease in the amounts owed by the and financial reporting for state and local governments. GASB grantee or sub-grantee for establishes generally accepted accounting principles (GAAP) for state and local governments, but has no enforcement authority. () Goods and other property received; Texas Grant Management Standards - Version 2.0 53 STATEWIDE PROCUREMENT DIVISION Grant Agreement Intangible Property A legal instrument of financial assistance between a state Property having no physical existence, such as trademarks, agency and a grantee or between a pass-through entity and a copyrights, data (including data licenses), websites, IP licenses, sub-grantee that is used to enter into a relationship the principal trade secrets, patents, patent applications, and property such as purpose of which is to transfer anything of value from the state loans, notes and other debt instruments, lease agreements, stock agency or pass-through entity to the grantee or sub-grantee to and other instruments of property ownership of either tangible carry out a public purpose authorized by a state law. or intangible property, such as intellectual property, software, or software subscriptions or licenses. Grantee Interagency Contract A non-state entity that receives a state award directly from a state Written understanding between two or more agencies as agency to carry out an activity under a state program. The term authorized by Chapter 771 of the Texas Government Code. grantee does not include sub-grantees. See also Non-state Entity. Interlocal Contract Grantor For Written understanding between local government entities, a local state grant programs, the entity providing financial assistance in the form of an award. Also referred to as the state agency. government entity and a federally recognized Indian Tribe, or a local government entity and a state agency of Texas or another state as authorized by Chapter 791 oft the Texas Government Code. Improper Payment For purposes of Chapter 791 of the Texas Government, a federally A payment that should not have been made or that was made in recognized Indian Tribe is listed by the United States Secretary of an incorrect amount (including overpayments and underpayments) the Interior under 25 U.S.C. Section 479a-1, whose reservation is under statutory, contractual, administrative, or other legally located within the boundaries of the State of Texas. applicable requirements. Includes any payment to an ineligible party, any payment for an Intermediate Cost Objective ineligible good or service, any duplicate payment, any payment A cost objective that is used to accumulate indirect costs or for a good or service not received (except for such payments service center costs that are subsequently allocated to one or where authorized by law), any payment that does not account for more indirect cost pools or final cost objectives. See also Cost credit for applicable discounts. Objective and Final Cost Objective. Indirect Costs Internal Controls Those costs incurred for a common or joint purpose benefitting A process, implemented by a grantee or sub-grantee, designed more than one cost objective, andi notr readily assignable tot the cost to provide reasonable assurance regarding the achievement of objectives specifically benefitted, without effort disproportionate objectives in the following categories: to the results achieved. It may be necessary to establish multiple pools ofi indirect costs to facilitate equitable distribution ofi indirect (a) Effectiveness and efficiency of operations; expenses to the cost objectives served. Indirect cost pools must be (b) Reliability of reporting for internal and external use; and distributed to benefitted cost objectives on basis that will produce (c) Compliance with applicable laws and regulations. an equitable result in consideration of relative benefits derived. For Institutions of Higher Education (IHE), the term facilities and Internal Control Over Compliance Requirements for administrative (F & A) cost is often used to refer to indirect costs. State Awards A process mplemented by a grantee or sub-grantee designed to Indirect Cost Rate Proposal provide reasonable assurance regarding the achievement of the The documentation prepared by a grantee to substantiate its following objectives for state awards: request to establish an indirect cost rate. (a) Transactions are properly recorded and accounted for, in order to Information Technology Systems (1) Permit the preparation of reliable financial statements and Computing devices, ancillary equipment, software, firmware, and state reports; related procedures, services (including support services), and (2) Maintain accountability over assets; and resources. See also Computing Devices and Equipment. (3) Demonstrate compliance with statutes, regulations, and the terms and conditions of the state award; 54 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION (b) Transactions are executed in compliance with (ç) Uses net proceeds to maintain, improve, or expand the orga- nization's operations; and (1) Statutes, regulations, and the terms and conditions of the state award that could have a direct and material effect on (d) Is not an IHE. a state program; and Obligations (2) Any other statutes and regulations that are identified in the When used in connection with a non-state entity's utilization compliance supplement; and of funds under a state award, orders placed for property and (c) Funds, property, and other assets are safeguarded against loss services, contracts and subawards made, and similar transactions from unauthorized use or disposition. during a given period that require payment by the non-state entity during the same or a future period. Legislative Budget Board (LBB) The permanent joint committee of the Texas Legislature that Participant develops budget and policy recommendations for legislative Generally, an individual participating in or attending program appropriations for all agencies of state government. The activities under a state award, such as trainings or conferences, LBB completes fiscal analyses for proposed legislation and but who is not responsible for implementation of the state award. conducts evaluations and reviews for the purpose of identifying Individuals committing effort to the development or delivery of and recommending changes that improve the efficiency and program activities under a state award (such as consultants, performance of state and local operations and finances. project personnel, or staff members of a grantee or sub-grantee) are not participants. Examples of participants may include Local Government community members participating in a community outreach Ar municipality, county, or other political subdivision of the state, as program, members of the public whose perspectives or input are those terms are used in Government Code, Chapter 783. Does not sought as part of a program, students, or conference attendees. include a school district or other special-purpose district. Participant Support Costs Major Program Direct costs that support participants and their involvement in A: state program determined by the auditor to be a major program a state award, such as stipends, subsistence allowances, travel in accordance with TxGMS or a program identified as a major allowances, registration fees, temporary dependent care, and per program by a state agency or pass-through entity in accordance diem paid directly to or on behalf of participants. with TXGMS. Pass-through entity Management Decision A grantee or subgrantee that provides a subaward to a sub- The evaluation by the state agency or pass-through entity of the grantee (including lower tier sub-grantees) to carry out part of a audit findings and corrective action plan and the issuance of a state program. The authority of the pass-through entity under this written decision to the auditee as to what corrective action is part flows through the subaward agreement between the pass- necessary. through entity and sub-grantee. Non-state Entity Performance Goal A1 federal government, local government, Indian Tribe, institutions An measurable target level of performance expressed as a tangible, of higher education (IHE), nonprofit organization, or for-profit measurable objective, against which actual achievement can be entity (if permitted by state law and the state award) that carries compared, including a goal expressed as a quantitative standard, out a state award as a grantee or sub-grantee. value, or rate. In some instances (for example, discretionary research awards), this may be limited to the requirement to submit Nonprofit Organization technical performance reports (to be evaluated in accordance Any organization that with agency policy). (a) Is operated primarily for scientific, educational, service, Period of Performance charitable, or similar purposes in the public interest; The time during which the non-state entity may incur new (b) Is not organized primarily for profit; obligations to carry out the work authorized under the state award. Texas Grant Management Standards - Version 2.0 55 STATEWIDE PROCUREMENT DIVISION Personal Property Real Property Property other than real property. May be tangible or intangible. Land, including land mprovements, structures and appurtenances thereto, and legal interests in land, including fee interest, licenses, Prior Approval rights of way, and easements. Real property excludes moveable The written approval obtained in advance by an authorized machinery and equipment. official of a state agency or pass-through entity of certain costs or programmatic decisions. Request for Applications (RFA) A written solicitation announcement requesting the submission of Project Cost applications for funding opportunities. Total allowable costs incurred under a state award and all required cost sharing and voluntary committed cost sharing, Research and Development including third-party contributions Basica and applied research activities and all development activities performed by grantee and sub-grantee. The term research also Property includes activities involving the training of individuals in research Real property or personal property. techniques where such activities use the same facilities as other research and development activities and where such activities are Questioned Costs; Known Questioned Cost; Likely not included in the instruction function. Questioned Cost "Research" is the systematic study directed toward fuller scientific (a) An amount, expended or received from a state award, that in toletgeoruncestamdingtinesubecdsude. Development" the auditor's judgment is the systematic use of knowledge and understanding gained from research directed toward to produce useful materials, ( Is noncompliant or suspected noncompliant with state devices, systems, or methods, including designing and developing statutes, regulations, or the terms and conditions of the prototypes and processes. state award; () At the time of the audit, lacked adequate documentation Schedule of Expenditures of Federal Awards (SEFA) to: support compliance; or Used to report the federal financial assistance and federal cost- (i)Appeared unreasonable and did not reflect the actions a reimbursement contracts that non-federal entities receive directly prudent person would take in the circumstances. from federal agencies or indirectly from pass-through entities. (b) The questioned cost under (a)li) is calculated as if the por- Each agency that expends federal awards is required to submit tion of a transaction that lacked adequate documentation the SEFA to the Comptroller either by hard copy or through the were confirmed noncompliant. SEFA web application. c) There is no questioned cost solely because of Statewide Cost Allocation Plan (SWCAP) Deficiencies in internal control; or Prepared by the Governor's Office each fiscal year. Identifies () Noncompliance with the reporting type of compliance the costs incurred for the provision of central administrative and requirement if this noncompliance does not affect the support activities (central services such as accounting and payroll) amount expended or received from the state award. and allocates those costs to the agencies receiving the centralized (d) Known questioned cost means a questioned cost: specifically services. identified by the auditor. Known questioned costs are a sub- set of likely questioned costs. Single Audit (e) Likely questioned cost means the auditor's best estimate of With amendment in 1996, provides audit requirements for entities total questioned costs, not just the known questioned costs. that receive federal financial assistance above a designated Likely questioned costs are developed by extrapolating from monetary threshold. The annual audit reduces the audit burden audit evidence obtained, for example, by projecting known for non-federal entities in that one audit is conducted instead of questioned costs identified in an audit sample to the entire multiple audits of individual programs. population from which the sample was drawn. In evaluating the effect of questioned costs on the opinion on compliance, Special Purpose Equipment the auditor considers the likely questioned costs, notj just the Equipment that is used only for research, medical, scientific, or known questioned costs. other similar technical activities. Examples of special purpose equipment include microscopes, x-ray machines, surgical 56 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION instruments, spectrometers, and associated software. See also Texas Acquisition Threshold Equipment and General Purpose Equipment. The same dollar amount as the federal Simplified Acquisition Threshold including any adjustments to the federal Simplified State Acquisition Threshold that may occur after the publication date The State of Texas. of TxGMS. The dollar amount associated with federal Simplified Acquisition Threshold is determined in accordance with 48 CFR State Agency Part 2, Subpart 2.1. As of the publication of Version 2.0 of TXGMS, As defined in Chapter 783 of the Government Code. In TxGMS, the federal Simplified Acquisition Threshold is $250,000. generally refers to the agency that provides a state award directly to a grantee unless the context indicates otherwise. See also State Termination Award and Grantee. The action a state agency, pass-through entity, or grantee takes to discontinue a state award, in whole. or in part at any time before State Award the planned end date of the period of performance. State award has the meaning, depending on the context, in either paragraph (1) or (2) of this section: Third-Party In-Kind Contributions The value of non-cash contributions (meaning property or services) (1) The state financial assistance that a non-state entity that receives directly from a state agency or indirectly from a pass-through entity. (1) benefit a project or program funded by state award; and (2) The grant agreement. (2) are contributed by non-state third parties, without charge, to a grantee or sub-grantee under a state award. State Share The portion of the total project costs that are paid by state funds Unliquidated Obligations or in-kind assistance. Financial obligations incurred by the grantee or sub-grantee but not paid (liquidated) for financial reports prepared on a cash State Pass-Through Reporting (SPTR) basis. For reports prepared on an expenditure basis, these are The web application used to submit the State Grant Pass-Through obligations incurred by the grantee or sub-grantee for which Schedule and report: state grant money passed between agencies. expenditures have not been recorded. SPTR is available on the Comptroller's website. Unobligated Balance Subaward The amount of funds under a state award that the grantee or An award provided by a pass-through entity to a sub-grantee for sub-grantee has not obligated. The amount is computed by the sub-grantee to carry out part of a state award received by the subtracting the cumulative amount of the grantee's or sub- pass-through entity. It does not include payments to a contractor, grantee's unliquidated obligations and expenditures of funds beneficiary, or participant. under the state award from the cumulative amount of the funds that the state agency or pass-through entity authorized the Sub-grantee grantee or sub-grantee to obligate. A non-state entity that receives a subaward from a pass-through entity to contribute to the goals and objectives of the project by Voluntary Committed Cost Sharing carrying out part of a state program. The term sub-grantee does Cost sharing specifically pledged voluntarily in the proposal's not include a beneficiary or participant. A sub-grantee may also budget or the state award on the part of the grantee or sub- be a grantee of other state awards directly from a state agency. A grantee that becomes a binding requirement of the state award. sub-grantee may also be referred to as a subrecipient. Supply All tangible personal property other than those described in Equipment. A computing device is a supply if the acquisition cost is below the lesser of the capitalization level established by the grantee or sub-grantee for financial statement purposes or $10,000, regardless of the length of its useful life. See also Computing Devices and Equipment. Texas Grant Management Standards - Version 2.0 57 STATEWIDE PROCUREMENT DIVISION 58 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION APPENDIX 3 ADDITIONAL RESOURCES STATE RESOURCES Comptroller's Fiscal Management Website (FMX): mps/mcaleasgorimy Electronic State Business Daily: pisatbwmeN4 General Appropriations Act: tp/www.bbstate.kusbudgetaspx LBB Contracts Database: http:/www.lbb: state.t tx.us/Contract Reporting.aspx State of Texas Procurement and Contract Management Guide: ntpsy/comptrolerte.aowpurhasinoorourement-contractpne Texas Administrative Code: ntps/wwwsostevascovlerelndershtml Texas.gov eGrants: tbs/apsleascoutosneranssarnan TxGMS: ntpsy/comptrolerterasgowpuchasnagnggrant-managementy FEDERAL RESOURCES ECA Assistance Listings: itpsylecastale.govlowoganratona-undingappMnegrantasistance-listings Code of Federal Regulations: htps-/www.ecf:gov. System for Award Management: ntp/wwwsam.gow5AW Uniform Guidance: pS/wgomowappolectonct202 Uniform Guidance Training Materials: htps/Icfo.govlgrants Texas Grant Management Standards - Version 2.0 59 STATEWIDE PROCUREMENT DIVISION 60 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards Version 2.0 61 STATEWIDE PROCUREMENT DIVISION 62 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 63 STATEWIDE PROCUREMENT DIVISION 64 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION APPENDIX 6 UNIFORM ASSURANCES BY LOCAL GOVERNMENTS In accordance with Section 783.005 of the Texas Government Code, this document identifies the Uniform Assurances that a state agency must include in its grant agreements and procurement contracts with local governments. The wording of the Uniform Assurance must substantially conform to the Standard Text. (Alternate versions of the Standard Text for certain Assurances are provided.) It is expected that the following terms will be revised by the state agency as appropriate for conformity with the applicable transaction documents: Agency, Respondent, Response, and Solicitation. General guidance is provided along with examples of supplemental text that routinely accompany the required clause. Any additional text included by the state agency must not conflict with or weaken a Uniform Assurance. It is recommended that grant program managers seek assistance from agency legal counsel prior to modifying the Standard Text as slight variations may result in the state agency's non- compliance with applicable statutes. Assurance Standard Text Guidance Byrd Anti- Respondent certifies that no federal appropriated funds have APPLICABILITY: Clause applies to grant agreements and Lobbying been paid or will be paid to any person or organization for procurement contracts exceeding $100,000 that are Amendment influencing or attempting to influence an officer or employee financed from federal funds. ofa any agency, a member of Congress, an officer or employee member NOTE: Unless otherwise directed by the federal the of Congress, or an employee of a of Congress on agency, its behalf to obtain, extend, or modify this contract or grant. OMB prescribed SF-LLL is the standard disclosure reporting If non-federal funds are used by Respondent to conduct form for lobbying paid for with non-federal funds. such lobbying activities, Respondent shall promptly file the 2 CFR Part 200 Appendix II (Contract Provisions for Non- prescribed disclosure form. In accordance with 31 U.S.C. Federal Entity Contracts Under Federal Awards)-- S 1352(b)(5), Respondent acknowledges and agrees that it is responsible for ensuring that each subrecipient and In addition to other provisions required by the federal subcontractor certifies its compliance with the expenditure agency or the non-federal entity, all contracts made by the prohibition and the declaration requirement. non-federal entity under the federal award must contain provisions covering the following, as applicable: Or Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)- Other text required by the federal Contractors that apply or bid for an award exceeding agency. $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tiert to tier up to the non-federal award. Legal Authority: 2 CFR Part 200 Appendix II. Texas Grant Management Standards = Version 2.0 65 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Child Support Respondent represents and warrants that it will include APPLICABILITY: Clause applies to grant agreements and Obligation the following clause in the award documents for every procurement contracts that are financed from state ort federal subaward and subcontract andy willr require: subrecipients and funds. contractors to certify accordingly: "Under Section 231.006 oft the Family Code, the vendor or applicant certifies that the NOTE: Pursuant to Sections 231.006(a) and 231.302(c/(3) individual or business entity named in this contract, bid or of the Texas Family Code, this certification applies to lower tier transactions. application is not ineligible to receive the specified grant, loan, or payment anda acknowledgest that this contract may be Section 231.006(d) of the Texas Family Code mandates the terminated and payment may be withheld ifi this certification use of statutorily specified text. Section 231.006() of the isi inaccurate. A bid or an application for a contract, grant, or Texas Family Code provides that "Astate agency may accept loan paidf from state funds must include the name and social a bid that does not include the required information if the security number oft the individual or sole proprietor and each state agency collects the information before the contract, partner, shareholder, or owner with an ownership interest of grant, or loan is executed." atl least 25 percent of the business entity submitting the bid ora application." Section 231.006(a) of the Texas Family Code provides that a child support obligor who is more than 30 days delinquent in paying child support and a business entity in which the obligor is a sole proprietor, partner, shareholder, or owner with an ownershipi interest ofa at least 25 percenti is note eligible to (1) receive payments from state funds under a contract to provide property, materials, or service; or (2) receive a state- funded grant or loan. Supplemental text to the required clause may include the following: FEDERAL PRIVACY ACT NOTICE: This notice is given pursuant to the Federal Privacy Act. Disclosure of your Social Security Number (SSN) is required under Section 231.006(c) and Section 231.302(c/(2) of the Texas Family Code. The Social Security number will be used to identify persons that may owe child support and will be kept confidential to the fullest extent allowed under Section 231.302(e) of the Texas Family Code. Legal Authority: TEX. FAM. CODE SS 231.006, 231.302. 66 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Clean Air Act and Respondent represents and warrants that it will comply APPLICABILITY: Clause applies to grant agreements and Federal Water with all applicable standards, orders or regulations issued procurement contracts exceeding $150,000 financed from Pollution Control pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and federal funds. Act the Federal Water Pollution Control Act as amended (33 2 CFR Part 200 Appendix II (Contract Provisions for Non- U.S.C. 1251-1387). Federal Entity Contracts Under Federal Awards)-- Or In addition to other provisions required by the federal Other text specified by the federal agency or the non-federal entity, all contracts made by the agency. non-federal entity under the federal award must contain provisions covering the following, as applicable: (G) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251- 1387), as amended-Contracts and subgrants of amounts ine eeasaisisoOmustenain a provision that requires the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387). Violations must be reported to the federal agency andi the Regional Office of the Environmental Protection Agency (EPA). Legal Authority: 2 CFR Part 200 Appendix II. Compliance With Respondent represents and warrants that it will comply, APPLICABILITY: Clause applies to grant agreements and Laws, Rules, and and assure the compliance of all its subrecipients and procurement contracts financed from federal grant funds. Requirements contractors, with all applicable federal and state laws, rules, regulations, and policies in effect or hereafter established. Legal Authority: 2 CFR SS 200.300, 200.302, 200.303, 200.318. In addition, Respondent represents and warrants that it will comply with all requirements imposed by the awarding agency concerning special requirements of law, program requirements, and other administrative requirements. In instances where multiple requirements apply tol Respondent, the more restrictive requirement applies. Contract Respondent represents and warrants that it will maintain APPLICABILITY: Clause applies to procurement contracts Oversight oversight to ensure that contractors perform in accordance that are financed from state or federal funds. with the terms, conditions, and specifications of their contracts or purchase orders. Legal Authority: 2 CFR S 200.318(b); TEX. GOVT CODE S 783.005. Texas Grant Management Standards Version 2.0 67 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Contract Work Respondent represents and warrants that it will comply with APPLICABILITY: Clause applies to procurement contracts Hours and Safety the requirements of the Contract Work Hours and Safety exceeding $100,000 that are financed from federal funds Standards Act Standards Act (40 U.S.C. 3701-3708). and involve the employment of mechanics or laborers. Or 2 CFR Part 200 Appendix II (Contract Provisions for Non- Federal Entity Contracts Under Federal Awards)- Other text specified by the federal agency. In addition to other provisions required by the federal agency or the non-federal entity, all contracts made by the non-federal entity under the federal award must contain provisions covering thet following, as applicable: (E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFRF Part5). Under 40 U.S.C.3702 oft the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week isp permissible provided that the workeri is compensated ata a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of4 40 hoursi in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions that are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission ofi intelligence. Legal Authority: 2 CFR Part 200 Appendix II. Cybersecurity Respondent represents and warrants its compliance with APPLICABILITY: Clause applies to grant agreements and Training Program Section 2054.5191 of the Texas Government Code relating procurement contracts that are financedi from state ort federal to the cybersecurity training program for local government funds. (Local Government employees who have access to a local government computer Legal Authority: TEX. GOVT CODE S 2054.5191. System) system or database. Cybersecurity If Respondent has access to any state computer system or APPLICABILITY: Clause applies to grant agreements and Training Program database, Respondent shall complete cybersecurity training procurement contracts thata aret financedi from: state orf federal and verify completion of the training program to the Agency funds. (State pursuant to and in accordance with Section 2054.5192 of Contractor) the Government Code. Legal Authority: TEX. GOVTC CODE S 2054.5192. 68 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Davis-Bacon Act Respondent represents and warrants that it will comply with APPLICABILITY: Clause applies to certain construction and the Copeland the requirements of the Davis-Bacon Act (40 U.S.C. 3141- contracts financed from federal funds. Act 3144, and 3146-3148) as supplemented by Department 2 CFR Part 200 Appendix II (Contract Provisions for Non- of Labor regulations (29 CFR Part 5, "Labor Standards Federal Entity Contracts Under Federal Awards)-- Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction") and the Copeland Act In addition to other provisions required by the federal (40 U.S.C. $276c and 18 U.S.C. $874). agency or the non-federal entity, all contracts made by the Or non-federal entity under the federal award must contain provisions covering the following, as applicable: Other text specified by the federal (D) Davis-Bacon Act, as amended (40 U.S.C. 3141- agency. 3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, "Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction"). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal agency. The contracts must also include a provision for compliance with the Copeland Anti-Kickback" Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, "Contractors and Subcontractors: on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must reportalls suspected or reported violations to the federal agency. Legal Authority: 2 CFR Part 200 Appendix II. Texas Grant Management Standards - Version 2.0 69 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Debarment and Respondent certifies that it and its principals are not APPLICABILITY: Clause applies to grant agreements and Suspension suspended or debarred from doing business with the state or procurement contracts that are financed from state orf federal federal government as listed on the State of Texas Debarred funds. Vendor List maintained by the Texas Comptroller of Public Accounts and the System for Award Management (SAM) 2 CFR Part 200 Appendix II (Contract Provisions for Non- Federal Entity Contracts Under Federal maintained by the General Services Administration. Awards)-- Or In addition to other provisions required by the federal agency or the non-federal entity, all contracts made by the Other text specified by the federal agency, provided the non-federal entity under the federal award must contain certification also addresses the State ofTexas Debarred provisions covering the following, as applicable: Vendor List maintained by the Texas Comptroller of Public Accounts. (H) Debarment and Suspension (Executive Orders 12549 and 12689) - A contract award (see 2 CFR 180.220) must not be made to parties listed on the governmentwide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180lhatimplememtbeauthe Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), "Debarment and Suspension." SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Legal Authority: 2 CFR Part 200 Appendix Il; Executive Orders 12549 and 12689;TEX. GOVT CODE S 783.005. Debts and Respondent agreest thata any payments due undert the contract APPLICABILITY: Clause applies to grant agreements and Delinquencies org grants shall be applied towards any debt or delinquency that procurement contracts financed from state funds. is owed to the State of Texas. Legal Authority: TEX. GOVTCODE SS 403.055, 2252.903. Or Respondent agrees thata any payments due undert the contract org grants shall be directly appliedt towards eliminating any debt or delinquency it has to the State of Texas including, but not limited to, delinquent taxes, delinquent student loan payments, and delinquent child support. Or Respondent acknowledges and agrees that, to the extent Respondent owes any debt including, but not limited to, delinquent taxes, delinquent student loans, and child support owed to the State of Texas, any payments or other amounts Respondent is otherwise owed underthe contracto or grant may be applied toward any debt Respondent owes the State ofT Texas until the debt is paid in full. These provisions are effective at any time Respondent owes any such debt or delinquency. 70 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Disaster In accordance with 13 Texas Administrative Code S 6.94(a) APPLICABILITY: Clause required for any grant agreement or Recovery Plan (9), Respondent shall provide to Agency the descriptions of procurement contract with an entity that has custody of vital its business continuity and disaster recovery plans. state records. Or 13 TAC S 6.94(a)(9) states that each state agency must require all third-party custodians of records to provide the Upon request of Agency, Respondent shall provide the state agency with descriptions of their business continuity descriptions of its business continuity and disaster recovery and/or disaster recovery plans as regards to the protection plans. of the state agency's vital state records. Or The term "vital state record" is defined in Section Upon request of Agency, Respondent shall provide copies 441.180(13) of the Texas Government Code to mean any of its most recent business continuity and disaster recovery state record necessary to plans. (A) the resumption or continuation of state agency operations in an emergency or disaster; (B) the re-creation oft the legal and financial status of the agency; or (C) the protection and fulfillment of obligations to the people oft the state. Supplemental text to the required clause may provide additional details regarding the required business continuity and disaster recovery plans (e.g., title and date of plan). Legal Authority: TEX. GOVT CODE S 441.190; 13 TAC S 6.94(a)(9). Disclosure of Respondent represents and warrants its compliance with APPLICABILITY: Clause applies to grant agreements Violations of 2 CFR S 200.113, which requires the disclosure in writing financed from federal funds. Federal Criminal of violations of federal criminal law involving fraud, bribery, Law and gratuity and the reporting of certain civil, criminal, or 2CFR s 200.113 provides as follows: administrative proceedings to SAM. The non-federal entity or applicant for a federal award Or must disclose, in a timely manner, in writing to the federal agency or pass-through entity all violations of Other text specified by the federal federal criminal law involving fraud, bribery, or gratuity agency. violations potentially affecting the federal award. Non- federal entities that have received a federal award including the term and condition outlined in Appendix XII-Award Term and Condition for Recipient Integrity and Performance Matters are required to report certain civil, criminal, or administrative proceedings to SAM. Failure to make required disclosures can result in any of the remedies described in S 200.339 Remedies for noncompliance, including suspension or debarment. (See also 2 CFR Part 180, 31 U.S.C. 3321, and 41 U.S.C. 2313.) Legal Authority: 2 CFR S 200.113. Texas Grant Management Standards Version 2.0 71 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Disclosure of Inaccordancer with Section. 2254.033 ofthel Texas Government APPLICABILITY: Clause applies to procurement contracts Prior State Code, relating to consulting services, Respondent certifies for consulting services under Chapter 2254 of the Texas Employment thati it does note employ an individual who has been employed Government Code. by Agency or another agency at any time during the two years preceding the submission of the Response or, in the The term "consultant" is defined to be a person that provides alternative, Respondent has disclosed in its Response the orp proposes to provide a consultingservice. Thet termi includes following: (i) the nature of the previous employment with a political subdivision but does not include the federal Agency ort the other agency; (ii) the date the employment was government, a state agency, or a state governmental entity. terminated; and (ii) the annual rate of compensation for the TEX. GOVTCODE S: 2254.021. employment at thet time ofi its termination. Section 2254.034 of the Texas Government Code states the following: (a) A contract entered into in violation of Sections 2254.029 through 2254.031 is void. (b). A contract entered into with a private consultant who did not comply with Section 2254.033 is void. (c) Ifa contract is void undert this section, (1) the comptroller may not draw a warrant or transmit moneyt to satisfy an obligation underthe contract; and (2) a state agency may not make any payment under the contract with state or federal money or money held in or outside the state treasury. (d) This section applies to all consulting services contracts, including renewals, amendments, and extensions of consulting services contracts. Legal Authority: TEX. GOVT CODE S 2254.033. 72 Texas Grant Management Standards = Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Disclosure Respondent represents and warrants that it will comply with APPLICABILITY: Clause applies to grant agreements and Protections Section 2252.906 of the Texas Government Code relatingt to procurement contracts that arei financed from state ort federal for Certain disclosure protections for certain charitable organizations, funds. Charitable charitable trusts, and private foundations. Organizations, Section 2252.906(a) of the Texas Government Code states Charitable the following: Trusts, and Private Int this section, Foundations (1) "Charitable organization" means an organization that is exempt from federal income tax under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt organization in Section 501(c) of that code. The term does not include a property owners' or homeowners' association. (2) Grant-making organization" means an organization that makes grants to charitable organizations but is not a private foundation, private foundation trust, or split interest trust. (3) "Private foundation" has the meaning assigned by Section 509(a), Internal Revenue Code of 1986. (4) "Split interest trust" means an irrevocable trust in which thei income is first dispersed to the beneficiaries ofthet trust for a specified period and the remainder of the trust is donated to a designated charity. Legal Authority: TEX. GOVT CODE S 2252.906. Discrimination In accordance with Section 2105.004 of the Texas APPLICABILITY: Clause applies to grant agreements and Prohibited Government Code, Respondent represents and warrants that procurement contracts financed from block, grants. itwillr not use! block grant fundsi in a mannert that discriminates Legal Authority: TEX. GOVTO CODE S 2105.004. on the basis of race, color, national origin, sex, or religion. Dispute The dispute resolution process provided in Chapter 2009 APPLICABILITY: Clause applies to grant agreements and Resolution of the Texas Government Code is available to the parties to procurement contracts thata are financedi from state orf federal resolve any dispute arising under the agreement. funds. Legal Authority: TEX. GOVT CODE SS 791.015, 2009.002. Texas Grant Management Standards - Version 2.0 73 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Equal The Respondent hereby agrees that it will incorporate or APPLICABILITY: Clause applies to certain construction Employment cause to be incorporated into any contract for construction contracts financed from federal funds. Opportunity work, or modification thereof, as defined in the regulations of the Secretary of Labor at 41 CFR Chapter 60, which is 2 CFR Part 200 Appendix II (Contract Provisions for Non- paid for in whole or in part with funds obtained from the Federal Entity Contracts Under Federal Awards)- federal Government or borrowed on the credit of the federal In addition to other provisions required by the federal Government pursuant to a grant, contract, loan, insurance, agency or the non-federal entity, all contracts made by the org guarantee, or undertaken pursuant to any federal program non-federal entity under the federal award must contain involving such grant, contract, loan, insurance, or guarantee, provisions covering thet following, as applicable: thet following equal opportunity clause: (C) Equal Employment Opportunity. Except as otherwise During the performance of this contract, the Respondent provided under 41 CFR Part 60, all contracts that agrees as follows: meet the definition of "federally assisted construction (1) The Respondent will not discriminate against any contract" in 41 CFR Part 60-1.3 must include the equal employee ora applicant for employment because of race, opportunity clause provided under 41 CFR 60-1.4(b), color, religion, sex, sexual orientation, gender identity, in accordance with Executive Order 11246, "Equal or national origin. The Respondent will take affirmative Employment Opportunity" (30 FR 12319, 12935, 3 action to ensure that applicants are employed, and CFR Part, 1964-1965 Comp., p. 339), as amended that employees are treated during employment by Executive Order 11375, "Amending Executive Order without regard to their race, color, religion, sex, sexual 11246 Relating to Equal Employment Opportunity," orientation, gender identity, or national origin. Such and implementing regulations at 41 CFR Part 60, action shall include, but not be limited to the following: "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." Employment, upgrading, demotion, or transfer; Legal Authority: 2 CFR Part 200. Appendix II. recruitment or recruitment advertising; layoff or termination; rates ofp payorotherf forms of compensation; and selection for training, including apprenticeship. The Respondent agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions oft this nondiscrimination clause. (2) The Respondent will, in all solicitations or advertisements for employees placed! by or on behalf of the Respondent, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, genderi identity, or national origin. 74 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Equal (3) The Respondent will not discharge or any other manner Employment discriminate against any employee or applicant for Opportunity employment because such employee or applicant (continued) has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint such employee or applicant has inquired about, discussed, or disclosedt the compensation ofthe employee orapplicant or another employee or applicant. This provision shall not apply toi instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure isi in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the Respondent's legal duty to furnish information. (4). The Respondent will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives: of the Respondent's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (5) The Respondent will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (6) The Respondent will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. Texas Grant Management Standards - Version 2.0 75 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Equal (7) In the event of the Respondent's noncompliance with Employment the nondiscrimination clauses of this contract or with Opportunity any oft the: said rules, regulations, or orders, this contract (continued) may be canceled, terminated, or suspended in whole or in part and the Respondent may be declared ineligible for further Government contracts or federally assisted construction. contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, orb by rule, regulation, or order of the Secretary ofL Labor, or as otherwise provided by law. (8) The Respondent will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, SO that such provisions will be binding upon each subcontractor or vendor. The Respondent will take such action with respect to any subcontract or purchase order as the administering: agency may directa as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States. The Respondent further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided that if the Respondent SO participating is a state or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision ofsuch government that does not participate in work on or under the contract. 76 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Equal (9) The Respondent agrees that it will assist and Employment cooperate actively with the administering agency and Opportunity the Secretary of Labor in obtaining the compliance (continued) of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision ofsuch compliance, andt thati itwill otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance. The Respondent further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the! Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive Order. In addition, the Respondent agrees that ifi iti fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the Respondent under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings. Or Other text specified by the federal agency. Excluded Parties Respondent certifies that it is not listed in the prohibited APPLICABILITY: Clause applies as long as Executive Order vendors list authorized by Executive Order No. 13224, No. 13224 is in effect. "Blocking Property and! Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism", Executive Order 13224 (Blocking Property and Prohibiting published by the United States Department of the Treasury, Transactions with Persons Who Commit, Threaten to Commit, Office of Foreign Assets Control. or Support Terrorism), was issued by President George W. Bush on September 23, 2001, as a response to the attacks on September 11, 2001. Legal Authority: Executive Order No. 13224. Texas Grant Management Standards Version 2.0 77 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Executive Head Under Section 669.003 of the Texas Government Code, APPLICABILITY: Clause applies to grant agreements and ofa a State Agency Respondent certifies thati it does note employ, orhas disclosed procurement contracts thata are financed from: state ort federal Affirmation its employment of, any former executive head of the Agency. funds. Respondent must provide the following information in the Section 669.003 of the Texas Government Code states the Response. following: Name of Former Executive:, A state agency may not enter into a contract with the Name of State Agency: executive head of the state agency, with a person who ata any time duringt the foury years before the date of the contract was Date of Separation from State Agency: the executive head of the state agency, or with a person who employs a current orf former executive head of a state agency Position with Respondent: affected by this section, unless the governing body Date of Employment with Respondent: votes, in an open meeting, to approve the contract; and notifies the Legislative Budget Board, not later than the fifth Or day before the date oft the vote, of the terms of the proposed contract. Ina accordance with Section 669.003 ofthe Texas Government Code, relating to contracting with the executive head of Legal Authority: TEX. GOVT CODE SS 669.003. a state agency, Respondent certifies that it is not (1) the executive head of the Agency, (2) a person who at any time during the four years before the date of the contract or grant was the executive head of the Agency, or (3). a person who employs a current or former executive head of the Agency. Or Under Section 669.003 of the Texas Government Code, relating to contracting with an executive head of a state agency, Respondent representst thatr no person who served as an executive of Agency, int the past four(4) years, wasi involved with orh has anyi interest in the contract or grant. IfRespondent employs or has used the services of a former executive of Agency, then Respondent shall provide the following information in the Response: name of the former executive, the name of the state agency, the date of separation from the state agency, the position held with Respondent, and the date of employment with Respondent. 78 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Federal Respondent represents and warrants that it will comply APPLICABILITY: Clause applies to certain procurement Solid Waste with the requirements of Section 6002 of the Solid Waste contracts financed from federal funds. Disposal Act Disposal Act, as amended by the Resource Conservation and Recovery Act. 2 CFR Part 200 Appendix II (Contract Provisions for Non- Federal Entity Contracts Under Federal Awards)- Or In addition to other provisions required by the federal Other text specified by the federal agency or the non-federal entity, all contracts made by the agency. non-federal entity under the federal award must contain provisions covering the following, as applicable: (J) See $200.323 Procurement of recovered materials. 2 CFR S 200.323 (Procurement of Recovered Materials) provides the following: A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services ina a mannertnatmaxmizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. Legal Authority: 2 CFR Part 200 Appendix II. Firearm Respondent certifies that it has not received a final judicial Legal Authority: TEX. GOVTCODE, Chapter: 2, Subchapter C. Suppressor determination finding it adopted a rule, order, ordinance, Policy or policy under which it enforces, or allows the enforcement of, a federal statute, order, rule, or regulation that purports to regulate a firearm suppressor in violation of Texas Government Code $2.102(a) in an action brought by the Attorney General under Texas Government Code $2.104. If Respondent is currently being sued under Texas Government Code $2.104 ori is sued undert this section at any point during the duration oft this grant, Respondent agrees toi immediately disclose the lawsuit andi its posture to the Agency. Texas Grant Management Standards - Version 2.0 79 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Former Agency Respondent represents and warrants that none of its APPLICABILITY: Clause applies to procurement contracts Employees employees including, but not limited to, those authorized to that are consulting services contracts under Chapter 2254 provideservices underthe contract, werelomeremployesot oft the Texas Government Code, if appropriated money will be the Agency during the twelve (12) month period immediately used to make payments under the contract. priort to the date ofe execution of the contract. The term consultant" is defined to be a person that provides Or orp proposes to provide a consultingservice. Thet term includes a political subdivision but does not include the federal In accordance with Section 2252.901 of the Texas government, a state agency, or a state governmental entity. Government Code, Respondent represents and warrants TEX. GOVTCODE S 2254.021. that none of its employees including, but not limited to, those authorized to provide services under the contract, Section 2252.901(a) of the Texas Government Code states were former employees of the Agency during the twelve (12) the following: month period immediately prior to the date of execution of the contract. A state agency may not enter into an employment contract, a professional services contract under Chapter 2254, or a consulting services contract under Chapter 2254 with a former or retired employee of the agency before the first anniversary oft the last date on which the individual was employed by the agency, if appropriated money will be used to make payments under the contract. This section does not prohibit an agency from entering into a professional services contract with a corporation, firm, or other business entity that employs a former or retired employee of the agency within one year oft the employee's leaving the agency, provided that the former or retired employee does notp perform services on projects for the corporation, firm, or other business entity that the employee worked on while employed by the agency. Legal Authority: TEX. GOVT CODE SS 2252.901. 80 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Funding Respondent understands that all obligations of Agency under APPLICABILITY: Clause must be included in any grant Limitation the contract or grant are subject to the availability of grant agreement or procurement contract with a term that crosses funds. The contract or grant is subject to termination or the biennium. cancellation, either in whole or in part, without penalty to Agency if such funds are not appropriated or become The Texas Constitution and the General Appropriations Act unavailable. prohibit an agency from incurring obligations in excess of amounts lawfully appropriated by the Texas Legislature Or over the course of a biennium. Therefore, any installment purchase, lease, or any other type of purchase that incurs The contract or, grant shall not be construed as creating a an obligation beyond the current appropriations is strictly debt on behalf of Agency in violation of Article Il, Section prohibited, unless such obligation is expressly conditioned 49a of the Texas Constitution. Respondent understands that continued upon legislative appropriation. For general all obligations of Agency undert the contract are: subject tot the information regarding the one exception to the prohibition availability of grant funds. againstincurring excess obligations, referto the Termination Or for Non-Appropriations, Excess Obligations Prohibited" Section of the State of Texas Procurement and Contract Respondentagreesthatnotlhingintnisgantwilbeinterpreted Management Guide. to create an obligation or liability of the Agency in excess of the funds delineated in this grant. Respondent agrees Legal Authority: TEX CONST Art III S 49a; TEX CONST Art VIII that funding for this grant is subject to the actual receipt S 6; General Appropriations Act, Art IX, S 6.03 (2024-2025 by the Agency of grant funds appropriated to the Agency. Biennium) Respondent agrees that the grant funds, if any, received from the Agency may be limited by the term of each state biennium and by specific appropriation authority to and the spendingauthority ofthe Agency forthep purpose ofthis grant. Respondent agrees that notwithstanding any other provision oft this grant, ift the Agency is not appropriated the funds ori if the Agency does not receive the appropriated funds for this grant program, or if the funds appropriated to the Agency for this grant program are required to be reallocated to fund other federal or state programs or purposes, the Agency is not liable to pay the Respondent any remaining balance on thisg grant. Governing Law This agreement shall be governed by and construed in APPLICABILITY: Clause required for procurement contracts and Venue accordance with the laws oft the State ofTexas, withoutr regard that are financed from state or federal funds. to the conflicts ofla law provisions. The venue of any suit arising under this agreement is fixed in any court of competent Legal Authority: TEX. GOVTCODE S 783.005. jurisdiction ofTravis County, Texas, unless the specific venue is otherwise identified in a statute that directly names or otherwise identifies ts applicability to the contracting state agency. Texas Grant Management Standards Version 2.0 81 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Indemnification RESPONDENT SHALL DEFEND, INDEMNIFY AND HOLD APPLICABILITY: Clause applies to grant agreements and (General) HARMLESS THE STATE OF TEXAS AND AGENCY, AND/OR procurement contracts that are financed from: state or federal ITS OFFICERS, AGENTS, EMPLOYEES, REPRESENTATIVES, funds. CONTRACTORS, ASSIGNEES, AND/OR DESIGNEES FROM ANY AND ALL LIABILITY, ACTIONS, CLAIMS, DEMANDS, OR NOTE: Depending on the transaction, the parties may also SUITS, AND ALL RELATED COSTS, ATTORNEY FEES, AND negotiate an additional indemnification clause tos specifically address intellectual property, engineering services, or EXPENSES ARISING OUT OF, OR RESULTING FROM ANY architectural services. ACTS OR OMISSIONS OF RESPONDENT OR ITS AGENTS, EMPLOYEES, SUBCONTRACTORS, ORDER FULFILLERS, OR Vendor created liability under a contract may pose a financial SUPPLIERS OF SUBCONTRACTORS IN THE EXECUTION OR risk to the State in violation oft the prohibition against Excess PERFORMANCE OF THE CONTRACT AND ANY PURCHASE Obligations. ORDERS ISSUED UNDER THE CONTRACT. THE DEFENSE SHALLI BE COORDINATED BY RESPONDENT WITH THE OFFICE Legal counsel should be sought prior to the agency agreeing OF THE TEXAS ATTORNEY GENERAL WHEN TEXAS STATE to a mutual indemnification or indemnification of another AGENCIES ARE NAMED DEFENDANTS IN ANY LAWSUIT entity as such an obligation may constitute a "debt" in AND RESPONDENT MAY NOT AGREE TO ANY SETTLEMENT violation of law. See Tex. Att'y Gen. Op. No. MW-475 (1982). WITHOUT FIRST OBTAINING THE CONCURRENCE FROM THE Astatute may expressly authorize the: state's indemnification OFFICE OF THE TEXAS ATTORNEY GENERAL. RESPONDENT of another entity. See TEX. GOVT CODE S 808.003. AND AGENCY AGREE TO FURNISH TIMELY WRITTEN NOTICE TO EACH OTHER OF ANY SUCH CLAIM. Supplemental text to the required clause may include the following: THIS PARAGRAPH IS NOT INTENDED TO AND SHALL NOT BE CONSTRUED TO REQUIRE RESPONDENT TO INDEMNIFYOR HOLD HARMLESS THE STATEOR. AGENCY FOR ANY CLAIMS OR LIABILITIES RESULTING FROM THE NEGLIGENT ACTS OR OMISSIONS OF AGENCY OR ITS EMPLOYEES. For the avoidance of doubt, Agency shall not indemnify Respondent or any other entity under the contract. Legal Authority: TEX CONST Art VIII S 6; TEX. GOVT CODE S 2254.0031. Law Enforcement If Respondent is a law enforcement agency regulated by APPLICABILITY: Clause applies to grant agreements Agency Grant Chapter 1701 of the Texas Occupations Code, Respondent financed from appropriated funds. Restriction represents and warrants that it will not use appropriated money unless the law enforcement agency is in compliance Legal Authority: General Appropriations Act, Art IX, S 4.01 with all rules adopted by the Texas Commission on Law (2024-2025 Biennium). Enforcement (TCOLE), or TCOLE certifies that it is in the process of achieving compliance with such rules. 82 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Legal Authority Respondent represents that it possesses legal authority to APPLICABILITY: Clause applies to grant agreements that are apply for the grant. A resolution, motion or similar action financed from state or federal funds. has been duly: adopted or passed as an official act of the Respondent's governing body, authorizing the filing of the Legal Authority: TEX. GOVT CODE S 783.005. Response, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative, or the designee of Respondent to act in connection with the Response and to provide such additional information as may be required. Limitations Respondent acknowledges and agrees that appropriated APPLICABILITY: Clause applies to grant agreements on Grants to funds may not be expended in the form of a grant to, or financed from appropriated funds. Units ofl Local contract with, a unit of local government unless the terms of Government the grant or contracti require thatthef funds received underthe The term "unit of local government" is defined in General grant or contract will be expended subject to the limitations Appropriations Act, Art IX, S 4.04 (2024-2025 Biennium) and reporting requirements similar to those provided by the to be following: a council of governments, a region planning commission, ora a Parts 2 and: 3 ofthel Texas General Appropriations Act, Art. IX, similar regional planning agency created under Chapter 391 of the Local Government Code; exceptt there is no requirement for increased salaries for local government employees; a local workforce development board; or Sections 556.004, 556.005, and 556.006 of the Texas a community center as defined by Health and Safety Code S Government Code; and 534.001(b). Sections 2113.012 and 2113.101 of the Texas Government Legal Authority: General Appropriations Act, Art IX, S 4.04 Code. (2024-2025 Biennium). Lobbying Respondent represents and warrants thatAgency'sp payments APPLICABILITY: Clause applies to grant agreements and Expenditure to Respondent and Respondent's receipt of appropriated or procurement contractst thataret financedi from state orfederalf funds. Restriction other funds under the contract or grant are not prohibited by Sections 403.1067 or 556.0055 of the Texas Government Section 403.1067 of the Texas Government Code provides Code, which restrict lobbying expenditures. the following: (a). An organization, program, political subdivision, public institution of higher education, local community organization, or other entity receivingt funds or grants from the permanent funds in Section 403.105, 403.1055, 403.106, 403.1065, or 403.1066 mayr not use the funds org grants top pay: (1) lobbying expenses incurred by the recipient; (2) a person or entity that is required to register with the Texas Ethics Commission under Chapter 305, Government Code; (3) any partner, employee, employer, relative, contractor, consultant, or related entity of a person or entity described by Subdivision (2); or (4) a person or entity who has been hired to represent associations or other entities for the purpose of affecting the outcome of legislation, agency rules, ordinances, or other government policies. Texas Grant Management Standards = Version 2.0 83 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Lobbying Respondent represents and warrants thatA Agency'sp payments (b) Except as provided by this subsection, the persons or Expenditure to Respondent and Respondent's receipt of appropriated or entities described by Subsection (a) are not eligible Restriction othert funds under the contract or grant are not prohibited by to receive the money or participate either directly or (Continued) Sections 403.1067 or 556.0055 of the Texas Government indirectly ini the contracts, funds, or grants awarded in Code, which restrict lobbying expenditures. Section 403.105, 403.1055, 403.106, 403.1065, or 403.1066. A registrant under Chapter 305 is not ineligible underthis subsection ifther person is required tor register undert that chapter solely because they person, communicates directly with a member of the executive branch toi influence administrative action concerning a matter relating to the purchase of products or services by a state agency. (c) Grants or awards made under Section 403.105, 403.1055, 403.106, 403.1065, or 403.1066 maynot be conditioned on the enactment of legislation, agency rules, orl local ordinances. Section 556.0055 of the Texas Government Code provides the following: (a) A political subdivision or private entity that receives state funds may not use the funds to pay: (1) lobbying expenses incurred by the recipient of the funds; (2) a person or entity that is required to register with the Texas Ethics Commission under Chapter 305; (3) any partner, employee, employer, relative, contractor, consultant, or related entity of a person ore entity described by Subdivision (2); or (4) a person or entity that has been hired to represent associations or other entities for the purpose of affecting the outcome ofl legislation, agency rules, ordinances, or other government policies. (b). A political subdivision or private entity that violates Subsection (a) is not eligible to receive additional state funds. LegalA Authority: TEX. GOVT CODE SS 403.1067, 556.0055. No Conflicts Respondent represents and warrants its compliance with the APPLICABILITY: Clause applies to grant agreements of Interest federal agency's conflict of interest policies in accordance 2 financed from federal funds. (federal) CFR S 200.112. 2CFR S 200.112 provides the following: Or Thet federal agency must establish conflict ofi interest policies for Other text specified by the federal federal awards. The non-federal entity must disclose in writing agency. any potential conflict of interest to the federal agency or pass- through entity in accordance with applicable federal agency policy. Legal Authority: 2 CFR S 200.112. 84 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance No Conflicts Respondent represents and warrants that performance APPLICABILITY: Clause applies to grant agreements and of Interest under the contract or grant will not constitute an actual procurement contracts thata aret financed from state or federal (state) or potential conflict of interest or reasonably create an funds. appearance of impropriety. Further, Respondent represents and warrants that in the administration of the grant, it will Legal Authority: TEX. GOVTCODE SS 2252.908, 2254.032; TEX LOCAL GOVT CODE Chapter 176; Tex. Gen. Op. comply with all conflict ofi interest prohibitions and disclosure Att'y No. JC-0484 (2002) (concluding that grants awarded by requirements required by applicable law, rules, and policies, including Chapter 176 of the Texas Local Government Code. state agencies are subject to the strict common-law rule If circumstances change during the course of the contract or prohibiting conflictofinterest): see also Tex. Att'y Gen. Op.N No. shall KP-0259 (2019) (determining that Section 2261.252(e) of grant, Respondent promptly notify Agency. the Texas Government Code does not abrogate the common- law conflict of interest doctrine for state agency purchase orders of $25,000 or less). No Waiver The Parties expressly agree. that no provision of the grant or APPLICABILITY: Clause applies to grant agreements and of Sovereign contract is in any way intended to constitute a waiver by the procurement contracts that arei financed from: state orf federal Immunity Agency ort the State of Texas of any immunities from suit or funds. from liability that the Agency ort the State of Texas may have by operation of law. Legal Authority: U.S. CONST. amend. XI. Open Meetings If the Respondent is a governmental entity, Respondent APPLICABILITY: Clause applies to grant agreements and represents and warrants its compliance with Chapter 551 procurement contractsi that are financed from state orf federal of the Texas Government Code, which requires all regular, funds. special or called meeting ofa a governmental body to be open to the public, except as otherwise provided by law. Legal Authority: TEX. GOVT CODE S 551.002. Political Polling Respondent represents and warrants thati it does not perform APPLICABILITY: The prohibition regarding political polling Prohibition political polling and acknowledges that appropriated funds does notapplyt toap poll conducted by an academic institution may not be granted to, or expended by, any entity that as a part of the institution's academic mission that is not performs political polling. conducted for the benefit of a particular candidate or party. General Appropriations Act, Art IX, S 4.03 (2024-2025 Biennium). Legal Authority: General Appropriations Act, Art IX, S 4.03 (2024-2025 Biennium). Public Respondent certifies that it has not received a final judicial APPLICABILITY: Applies to any grant made to a local entity Camping Ban determination finding it intentionally adopted or enforced with state funds. However, a local entity that has not violated a policy that prohibited or discouraged the enforcement of Section 364.002 may not be denied state funds, even if a public camping ban in an action. brought by the Attorney it is a part of another entity that is ineligible for funding. General under Local Government Code $364.003. If For example, a police department may be an eligible local Respondent is currently being sued under the provisions entity, even if it is part of a city that is ineligible. See Local of Local Government Code $364.003, or is sued under Government Code S 364.004(c) and 361.001(1). this section at any point during the duration of this grant, Legal Authority: Local Government Code, Chapter 364 Respondent must immediately disclose the lawsuit and its current posture to the Agency. Texas Grant Management Standards - Version 2.0 85 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Texas Public Information, documentation, and other materiali inc connection APPLICABILITY: Clause applies to grant agreements and Information Act with this Solicitation or any resulting contract or grant may be procurement contracts that are financed from state or federal subject to public disclosure pursuant to Chapter 552 of the funds. Texas Government Code (the "Public Information Act"). In accordance with Section 2252.907 of the Texas Government Supplemental text to the required clause may include the Code, Respondent is required to make any information following: created ore exchanged with the State pursuant to the contract Specific formats acceptable to the Agency include Word, or grant, and not otherwise excepted from disclosure under Excel, and PDF. the Texas Public Information Act, available in a format that is accessible by the public at no additional charge to the State. Supplemental text to the required clause may include details oft the agency's protocol for labeling confidential information Or and procedures for receipta and handling of publicinformation Respondent understands that Agency will comply with the requests. Texas Public Information Act (Chapter 552 of the Texas Legal Authority: TEX. GOVT CODE Chapter 552; TEX. GOVT Government Code) as interpreted by judicial rulings and CODE S 2252.907. opinions of the Attorney General of the State of Texas. Information, documentation, and other material in connection with this Solicitation or any resulting contract or grant may be subject to public disclosure pursuant to the Texas Public Information Act. In accordance with Section 2252.907 of the Texas Government Code, Respondent is required to make any information created or exchanged with the State pursuant to the contract, and noto otherwise excepted from disclosure under the Texas Public Information Act, available in a format that is accessible by the public at no additional charge to the State. Reporting Respondent represents and warrants that it will submit APPLICABILITY: Clause applies to grant agreements that are Compliance timely, complete, and accurate reports in accordance with financed from state or federal funds. the grant and maintain appropriate backup documentation to: support the reports. Legal Authority: 2 CFR SS 200.327-.329; TEX. GOVT CODE S 783.005. Records Respondent represents and warrants its compliance with the APPLICABILITY: Clause applies to grant agreements and Retention records retention requirements of 2 CFR S 200.333. Agency procurement contracts financed from federal funds. (federal) reservest the rightto direct al Respondent to retain documents for a longer period of time or transfer certain records to Legal Authority: 2 CFR S 200.334. Agency custody when iti is determined the records possess longer term retention value. Respondent must include the substance oft this clause in all subawards and subcontracts. Records Respondent shall maintain and retain all records relating APPLICABILITY: Clause applies to grant agreements Retention to the performance of the grant including supporting financed from state funds. (state-grant) fiscal documents adequate to ensure that claims for grant NOTE: The records retention time period be modified as funds are in accordance with applicable State of Texas may necessary to be consistent with the state approved requirements. These records will be maintained and retained agency's by Respondent for a period of four (4) years after the grant records retention schedule. expiration date or until all audit, claim, and litigation matters Legal Authority: TEX. CIV. PRAC. & REM. CODE S 16.051; are resolved, whichever is later. Agency reserves the right to TEX. GOVTCODE S 441.185. direct a Respondent to retain documents for a longer period of time or transfer certain records to Agency custody when it is determined the records possess longer term retention value. Respondent must include the substance of this clause in all subawards and subcontracts. 86 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Records Forthe time periods specifiedi in Section 441.1855 ofthel Texas APPLICABILITY: Clause applies to procurement contracts Retention Government Code, Respondent shall maintain and retain all financed from state grant funds. (state- records relating to the performance of the contract including procurement) supporting fiscal documents adequate to ensure that claims Section 441.1855 of the Texas Government Code provides: for contract funds are in accordance with applicable State of (a) Notwithstanding Section 441.185 or 441.187, a state Texas requirements. Respondent must include the substance agency ofthis clause in all subcontracts. (1) shall retain in its records each contract entered into by the state agency and all contract solicitation documents related to the contract; and (2) may destroy the contract and documents only after the: seventh anniversary of the date: (A) the contract is completed or expires; or (B) all issues that arise from any litigation, claim, negotiation, audit, open records request, administrative review, or other action involving the contract or documents are resolved. (b) A contract solicitation document that is an electronic document must be retained under Subsection (a) in the document's electronic form. A state agency may print and retain the document in paper form only ift the agency provides for the preservation, examination, and use of the electronic form of the document in accordance with Subsection (a), including any formatting or formulas that are part of the electronic format of the document. (c) Int this section: (1) "Contract solicitation document" includes any document, whether in paper form or electronic form, that is used by a state agency to evaluate responses to a competitive solicitation for a contract issued by the agency. (2) 'Electronic document" means: (A) information that is created, generated, sent, communicated, received, or stored by electronic means; or (B) the output of a word processing, spreadsheet, presentation, CbaasppaAcyepitaton Legal Authority: TEX. GOVT CODE S 441.1855. Texas Grant Management Standards Version 2.0 87 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Remedies for If Respondent fails to comply with any requirement of the APPLICABILITY: Clause applies to procurement contracts Nonperformance contract, Agency may terminate or cancel all or any part of exceeding the federal Simplified Acquisition Threshold that the contract, may obtain substitute requested items, may are financed from federal funds. withhold acceptance and payments to Respondent, may 2 CFR Part 200 Appendix II (Contract Provisions for Non- revoke any prior acceptance, may require Respondent to refund amounts paid prior to revocation of acceptance and Federal Entity Contracts Under Federal Awards)- may pursue all rights and remedies against Respondent In addition to other provisions required by the federal under the contract and any applicable law. Remedies for agency or the non-federal entity, all contracts made by the nonperformance may also include suspension or debarment. non-federal entity under the federal award must contain No provision of the contract shall constitute or be construed provisions coveringt the following, as applicable: asav waiver ofa any ofthe privileges, rights, defenses, remedies, orimmunities available to Agency as an agency ofthe State of Contracts for more than the simplified acquisition threshold Texas or otherwise available to Agency. The failure to enforce currently set at $150,000, which is the inflation adjusted or any delay in the enforcement of any privileges, rights, amount determined by the Civilian Agency Acquisition defenses, remedies, or immunities detailed in the contract Council and the Defense Acquisition Regulations Council or otherwise available to Agency by law will not constitute (Councils) as authorized by 41 U.S.C. 1908, must address a waiver of said privileges, rights, defenses, remedies, or administrative, contractual, or legal remedies in instances immunities or be considered as a basis for estoppel. where contractors violate or breach contract terms, and provide for such: sanctions and penalties as appropriate. Or Legal Authority: 2 CFR Part 200 Appendix II. Other contract text that satisfies the requirements of 2 CFR Part 200 Appendix II(A). Reporting Respondent represents and warrants that ity will comply with APPLICABILITY: Clause applies to grant agreements that are Suspected Fraud Section 321.022 of the Texas Government Code, which financed from state or federal funds. and Unlawful requires that suspected fraud and unlawful conduct be Conduct reported to the State Auditor's Office. Section 321.013(a) oft the Texas Government Code provides: The State Auditor shall conduct audits of all departments, including institutions of higher education, as specified in the audit plan. At the direction of the committee, the State Auditor shall conduct an audit or investigation of any entity receiving funds from the state. Legal Authority: TEX. GOVT CODE S 321.022. 88 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Rights to Respondent represents and warrants that it will comply APPLICABILITY: Clause applies to certain grant agreements Inventions Made with the requirements of 37 CFR Part 401 ("Rights to and procurement contracts financed from federal funds. Undera a Contract Inventions Made by Nonprofit Organizations and Small or Agreement Business Firms Under Government Grants, Contracts and 2 CFR Part 200 Appendix II (Contract Provisions for Non- Cooperative Agreements")a and anyi implementing regulations Federal Entity Contracts Under Federal Awards)- issued by the awarding agency, if federal award meets the In addition to other provisions required by the federal definition of "funding agreement" under 37 CFR $401.2(a) agency or the non-federal entity, all contracts made by the and the Respondent wishes to enter into a contract with non-federal entity under the federal award must contain a small business firm or nonprofit organization regarding provisions covering the following, as applicable: the substitution of parties, assignment or performance of experimental, developmental, or research work under that (F) Rights to Inventions Made Under a Contract or "funding agreement." Agreement. If the federal award meets the definition of "funding agreement" under 37 CFR $401.2 (a) and the Or recipient or subrecipient wishes to enter into a contract Other text specified by the federal with a small business firm or nonprofit organization regarding the substitution of parties, assignment or agency. peromanceolepeimena., developmentaloresearch work under that "funding agreement," the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," and any implementing regulations issued by the awarding agency. Legal Authority: 2 CFR Part 200 Appendix II. Texas Grant Management Standards Version 2.0 89 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance State Auditor's The state auditor may conduct an audit or investigation APPLICABILITY: Clause applies to grant agreements or Right to Audit of any entity receiving funds from the state directly under procurement contracts thata arei financed from state orf federal the contract or indirectly through a subcontract under the funds. contract. The acceptance offunds directly undert the contract ori indirectly through a subcontract under the contract acts Supplemental text to the required clause may include the following: as acceptance oft the authority oft the state auditor, under the direction of the legislative audit committee, to conduct an The contract or grant may be amended unilaterally by Agency audit or investigation in connection with those funds. Under to comply with any rules and procedures of the state auditor the direction of the legislative audit committee, an entity that int thei implementation and enforcement of Section: 2262.154 ist the subject of an audit ori investigation by the: state auditor oft the Texas Government Code. must provide the: state auditor with access to anyinformation the state auditor considers relevant to the investigation or Legal Authority: TEX. GOVTCODE S 2262.154. audit. Or Pursuant to Section 2262.154 of the Texas Government Code, thes state auditor may conduct an audit ori investigation of any entity receiving funds from the state directly under any contract or indirectly through a subcontract under the contract. The acceptance of funds by the Respondent or any other entity or person directly under the contract or indirectly through a subcontract under the contract acts as acceptance of the authority of the state auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. Under the direction of the legislative audit committee, the Respondent or other entity that is the subject of an audit or investigation by the state auditor must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. Respondent shall ensure that this paragraph concerning the authority to audit funds received indirectly by subcontractors through the contract and the requirement to cooperate is included in any subcontract ita awards. Subaward Respondent represents and warrant that it will monitor the APPLICABILITY: Clause applies to grant agreements that are Monitoring activities oft the subrecipient as necessary to ensure that the financed from state orf federal funds. subaward is used for authorized purposes, in compliance with applicable statutes, regulations, and the terms and Legal Authority: 2 CFR S 200.332(d); TEX. GOVT CODE S 783.005. conditions oft the subaward, and that subaward performance goals are achieved. 90 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Assurance Standard Text Guidance Termination and Agency reserves the right to terminate the contract at any APPLICABILITY: Clause applies to procurement contracts Cancellation time, in whole ori in part, without cost orp penalty, by providing exceeding $10,000 that are financed from federal funds. Circumstances thirty (30) calendar days' advance written notice. Agency 2 CFR Part 200 Appendix II (Contract Provisions for Non- reserves the right, in its sole discretion, to terminate the Federal Entity Contracts Under Federal Awards)-- contracti in whole or in parti for Respondent's material breach, provided that Respondent has been given advance written In addition to other provisions required by the federal notice specifying the nonperformance and a thirty (30)- agency or the non-federal entity, all contracts made by the calendar-day period in which to cure the breach. non-federal entity under the federal award must contain provisions covering the following, as applicable: In the event of contract termination, Respondent must, unless otherwise mutually agreed upon in writing, cease all (B) All contracts in excess of $10,000 must address work immediately upon the effective date of termination. termination for cause and for convenience by the non- Termination or expiration of the contract shall not affect federal entity including the manner by which it will be Agency's right to use oreviously purchased licensed software effected and the basis for settlement. through the term of each such license, nor any maintenance ors support purchased prior to such termination. In the event Legal Authority: 2 CFR Part 200 Appendix II. of contract termination, the Agency's sole and maximum obligation shall be to pay Respondent for previously authorized services completed in accordance with contract requirements and performed prior to the effective date of termination. Agency shall have no other liability, including no liability for any costs associated with the termination. Agency reserves the right to pursue reasonable costs, fees, expenses, and other amounts or damages available to the Agency under the contract or under applicable law, including, but not limited to, attorneys' fees and court costs, ift termination or cancellation is at the Respondent's request orift the Agency terminates the contract for cause. Or Othero contract text that satisfies the requirements of2 CFR Part 200 Appendix II (B). Texas Grant Management Standards - Version 2.0 91 STATEWIDE PROCUREMENT DIVISION 92 Texas Grant Management Standards - Version 2.0 STATEWID R ROCUREMENT DIVISION Texas Grant Management Standards Version 2.0 93 STATEWIDE PROCUREMENT VISION 94 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 95 STATEWIDE PROCUREMENT IVISION 96 Texas Grant Management Standards Version 2.0 WIDE PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 97 STATEWIDE PROCUREMENT - ON 98 Texas Grant Management Standards Version 2.0 WDE PROCUREMENT DIVISION Texas Grant Management Standards Version 2.0 99 STATEWIDE PROCUREMENT SION 100 Texas Grant Management Standards - Version 2.0 TATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 101 STATEWIDE PROCUREMENT DIVISION 102 ga: S Grant Management Standards Version 2.0 A WID ROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 103 STATEWIDE PROCUREME EN N IT SON 104 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards Version 2.0 105 STATEWIDE PROCUREMENT SON 106 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards Version 2.0 107 STATEWIDE PROCUR EMENT a N 108 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 109 STATEWIDE PROCUREMENT VISI ON 110 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 111 STATEWIDE PROCUREMENT IVISION 112 Texas Grant Management Standards Version 2.0 > TATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards Version 2.0 113 STATEWIDE PROCUREMEN VISION 114 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 115 STATEWIDE PROCUREMENT DIVISION 116 Texas Grant Management Standards Version 2.0 E EWID E PROCUREMENT DIVISION Texas Grant Management Standards Version 2.0 117 STATEWIDE PROCUREMENT DIVISION 118 Texas Grant Management Standards Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 119 STATEWIDE PROCUREMENT DIVISION 120 Texas Grant Management Standards Version 2.0 EWIDI a PROCUREMENT DIVISION T'exas Grant Management Standards Version 2.0 121 STATEWIDE PROCUREMENT DIVISION 122 Texas Grant Management Standards = Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards Version 2.0 123 STATEWIDE PROCUREMENT a 124 Texas Grant Management Standards Version 2.0 WI PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 125 STATEWIDE PROCUREMENT ON 126 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 127 STATEWIDE PROCUREMENT SION 128 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION Texas Grant Management Standards - Version 2.0 129 STATEWIDE PROCUREMENT DIVISION 130 Texas Grant Management Standards -= Version 2.0 STATEWIDE PROCUREMENT DIVISION APPENDIX 8 SAMPLE PERSONNEL ACTIVITY REPORT Compensation - Fringe Benefits Personnel Activity Report [Month] [Year] Employee Name: [Name] Activity for Which Employee was Project Actual Activities Performed Compensated (% of Total Hours Worked) [Grantor Agency Name] Contract/ Grant Nos. and Names XXXXXXXXXX X% [Contract Name] XXXXXXXXXX X% [Contract Name] XXXXXXXXXX X% [Contract Name] XXXXXXXXXX X% [Contract Name] XXXXXXXXXX X% [Contract Name] Other Projects (Not Related to [Grantor Agency X% Name] Contracts/ Grants) The information listed above is true and correct. Grantor Agency Name] may request additional information. Employee Signature Date Supervisor Texas Grant Management Standards - Version 2.0 131 STATEWIDE PROCUREMENT DIVISION 132 Texas Grant Management Standards - Version 2.0 STATEWIDE PROCUREMENT DIVISION APPENDIX 9 Sample Request for Application Checklist TxGMS does not require any particular method of grantee selection. Agencies should consult their counsel for help identifying a grantee selection method that complies with applicable law. This checklist is provided as a suggested reference for agencies using a request for applications or similar method. For further information on grantee selection, see Footnote 55 above and the accompanying text. Authorized Official Opportunity/RFA Number Financial Officer Project Director Request for Applications Documents N/A Included Pre-Award Phase Draft/Initial application documentation - All ats/Atachments/eambis Funding Opportunity Description Award Information J Eligibility Information Application and Submission Information Evaluation Criteria L Application Review Information Award Administration Information Question/Agency Contacts Supplementary Material Stakeholder Meeting Documentation (e.g., Needs Assessment, Cost Estimate, Acquisition Plan) Reporting Requirement (including evidence of agency request and receipt of approval) - LBBI Reporting Requirement > $50,000 Publish on agency website > $25,000 Finalized. Application (including all pats/atachmensy/embts, Internal Approval to Issue Request for Applications Request for Applications Announcement (eGrants, optional andi ifa applicable) Pre-Application Conference. Agenda and Sign-in Sheet (including dated eGrant printout) Voluntary Mandatory Copies of Questions from Potential Respondents (including proof oft timely receipt) Question and Answer Document Issued Scoring Matrix finalized, ifapplicable Evaluation Committee Members selected, ifapplicable Evaluation Documentation (If applicable) Copies of Responses Initial Screening of Application Signed Non-Disclosure and Conflict ofl Interest Statement from each Evaluation Committee Member and, if applicable, Technical Advisor Evaluation Committee Meeting Documentation (including agenda, guidelines) Copy of Answers Received from Respondent(s) to Agency's Clarification Questions Copy of Oral Presentation Agenda & Presentation Documents All Completed Evaluation Committee Member Score Sheets (score sheets from all scoring committee members for all scoring rounds) Scoring Round: Z 1, 2, 13 Master Evaluation Score Sheet (completed) Evaluation Review Process & Financial Review Grant Award and Amendment Documentation Pre-approval Award Database Check Federal Database Check (SAM) Tax ID Check Debarment Check Child Support Obligation Agency award notification to the applicant Texas Grant Management Standards Version 2.0 133 For more information, visit our website: comptrolertexas.foV/purchasing/ Inc compliance witht the Americans with Disabilities Act, this document may be requested in alternative formats by calling toll free 800-252-5555. Sign upt tor receive email updates on the Comptroller topics of your choice at comptroler.texas.ov/subscribe/ Texas Comptroller of Public Accounts Publication #96-1929 October 2024 TEXAS PARKS AND WILDLIFE Recipient Monitoring Plan Recreation Grants Branch Non-Construction Grants Purpose: As per Texas Grant Management Standards, TPWD is required to monitor the activities of the recipient as necessary to ensure that the award is used for authorized purposes, in compliance with state law, regulations, and the terms and conditions of the award; and that performance goals are achieved. TPWD may identify monitoring tools and/or specific conditions to be used to ensure proper accountability and compliance with program requirements and achievement of performance goals. The TPWD Grant Coordinator must document monitoring of the recipient for the duration of the project and file where appropriate TPWD staff can access for future audits. Instructions: Select any monitoring tools and/or specific conditions which should be implemented for this recipient based on the results of the risk assessment. Upon completion, this form is to be attached to the grant agreement by the Grant Coordinator, as well as uploaded into the CAPPS contract entry by the managing Contract Specialist. Name of Organization (must match name of UEI): City of Pasadena - Parks and Recreation Project Number: 52-2505 Recipient Primary Program Contact: Tammy DeLosSantos, Grant Writer Recipient Primary Fiscal Contact: Lindsay Koskiniemi, City Controller Recipient Type:Local Government EIN/UEI Number: 746001846 / LJNKC66VKKM5 Completed By: Rena Beyer Date of Assessment: 4/9/25 Due to the complexity of TPWD Recreation Grant projects, the following monitoring tools are included regardless of the organization's assessed level of risk. 1. Quarterly Status Reports via Recreation Grants Online (RGO) 2. Payment by reimbursement. 3. Grant management training or other technical assistance. The following specific conditions will also be imposed based on the organization's assessed level of risk: X Not Applicable Pre-award meeting with program staff (new primary contact, program compliance) Pre-award meeting with fiscal staff (new fiscal staff, reimbursement policies, etc.). Quarterly progress updates via phone call. Monthly progress updates via phone call. Other: Poenda .7-25 AGENDA REQUEST ORDINANCE RESOLUTION NO: 2025- ResoA CAPTION: Donation to Madison Jobe Senior Center for prizes for BINGO valued at $130.00 dollars from McCunis Fox Health Insurance. RECOMMENDATIONS & JUSTIFICATION: : Recommendation to accept this donation in connection with Madison Jobe Senior Center. (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED : COUNCIL DISTRICT (S) AFFECTED: REQUIRES APPROPRIATION: See attached Certification COUNCIL ACTION foou DATE:5/22/2025 REQUESTING PARTY (Jason Ross) FIRST READING: FINAL READING: BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED : - w o CITY ATTORNEY DATE DATE SAw DEFERRED : MAYOR RESOLUTION NO. 2025- A Resolution accepting an in-kind donation of prizes for BINGO event valued at $130.00 from McCunis Fox Health Insurance Brokers for use by the Parks and Recreation Department in connection with Madison Jobe Senior Center. WHEREAS, McCunis Fox Health Insurance Brokers has made an in-kind donation of prizes for BINGO event valued at $130.00 for use by the Parks and Recreation Department in connection with Madison Jobe Senior Center; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the City Council, on behalf of the citizens of the City of Pasadena, hereby expresses its appreciation to McCunis Fox Health Insurance Brokers and accepts an in-kind donation of prizes for BINGO event valued at $130.00 for use by the Parks and Recreation Department in connection with Madison Jobe Senior Center. SECTION 2. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further DonationPeR.Srcenter.MeunisFoxlealthins (4) .BINGO25 confirms such written notice and the contents and posting thereof. PASSED, APPROVED AND ADOPTED THIS THE day of A.D., 2025. JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS DonationPeR.Srcenter.MeCunisFoxlealthIns (4) BINGO25 AGENDA REQUEST v ORDINANCE RESOLUTION Reso B NO: 2025- CAPTION: A resolution setting a public hearing in the City Council Chambers, City Hall, 1149 Ellsworth Drive, Pasadena, TX 77506 at 6:00 p.m., July 15, 2025, for the purpose of hearing any interested citizen on the proposed budget for the Crime Control and Prevention District for the budget year beginning October 1, 2025 and ending September 30, 2026. RECOMMENDATIONS & JUSTIFICATION: Pursuant to Local Government Code 363.205 (a), the City Council must hold a public hearing to the adoption of the next year's budget. (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED: REQUIRES APPROPRIATION: See attached Certification huy Bmach COUNCIL ACTION Sherry Womack DATE: : 6/4/2025 REQUESTING PARTY (TYPED) FIRST READING: FINAL READING: BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED: oflo CITY ATTORNEY DATE DATE Awine DEFERRED: MAYOR RESOLUTION NO. 2025- A Resolution setting a public hearing in the City Council Chambers, City Hall, 1149 Ellsworth Drive, Pasadena, Texas 77506 at 6:00 p.m., July 15, 2025, for the purpose of hearing any interested citizen on the proposed budget for the Crime Control and Prevention District for the budget year beginning October 1, 2025 and ending September 30, 2025. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the City Council of the City of Pasadena, Texas hereby sets a public hearing for 6:00 p.m., July 15, 2025, in the City Council Chambers, City Hall, 1149 Ellsworth Drive, Pasadena, Texas 77506, for the purpose of hearing any interested citizen on the proposed budget for the Crime Control and Prevention District for the budget year beginning October 1, 2025 and ending September 30, 2025. SECTION 2. That notice is hereby given that any citizen of the City of Pasadena shall have the right to be present and participate in such hearing. SECTION 3. That the City Secretary shall publish notice of the July 15, 2025 hearing in a newspaper with general circulation in the district not later than the 10th day before the date of the hearing and such budget summaries and notices as are required by State and Federal law. SECTION 4. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient Crimebudget.Hearings to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. PASSED, APPROVED AND ADOPTED THIS THE day of A.D., 2025. JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS CrimeBudget. Hearing25 Agenda L-17-25 AGENDA REQUEST ORDINANCE RESOLUTION C Reso NO: 2025- CAPTION: A resolution authorizing the Pasadena Parks and Recreation Department to accept a $1,000.00 donation from Hancock Pool Services. RECOMMENDATIONS & JUSTIFICATION: The funding will be used for the annual City of Pasadena 4th Fest event. (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED: : COUNCIL DISTRICT (S) AFFECTED: : REQUIRES APPROPRIATION: See attached Certification COUNCIL ACTION D DATE: : 5/27/25 Jason Ross FIRST READING: FINAL READING: BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED : NoN Lp CITY ATTORNEY DATE DATE A Aahane DEFERRED: : MAYOR RESOLUTION NO. 2025- A Resolution authorizing the Pasadena Parks and Recreation Department to accept a donation of $1,000.00 from Hancock Pool Services to be used for the annual City of Pasadena 4th Fest event. WHEREAS, Hancock Pool Services has donated $1,000.00 for use by the Parks and Recreation Department as a sponsorship for the annual City of Pasadena 4th Fest event; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the City Council, on behalf of the citizens of the City of Pasadena, hereby expresses its appreciation to Hancock Pool Services and accepts the $1,000.00 donation for use by the Parks & Recreation Department in connection with the annual City of Pasadena 4th Fest event. SECTION 2. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. DonationPER. Athrest-HancockPoiserviceszs.doc PASSED, APPROVED AND ADOPTED THIS THE day of A.D., 2025. JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS DonationPaR.4thFest-HancockPoolServices25.doc Agenda W25 AGENDA REQUEST ORDINANCE RESOLUTION Reso D NO: 2025- CAPTION: A resolution to accept a check donation in the amount of $20,000 from Chevron Products Company to be allotted to: Neighborhood Network for Team Up to Clean Up 2025. - $10,000.00 Pasadena Food Drive 2025 - $10,000.00 RECOMMENDATIONS & JUSTIFICATION: A resolution to accept a check donation in the amount of $20,000 from Chevron Products Company to be allotted to: Neighborhood Network for Team Up to Clean Up 2025 - $10,000.00 Acct - 006 - 2430303 Pasadena Food Drive 2025 - $10,000.00 Acct - 006 - 24316 (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED: REQUIRES APPROPRIATION: See attached Certification COUNCIL ACTION be DATE:05/29/2025 REQUESTING PARTY Hal Burke FIRST READING: FINAL READING: BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED: ylb CITY ATTORNEY DEFERRED: fAwryne MAYOR RESOLUTION NO. 2025- A Resolution accepting a donation of $20,000.00 from Chevron Products Company for use by Neighborhood Network in connection with Team Up to Clean Up 2025 ($10,000.00) and Pasadena Food Drive $10,000.00). WHEREAS, Chevron Products Company has made a donation of $20,000.00 for use by Neighborhood Network in connection with Team Up to Clean Up 2025 ($10,000.00) and Pasadena Food Drive ($10,000.00), NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the City Council, on behalf of the citizens of the City of Pasadena, hereby expresses its appreciation to Chevron Products Company and accepts a donation of $20,000.00 for use by Neighborhood Network in connection with Team Up to Clean Up 2025 ($10,000.00) and Pasadena Food Drive $10,000.00). SECTION 2. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. Donationws.TeambprocleamopaPasroaDrive.ChevronevronProductsCo25 PASSED, APPROVED AND ADOPTED THIS THE day of A.D., 2025. JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS Donationnw.TeamupToCleanupePasFoodDrive.ChevronProductsCo25 INVOICE 576as EST 1893 A BILLED TO: CHEVRON PASADENA JEFF WAGNER C/O: JENNIFER SILVA MAYOR 111 RED BLUFF ROAD PASADENA, TX 77506 INVOICE: #TU2CU2025 DATE: MAY 5, 2025 DESCRIPTION: AMOUNT: SPONSORSHIP FOR TEAM UP TO CLEAN UP 2025 $10,000.00 TOTAL: 5 10,000.00 CDPY CITY OF PASADENA, TX HAL BURKE NEIGHBORHOOD NETWORK MANAGER C 713.920.7969 () HBURKE @ PASADENATX.GOV 1149 ELLSWORTH DRIVE, PASADENA, TX 77506 THANK YOU FOR YOUR 2025 TEAM UP TO CLEAN UP SPONSORSHIPI INVOICE s16b5 EST 1893 BILLED TO: CHEVRON PASADENA JEFF WAGNER C/O: JENNIFER SILVA MAYOR 111 RED BLUFF ROAD PASADENA, TX 77506 INVOICE: #FOOD2025 DATE: MAY 5, 2025 DESCRIPTION: AMOUNT: TITLE SPONSORSHIP $10,000.00 FOR PASADENA FOOD DRIVE 2025 TOTAL: $ 10,000.00 COFY CITY OF PASADENA, TX LORRIE LINDBERG JOWELL VOLUNTEER PASADENA MANAGER Thare & 713.475.7259 yowy LJOWELL @ PASADENATX.GOV 1149 ELLSWORTH DRIVE, PASADENA, TX 77506 THANK YOU FOR YOUR 2025 PASADENA FOOD DRIVE SPONSORSHII AGENDA REQUEST La Koanl ORDINANCE / RESOLUTION Reso E NO: 2025- CAPTION: A resolution authorizing the Neighborhood Net twork division within the Community Relations department to apply for the Shell Deer Park Community Grant, in support of the Team Up to Clean Up program. RECOMMENDATIONS & JUSTIFICATION: Requesting approval to apply for the Shell Deer Park Community Grant in the amount of $5,000 to be allotted to Neighborhood Network for Team Up to Clean Up 2025. (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED: : COUNCIL DISTRICT (S) AFFECTED: REQUIRES APPROPRIATION: See attached Certification 714. Bule COUNCIL ACTION Neighborhood Network DATE:5/28/25 REQUESTING PARTY / Hal Burke FIRST READING: FINAL READING: nur bn a BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED: ylb CITY ATTORNEY DATE DATE Apwr DEFERRED: MAYOR RESOLUTION NO. 2025- A Resolution authorizing the Pasadena Neighborhood Network Division within the Community Relations Department to apply for the Shell Deer Park Community Grant in support of the Team Up to Clean Up 2025 program. WHEREAS, Neighborhood Network is requesting approval to apply for the Shell Deer Park Community grant in the amount of $5,000.00 to be allotted to Neighborhood Network for Team Up to Clean Up 2025; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the City of Pasadena Neighborhood Network is hereby authorized to seek $5,000.00 in funding from Shell Deer Park Community Grant to use for Team Up to Clean Up 2025. SECTION 2. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. (SIGNATURE AND APPROVAL = NEXT PAGE) Granthppi.ShellDeerPasAcomanitygrantProgru2cu25 PASSED, APPROVED AND ADOPTED THIS THE day of A.D., 2025. JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS GrantAps.ShellDeeraracomunityorantProgru2cu25 City of Pasadena Grant Request Form Requesting Department: Community Relations Date: 5/23/2025 Contact Name: Lauren Mitchell Contact Phone: 713-920-7930 Contact E-mail: michel@pasadenatgow Grantor/Funding Agency: Shell Deer Park Community Grants Grant Amount: $5,000 Federal: State: Private Agency: Type of Grant (select): MOU: Pass-Through: Application submission deadline: 6/15/2025 Duration of Grant: 1 year Anticipated Costs: No additional costs anticipated. Match Requirements: Yes: No: Amount/Percentage: If Matching required, are funds Yes: No: Fund #: available? Type of Reporting Requirements: Yes: No: Financial: Compliance: Reporting: Other departments impacted by use Yes: No: Specify Departments: Volunteer Pasadena of Grant CFDA # Purpose/lustification of Grant (need/beneht; alignment with City Strategic Plan; etc): Funds from this grant would be used for a specific program that Neighborhood Network offers. Team Up to Clean Up is a program designed to assist Pasadena homeowners with outdoor and exterior home projects that may otherwise go unfinished, due to physical or financial hardship. The City of Pasadena, Neighborhood Network, Pasadena Industrial Community Network, and Volunteer Pasadena collaborate during this annual program, with a common goal of helping citizens revitalize their properties, with some assistance from willing hands. An application process and vetting committee are inj place, to ensure that eligible homeowners are given an equal chance to benefit from the Team Up to Clean Up program. Before and after photos are taken of each project site, to showcase the amazing work that nearly 200 volunteers and 15 community partner groups accomplish in a single day. This program is a benefit to many, as it helps maintain home values and the City's appearance, while connecting Pasadena citizens with their local government. Impact to Fiscal Year Budget: Additional Employees Required: Yes: No: V #F Required: Total anticipated Salary Expense: Total Anticipated Benefit Expense: Contractual Services Required: Yes: No: Anticipated cost: Materials/supplies anticipated cost: Requestor Signature Laue M tsehool Date: 5/a3/25 Approvals: Budget Director: ) Date: s124125 Compliance Officer: LE - L = Date: 5-28-2 25 Controller: Date: 5013835 PLEASE SAVE A COPY OF THIS DOCUMENT AS CHANGES WILL NOT BE AUTOMATICALLY SAVED. City of Pasadena Grant Benefits and Cost Analysis Fund Source: Shell Deer Park Grant Title: Deer Park Community Grants Grant Application Due Date by Grantor: 6/15/2025 Please answer each of the following questions to support the Grant Benefit and Cost Analysis. 1. What is the purpose of the grant and describe its consistency with the identified City goals and objectives: Shell Deer Park's website states the following ofi it's Community Grants Program, "Civic & Community Need - We focus our civic and community need support primarily through our Community Grants program. We fund projects ranging from area-wide business and economic development initiatives to local neighborhood efforts. * Our Team Upi to Clean Up program aligns with Shell Deer Park's program area of" "Community Need", as well as will prioritizing charitable contributions to eligible non-profit organizations "in nearby communities, including Deer Park, Pasadena and La Porte." 2. Describe any additional staffing, office space, facilities, supplies, or equipment that will be required if the grant is awarded: No additional resources will be required to maintain this grant, as we were in compliance with other grants throughout the 2024 grant cycle using just our current Neighborhood Network staff. 3. Will there be any ongoing impacts of the grant program after is completed?: In addition to cleaning up yards, painting houses, and building accessible ramps, this program brings City of Pasadena employees, citizens, partners, and donors together, to strengthen relationships within our community. The Team Up to Clean Up program will continue on regardless of being awarded the Shell Deer Park Community Grant, as many industry and local business partners support this program. 4. List the responsibilities of other departments (if any) and impacts on them in preparing the grant application or performing the scope of work if the grant is awarded: The grant application will be completed by me, Lauren Mitchell, with all sections reviewed by coworkers prior to submission. If Team Up to Clean Up is awarded this grant, our Volunteer Pasadena department, managed by Lorrie Jowell, may be asked to recruit additional volunteers, as the program would be able to assist additional Pasadena homeowners. Lorrie is aware and is willing to assist in whatever way she can. 5. Total program costs, including portion funded through grant revenues and any required City Contribution: Our proposed budget for the 2025 Team Up to Clean Up program is $43,000.The projected increase in this year's budget is designed to cover increases on the cost of materials and rentals, purchasing lunch for volunteers, ordering event shirts, and ordering new banners/signs for marketing purposes. This program is funded by donations only, therefore no city funds/tax dollars are used in the purchasing of materials, supplies, food, etc to implement the program. 6. Source of funding for any required City Share: n/a. 7. Compliance and audit requirements, paying special attention to the grantor's administrative procedures (reporting requirements, wage requirements, time and effort reporting, etc.): Unknown at this stage of the application process. PLEASE SAVE A COPY OF THIS DOCUMENT AS CHANGES WILL NOT BE AUTOMATICALLY SAVED. Customer Business About us Who What Careers News and we V V Sustainability V V V we do at Shell insights are About Who we Shell USA at a Projects and Deer Social Investment & Home > > < Us are glance locations Park Membership Social Investment & Membership At Shell Deer Park, generations of area residents have built fulfilling careers, supported families and strengthened our community. We are deeply committed to the communities surrounding our site. Contribution Guidelines Program Areas Shell Deer Park will consider charitable contributions to eligible non-profit organizations for select programs that fall within our focused areas of contributions. Education - We support local school districts for a variety of educational initiatives. We pay special attention to K-12 programs that boost Science, Technology, Engineering and Math (STEM) skills and look for requests that demonstrate broad student body impact over smaller club activities. Workforce Development - Shell considers itself a leader in the workforce development space in the Deer Park area. The need for skilled technical workers in the upcoming years plays a critical role in the industry's success, and Shell seeks to help upskill potential workers. Environment & Biodiversity - Protecting the environment is a top priority of our site and its employees. As part of this commitment, we support local projects that promote environmental stewardship, including restoration and protection of critical ecosystems, and support wildlife conservation and/or habitat projects. We are deeply committed to the communities surrounding our site, and we work closely with local organizations to identify opportunities that drive long-term value for their residents. Civic & Community Need = We focus our civic and community need support primarily through our Community Grants program. We fund projects ranging from area-wide business and economic development initiatives tolocal neighborhood efforts. Emergency Response Planning - We are dedicated to protecting the community around us. It is critical that the community understands what to do in the case of an emergency, and that industry members know how to respond effectively and efficiently alongside each other and our first responders. Shell focuses on emergency communications and industry initiatives that support this outcome. Geographic Focus Shell Deer Park will prioritize charitable contributions to eligible non-profit organizations in nearby communities, including Deer Park, Pasadena and La Porte. Note: Shell Corporate Social Investment may consider a donation requests from geographic areas outside of these communities. Please refer your application to this group. Deer Park Community Grants The Community Grants program allows a panel of community members toselect grants up to $5,000 (totaling $30,000) for non-profit organizations in Deer Park, Pasadena and La Porte. The Community Grants program is open for applications from May 1 through June 15! Please click here ifyou wish to apply. SHELL DEER PARK COMMUNITY GRANTS Applicant (Organization) Name: * City of Pasadena Amount Request: * $5,000 Project Description and Goal: * PROJECT DESCRIPTION: Team Up to Clean Up is a program designed to assist Pasadena homeowners with outdoor and exterior home projects, that may otherwise go unfinished due to physical or financial hardship. The City of Pasadena, Neighborhood Network, Pasadena Industrial Community Network, and Volunteer Pasadena collaborate during this annual program, with a common goal of helping citizens revitalize their properties, with some assistance from willing hands. The planning and implementation of this program happens over eight months, from March through October, annually. An application process and vetting committee are in place to ensure that eligible homeowners are given an equal opportunity to benefit from the Team Up to Clean Up program. To qualify for assistance, Pasadena homeowners need to prove just one oft the following: they are age 65 or older, have a low-income status, are a military veteran or family of, or they have a disability. Before and after photos are taken of each project site to showcase the amazing work that nearly 200 volunteers and 15 community partner groups accomplish in a single day. GOAL: -Strive to assist every applicant, as long as they meet the qualifications. For applicants who do not qualify, provide reliable resources and make initial contact on behalf of the homeowner, with their permission. -In addition to cleaning up yards, painting houses, and building accessible ramps, the goal of this program is to bring City of Pasadena employees, citizens, partners, and donors together to strengthen relationships within our community. Program Activities and Budget Breakdown:* PROGRAM ACTIVITIES: Tuesday April 1 Applications Open Monday June 30 Applications Close Tue-Thurs July 1-3 Organize & Filter. Applications Mon-Mon July 14-21 Property Walk-Throughs & Before Photos Weds-Thurs Aug 6-7 Present Apps to Vetting Committee Monday Aug 18 Notify All Applicants Tues-Fri Aug 19-22 Project Sites for Needs Assessments Friday. Aug 29 Sponsorship & Logo Deadline Tue-Fri Sept 2-5 Create Project Folders & Before Photos Friday Sept 5 Place T-Shirt Order with Sponsors Friday Sept 12 Place Banner & Yard Sign Orders Mon-Tues Sept 15-16 Materials into Online Lowe's Carts Thursday Sept 18 Kick-Off Party, City Hall, Time TBD Mon-Mon Sept 22-29 Team Lead Site Visits Friday Sept 26 Volunteer Waivers Due, Pay Lowe's Carts/Delivery Mon-Tues October 6-7 Conex Materials Sorted & Labeled by Project Friday October 10 Ant Hills & Poison Ivy Prep Work Completed Mon-Thurs Oct 13-16 Lowe's & Conex Deliveries to Sites Friday October 17 Tie Up Loose Ends Saturday October 18 TU2CU Event Day! Mon-Thurs Oct 20-23 After Photos & Pick-Up Excess Materials BUDGET BREAKDOWN: Skilled Labor Costs $20,000 (Trees 8K, Fences 6K, Ramps 6K) Project/Materials Cost $16,000.00 T-Shirts/Recognition Plaques $3,000.00 Food/Hydration $1,500.00 Rental Deposits $600.00 Marketing/Prints $400.00 Safety Supplies $350.00 Misc Program Supplies $1,150.00 Projected Budget: $43,000.00 Opportunity for Shell involvement: * The City of Pasadena recognizes its supporters and donors with a healthy benefits package. For our Team Up to Clean Up program, any monetary award of $5,000 or more receives the following acknowledgments, which would increase the visibility of Shell Deer Park in our community: Opportunity to assemble a volunteer team and complete work at a project site on event day. Recognition on the City's website and social media sites Recognition on the Neighborhood Network website and social media sites Logo Recognition on t-shirts Recognition in email blasts to city personnel, community partners, and volunteers Recognition on Marketing Signage prior to and during the event Shell Deer Park will also have opportunities to attend our PICN meetings (Pasadena Industrial Community Network), the Team Up to Clean Up Kick-Off Meeting, and the event itself, on October 18th, 2025. Contact Information (Name, Number, & Email)* Lauren Mitchell michei@pasagenat.gor Neighborhood Network Specialist Community Relations Department City of Pasadena 1149 Ellsworth Drive Pasadena, TX 77506 O: 713-920-7930 C: 832-794-8464 SUBMIT AGENDA REQUEST ORDINANCE RESOLUTION KesoF NO: 2025- CAPTION: A Resolution authorizing the placement of a bench in Sherwood Park in honor and memory of Charles Culpepper to recognize his outstanding volunteer services in his community. This recognition serves the public purpose to encourage the citizens to also serve as volunteers to help City of Pasadena to assist and aid their fellow citizens of the City. RECOMMENDATIONS & JUSTIFICATION: : Mr. Culpepper was a Pasadena resident that advocated for his neighborhood and for the upgrades to Sherwood park, but did not live to see it established. Mr. Culpepper was well loved by his community. Bench was donated by Councilmember Valerio (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED : COUNCIL DISTRICT (S) AFFECTED : REQUIRES APPROPRIATION: See attached Certification COUNCIL ACTION La - Jason Ross DATE : 6/11/25 REQUESTING PARTY (TYPED) FIRST READING: FINAL READING: BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED: I CITY ATTORNEY DATE DATE fAwre DEFERRED : MAYOR RESOLUTION NO. 2025- A Resolution authorizing the placement of a bench in Sherwood Park in honor and memory of Charles Culpepper to recognize his outstanding volunteer services in his community. This recognition serves the public purpose to encourage the citizens to also serve as volunteers to help City of Pasadena to assist and aid their fellow citizens of the City. WHEREAS, Mr. Culpepper was a Pasadena resident who advocated for his neighborhood and for the upgrades to Sherwood Park, but did not live to see it established; and WHEREAS, Mr. Culpepper was well loved by his community; and WHEREAS, this recognition serves the public purpose to encourage the citizens to also serve as volunteers to help City of Pasadena to assist and aid their fellow citizens of the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the placement of a bench in Sherwood Park donated by Councilmember Valerio in honor and memory of Charles Culpepper is hereby authorized and approved. SECTION 2. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been enodPakOApuPerer-sechPagu.2.3 open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. PASSED, APPROVED AND ADOPTED THIS THE day of A.D., 2025. JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS henodPak.CAy-PersechPiag.2.3 CITY OF PASADENA PURCHASE ORDER NO. 00116268 P.O. BOX 672 3 PASADENA, TX 77501 PAGE NO. 1 V 11213 FAX: 630-879-8687 S PARKS & RECREATION DEPT. H E BARCO PRODUCTS CO. CITY OF PASADENA N 24 N. WASHINGTON AVE. P D 3111 SAN AUGUSTINE O BATAVIA IL 60510 PASADENA, TX 77503 T R O ATTN: ANNA OLVERA ORDER DATE: 06/05/25 BUYER: NORA ORTIZ REQ. NO.: 00062238 REQ. DATE: 05/30/25 TERMS: NET 30 DAYS F.O.B.: FOB PASADENA TX DESC.: MEMORIAL BENCH & PLAQUE ITEM# QUANTITY UOM DESCRIPTION UNIT PRICE EXTENSION 01 1.00 EA STERLING BENCH/6' BENCH/BROWN 1145.0000 1,145.00 02 1.00 EA CAST BRONZE PLAQUE/STANDARD PLAQUE/8X2/3 199.0000 199.00 LINES/20 CHARACTERS/PRE-DRILLED MOUNTING HOLES& HARDWARE, FIRST LINE: IN MEMORY OF, SECOND LINE: CHARLES CULPEPPER, THIRD LINE: 11/9/52 - 5/29/24 ESTIMATED SHIPPING: 303.94 ITEM# ACCOUNT AMOUNT PROJECT CODE PAGE TOTAL $ 1,647.94 TOTAL $ 1,647.94 01 10100 714804 1,145.00 02 10100 714804 199.00 99 10100 714804 303.94 APPROVED BY 25 donlas Auigne. MAYOR PURCHASING MANAGER 1 Vendor Copy Outlook Fw: Barco Products Shipping Confirmation SORCO88862 From Nora Ortiz nortuzopasadenatgov, Date Mon 6/9/2025 4:06 PM To Esmeralda Montes Motesepascenat.gon From: Barco Products Accounting <ateam@barcoproducts.com> Sent: Monday, June 9, 2025 3:41 PM To: Nora Ortiz montz@pasacenat.gov. Subject: Barco Products Shipping Confirmation SORCO88862 Hello, Items on your order SORCO88862 have shipped. Please use the following link to track your shipment: htswawalicentolsitacadefautasnz nasuemits-Yamtha-n89251ZAmhRaeA Thank you, Barco Products Accounting 800-338-2697 Barco - BP Products Confirmation Products, LLC Shipping Barco 24 N Washington Ave Batavia IL 60510 #SORCO88862 (800) 338-2697 cuslomerservice@barcoproducls.com 6/9/2025 Ship To Anna Olvera City Of Pasadena 3111 San Augustine Ave Pasadena TX 77503 Date Shipped Tracking # Ship Via Phone 6/9/2025 039972512 ABF Freight tem Ordered Back Ordered Shipped KBC1350-BN 1 1 Sterling Bench/ 6' Bench/ Brown Item Ordered Back Ordered Shipped BDB-KBC1350-BN 2 2 6' Bullnose Board for Hampton Bench - Brown BDR-KBC1350-BN 5 5 6' Rectangle Board for Hampton Bench - Brown BDT-KBC1350-BN 2 2 6' Teardrop Board for Hampton Bench Brown HAS1010-BK 1 1 Hampton Bench End- 1-6' Set HAS1350PL 2 2 One 6' Pole for Hampton Bench INSPECT ALL PACKAGES AND PRODUCTS BEFORE ACCEPTANCE FROM THE CARRIER. ALL CLAIMS MUST BE FILED WITHIN 5 BUSINESS DAYS TO AVOID ADDITIONAL COSTS TO SHIP REPLACEMENTS. ** NOTATE VISIBLE DAMAGE WITH THE CARRIER BEFORE SIGNING FOR THE SHIPMENT.** AGENDA REQUEST ORDINANCE / RESOLUTION NO: 2025- ResoG CAPTION: A Resolution approving the investment policy for the City of Pasasdena, Texas for Other Post Employment Benefits (OPEB) Trust. RECOMMENDATIONS & JUSTIFICATION: To adopt an inves tment policy specific to applicable Code required for Other Post Employment Benefits (OPEB) Trusts pursuant to Texas Property Code Title 9, Subtitle B, Chapter 111. (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED: COUNCIL DISTRICT (S) AFFECTED: : REQUIRES APPROPRIATION: See attached Certification COUNCIL ACTION Lindsay Koskiniemi DATE: 6/02/25 REQUESTING PARTY (TYPED) FIRST READING: FINAL READING: BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED: olee CITY ATTORNEY DATE DATE E Awryw DEFERRED: MAYOR RESOLUTION NO. 2025- A Resolution approving the Investment Policy for the City of Pasadena, Texas for Other Post Employment Benefits (OPEB) Trust. WHEREAS, to adopt an investment policy specific to applicable Code required for Other Post Employment Benefits (OPEB) Trusts pursuant to Texas Property Code title 9, Subtitle B, Chapter 111; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the City Council hereby approves an investment policy specific to applicable Code required for Other Post Employment Benefits (OPEB) Trusts pursuant to Texas Property Code title 9, Subtitle B, Chapter 111, as shown on Exhibit "A" attached hereto and incorporated herein for all purposes. SECTION 2. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. OPEB Tatnvat.alleps PASSED, APPROVED AND ADOPTED THIS THE day of A.D., 2025. JEFF WAGNER, MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY W. DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS OPEB Trust. Investment.Policy2s INVESTMENT POLICY STATEMENT FOR CITY OF PASADENA, TEXAS OTHER POST-EMPLOYMENT BENEFITS TRUST EXHIBIT "A" TABLE OF CONTENTS SECTION PAGE Purpose 3 Investment Authority 3 Statement ofInvestment Objectives 4 Investment Guidelines 5 Time Horizon Liquidity and Diversification Asset Allocation Rebalancing Philosophy Risk Tolerance Performance Expectations Selection ofl Investment Managers 7 Guidelines for Portfolio Holdings 7 Direct Investments by Advisor Limitations on Managers' Portfolios Portfolio Risk Hedging Prohibited Portfolio Investments Safekeeping Control Procedures 9 Review ofInvestment Objectives Review of Investment Performance Voting of Proxies Adoption ofInvestment Policy Statement. 11 2 The City of Pasadena, Texas has established the City of Pasadena Other Post-Employment Benefits Trust (the "Trust"). This Trust is intended to provide funding of non-pension post-employment benefits ("OPEB") for those employees who meet the age and service requirements. The Trustees of the Trust hereby adopt this Investment Policy Statement ("Policy Statement") for the following purposes. Purpose The main investment objective of the Trust is to achieve long-term growth of Trust assets by maximizing long-term rate of return on investments and minimizing risk of loss to fulfill the City's current and long-term OPEB obligations. The purpose of this Policy Statement is to achieve the following: 1. Document investment objectives, performance expectations and investment guidelines for Trust assets. 2. Establish an appropriate investment strategy for managing all Trust assets, including an investment time horizon, risk tolerance ranges and asset allocation to provide sufficient diversification and overall return over the long-term time horizon of the Trust. 3. Establish investment guidelines to control overall risk and liquidity. 4. Establish periodic performance reporting requirements to monitor investment results and confirm that the investment policy is being followed. 5. Comply with fiduciary, prudence, due diligence and legal requirements for Trust assets. Investment Authority The City Council has appointed a Plan Administrator (the "Administrator") to oversee certain policies and procedures related to the operation and administration of the Trust. The Administrator will have authority to implement the investment policy and guidelines in the best interest of the Trust to best satisfy the purposes ofthe Trust. In implementing this Policy Statement, the Administrator believes it may delegate certain functions to: 1. An investment advisor ("Advisor") to assist the Administrator in the investment process and to maintain compliance with this Policy Statement. The Advisor may assist the Administrator in establishing investment policy objectives and guidelines. The Advisor will adjust asset allocation for the Trust subject to the guidelines and limitations set forth in this Policy Statement. The Advisor will also select investment managers ("Managers") and strategies consistent with its role as a fiduciary for the Trust. The investment vehicles allowed may include mutual funds, commingled trusts, separate accounts, limited partnerships and other investment vehicles deemed to be appropriate by the Advisor. The Advisor is also responsible 3 for monitoring and reviewing investment managers; measuring and evaluating performance; and other tasks as deemed appropriate in its role as Advisor for Trust assets. The Advisor may also select investments with discretion to purchase, sell, or hold specific securities, such as Exchange Traded Funds, that will be used to meet the Trust's investment objectives. The Advisor shall never take possession of securities, cash or other assets of the Trust, all of which shall be held by the custodian. The Advisor must be registered with the Securities and Exchange Commission. 2. A custodian selected by the Trust to maintain possession of physical securities and records of street name securities owned by the Trust, collect dividend and interest payments, redeem maturing securities, and effect receipt and delivery following purchases and sales. The custodian may also perform regular accounting of all assets owned, purchased, or sold, as well as movement of assets into and out ofthe Trust. 3. A trustee appointed by the Trust, such as a bank trust department, ifthe Trust does not have its own Trustees, to assume fiduciary responsibility for the administration of Trust assets; provided, however, that if the/Administrator shall have appointed an investment advisor, then any trustee appointed under this paragraph shall have no authority with respect to selection of investments. 4. Specialists such as attorneys, auditors, actuaries and, retirement plan consultants to assist the Administrator in meeting its responsibilities and obligations to administer Trust assets prudently. Statement of Investment Objectives The investment objectives ofthe Trust are as follows: 1. To invest assets oft the Trust in a manner consistent with the following fiduciary standards: (a) all transactions undertaken must be for the sole interest of Trust beneficiaries, and (b) assets are to be diversified in order to minimize the impact of large losses from individual investments. 2. To provide for funding and anticipated withdrawals on a continuing basis for payment of benefits and reasonable expenses of operation ofthe Trust. 3. To enhance the value of Trust assets in real terms over the long-term through asset appreciation and income generation, while maintaining a reasonable investment risk profile. 4. Subject to performance expectations over the long-term, to minimize principal fluctuations over the Time Horizon (as defined below). 5. To achieve a long-term level of return commensurate with contemporary economic conditions and equal to or exceeding the investment objective set forth in this Policy Statement under the section labeled "Performance Expectations". 4 Investment Guidelines Within this section ofthe Policy Statement, several terms will be used to articulate various investment concepts. The descriptions are meant to be general and may share investments otherwise considered to be in the same asset class. They are: "Growth Assets" - a collection ofinvestments and/or asset classes whose primary risk and return characteristics are focused on capital appreciation. Investments within the Growth Assets category can include income and risk mitigating characteristics, SO long as the predominant investment risk and return characteristic is capital appreciation. Examples of such investments or asset classes are: domestic and international equities or equity funds, private or leveraged equity, and certain real estate investments. "Income Assets" - a collection ofinvestments and/or asset classes whose primary risk and return characteristics are focused on income generation. Investments within the Income Assets category can include capital appreciation and risk mitigating characteristics, SO long as the primary investment risk and return characteristic is income generation. Examples of such investments or asset classes are: fixed income securities, guaranteed investment contracts, and certain real estate investments. "Real Return Assets" - a collection ofinvestments and/or asset classes whose primary risk and return characteristics are focused on real returns, net ofinflation. Investments within the Real Return category may include, but are not limited to, inflation protected securities, commodities, certain real estate investments, natural resources, and liquid alternatives. Time Horizon The Trust's investment objectives are based on a long-term investment horizon ("Time Horizon") of five years or longer. Interim fluctuations should be viewed with appropriate perspective. The Administrator has adopted a long-term investment horizon such that the risks and duration of investment losses are carefully weighed against the long-term potential for appreciation of assets. Liquidity and Diversification In general, the Trust may hold some cash, cash equivalent, and/or money market funds for near-term Trust benefits and expenses (the "Trust Distributions"). Remaining assets will be invested in longer- term investments and shall be diversified with the intent to minimize the risk of long-term investment losses. Consequently, the total portfolio will be constructed and maintained to provide diversification with regard to the concentration of holdings in individual issues, issuers, countries, governments or industries. Asset Allocation 5 The Administrator believes that to achieve the greatest likelihood of meeting the Trust's investment objectives and the best balance between risk and return for optimal diversification, assets will be invested in accordance with the targets for each asset class as follows to achieve an average total annual rate of return that is equal to or greater than the Trust's target rate of return over the long-term, as described in the section titled "Performance Expectations". Asset Weightings Asset Classes Range Target Growth Assets Domestic Equity 20% -50% 36% International Equity 10% - 36% 18% Other 0% - 20% 6% Income Assets Fixed Income 25% - 50% 38% Other 0%- 20% 0% Real Return Assets 0% - 20% 0% Cash Equivalents 0% - 20% 2% The Advisor and each Manager will be evaluated against their peers on the performance of the total funds under their direct management. Rebalancing Philosophy The asset allocation range established by this Policy Statement represents a long-term perspective. As such, rapid unanticipated market shifts or changes in economic conditions may cause the asset mix to fall outside Policy Statement ranges. When allocations breach the specified ranges, the Advisor will rebalance the assets within the specified ranges. The Advisor may also rebalance based on market conditions. Risk Tolerance Subject to investment objectives and performance expectations, the Trust will be managed in a style that seeks to minimize principal fluctuations over the established Time Horizon. Performance Expectations Over the long-term, five years or longer, the performance objective for the Trust will be to achieve an average total annual rate of return that is equal to or greater than the Trust's actuarial discount rate. 6 Additionally, it is expected that the annual rate of return on Trust assets will be commensurate with the then prevailing investment environment. Measurement of this return expectation will be judged by reviewing returns in the context of industry standard benchmarks, peer universe comparisons for individual Trust investments and blended benchmark comparisons for the Trust in its entirety. Selection ofI Investment Managers The Advisor shall prudently select appropriate Managers to invest the assets of the Trust. Managers must meet the following criteria: The Manager must provide historical quarterly performance data compliant with Global Investment Performance Standards (GIPS), Securities & Exchange Commission ("SEC"), Financial Industry Regulatory Agency ("FINRA") or industry recognized standards, as appropriate. The Manager must provide detailed information on the history of the firm, key personnel, support personnel, key clients, and fee schedule (including most-favored-nation clauses). This information can be a copy of a recent Request for Proposal ("RFP") completed by the Manager or regulatory disclosure. The Manager must clearly articulate the investment strategy that will be followed and document that the strategy has been successfully adhered to over time. The investment professionals making the investment decisions must have a minimum of three (3) years of experience managing similar strategies either at their current firm or at previous firms. Where other than common funds such as mutual funds or commingled trusts are utilized, the Manager must confirm receipt, understanding and adherence to this Policy Statement and any investment specific policies by signing a consent form provided to the Manager prior to investment of Trust assets. Guidelines for Portfolio Holdings Direct Investments by Advisor Every effort shall be made, to the extent practical, prudent and appropriate, to select investments that have investment objectives and policies that are consistent with this Policy Statement (as outlined in the following sub-sections of the "Guidelines for Portfolio Holdings"). However, given the nature of the investments, it is recognized that there may be deviations between this Policy Statement and the objectives of these investments. Limitations on Portfolio Holdings EQUITIES No more than 5% ofthe total equity portfolio valued at market may be invested in the common equity of any one corporation; ownership of the shares of one company shall not exceed 5% of those 7 outstanding; and not more than 40% of Equity valued at Market may be held in any one sector [excluding Mutual Funds and/or ETFs], as defined by Bloomberg (BB) Sector standards. Domestic Equities. Other than the above constraints, there are no quantitative guidelines as to issues, industry or individual security diversification. However, prudent diversification standards should be developed and maintained by the Manager. International Equities. The overall non-U.S. equity allocation should include a diverse global mix that is comprised of the equity of companies from multiple countries, regions and sectors. FIXED INCOME Fixed income securities of any one issuer shall not exceed 5% of the total bond portfolio at time of purchase. The 5% limitation does not apply to issues ofthe U.S. Treasury or other Federal Agencies. OTHER ASSETS ALTERNATIVES) Diversifving Liquid Alternatives): Primary objective shall be to enhance the risk-return profile of the overall portfolio. This can be accomplished by using liquid alternative strategies that may enhance returns at a reasonable level of risk or reduce volatility while providing a reasonable level of return. These asset classes may differ from traditional public market asset classes due to the use of certain strategies including short-selling, leverage, and derivatives. Liquid alternatives may also invest across asset classes. For purposes of asset allocation targets and limitations, liquid alternatives funds will be categorized under the specific asset class of the fund. For example, a long/short U.S. equity fund will be categorized as "Other" in the Growth Assets category while a long/short credit fund will be categorized as "Other" in the Income Assets category. Multi-strategy liquid alternatives funds that cannot be easily categorized under one asset class will be included in "Other" under either the Growth Assets or Income Assets category depending on the risk-return profile of1 the strategy. Real Assets: Real assets are typically physical assets that have intrinsic worth due to their substance and properties. Real assets are primarily used for their lower correlation to traditional assets (i.e. stocks and bonds) and their inflation hedging properties. Categories of real asset investments include, but are not limited to, real estate, infrastructure, land, farmland, timberland, precious metals, and commodities. Public real assets are publicly traded and liquid. The benefit of lower correlation investments is that, when implemented correctly, these investments can potentially improve a portfolio's expected risk- adjusted return over the long-term. The real assets category can be extended to include other forms of assets that offer similar inflation hedging properties such as pooled vehicles holding: commodities contracts, Treasury Inflation Protected Securities ("TIPS"), index-linked derivative contracts, certain forms of intellectual property, and the equity of companies in businesses thought to hedge inflation. For purposes of asset allocation targets and limitations, real assets may be categorized as "Other" under either the Growth Assets or Income Assets category or in the Real Return Assets category, depending on the nature and risk/return profile ofthe investment. 8 CASH EQUIVALENTS Cash equivalents shall be held in funds complying with Rule 2(a)-7 of the Investment Company Act of 1940. Portfolio Risk Hedging Portfolio investments designed to hedge various risks including volatility risk, interest rate risk, etc. are allowed to the extent that the investments are not used for the sole purpose ofleveraging Trust assets. One example of a hedge vehicle is an exchange traded fund ("ETF") which takes short positions. Prohibited Investments Except for purchase within authorized investments, securities having the following characteristics are not authorized and shall not be purchased: letter stock and other unregistered securities, direct commodities or commodity contracts, or private placements (with the exception of Rule 144A securities). Further, derivatives, options, or futures for the sole purpose of direct portfolio leveraging are prohibited. Direct/physical ownership of real estate, natural resource properties such as oil, gas or timber and the purchase of collectibles is also prohibited. Safekeeping All assets ofthe Trust shall be held by a custodian approved by the Administrator for safekeeping of Trust assets. The custodian shall produce statements on a monthly basis, listing the name and value of all assets held, and the dates and nature of all transactions in accordance with the terms in the Trust Agreement. Investments of the Trust not held as liquidity or investment reserves shall, at all times, be invested in interest-bearing accounts. Investments and portfolio securities may not be loaned. Control Procedures Review of Investment Objectives The Advisor shall review annually and report to the Administrator the appropriateness of this Policy Statement for achieving the Trust's stated objectives. It is not expected that this Policy Statement will change frequently. In particular, short-term changes in the financial markets should not require an adjustment in this Policy Statement. Review ofInvestment Performance The Advisor shall report on a quarterly basis to the Administrator to review the investment performance of the Trust. In addition, the Advisor will be responsible for keeping the Administrator 9 advised of any material change in investment strategy, Managers, and other pertinent information potentially affecting performance ofthe Trust. The Advisor shall compare the investment results on a quarterly basis to appropriate peer universe benchmarks, as well as market indices in both equity and fixed income markets. Examples of benchmarks and indexes that will be used include the Russell 3000 Index for broad U.S. equity strategies; S&P 500 Index for large cap U.S. equities, Russell 2000 Index for small cap U.S. equities, MSCI ACWI ex-U.S. Index for broad based non-U.S. equity strategies, MSCI Europe, Australasia, and Far East (EAFE) Index for developed markets international equities, Bloomberg U.S. Aggregate Bond Index for fixed income securities, and the U.S. 91 Day T-bill for cash equivalents. The Russell 3000 Index will be used to benchmark the U.S. equities portfolio; the MSCI ACWI ex-U.S. Index will be used to benchmark the non-U.S. equities portfolio; the Bloomberg U.S. Aggregate Bond Index will be used to benchmark the fixed income portfolio. The categories "Other" will be benchmarked against appropriate indices depending on the specific characteristics of the strategies and funds used. Voting ofProxies The Administrator recognizes that proxies are a significant and valuable tool in corporate governance. The voting rights ofi individual stocks held in separate accounts or collective, common, or pooled funds will be exercised by the investment managers in accordance with their own proxy voting policies. The voting rights of funds will be exercised by the Advisor. 10 Adoption of Investment Policy Statement Any changes and exceptions to this Policy Statement will be made in writing and adopted by the Administrator. Once adopted, changes and exceptions will be delivered to each Manager, as appropriate, by the Advisor. Approved by the City of Pasadena Plan Administrator: Member Date 11 AGENDA REQUEST ORDINANCE RESOLUTION Keso H NO: 2025- CAPTION: A RESOLUTION CERTIFYING THE CANVASSING AND RETURNS OF THE RUNOFF ELECTION HELD IN THE CITY OF PASADENA, TEXAS ON JUNE 7, 2025 TO ELECT A MAYOR AND COUNCILMEMBERS FOR DISTRICTS A, B AND G. UNA RESOLUCION QUE CERTIFICA EL ESCRUTINIO Y LOS RESULTADOS DE LA ELECCION DE SEGUNDA VUELTA CELEBRADA EN LA CIUDAD DE PASADENA, TEXAS, EL 7 DE JUNIO DE 2025, PARA ELEGIR UN ALCALDE Y CONCEJALES PARA LOS DISTRITOS A, B Y G. RECOMMENDATIONS & JUSTIFICATION: To canvass the June 7, 2025 Runoff Election for election of a Mayor and Councilmembers for Districts A, B and G. (IF ADDITIONAL SPACE IS REQUIRED, PLEASE ATTACH SECOND PAGE) BUDGETED: COUNCIL DISTRICT (S) AFFECTED: REQUIRES APPROPRIATION: See attached Certification UmandafyMwll COUNCIL ACTION Amanda F. Mueller DATE:06/13/25 REQUESTING PARTY (TYPED) FIRST READING: FINAL READING: BUDGET DEPARTMENT MOTION MOTION PURCHASING DEPARTMENT SECOND SECOND APPROVED: Volle CITY ATTORNEY DATE DATE QAwr DEFERRED: MAYOR RESOLUTION NO. 2025- A RESOLUTION CERTIFYING THE CANVASSING AND RETURNS OF THE RUNOFF ELECTION HELD IN THE CITY OF PASADENA, TEXAS ON JUNE 7, 2025 TO ELECT A MAYOR AND COUNCILMEMBERS FOR DISTRICTS A, B AND G. RESOLUCION NRO. 2025- UNA RESOLUCION QUE CERTIFICA EL ESCRUTINIO Y LOS RESULTADOS DE LA ELECCION DE SEGUNDA VUELTA CELEBRADA EN LA CIUDAD DE PASADENA, TEXAS, EL 7 DE JUNIO DE 2025, PARA ELEGIR UN ALCALDE Y CONCEJALES PARA LOS DISTRITOS A, B Y G. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASADENA: SECTION 1. That the City Council of the City of Pasadena, Texas, under the provisions of the Election Laws of the State of Texas and the Charter of the City of Pasadena, Texas, hereby certifies the following returns, pertaining to the June 7, 2025 Runoff Election held in the City of Pasadena, Texas for the election of a Mayor and Councilmembers for Districts A, B and G, attached hereto as Exhibit "A" and incorporated herein for all purposes, to be correct and authentic. SECTION 2. That the following candidates receiving a majority of votes cast in the June 7, 2025 Runoff Election, as reflected in Exhibit "A", 1 are hereby declared qualified and elected to the respective offices: Mayor Thomas Schoenbein Councilmember District A Carlos Heredia Sr. Councilmember District G Johnny Fusilier Jr. SECCION 2. Que los candidatos indicados a continuacion, quienes recibieron una mayoria de los votos emitidos en la Eleccion de Segunda Vuelta del 7 de junio de 2025, como se expresa en el Anexo "A", son por la presente declarados habilitados y electos para los respectivos cargos: Alcalde Thomas Schoenbein Concejal del Distrito A Carlos Heredia Sr. Concejal del Distrito G Johnny Fusilier Jr. SECTION3. That neither of the following candidates in District B received a majority of votes cast in the June 7, 2025 Runoff Election, as reflected in Exhibit "A", 3 resulting in a tie vote: Councilmember District B Bianca Valerio Councilmember District B Bruce Leamon Further, that pursuant to the Texas Election Code, Chapter 2.028 and Chapter 216.003, if candidates in a runoff election tie, an automatic recount must be held. Ifthe recount doesn't resolve the tie, the tied candidates will then cast lots to determine the winner. SECCION 3. Que ninguno de los candidatos del Distrito B indicados a continuacion recibio la mayoria de los votos emitidos en la Eleccion de Segunda Vuelta del 7 de junio de 2025, como se expresa en el Anexo "A", resultando en un empate: Concejal del Distrito B Bianca Valerio Concejal del Distrito B Bruce Leamon Ademas, que de conformidad con los Capitulos 2.028 y 216.003 del Codigo Electoral de Texas, si los candidatos en una eleccion de segunda vuelta resultan empatados, se debe realizar un recuento automàtico. Si el recuento no resuelve el empate, entonces los candidatos empatados llevaràn a cabo un sorteo para determinar al ganador. SECTION 4. That the canvassed returns shall be delivered to the general custodian of election records for the period prescribed for preserving election records. SECTION 5. That if any provision, section, subsection, sentence, clause, or phrase of this Resolution, or the application of same to any person or set of circumstances, is for any reason held to be unconsttutional, void, invalid, or unenforceable, neither the remaining portions of this Resolution nor their application to other persons or sets of circumstances shall be affected thereby, it being the intent oft the City Council in adopting this Resolution that no portion hereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness, invalidity or unenforceability of any other portion hereof, and all provisions of this Resolution are declared to be severable for that purpose. SECTION 6. That the City Council officially determines that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further confirms such written notice and the contents and posting thereof. PASSED, APPROVED AND ADOPTED THIS THE day of A.D., 2025. JEFF WAGNER - MAYOR OF THE CITY OF PASADENA, TEXAS ATTEST: APPROVED: AMANDA F. MUELLER JAY DALE CITY SECRETARY CITY ATTORNEY CITY OF PASADENA, TEXAS CITY OF PASADENA, TEXAS EXHIBIT "A" Please note that the OFFICIAL CANVASS has not yet been received from Harris County. The County has advised the City it should receive the Official Canvass no later than Monday, June 16, 2025. Upon receipt, it will be attached to the Resolution canvassing the Runoff Election BEFORE the June 17th, Council Meeting next Tuesday.